Section 542 Introduction to Chapter
United Kingdom
The purpose of this Chapter is to secure that in the case of an arrangement—
which involves the sale of securities and the subsequent purchase of those or similar securities, and
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.
Sections 543 to F1546 make provision about arrangements which are creditor repos or creditor quasi-repos.
Sections 548 to 551 make provision about arrangements which are debtor repos or debtor quasi-repos.
Annotations
Textual amendments
- F1
Figure in s. 542(2) substituted (retrospective and with effect in accordance with Sch. 24 paras. 12, 13-16 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 24 paras. 10, 12
Notes on Part 6
Modifications
- C1
Pt. 6 modified (for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed)) by 2005 c. 5, Sch. A1 para. 35(7) (as inserted by Finance Act 2026 (c. 11), s. 58(6), Sch. 11 para. 1)