Chapter 12U.K.Priority rules
699Priority of this Part for corporation tax purposesU.K.
(1)The amounts which are brought into account in accordance with this Part in respect of any matter are the only amounts which may be brought into account for corporation tax purposes in respect of it.
(2)Subsection (1) is subject to any provision to the contrary.
(3)For such provisions, see in particular—
(a)section 616 (disapplication of fair value accounting for certain derivative contracts), [F1and]
(b)paragraph 93 of Schedule 2 (plain vanilla contracts which became derivative contracts before 30 December 2006), F2...
F2(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Word in s. 699(3)(a) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 171(a)
F2S. 699(3)(c) and the word immediately preceding it omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 16 para. 171(b)
700Relationship of this Part to Part 5: loan relationshipsU.K.
(1)This section applies if—
(a)a company is a party to a loan relationship because of a derivative contract, and
(b)in accordance with this Part, a profit or loss accrues to the company on the contract for an accounting period (“the derivative profit or loss”).
(2)The general rule is that this Part does not apply to the derivative profit or loss if—
(a)an amount representing the derivative profit or loss, or
(b)an amount representing the profit or loss accruing to that company on the contract,
is brought into account for that period for the purposes of Part 5 otherwise than because of section 574.
(3)But in a case where section 585 (loan relationships with embedded derivatives) applies, the general rule does not apply so far as—
(a)the derivative profit or loss accrues from the rights and liabilities mentioned in section 585(1)(b) (rights and liabilities under derivative financial instruments or equity instruments), and
(b)that profit or loss is dealt with in accordance with that section and this Part.