Section 617 — Corporation Tax Act 2009: Election for section 616 not to apply

Election for section 616 not to apply 617 1 A company may elect that section 616 is not to apply in relation to its contracts.

2 But such an election does not apply to a contract if—

a the contract is a contract of long-term insurance, or b the underlying subject matter of the embedded derivative is, or includes, commodities.

3 An election under this section—

a must be made before the end of the first applicable accounting period of the company, and b is irrevocable.

4 In subsection (3) “ the first applicable accounting period ” means the first accounting period in which the conditions in section 616(1) are met.

5 Section 618 makes further provision about elections under this section.