# The Income Tax (Stock Lending) Regulations 1989, Regulation 7: Conditions relating to the transfer of overseas securities


(1) The conditions specified in this regulation in relation to an arrangement mentioned in subsection (1) are–
(a) that the person referred to as A in the principal section is an approved borrower;
(b) that the person referred to as B in the principal section is an approved lender or an approved intermediary;
(c) that the arrangement is approved, or takes a form approved, by the Board;
(d) that the securities to which the arrangement relates are held overseas;
(e) that the contract of sale mentioned in the subsection provides that A will deliver outside the United Kingdom the securities he has contracted to sell.
(2) The conditions specified in this regulation in relation to an arrangement mentioned in subsection (2) are–
(a) that B is an approved intermediary;
(b) that the person referred to as C in the principal section, and any person for whom C is acting in connection with the arrangement as a nominee, is an approved lender;
(c) that the arrangement is approved, or takes a form approved, by the Board;
(d) that the securities to which the arrangement relates are held overseas.
(3) In this regulation–
“approved borrower” means a person who at the time when the arrangement is made–
(a) is a market maker in securities of the kind which are the subject of the arrangement, or
(b) is approved as such by the Board for the purposes of this regulation;
“approved intermediary” means a person who, at the time when the arrangement is made–
(a) is a member of the Stock Exchange who carries on business as a money broker and is approved as such by the Board for the purposes of this regulation, or
(b) is approved as such by the Board for the purposes of this regulation;
“approved lender” means a person who, at the time when the arrangement is made, is approved as a lender by the Board for the purposes of this regulation;
“held overseas” means held by B or C, as the case may be, in such circumstances that any interest, dividends or other annual payments payable out of or in respect of securities so held are not within the charge to tax under the Schedule referred to as Schedule C in section 17 of the Taxes Act 1988 or the charge to tax under Schedule D by virtue of section 123 of that Act.

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Source: https://www.legislation.gov.uk/uksi/1989/1299/regulation/7 (the official version)
Page: https://openlegislation.uk/income-tax-stock-lending-regulations-1989/regulation-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.