Income Tax (Trading and Other Income) Act 2005 section 452B

Meaning of "interest-bearing corporate security" in Chapter 8

Section 452B defines what counts as an "interest-bearing corporate security" for the purposes of Chapter 8, which deals with profits from deeply discounted securities.

• An interest-bearing corporate security is any interest-bearing security that is not issued by a government and is not a share in a company
• The term "interest-bearing security" is broad enough to include loan stock and similar instruments
• Government-issued securities (such as gilts or foreign government bonds) are specifically excluded from the definition
• Section 452D(4)(a) provides an extended meaning for references to converting an interest-bearing corporate security into corporate strips