CG54210 - Qualifying corporate bonds: relevant discounted securities: meaning
FA96/SCH13/PARA3
A relevant discounted security is a security, whenever issued, where
- taking the security as at the time of issue, and
- assuming redemption in accordance with its terms,
the amount payable on redemption is, or might be, an amount which would involve a `deep gain'.
FA96/SCH13/PARA3 (2)
Certain assets are specifically not relevant discounted securities. These are
- shares in a company
- life assurance policies
- capital redemption policies
- excluded indexed securities, see CG54215+
- gilt-edged securities, other than gilt strips, see CG54224
- certain securities issued under a prospectus, see CG54227.
For advice on what is or might constitute a deep gain, see IM1538+.