Income Tax Act 2007 (c. 3)

Part 12 U.K. Accrued income profits

Chapter 2 U.K. Accrued income profits and losses

The payments treated as made on transfers U.K.

634 Payment on transfer with unrealised interest U.K.

(1) In the case of a transfer of securities with unrealised interest where the settlement day falls within an interest period, for the purposes of this Chapter a payment is treated as made to the transferor in that period.

(2) The amount of the payment is equal to the unrealised interest.

(3) Subsection (2) is subject to section 660 (transfers with unrealised interest: interest in default).

(4) No one is treated as making the payment.

(5) Accordingly, the payment is not brought into account in determining whether the transferee is treated as making accrued income profits or losses under section 628.

(6) But see section 681 (exemption for unrealised interest received by transferee after transfer).

(7) See section 630 for the rules that apply to transfers of securities with unrealised interest where the settlement day falls outside an interest period.