Section 622 — Corporation Tax Act 2009: Contracts ceasing to be derivative contracts

Contracts ceasing to be derivative contracts 622 1 This section applies if a company is a party to a relevant contract which ceases to be a derivative contract.

2 The company is treated for the purposes of this Part as if it had disposed of the contract in a related transaction at the relevant time for consideration of an amount equal to the notional carrying value of the contract at that time.

3 In this section “ the relevant time ” means the time when the contract ceases to be a derivative contract.

4 For the purposes of this section, the “notional carrying value” of the contract at the relevant time is the amount which would have been the tax-adjusted carrying value of the contract based on the accounts of the company if a period of account had ended immediately before that time.

5 See also section 662 (chargeable gains provision for contracts ceasing to be derivative contracts).