Income Tax (Trading and Other Income) Act 2005 section 455

Listed securities held since 26th March 2003: calculating the profit or loss on disposals

Section 455 sets out how to calculate profits and losses on disposals of listed deeply discounted securities that have been held continuously since 26 March 2003, including the treatment of incidental expenses of acquisition and disposal.

• A disposal profit calculated under section 439 is reduced by any incidental expenses of acquisition or disposal incurred before 6 April 2015 that have not already been deducted under section 439(4).
• A disposal loss arises where the deductible costs — being the original acquisition cost plus incidental expenses incurred before 6 April 2015 — exceed the amount received on disposal.
• Where a person re-acquires the same security, any expenses relating to a previous acquisition are ignored when calculating the profit or loss on a subsequent disposal.
• No incidental expenses are recognised in connection with the deemed transfer and immediate reacquisition of government security strips on 5 April under section 445.