Commentary

E1.410 Interest—funding bonds

Personal and employment tax

E1.410 Interest—funding bonds

E1.410 Interest—funding bonds

The issue of funding bonds to a creditor in respect of a liability to pay interest on a debt incurred by a government, public institution, other public authority or body corporate is treated as a payment of so much of that interest as is equal to the market value of the bonds1.

'Funding bonds' include any bonds, stocks, shares, securities or certificates of indebtedness, but specifically does not include any instrument where payment is in kind2.

The rules in ITTOIA 2005, s 380 apply in relation to alternative finance arrangements (see A1.301)

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