Corporation Tax Act 2009 section 582

Contract for differences

Section 582 defines the term "contract for differences" for the purposes of the derivative contracts rules in Part 7 of the Corporation Tax Act 2009.

• A contract for differences is a contract whose purpose (or pretended purpose) is to make a profit or avoid a loss by reference to fluctuations in the value or price of property, or in a designated index or other factor
• The definition is deliberately broad — the index or factor referred to in the contract may be determined by reference to any matter whatsoever
• Certain types of contract are specifically excluded: options, futures, contracts of insurance, capital redemption policies, contracts of indemnity, guarantees, warranties, and loan relationships
• Contracts falling within section 6(2) of, or paragraph 1(1) of Schedule 2 to, the Energy Act 2013 are also included within the definition