Modifications etc. (not altering text)
C1Sch. 26 modified by 1996 c. 8, s. 86(3C) (as inserted (24.7.2002 with effect as mentioned in s. 82(2) of the amending Act) by 2002 c. 23, s. 82, Sch. 25 Pt. 1 para. 6(3))
C2Sch. 26 extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(4)(8)(11)
C3Sch. 26 applied by 1988 c. 1, s. 440(2B) (as amended (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 70)
C4Sch. 26 modified by 1996 c. 8, s. 94A (as inserted (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 10 para. 13)
C5Sch. 26 applied (with modifications) (5.10.2004) by Energy Act 2004 (c. 20), s. 198(2), Sch. 9 para. 24 (with s. 38(2)); S.I. 2004/2575, art. 2(1), Sch. 1
C6Sch. 26 applied (with modifications) (5.10.2004) by Energy Act 2004 (c. 20), s. 198(2), Sch. 9 para. 12 (with s. 38(2)); S.I. 2004/2575, art. 2(1), Sch. 1
C7Sch. 26 modified (8.6.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 7; S.I. 2005/1444, art. 2(1), Sch. 1
C8Sch. 26 modified (8.6.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 19; S.I. 2005/1444, art. 2(1), Sch. 1
11(1)[F1In this Schedule] references to the underlying subject matter of a relevant contract are to be construed in accordance with this paragraph.
(2)The underlying subject matter of an option is—
(a)the property which would fall to be delivered if the option were exercised, or
(b)where the property which would so fall to be delivered is a derivative contract, the underlying subject matter of that derivative contract.
(3)The underlying subject matter of a future is—
(a)the property which, if the future were to run to delivery, would fall to be delivered at the date and price agreed when the contract is made, or
(b)where the property which would so fall to be delivered is a derivative contract, the underlying subject matter of that derivative contract.
(4)The underlying subject matter of a contract for differences is—
(a)where the contract for differences relates to fluctuations in the value or price of property described in the contract, the property so described, or
(b)where an index or factor is designated in the contract for differences, the matter by reference to which the index or factor is determined.
(5)In the case of a contract for differences, its underlying subject matter may include—
(a)interest rates;
(b)weather conditions;
(c)creditworthiness.
(6)Interest rates are not the underlying subject matter of a relevant contract in a case where, under the terms of that contract,—
(a)the date on which a party to that contract becomes subject to a duty to make a payment is a variable date, and
(b)the amount of that payment varies according to the date of payment,
and the terms of the relevant contract refer to an interest rate or rates for the purpose only of establishing that amount.
[F2(7)Where the underlying subject matter of a relevant contract consists of or includes income from any of the following—
(a)land (wherever situated),
(b)shares in a company,
(c)rights of a unit holder under a unit trust scheme,
the underlying subject matter shall not be treated, by reason only of that income, as being land or such shares or rights (as the case may be).]
Textual Amendments
F1Words in Sch. 26 para. 11(1) substituted (with effect in accordance with art. 1(4) of the amending S.I.) by The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment No. 2) Order 2005 (S.I. 2005/2082), arts. 1(2), 7
F2Sch. 26 para. 11(7) added (with effect in accordance with art. 1(3)(4) of the amending S.I.) by The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2004 (S.I. 2004/2201), arts. 1(1), 12