Corporation Tax Act 2009 section 485

Exclusion of debts where profits or losses within Part 7 or 8

Section 485 excludes certain debts from the loan relationships rules where the profits or losses on those debts are already dealt with under the derivative contracts or intangible fixed assets regimes.

• This section prevents double counting by excluding debts already covered by other specific tax regimes.
• Debts where profits or losses fall within Part 7 (derivative contracts) are excluded from the loan relationships rules in this Chapter.
• Debts where profits or losses fall within Part 8 (intangible fixed assets) are similarly excluded.
• The exclusion applies regardless of whether the debt actually produces a profit or a loss — it is enough that any such profit or loss would be dealt with under Part 7 or Part 8.