Section 648 Strips of gilt-edged securities

(1)

The exchange of a gilt-edged security for strips of that security is treated for the purposes of this Chapter as a transfer of the security by the person who exchanges the security.

(2)

But no one is treated as the transferee.

(3)

The exchange of strips of a gilt-edged security for a single gilt-edged security consolidating those strips is treated for the purposes of this Chapter as a transfer of the single security to the person who exchanges those strips.

(4)

But no one is treated as the transferor.

(5)

An exchange within subsection (1) or (3) is treated as a transfer without accrued interest if it is made at any time after the balance has been struck for a dividend on the security but before the day on which that dividend is payable.

(6)

In any other case, such an exchange is treated as a transfer with accrued interest.

(7)

If an exchange is treated as a transfer under subsection (1) or (3), any transaction forming part of the exchange is not itself a transfer for the purposes of this Chapter.

(8)

In this section “strip” has the meaning given by section 444 of ITTOIA 2005.

(9)

For the meaning of “gilt-edged security”, see section 1024.