753A Interpretation (Chapter 3).

In this Chapter—

“Act of 1999” means the Stamp Duty Consolidation Act 1999;

“building society” has the same meaning as it has in Chapter 4 of Part 8;

“equivalent stock” —

(a) in relation to a stock borrowing, has the same meaning as it has in section 87 of the Act of 1999, and

(b) in relation to a repurchase agreement, has the same meaning as it has in section 87A of the Act of 1999;

“financial transaction” means a transaction comprising—

(a) a stock borrowing or a stock transfer in respect of which—

(i) the stock seller or stock buyer is a qualifying institution, and

(ii) the other party is not an individual or a partnership, and

(b) the corresponding stock return for that stock borrowing or stock transfer,

where it is reasonable to consider that the transaction, and all associated agreements, arrangements or transactions, are equivalent to a transaction or agreement for the lending of money, or money’s worth, at interest;

“investment undertaking” has the same meaning as it has in Chapter 1A of Part 27;

“lender” has the same meaning as it has in section 87 of the Act of 1999;

“manufactured payment” means a payment by a stock buyer to a stock

seller, whether made directly or indirectly, to reimburse that stock seller for any distribution or interest arising or accruing to the stock buyer as a consequence of the transfer of the qualifying securities as part of a financial transaction;

“pension scheme” has the same meaning as it has in Chapter 4 of Part 8;

“qualifying institution” means—

(a) a company within the charge to corporation tax,

(b) an investment undertaking,

(c) a pension scheme,

(d) a scheme, the income of which, in whole or in part, is exempt from income tax under section 790B,

(e) a person whose income, in whole or in part, is exempt—

(i) from income tax, pursuant to section 207(1)(b), or

(ii) corporation tax, by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6),

or

(f) a building society;

“qualifying securities” means—

(a) securities that are interest bearing, discounted or premium-bearing, or

(b) stocks or shares that are quoted on a recognised stock exchange; “repo seller” has the same meaning as it has in section 87A of the Act of 1999;

“repo buyer” has the same meaning as it has in section 87A of the Act of 1999;

“repurchase agreement” means a repurchase agreement (within the meaning of section 87A of the Act of 1999) in respect of qualifying securities;

“security” has the same meaning as it has in Chapter 2 of Part 6;

“stock borrower” has the same meaning as it has in section 87 of the Act of 1999;

“stock borrowing” means a stock borrowing (within the meaning of section 87 of the Act of 1999) in respect of qualifying securities;

“stock buyer” means—

(a) in relation to a stock borrowing, a stock borrower, and

(b) in relation to a repurchase agreement, a repo buyer;

“stock return” —

(a) in relation to a stock borrowing, has the same meaning as it has in section 87 of the Act of 1999, and

(b) in relation to a repurchase agreement, has the same meaning as it has in section 87A of the Act of 1999,

in each case subject to the modification that a reference in the definition of that term in the section concerned to “stock” shall be construed as a reference to qualifying securities;

“stock transfer” , in respect of a repurchase agreement, means a stock transfer (within the meaning of section 87A of the Act of 1999);

“stock seller” means—

(a) in relation to a stock borrowing, a lender, and

(b) in relation to a repurchase agreement, a repo seller.