Income Tax (Trading and Other Income) Act 2005 section 451

Market value of strips etc. quoted in foreign stock exchange lists

Section 451 sets out how to determine the market value of government security strips and other securities that are quoted on a foreign stock exchange, rather than a UK one.

• The market value of an overseas strip or security is based on its quoted price on a foreign stock exchange.
• Where a foreign stock exchange does not publish separate buy and sell prices, alternative valuation rules apply to reflect the different mechanics of that exchange.
• If a strip or security is listed on more than one foreign stock exchange, a tie-breaker rule determines which exchange's listing is used for valuation purposes.
• These rules mirror the UK strip valuation approach but are adapted for the way overseas exchanges operate.