Corporation Tax Act 2009 section 577

"Relevant contract"

Section 577 defines the term "relevant contract" as used throughout Part 7 of the Act, which deals with the corporation tax treatment of derivative contracts.

• A "relevant contract" means one of three types of financial instrument: an option, a future, or a contract for differences.
• The term is used as a convenient generic label throughout Part 7 wherever the specific type of derivative does not matter.
• Detailed definitions of "option", "future", and "contract for differences" are provided separately in sections 580, 581, and 582 respectively.
• Under sections 584 to 586, certain rights and liabilities within a contract can themselves be treated as a relevant contract, and if so treated they may qualify as a derivative contract provided the other conditions in section 576(1) are also met.