Income Tax (Trading and Other Income) Act 2005

294 (1) Amend section 710 (meaning of “securities”, transfer etc. for purposes of sections 711 to 728) as follows.

(2) In subsection (3)—

(a) after “Ulster Savings Certificates” insert “, as defined in section 693(7) of ITTOIA 2005”,

(b) after paragraph (c) insert—

“(ca) uncertificated eligible debt security units within the meaning of section 552(2) of that Act;”,

(c) in paragraph (d) for “section 56(5)” substitute “section 552(2) of that Act”,

(d) in paragraph (da) for the words from “fulfils” to “of it” substitute “is a right falling within section 552(1)(c) of that Act”, and

(e) for paragraph (f) substitute—

“(f) any security that is a deeply discounted security for the purposes of Chapter 8 of Part 4 of ITTOIA 2005 (see section 430 of that Act).”

(3) After subsection (3) insert—

“(3A) Paragraph (f) of subsection (3) does not apply to a security on the transfer of which Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) would apply subject to the rules in sections 454 to 456 of that Act (see section 453(2) and (3) of that Act).”

(4) In subsection (5)—

(a) omit “and” at the end of paragraph (a), and

(b) at the end of paragraph (b) insert “and

(c) does not include any transfer of a security to which Chapter 8 of Part 4 of ITTOIA 2005 applies subject to the rules in sections 454 to 456 of that Act.”