Part 7Derivative contracts

Chapter 7Chargeable gains arising in relation to derivative contracts

Derivative contracts to which sections 640 and 641 apply

650Property based total return swaps

1

This section applies to a derivative contract of a company for an accounting period if each of conditions A to F is met.

2

Condition A is that the derivative contract is a contract for differences.

3

Condition B is that one or more indices are specified in the contract.

4

Condition C is that at least one index so specified (“the capital value index”) is an index of changes in the value of land.

5

Condition D is that the underlying subject matter of the derivative contract also includes interest rates.

6

Condition E is that the company is not a party to the derivative contract at any time in the accounting period for the purposes of a trade carried on by it.

7

Condition F is that the company is not an excluded body.