Commentary

D9.502 Meaning of 'deeply discounted security'

Corporate tax
Corporate tax | Commentary

D9.502 Meaning of 'deeply discounted security'

Corporate tax | Commentary

Definitions relating to deeply discounted securities

D9.502 Meaning of 'deeply discounted security'

A deeply discounted security ('DDS') is one which, under the terms of issue, is capable of yielding a deep discount on maturity or other form of redemption. This is determined by a formula. There is a deep discount if the amount payable on redemption exceeds the issue price by more than—

where:

  1.  

         A is the amount payable on redemption, excluding interest payable at the time of redemption; and

  2.  

         Y is the number of years in the redemption period (not exceeding 30). If the redemption period is

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