Part 7Derivative contracts
Chapter 3Credits and debits to be brought into account: general
Miscellaneous
607Pre-contract or abortive expenses
(1)
This section applies if—
(a)
a company may enter into a derivative contract or related transaction but has not yet done so,
(b)
it incurs any expenses for purposes connected—
(i)
with entering into it, or
(ii)
with giving effect to any obligation which might arise under it, and
(c)
had the company entered into the contract or transaction, the expenses would be expenses within F1section 594A(1)(b).
(2)
The expenses are treated as expenses in relation to which debits may be brought into account in accordance with F2section 595(2) to the same extent as if the company had entered into the contract or transaction.