Regulation 35 Treatment of capital sum receivable on euroconversion of securities

(1)

This regulation applies in a case where—

(a)

otherwise than as a result of a transfer of securities that is not an exchange or conversion of securities to which regulation 32 applies, a person becomes entitled in an interest period to a capital sum in connection with a euroconversion of securities, and

(b)

any part of that sum is, on a just and reasonable view—

(i)

attributable to a reduction in the interest payable on those securities, or

(ii)

by way of compensation for a deferral of the interest payable on those securities.

(2)

The person entitled to a capital sum in an interest period as mentioned in paragraph (1)(a) shall be regarded as entitled in that interest period to a sum on the securities, for the purposes of section 713(2)(a) or (3)(a), in an amount equal to the part of the sum referred to in paragraph (1)(b).