[F2737E[F1Power to modify sections 727A, 730A, 730BB and 737A to 737C]U.K.
(1)The Treasury may by regulations make provision for all or any of sections 727A, 730A [F3, 730BB] and 737A to 737C to have effect with modifications in relation to cases involving any arrangement for the sale and repurchase of securities where—
(a)the obligation to make the repurchase is not performed or the option to repurchase is not exercised;
(b)provision is made by or under any agreement for different or additional securities to be treated as, or as included with, securities which, for the purposes of the repurchase, are to represent securities transferred in pursuance of the original sale;
(c)provision is made by or under any agreement for any securities to be treated as not included with securities which, for the purposes of the repurchase, are to represent securities transferred in pursuance of the original sale;
(d)provision is made by or under any agreement for the sale price or repurchase price to be determined or varied wholly or partly by reference to fluctuations, occurring in the period after the making of the agreement for the original sale, in the value of securities transferred in pursuance of that sale, or in the value of securities treated as representing those securities; or
(e)provision is made by or under any agreement for any person to be required, in a case where there are any such fluctuations, to make any payment in the course of that period and before the repurchase price becomes due.
(2)The Treasury may by regulations make provision for all or any of sections 727A, 730A [F3, 730BB] and 737A to 737C to have effect with modifications in relation to cases where—
(a)arrangements, corresponding to those made in cases involving an arrangement for the sale and repurchase of securities, are made by any agreement, or by one or more related agreements, in relation to securities that are to be redeemed in the period after their sale; and
(b)those arrangements are such that the person making the sale or a person connected with him (instead of being required to repurchase the securities or acquiring an option to do so) is granted rights in respect of the benefits that will accrue from their redemption.
(3)The Treasury may by regulations provide that section 730A [F4or 730BB] is to have effect with modifications in relation to cases involving any arrangement for the sale and repurchase of securities where there is an agreement relating to the sale or repurchase which is not such as would be entered into by persons dealing with each other at arm’s length.
(4)The powers conferred by subsections (1) and (2) above shall be exercisable in relation to section 263A [F5or 263D] of the 1992 Act as they are exercisable in relation to section 730A of this Act.
(5)Regulations made for the purposes of this section may—
(a)make different provision for different cases; and
(b)contain such supplementary, incidental, consequential and transitional provision as appears to the Treasury to be appropriate.
(6)The supplementary, incidental and consequential provision that may be made by regulations under this section shall include—
(a)in the case of regulations relating to section 730A, provision modifying subsections (3)(b), (9), (11)(c) and (11A) of section 737C; and
(b)in the case of regulations relating to section 263A [F6or 263D] of the 1992 Act, provision modifying the operation of that Act in relation to cases where by virtue of the regulations any acquisition or disposal is excluded from those which are to be disregarded for the purposes of capital gains tax.
(7)In this section “modifications” includes exceptions and omissions; and any power under this section to provide for an enactment to have effect with modifications in any case shall include power to provide for it not to apply (if it otherwise would do) in that case.
(8)References in this section to a case involving an arrangement for the sale and repurchase of securities are references to any case where—
(a)a person makes a sale of any securities under any agreement (“the original sale”); and
[F7(b)that person or a person connected with him—
(i)is required to buy them back in pursuance of an obligation imposed by, or in consequence of the exercise of an option acquired under, that agreement or any related agreement, or
(ii)acquires an option to buy them back under that agreement or any related agreement which he subsequently exercises.]
(9)Section 730B shall apply for the purposes of this section as it applies for the purposes of section 730A.]
Textual Amendments
F1S. 737E sidenote substituted (with effect in accordance with Sch. 38 para. 21(2) of the amending Act) by virtue of Finance Act 2003 (c. 14), Sch. 38 para. 13(4)
F2Ss. 737D, 737E inserted (1.5.1995) by Finance Act 1995 (c. 4), s. 83(1)
F3Words in s. 737E(1)(2) inserted (with effect in accordance with Sch. 38 para. 21(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 38 para. 13(2)
F4Words in s. 737E(3) inserted (with effect in accordance with Sch. 38 para. 21(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 38 para. 13(3)
F5Words in s. 737E(4) inserted (with effect in accordance with Sch. 24 para. 3(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 24 para. 3(2)(a)
F6Words in s. 737E(6)(b) inserted (with effect in accordance with Sch. 24 para. 3(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 24 para. 3(2)(b)
F7S. 737E(8)(b) substituted (with effect in accordance with Sch. 38 para. 21(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 38 para. 8