C1C2Part 7Derivative contracts
Chapter 3Credits and debits to be brought into account: general
F1Exchange gains and losses
Pt. 7 Ch. 3 crossheading substituted (with effect in accordance with Sch. 21 para. 11 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 21 para. 5
606GF2Meaning of “relevant contingent contract” and “operative condition”
1
In the Part 7 one-way exchange effect provisions “ relevant contingent contract ” means a contract that meets the following two conditions.
2
The first condition is that company A, or a company connected with company A (“ the relevant company ”), is a party to the contract.
3
The second condition is that the contract includes a condition—
a
on the meeting of which a right or liability under the contract is altered, and
b
that operates (directly or indirectly) by reference to the exchange rate between the operating currency of the relevant company and another currency.
4
In this section “ operating currency ” has the same meaning as in section 606D.
5
In the Part 7 one-way exchange effect provisions “ operative condition ” means a condition of the kind mentioned in subsection (3).
Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)