Part 13Tax avoidance
C2C1F1Chapter 5BFinance arrangements
Pt. 13 Ch. 5B restricted by 2004 s. 12 s. 196I(5)(6) (as inserted 17.7.2012 (with effect in accordance with Sch. 13 para. 17 of the amending Act) by Finance Act 2012 (c. 14), Sch. 13 para. 15 (with Sch. 13 Pt. 4))
Pt. 13 Ch. 5B restricted by 2004 c. 12, s. 196G(2)(3) (as inserted 17.7.2012 (with effect in accordance with Sch. 13 para. 3 of the amending Act) by Finance Act 2012 (c. 14), Sch. 13 para. 1 (with Sch. 13 Pt. 2))
F2Exceptions
Ss. 809BZM-809BZP 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. 5 para. 5 (with Sch. 9 paras. 1-9, 22)
809BZMExceptions: preliminary
1
Sections 809BZN to 809BZP make provision for finance arrangement codes not to apply in certain circumstances.
2
For the purposes of those sections each of the following groups of provisions is a finance arrangement code—
a
sections 809BZA to 809BZE (type 1 arrangements),
b
sections 809BZF to 809BZI (type 2 arrangements), and
c
sections 809BZJ to 809BZL (type 3 arrangements).
809BZNExceptions
1
A finance arrangement code does not apply if the whole of the advance under the arrangement—
a
is charged to tax on a relevant person as an amount of income,
b
is brought into account in calculating for tax purposes any income of a relevant person, or
c
is brought into account for the purposes of any provision of CAA 2001 as a disposal receipt, or proceeds from a balancing event or disposal event, of a relevant person.
2
Treat subsection (1)(c) as not met if—
a
the receipt gives rise, or proceeds give rise, to a balancing charge, and
b
the amount of the balancing charge is limited by any provision of CAA 2001.
3
A finance arrangement code does not apply if at all times the whole of the advance under the arrangement—
a
is a debtor relationship of a relevant person for the purposes of Part 5 of CTA 2009 (loan relationships), or
b
would be a debtor relationship of a relevant person for those purposes if that person were a company within the charge to corporation tax.
4
In subsection (3) references to a debtor relationship do not include references to a relationship to which Chapter 2 of Part 6 of CTA 2009 applies (relevant non-lending relationships).
5
A finance arrangement code does not apply so far as—
a
section 263A of TCGA 1992 applies in relation to the arrangement (agreements for sale and repurchase of securities), or
b
Schedule 13 to FA 2007 or Chapter 10 of Part 6 of CTA 2009 applies in relation to the arrangement (sale and repurchase of securities, and repos).
6
A finance arrangement code does not apply so far as Part 10A of this Act, Chapter 4 of Part 4 of TCGA 1992 or Chapter 6 of Part 6 of CTA 2009 has effect in relation to the arrangement (alternative finance arrangements).
7
A finance arrangement code does not apply so far as the security is plant or machinery which is the subject of a sale and finance leaseback.
8
For the purposes of subsection (7) apply section 221 of CAA 2001 to determine whether plant or machinery is the subject of a sale and finance leaseback.
9
A finance arrangement code does not apply so far as sections 228B and 228C of CAA 2001 (finance leaseback) apply in relation to the arrangement.
10
Section 809BZO defines a relevant person for the purposes of this section.
809BZOExceptions: relevant person
1
This section defines a relevant person for the purposes of section 809BZN.
2
If (apart from sections 809BZN and 809BZP) sections 809BZA to 809BZE would apply, each of the following is a relevant person—
a
the borrower, and
b
a person connected with the borrower or (if the borrower is a partnership) a member of the partnership.
3
If (apart from sections 809BZN and 809BZP) sections 809BZF to 809BZI would apply, the transferor is a relevant person.
4
If (apart from sections 809BZN and 809BZP) sections 809BZJ to 809BZL would apply, a relevant member as there defined is a relevant person.
5
For the purposes of subsection (2)(b) the persons connected with the borrower include any persons who under section 993 (meaning of “connected”) are connected with the borrower.
809BZPPower to make further exceptions
1
The Treasury may make regulations prescribing other circumstances in which a finance arrangement code is not to apply.
2
The regulations may amend sections 809BZN and 809BZO.
3
The power to make regulations includes—
a
power to make provision that has effect in relation to times before the making of the regulations (but not times before 6 June 2006),
b
power to make different provision for different cases or different purposes, and
c
power to make incidental, supplemental, consequential and transitional provision and savings.
Pt. 13 Ch. 5B 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. 5 para. 2 (with Sch. 9 paras. 1-9, 22)