SAIM3030 - Deeply discounted securities: occasions when redemption is ignored
Excluded occasions of redemption
ITTOIA05/S431 provides two occasions on which securities that are redeemed early (that is, other than at maturity) are ignored for the purposes of the deeply discounted securities scheme. These are when
- the 바카라 사이트˜third party option conditions바카라 사이트™, or
- the 바카라 사이트˜commercial protection conditions바카라 사이트™
are met.
The 바카라 사이트˜third party option conditions바카라 사이트™
This exclusion applies where the security is redeemed at the option of a person other than the holder, provided the holder is not connected (within the meaning of ICTA88/S839) with the issuer, and provided the early redemption does not result in any person obtaining a tax advantage. Tax advantage takes its meaning from CTA10/S1139 - see ITTOIA05/S460 (2).
Although the legislation refers to these as the 바카라 사이트˜third party option conditions바카라 사이트™, the exclusion applies to securities where the issuer has the right to redeem the security early or on any occasion where early redemption is mandatory provided that the conditions are met.
A security which was not a DDS because the holder was not connected with the issuer becomes one for the purposes of this exclusion where it is acquired by a person connected with the issuer. Where a security is only a DDS by virtue of the connected persons rule, it ceases to be so if transferred to an unconnected person.
The 바카라 사이트˜commercial protection conditions바카라 사이트™
This exclusion applies when the redemption is a result of the exercise of an option that may only be exercised on an 바카라 사이트˜event adversely affecting the holder바카라 사이트™, or on the default of any person, and where, judging at the time of issue, neither is likely to occur.