Corporation Tax Act 2009

510 Application of Part 5 to particular alternative finance arrangements U.K.

(1) In the case of purchase and resale arrangements, Part 5 applies in relation to A as if—

(a) the first purchase price were the amount of a loan made by the first purchaser to the second purchaser, and

(b) alternative finance return payable under the arrangements were interest payable on the loan.

(2) In the case of diminishing shared ownership arrangements, Part 5 applies in relation to A as if—

(a) the consideration paid by the first owner for the acquisition of the first owner's beneficial interest (“the acquisition consideration”) were the amount of a loan made by A to the eventual owner, and

(b) alternative finance return payable under the arrangements were interest payable on the loan.

(3) In the case of deposit arrangements, Part 5 applies in relation to A as if—

(a) any amount deposited under the arrangements were the amount of a loan made by the depositor to the financial institution, and

(b) alternative finance return payable under them were interest on the loan.

(4) In the case of profit share agency arrangements, Part 5 applies in relation to A as if—

(a) any amount provided under the arrangements were the amount of a loan made by the principal to the agent, and

(b) alternative finance return payable under them were interest on the loan.

(5) In the case of investment bond arrangements, Part 5 applies in relation to A as if alternative finance return payable to or by A under them were interest payable under the loan relationship.

(6) In this section—

• “the depositor” has the same meaning as in section 505 (see subsection (1) of that section),

• “the eventual owner” has the same meaning as in section 504 (see subsection (1) of that section),

• “the first owner” has the same meaning as in section 504 (see subsection (1) of that section),

• “the first purchaser” has the same meaning as in section 503 (see subsection (1) of that section),

• “the first purchase price” has the same meaning as in section 503 (see subsection (3) of that section),

• “the principal” has the same meaning as in section 506 (see subsection (1) of that section), and

• “the second purchaser” has the same meaning as in section 503 (see subsection (1) of that section).

(7) For the meaning of “alternative finance return”, see sections 511 to 513.