Income Tax Act 2007 section 846

Interpretation of section 845

Section 846 provides key definitions and interpretive rules needed to apply section 845, which deals with the treatment of extra returns on securities as interest.

• Securities are considered to be "of the same kind" if a recognised stock exchange treats them as such, or would treat them as such if they were dealt in on one.
• The "relevant period" runs from the day after the last interest payment date before the new securities are issued (or, if there is no such date, the day the old securities were issued) up to and including the day the new securities are issued.
• An "interest payment day" is simply a day on which interest is payable under the old securities.
• "Relief" means a deduction allowed either in calculating amounts of income charged to income tax or in calculating net income.