# Corporation Tax Act 2009, Section 588: Associated transaction treated as derivative contract


(1) This section is to be read as if it were in Chapter 7 (shares with guaranteed returns etc) of Part 6 (relationships treated as loan relationships etc).
(2) See, in particular—
section 526(2) (meaning of “non-qualifying share”), and
section 532 (meaning of “associated transaction” and “the associated transactions condition”).
(3) Subsection (4) applies in a case which falls within section 523(1)(b)(ii) (loan relationships: non-qualifying shares) because the share mentioned in section 523(1)(a) is a non-qualifying share as a result of the associated transactions condition being met.
(4) An associated transaction is treated for the purposes of this Part as a derivative contract or a transaction in respect of a derivative contract if it is not in fact such a contract or transaction.
(5) For the way in which credits and debits are to be brought into account where subsection (4) applies, see section 603 (application of fair value accounting).

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Source: https://www.legislation.gov.uk/ukpga/2009/4/section/588 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2009/section-588
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.