M1(1)This section applies to securities other than securities falling within subsection (2) F1. . . below.
(2)Securities fall within this subsection if their terms of issue provide that throughout the period from issue to redemption (whenever redemption might occur) they are to carry interest at a rate which falls into one, and one only, of the following categories—
(a)a fixed rate which is the same throughout the period;
(b)a rate which bears to a standard published base rate the same fixed relationship throughout the period;
(c)a rate which bears to a published index of prices the same fixed relationship throughout the period.
(3)In subsection (2)(c) above “published index of prices” means the retail prices index or any similar general index of prices which is published by, or by an agent of, the government of any territory outside the United Kingdom.
(4)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)Subsections (7) to (11) below apply if securities to which this section applies are transferred at any time between the time they are issued and the time they are redeemed.
(7)If the securities are transferred without accrued interest they shall be treated for the purposes of sections 710 to 728 as transferred with accrued interest.
(8)The person entitled to the securities immediately before they are redeemed shall be treated for the purposes of those sections as transferring them with accrued interest on the day they are redeemed.
(9)Where there is a transfer as mentioned in subsection (6) above or by virtue of subsection (8) above, section 713 shall have effect with the omission of subsection (2)(b) and with the substitution for subsections (3) to (6) of the following subsection—
“(3)In subsection (2) above “the accrued amount” means such amount (if any) as [F3is just and reasonable].”.
(10)Subsection (11) below applies where there is a transfer by virtue of subsection (8) above and the settlement day in relation to the transfer falls after the end of a period which would (by virtue of section 711(3) and (4) and apart from this subsection) be the only or last interest period in relation to the securities.
(11)For the purposes of sections 710 to 728 the period beginning with the day following that interest period and ending with the settlement day shall be treated as an interest period in relation to the securities; and section 711(4) shall not apply to it.
Textual Amendments
F1Words in s. 717(1) repealed (31.7.1998) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(22)
F2S. 717(4)(5) repealed (31.7.1998) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(22)
F3Words in s. 717(9) substituted (with effect in accordance with s. 134(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 20 para. 35
Modifications etc. (not altering text)
C1Ss. 710-728 modified (27.7.1993) by 1993 c. 34, s. 63(1)(2)
Ss. 710-728 modified (27.7.1993) by 1993 c. 34, s. 63(3)(4)
Ss. 710-728 modified (27.7.1993) by 1993 c. 34, s. 63(8)(10)
Ss. 710-728 modified (27.7.1993 with effect for the year 1992-93 and subsequent years of assessment) by 1993 c. 34, ss. 176(4), 184(3)
C2Ss. 710-728 modified (with effect in accordance with s. 105(1) of the modifying Act) by Finance Act 1996 (c. 8), Sch. 13 para. 11 (with Sch. 13 para. 16, Sch. 15)
C3Ss. 711-728 modified (31.7.1998) by Finance Act 1998 (c. 36), s. 161(2)(a) (with s. 161(7))
C4S. 717 excluded (1.1.1999) by The European Single Currency (Taxes) Regulations 1998 (S.I. 1998/3177), regs. 1, 33(2)
Marginal Citations
M1Source—1985 Sch.23 15A, 15B, 15C; 1986 Sch.17 3