SCHEDULES

SCHEDULE 2Transitionals and savings

Part 13Accrued income profits

Sale and repurchase arrangements

126

1

This paragraph applies if the agreement to sell the securities mentioned in section 654(2) was made before 9 April 2003.

2

Section 655 has effect with the omission of subsection (2).

3

For the purpose of determining whether (for the purposes of section 655) there is a sale and repurchase arrangement in respect of the securities, section 654(2) has effect with the omission of paragraph (b).

4

Sub-paragraph (5) applies—

a

for the purpose of determining whether (for the purposes of section 656) there is a sale and repurchase arrangement in respect of the securities, and

b

for the purpose of determining whether (for the purposes of section 657) the case involves redemption arrangements.

5

Section 654(2) has effect with the substitution for paragraphs (b) and (c) of

or

b

T or a person connected with T acquires, under the agreement or a related agreement, an option to buy back the securities.