Commentary on Sections Overview Overview Section 986: Meaning of “qualifying uncertificated eligible debt security unit”
3016.This section defines “qualifying uncertificated eligible debt security unit”. It is based on sections 349(4) and 482(6) of ICTA and section 552(2) of ITTOIA.
3017.Interest (and, in the case of building societies, dividends) paid by a deposit-taker or building society in respect of qualifying uncertificated eligible debt security units is payable gross. See sections 864 and 889.
3018.For an uncertificated eligible debt security to be “qualifying” there has to be a right to receive an amount of at least £50,000 (or equivalent if made in a foreign currency) at a specified time within five years of the deposit being made.
3019.The definition of “qualifying uncertificated eligible debt security unit” has been aligned to the wording of the definition of “qualifying time deposit” (see section 866) so that it is clear that a “qualifying uncertificated eligible debt security unit” can only be paid in one tranche “at a specified time”. See Change 149 in Annex 1.
3020.Subsection (4) defines various terms in the definition of “uncertificated eligible debt security units” by reference to the Uncertificated Securities Regulations 2001 (SI 2001/3755).