Section 644 — Corporation Tax Act 2009: Income to be left out of account in determining whether section 643 applies

Income to be left out of account in determining whether section 643 applies 644 1 This section applies if the underlying subject matter of a derivative contract includes income from property within section 643(2)(a) or (b).

2 If that income is subordinate income, it is left out of account in determining for the purposes of section 643 whether condition A is met.

3 Income is “subordinate income” if it is—

a subordinate in relation to so much of the underlying subject matter of the derivative contract as consists of property within section 643(2)(a) or (b), or b of small value in comparison with the value of the underlying subject matter as a whole.

4 For the purposes of this section, whether part of the underlying subject matter of a derivative contract of a company is subordinate or of small value is to be determined by reference to the time when the company enters into or acquires the contract.