86(1)This paragraph applies if section 648 would apply to a derivative contract of a company for an accounting period but for the fact that the asset representing the creditor relationship is an asset in relation to which paragraph 11(2) of Schedule 10 to FA 2004 has effect.U.K.
(2)Section 574 (non-trading credits and debits to be brought into account under Part 5) does not apply to the credits and debits which are given in relation to the derivative contract for the accounting period by section 595.
(3)The asset representing the creditor relationship is treated for corporation tax purposes as not being a qualifying corporate bond.
(4)For the purposes of corporation tax on chargeable gains, the amount or value of the consideration for any disposal by the company of the asset representing the creditor relationship is reduced by so much of that amount or value as, on a just and reasonable apportionment, relates to interest within sub-paragraph (5).
(5)Interest is within this sub-paragraph if—
(a)it falls to be brought into account under Part 5 of this Act (loan relationships) as accruing to any company at any time, and
(b)in consequence of, or of the terms of, the disposal, it is not paid or payable to the company to which it is treated for the purposes of that Part as accruing.
87(1)This paragraph applies if—U.K.
(a)there has been a reorganisation for the purposes of sections 126 to 132 of TCGA 1992, and
(b)for the purposes of those sections, the asset mentioned in paragraph 86(4) is treated as the original shares.
(2)The reference in paragraph 86(4) to the disposal of that asset is a reference to the disposal of the asset which, as a result of the reorganisation, has become the new holding for the purposes of those sections.