Section 624 | Transfers without accrued interest

(1)The general rule is that securities are transferred without accrued interest for the purposes of this Chapter if they are transferred without the right to receive interest payable as mentioned in section 623(1)(a) or (b).

(2)But, in the case of the transfers specified in subsection (3), subsection (4) applies instead of subsection (1).

(3)The transfers are those treated as made under—

(a)section 620(1)(b) (conversion),

(b)section 650 (trading stock appropriations etc),

(c)section 651 (owner becoming entitled to securities as trustee), and

(d)section 652 (securities ceasing to be held on charitable trusts).

(4)If the person treated as the transferor did not have the right to receive interest payable as mentioned in section 623(1)(a) or (b), the securities are treated as transferred without accrued interest.

(5)This section is subject to section 626 (transfers of variable rate securities).

(6)See also section 648(5) (certain exchanges of strips treated as transfers without accrued interest).