HC Deb 12 December 1985 vol 88 c769W
Mr. Stern

asked the Chancellor of the Exchequer whether notional interest on deep discount securities is to be calculated on the basis of issue price, or cost price to the individual holder.

Mr. Ian Stewart

The discount on deep discount securities is treated as income accruing over the life of the security. It is calculated by reference to the issue price and the redemption value.