Income Tax Act 2007 section 677

Nominal value: foreign currency securities

Section 677 explains how to determine the nominal value of securities for the purposes of the accrued income scheme when that nominal value is expressed in a currency other than sterling.

• Securities with a nominal value in a foreign currency must be converted to their sterling equivalent for the purposes of the accrued income scheme
• The sterling equivalent is determined on a day-by-day basis, meaning the converted value may change from one day to the next
• The conversion must use the London closing rate of exchange for the relevant day
• No other exchange rate or conversion method is permitted for these purposes