Income Tax Act 2007

198 (1) Amend section 807 (sale of securities with or without accrued interest) as follows. U.K.

(2) In subsection (1)(a) for “section 714(2) as receiving annual profits or gains on the day an interest period ends” substitute “ section 628(5) of ITA 2007 as making accrued income profits in an interest period ”.

(3) In subsection (1)(b) for “chargeable period in which the day falls” substitute “ tax year in which the accrued income profits are treated as made by virtue of section 617(2) of that Act ”.

(4) In the full-out words of subsection (1)—

(a) for “profits or gains”, in each place where it occurs, substitute “ accrued income profits ”, and

(b) omit “or corporation tax”.

(5) In subsection (2)(b) for “which is treated as reduced by virtue of section 714(5)” substitute “ as respects which the person is entitled to an exemption from liability to income tax under section 679 of ITA 2007 ”.

(6) In subsection (2) for “R is the amount by which it is treated as reduced” substitute “ R is the amount of the exemption ”.

(7) For subsection (5) substitute—

“(5) Expressions used in this section and in Chapter 2 of Part 12 of ITA 2007 (accrued income profits) have the same meaning as in that Chapter.”

(8) Omit subsection (6).