ACCA ATX ^UK Syllabus A2. Chargeable gains - Qualifying Corporate Bonds - Notes ^{2 / 4}

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

4. Interest must be at a commercial rate