Part 2Trading income
Chapter 11Trade profits: other specific trades
Dealers in securities etc.
152Consolidation of gilt strips
1
This section applies for the purpose of calculating the profits of a trade if—
a
strips of a gilt-edged security are consolidated into a single security by being exchanged by the person carrying on the trade (“the trader”) for the single security, and
b
a profit on the sale of any of the strips would be brought into account in calculating the profits of the trade.
2
Each strip is treated as having been redeemed at the time of the exchange by payment to the trader of its market value.
3
The trader is treated as having acquired the gilt-edged security for an amount equal to the total of the market values of the strips given in exchange.
4
In this section references to market value are to market value at the time of the exchange.
5
This section applies to professions and vocations as it applies to trades.
6
See also—
section 153 (meaning of “gilt-edged security” and “strip”), and
section 154 (regulations for determining market value of securities or strips).