»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýappre is no statutory definition of debenture. »Ê¹ÚÌåÓýapprefore, it has its ordinary meaning which is acknowledgement of debt. Nearly all debentures issued in exchange for shares and debentures will be securities within the meaning of TCGA92/S132 (3)(b). See CG53420+ and CG55015 for instructions on the definition of security. If the debenture is not a security the treatment depends upon whether it was issued before or after 16 March 1993.

Debenture: issue 16/3/93+

TCGA92/S251 (6) deems any debenture issued on or after 16 March 1993 whose issue falls within TCGA92/S135 to be a security.

Debenture: issue pre-16/3/93

A debenture issued before 16 March 1993 whose issue falls within TCGA92/S135 which is not a security will not be a chargeable asset in the hands of the original creditor. Such a debenture would be exceptional.