Contents

The section covers

• Rule
• Determining the value of cash accounts
• Determining the value of bonds and mortgages
• Determining the value of index-linked bonds etc.

Rule

The end of the year of taxation will always be 31 December. See Section 11 of PAL and section C.1, Year of taxation.

 

It appears from Section 10(1), Item 3 of PAL how the value of the account balance is determined at the end of the year of taxation.

 

Determining the value of cash accounts           

For cash accounts, the value of the account balance is determined on 31 December of the year of taxation. This also applies to cash accounts carrying interest on the basis of the yield on a security pool belonging to the bank.

 

Determining the value of bonds and mortgages

The value of bonds and mortgages is determined on 31 December of the year of taxation at the fair value.

 

Determining the value of index-linked bonds etc.                

The value of index-linked bonds, convertible bonds, shares and investment certificates is determined on 31 December of the year of taxation at the market price.