SCHEDULES
C1SCHEDULE 15Tax treatment of financing costs and income
Part 2Application of this Schedule
Lending activities and activities ancillary to lending activities
9
1
In this Part “lending activities” means any of the following activities—
a
acceptance of deposits or other repayable funds;
b
lending of money, including consumer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions (including forfeiting);
c
finance leasing (as lessor);
d
issuing and administering means of payment;
e
provision of guarantees or commitments to provide money;
f
money transmission services;
g
provision of alternative finance arrangements;
h
other activities carried out in connection with activities falling within any of paragraphs (a) to (g).
2
Activities that are ancillary to lending activities are not qualifying activities for the purposes of this Part if the income derived from the ancillary activities forms a significant part of the total of—
a
that income, and
b
the income derived from lending activities of the worldwide group in the period of account.
3
In sub-paragraph (2) “income” means the gross income or net income that would be taken into account for the purposes of paragraph 7 in calculating the UK or worldwide trading income of the worldwide group for the period of account.
4
The Commissioners may by order—
a
amend sub-paragraph (1), and
b
make other amendments of this paragraph in consequence of any amendment of sub-paragraph (1).
5
In sub-paragraph (1)(h), and in the references to ancillary activities in this paragraph and paragraph 8(a), “activities” includes buying, holding, managing and selling assets.
6
In this paragraph “alternative finance arrangements” has the same meaning as in Chapter 6 of Part 6 of CTA 2009.
Sch. 15 modified (21.7.2009 retrospective) by Finance (No. 3) Act 2010 (c. 33), Sch. 5 para. 36(2)