0 a situation in which the price of a commodity (= a product such as oil or a metal that is traded in large quantities) is higher if the buyer is to receive the commodity at a future date than it is if the buyer receives it immediately:
The new sub-paragraph (5)—the rather complicated looking one—remedies an anomaly where a person contangoes the purchase of shares.
I apologise for dealing with this technical subject, but we cannot legislate for these speculative gains without the problem of contangoes coming in.
You can borrow money by contangoes much cheaper than you can borrow from the banks.
With the new basis rule for contangoed sales, further provision has to be made to secure that a bear profit will remain taxable.
If he has sold shares for the first account, he contangoes by buying for that account and simultaneously selling for the next.
There is nothing in the provision which specifically excludes anything apart from the contango.
Sometimes the form of contango contract may be used.
If contango arrangements are made on a falling market, each contango gives rise to a taxable profit arrived at by comparing the sale price with a lower purchase price.
