http://www.legislation.gov.uk/ukpga/2007/3/section/624/notesIncome taxTaxInvestmentIncomeLegislationExplanatory Notes to Income Tax Act 2007HM Revenue and CustomsKing's Printer of Acts of Parliament2018-08-30
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2007/3" id="c00001" Class="UnitedKingdomPublicGeneralAct" Year="2007" Number="0003">Income Tax Act 2007</Citation>
3
20 March 2007
Commentary on Sections<CitationSubRef id="c02774" URI="http://www.legislation.gov.uk/id/ukpga/2007/3/part/12" CitationRef="c00001" SectionRef="part-12">Part 12</CitationSubRef>: Accrued Income ProfitsOverview<CitationSubRef id="c02788" URI="http://www.legislation.gov.uk/id/ukpga/2007/3/part/12/chapter/2" CitationRef="c02774" SectionRef="part-12-chapter-2">Chapter 2</CitationSubRef>: Accrued income profits and losses
<CitationSubRef id="c02826" URI="http://www.legislation.gov.uk/id/ukpga/2007/3/section/624" CitationRef="c00001" SectionRef="section-624">Section 624</CitationSubRef>: Transfers without accrued interest
1825
This section explains when securities are transferred “without accrued interest”. It is based on section 711(5) and (6) of ICTA.
1826
Generally, a transfer is without accrued interest when the right to interest payable at the next payment date is kept by the transferor, regardless of when in the interest period the transfer took place. The transferor gets a lower price for the securities to reflect the interest accruing after the transfer which is not received by the transferee. Certain transfers are deemed to be without accrued interest.
1827
Similarly to section 623, subsection (5) makes the section subject to section 626, which provides that variable rate securities are not treated as transferred without accrued interest.