Section 446 | Strips of government securities: relief for losses

(1)Relief from income tax may be claimed under this section for any loss made on the disposal of a strip of a security.

(2)If a person makes a claim under this section, the relief is given by deducting the loss in calculating the person's net income for the tax year in which the disposal occurs (see Step 2 of the calculation in section 23 of ITA 2007).

(3)For this purpose a person makes a loss on the disposal of a strip if—

(a)the person disposes of the strip, and

(b)the amount the person paid for the strip, ignoring any incidental expenses incurred in connection with the acquisition, exceeds the amount payable on the disposal, ignoring any incidental expenses incurred in connection with the disposal.

(4)The loss is an amount equal to the excess.

(5)A claim under this section must be made on or before the first anniversary of the normal self-assessment filing date for the tax year in which the disposal occurs.

(6)The relief may be claimed by the person making the disposal.

(7)Relief for a loss on a disposal may not be claimed under this section if section 454 (listed securities held since 26th March 2003: relief for losses) applies in respect of the disposal.

(8)This section is subject to—

(a)section 448 (restriction of losses on strips by reference to original acquisition cost),

(b)section 449 (strips of government securities: manipulation of acquisition, sale or redemption payments), and

(c)section 458(2) (strips held by non-UK resident trustees).