Section 590 | Disregard of subordinate or small value underlying subject matter

(1)This section applies in relation to a relevant contract if its underlying subject matter consists only of—

(a)excluded property, and

(b)other underlying subject matter which is—

(i)subordinate in relation to any of the excluded property, or

(ii)of small value in comparison with the value of the underlying subject matter as a whole.

(2)The underlying subject matter of the contract is treated for the purposes of this Part as if it consisted wholly of excluded property.

(3)For the purposes of this section, whether part of the underlying subject matter of a relevant contract of a company is subordinate or of small value is to be determined by reference to the time when the company enters into or acquires the contract.

(4)In this section “excluded property” has the same meaning as in section 589.