Section 494 — Corporation Tax Act 2009: Meaning of “qualifying investments”

Meaning of “qualifying investments” 494 1 In section 493 “ qualifying investments ”, in relation to an open-ended investment company, a unit trust scheme or an offshore fund, means investments of the company, scheme or fund of any of the following descriptions—

a money placed at interest, b securities, c shares in a building society, d qualifying holdings in an open-ended investment company, a unit trust scheme or an offshore fund, e alternative finance arrangements, f derivative contracts whose underlying subject matter consists wholly of any one or more of—

i the matters referred to in paragraphs (a) to (e) (other than diminishing shared ownership arrangements),

and ii currency, g contracts for differences whose underlying subject matter consists wholly of any one or more of—

i interest rates, ii creditworthiness, and iii currency, and h derivative contracts not within paragraph (f) or (g) where there is a hedging relationship between the contract and an asset within paragraphs (a) to (d).

2 In this section— “ contract for differences ” has the same meaning as in Part 7 (derivative contracts) (see section 582), “ diminishing shared ownership arrangements ” means arrangements to which section 504 applies, “ hedging relationship ” has the meaning given by section 496, “ qualifying holding ” has the meaning given by section 495(1), “ security ” does not include shares in a company, and “ underlying subject matter ” has the same meaning as in Part 7 (derivative contracts) (see section 583).