Commentary on Sections Overview Overview Section 714: Exemption of profits from FOTRA securities
2737.This section sets out the conditions that must all be met if the exemption is to apply. It is based on section 154 of FA 1996. As the exemption can apply, in certain circumstances, to trading income as well as to interest (see overview to this Chapter), the general word “profits” has been used in subsection (1) rather than a more limited word such as “interest”.
2738.Subsection (6) deals with two exceptions from the general exemption in subsection (1). These exceptions apply whatever the exemption condition relating to the FOTRA security provides.