Section 261F — Income Tax Act 2007: Deemed manufactured payments: effect on repurchase price

Deemed manufactured payments: effect on repurchase price 261F 1 This section applies if —

a the repurchase price of UK shares, UK securities or overseas securities is treated by section 604(2), (4) or (5) of ITA 2007 (deemed increase in repurchase price: repos and options) as increased for the purposes of section 607 of that Act (treatment of price differences under repos),

b condition A or B is met, and c section 263A does not apply.

2 Condition A is that, as a result of the increase, there is no difference for the purposes of section 607 of that Act between the sale price and the repurchase price.

3 Condition B is that, as a result of an exception in section 608 of that Act, section 607 of that Act does not apply.

4 The deemed increase of the repurchase price also has effect for capital gains tax purposes.

5 Expressions used in this section and in section 605 of ITA 2007 (deemed increase in repurchase price: other income tax purposes) have the same meanings in this section as in that section.