Commentary

D9.427 Conversion of securities

Corporate tax
Corporate tax | Commentary

D9.427 Conversion of securities

Corporate tax | Commentary

D9.427 Conversion of securities

A conversion of securities means a conversion within TCGA 1992, s 132 (see D6.211). Under the accrued income scheme, it is a transfer of securities taking place on the day of conversion1. An interest period is treated as ending on the day on which it would have ended but for the conversion2.

If the holder (deemed to be a transferor) would have been entitled to the next payment of interest but for the conversion, he is treated as transferring them cum-div3. If he would not have been entitled to the next payment of interest but for the

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