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17.—(1) This regulation applies in a case where—
(a)there is an arrangement for the sale and repurchase of securities to which section 730A(1) or 737A(1) of the Taxes Act, or section 263A(1) of the 1992 Act, applies, or to which section 730A(1) of the Taxes Act would apply if the sale price and the repurchase price were different,
(b)there is a euroconversion of those securities prior to their being repurchased,
(c)the aggregate nominal value (expressed in euros) of the securities sold, or of securities issued to replace them in a euroconversion is, as a result of renominalisation, not a whole multiple of the new minimum denomination in which those securities can be traded at the time of repurchase under the arrangement,
(d)securities the aggregate nominal value of which is equal to the largest whole multiple of the new minimum denomination which does not exceed the aggregate nominal value referred to in sub-paragraph (c) are required under the arrangement to be sold back to the original owner or the transferor or a person connected with him, and
(e)the interim holder is required under the arrangement to pay to the original owner or transferor, or person connected with him, an amount which either—
(i)is equal to the amount of what would, but for the arrangement, have been the proceeds of disposal of the remainder of the securities on the renominalisation received by the original owner, or
(ii)is equal to the value, at the time of the repurchase of securities pursuant to the arrangement, of the remainder if the remainder could still be held at that time though not traded.
(2) Where this regulation applies, the requirement for payment of the amount specified in paragraph (1)(e) is to to be regarded for the purposes of sections 727A, 730A and 737A of the Taxes Act, and section 263A of the 1992 Act, as equivalent to a requirement on the original owner, transferor or person connected with him to repurchase the remainder of the securities.
(3) The value referred to in paragraph (1)(e)(ii) is the appropriate proportion (based on nominal value) of the market value of the minimum amount of the original securities that, at the time of the repurchase of the securities pursuant to the arrangement, could be traded.
(4) Where the amount calculated in accordance with sub-paragraph (e) of paragraph (1) does not exceed 500 euros, and the arrangement does not require payment of a sum equal to this amount, this regulation shall have effect as if the amount calculated in accordance with that sub-paragraph were nil and the requirement specified in that sub-paragraph were satisfied.
(5) Where, in a case to which paragraph (1)(a) to (d) applies—
(a)no amount is paid as mentioned in paragraph (1)(e) by the interim holder to the original owner, transferor or person connected with him in respect of securities that, as a result of the renominalisation, could not be traded, but
(b)it is reasonable to assume that an amount that is representative of an amount that could have been paid as mentioned in sub-paragraph (a) was taken into account in computing the repurchase price of the securities,
that amount shall be treated as if it were a separate payment made by the interim holder to the original owner, transferor or person connected with him that is representative of a capital payment on the euroconversion of the securities, and the repurchase price of the securities shall be treated as increased by an amount equal to the amount of that separate payment so treated as made.