New tax rules could help the UK take the lead in the nascent property derivatives market in the second half of 2004.
The rules will treat non-trading profits, gains and losses on some property derivatives as capital gains and losses. So property derivatives that track the value of an underlying property, rather than just rental income derived from it, or total-return derivatives that track both income and capital returns, will get the appropriate tax treatment.
?Users want to match the derivative to the underlying asset,? says Ed Stacey, managing director, derivatives, at Eurohypo AG.
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