Part 11Manufactured payments and repos

Chapter 5Price differences under repos

Power to modify

611Power to modify Chapter in non-arm's length case

(1)

The Treasury may by regulations provide for—

(a)

sections 607 to 610 (price differences under repos), or

(b)

any of those sections,

to apply with modifications if the exception in section 608(2) (agreement not at arm's length) would otherwise prevent section 607 from applying.

(2)

Regulations under this section may make different provision for different cases.

(3)

Regulations under this section may contain incidental, supplemental, consequential and transitional provision and savings.

(4)

The incidental, supplemental and consequential provision may 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).

(5)

In this section “modifications” includes exceptions and omissions.

(6)

Accordingly, the power in subsection (1) includes power to provide for any of sections 607 to 610 not to apply in relation to the case mentioned in that subsection.