Section 643 — Corporation Tax Act 2009: Contracts relating to land or certain tangible movable property

Contracts relating to land or certain tangible movable property 643 1 This section applies to a derivative contract of a company for an accounting period if conditions A, B , C and D are met.

2 Condition A is that the underlying subject matter of the derivative contract consists of either or both of the following—

a land, b tangible movable property, other than commodities which are tangible assets.

3 Condition B is that the company is not a party to the derivative contract at any time in the accounting period for the purposes of a trade carried on by it.

4 Condition C is that the company is not an excluded body. 4A Condition D is that no two or more of the parties to the derivative contract are connected persons.

5 For the case where the underlying subject matter of a derivative contract also includes income from property within subsection (2)(a) or (b), see section 644.