Commentary

E1.432 Profits from deeply discounted securities

Personal and employment tax

E1.432 Profits from deeply discounted securities

Profits from deeply discounted securities

E1.432 Profits from deeply discounted securities

A security is issued at a discount if the amount payable on redemption exceeds the issue price. Division D9.5 describes a charge to income tax on profits on a disposal of deeply discounted securities, ie where the discount exceeds a specified proportion of the amount payable on redemption. The relevant legislation is contained in ITTOIA 2005, Pt 4, Ch 8 (ss 427–460).

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