A ‘property-based total return swap’ is one that swaps changes in a property index, for an interest rate. Such swaps are afforded a special tax treatment by CTA09/S650, with the ‘capital’ element being split from the ‘income’ element.
CTA09/S650 applies to derivative contracts that meet all of conditions A to H. These conditions are:
Condition A: The contract must be a contract for differences.
Condition B: The contract must designate one or more indices.