Paragraph 22A

United Kingdom

(1)

Sub-paragraph (2) below applies where—

(a)

a security is a qualifying convertible security, for the purposes ofSchedule 10 to the Finance Act 1990, at the time of its issue,

(b)

apart from paragraph 21 of Schedule 4 to the Taxes Act 1988, it would bea deep discount security at that time, and

(c)

at a later time it ceases to be a qualifying convertible security for thepurposes of Schedule 10 to the Finance Act 1990.

(2)

As regards any event occurring in relation to the security after the timementioned in sub-paragraph (1)(c) above, paragraphs 5 to 19 above shall haveeffect as if—

(a)

the security were a deep gain security, and

(b)

it had been acquired as such (whatever the time it was acquired).

(3)

For the purposes of sub-paragraph (2) above events, in relation to asecurity, include anything constituting a transfer or acquisition for thepurposes of this Schedule.

Notes on Schedule 11

Textual amendments

F1: Sch. 11 repealed (29.4.1996) by 1996 c. 8, ss. 104, 205, Sch. 14 para. 57, Sch. 41 Pt. V(3) (with savings in Pt. IV Ch. II (ss. 80-105))

Notes on Convertible securities: special rules (1)

Textual amendments

F1: Finance Act 1990 (c. 29), s. 56, Sch. 10 paras. 27(3), 29(4)on and after 9 June 1989