385. Derivative contracts in general.

For the purposes of corporation tax, all profits arising to a company from its derivative contracts are chargeable to tax as income; and except where otherwise indicated, the amounts to be brought into account in respect of any matter are the only amounts to be brought into account for such purposes in respect of that matter1.

For the purposes of the Corporation Tax Acts2 a company's derivative contract for an accounting period is one which is a relevant contract, which meets any of the accounting conditions for the accounting period and is not prevented3 from being a derivative contract4. A 'relevant contract' is an option, a future or a contract for di