Part 7

Derivative contracts
Chapter 2

Contracts to which this Part applies

Meaning of “derivative contract” and other basic definitions

Relevant contracts of a company and being party to such contracts
578
1
For the purposes of this Part, references to a relevant contract of a company are references to a relevant contract entered into or acquired by the company (but see subsection (3)).
2
For the purposes of this Part, a relevant contract is acquired by a company if the company becomes—
a
entitled to the rights under the relevant contract, and
b
subject to the liabilities under it.
3
For particular cases where companies are treated as parties to relevant contracts, see—
a
section 584 (hybrid derivatives with embedded derivatives),
b
section 585 (loan relationships with embedded derivatives), and
c
section 586 (other contracts with embedded derivatives).
4
References in this Part to a company being a party to a relevant contract are to be read in accordance with this section.
Pt. 7 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
Pt. 7 modified by 2007 c. 3, s. 809FZZ(8) (as inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2))
Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)