Commentary

E1.567 Redemption of funding bonds

Personal and employment tax

E1.567 Redemption of funding bonds

E1.567 Redemption of funding bonds

Where the issue of funding bonds1 results in a charge to tax as interest under ITTOIA 2005, s 380, any interest paid on the subsequent redemption of the funding bonds is exempt from tax2. The exemption also applies where the deemed interest on the funding bond was charged to corporation tax, but on redemption, the bond was held by an income tax payer3.

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