679Interest on securities involving accrued income losses: generalU.K.
(1)This section applies if—
(a)a person is liable for income tax on interest on securities of any kind which is due at the end of an interest period of the securities,
(b)in that period accrued income losses are made as a result of transfers of those securities, and
(c)the period ends with an interest payment day.
(2)No liability to income tax arises in respect of the interest to the extent that it does not exceed the losses.
(3)If, apart from this subsection, a person would be entitled to the exemption under this section in more than one tax year, the person is so entitled only in the tax year in which the interest period ends.
(4)For cases where the interest period does not end with an interest payment day, see section 637 (accrued income losses treated as payments in next interest period).