Part 11Manufactured payments and repos
Chapter 5Price differences under repos
Main tax treatment
C1608Exceptions to section 607
1
Section 607 does not apply in a case within subsection (2) or (3).
2
A case is within this subsection if the agreement or agreements for sale and repurchase are not what one would expect of persons dealing at arm's length.
3
A case is within this subsection if the interim holder has all the benefits and risks from fluctuations in the market value of the securities between their sale and repurchase.
4
This section is subject to any regulations under—
a
section 611 (power to modify Chapter 5 in non-arm's length case), and
b
sections 612 to 614 (powers to modify repo provisions: non-standard repo cases and redemption arrangements).