Section 406 — Corporation Tax Act 2009: Introduction

Introduction 406 1 The following sections deal with deeply discounted securities—

a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b sections 409 to 411 (deeply discounted securities of close companies),

and c section 412 (persons indirectly standing in the position of creditor).

2 In this section and sections 409 to 412 “ deeply discounted security ” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) (see section 430 of that Act).

3 In sections 409 to 412 “ the discount ” means the difference between—

a the issue price of the security, and b the amount payable on redemption.

4 The provisions of Chapter 8 of Part 4 of ITTOIA 2005 apply for the purposes of this section and sections 409 to 412 for determining the difference between the issue price of a security and the amount payable on redemption as they apply for the purposes of section 430 of that Act.