[263CA Stock lending: insolvency etc of borrower]
Taxation of Chargeable Gains Act 1992 (1992 c 12) | Legislation

[263CA  Stock lending: insolvency etc of borrower]

[(1)     This section applies where, in the case of any stock lending arrangement—

(a)     the borrower (B) becomes insolvent after the lender (L) has transferred the securities,

(b)     as a result of the insolvency, the requirement for B to make a transfer back to L will not be complied with as regards some or all of the securities,

(c)     collateral is used (whether directly or indirectly) to enable L to acquire securities (“replacement securities”) of the same description as the securities which will not be transferred back, and

(d)     the replacement securities are acquired before the end of the period of 30 days beginning with the day on which B becomes insolvent (“the insolvency date”).

(2)     In accordance with section 263B(2), the transfer of the securities under the arrangement is not to be regarded as a disposal by L for the purposes of this Act (but this is subject to subsection (5)).

(3)     B is to be treated for the purposes of this Act as having acquired the securities which

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