Taxation of Chargeable Gains Act 1992 section 263G

Power to modify repo provisions: redemption arrangements

Section 263G grants the Treasury the power to make regulations that modify certain repo-related provisions of the Act so that they can apply, with appropriate adjustments, to cases involving redemption arrangements.

• The Treasury may make regulations to modify the rules on deemed manufactured payments, repo price differences, and sale-and-repurchase agreements where redemption arrangements are involved
• A redemption arrangement arises where securities are sold and are due to be redeemed after the sale, with the seller (or a connected person) receiving rights to the redemption benefits instead of a repurchase obligation or option
• The securities in question must be UK shares, UK securities, or overseas securities
• The power to modify section 263A (sale and repurchase of securities) can only be exercised to the extent that section 263A applies to the cases described in section 263A(1)