Taxation of Chargeable Gains Act 1992 section 263F

Power to modify repo provisions: non-standard repo cases

Section 263F gives the Treasury the power to make regulations modifying how certain capital gains tax provisions on repurchase agreements (repos) apply where the repo arrangement departs from a straightforward sale and buyback of identical securities.

• The Treasury may issue regulations to modify sections 261F, 261G and 263A so that they work appropriately for non-standard repo arrangements
• A repo is non-standard if any of five specified conditions (A to E) is met — for example, the buyback obligation is not fulfilled, the securities to be repurchased differ from those originally sold, or prices are linked to post-agreement value fluctuations
• Post-agreement fluctuations are changes in the value of the originally sold securities, or their representative substitutes, occurring after the date the original sale agreement was made
• Representative securities are substitute securities that stand in for the originally transferred securities when the repurchase takes place