Income Tax Act 2007 section 657

Power to modify: redemption arrangements

Section 657 gives the Treasury the power to make regulations that modify how the rules on sale and repurchase arrangements (in section 655) apply where securities are due to be redeemed rather than repurchased.

• The Treasury may issue regulations to adapt section 655 for cases involving redemption arrangements
• Redemption arrangements arise where agreements mirror sale and repurchase structures but the securities are due to be redeemed after sale
• The securities involved must be UK shares, UK securities, or overseas securities
• Instead of an obligation or option to repurchase, the seller (or a connected person) receives rights to the benefits arising from the redemption