Deeply Discounted Securities Income Gains

Hi, Can you please advise where on the SA106 tax return that DDS income gains are entered for an income gain in a non-UK DDS security please. I understand that income gains can be entered on SA101 for a UK DDS gain. Also, for the calculation the gain what are incidental costs please?

Hi,

On a foreign investment, the income is the difference between the purchase and redemption price after each has been converted to sterling on the day the transactions took place, so includes any foreign exchange gains. Any losses cannot be deducted. 

You can see more information here:

SAIM3010 - Deeply discounted securities: introduction

If you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1). 

Thank you.

Thank you. Can you please confirm for a non-uk DDS income gain this is not entered on the foreign form SA106 and should be entered in the UK form SA101

Hi S R

If you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1). 

Thanks

Good morning, this is for a foreign deeply discounted security income gain. Would it be acceptable to enter the gain on SA106 under interest and income from overseas savings? Or is SA101 always used?

Hi,

If you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1). 

Thank you.