Contracts to which the exclusions cannot apply

Shares treated as debt for tax purposes

Shares may, for the holder, be treated as creditor loan relationships if

they are shares in an open-ended investment company coming within CTA09/S488, or

they come within CTA09/S524 (shares subject to outstanding third party obligations) or CTA09/S526 (non-qualifying shares).

Where profits and losses on the shares themselves are taxed as income, it is appropriate for derivatives over such shares to also come within an income regime. So CTA09/S589(3) ensures that these shares are not an ‘excluded property’.

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