Textual Amendments
F1Pt. 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)
Textual Amendments
F2Ss. 809BZJ-809BZL 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. 4 (with Sch. 9 paras. 1-9, 22)
(1)For the purposes of this Chapter an arrangement is a type 3 finance arrangement if conditions A and B are met.
(2)Condition A is that—
(a)a partnership holds an asset (“the security”) as a partnership asset at any time before the arrangement is made,
(b)under the arrangement the partnership receives money or another asset (“the advance”) from another person (“the lender”),
(c)there is a relevant change in relation to the partnership (see section 809BZG), and
(d)under the arrangement the share in the partnership's profits of the person involved in the change is determined by reference (wholly or partly) to payments in respect of the security.
(3)Condition B is that in accordance with generally accepted accounting practice—
(a)the partnership's accounts for the period in which the advance is received record a financial liability in respect of it, and
(b)the payments reduce the amount of the financial liability.
(4)The reference to the partnership's accounts includes a reference to the accounts of any person who is a member of the partnership immediately before the arrangement is made.]