Section 576 “Derivative contract”

(1)

For the purposes of this Part, a contract of a company is a derivative contract of the company for an accounting period if it—

(a)

is a relevant contract (see sections 577 and 578),

(b)

meets any of the accounting conditions for the accounting period (see section 579), and

(c)

is not prevented from being a derivative contract by section 589 (contracts excluded because of underlying subject matter: general) or any other provision of the Corporation Tax Acts.

(2)

See also sections 587 and 588 (other contracts etc treated as derivative contracts).

(3)

But note section 701 which includes power to amend the provisions of this Chapter relating to the meaning of “derivative contract”.

Notes on Part 7

Modifications

C1: Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
C2: Pt. 7 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
C3: Pt. 7 modified by 2007 c. 3, s. 809FZZ(8) (as inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2))
C4: Pt. 7 modified (for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed)) by 2005 c. 5, Sch. A1 para. 35(6) (as inserted by Finance Act 2026 (c. 11), s. 58(6), Sch. 11 para. 1)