CG54210 | Qualifying corporate bonds: relevant discounted securities: meaning

FA96/SCH13/PARA3

A relevant discounted security is a security, whenever issued, where

• taking the security as at the time of issue, and

• assuming redemption in accordance with its terms,

the amount payable on redemption is, or might be, an amount which would involve a `deep gain'.

FA96/SCH13/PARA3 (2)

Certain assets are specifically not relevant discounted securities. These are

• shares in a company

• life assurance policies

• capital redemption policies

• excluded indexed securities, see CG54215+

• gilt-edged securities, other than gilt strips, see CG54224

• certain securities issued under a prospectus, see CG54227.

For advice on what is or might constitute a deep gain, see IM1538+.