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Section 263B: Stock lending arrangements.

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part VII: Other property, businesses, investments etc.

In this section "stock lending arrangement" means so much of any arrangements between two persons ("the borrower" and "the lender") as are arrangements under which—

the lender transfers securities to the borrower otherwise than by way of sale; and
a requirement is imposed on the borrower to transfer those securities back to the lender otherwise than by way of sale.

Subject to the following provisions of this section and sections 263C(2) and 263CA(3) and (5), the disposals and acquisitions made in pursuance of any stock lending arrangement shall be disregarded for the purposes of capital gains tax.

Where—

the borrower under any stock lending arrangement disposes of any securities transferred to him under the arrangement,
that disposal is made otherwise than in the discharge of the requirement for the transfer of securities back to the lender, and
that requirement, so far as it relates to the securities disposed of, has been or will be discharged by the transfer of securities other than those transferred to the borrower,

any question relating to the acquisition of the securities disposed of shall be determined (without prejudice to the provisions of Chapter I of Part IV) as if the securities disposed of were the securities with which that requirement (so far as relating to the securities disposed of) has been or will be discharged.

References in this section, in relation to a person to whom securities are transferred, to the transfer of those securities back to another person shall be construed as if the cases where those securities are taken to be transferred back to that other person included any case where securities of the same description as those securities are transferred to that other person either—

in accordance with a requirement to transfer securities of the same description; or
in exercise of a power to substitute securities of the same description for the securities that are required to be transferred back.

For the purposes of this section securities shall not be taken to be of the same description as other securities unless they are in the same quantities, give the same rights against the same persons and are of the same type and nominal value as the other securities.

In this section "securities" has the meaning given by section 263AA.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.