SCHEDULES

SCHEDULE 2Transitionals and savings

Part 12Manufactured payments and repos

Price differences under repos

123

(1)

This paragraph applies if an agreement to sell securities was made before 9 April 2003.

(2)

Section 611 applies with these modifications.

(3)

It applies as if in subsection (1) after “modifications” there were inserted “ in a case where there is a sale and repurchase arrangement in respect of securities ”.

(4)

It applies as if after subsection (1) there were inserted—

“(1A)

For the purposes of subsection (1) there is a sale and repurchase arrangement in respect of securities if—

(a)

a person (“the original owner”) has sold the securities to another person under an agreement,

(b)

the securities are UK shares, UK securities or overseas securities, and

(c)

the original owner or a person connected with the original owner—

(i)

is required to buy back the securities by the agreement or a related agreement, or

(ii)

acquires, under the agreement or a related agreement, an option to buy back the securities.

(1B)

Section 570 (meaning of “buying back” securities etc) applies in the context of subsection (1A) as it applies in the context of a repo.”