Regulation 5 Amendments to the principal Regulations

In regulation 4(1) after sub-paragraph (t)^f1 add—

“(u)

a payment of interest in respect of an amount of cash which is—

(i)

received by the building society in connection with a sale and repurchase agreement in circumstances where section 730A of the Taxes Act (treatment of price differential on sale and repurchase of securities) applies^f2, and

(ii)

required as a result of a variation in the value of the securities as security for performance by the parties to the agreement of their obligations under the agreement.”.