# Corporation Tax Act 2009, Section 656: Introduction to section 658


(1) Section 658 (chargeable gain or allowable loss treated as accruing) applies to a derivative contract of a company for an accounting period if each of conditions A to F is met.
(2) Condition A is that the derivative contract is a relevant contract to which the company is treated as a party under section 585(2) (loan relationships with embedded derivatives) because of a debtor relationship of the company.
(3) Condition B is that the derivative contract—
(a) is treated as a contract for differences by section 585(3) (contract treated as option, future or contract for differences), and
(b) is not within section 652.
(4) Condition C is that the derivative contract is an exactly tracking contract.
(5) Condition D is that the underlying subject matter of the derivative contract is shares.
(6) Condition E is that at the time when the company became a party to the debtor relationship—
(a) it was not carrying on a banking business or a business as a securities house, or
(b) if it was carrying on such a business, it did not become a party to the debtor relationship in the ordinary course of that business.
(7) Condition F is that the company is not an excluded body.
(8) For the meaning of “exactly tracking contract”, see section 657.

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Source: https://www.legislation.gov.uk/ukpga/2009/4/section/656 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2009/section-656
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.