Section 650 | Property based total return swaps

(1)This section applies to a derivative contract of a company for an accounting period if each of conditions A to H is met.

(2)Condition A is that the derivative contract is a contract for differences.

(3)Condition B is that one or more indices are specified in the contract.

(4)Condition C is that at least one index so specified (“the capital value index”) is an index of changes in the value of land.

(5)Condition D is that the underlying subject matter of the derivative contract also includes interest rates.

(6)Condition E 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.

(7)Condition F is that the company is not an excluded body.

(8)Condition G is that no two or more of the parties to the derivative contract are connected persons.

(9)Condition H is that the securing of a tax advantage is neither the main purpose, nor one of the main purposes, for which the company is a party to the derivative contract.“Tax advantage” has the meaning given by section 1139 of CTA 2010.