Regulation 11 General rule for derivative contracts: exclusion of capital profits, gains or losses

This regulation applies if any profits, gains or losses arising to an authorised investment fund from a derivative contract in an accounting period are capital profits, gains or losses.

For the purposes of Schedule 26 to FA 2002^f1 (derivative contracts) those profits, gains or losses must not be brought into account as credits or debits.

Regulation 12 explains what is meant by “capital profits, gains or losses” in the case of an authorised investment fund that prepares accounts in accordance with UK generally accepted accounting practice.