C3C1C2Part 7Derivative contracts
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))
Chapter 11Tax avoidance
Transactions with non-UK residents
697Exceptions to section 696
1
Section 696 does not apply if A—
a
b
is a party to the derivative contract solely for the purposes of a trade or part of a trade it carries on in the United Kingdom, and
c
is a party to it otherwise than as agent or nominee of another person.
F52
Section 696 does not apply if NR—
a
is chargeable to corporation tax or income tax in respect of income arising from the derivative contract (or would be if there were any such income), and
b
is a party to the derivative contract otherwise than as agent or nominee of another person.
3
Section 696 does not apply if arrangements made in relation to the territory in which NR is resident—
a
have effect F7under section 2(1) of TIOPA 2010 (double taxation relief), and
b
make provision in relation to interest (as defined in the arrangements).
4
It does not matter whether the provision mentioned in subsection (3)(b) is for relief or otherwise.
5
If NR is a party to the contract as agent or nominee of another person, subsection (3) applies as if the reference to the territory in which NR is resident were a reference to the territory in which that other person is resident.
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)