The Income Tax (Building Societies) (Dividends and Interest) (Amendment) Regulations 2001

Amendments to the principal Regulations

5.  In regulation 4(1) after sub-paragraph (t)(1) add—

“(u) a payment of interest in respect of an amount of cash which is—

(i) received by the building society in connection with a sale and repurchase agreement in circumstances where section 730A of the Taxes Act (treatment of price differential on sale and repurchase of securities) applies(2), and

(ii) required as a result of a variation in the value of the securities as security for performance by the parties to the agreement of their obligations under the agreement.”.

(1)

Regulation 4(1)(t) was added by regulation 2 of S.I. 1995/1184.

(2)

Section 730A was inserted by section 80(1) of the Finance Act 1995 (c. 4) and amended by paragraph 37 of Schedule 14 to the Finance Act 1996 (c. 8).