PART XVII TAX AVOIDANCE
CHAPTER II TRANSFERS OF SECURITIES
Transfers with or without accrued interest: introductory
710 Meaning of “securities”, “transfer” etc. for purposes of sections 711 to 728.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
711 Meaning of “interest”, “transfers with or without accrued interest” etc.
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
712 Meaning of “settlement day” for purposes of sections 711 to 728.
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers with or without accrued interest: charge to tax and reliefs
713 Deemed sums and reliefs.
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
714 Treatment of deemed sums and reliefs.
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
715 Exceptions from sections 713 and 714
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
716 Transfer of unrealised interest.
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
717 Variable interest rate.
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
718 Interest in default.
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
719 Unrealised interest in default
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfers with or without accrued interest: supplemental
720 Nominees, trustees etc.
F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
721 Death.
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
722 Trading stock.
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
722AF24 Gilt strips: deemed transfer.
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
723 Foreign securities: delayed remittances
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
724 Insurance companies.
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F17725. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F18726. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F19726A New issues of securities.
F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
727 Stock lending.
F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
727AF25 Exception for sale and repurchase of securities.
F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
728 Information.
F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other transfers of securities
729 Sale and repurchase of securities.
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
730F27Transfers of rights to receive distributions in respect of shares
F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
730AF33 Treatment of price differential on sale and repurchase of securities.
F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
730B Interpretation of section 730A.
F30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
730BBF34Exchange gains and losses on sale and repurchase of securities
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
730CF35 Exchanges of gilts: traders etc.
F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase and sale of securities
731 Application and interpretation of sections 732 to 734.
F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
732 Dealers in securities.
F37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
733 Persons entitled to exemptions.
F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
734 Persons other than dealers in securities.
F39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
735 Meaning of “appropriate amount in respect of” interest.
F40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous provisions relating to securities
736 Company dealing in securities: distribution materially reducing value of holding.
F41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F42736A Manufactured dividends and interest.
Schedule 23A to this Act shall have effect in relation to certain cases where under a contract or other arrangements for the transfer of shares or other securities a person is required to pay to the other party an amount representative of a dividend or payment of interest on the securities.
F49C1736B Deemed manufactured payments in the case of stock lending arrangements.
1
This section applies where—
a
any interest on securities transferred by the lender under a stock lending arrangement is paid, as a consequence of the arrangement, to a person other than the lender; and
b
no provision is made for securing that the lender receives payments representative of that interest.
2
Where this section applies, Schedule 23A and the provisions for the time being contained in any regulations under that Schedule F62, and F66Chapter 9 of Part 6 of CTA 2009 (loan relationships: manufactured interest), shall apply F63for corporation tax purposesF59, subject to F67subsections (2A) and (2B) below, as if—
a
the borrower were required under the stock lending arrangement to pay the lender an amount representative of the interest mentioned in subsection (1)(a) above;
b
a payment were made by the borrower in discharge of that requirement; and
c
that payment were made on the same date as the payment of the interest of which it is representative.
F60C22A
The borrower is not entitled, by virtue of anything in Schedule 23A or any provision of regulations under that Schedule, or otherwise—
a
to any deduction in computing profits or gains for the purposes of F64. . . corporation tax, or
b
to any deduction against F65. . . total profits,
in respect of any such deemed requirement or payment as is provided for by subsection (2) above.
Where the borrower is a company, an amount may not be surrendered by way of group relief if a deduction in respect of it is prohibited by this subsection.
F682B
In its application by virtue of subsection (2), paragraph 4(4) of Schedule 23A has effect as if—
a
in paragraph (a), the words from “but paid after” to the end were omitted, and
b
paragraph (b) were omitted.
3
In this section—
“interest” includes dividends; and
“stock lending arrangement” and “securities” have the same meanings as in section 263B of the 1992 Act.
F614
F69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
736CF50Deemed interest: cash collateral under stock lending arrangements
F43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
736DF51Quasi-stock lending arrangements and quasi-cash collateral
F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
737 Manufactured dividends: treatment of tax deducted.
F45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
737AF52 Sale and repurchase of securities: deemed manufactured payments.
F46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
737B Interpretation of section 737A.
F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
737C Deemed manufactured payments: further provisions.
F48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental
737DF58 Power to provide for manufactured payments to be eligible for relief.
F53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
737EF54Power to modify sections F55. . . 730A, 730BB and 737A to 737C
F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
738 Power to amend sections 732, 735 and 737.
F57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .