What does Schedule 9 paragraph 45 of the Taxation (International and Other Provisions) Act 2010 do?

Schedule 9 paragraph 45 provides a transitional rule ensuring that the repo manufactured payment provisions in sections 925A to 925F of the Income Tax Act 2007 do not apply to any sale and repurchase arrangement that was already in force before 1 October 2007. This protects parties who entered into arrangements under the previous tax regime.

Which repo arrangements are excluded from sections 925A to 925F of ITA 2007 under this transitional provision?

Any repo arrangement that came into force before 1 October 2007 is excluded. Whether an arrangement was in force before that date is determined by reference to paragraph 14(6) of Schedule 13 to the Finance Act 2007, which defines when a repo arrangement is considered to be in force for this purpose.

How is the date a repo arrangement comes into force determined for the purposes of this transitional rule?

The date is determined by reference to paragraph 14(6) of Schedule 13 to the Finance Act 2007. That paragraph provides the specific definition of when a repo arrangement is considered to be in force, ensuring consistency between this transitional rule in TIOPA 2010 and the original repo legislation in the Finance Act 2007.

What are the practical consequences if a repo arrangement was entered into after 1 October 2007?

If a repo arrangement came into force on or after 1 October 2007, the manufactured payment rules in sections 925A to 925F and section 926(1A) of the Income Tax Act 2007 apply in full. These provisions govern the income tax treatment and deduction of tax at source on manufactured payments arising from the sale and repurchase arrangement.

Taxation (International and Other Provisions) Act 2010 section Schedule 9 paragraph 45

Application of sections 925A to 925F of ITA 2007 (repos)

Schedule 9 paragraph 45 sets out the transitional rule governing when the repo provisions inserted into the Income Tax Act 2007 take effect, specifically excluding arrangements that were already in force before 1 October 2007.

Sections 925A to 925F and section 926(1A) of the Income Tax Act 2007 deal with the income tax treatment of manufactured payments arising from sale and repurchase (repo) arrangements.
These provisions were inserted into the 2007 Act by Part 19 of Schedule 7 to the Taxation (International and Other Provisions) Act 2010.
The repo provisions do not apply to any arrangement that came into force before 1 October 2007.
Whether an arrangement is "in force" is determined by reference to paragraph 14(6) of Schedule 13 to the Finance Act 2007, which defines when a repo arrangement is considered to be in force.

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