HMRC internal manual

Employment Related Securities Manual

ERSM20190 - Employment-related securities and options: contracts for differences

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

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.