Finance Act 1996

[F1 Strips of government securities] U.K.

Textual Amendments

F1 Sch. 13 para. 14 heading substituted (with effect in accordance with Sch. 39 para. 6(1)(c) of the amending Act) by Finance Act 2003 (c. 14), Sch. 39 para. 5(3)(a)

14 (1) Every strip is a relevant discounted security for the purposes of this Schedule. U.K.

(2) For the purposes of this Schedule, where a person exchanges a F2 ... security for strips of that security, the person who receives the strips in the exchange shall be deemed to have paid, in respect of his acquisition of each strip, the amount which bears the same proportion to the market value of the security as is borne by the market value of the strip to the aggregate of the market values of all the strips received in exchange for the security.

(3) For the purposes of this Schedule, where strips are consolidated into a single F3 ... security by being exchanged by any person for that security, each of the strips shall be deemed to have been redeemed at the time of the exchange by the payment to that person of the amount equal to its market value.

(4) A person who holds a strip on the 5th April in any year of assessment, and who (apart from this sub-paragraph) does not transfer or redeem it on that day, shall be deemed for the purposes of this Schedule—

(a) to have transferred that strip on that day;

(b) to have received in respect of that transfer an amount equal to the strip’s market value on that day; and

(c) to have re-acquired the strip on the next day on payment of an amount equal to the amount for which it is deemed to have been disposed of on the previous day;

F4 ...

(5) Without prejudice to the generality of any power conferred by section 202 of this Act, the Treasury may by regulations provide that this Schedule is to have effect with such modifications as they may think fit in relation to any relevant discounted security which is a strip.

(6) Regulations made by the Treasury under this paragraph may—

(a) make provision for the purposes of sub-paragraphs (2) to (4) above as to the manner of determining the market value at any time of any security;

(b) make different provision for different cases; and

(c) contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.

(7) References in sub-paragraphs (2) and (3) above to the market value of a security given or received in exchange for another are references to its market value at the time of the exchange.

Textual Amendments

F2 Word in Sch. 13 para. 14(2) repealed (with effect in accordance with Sch. 39 para. 6(1)(c) of the amending Act) by Finance Act 2003 (c. 14), Sch. 39 para. 5(3)(b), Sch. 43 Pt. 3(16)

F3 Word in Sch. 13 para. 14(3) repealed (with effect in accordance with Sch. 39 para. 6(1)(c) of the amending Act) by Finance Act 2003 (c. 14), Sch. 39 para. 5(3)(b), Sch. 43 Pt. 3(16)

F4 Words in Sch. 13 para. 14(4) repealed (with effect in accordance with Sch. 39 para. 6(1)(a)(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 39 para. 5(3)(c), Sch. 43 Pt. 3(16)