# Income Tax (Trading and Other Income) Act 2005, Section 380: Funding bonds

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

(1) This section applies to the issue of funding bonds to a creditor in respect of a liability to pay interest on a debt incurred by a government, public institution, other public authority or body corporate.
(2) The issue is treated for income tax purposes as if it were the payment of so much of that interest as equals the market value of the bonds at their issue.
(3) In this section “funding bonds” includes any bonds, stocks, shares, securities or certificates of indebtedness (but does not include any instrument providing for payment in the form of goods or services or a voucher) .

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Source: https://www.legislation.gov.uk/ukpga/2005/5/section/380 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-380
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.