Section 751 Traders other than dealers in securities
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(1) Where the first buyer carries on a trade not within section 749, then, in ascertaining―
(a) for the purposes of income tax, whether any, and if so what, repayment of tax is to be made to the first buyer under section 381 by reference to any loss sustained in the trade for the year of assessment the first buyer's income for which includes the interest, there shall be disregarded―
(i) the appropriate amount in respect of the interest determined in accordance with Schedule 21, and
(ii) any tax paid on that amount;
(b) for the purposes of corporation tax, the income or profits against which the loss may be set off under section ...1 396, there shall be disregarded the appropriate amount in respect of the interest determined in accordance with Schedule 21.
Amendments
1 Deleted by Finance Act 2003 section 41(1)(k) as respects accounting periods ending on or after 6 February 2003.
Can I as an ordinary dealer make use of a loss created by buying a security cum div and selling it ex div?
(1) Where you are an ordinary trader who is not a security dealer, an artificial loss (created by buying a security cum dividend and selling it ex dividend) is disallowed by treating the purchase price paid for the securities as reduced by the intere...
(2) Where the first buyer is a body corporate and carries on a trade not within section 749 or a business consisting mainly in the making of investments, then, if any annual payment payable by the body corporate is to any extent payable out of the interest, that annual payment shall be deemed to that extent―
(a) for the purposes of income tax, not to be payable out of profits or gains brought into charge to tax and section 238 shall apply accordingly, and
(b) for the purposes of corporation tax, not to be a payment which is a charge on income.
