Section 542 — Corporation Tax Act 2009: Introduction to Chapter

Introduction to Chapter 542 1 The purpose of this Chapter is to secure that in the case of an arrangement—

a which involves the sale of securities and the subsequent purchase of those or similar securities, and b which equates, in substance, to a transaction for the lending of money at interest from or to a company, with the securities which were sold as collateral for the loan, the charge to corporation tax reflects the fact that the arrangement equates, in substance, to such a transaction.

2 Sections 543 to 546 make provision about arrangements which are creditor repos or creditor quasi-repos.

3 Sections 548 to 551 make provision about arrangements which are debtor repos or debtor quasi-repos.