Corporation Tax Act 2009 section 624

Introduction to Chapter

Section 624 introduces the chapter dealing with the tax treatment of derivative contracts when one group company replaces another as a party to such a contract, and what happens when a company leaves the group.

• The chapter provides continuity of tax treatment where one company in a group replaces another group company as a party to a derivative contract
• The chapter also addresses the consequences when a company ceases to be a member of the group
• The definition of a "group of companies" follows the same meaning used for chargeable gains purposes under section 170 of the Taxation of Chargeable Gains Act 1992
• Special modifications apply to insurance companies under section 636