128 Commodity and financial futures etc.: losses and gains. M1U.K.
[F1(1)][F2For the purposes of income tax,] any gain arising to any person in the course of dealing in commodity or financial futures or in qualifying options, which [F3is not chargeable to tax in accordance with Schedule 5AA and][F4apart from this subsection] would constitute profits or gains chargeable to tax under Schedule D otherwise than as the profits of a trade, shall not be chargeable to tax under [F5Schedule D].
[F6(2)For the purposes of corporation tax, any gain arising to any company in the course of dealing in financial futures or in qualifying options, which apart from this subsection would constitute profits or gains chargeable to tax under Schedule D otherwise than as the profits of a trade, shall not be chargeable to tax under Case V or VI of Schedule D.]
[F7(3)]In this section “commodity or financial futures” and “qualifying options” have the same meaning as in section [F8143 of the 1992 Act], and the reference to a gain arising in the course of dealing in commodity or financial futures includes any gain which is regarded as arising in the course of such dealing by virtue of subsection [F8(3)] of that section.
Textual Amendments
F1Words in s. 128 renumbered as s. 128(1) (with effect in accordance with s. 83(3) of the amending Act) by virtue of Finance Act 2002 (c. 23), Sch. 27 para. 3(1)(a) (with Sch. 28)
F2Words in s. 128(1) inserted (with effect in accordance with s. 83(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 27 para. 3(1)(b) (with Sch. 28)
F3Words in s. 128 inserted (with effect in accordance with s. 80(6) of the amending Act) by Finance Act 1997 (c. 16), s. 80(3)(a)
F4Words in s. 128(1) substituted (with effect in accordance with s. 83(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 27 para. 3(1)(c) (with Sch. 28)
F5Words in s. 128 substituted (with effect in accordance with s. 80(6) of the amending Act) by Finance Act 1997 (c. 16), s. 80(3)(b)
F6S. 128(2) inserted (with effect in accordance with s. 83(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 27 para. 3(2) (with Sch. 28)
F7Words in s. 128 renumbered as s. 128(3) (with effect in accordance with s. 83(3) of the amending Act) by virtue of Finance Act 2002 (c. 23), Sch. 27 para. 3(3) (with Sch. 28)
F8Words in s. 128 substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 14(7) (with ss. 60, 101(1), 171, 201(3)).
Marginal Citations
M1Source—1985 s.72(1), (2); 1987 (No.2) s.81(1)