SCHEDULES

SCHEDULE 14Sale and repurchase of securities: minor and consequential amendments

Income and Corporation Taxes Act 1988 (c. 1)

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1

Section 231AA (no tax credit for borrower under stock lending arrangement or interim holder under repurchase agreement) is amended as follows.

2

In subsection (1)—

a

for “the interim holder under a repurchase agreement” substitute “ the lender under a creditor repo or creditor quasi-repo ”, and

b

for “or agreement” (in both places) substitute “ or repo in question ”.

3

For subsection (3) substitute—

3

In this section creditor repo and “creditor quasi-repo” have the meaning given by Schedule 13 to the Finance Act 2007.

4

In subsection (4), omit “or 737A(5)”.

5

After that subsection insert—

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.