New issues of securities are treated as a transfer of a security for the purposes of the accrued income scheme. Where units of a particular kind of security are issued in tranches, the price of issues other than the first will take account of the fact that the next payment of interest will include an amount accrued before the date of issue. The increase in the price (whether or not it is separately identified) is called an 'extra return' and is similar in nature to the extra price paid for the purchase of securities
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Web page updated on 17 Mar 2025 17:33