[F1263EStructured finance arrangementsU.K.
(1)This section applies if—
(a)[F2section 809BZB or 809BZC of ITA 2007] [F3or section 759 or 760 of CTA 2010] (disregard of intended effects of arrangement involving disposals of assets) applies in relation to a structured finance arrangement,
(b)the borrower or a person connected with the borrower makes a disposal of any security at any time under the arrangement to or for the benefit of the lender or a person connected with the lender, and
(c)condition A or B is met.
(2)Condition A is that the person making the disposal [F4(and no-one else) has the right or obligation under the arrangement to acquire the asset disposed of by that disposal at any subsequent time (whether or not the right or obligation is subject to any conditions).]
(3)Condition B is that—
(a)the asset disposed of by that disposal [F5will subsequently cease] to exist at any time, and
(b)[F6it is intended that that asset will be held] by the lender, or a person connected with the lender, from the time of the disposal until that time.
(4)The disposal of the security by the borrower or a person connected with the borrower is to be disregarded for the purposes of this Act.
[F7(4A)If, at any time after that disposal, it becomes apparent that—
(a)the person making the disposal will not subsequently acquire under the arrangement the asset disposed of by that disposal, or
(b)that asset will not be held as mentioned in subsection (3)(b),
that person is to be treated for the purposes of this Act as disposing of that asset at that time for a consideration equal to its market value at that time.]
(5)[F8Except in a case falling within subsection (4A), any] subsequent acquisition by the person making the disposal of the asset disposed of by that disposal is to be disregarded for the purposes of this Act.
(6)In this section—
“the borrower”, in relation to a structured finance arrangement, means the person who is the borrower under the arrangement for the purposes of [F9the defining section],
[F10“the defining section” in relation to a structured finance arrangement—
(a)means section 809BZA of ITA 2007 if it is section 809BZB or 809BZC of ITA 2007 that applies in relation to the arrangement, and
(b)means section 758 of CTA 2010 if it is section 759 or 760 of CTA 2010 that applies in relation to the arrangement,]
“the lender”, in relation to a structured finance arrangement, means the person who is the lender under the arrangement for the purposes of [F11the defining section],
“security” means any such asset as is mentioned in [F12subsection (2)(b) and (c) of the defining section].
(7)For the purposes of this section—
(a)references to a person connected with the borrower do not include the lender, and
(b)references to a person connected with the lender do not include the borrower.]
Textual Amendments
F1S. 263E inserted (with effect in accordance with Sch. 6 para. 9(2)(3) of the amending Act) by Finance Act 2006 (c. 25), Sch. 6 para. 9(1)
F2Words in s. 263E(1)(a) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 268(2) (with Sch. 9 paras. 1-9, 22)
F3Words in s. 263E(1)(a) inserted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 260 (with Sch. 2)
F4Words in s. 263E(2) substituted (with effect in accordance with Sch. 5 para. 8(6)(7) of the amending Act) by Finance Act 2007 (c. 11), Sch. 5 para. 8(2)
F5Words in s. 263E(3)(a) substituted (with effect in accordance with Sch. 5 para. 8(6)(7) of the amending Act) by Finance Act 2007 (c. 11), Sch. 5 para. 8(3)(a)
F6Words in s. 263E(3)(b) substituted (with effect in accordance with Sch. 5 para. 8(6)(7) of the amending Act) by Finance Act 2007 (c. 11), Sch. 5 para. 8(3)(b)
F7S. 263E(4A) inserted (with effect in accordance with Sch. 5 para. 8(6)(7) of the amending Act) by Finance Act 2007 (c. 11), Sch. 5 para. 8(4)
F8Words in s. 263E(5) substituted (with effect in accordance with Sch. 5 para. 8(6)(7) of the amending Act) by Finance Act 2007 (c. 11), Sch. 5 para. 8(5)
F9Words in s. 263E(6) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 268(3) (with Sch. 9 paras. 1-9, 22)
F10Words in s. 263E(6) inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 268(4) (with Sch. 9 paras. 1-9, 22)
F11Words in s. 263E(6) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 268(5) (with Sch. 9 paras. 1-9, 22)
F12Words in s. 263E(6) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 268(6) (with Sch. 9 paras. 1-9, 22)