Contracts excluded by virtue of their underlying subject matterU.K.
4(1)A relevant contract is not a derivative contract for the purposes of this Schedule if its underlying subject matter consists wholly of any one or more of the excluded types of property or is treated as consisting wholly of such property.
[F1(1A)Nothing in this paragraph prevents a relevant contract to which paragraph 6, 7 or 8 applies from being a derivative contract.]
(2)For the purposes of this paragraph as it relates to an option or future, the excluded types of property are—
F2(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)intangible fixed assets;
(d)shares in a company; [F4and]
(e)rights of a unit holder under a unit trust scheme; F5...
F6(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)For the purposes of this paragraph as it relates to a contract for differences, the excluded types of property are those falling within paragraphs F7... [F8(d) and (e)] of sub-paragraph (2).
(4)Paragraph 9 applies for the purpose of determining whether the underlying subject matter of a relevant contract is to be treated as consisting wholly of any one or more of the excluded types of property.
(5)This paragraph has effect subject to [F9paragraphs 5 and 5A] (which qualify the exclusion of relevant contracts by this paragraph).
Textual Amendments
F1Sch. 26 para. 4(1A) inserted (with effect in accordance with art. 1(2) 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), 5(a)
F2Sch. 26 para. 4(2)(a) omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2004 (S.I. 2004/2201), arts. 1(1), 5(b)(i)
F3Sch. 26 para. 4(2)(b) omitted (with effect in accordance with art. 1(3)(4) of the amending S.I.) by virtue of The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2004 (S.I. 2004/2201), arts. 1(1), 5(b)(i)
F4Word in Sch. 26 para. 4(2)(d) added (with effect in accordance with art. 1(2) 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), 5(b)(ii)
F5Word in Sch. 26 para. 4(2)(e) omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2004 (S.I. 2004/2201), arts. 1(1), 5(b)(iii)
F6Sch. 26 para. 4(2)(f) omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2004 (S.I. 2004/2201), arts. 1(1), 5(b)(iv)
F7Words in Sch. 26 para. 4(3) omitted (with effect in accordance with art. 1(3)(4) of the amending S.I.) by virtue of The Finance Act 2002, Schedule 26, Parts 2 and 9 (Amendment) Order 2004 (S.I. 2004/2201), arts. 1(1), 5(c)(i)
F8Words in Sch. 26 para. 4(3) substituted (with effect in accordance with art. 1(2) 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), 5(c)(ii)
F9Words in Sch. 26 para. 4(5) substituted (with effect in accordance with art. 1(2) 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), 5(d)