E1.432 Deeply discounted securities—overview
A security is issued at a discount if the amount payable on redemption exceeds the issue price. A charge to income tax arises on the disposal of a deeply discounted security. The charge is on the full amount of the profit arising in a tax year. The profits arise when the disposal occurs1. For more details see E1.434.
Broadly, a deeply discounted security ('DDS') is one which, under the terms of issue, is capable of yielding a deep discount on maturity or other form of redemption. This is determined by a formula, see further E1.433.
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 16:08