Corporation Tax Act 2009 section 981

Exemption for gains on financial futures

Section 981 exempts companies from corporation tax on income in respect of gains arising from dealing in financial futures, traded options, and financial options.

• Gains from dealing in financial futures, traded options, or financial options are exempt from corporation tax on income under this chapter
• The exemption extends to gains from transactions with authorised persons outside a recognised futures exchange, as treated under chargeable gains rules
• Because these gains are exempt from income tax treatment, they are instead taxed as chargeable gains under the Taxation of Chargeable Gains Act 1992
• The exemption does not cover commodity futures, which fall within the derivative contracts regime under Part 7 of the Corporation Tax Act 2009