Syllabus A2. Chargeable gains A2f. Disposals of shares and securities

A2fii. Qualifying Corporate Bonds

Syllabus A2fii)

Define a qualifying corporate bond (QCB), and understand what makes a corporate bond non-qualifying. Understand the capital gains tax implications of the disposal of QCBs in exchange for cash or shares

What is a qualifying corporate bond?

Qualifying corporate bonds are debt securities (loan notes) that are exempt for capital gains tax purposes.

This means that if they are sold they will not give rise to any capital gains, and no capital loss will be allowable.

Conditions to qualify as a QCB

  1. It is in sterling and has no rights of conversion into, or redemption in, a currency other than sterling.

  2. It has no rights of conversion into shares, it must remain a debt security.

  3. It must be issued/acquired after 13/03/1984