Part 7Derivative contracts

Chapter 8Further provision about chargeable gains and derivative contracts

Treatment of shares acquired in certain circumstances

669Meaning of G and L in sections 667 and 668

1

This section applies for the purposes of sections 667 and 668.

2

G is the sum of the credits brought into account under section 574 (non-trading credits and debits to be brought into account under Part 5) in respect of the derivative contract in each relevant accounting period so far as referable, on a just and reasonable apportionment, to the shares acquired as a result of the exercise of rights mentioned in section 667(1)(e) or the delivery mentioned in section 668(1)(d).

3

L is the sum of the debits brought into account under section 574 in respect of the derivative contract in each relevant accounting period, so far as so referable.

4

In this section “relevant accounting period” means—

a

the accounting period in which the disposal in question is made, or

b

any previous accounting period.