SCHEDULES
SCHEDULE 26Derivative contracts
Part 2Derivative contracts
5Qualified exclusion: contract held by company for purposes of trade
1
Paragraph 4 does not prevent a relevant contract to which this paragraph applies from being a derivative contract.
2
This paragraph applies to a relevant contract of a company if—
a
it is entered into or acquired by the company for the purposes of a trade carried on by it, and
b
its underlying subject matter consists, or is treated as consisting, wholly of—
i
shares in a company,
ii
rights of a unit holder under a unit trust scheme, or
iii
assets representing a loan relationship to which either section 92 or 93 of the Finance Act 1996 applies.
3
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 the property referred to in sub-paragraph (2)(b).