Commentary on Sections Overview Chapter 1: Introduction Section 572: Profits and losses to be calculated using credits and debits given by this Part
1500.This section sets out how profits and losses from derivative contracts are calculated. It is based on paragraph 14(1) of Schedule 26 to FA 2002.
1501.The terms “credit” and “debit” are used in accounting practice. The Part operates by reference to accounts drawn up in accordance with generally accepted accounting practice (see section 595 (general principles about the bringing into account of credits and debits)).
1502.Chapter 3 contains the main rules for finding the relevant credits and debits. Subsection (2) indicates that in some cases profits and losses are calculated using other factors (the sections in question all give rise to amounts to be charged to corporation tax as chargeable gains).