Section 925A — Income Tax Act 2007: Creditor repos

Creditor repos 925A 1 Subsection (2) applies if a company (“ the lender ”) has a creditor repo for the purposes of Chapter 10 of Part 6 of CTA 2009 (see section 543 of that Act).

2 Sections 918 , 919 and 921 have effect in relation to the lender while the arrangement is in force as if—

a the lender paid the borrower amounts which are representative of the income payable on the securities that are initially sold, b the payments were made under requirements of the arrangement, and c the payments were made on the dates on which the income is payable.

3 For the purposes of subsection (2), an arrangement is in force from the time when the securities are initially sold until the earlier of—

a the time when the subsequent sale of the securities, or similar securities, takes place, and b the time when it becomes apparent that that sale will not take place.