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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Futures: settled by payment: CG treatment

TCGA92/S143 (6)

TCGA92/S143 (6) deals with futures which are not closed out by entry into a reciprocal contract but where the obligations under the contract are settled either in full or in part by a payment. The word ‘obligations’ here encompasses both liabilities and entitlements. The Section provides that any payment

  • received is treated as consideration for the disposal, or part-disposal, of an asset; the entitlement under the contract
  • made is treated an incidental cost of the disposal , or part-disposal, of an asset; the liability under the contract treated as an asset by S143(1). The payment is allowable under TCGA92/S38 (1)(c).