Section 635 | Creditor relationships: embedded derivatives which are options

(1)This section applies if in any accounting period—

(a)a company is a party to a creditor relationship for the purposes of its basic life assurance and general annuity business, and

(b)that creditor relationship is one in relation to which sections 415 and 585 (which both apply to loan relationships with embedded derivatives) would have effect but for the fact that the company accounts for the creditor relationship at fair value through profit and loss.

(2)For the purpose of applying the I - E rules, this Part and Part 5 (loan relationships) have effect for that accounting period as they would if the creditor relationship were one in relation to which those sections have effect.