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Legislation
Income Tax Act 2007

Crossheading Transfers to which Chapter applies

  • Section 620 Transactions which are transfers: general
  • Section 621 Transferors and transferees
  • Section 622 Application of Chapter to different kinds of transfer
  • Section 623 Transfers with accrued interest
  • Section 624 Transfers without accrued interest
  • Section 625 Transfers with unrealised interest
  • Section 626 Transfers of variable rate securities
  • Section 627 Meaning of “variable rate securities”
  1. Transfers to which Chapter applies
  2. Meaning of “variable rate securities”

Section 627 | Meaning of “variable rate securities”

From legislation.gov.uk

(1)For the purposes of this Chapter securities are “variable rate securities” unless their terms of issue provide that throughout the period from issue to redemption (whenever redemption might occur) they are to carry interest at a rate which falls into one, and one only, of the categories specified in subsection (2).

(2)The categories are—

(a)a fixed rate which is the same throughout the period,

(b)a rate which bears the same fixed relationship to a standard published base rate throughout the period, and

(c)a rate which bears the same fixed relationship to a published index of prices throughout the period.

(3)In subsection (2) “published index of prices” means the retail prices index or any similar general index of prices which is published by the government of any territory outside the United Kingdom or by an agent of such a government.

(4)In determining whether new securities (within the meaning of section 649 (new securities issued with extra return)) are variable rate securities, the interest payable on them on the first interest payment day after their issue is treated as payable in respect of the period beginning with the relevant period and ending with that day.

(5)In subsection (4) “the relevant period” has the meaning given by section 649(8).

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