SCHEDULES

SCHEDULE 7U.K.Loan relationships and derivative contracts

PART 2 U.K.Derivative contracts: amendments of Part 7 of CTA 2009

61U.K.After section 594 insert—

“Matters in respect of which amounts are to be brought into accountU.K.

594AMatters in respect of which amounts are to be brought into account

(1)The matters in respect of which amounts are to be brought into account for the purposes of this Part in respect of a company's derivative contracts are—

(a)profits and losses of the company which arise to it from its derivative contracts and related transactions (excluding expenses), and

(b)expenses incurred by the company under or for the purposes of those contracts and transactions.

(2)Expenses are only treated as incurred as mentioned in subsection (1)(b) if they are incurred directly—

(a)in bringing any of the derivative contracts into existence,

(b)in entering into or giving effect to any of the related transactions,

(c)in making payments under any of those contracts or as a result of any of those transactions, or

(d)in taking steps to secure the receipt of payments under any of those contracts or in accordance with any of those transactions.

(3)For the treatment of pre-contract or abortive expenses, see section 607.

(4)In subsection (1) “profits and losses” include profits and losses of a capital nature.

(5)For the meaning of “related transaction”, see section 596.”