Income Tax Act 2007 section 598

Cash collateral under stock lending arrangements: supplementary

Section 598 provides supplementary rules that support the treatment of manufactured payments where cash collateral is provided under stock lending arrangements, as set out in section 597.

• This section contains additional definitions and conditions that apply alongside section 597's rules on cash collateral under stock lending arrangements.
• It clarifies the meaning of key terms used in connection with the cash collateral provisions, ensuring consistent application of the rules.
• The section covers references to cash collateral expressed in currencies other than sterling — the original ICTA provision explicitly stated that money includes foreign currency, but this clarification was considered unnecessary and has been omitted from the rewrite.
• The provisions originate from section 736C(8), (10) and (12) to (14) of the Income and Corporation Taxes Act 1988, as amended by Finance Act 2013.

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