Commentary on Sections Overview Overview Section 675: Transfer of derivative contract at notional carrying value
1883.This section provides the rule that if either of the conditions in section 674 applies, debits and credits in respect of derivative contracts which are transferred as part of the business transfer are brought into account by both transferor and transferee as if the contracts had been transferred at the carrying value in the accounts of the transferor. It is based on paragraph 30D(1), (2) and (6) of Schedule 26 to FA 2002.
1884.The definition of “notional carrying value” is the same as that used in section 625(6).