A future is a type of forward contract, it is an agreement to buy or sell a fixed amount of a commodity or a financial instrument at a specified future date at an agreed price1. Standard exchange-traded futures are standard contracts which are traded on a recognised futures market or exchange, these are listed at CG56120. An over-the-counter (OTC) future is a bespoke contract designed to meet the needs of a specific person. OTC futures are generally not traded but will run to maturity by making a monetary payment. The legislative definition of a commodity or financial future is one which is being dealt in on a recognised futures exchange2. This is extended to cover OTC contracts by TCGA 1992, s 143(3) where one of the parties is authorised person as defined in TCGA 1992, s 143(8), see C2.1018.
Where the futures fall in within the derivatives legislation for corporation tax they are taxed under that regime, see Division D1.8. Otherwise any gains arising in the course of dealing in commodity
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