PART XVII TAX AVOIDANCE
CHAPTER II TRANSFERS OF SECURITIES
Purchase and sale of securities
732 Dealers in securities.
M11
Subject to the provisions of this section, if the first buyer is engaged in carrying on a trade which consists of or comprises dealing in securities, then, in computing for any of the purposes of the Tax Acts the profits arising from or loss sustained in the trade, the price paid by him for the securities shall be reduced by the appropriate amount in respect of the interest, as determined in accordance with section 735.
F51A
Subsection (1) above shall not apply if the interest receivable by the first buyer falls to be taken into account F10either—
a
by virtue of section 366(1) of ITTOIA 2005 in computing profits chargeable to income tax under Chapter 2 of Part 2 of that Act, or
b
by virtue of section 95(1) of this Act in computing profits chargeable to corporation tax in accordance with the provisions of this Act applicable to Case I or II of Schedule D.
2
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F12A
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Subsection (1) above shall not apply if the securities are overseas securities bought by the first buyer F7. . . in the ordinary course of his trade as a dealer in securities and the following conditions are satisfied, namely—
a
the interest is brought into account in computing for the purposes of the Tax Acts the profits arising from or loss sustained in the trade, and
b
where credit against tax would fall to be allowed in respect of the interest under section 788 or 790, the first buyer elects that credit shall not be so allowed.
F8In this subsection “overseas securities” means securities issued—
a
by a government or public or local authority of a territory outside the United Kingdom; or
b
by any other body of persons not resident in the United Kingdom.
5
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F25A
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F37
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .