Part 2Income tax, corporation tax and capital gains tax

Chapter 5Alternative finance arrangements

Arrangements giving rise to profit share return

49Alternative finance arrangements: profit share return

1

Subject to section 52, arrangements fall within this section if they are arrangements under which—

a

a person (“the depositor”) deposits money with a financial institution,

b

the money, together with money deposited with the institution by other persons, is used by the institution with a view to producing a profit,

c

from time to time the institution makes or credits a payment to the depositor, in proportion to the amount deposited by him, out of any profit resulting from the use of the money, and

d

the payments so made or credited by the institution equate, in substance, to the return on an investment of money at interest.

2

In this Chapter references to “profit share return” are references to amounts paid or credited as mentioned in subsection (1)(c) by a financial institution under arrangements falling within this section.