SCHEDULES

SCHEDULE 39Relevant discounted securities: withdrawal of relief for costs and losses, etc

Consequential amendments

5

(1)

In paragraph 6 of that Schedule (trustees and personal representatives)—

(a)

in sub-paragraph (3) for “paragraphs 1(1) and 2(1) above do not apply” substitute “ paragraph 1(1) above does not apply ”;

(b)

omit sub-paragraphs (4) to (6).

(2)

Omit the following provisions of that Schedule—

(a)

paragraph 7 (treatment of losses where income exempt);

(b)

paragraph 9A (securities issued to connected person etc at price in excess of market value: transfer to connected person);

(c)

paragraph 11 (accrued income scheme).

(3)

In paragraph 14 of that Schedule (gilt strips)—

(a)

for the heading substitute “ Strips of government securities ”;

(b)

in sub-paragraphs (2) and (3), omit the words “gilt-edged”;

(c)

in sub-paragraph (4), omit the words after paragraph (c).

(4)

In section 710(3) of the Taxes Act 1988 (categories of security not included in accrued income scheme) after paragraph (e) insert—

“(f)

any relevant discounted security within the meaning of Schedule 13 to the Finance Act 1996 (see paragraphs 3 and 14(1) of that Schedule).”.