Income Tax Act 2007

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.”