Commentary on Sections Overview Chapter 2: Accrued income profits and losses Section 626: Transfers of variable rate securities
1830.This section provides that a transfer of variable rate securities is not treated as a transfer with or without accrued interest, regardless of whether it would otherwise be such a transfer. It is new.
1831.By excluding transfers of variable rate securities from the normal rules for transfers with accrued interest, the special rules which apply to transfers of variable rate securities then apply directly without first treating them as transfers with accrued interest, and without having to modify the normal rules. See in particular sections 630, 631 and 635.
1832.See Change 102 in Annex 1 which drops the fiction that transfers of variable rate securities are transfers with accrued interest.