SCHEDULES

F1SCHEDULE 11

Annotations:
Amendments (Textual)
F1

Sch. 11 repealed (29.4.1996) by 1996 c. 8, ss. 104, 205, Sch. 14 para. 57, Sch. 41 Pt. V(3) (with savings in Pt. IV Ch. II (ss. 80-105))

Convertible securities: special rules (2)

22B

1

In a case where—

a

a security is a qualifying convertible security, for the purposes ofSchedule 10 to the Finance Act 1990, at the time of its issue, and

b

apart from this sub-paragraph it would be a deep gain security at thattime,

then (subject to sub-paragraph(3) below) the security shall be treated,at the time of its issue and at all subsequent times, as not being a deep gainsecurity.

2

Sub-paragraph (3) below applies where—

a

sub-paragraph (1) above applies in the case of a security, and

b

at a time after its issue it ceases to be a qualifying convertiblesecurity for the purposes of Schedule 10 to the Finance Act 1990.

3

As regards any event occurring in relation to the security after the timementioned in sub-paragraph (2)(b) above, paragraphs 5 to 19 above shall haveeffect as if—

a

the security were a deep gain security, and

b

it had been acquired as such (whatever the time it was acquired).

4

For the purposes of sub-paragraph (3)above events, in relation to asecurity, include anything constituting a transfer or acquisition for thepurposes of this Schedule.