4

See section 736D for provision treating certain arrangements as stock lending arrangements for the purposes of this section.

14

See section 736D—

a

for provision treating certain arrangements as stock lending arrangements for the purposes of this section, and

b

for provision treating certain amounts as cash collateral for those purposes.

736DQuasi-stock lending arrangements and quasi-cash collateral

1

In this section “quasi-stock lending arrangement” means so much of any arrangements between two or more persons as are not stock lending arrangements, but are arrangements under which—

a

a person (“the lender”) transfers securities to another person (“the borrower”), and

b

a requirement is imposed on a person to transfer any or all of the securities, or any other property, back to the lender or any other person,

and it does not matter whether the person on whom that requirement is imposed is the borrower or any other person.

2

In this section “quasi-cash collateral”, in relation to any stock lending arrangement or quasi-stock lending arrangement, means—

a

any money which is payable for a relevant purpose, plus

b

any other property which is transferable for a relevant purpose.

3

Money or other property is payable or transferable for a relevant purpose if it is payable or transferable to or for the benefit of—

a

the lender under the stock lending arrangement or quasi-stock lending arrangement, or

b

a person connected with that lender,

for the purpose of securing the discharge of the requirement to transfer any or all of the securities, or any other property, back to that lender or any other person.

4

For the purposes of sections 736B and 736C, a quasi-stock lending arrangement is treated as if it were a stock lending arrangement.

5

For the purposes of section 736C, in relation to any stock lending arrangement or quasi-stock lending arrangement,—

a

quasi-cash collateral is treated as if it were cash collateral, and

b

the amount of the quasi-cash collateral in relation to the stock lending arrangement or quasi-stock lending arrangement is taken to be the amount of the cash collateral.

6

If any property other than money is transferable for a relevant purpose, the amount of the quasi-cash collateral so far as relating to that property is determined by reference to its market value.

7

In any case where—

a

section 736C applies in relation to a quasi-stock lending arrangement, and

b

the person for whom the tax advantage was designed to be obtained is a person (“the other person”) other than the borrower under that arrangement,

that section has effect as if the other person were the person who receives the amount of interest mentioned in that section.

8

In any case where section 736C applies in relation to a quasi-stock lending arrangement—

a

any reference in that section to cash collateral being payable to or for the benefit of the lender includes its being payable to or for the benefit of a person connected with the lender,

b

the reference in subsection (1)(c) of that section to a return to the borrower includes a return to any other person, and

c

any reference in that section to the transfer back of the relevant securities by the borrower to the lender includes the transfer back of any or all of the securities, or any other property, by any person to the lender or any other person.

9

Section 839 (connected persons) applies for the purposes of this section.

10

In this section—

• “money” includes money expressed in a currency other than sterling,

• “property” means property in any form,

• “stock lending arrangement” and “securities” have the same meaning as in section 263B of the 1992 Act,

• “transfer” means a transfer otherwise than by way of sale.