Section 152 | Consolidation of gilt strips

(1)This section applies for the purpose of calculating the profits of a trade if—

(a)strips of a gilt-edged security are consolidated into a single security by being exchanged by the person carrying on the trade (“the trader”) for the single security, and

(b)a profit on the sale of any of the strips would be brought into account in calculating the profits of the trade.

(2)Each strip is treated as having been redeemed at the time of the exchange by payment to the trader of its market value.

(3)The trader is treated as having acquired the gilt-edged security for an amount equal to the total of the market values of the strips given in exchange.

(4)In this section references to market value are to market value at the time of the exchange.

(5)This section applies to professions and vocations as it applies to trades.

(6)See also—

section 153 (meaning of “gilt-edged security” and “strip”), and

section 154 (regulations for determining market value of securities or strips).