Income Tax Act 2007 section 619

Meaning of "securities" and when securities are of the same kind

Section 619 defines what counts as a "security" for the purposes of the accrued income scheme, sets out the types of security that are excluded from the scheme, and explains when securities are treated as being of the same kind.

• Securities include loan stock and similar debt instruments (but not company shares), as well as qualifying building society shares treated as corporate bonds — regardless of the issuer, whether secured, the interest terms, or whether in bearer form
• Certain instruments are excluded from the definition, including national savings certificates, war savings certificates, certificates of deposit, uncertificated eligible debt security units, deposit rights, and securities meeting specific redemption conditions
• Deeply discounted securities are generally excluded, but remain within scope if the transfer would be subject to the transitional rules for listed securities held since 26 March 2003
• Securities are treated as being of the same kind if a recognised stock exchange would regard them as such — this matters because accrued income profits and losses are calculated by reference to transfers of same-kind securities within the same interest period