SCHEDULES

C1SCHEDULE 27Derivative contracts: minor and consequential amendments

Annotations:
Modifications etc. (not altering text)
C1

Sch. 27 extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(4)(8)(11)

7

1

Section 468L (interest distributions) is amended as follows.

2

In subsection (9) (meaning of “qualifying investments”) after paragraph (e) insert—

f

derivative contracts whose underlying subject matter consists wholly of any one or more of the matters referred to in paragraphs (a) to (e) above;

g

contracts for differences whose underlying subject matter consists wholly of interest rates or creditworthiness or both of those matters.

3

In subsection (11) (assumption as to investments of other authorised unit trust which are to be regarded as qualifying investments) after “within paragraphs (a) to (c)” insert “ , (f) and (g) ”.

4

After subsection (12G) insert—

12H

For the purposes of this section—

  • “contract for differences” has the same meaning as in paragraph 12 of Schedule 26 to the Finance Act 2002;

  • “derivative contract” means—

    1. a

      a contract which is a derivative contract within the meaning of that Schedule, or

    2. b

      a contract which is, in the accounting period in question, treated as if it were a derivative contract by virtue of paragraph 36 of that Schedule (contracts relating to holdings in unit trust schemes, open-ended investment companies and offshore funds);

  • “underlying subject matter” has the same meaning as in paragraph 11 of that Schedule.