Part 2

Trading income
Chapter 11

Trade profits: other specific trades

Dealers in securities etc.

Meaning of “gilt-edged security” and “strip”
153
1
In this Act “gilt-edged security” means a security which—
a
is a gilt-edged security for the purposes of TCGA 1992 (see Schedule 9 to that Act), or
b
will be such a security on the making of an order under paragraph 1 of Schedule 9 to TCGA 1992, if the making of the order is anticipated in the prospectus under which the security is issued.
2
For the purposes of sections 151 and 152 “strip”, in relation to a gilt-edged security, means a security issued under the National Loans Act 1968 (c. 13) which meets conditions A to C.
3
Condition A is that the security is issued for the purpose of representing the right to or of securing—
a
a payment corresponding to a payment of interest or principal remaining to be made under the gilt-edged security, or
b
two or more payments each corresponding to a payment to be so made.
4
Condition B is that the security is issued in conjunction with the issue of one or more other securities which, together with that security—
a
represent the right to, or
b
secure,
payments corresponding to every payment remaining to be made under the gilt-edged security.
5
Condition C is that the security is not itself a security which—
a
represents the right to, or
b
secures,
payments corresponding to a part of every payment remaining to be made under the gilt-edged security.