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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Securities: Accrued Income Scheme: transfer with accrued interest

If the securities are transferred with accrued interest or `cum div’ the transferee will receive the next interest payment. ICTA88/S713 (2)(a) treats the transferor as having received a sum equal to the accrued interest. The transferee will have paid the transferor for the accrued interest either in the price of the security or as a separately characterised amount. ICTA88/S713 (2)(b) gives the transferee relief for this sum. See IM4235 for instructions on how the Accrued Income Scheme treats these deemed sums and reliefs.