Article 2 Amendment of the Manufactured Overseas Dividends (French Indemnity Payments) Regulations 1996 (S.I. 1996/1826)

The Manufactured Overseas Dividends (French Indemnity Payments) Regulations 1996^f1 are amended as follows.

In regulation 2 (interpretation) for paragraph (3) substitute—

“(3)

For the purposes of the Income Tax Acts references in these Regulations to “the sale and repurchase of French equities” include an arrangement which—

(a)

involves the sale of French equities and the subsequent purchase of French equities, and

(b)

is a repo.

(4)

In paragraph (3) “repo” shall be construed in accordance with section 569 of the Income Tax Act 2007^f2 (read, if appropriate, with the modifications made by the Sale and Repurchase of Securities (Modification of Enactments) Regulations 2007)^f3.

(5)

For the purposes of the Corporation Tax Acts references in these Regulations to “the sale and repurchase of French equities” include an arrangement which—

(a)

involves the sale of French equities and the subsequent purchase of French equities, and

(b)

is a debtor repo, a debtor quasi-repo, a creditor repo or a creditor quasi-repo.

(6)

In paragraph (5) “debtor repo”, “debtor quasi-repo”, “creditor repo” and “creditor quasi-repo” shall be construed in accordance with Schedule 13 to the Finance Act 2007 (read, if appropriate, with the modifications made by the Sale and Repurchase of Securities (Modification of Schedule 13 to the Finance Act 2007) Regulations 2007^f4).”.