Section 643 | Contracts relating to land or certain tangible movable property

(1)This section applies to a derivative contract of a company for an accounting period if conditions A, B , C and D are met.

(2)Condition A is that the underlying subject matter of the derivative contract consists of either or both of the following—

(a)land,

(b)tangible movable property, other than commodities which are tangible assets.

(3)Condition B is that the company is not a party to the derivative contract at any time in the accounting period for the purposes of a trade carried on by it.

(4)Condition C is that the company is not an excluded body.

(4A)Condition D is that no two or more of the parties to the derivative contract are connected persons.

(5)For the case where the underlying subject matter of a derivative contract also includes income from property within subsection (2)(a) or (b), see section 644.