380Funding bondsU.K.
(1)This section applies to the issue of funding bonds to a creditor in respect of a liability to pay interest on a debt incurred by a government, public institution, other public authority or body corporate.
(2)The issue is treated for income tax purposes as if it were the payment of so much of that interest as equals the market value of the bonds at their issue.
(3)In this section “funding bonds” includes any bonds, stocks, shares, securities or certificates of indebtedness [F1 (but does not include any instrument providing for payment in the form of goods or services or a voucher)] .
Textual Amendments
F1Words in s. 380(3) inserted (with effect in accordance with Sch. 11 para. 12(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 11 para. 7
Modifications etc. (not altering text)
C1S. 380 modified (7.4.2005) by Finance Act 2005 (c. 7), s. 55, Sch. 2 para. 10
C2S. 380 modified (1.4.2010) by Income Tax Act 2007 (c. 3), s. 564M(2) (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 14(2) (with Sch. 9 paras. 1-9, 22))