Summary
1.Section 45 clarifies that manufactured payments received by companies in the course of certain sale and repurchase (“repo”) transactions must be taken into account in calculating profits chargeable to corporation tax if they are taken into account in computing accounting profits. The clarification follows a recent challenge to the repo legislation in Chapter 10 of Part 6 of the Corporation Tax Act 2009 (CTA) – and its predecessor Schedule 13 to the Finance Act (FA) 2007 – that manufactured payments received by companies may not have to be taken into account for tax purposes if the securities to which they relate are not recognised on the companies’ balance sheets.