Corporation Tax Act 2009 (c. 4)

Part 7 U.K. Derivative contracts

Chapter 7 U.K. Chargeable gains arising in relation to derivative contracts

Derivative contracts to which sections 640 and 641 apply U.K.

650 Property based total return swaps U.K.

(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.