Section 610 — Corporation Tax Act 2009: Non-UK resident company ceasing to hold derivative contract for section 609(2) purposes

Non-UK resident company ceasing to hold derivative contract for section 609(2) purposes 610 1 This section applies if the rights and liabilities under a derivative contract of a company which is not UK resident cease to any extent to be held or owed for section 609(2) purposes in circumstances not involving a related transaction.

2 This Part applies as if—

a immediately before the rights and liabilities so cease the company had assigned them, so far as so ceasing, for consideration of an amount equal to their fair value at that time, and b the company had immediately reacquired them for consideration of the same amount.

3 This section does not apply if—

a the conditions in section 630(1)(a) and (b) are met in relation to the company (transferee leaving group after replacing transferor as party to derivative contract),

and b the rights and liabilities mentioned in subsection (1) cease to be held or owed for section 609(2) purposes at the same time as the company ceases to be a member of the relevant group.

4 In subsection (3) “ the relevant group ” has the meaning given by section 630(4).

5 A right or liability ceases to be held or owed for section 609(2) purposes if and in so far as—

a it ceases to be held or owed for any purposes mentioned in section 609(2),

and b on doing so, it does not begin or continue to be held or owed for any of the other purposes so mentioned.