Finance Act 2005

51 Treatment of alternative finance arrangements: persons other than companies U.K.

(1) Alternative finance return F1 ... is to be treated for the purposes of ITTOIA 2005 as if it were interest.

(2) Sections 353 to [F2 367 of ICTA and Chapter 1 of Part 8 of ITA 2007 (interest payments)] (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 [F3 of ICTA and section 412 of ITA 2007] (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 F4 ... 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 F5 ....

Textual Amendments

F1 Words in s. 51(1) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 655, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F2 Words in s. 51(2) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 598(a) (with Sch. 2)

F3 Words in s. 51(2) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 598(b) (with Sch. 2)

F4 Words in s. 51(4) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 655, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F5 Words in s. 51(5)(b) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 655, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)