Income Tax (Trading and Other Income) Act 2005

Finance Act 1996 (c. 8) U.K.

485 U.K. The Finance Act 1996 is amended as follows.

486 U.K. In section 92(1) (convertible securities etc: creditor relationships) for paragraph (d) substitute—

“(d) the asset is not a deeply discounted security for the purposes of Chapter 8 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (see section 430) or an excluded indexed security within the meaning of section 433 of that Act;”.

487 U.K. Omit section 102 (discounted securities: income tax provisions).

488 (1) Amend section 154 (FOTRA securities) as follows. U.K.

(2) In subsection (2)—

(a) for “(3) to” substitute “ (3) and ”, and

(b) at the end insert— “ This does not apply to any charge to income tax (but see sections 714 and 715 of the Income Tax (Trading and Other Income) Act 2005 for exemptions from income tax charges). ”

(3) Omit subsection (4).

(4) In subsection (6) omit “income tax or”.

489 (1) Amend Schedule 9 (loan provisions: special computational provisions) as follows. U.K.

(2) In the italic cross-heading before paragraph 17 for “Discounted” substitute “ Deeply discounted ”.

(3) In paragraph 17(1)(a) for “relevant” substitute “ deeply ”.

(4) For paragraph 17(4) substitute—

“(4) In this paragraph “deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (see section 430); and the provisions of that Chapter shall apply for the purposes of this paragraph for determining the difference between the issue price of a security and the amount payable on redemption as they apply for the purposes of section 430 of that Act.”

(5) In paragraph 17(8) and (8A) for “relevant” substitute “ deeply ”.

(6) In the italic cross-heading before paragraph 18 for “Discounted” substitute “ Deeply discounted ”.

(7) In paragraph 18(1)(a), (2C) and (2D) for “relevant” substitute “ deeply ”.

(8) For paragraph 18(3) substitute—

“(3) In this paragraph “deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (see section 430); and the provisions of that Chapter shall apply for the purposes of this paragraph for determining the difference between the issue price of a security and the amount payable on redemption as they apply for the purposes of section 430 of that Act.”

(9) In paragraph 19(13) for “relevant” substitute “ deeply ”.

490 U.K. Omit Schedule 13 (discounted securities: income tax provisions).

491 (1) Amend Schedule 15 (loan relationships: savings and transitional provisions) as follows. U.K.

(2) In paragraph 26(2) for the definition of “relevant discounted security” substitute—

““deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (see section 430)”.

(3) In paragraph 28(b) for “Schedule 13 to this Act” and “relevant” substitute respectively “ Chapter 8 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (profits from deeply discounted securities) ” and “ deeply ”.

(4) In paragraph 30(1)(c) for “relevant” substitute “ deeply ”.