Corporation Tax Act 2009 section 1280

Section 1279: supplementary provision

Section 1280 defines the key terms used in the FOTRA securities exemption, including what qualifies as a "FOTRA security", what the relevant "exemption condition" is for each type, and what counts as a "gilt-edged security".

• A FOTRA security can be one of three types: a security issued with a tax exemption condition under the Finance (No.2) Act 1931, a gilt-edged security issued before 6 April 1998 without such a condition (excluding 3½% War Loan 1952 Or After), or 3½% War Loan 1952 Or After itself.
• The exemption condition varies depending on which type of FOTRA security is involved, drawing on different legislative authorisations for each of the three categories.
• For pre-6 April 1998 gilt-edged securities that were not originally issued with a FOTRA condition, the exemption condition is treated as the same condition that applied to 7.25% Treasury Stock 2007, as deemed by the Finance Act 1998.
• A gilt-edged security is one listed in Schedule 9 to the Taxation of Chargeable Gains Act 1992, or one that will be so listed once an anticipated order is made, provided the prospectus for the security refers to the expected order.