Finance Act 2003

Valid from 10/07/2003

Exceptions U.K.

15 U.K. In section 727A(1) of the Taxes Act 1988 (accrued income scheme not to apply to transfers of securities under repo agreements), insert at the end “ except in a case where section 730A of the Taxes Act 1988 is prevented from applying by subsection (8) of that section. ”.

16 U.K. In section 730A(8)(b) of the Taxes Act 1988 (treatment of price differential on sale and repurchase: exclusion of cases where all benefits or risks are for interim holder), for “benefits or risks” substitute “ benefits and risks ”.

17 U.K. In section 737C(11A) of the Taxes Act 1988 (purposes for which deemed increase of repurchase price has effect), insert at the end “ or where that section is prevented from applying by subsection (8) of that section. ”.

18 (1) Paragraph 15 of Schedule 9 to the Finance Act 1996 (c. 8) (repo transactions not related transactions for purposes of loan relationship provisions) is amended as follows. U.K.

(2) In sub-paragraph (3), after “means” insert “ (subject to sub-paragraph (3A)) ”.

(3) After that sub-paragraph insert—

“(3A) Arrangements are not repo or stock-lending arrangements if they are excluded from section 730A of the Taxes Act 1988 by subsection (8) of that section.”.