Finance Act, 1989
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Certain futures contracts not to be chargeable assets. |
32.— Section 19 of the Capital Gains Tax Act, 1975 , is hereby amended— | |
(a) by renumbering the existing provision as subsection (1) of that section, and | ||
(b) by the addition of the following: | ||
“(2) In addition to the provisions of subsection (1), all futures contracts which— | ||
(a) are unconditional contracts for the acquisition or disposal of any of the instruments referred to in subsection (1) or any other instruments to which the provisions of this section apply by virtue of any other enactment (whenever enacted), and | ||
(b) require delivery of the instrument in respect of which the contracts are made, | ||
shall not be chargeable assets: | ||
Provided that the requirement that the instrument be delivered shall be treated as satisfied where a person who has entered into a futures contract dealt in or quoted on a futures exchange or stock exchange closes out the futures contract by entering into another futures contract, so dealt in or quoted, with obligations which are reciprocal to those of the contract so closed out and thereafter settles in respect of both futures contracts by means (if any) of a single cash payment or receipt.”. |