SCHEDULES
SCHEDULE 4DEEP DISCOUNT SECURITIES
Charge to tax after acquisition of certain securities
3
1
Where a person acquires a chargeable security, the chargeable amount shall be treated as income chargeable to tax under Case III or IV (as the case may be) of Schedule D on each of the following occasions—
a
the end of each income period to fall within the period of ownership;
b
the end of any income period which ends but does not begin in the period of ownership.
2
In sub-paragraph (1) above “the chargeable amount” means—
a
where paragraph (a) applies, an amount equal to the income element for the income period;
b
where paragraph (b) applies, an amount equal to the income element for the part of the income period falling within the period of ownership.
3
The income chargeable shall (notwithstanding anything in sections 64 to 67) be taken into account in computing tax charged for the year of assessment in which the occasion concerned occurs.