Commentary

D9.411 Transfers with accrued interest

Corporate tax
Corporate tax | Commentary

D9.411 Transfers with accrued interest

Corporate tax | Commentary

D9.411 Transfers with accrued interest

The transferee is deemed to make an accrued income payment to the transferor in the interest period in which the settlement day falls1.

Amount of the deemed payment

Stock Exchange rules require bargains in gilts and other short-dated stocks to be conducted on a 'clean price' basis, ie where the transferee accounts to the transferor separately for the gross interest accruing from the previous interest-payment day to the settlement day; contract notes will indicate the amount of the accrued interest. Similar arrangements may be made by most overseas exchanges.

In such a case, the deemed payment is the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial