95 Gilt strips.U.K.
(1)This section has effect for the purposes of the application of an authorised accruals basis of accounting as respects a loan relationship represented by a gilt-edged security or a strip of a gilt-edged security.
(2)Where a gilt-edged security is exchanged by any person for strips of that security—
(a)the security shall be deemed to have been redeemed at the time of the exchange by the payment to that person of its market value; and
(b)that person shall be deemed to have acquired each strip for the amount which bears the same proportion to that market value 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)Where strips of a gilt-edged security are consolidated into a single gilt-edged security by being exchanged by any person for that security—
(a)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; and
(b)that person shall be deemed to have acquired the security received in the exchange for the amount equal to the aggregate of the market values of the strips given in exchange for the security.
(4)References in this section 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.
(5)Without prejudice to the generality of any power conferred by section 202 below, the Treasury may by regulations make provision for the purposes of this section as to the manner of determining the market value at any time of any gilt-edged security (including any strip).
(6)Regulations under subsection (5) above may—
(a)make different provision for different cases; and
(b)contain such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.
(7)In this section “strip” means anything which, within the meaning of section 47 of the M1Finance Act 1942, is a strip of a gilt-edged security.
Marginal Citations