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.
Commentary on Sections Structure of Chapters Overview Section 558: Meaning of “future”, “option” etc.