Section 594A Matters in respect of which amounts are to be brought into accountF1

(1)

The matters in respect of which amounts are to be brought into account for the purposes of this Part in respect of a company's derivative contracts are—

(a)

profits and losses of the company which arise to it from its derivative contracts and related transactions (excluding expenses), and

(b)

expenses incurred by the company under or for the purposes of those contracts and transactions.

(2)

Expenses are only treated as incurred as mentioned in subsection (1)(b) if they are incurred directly—

(a)

in bringing any of the derivative contracts into existence,

(b)

in entering into or giving effect to any of the related transactions,

(c)

in making payments under any of those contracts or as a result of any of those transactions, or

(d)

in taking steps to secure the receipt of payments under any of those contracts or in accordance with any of those transactions.

(3)

For the treatment of pre-contract or abortive expenses, see section 607.

(4)

In subsection (1) “profits and losses” include profits and losses of a capital nature.

(5)

For the meaning of “related transaction”, see section 596.

Annotations

Textual amendments

F1: S. 594A and cross-heading inserted (with effect in accordance with Sch. 7 Pt. 6 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 7 para. 61

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)