Corporation Tax Act 2009 section 571

General rule: profits chargeable as income

Section 571 establishes the general rule that profits arising from a company's derivative contracts are chargeable to corporation tax as income rather than as capital gains.

• All profits from a company's derivative contracts are normally treated as income for corporation tax purposes
• This income treatment applies even where the profits might otherwise be regarded as capital in nature under accounting rules
• An exception exists under Chapter 7, where certain derivative contract profits are instead charged as chargeable gains
• The rules in this Part of the Act take priority over any other rules that might otherwise apply to identify and calculate the taxable amount