# Finance Act 1990, Paragraph 26

Extent: E+W+S+N.I.

(1) Schedule 4 to the Taxes Act 1988 (deep discount securities) shall be amended as follows.
(2) In paragraph 1 (interpretation) the following sub-paragraph shall be inserted after sub-paragraph (1)—
“(1A) Notwithstanding anything in sub-paragraph (1) above, for the purposes of this Schedule a security is not a deep discount security if—
(a) it was issued by a company on or after 1st August 1990, and
(b) under the terms of issue it can be converted into share capital in a company (whether or not the company is the one which issued the security).”
(3) The following shall be inserted after paragraph 20—
“ Convertible securities: special rules
21 In a case where—
(a) a security is a qualifying convertible security, for the purposes of Schedule 10 to the Finance Act 1990, at the time of its issue, and
(b) apart from this paragraph it would be a deep discount security at that time,
the security shall be treated, at the time of its issue and at all subsequent times, as not being a deep discount security.”

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Source: https://www.legislation.gov.uk/ukpga/1990/29/schedule/10/paragraph/26 (the official version)
Page: https://openlegislation.uk/finance-act-1990/schedule-10/paragraph-26
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.