Commentary

D9.425 New issues of securities

Corporate tax
Corporate tax | Commentary

D9.425 New issues of securities

Corporate tax | Commentary

Special cases

D9.425 New issues of securities

Where units of a particular kind of security are issued in tranches, the price of issues other than the first will take account of the fact that the next payment of interest will include an amount accrued before the date of issue. The increase in the price (whether or not it is separately identified) is called an 'extra return' and is similar in nature to the extra price paid for the purchase of securities cum-div1.

The amount of the extra return is the amount of interest payable for the relevant period (see below)

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