F1Part 10AAlternative finance arrangements
Introduction
564AIntroduction
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).
564BF2Meaning of “financial institution”
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,
F5d
a person with permission under Part 4A of the Financial Services and Markets Act 2000 to enter into, or to exercise or have the right to exercise rights and duties under, a contract of the kind mentioned in paragraph 23 or paragraph 23B of Schedule 2 to that Act (credit agreements and contracts for hire of goods);
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 F3section 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 F4section 139(1) of FA 2012.
F61A
Subsection (1)(d) must be read with—
a
section 22 of the Financial Services and Markets Act 2000,
b
any relevant order under that section, and
c
Schedule 2 to that Act.
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.
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)