Corporation Tax Act 2009 section 211

Loan relationships and derivative contracts

Section 211 explains how property business profits are kept separate from loan relationship and derivative contract accounting rules.

• When calculating property business profits, you must exclude any credits or debits that fall within the loan relationships rules (Part 5 of CTA 2009)
• Similarly, any credits or debits arising under the derivative contracts rules (Part 7 of CTA 2009) must also be excluded from property business profit calculations
• This exclusion does not override or limit the general priority that the loan relationships and derivative contracts rules have for corporation tax purposes
• In practice, items relating to loan relationships and derivative contracts are dealt with under their own dedicated regimes rather than being included in the property business computation