Corporation Tax Act 2009 section 555

Cases where section 554 applies: non-standard repos

Section 555 identifies the specific circumstances involving non-standard repurchase agreements (repos) that trigger the Treasury's power under section 554 to modify the rules in this chapter by regulations.

• The section applies where a company has a repo, the securities have been sold under the repo arrangement, and at least one of three conditions (A, B, or C) is met.
• Condition A covers situations where the securities originally sold (or similar or other securities) are never subsequently bought back under the arrangement — in other words, the repurchase leg of the repo does not complete.
• Condition B covers situations where the arrangement provides for different or additional securities to be treated as representing the securities originally sold for the purposes of the subsequent purchase.
• Condition C covers situations where the arrangement provides for certain securities to be treated as excluded from those representing the securities originally sold.