Section 542 | Introduction to Chapter

(1)The purpose of this Chapter is to secure that in the case of an arrangement—

(a)which involves the sale of securities and the subsequent purchase of those or similar securities, and

(b)which equates, in substance, to a transaction for the lending of money at interest from or to a company, with the securities which were sold as collateral for the loan,

the charge to corporation tax reflects the fact that the arrangement equates, in substance, to such a transaction.

(2)Sections 543 to 546 make provision about arrangements which are creditor repos or creditor quasi-repos.

(3)Sections 548 to 551 make provision about arrangements which are debtor repos or debtor quasi-repos.