Part 12Accrued income profits
Chapter 2Accrued income profits and losses
Special rules about some calculations
663Transfers without accrued interest to makers of manufactured payments
1
This section applies if—
a
the manufactured payments conditions are met (see section 647(2)), and
b
the nominal value of the securities subject to the seller's contract is less than that of the securities transferred to the seller.
2
The amount of the payment treated as made to the seller under section 633 on the transfer of the securities to the seller is reduced.
3
The reduction is by so much of that amount as is attributable to securities (“the matched securities”) of a nominal value equal to that of the securities subject to the seller's contract.
4
If there is more than one transfer of securities to the seller, those transferred to the seller earlier are treated as the matched securities before those transferred later.
5
In this section “the seller” and “the seller's contract” have the same meaning as in section 647.
6
For cases where subsection (1)(b) does not apply, see section 647(3) (under which the seller is treated as an excluded transferee).