Part 12Accrued income profits
Chapter 2Accrued income profits and losses
Transfers to which Chapter applies
623Transfers with accrued interest
1
The general rule is that securities are transferred with accrued interest for the purposes of this Chapter if they are transferred with the right to receive interest payable—
a
in a case where the settlement day is an interest payment day, on the settlement day, and
b
in any other case, on the first interest payment day after the settlement day.
2
But, in the case of the transfers specified in subsection (3), subsection (4) applies instead of subsection (1).
3
The transfers are those treated as made under—
a
section 620(1)(b) (conversion),
b
section 650 (trading stock appropriations etc),
c
section 651 (owner becoming entitled to securities as trustee), and
d
section 652 (securities ceasing to be held on charitable trusts).
4
If the person treated as the transferor had the right to receive interest payable as mentioned in subsection (1)(a) or (b), the securities are treated as transferred with accrued interest.
5
This section is subject to section 626 (transfers of variable rate securities).
6
See also—
section 648(6) (certain exchanges of strips treated as transfers with accrued interest), and
section 649(4) (issue of new securities with extra return treated as transfer with accrued interest).