D1.875 Tax treatment of debits and credits—general
Unless the contract is excluded from the derivative contracts regime (because it does not satisfy the accounting test or because of the nature of its underlying asset), the treatment of the credits and debits in an accounting period depends on whether the contract is held for the purposes of a trade carried on by the company. The term trade has its ordinary meaning and does not include a UK or overseas property business1.
If the contract is held for the purposes of a trade, the credits are treated
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