Finance Act 1996

73 (1) For subsections (5) to (9) of section 159 of that Act (basic valuation where accrued income scheme applies) there shall be substituted the following subsection—

“(5) Where—

(a) a company becomes entitled, on any transfer by virtue of which it becomes a party to a loan relationship, to a right of settlement under a qualifying debt on a security, and

(b) that transfer is a transfer with accrued interest,

the basic valuation of that right shall be found by taking the consideration for the company’s becoming entitled to the right and then deducting the amount of the accrued interest the right to which is transferred.”

(2) This paragraph does not apply in relation to transfers before 1st April 1996.