# The European Single Currency (Taxes) Regulations 1998, Regulation 23: Payment made by borrower to lender in respect of euroconversion—chargeable gains consequences


(1) This regulation applies in a case where—
(a) there is a stock lending arrangement in relation to securities, and
(b) a payment representative of a capital payment resulting from a euroconversion of those securities is made by the borrower to the lender.
(2) The representative payment shall be treated, for all purposes of the Taxes Acts—
(a) as a capital payment received by the lender in respect of the euroconversion of the securities concerned on such date as it is reasonable to assume would have been, but for the arrangement, the first date on which the lender could have received the capital payment, and
(b) as deductible by the borrower in computing any capital gain arising—
(i) on a disposal of the securities received by the borrower under the arrangement, or
(ii) where the euroconversion is effected by means of an exchange of securities, on a disposal of the securities received by the borrower in exchange for the original securities received by him under the arrangement.

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Source: https://www.legislation.gov.uk/uksi/1998/3177/regulation/23 (the official version)
Page: https://openlegislation.uk/european-single-currency-taxes-regulations-1998/regulation-23
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.