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HMRC internal manual

Capital Gains Manual

Qualifying corporate bonds: relevant discounted securities: xitional rules

Because relevant discounted securities are QCBs, see CG54250, they will not themselves give rise to chargeable gains or allowable losses.

For some debts, any latent gain or loss up to 5 April 1996 simply becomes a part of the eventual profit or loss taken into account in the income regime when the debt is redeemed or otherwise disposed of. But there are two circumstances where a transitional charge needs to be computed, to preserve separately the chargeable gain or allowable loss which would have arisen on the debt up to 5 April 1996. These two circumstances are covered at CG54235+ and CG54240+.