Finance Act 2005

84 Taxation of securitisation companies U.K.

(1) The Treasury may make provision by regulations as to the application of the Corporation Tax Acts in relation to a securitisation company.

(2) For the purposes of this section a “securitisation company” means a company—

(a) in relation to which the following conditions are met—

(i) it is party as debtor to a capital market investment,

(ii) securities representing that capital market investment are issued, and

(iii) the capital market investment is part of a capital market arrangement,

and which meets such other conditions as may be specified; or

(b) of a description specified by reference to its relationship, direct or indirect, with a company within paragraph (a).

(3) The regulations may, in particular—

(a) provide for the application, modification or non-application of any of the provisions of the Corporation Tax Acts;

(b) provide—

(i) that the amount of profits of any specified description (before any such adjustments as are mentioned in paragraph (c)) is to be taken to be such amount, or is to be calculated on such basis, as may be specified, and

(ii) that that amount is to be brought into account for corporation tax purposes instead of any specified amount that would otherwise fall to be brought into account;

(c) provide for specified adjustments to be made to the amount to be brought into account for corporation tax purposes;

(d) provide—

(i) that the regulations apply to a company only if an election to that effect is made, [F1 and]

F2 (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) that once subject to the regulations a company shall continue to be so for all subsequent periods of account;

(e) impose conditions that must be met if a company is to have, or continue to have, the benefit of the regulations; and

(f) provide for the consequences of failing to meet any specified condition (which may include recalculating, on the basis that the regulations did not apply, the company's profits for previous periods).

(4) The regulations may make different provision for different descriptions of company.

(5) Regulations under this section may—

F3 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in any case, make provision having effect from the beginning of periods of account current when the regulations are made.

(6) In this section—

• “capital market investment” and “capital market arrangement” have the same meaning as in section 72B(1) of the Insolvency Act 1986 (c. 45) (see paragraphs 1, 2 and 3 of Schedule 2A to that Act); and

• “specified” means specified in regulations under this section.

(7) The first regulations under this section shall not be made unless a draft of the regulations has been laid before and approved by a resolution of the House of Commons.

Textual Amendments

F1 Word in s. 84(3)(d)(i) inserted (retrospectively) by Finance Act 2006 (c. 25), s. 101(5)(a)(i)(6) (with s. 101(7)-(8))

F2 S. 84(3)(d)(ii) and word repealed (retrospectively) by Finance Act 2006 (c. 25), s. 101(5)(a)(ii)(6), Sch. 26 Pt. 3(19) (with s. 101(7)-(8))

F3 S. 84(5)(a) repealed (retrospectively) by Finance Act 2006 (c. 25), s. 101(5)(b)(6), Sch. 26 Pt. 3(19) (with s. 101(7)-(8))