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.