Details of the Section
2.Subsection (1) amends paragraph 4 of Schedule 13 to FA 2007 by inserting additional wording into the rules dealing with manufactured payments received by companies to put beyond doubt that where such amounts are received in the course of a repo, those payments must be taken into account for tax to the extent they are taken into account in accordance with generally accepted accounting practice (GAAP).
3.Subsection (2) makes an equivalent change to section 550 of CTA, which is identical to paragraph 4 of Schedule 13, to ensure that repos to which that Act applies are also covered by the change.
4.Subsection (3) contains the commencement rule, which is that the amendments are to be treated as always having had effect. In practice this means that they are treated as having effect from the date the legislation in respect of repos came into force – 1 October 2007.