SCHEDULES

SCHEDULE 38Sale and repurchase of securities etc

Exceptions

F115

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16

In section 730A(8)(b) of the Taxes Act 1988 (treatment of price differential on sale and repurchase: exclusion of cases where all benefits or risks are for interim holder), for “benefits or risks” substitute “ benefits and risks ”.

17

In section 737C(11A) of the Taxes Act 1988 (purposes for which deemed increase of repurchase price has effect), insert at the end “ or where that section is prevented from applying by subsection (8) of that section. ”.

18

(1)

Paragraph 15 of Schedule 9 to the Finance Act 1996 (c. 8) (repo transactions not related transactions for purposes of loan relationship provisions) is amended as follows.

(2)

In sub-paragraph (3), after “means” insert “ (subject to sub-paragraph (3A)) ”.

(3)

After that sub-paragraph insert—

“(3A)

Arrangements are not repo or stock-lending arrangements if they are excluded from section 730A of the Taxes Act 1988 by subsection (8) of that section.”.