Futures and options can be used to generate a guaranteed return which is, in economic terms, equivalent to interest. Without special rules any profits on such transactions would however (except where income treatment already applies) be liable to Capital Gains Tax. This may be beneficial to the recipient because

chargeable gains may be covered by existing capital losses; or

in the case of gilt futures and options held by individuals and trusts, any gains are not chargeable because of TCGA92/S115 (1), see CG54900, and CG56090.

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