644Income to be left out of account in determining whether section 643 appliesU.K.
(1)This section applies if the underlying subject matter of a derivative contract includes income from property within section 643(2)(a) or (b).
(2)If that income is subordinate income, it is left out of account in determining for the purposes of section 643 whether condition A is met.
(3)Income is “subordinate income” if it is—
(a)subordinate in relation to so much of the underlying subject matter of the derivative contract as consists of property within section 643(2)(a) or (b), or
(b)of small value in comparison with the value of the underlying subject matter as a whole.
(4)For the purposes of this section, whether part of the underlying subject matter of a derivative contract of a company is subordinate or of small value is to be determined by reference to the time when the company enters into or acquires the contract.