Corporation Tax Act 2009 section 689

Overview of Chapter

Section 689 provides a roadmap to the tax avoidance rules contained in Chapter 11, which apply specifically to derivative contracts held by companies.

• Chapter 11 brings together all the anti-avoidance rules that apply to derivative contracts for corporation tax purposes
• Rules cover derivative contracts used for unallowable purposes, where tax deductions may be restricted if the contract is not held for genuine commercial reasons
• Provisions address non-arm's length transactions and dealings with non-UK residents, ensuring credits and debits properly reflect market value
• Additional rules target debits arising from derecognition of derivative contracts and contain a general anti-avoidance provision for arrangements designed to secure a tax advantage