Section 643 Contracts relating to land or certain tangible movable property
United Kingdom
This section applies to a derivative contract of a company for an accounting period if conditions A, B F1, C and D are met.
Condition A is that the underlying subject matter of the derivative contract consists of either or both of the following—
land,
tangible movable property, other than commodities which are tangible assets.
Condition B is that the company is not a party to the derivative contract at any time in the accounting period for the purposes of a trade carried on by it.
Condition C is that the company is not an excluded body.
Condition D is that no two or more of the parties to the derivative contract are connected persons.
For the case where the underlying subject matter of a derivative contract also includes income from property within subsection (2)(a) or (b), see section 644.
Annotations
Textual amendments
- F1
Words in s. 643(1) substituted (with effect in accordance with s. 41(5)(6) of the amending Act) by Finance Act 2013 (c. 29), s. 41(2)(a)
- F2
S. 643(4A) inserted (with effect in accordance with s. 41(5)(6) of the amending Act) by Finance Act 2013 (c. 29), s. 41(2)(b)
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)