Commentary on Sections Structure of Chapters Overview Section 558: Meaning of “future”, “option” etc.
2181.This section explains what is meant by future and option for the purposes of this Chapter. It is based on paragraphs 4 and 4A of Schedule 5AA to ICTA.
2182.Subsection (2) reproduces the definition of “traded option” in section 144(8) of TCGA rather than relying on a cross-reference to that Act, as paragraph 4(6) of Schedule 5AA does. But the section does not employ the term “traded option”. The distinction between a traded option and any other option is relevant only for paragraph 4(3) of Schedule 5AA to ICTA. Section 562 (when disposals of futures or options occur: general), which rewrites that paragraph, applies the substance of the definition without using the term.
2183.Subsection (3) has, for the sake of convenience, been introduced from TCGA.