[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 F2. . . in respect of a qualifying distribution if—
(a)he is the borrower under a stock lending arrangement or [F3the lender under a creditor repo or creditor quasi-repo];
(b)the qualifying distribution is, or is a payment representative of, a distribution in respect of securities to which the arrangement [F4or repo in question] relates; and
(c)a manufactured dividend representative of that distribution is paid by that person in respect of securities to which the arrangement [F4or repo in question] relates.
[F5(1A)F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
(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.
[F7(3)In this section “creditor repo” and “creditor quasi-repo” have the meaning given by [F8Chapter 10 of Part 6 of CTA 2009 (repos)].]
(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) F9. . . to be treated for the purposes of Schedule 23A as if it were made).
[F10(5)For the purposes of this section a person is taken to have paid a manufactured dividend representative of a distribution in respect of securities to which a creditor repo relates if (as a result of paragraph 13(1) of Schedule 13 to the Finance Act 2007) the person is treated for the purposes of Chapter 9 of Part 15 of ITA 2007 as making a payment which is representative of the income payable on the securities.]]
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)
F2Words in s. 231AA(1) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 24(2), Sch. 3 Pt. 1 (with Sch. 2)
F3Words in s. 231AA(1) substituted (with effect in accordance with s. 47(4) of the amending Act) by Finance Act 2007 (c. 11), Sch. 14 para. 2(2)(a); S.I. 2007/2483, art. 3
F4Words in s. 231AA(1) substituted (with effect in accordance with s. 47(4) of the amending Act) by Finance Act 2007 (c. 11), Sch. 14 para. 2(2)(b); S.I. 2007/2483, art. 3
F5S. 231AA(1A) inserted (with effect in accordance with Sch. 24 para. 1(4)(5) of the amending Act) by Finance Act 2004 (c. 12), Sch. 24 para. 1(1)
F6S. 231AA(1A) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 24(3), Sch. 3 Pt. 1 (with Sch. 2)
F7S. 231AA(3) substituted (with effect in accordance with s. 47(4) of the amending Act) by Finance Act 2007 (c. 11), Sch. 14 para. 2(3); S.I. 2007/2483, art. 3
F8Words in s. 231AA(3) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 101 (with Sch. 2 Pts. 1, 2)
F9Words in s. 231AA(4) repealed (with effect in accordance with s. 47(4) of the repealing Act) by Finance Act 2007 (c. 11), Sch. 14 para. 2(4), Sch. 27 Pt. 2(14); S.I. 2007/2483, art. 3
F10S. 231AA(5) inserted (with effect in accordance with s. 47(4) of the amending Act) by Finance Act 2007 (c. 11), Sch. 14 para. 2(5); S.I. 2007/2483, art. 3