Taxation of Chargeable Gains Act 1992 section 261H

Power to modify section 261G in non-arm's length case

Section 261H gives the Treasury the power to make regulations that modify how the rules on price differences under repurchase agreements (repos) apply when the parties are not dealing at arm's length.

• The Treasury may make regulations to modify the chargeable gains rules on repo price differences where a non-arm's length exception would otherwise prevent those rules from applying.
• Regulations may vary for different cases and may include incidental, supplemental, consequential, and transitional provisions and savings.
• The supplementary provisions may also modify the rules on how deemed manufactured payments affect the repurchase price under section 261F.
• "Modifications" is broadly defined to include exceptions and omissions, meaning the Treasury can disapply any part of the repo price difference rules in non-arm's length situations.