Corporation Tax Act 2009 section 708

"Plain vanilla contract"

Section 708 defines what a "plain vanilla contract" means for the purposes of the derivative contracts rules.

• A plain vanilla contract is a straightforward derivative contract with no embedded derivative complications
• It excludes contracts arising from the separation of embedded derivatives from hybrid derivatives
• It excludes contracts arising from the separation of embedded derivatives from loan relationships
• It excludes contracts arising from the separation of embedded derivatives from other host contracts