[SAIM2520] SAIM2520 – Interest: sale of interest rights: disposal of deposit rights: the legislation
Interest: sale of interest rights: disposal of deposit rights: the legislation
The charge to tax
ITTOIA/S551 charges profits or gains from the disposal of deposit rights. As deposit rights consist of the right to receive interest and the right to the return of the principal amount, subsection (2) makes clear that receiving the principal amount is a disposal of rights for the purposes of the charge to tax but receiving interest is not. Such interest is taxable under Chapter 2 of Part 4.