Section 674 | Meaning of “the settlement day”

(1)For the purposes of this Chapter the settlement day for a transfer of securities in accordance with the rules of a recognised market is—

(a)the day on which the transferee agrees to settle, or

(b)if the transferee may settle on one of a number of days, the day on which settlement actually occurs.

(2)The settlement day for a transfer of securities which is not in accordance with such rules is determined in accordance with subsection (3), (4) or (6) (and see also section 649(6): settlement day where new securities issued with extra return).

(3)If—

(a)the consideration for the transfer is money alone, and

(b)the transferee agrees to pay the whole of it on or before the first interest payment day after an agreement for the transfer is made,

the settlement day is the day on which the transferee agrees to make the payment or, if payment may be made on one of a number of days, or on a number of different days, the latest of them.

(4)If—

(a)there is no consideration for the transfer, or

(b)the transfer is a transfer because of a provision specified in subsection (5),

the settlement day is the day on which the securities are transferred.

(5)The provisions are—

section 620(1)(b) or (c) (conversion, or redemption of variable rate securities),

section 648(1) or (3) (exchanges relating to strips of gilt-edged securities),

section 650 (trading stock appropriations etc),

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

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

(6)If neither subsection (3) nor (4) applies, the settlement day is such day as an officer of Revenue and Customs decides.

(7)On any appeal that is notified to the tribunal, the jurisdiction of the tribunal includes jurisdiction to affirm or replace such a decision.^F1