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HMRC internal manual

Employment Related Securities Manual

From
HM Revenue & Customs
Updated
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Employment-related securities and options: contracts for differences

The definition of security includes rights under contracts for differences or contracts similar to contracts for differences (other than contracts of insurance) (see ITEPA03/S420 (1)(g)).

Per ITEPA03/S420 (4), a contract similar to a contract for differences is a contract

  1. which is not a contract for differences, but
  2. the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in the value or price of property or an index or other factor designated in the contract.