Related Commentary  Related HMRC Manuals

401(1)  This section applies if a loan relationship is represented by–

(a)a strip of a gilt-edged security, or

(b)any other gilt-edged security.

401(2)  Subsections (3) and (4) apply if a person exchanges a gilt-edged security for strips of that security.

401(3)  The security is treated as having been redeemed at the time of the exchange by the payment to that person of its market value.

401(4)  The person is treated as having acquired each strip for an amount equal to–

A × B


A is the market value of the security at the time of the exchange,

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