Income and Corporation Taxes Act 1988 (c. 1)

PART II U.K. [F1 PROVISIONS RELATING TO THE SCHEDULE A CHARGE]

Textual Amendments

F1 Pt. 2 heading substituted (with effect as mentioned in s. 38(2)(3) of the amending Act) by Finance Act 1998 (c. 36), s. 38(1), Sch. 5 para. 3 (with Sch. 5 para. 73)

[F2 Rent factoring U.K.

Textual Amendments

F2 Ss. 43A-43G and cross-heading inserted (with effect in accordance with s. 110(2) of the amending Act) by Finance Act 2000 (c. 17), s.110(1)

43C Transfer of rent: exceptions, &c. U.K.

(1) F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Section 43B shall not apply to a finance agreement if—

(a) the arrangements for the reduction of the financial obligation substantially depend on a person’s entitlement to an allowance under [F4 the Capital Allowances Act (including enactments which under this Act are to be treated as contained in that Act)], and

(b) that person is not connected to the person from whom the right to receive rent is transferred.

(3) Section 43B shall not apply to a finance agreement if—

(a) section 36(1) applies (without reference to section 36(3)), F5 . . .

(b) section 36(1) would apply (without reference to section 36(3)) if the price at which an estate or interest is sold were to exceed the price at which it is to be reconveyed,]

[F6 (c) section 284 of ITTOIA 2005 applies, or

(d) that section would apply if the price at which an estate or interest is sold were to exceed the price at which it is to be reconveyed.]

(4) If—

(a) section 36(1) would apply in relation to a finance agreement by virtue only of section 36(3), and

(b) section 43B applies in relation to the agreement,

section 36(1) shall not apply.

[F7 (4A) If—

(a) section 285 of ITTOIA 2005 would apply in relation to a finance agreement, and

(b) section 43B applies in relation to the agreement,

section 285 of ITTOIA 2005 shall not apply.]

(5) Section 43B shall not apply to a finance agreement if section 780 applies.

(6) Section 43B(2) shall not apply to a finance amount which is brought into account—

[F8 (a)] in computing the profits of a trade for the purposes of Case I of Schedule D (otherwise than by virtue of section 83 of the M1 Finance Act 1989 (life assurance)),[F9 or

(b) in computing under Chapter 2 of Part 2 of ITTOIA 2005 the profits of a trade carried on wholly or partly in the United Kingdom.]

Textual Amendments

F3 S. 43C(1) repealed (with effect in accordance with Sch. 7 para. 1(4)-(8) of the repealing Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 7 para. 1(2), Sch. 11 Pt. 2(8), Note

F4 Words in s. 43C(2)(a) substituted (with effect in accordance with s. 579 of the amending Act) by Capital Allowances Act 2001 (c. 2), s. 578, Sch. 2 para. 11

F5 Word at the end of s. 43C(3)(a) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 27(2)(a), Sch. 3 (with Sch. 2)

F6 S. 43C(3)(c)(d) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 27(2)(b) (with Sch. 2)

F7 S. 43C(4A) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 27(3) (with Sch. 2)

F8 Words in s. 43C(6) renumbered as s. 43C(6)(a) (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by virtue of Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 27(4)(a) (with Sch. 2)

F9 S. 43C(6)(b) and preceding word inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 27(4)(b) (with Sch. 2)

Marginal Citations

M1 1989 c. 26.