Corporation Tax Act 2009 section 95

Contract becoming derivative contract on 12 March 2008

Section 95 deals with the transitional treatment of contracts that were reclassified as derivative contracts on 12 March 2008 as a result of legislative changes introduced by the Finance Act 2008.

• Applies where a company held a relevant contract immediately before 12 March 2008 that became a derivative contract due to amendments in the Finance Act 2008
• The contract is treated as having been entered into on 12 March 2008 for the purposes of the derivative contracts rules in Part 7
• The deemed consideration for entering the contract is its notional carrying value as at 12 March 2008
• This ensures a clean starting point for the derivative contracts tax regime, preventing any prior gains or losses from being swept into the new rules