Income Tax (Trading and Other Income) Act 2005 section 756

Which securities and loans are foreign currency ones for section 755

Section 756 defines what counts as a "foreign currency" security or loan for the purposes of the exemption from income tax on interest paid to non-UK residents under section 755.

• A security or loan is a foreign currency one if, under its terms, repayment is to be made in a currency other than sterling
• For securities issued or loans made before 6th April 1982, the test is different: the repayment currency must not be that of a country listed in Schedule 1 to the Exchange Control Act 1947 at the time of issue or lending
• Where a security offers a choice of repayment currency, it only qualifies as foreign currency if the option belongs exclusively to the holder of the security
• Where a loan offers a choice of repayment currency, it only qualifies as foreign currency if the option belongs exclusively to the person entitled to repayment or eventual repayment