SCHEDULES

SCHEDULE 1U.K.Minor and consequential amendments

Part 2U.K.Other enactments

Taxation of Chargeable Gains Act 1992 (c. 12)U.K.

331U.K.After section 261F insert—

261GPrice differences under repos: effect on repurchase price

(1)Subsections (2) and (3) apply if—

(a)section 607 of ITA 2007 (treatment of price differences under repos) applies,

(b)an amount is treated under that section as a payment of interest, and

(c)section 263A does not apply.

(2)If the repurchase price is more than the sale price, the repurchase price is treated for capital gains tax purposes as reduced by the amount of the payment of interest.

(3)If the sale price is more than the repurchase price, the repurchase price is treated for capital gains tax purposes as increased by the amount of the payment of interest.

(4)Expressions used in this section and in section 609 of ITA 2007 (additional income tax consequences of price differences under repos) have the same meanings in this section as in that section.