Corporation Tax Act 2009 section 612

Overview of Chapter

Section 612 provides a roadmap to Chapter 4, which deals with further rules on the credits and debits that companies must bring into account for corporation tax purposes in relation to derivative contracts.

• Chapter 4 sets out additional rules on how credits and debits from derivative contracts are calculated for corporation tax purposes
• It covers adjustments needed when a company changes its accounting basis (for example, moving from one accounting standard to another), as well as special rules for certain embedded derivatives
• The chapter addresses how derivative contracts held through partnerships involving companies are treated, and what happens when a contract ceases to qualify as a derivative contract
• It also includes specific provisions for index-linked gilt-edged securities that contain embedded contracts for differences