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CG56084 | Futures: settled by payment: CG treatment

From HM Revenue & Customs · Capital Gains Manual

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).