Redemption arrangements: consequences for tax in respect of chargeable gains
4.—(1) In a case where paragraph 2 of Schedule 13 applies with the modifications specified in regulation 3, sub-paragraphs (3) to (5) of paragraph 6 of Schedule 13 apply as if those sub-paragraphs provided that, in such a case, the borrower shall be treated for the purposes of tax in respect of chargeable gains as having disposed of the securities transferred by him to the lender under the arrangement—
(a)on the occasion of the redemption of the securities, and
(b)for an amount equivalent to the proceeds of redemption.
(2) In a case where paragraph 7 of Schedule 13 applies with the modifications specified in regulation 3, sub-paragraphs (3) to (5) of paragraph 11 of Schedule 13 apply as if those sub-paragraphs provided that, in such a case, the lender shall be treated for the purposes of tax in respect of chargeable gains as having acquired the securities transferred to him under the arrangement—
(a)on the occasion of the redemption of the securities, and
(b)for an amount equivalent to the proceeds of redemption.