Section 610 Non-UK resident company ceasing to hold derivative contract for section 609(2) purposesF4

United Kingdom

(1)

This section applies if the rights and liabilities under a derivative contract of a company which is not UK resident cease to any extent to be held or owed for F1section 609(2) purposes in circumstances not involving a related transaction.

(2)

This Part applies as if—

(a)

immediately before the rights and liabilities so cease the company had assigned them, so far as so ceasing, for consideration of an amount equal to their fair value at that time, and

(b)

the company had immediately reacquired them for consideration of the same amount.

(3)

This section does not apply if—

(a)

the conditions in section 630(1)(a) and (b) are met in relation to the company (transferee leaving group after replacing transferor as party to derivative contract), and

(b)

the rights and liabilities mentioned in subsection (1) cease to be held or owed for F2section 609(2) purposes at the same time as the company ceases to be a member of the relevant group.

(4)

In subsection (3) “the relevant group” has the meaning given by section 630(4).

F3(5)

A right or liability ceases to be held or owed for section 609(2) purposes if and in so far as—

(a)

it ceases to be held or owed for any purposes mentioned in section 609(2), and

(b)

on doing so, it does not begin or continue to be held or owed for any of the other purposes so mentioned.

Annotations

Textual amendments

F1: Words in s. 610(1) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 20(3), 35 (with Sch. 5 para. 36)
F2: Words in s. 610(3)(b) substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 20(4), 35 (with Sch. 5 para. 36)
F3: S. 610(5) inserted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 20(5), 35 (with Sch. 5 para. 36)
F4: Words in s. 610 heading substituted (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 20(2), 35 (with Sch. 5 para. 36)

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)

Notes on Miscellaneous

Textual amendments

F1: Pt. 7 Ch. 3 cross-heading inserted (with effect in accordance with Sch. 21 para. 11 of the amending Act) by Finance Act 2009 (c. 10), Sch. 21 para. 8