Income Tax (Trading and Other Income) Act 2005 section 446

Strips of government securities: relief for losses

Section 446 provides income tax relief for losses arising on the disposal of strips of government securities, allowing the loss to be deducted from net income in the relevant tax year.

• A loss arises where the amount paid for a strip (excluding incidental acquisition costs) exceeds the amount received on disposal (excluding incidental disposal costs), and the loss equals that excess
• Relief is given by deducting the loss from the claimant's net income for the tax year in which the disposal takes place
• A claim must be made by the person who disposed of the strip, no later than one year after the normal self-assessment filing date for the tax year of disposal
• Relief under this section cannot be claimed if relief for the same disposal is available under section 454 (listed securities held since 26 March 2003), and the relief is also subject to restrictions under sections 448, 449 and 458