Income Tax Act 2007

639 Small holdings: individuals

(1) In relation to a transfer with accrued interest or transfer without accrued interest, an individual is an excluded transferor or excluded transferee unless the nominal value of securities held by the individual exceeds £5,000 on any day—

(a) in the tax year in which the interest period ends, or

(b) in the previous tax year.

(2) In relation to a transfer with unrealised interest, an individual is an excluded transferor or excluded transferee unless the nominal value of securities held by the individual exceeds £5,000 on any day—

(a) in the tax year in which the settlement day falls, or

(b) in the previous tax year.

(3) In relation to a transfer of variable rate securities, an individual is an excluded transferor unless the nominal value of securities held by the individual exceeds £5,000 on any day in the relevant tax year or the previous tax year.

(4) In subsection (3) “the relevant tax year” means—

(a) if the settlement day falls in an interest period, the tax year in which the interest period ends, or

(b) otherwise, the tax year in which the settlement day falls.

(5) For the purposes of this section, if—

(a) an individual holds securities at a particular time, and

(b) any interest on them which became payable at that time would be treated for income tax purposes as part of another individual’s income,

each of those individuals is treated as holding at that time the securities which the other holds, as well as those which that individual actually holds.