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

Meaning of "corporate strip" in Chapter 8

Section 452E defines what a "corporate strip" is for the purposes of Chapter 8, setting out the conditions an asset must meet and the exclusions that apply.

• A corporate strip is an asset that is, or has at any time been, one of the separate assets created when an interest-bearing corporate security is divided into its component parts under section 452C
• An asset is excluded from being a corporate strip if it represents the right to, or secures, a proportionate share of every remaining payment due under an interest-bearing corporate security or another corporate strip
• An asset only counts as a corporate strip for a particular person if they acquired it on or after 2 December 2004
• An asset acquired under an agreement entered into before 2 December 2004 cannot be treated as a corporate strip, even if the actual acquisition took place on or after that date