Corporation Tax Act 2009 section 596

Meaning of "related transaction"

Section 596 defines what counts as a "related transaction" in the context of derivative contracts for corporation tax purposes.

• A related transaction is any disposal or acquisition, whether in whole or in part, of rights or liabilities under a derivative contract.
• This includes transfers or extinctions of rights or liabilities through sale, gift, surrender or release.
• It also covers situations where the derivative contract is discharged by performance in accordance with its terms.
• The definition is used extensively throughout this Part of the Act wherever provisions deal with the acquisition or disposal of derivative contracts.