Part 4

Savings and investment income
Chapter 8

Profits from deeply discounted securities

Deeply discounted securities

Securities issued in separate tranches: basic rule
435
1
The rule in this section is that if securities in any of the issues made on separate occasions under the same prospectus are not deeply discounted securities, securities in any later issue under it are not deeply discounted securities, unless they are treated as such for one of the reasons specified in subsection (2).
2
The reasons are—
a
that the securities were issued to a person connected with the issuer and so fail to meet the condition specified in section 431(2)(b), and
b
that such a person has acquired or become the holder of the securities and so section 431(5) applies to them.
Pt. 4 Ch. 8 applied (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 406(4), 1329(1) (with Sch. 2 Pts. 1, 2)