Paragraph 21

After section 564S insert—

“Treatment as securities

564T

(1)

Investment bond arrangements are securities for the purposes of the Income Tax Acts (including Chapters 1 to 5 of Part 7 of ITEPA 2003).

(2)

For those purposes—

(a)

a reference in an enactment to redemption is to be taken as a reference to making the redemption payment, and

(b)

a reference in an enactment to interest is to be taken as a reference to alternative finance return.

(3)

In subsection (2) “the redemption payment” has the same meaning as in section 564G (see subsection (1)(d)(ii) of that section).”