Corporation Tax Act 2009 section 64

Saving for old elections for treating loan relationships with embedded derivatives as two assets

Section 64 preserves existing elections that allowed companies to treat loan relationships containing embedded derivatives as two separate assets, ensuring these elections continue to have effect under the new legislation.

• Elections made under the old rules (paragraph 7 of Schedule 6 to F(No.2)A 2005) before the repeal remain valid and are not affected by the Corporation Tax Act 2009.
• Elections originally made under earlier legislation (paragraph 28(3) of Schedule 4 to FA 2005) that were treated as if made under the later provision are also preserved.
• All such preserved elections are now treated as if they had been made under section 416 of the Corporation Tax Act 2009.
• Section 416 governs the election to apply sections 415 and 585, which deal with the bifurcation of loan relationships with embedded derivatives into separate loan and derivative components.