C1C2Part 7Derivative contracts
Annotations:
Chapter 2Contracts to which this Part applies
Meaning of “derivative contract” and other basic definitions
582“Contract for differences”
1
In this Part “contract for differences” means a contract the purpose or pretended purpose of which is to make a profit or avoid a loss by reference to fluctuations in—
a
the value or price of property described in the contract, or
b
an index or other factor designated in the contract.
2
But none of the following is a contract for differences—
a
an option,
b
a future,
c
a contract of insurance,
d
a capital redemption policy,
e
a contract of indemnity,
f
a guarantee,
g
a warranty, or
h
a loan relationship.
3
For the purposes of subsection (1)(b), an index or factor may be determined by reference to any matter.
Pt. 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)