HMRC internal manual

Capital Gains Manual

CG54216 - Qualifying corporate bonds: relevant: excluded indexed securities

Excluded indexed securities are prevented from being relevant discounted securities because their value will reflect the value of the shares or other assets to which they are linked. Only amounts relating to interest are brought into the income regime. Any profits or losses on a redemption or other disposal remain to be dealt with under capital gains rules. These rules are, however, modified to ensure that gains or losses on these debts will normally be chargeable gains, or allowable losses, see CG54217+.