CG54210 | Qualifying corporate bonds: relevant discounted securities: meaning
From HM Revenue & Customs · Capital Gains Manual
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+.