Contracts over holdings in OEIC, unit trust or offshore fund

There is one circumstance in which a relevant contract (CFM50300) will always qualify as a derivative contract. That is where its underlying subject matter (CFM50500) consists wholly or partly of a ‘relevant holding’. Where such a contract would not otherwise be within CTA09/Part 7 (for example, because it fails the ‘accounting test’ (CFM50200)), CTA09/S587 specifically provides that Part 7 is to have effect as if it were a derivative contract.

A ‘relevant holding’ means

shares in an open-ended investment company (OEIC), or

rights under a unit trust scheme, or

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