Corporation Tax Act 2010 section 807

"Creditor repo", "creditor quasi-repo", "debtor repo" and "debtor quasi-repo"

Section 807 defines the key terms used to classify different types of repo and quasi-repo arrangements, distinguishing between creditor and debtor positions in these transactions.

• A "creditor repo" is an arrangement where a company buys securities and agrees to sell them back (or sell similar securities) to the original seller, effectively acting as a lender in the transaction.
• A "creditor quasi-repo" is similar to a creditor repo but involves a wider set of arrangements that achieve the same economic effect without necessarily being structured as a straightforward sale and repurchase agreement.
• A "debtor repo" is an arrangement where a company sells securities and agrees to buy them back (or buy similar securities), effectively acting as a borrower in the transaction.
• A "debtor quasi-repo" mirrors the debtor repo but covers arrangements that achieve the same economic outcome through alternative structures rather than a direct sale and repurchase.