Income Tax (Trading and Other Income) Act 2005 section 443

Application of this Chapter to strips of government securities

Section 443 introduces the special tax rules that apply to strips of government securities, confirming that all strips are automatically treated as deeply discounted securities and setting out which further sections contain the detailed rules.

• All strips of government securities are automatically classified as deeply discounted securities for tax purposes, regardless of whether they would otherwise qualify
• Special rules govern how acquisitions, disposals, profits and losses on strips are calculated, including restrictions by reference to original acquisition cost
• Anti-avoidance provisions address the manipulation of acquisition, transfer or redemption payments on strips
• Specific rules determine how the market value of strips is to be established