Income Tax Act 2007

Part 13 Accrued income profits

Sale and repurchase arrangements

125 (1) Section 655 applies only if—

(a) in the case of overseas securities, the agreement to sell the securities mentioned in section 654(2) is entered into after 5 November 1996, and

(b) in any other case, the agreement to sell the securities so mentioned is entered into after 30 April 1995.

(2) In sub-paragraph (1) “overseas securities” has the same meaning as in Part 11 (see section 567).

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.”

Successive transfers with unrealised interest in default

127 Section 661 does not apply if the transferor’s acquisition was before 28 February 1986.

Unrealised interest received by transferee after transfer within Chapter 2 of Part 12

128 If the transfer of securities within section 681(1)(a) occurred before 19 March 1986, section 681(1) has effect with the omission of paragraph (b).