Section EW 52 — Income Tax Act 2007: Share supplier under share-lending arrangement

EW 52 Share supplier under share-lending arrangement When this section applies (1) This section applies to a person who— (a) acquires a share under a financial arrangement (the original financial arrangement ); and (b) is the share supplier for a share-lending arrangement; and (c) disposes of the share to the share user as an original share under the share-lending arrangement. Treatment of reacquisition of original share (2) If the person reacquires the original share under the share-lending arrangement, for the purposes of applying the financial arrangements rules to the original financial arrangement,— (a) the person did not dispose of the original share to the share user; and (b) the person continued to own the original share until the time that the person reacquired the original share. Treatment of acquisition of replacement share (3) If the person acquires an identical share under the share-lending arrangement, for the purposes of the financial arrangements rules in relation to the original financial arrangement,— (a) the identical share is the share that the person acquired under the original financial arrangement; and (b) the person continued to own the identical share until the time that the person acquired the replacement share. Defined in this Act: financial arrangement , financial arrangements rules , identical share , original share , share , share-lending arrangement , share supplier , share user , Compare: 2004 No 35 s EW 52B