Part 11Manufactured payments and repos

Chapter 1Introduction

565Overview of Part

(1)

This Part is about the income tax treatment of some arrangements for the transfer of securities.

(2)

Chapter 2 deals with arrangements for the transfer of securities under which provision is made for the payment of amounts representative of dividends or interest in respect of the securities.

(3)

Chapter 3 prevents parties to stock lending arrangements (see section 568) and repos (see section 569) from being entitled to tax credits in some circumstances.

(4)

Chapter 4 brings within the rules in Chapters 2 and 3—

(a)

some stock lending arrangements under which the dividends or interest in respect of the transferred securities are paid to a person other than the lender, and

(b)

some repos where the original owner is not entitled to the dividends or interest in respect of the transferred securities.

(5)

Chapter 5 deals with differences between the sale and repurchase price under repos.

(6)

Chapter 6 contains powers to modify some of the provisions about repos.