Income Tax Act 2007 section 676

Nominal value of securities: general

Section 676 explains how to determine the nominal value of securities for the purposes of the accrued income profits rules.

• Where interest is payable by reference to a stated value, that value is the nominal value of the securities
• Where interest is not linked to a stated value, the nominal value is the price at which the securities were originally issued
• The issue price rule applies only in the relatively rare cases where no reference value for interest is specified
• Separate rules under section 677 apply where the nominal value is denominated in a foreign currency rather than sterling