# Income Tax Act 2007, Section 638: Excluded persons: disregard of certain payments and transfers


(1) This section applies if there is a transfer of securities in relation to which a person (“P”) is an excluded transferor or excluded transferee.
(2) In determining whether P has made accrued income profits or accrued income losses under section 628 (making accrued income profits and losses: general rule) and the amount of any such profits or losses, no account is to be taken of any payment treated as made by or to P on the transfer.
(3) In determining whether P has made accrued income profits under section 630 (making accrued income profits: settlement day outside interest period) and the amount of any such profits, no account is to be taken of the transfer if P is an excluded transferor in relation to it.
(4) For the cases where a person is an excluded transferor or excluded transferee in relation to a transfer, see—
section 639 (small holdings: individuals),
section 640 (small holdings: personal representatives),
section 641 (small holdings: trustees of a disabled person's trusts),
section 642 (traders),
section 643 (non-residents),
section 644 (individuals to whom the remittance basis applies),
section 645 (charitable trusts etc),
section 646 (pension scheme trustees), and
section 647 (makers of manufactured payments).
(5) Whether a person is an excluded transferee is also relevant to the application of section 681 (exemption for unrealised interest received by transferee after transfer).

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Source: https://www.legislation.gov.uk/ukpga/2007/3/section/638 (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/section-638
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.