Section 697 — Corporation Tax Act 2009: Exceptions to section 696

Exceptions to section 696 697 1 Section 696 does not apply if A—

a is a bank, building society, financial trader , recognised clearing house, recognised CSD ... or third country central counterparty , b is a party to the derivative contract solely for the purposes of a trade or part of a trade it carries on in the United Kingdom, and c is a party to it otherwise than as agent or nominee of another person.

2 Section 696 does not apply if NR—

a is chargeable to corporation tax or income tax in respect of income arising from the derivative contract (or would be if there were any such income),

and b is a party to the derivative contract otherwise than as agent or nominee of another person.

3 Section 696 does not apply if arrangements made in relation to the territory in which NR is resident—

a have effect under section 2(1) of TIOPA 2010 (double taxation relief),

and b make provision in relation to interest (as defined in the arrangements).

4 It does not matter whether the provision mentioned in subsection (3)(b) is for relief or otherwise.

5 If NR is a party to the contract as agent or nominee of another person, subsection (3) applies as if the reference to the territory in which NR is resident were a reference to the territory in which that other person is resident.

6 In this section— “recognised clearing house”, “recognised CSD” ... and “third country central counterparty” have the meanings given by section 285 of FISMA 2000 (exemptions for recognised bodies ) . ...