Part 12

Accrued income profits
Chapter 2

Accrued income profits and losses

The payments treated as made on transfers

Payment on transfer with unrealised interest
634
1
In the case of a transfer of securities with unrealised interest where the settlement day falls within an interest period, for the purposes of this Chapter a payment is treated as made to the transferor in that period.
2
The amount of the payment is equal to the unrealised interest.
3
Subsection (2) is subject to section 660 (transfers with unrealised interest: interest in default).
4
No one is treated as making the payment.
5
Accordingly, the payment is not brought into account in determining whether the transferee is treated as making accrued income profits or losses under section 628.
6
But see section 681 (exemption for unrealised interest received by transferee after transfer).
7
See section 630 for the rules that apply to transfers of securities with unrealised interest where the settlement day falls outside an interest period.