Income Tax (Trading and Other Income) Act 2005 section 153

Meaning of "gilt-edged security" and "strip"

Section 153 defines the terms "gilt-edged security" for the purposes of the Act and "strip" for the purposes of sections 151 and 152, which deal with exchanges of gilts for gilt strips and the consolidation of gilt strips.

• A gilt-edged security is one listed as such under the Taxation of Chargeable Gains Act 1992, or one whose prospectus anticipates it will be designated as such by order.
• A strip is a security issued under the National Loans Act 1968 that represents the right to one or more individual interest or principal payments remaining due under the original gilt.
• The strip must be issued alongside other securities so that, taken together, they collectively cover every remaining payment due under the original gilt-edged security.
• A strip cannot itself represent a proportionate share of every remaining payment under the gilt; it must correspond to specific, separate payments.