Yn ddilys o 31/07/1998
[F1231AA No tax credit for borrower under stock lending arrangement or interim holder under repurchase agreement.U.K.
(1)A person shall not be entitled to a tax credit under section 231 in respect of a qualifying distribution if—
(a)he is the borrower under a stock lending arrangement or the interim holder under a repurchase agreement;
(b)the qualifying distribution is, or is a payment representative of, a distribution in respect of securities to which the arrangement or agreement relates; and
(c)a manufactured dividend representative of that distribution is paid by that person in respect of securities to which the arrangement or agreement relates.
(2)In this section “stock lending arrangement” has the same meaning as in section 263B of the 1992 Act and, in relation to any such arrangement, any reference to the borrower, or the securities to which the arrangement relates, shall be construed accordingly.
(3)For the purposes of this section the cases where there is a repurchase agreement are the following—
(a)any case falling within subsection (1) of section 730A; and
(b)any case which would fall within that subsection if the sale price and the repurchase price were different;
and, in any such case, any reference to the interim holder, or the securities to which the agreement relates, shall be construed accordingly.
(4)For the purposes of this section “manufactured dividend” has the same meaning as in paragraph 2 of Schedule 23A (and any reference to a manufactured dividend being paid accordingly includes a reference to a payment falling by virtue of section 736B(2) or 737A(5) to be treated for the purposes of Schedule 23A as if it were made).]
Textual Amendments
F1S. 231AA inserted (with effect in accordance with s. 102(9) of the amending Act) by Finance Act 1998 (c. 36), s. 102(1)