SCHEDULES
F1SCHEDULE 10
Part IV Amendments
(1) Deep discount securities
26
1
Schedule 4 to the Taxes Act 1988 (deep discount securities) shall be amended as follows.
2
In paragraph 1 (interpretation) the following sub-paragraph shall be inserted after sub-paragraph (1)—
1A
Notwithstanding anything in sub-paragraph (1) above, for the purposes of this Schedule a security is not a deep discount security if—
a
it was issued by a company on or after 1st August 1990, and
b
under the terms of issue it can be converted into share capital in a company (whether or not the company is the one which issued the security).
3
The following shall be inserted after paragraph 20—
21 Convertible securities: special rules
In a case where—
a
a security is a qualifying convertible security, for the purposes of Schedule 10 to the Finance Act 1990, at the time of its issue, and
b
apart from this paragraph it would be a deep discount security at that time,
the security shall be treated, at the time of its issue and at all subsequent times, as not being a deep discount security.
Sch. 10 repealed (29.4.1996 with effect in accordance with the provisions of Chapter II of Part IV of the amending Act) by 1996 c. 8, ss. 104, 205, Sch. 14 para. 58, Sch. 41 Pt. V(3) Note (with Sch. 15 para. 21)