This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Corporate Finance Manual

Derivative contracts: departures from accounts: statutory insolvency arrangements

Release of liability in insolvency

Where a company is in a statutory insolvency arrangement, the counterparty to a derivative contract may release amounts due to be paid under the contract. CTA09/S611 ensures that this does not give rise to a taxable credit for the insolvent company - any resultant credit in the company’s accounts is disregarded.

‘Statutory insolvency arrangement’ is defined at CTA10/S1119 and explained at CFM33190.