151UTreatment of bond-holder and bond-issuer

1

This section applies for the purposes of this Act and any other enactment about capital gains tax and irrespective of the position for other purposes.

2

The bond-holder under investment bond arrangements is not treated as having a legal or beneficial interest in the bond assets.

3

The bond-issuer under such arrangements is not treated as a trustee of the bond assets.

4

Gains accruing to the bond-issuer in connection with the bond assets are gains of the bond-issuer and not of the bond-holder (and do not arise to the bond-issuer in a fiduciary or representative capacity).

5

Payments made by the bond-issuer by way of redemption payment or additional payment are not made in a fiduciary or representative capacity.

6

The bond-holder is not entitled to relief for capital expenditure in connection with the bond assets.

7

Expressions used in this section have the same meaning as in section 151N.