Part 5Loan Relationships
Chapter 12Special rules for particular kinds of securities
Deeply discounted securities: connected companies and close companies
406Introduction
(1)
The following sections deal with deeply discounted securities—
F1(a)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)
sections 409 to 411 (deeply discounted securities of close companies), and
(c)
section 412 (persons indirectly standing in the position of creditor).
(2)
In this section and sections F2409 to 412 “deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) (see section 430 of that Act).
(3)
In sections F3409 to 412 “the discount” means the difference between—
(a)
the issue price of the security, and
(b)
the amount payable on redemption.
(4)
The provisions of Chapter 8 of Part 4 of ITTOIA 2005 apply for the purposes of this section and sections F4409 to 412 for determining the difference between the issue price of a security and the amount payable on redemption as they apply for the purposes of section 430 of that Act.