dd

“a deep discount security” also means any redeemable security which has been issued by a public body (at whatever time) at a deep discount, other than—

i

a security such as is mentioned in paragraph (d)(ii) above;

ii

a security falling within sub-paragraph (5), (6) or (7) below;

• This sub-paragraph applies only in the case of securities issued by a company.

4

For the purposes of this Schedule a public body is any of the following which is not a company—

a

a government, whether of the United Kingdom or elsewhere;

b

a public or local authority, whether in the United Kingdom or elsewhere.

5

A security falls within this sub-paragraph if it is a gilt-edged security and—

a

it was issued before 14th March 1989, or

b

it was issued on or after that date but was issued under the same prospectus as any gilt-edged security issued before that date.

6

A security falls within this sub-paragraph if it is a gilt-edged security and—

a

it was issued under a prospectus under which no securities were issued before 14th March 1989,

b

it was issued otherwise than on the occasion of the original issue under the prospectus, and

c

all the securities issued on the occasion of the original issue under the prospectus are gilt-edged securities which are not deep discount securities.

7

A security falls within this sub-paragraph if it is not a gilt-edged security and was issued (at whatever time) under the same prospectus as any other security which was issued before the security in question and which is not a deep discount security.

8

For the purposes of this Schedule “gilt-edged security” has the same meaning as it has for the purposes of the 1979 Act.