Commentary

D9.521 Acquisitions and disposals of strips

Corporate tax
Corporate tax | Commentary

D9.521 Acquisitions and disposals of strips

Corporate tax | Commentary

D9.521 Acquisitions and disposals of strips

When a person exchanges a government security for strips of that security, he is deemed to pay for each strip1

where:

  1.  

         A is the market value of the security at the time of the exchange;

  2.  

         B is the market value of the strip at that time; and

  3.  

         C is the total of the market values at that time of all the strips received in the exchange.

Where a person holds a strip on 5 April in any tax year, unless he actually disposes of it on that day, he is deemed to dispose

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