Income Tax (Trading and Other Income) Act 2005 section 128

Other definitions

Section 128 defines key terms used throughout this part of the schedule, specifically the meanings of "security", "shares or securities", and "warrant".

• A "security" carries the same meaning as defined in the Taxation of Chargeable Gains Act 1992, which covers loan stock, bonds and similar debt instruments that can be converted into or exchanged for shares.
• References to shares or securities are broad enough to include any option, warrant, or other right to acquire shares or securities, not just the shares or securities themselves.
• The term "warrant" follows the definition set out in the Financial Services and Markets Act 2000, covering instruments that give the holder the right to subscribe for shares or securities.
• These definitions ensure consistency with existing tax and financial services legislation when applying the rules in this part of the schedule.