Part 4Savings and investment income
Chapter 12Disposals of futures and options involving guaranteed returns
When disposals involve guaranteed returns
559When disposals involve guaranteed returns
1
For the purposes of this Chapter, a disposal of a future or option involves guaranteed returns if conditions A to C are met.
2
Condition A is that the disposal is one of two or more related transactions (see section 566).
3
Condition B is that those transactions are designed to produce a guaranteed return (see subsection (5)).
4
Condition C is that the guaranteed return comprises—
a
the return from the disposal (see section 561), or
b
the return from a number of disposals of futures or options, of which the disposal is one, taken together.
5
For the purposes of this Chapter, two or more related transactions are transactions designed to produce a guaranteed return if, taking them together, it would be reasonable to assume from one or more of the matters specified in subsection (6) that—
a
the main purpose of the transactions is or was the production of a guaranteed return from one or more disposals of futures or options (see section 560), or
b
that is or was one of their main purposes.
6
Those matters are—
a
the likely effect of the transactions,
b
the circumstances in which the transactions are entered into, and
c
the circumstances in which any one of the transactions is entered into.
7
In the case of a transaction which is a disposal, the references in subsection (6) to entering into the transaction are references to making the disposal.