Corporation Tax Act 2009 section 574

Non-trading credits and debits to be brought into account under Part 5

Section 574 explains how credits and debits from derivative contracts that are not related to a company's trade are dealt with for corporation tax purposes by routing them through the loan relationships non-trading account.

• Where derivative contract credits or debits are not brought into account as trading amounts under section 573, they must instead be treated as non-trading credits or non-trading debits under the loan relationships rules in Part 5
• These non-trading amounts are pooled together with any non-trading credits and debits arising from the company's loan relationships to determine whether there is an overall non-trading profit to tax or a non-trading deficit to relieve
• Non-UK resident companies must additionally consider the territorial scope rules in section 5, which may limit the amounts that fall within the UK corporation tax charge
• Certain situations are excluded from this treatment, including where fair value accounting is disapplied for embedded derivatives under section 616 and where chargeable gains rules apply to derivative contracts under Chapter 7