# Income Tax (Trading and Other Income) Act 2005, Section 756: Which securities and loans are foreign currency ones for section 755


(1) For the purposes of section 755, a security or loan is a foreign currency one if under its terms the currency to be used for repayment is not sterling.
(2) Subsection (1) is subject to the following qualifications.
(3) A security issued before 6th April 1982 is a foreign currency one if under its terms the currency to be used for repayment is not that of a country specified in Schedule 1 to the Exchange Control Act 1947 (c. 14) at the time of the issue of the security.
(4) A loan made before that date is a foreign currency one if under its terms the currency to be used for repayment is not that of a country specified in that Schedule at the time the loan was made.
(5) If in the case of a security there is an option as to the currency to be used for repayment, the security is only to be treated as a foreign currency one if the option is exercisable only by its holder.
(6) If in the case of a loan there is an option as to the currency to be used for repayment, the loan is only to be treated as a foreign currency one if the option is exercisable only by the person for the time being entitled to repayment or eventual repayment.

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Source: https://www.legislation.gov.uk/ukpga/2005/5/section/756 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-756
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.