Part 12Accrued income profits
Chapter 2Accrued income profits and losses
Relief for losses
637Accrued income losses treated as payments in next interest period
1
This section applies if—
a
a person is treated as making accrued income losses in an interest period as a result of transfers of securities, and
b
the period does not end with an interest payment day.
2
For the purposes of this Chapter the person is treated as making a payment on a transfer of the securities in the next interest period equal to the amount of the losses.
3
For cases where the period does end with an interest payment day, see sections 678 to 680 (exemptions for interest on securities involving accrued income losses).