Corporation Tax Act 2009 section 594A

Matters in respect of which amounts are to be brought into account

Section 594A defines which amounts relating to derivative contracts must be brought into account for corporation tax purposes under Part 7.

• Companies must account for all profits and losses (including capital profits and losses) arising from their derivative contracts and related transactions, but excluding expenses
• Direct expenses incurred in connection with derivative contracts and related transactions must also be brought into account separately
• Qualifying expenses are limited to those directly incurred in creating derivative contracts, entering into or giving effect to related transactions, making payments, or securing receipt of payments
• Pre-contract or abortive expenses are dealt with separately under section 607