CFM17550 - Repos: FA 2007 rules for companies: creditor repo and creditor quasi-repo examples

This guidance describes the corporation tax treatment of sale and repurchase arrangements (“repos”) where the initial sale of securities takes place on or after 1 October 2007

Creditor repos and creditor quasi-repos: examples

CFM17550a gives an example of a creditor repo where no income arises during the term of the repo.

CFM17550b gives an example of a creditor repo where income arises during the term of the repo and a manufactured payment is made (a “gross-paying” transaction).

CFM17550c gives an example of a creditor repo where income arises during the term of the repo and no manufactured payment is made (a “net-paying” transaction).

CFM17550d gives examples of creditor quasi-repos.


As in the debtor examples ( CFM17528a+), the repo finance return rate is 6% per annum.