Section 642 — Corporation Tax Act 2009: Exception from section 641

Exception from section 641 642 1 Section 641 does not apply to a derivative contract to which section 645 applies if, on the assumptions in subsection (2), paragraph 2 of Schedule 7AC to TCGA 1992 (substantial shareholding exemptions: gain on disposal of asset related to shares not a chargeable gain) would apply to the gain mentioned in subsection (2)(d).

2 Those assumptions are that—

a the rights and liabilities treated as comprised in the derivative contract were contained in a separate contract, b that separate contract was an option, c that option was disposed of at the end of the accounting period, and d a gain accrued to the company on the disposal for the purposes of corporation tax on chargeable gains.