Commentary on Sections Overview Overview Section 641: Derivative contracts to be taxed on a chargeable gains basis
1765.This section treats a chargeable gain or allowable loss as arising in respect of a contract to which one of the provisions listed in subsection (2) applies. It is based on paragraph 45A(1), (4) and (5) of Schedule 26 to FA 2002.
1766.Whether there is such a gain or loss depends on whether the relevant credits arising in respect of the contract exceed such relevant debits or those debits exceed those credits.