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)
C2Pt. 7 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
C3Pt. 7 modified by 2007 c. 3, s. 809FZZ(8) (as inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2))
(1)In this Part “option” includes a warrant.
(2)References in this Part to an option do not include a contract whose terms—
(a)provide—
(i)that, after setting off their obligations to each other under the contract, a cash payment is to be made by one party to the other in respect of the excess, if any, or
(ii)that each party is liable to make to the other party a cash payment in respect of all that party's obligations to the other under the contract, and
(b)do not provide for the delivery of any property.
(3)Subsection (2) does not prevent an option whose underlying subject matter is currency from being an option.
(4)But see—
(a)section 652 (introduction to sections 653 to 655),
(b)section 665 (issuers of securities with embedded derivatives: equity instruments), and
(c)section 695 (transfers of value to connected companies),
in which “option” is to be construed as if subsections (2) and (3) were omitted.