Finance Act 2010 Explanatory Notes

Summary

1.Section 41 and Schedule 14 ensure that companies and groups that hold index-linked gilt-edged securities (ILGs) will not be able to benefit from the tax exemption relating to any increase in the carrying value of the ILGs, to the extent that the company or group is not exposed to the inflationary aspect of holding an ILG because of the existence of a linked hedging arrangement.

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