Part 4 Savings and investment income

Chapter 12 Disposals of futures and options involving guaranteed returns

Charge to tax under Chapter 12

558 Meaning of “future”, “option” etc.

(1) In this Chapter “future” means outstanding rights and obligations under a commodity or financial futures contract.

(2) In this Chapter “option” means—

(a) an option relating to—

(i) currency, shares, stock, securities or an interest rate, or

(ii) rights under a commodity or financial futures contract, or

(b) any other option which at the time of the disposal in question is listed on a recognised stock exchange or recognised futures exchange,

and includes any liability or entitlement under an option within paragraph (a) or (b).

(3) In this Act “recognised futures exchange” means the London International Financial Futures Exchange and any other futures exchange which is for the time being designated for the purposes of TCGA 1992 by order made by the Board of Inland Revenue under section 288(6) of that Act.