Modifications etc. (not altering text)
C1Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
(1)In this Part references to the underlying subject matter of a relevant contract are to be read as follows.
(2)The underlying subject matter of an option is—
(a)the property which would fall to be delivered if the option were exercised, or
(b)if the property which would so fall is a derivative contract, the underlying subject matter of that contract.
(3)The underlying subject matter of a future is—
(a)the property which, if the future were to run to delivery, would fall to be delivered at the date and price agreed when the contract is made, or
(b)if the property which would so fall is a derivative contract, the underlying subject matter of that contract.
(4)The underlying subject matter of a contract for differences is—
(a)if the contract for differences relates to fluctuations in the value or price of property described in the contract, the property so described, or
(b)if an index or factor is designated in the contract for differences, the matter by reference to which the index or factor is determined.
(5)The things which may be the subject matter of a contract for differences include—
(a)interest rates,
(b)weather conditions, and
(c)creditworthiness.
(6)Interest rates are not the underlying subject matter of a relevant contract if—
(a)under the terms of that contract—
(i)the date on which a party to that contract becomes subject to a duty to make a payment is a variable date, and
(ii)the amount of that payment varies according to the date of payment, and
(b)those terms refer to an interest rate only for the purpose of establishing that amount.
(7)The underlying subject matter of a relevant contract is not treated as being—
(a)land,
(b)shares in a company, or
(c)rights of a unit holder under a unit trust scheme,
just because its underlying subject matter includes income from that kind of property.