A4.423 Funding bonds

A4.423 Funding bonds

Funding bonds may be issued in satisfaction of a liability to pay interest on money borrowed by any government, public authority or public institution or by any body corporate1. Note that references to interest include references to alternative finance return or profit share return2.

Such an issue is treated as if it was a payment of an amount of interest equal to the value of the bonds at the time of their issue; the redemption of the bonds is not treated as the payment of any amount of that interest3.

Where a person by or through whom the bonds

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