F1Part 7AEmployment income provided through third parties
CHAPTER 1Application etc
Exclusions
554RAF2Exclusions: relevant repayments
1
This section applies (subject to subsection (5)) if—
a
a right to repayment of principal under a relevant loan (the “repayment right”) is held by or on behalf of a person (“P”), and
b
on or after 9 December 2010, a sum of money (the “repayment sum”) is acquired by or on behalf of P by way of repayment of principal under the relevant loan.
2
In this section “relevant loan” means a loan made on or after 6 April 1999.
3
Subsection (4) applies if—
a
on its acquisition, the repayment sum is the subject of a relevant step within section 554B taken by P, or
b
for the sole purpose of the acquisition, the making of the payment of the repayment sum is a relevant step within section 554C(1)(a).
4
Chapter 2 does not apply by reason of the relevant step if, on its acquisition, the repayment sum is held by or on behalf of P on the same basis as that on which the repayment right was held by or on behalf of P immediately before the acquisition.
5
This section does not apply where there is any connection (direct or indirect) between the acquisition by or on behalf of P of the repayment sum and a tax avoidance arrangement (other than the arrangement under which the relevant loan was made).
Pt. 7A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 1