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HMRC internal manual

Corporate Finance Manual

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HM Revenue & Customs
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Old rules: derivative contracts: quick guide to converting from FA 2002 to CTA 2009

Converting from FA 2002 to CTA 2009

The table below may be helpful to those already familiar with the derivative contracts legislation in FA02/SCH26. It is not intended to replace the tables of origins and destinations in CTA09, but provides a quick guide to the locations of legislation and guidance on the main derivative contracts topics. CFM cross-references are to the first (or only) page of relevant guidance.

Subject FA02/SCH26 CTA 2009 Reference
       
Exclusivity of derivative contracts Para 1 699 CFM50060
Definition of relevant contract, including meaning of future, option and contract for differences Para 2, para 12 576 - 578, 580 - 582 CFM50310
Relevant contracts within loan relationships, non-financial contracts and ‘hybrid derivatives’ Paras 2, 2A, 2B 584 - 586 CFM50410
Meaning of derivative contract - accounting test Para 3 579 CFM50220
Underlying subject matter - excluded contracts, and meaning of USM, splitting contracts Paras 4, 9, 11, 46 589 - 593, 583 CFM50500, and CFM50700 for contracts over shares
Former chargeable assets becoming derivative contracts Paras 4A, 4B, 4C Paras 92, 93 Sch 2 CFM50850
Qualified exclusions Paras 5 - 8, para 21: now repealed   CFM83090
Bringing profits and losses into account Para 14 572 - 574 CFM51020
Basic computational rules Paras 15, 16, 17A, 17B, 17C, 22 594 - 599, 606 CFM51040
Deemed assignment on company migration Para 22A 609 - 610 CFM53100
Unallowable purposes Paras 23, 24 690 - 692 CFM56010
Capitalised amounts Para 25 604 CFM52040
Credits or debits in equity Para 25A 605 CFM52050
Transfers of value to connected companies Para 26 695 CFM56070
Non arm’s length contracts Para 27, 31A 693 - 694 CFM56050
Disposals for consideration not fully recognised Para 27A 698 CFM56110
Group continuity Paras 28, 29, 30, 30A 625 - 632 CFM53010
European cross-border mergers etc Para 30B - 30H 674 - 688 CFM53120
Anti-avoidance: contracts with non-residents Para 31 696 CFM56090
Collective investment schemes Paras 34 - 39 587, 601, 602, 660, 637, 638 CFM54030
Contracts becoming or ceasing to be derivative contracts Paras 43A, 43B 661, 662 CFM50820
Annual capital gains on certain derivatives Paras 45A, 45B 641, 642, 663, 664 CFM55030
Property derivatives Paras 45C, 45G 643, 644, 650, 659 CFM55080
Convertible securities - holders Paras 45D, 45H 645 - 647 CFM55210
Share-linked securities - holders Para 45F, 45HZA 648, 649 CFM55290
Options or futures resulting in delivery of shares Para 45HA 667, 668 CFM55130
Index-linked gilts Para 45I 623 CFM52590
Convertible securities - issuers Paras 45J, 45JA 652 - 655, 665, 666, para 94 Sch 2 CFM55410
Share-linked securities - issuers Paras 45K, 45KA 657 - 658, para 88 Sch 2 CFM55470
Derivatives embedded in non-loan contracts Paras 45L, 45LA 616 - 618 CFM52520
Pre-paid futures Para 45M 592 CFM52580
Partnerships Paras 49, 50 619 - 621 CFM52710
Adjustments on changes of accounting policy Para 50A 613 - 615 CFM52030