Income Tax Act 2007 section 864

Qualifying uncertificated eligible debt security units

Section 864 excludes certain deposits from being treated as relevant investments where they are linked to qualifying uncertificated eligible debt security units.

• A deposit is not a relevant investment if a qualifying uncertificated eligible debt security unit has been issued in respect of it
• The exclusion applies where the unit has been issued by a deposit-taker
• The definition of a qualifying uncertificated eligible debt security unit is found in section 986 of the Income Tax Act 2007
• This provision originates from earlier rules in ICTA section 481(5)(a) and the building society regulations