Finance Act 1982

58 Index-linked Treasury Stock

(1) This section has effect with respect to the following Treasury Stock, namely—

(a) 2 per cent. Index-linked Treasury Stock 1996 ; and

(b) 2 per cent. Index-linked Treasury Stock 2006 ; and

(c) 2½ per cent. Index-linked Treasury Stock 2011;

and in this section any such stock is referred to as " existing index-linked stock ".

(2) The variation of the prospectuses relating to existing index-linked stock which was effected by a supplement to those prospectuses dated 9th March 1982 shall not be regarded as having affected the status of such stock as restricted government securities for the purposes of section 41 of the [1981 c. 35.] Finance Act 1981 (treatment of any income, gains or losses of insurance companies relating to such securities).

(3) Subject to subsection (4) below, on or after 27th March 1982 existing index-linked stock shall not be regarded as restricted government securities for the purposes of section 41 of the Finance Act 1981.

(4) If any existing index-linked stock was on 27th March 1982 held by an insurance company against and applied solely towards meeting the liabilities of its pension business, then, if and so long as the stock continues to be so held by that company, it shall continue to be treated as restricted government securities for the purposes of section 41 of the Finance Act 1981.

(5) If, on or after 27th March 1982, any existing index-linked stock which on that date was held by an insurance company ceases to be restricted government securities for the purposes of section 41 of the Finance Act 1981, otherwise than by virtue of being actually disposed of or being redeemed, then, on the day on which it so ceases, the stock shall be deemed for the purposes of corporation tax, including, subject to subsection (6) below, corporation tax on chargeable gains, to have been disposed of and immediately re-acquired at its market value on that date.

(6) For the purposes of sections 67 and 68 of the [1979 c. 14.] Capital Gains Tax Act 1979 (gilt-edged securities)—

(a) in ascertaining the date on which securities were acquired, no account shall be taken of any deemed disposal and re-acquisition resulting from subsection (5) above ; and

(b) so long as any existing index-linked stock continues, by virtue of subsection (4) above, to be treated on and after 27th March 1982 as restricted government securities for the purposes of section 41 of the [1981 c. 35.] Finance Act 1981, it shall be regarded as being stock of a different kind from existing index-linked stock which is not so treated.

(7) In this section " insurance company " and " pension business " have the same meaning as in section 323 of the Taxes Act.