Section 574 — Corporation Tax Act 2009: Non-trading credits and debits to be brought into account under Part 5

Non-trading credits and debits to be brought into account under Part 5 574 1 This section applies if, for an accounting period, there are credits or debits in respect of the derivative contracts of a company which are not brought into account in accordance with section 573.

2 Those credits or debits—

a are to be treated as non-trading credits or non-trading debits (within the meaning of Part 5 (loan relationships)) for the period, and b are accordingly to be brought into account in determining whether the company has non-trading profits or a non-trading deficit from its loan relationships for the period. 2A In the case of a non-UK resident company, subsection (2) needs to be read with section 5(3), (3A)(b) and (3B)(b) (territorial scope of charge to corporation tax).

3 For cases in which this section does not apply, see—

a section 616 (disapplication of fair value accounting for certain embedded derivatives),

and b Chapter 7 (chargeable gains arising in relation to derivative contracts).