Income Tax Act 2007

[F1 Other rules U.K.

Textual Amendments

F1 S. 564V and cross-heading 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. 23 (with Sch. 9 paras. 1-9, 22)

564V Exclusion of alternative finance return from consideration for sale of assets U.K.

(1) If under purchase and resale arrangements an asset is sold by one party to the arrangements to the other party, the alternative finance return is excluded in determining the consideration for the sale and purchase of the asset for the purposes of the Income Tax Acts (apart from section 564C).

(2) If under diminishing shared ownership arrangements an asset is sold by one party to the arrangements to the other party, the alternative finance return is excluded in determining the consideration for the sale and purchase of the asset for the purposes of the Income Tax Acts (apart from section 564D).

(3) If under investment bond arrangements an asset is sold by one party to the arrangements to the other party, the alternative finance return is excluded in determining the consideration for the sale and purchase of the asset for the purposes of the Income Tax Acts (apart from section 564G).

(4) Subsections (1) to (3) do not affect the operation of any provision of the Tax Acts or TCGA 1992 that provides that the consideration for a sale or purchase is taken for any purpose to be an amount other than the actual consideration.]

[F2 564W Diminishing shared ownership arrangements not partnerships U.K.

Diminishing shared ownership arrangements are not treated as a partnership for the purposes of the Income Tax Acts.]

Textual Amendments

F2 S. 564W 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. 24 (with Sch. 9 paras. 1-9, 22)

[F3 564X Treatment of principal under profit share agency arrangements U.K.

(1) The principal under profit share agency arrangements is not treated for the purposes of the Income Tax Acts as entitled to profits to which the agent is entitled in accordance with section 564F(1)(e).

(2) And the agent under such arrangements is treated for those purposes as entitled to those profits and the profits specified in section 564F(1)(d).

(3) In this section “the principal” and “the agent” are to be read in accordance with section 564F.]

Textual Amendments

F3 S. 564X 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. 25 (with Sch. 9 paras. 1-9, 22)

[F4 564Y Provision not at arm's length: relevant return U.K.

(1) This section applies if arrangements to which section 564H (provision not at arm's length: exclusion of arrangements from sections 564C to 564G) applies would, but for that section, be alternative finance arrangements.

(2) A person paying relevant return under the arrangements is not entitled to—

(a) any deduction in respect of the relevant return in calculating profits or other income for income tax purposes, or

(b) any deduction in respect of the relevant return in calculating net income.

(3) In this section “relevant return” has the same meaning as in section 564H (see subsection (3) of that section).]

Textual Amendments

F4 S. 564Y 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. 26 (with Sch. 9 paras. 1-9, 22)