Part 5Loan Relationships

Chapter 12Special rules for particular kinds of securities

Funding bonds

414Redemption of funding bonds

1

The redemption of funding bonds is not treated as the payment of interest on a debt for the purposes of the Corporation Tax Acts if their issue was treated as the payment of interest on the debt under—

a

section 413, or

b

section 380 of ITTOIA 2005 (which makes provision corresponding to section 413 for income tax purposes).

2

In this section “funding bonds” includes any bonds, stocks, shares, securities or certificates of indebtedness.