Part 6Exempt income

Chapter 6Income from FOTRA securities

713Introduction: securities free of tax to residents abroad (“FOTRA securities”)

1

This Chapter provides for exemptions from income tax in respect of FOTRA securities.

2

In this Chapter “FOTRA security” means—

a

a security issued with a condition about exemption from taxation authorised by section 22 of F(No.2)A 1931,

b

a gilt-edged security which was issued before 6th April 1998 and without any such condition (other than 3½% War Loan 1952 Or After), or

c

3½% War Loan 1952 Or After.

3

In this Chapter “the exemption condition” has the meaning given by subsections (4) to (6), according to the kind of FOTRA security involved.

4

In relation to a security within subsection (2)(a), it means the condition authorised by section 22 of F(No.2)A 1931.

5

In relation to a security within subsection (2)(b), it means a condition with which 7.25% Treasury Stock 2007 was first issued, being a condition treated by section 161(1) of FA 1998 (non-FOTRA securities)—

a

as a condition with which the security within subsection (2)(b) was issued, and

b

as a condition authorised in relation to its issue by section 22 of F(No.2)A 1931.

6

In relation to 3½% War Loan 1952 Or After, it means a condition of its issue authorised by section 47 of F(No.2)A 1915.