Part 4Savings and investment income

Chapter 8Profits from deeply discounted securities

Special rules for strips of government securities

450Market value of strips etc.

1

This section and section 451 (market value of strips etc. quoted in foreign stock exchange lists) deal with—

a

determining the market value at any time of a strip for the purposes of this Chapter, and

b

determining the market value at any time of a security exchanged for strips of that security for the purposes of section 445(1).

2

The market value on any day on which the Stock Exchange is open of any strip or security quoted in The Stock Exchange Daily Official List is—

a

the lower of the two figures shown in that List for the strip or security for that day, plus

b

one-quarter of the difference between those two figures.

3

The market value on any day on which the Stock Exchange is closed of any such strip or security is the lower of—

a

its market value on the latest previous day on which the Stock Exchange is open, and

b

its market value on the earliest subsequent day on which the Stock Exchange is open.

4

The Treasury may by regulations make provision as to the manner of determining, for any of the purposes mentioned in subsection (1), the market value at any time of—

a

any strip, or

b

any security exchanged for strips of that security.

5

The regulations may amend or modify—

a

subsection (2) or (3), or

b

any provision of section 451.

6

The regulations may—

a

make different provision for different cases, and

b

contain such incidental, supplemental, consequential and transitional provision and savings as the Treasury consider appropriate.