Income Tax Act 2007 (c. 3)

[F1 Part 10A U.K. Alternative finance arrangements

Textual Amendments

F1 Pt. 10A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 2 (with Sch. 9 paras. 1-9, 22)

Introduction U.K.

564A Introduction U.K.

(1) This Part—

(a) contains provisions about the treatment as interest for certain income tax purposes of alternative finance return under alternative finance arrangements with financial institutions (see sections 564M to 564Q), and

(b) contains some special provisions about the treatment of investment bond arrangements (see sections 564R to 564U) and some other rules about alternative finance arrangements (see sections 564V to 564Y).

(2) In this Part “alternative finance arrangements” means—

(a) purchase and resale arrangements,

(b) diminishing shared ownership arrangements,

(c) deposit arrangements,

(d) profit share agency arrangements, and

(e) investment bond arrangements.

(3) In this Part—

(a) “purchase and resale arrangements” means arrangements to which section 564C applies,

(b) “diminishing shared ownership arrangements” means arrangements to which section 564D applies,

(c) “deposit arrangements” means arrangements to which section 564E applies,

(d) “profit share agency arrangements” means arrangements to which section 564F applies, and

(e) “investment bond arrangements” means arrangements to which section 564G applies.

(4) For the meaning of “alternative finance return”, see sections 564I to 564L.

(5) For the meaning of “financial institution”, see section 564B.

(6) Also, see section 366 of TIOPA 2010 (power to extend this Part and other provisions to other arrangements by order).]

[F2 564B Meaning of “financial institution” U.K.

(1) In this Part “financial institution” means—

(a) a bank, as defined by section 991,

(b) a building society,

(c) a wholly-owned subsidiary—

(i) of a bank within paragraph (a), or

(ii) of a building society,

(d) a person authorised by a licence under Part 3 of the Consumer Credit Act 1974 to carry on a consumer credit business or consumer hire business within the meaning of that Act,

(e) a bond-issuer, within the meaning of section 564G, but only in relation to any bond assets which are rights under purchase and resale arrangements, diminishing shared ownership arrangements or profit share agency arrangements,

(f) a person authorised in a jurisdiction outside the United Kingdom—

(i) to receive deposits or other repayable funds from the public, and

(ii) to grant credits for its own account,

(g) an insurance company as defined in [F3 section 65 of FA 2012], or

(h) a person who is authorised in a jurisdiction outside the United Kingdom to carry on a business which consists of effecting or carrying out contracts of insurance or substantially similar business but not an insurance special purpose vehicle as defined in [F4 section 139(1) of FA 2012].

(2) For the purposes of subsection (1)(c) a company is a wholly-owned subsidiary of a bank or building society (“the parent”) if it has no members except—

(a) the parent or persons acting on behalf of the parent, and

(b) the parent's wholly-owned subsidiaries or persons acting on behalf of the parent's wholly-owned subsidiaries.]

Textual Amendments

F2 S. 564B inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 3 (with Sch. 9 paras. 1-9, 22)

F3 Words in s. 564B(1)(g) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 133(a)

F4 Words in s. 564B(1)(h) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 16 para. 133(b)