Commentary

D9.414 Transfers with unrealised interest

Corporate tax
Corporate tax | Commentary

D9.414 Transfers with unrealised interest

Corporate tax | Commentary

D9.414 Transfers with unrealised interest

Special rules apply where securities are transferred with the right to receive a particular payment of interest, but the interest is due before settlement day. This can happen where bearer securities are issued with separate coupons and the transferor has not presented the coupons for payment. The interest included in the transfer is called unrealised interest1. As regards unrealised interest in default, see D9.447.

Where the settlement day falls within an interest period (ie where the security continues to bear interest), the transferor is deemed to receive a payment in that period equal to the unrealised

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