Chapter 6Powers to modify repo provisions
612Non-standard repo cases
(1)The Treasury may by regulations provide for—
(a)sections 601 to 606 (deemed manufactured payments: repos),
(b)sections 607 to 610 (treatment of price differences under repos), or
(c)any of those sections,
to apply with modifications in relation to non-standard repo cases.
(2)A case is a non-standard repo case if—
(a)there is a repo in respect of securities,
(b)under the repo, there has been a sale (“the original sale”) of the securities by the original owner to the interim holder, and
(c)any of conditions A to E is met in relation to the repo.
(3)Condition A is that—
(a)the obligation to buy back the securities is not performed, or
(b)the option to buy them back is not exercised.
(4)Condition B is that provision is made by or under an agreement for different or additional UK shares, UK securities or overseas securities to be treated as (or as included with) representative securities.
(5)Condition C is that provision is made by or under an agreement for any UK shares, UK securities or overseas securities to be treated as not included with representative securities.
(6)Condition D is that provision is made by or under an agreement for the sale price or repurchase price to be decided or varied wholly or partly by reference to post-agreement fluctuations.
(7)Condition E is that provision is made by or under an agreement for a person to be required, in a case where there are post-agreement fluctuations, to make a payment in the period—
(a)beginning immediately after the making of the agreement for the original sale, and
(b)ending when the repurchase price becomes due.
(8)“Post-agreement fluctuations” are fluctuations in the value of —
(a)securities transferred in pursuance of the original sale, or
(b)representative securities,
which occur in the period after the making of the agreement for the original sale.
(9)“Representative securities” are UK shares, UK securities or overseas securities which, for the purposes of the repurchase, are to represent securities transferred in pursuance of the original sale.
613Redemption arrangements
(1)The Treasury may by regulations provide for—
(a)sections 601 to 606 (deemed manufactured payments: repos),
(b)sections 607 to 610 (treatment of price differences under repos), or
(c)any of those sections,
to apply with modifications in relation to cases involving redemption arrangements.
(2)A case involves redemption arrangements if—
(a)arrangements, corresponding to those made in cases where there is a repo, are made by an agreement, or one or more related agreements, in relation to securities that are to be redeemed in the period after their sale,
(b)the securities are UK shares, UK securities or overseas securities, and
(c)the arrangements are such that the seller or a person connected with the seller (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 result from the redemption.
614Sections 612 and 613: supplementary
(1)Regulations under section 612 or 613 may make different provision for different cases.
(2)Regulations under either section may contain incidental, supplemental, consequential and transitional provision and savings.
(3)The incidental, supplemental and consequential provision may, in the case of regulations about sections 607 to 610, include modifications of—
(a)section 604 (deemed increase in repurchase price: price differences under repos), and
(b)section 605 (deemed increase in repurchase price: other income tax purposes).
(4)In this section and sections 612 and 613 “modifications” includes exceptions and omissions.
(5)Accordingly, a power in sections 612 and 613 to provide for a provision to apply with modifications in relation to a particular case includes power to provide for the provision not to apply in relation to that case.