Part 2Income tax, corporation tax and capital gains tax
Chapter 5Alternative finance arrangements
Treatment of alternative finance arrangements
51Treatment of alternative finance arrangements: persons other than companies
(1)
Alternative finance return or profit share return is to be treated for the purposes of ITTOIA 2005 as if it were interest.
(2)
Sections 353 to 368 of ICTA (relief for payments of interest) have effect as if—
(a)
arrangements falling within section 47 involved the making of a loan, and
(b)
alternative finance return were interest;
and section 366 (information) shall have effect accordingly.
(3)
Subsections (4) and (5) apply to the extent that a person other than a company is a party to alternative finance arrangements for the purposes of a trade, profession or vocation carried on by him or for the purposes of a property business of his.
(4)
Alternative finance return or profit share return paid by him is to be treated as an expense of the trade, profession or vocation or of the property business.
(5)
Section 58 of ITTOIA 2005 (incidental costs of obtaining finance) has effect as if—
(a)
references to a loan included references to alternative finance arrangements, and
(b)
references to interest included references to alternative finance return or profit share return.