Part 6 U.K. Relationships treated as loan relationships etc

Chapter 6 U.K. Alternative finance arrangements

Treatment for other tax purposes U.K.

516 Treatment of principal under profit sharing agency arrangements U.K.

(1) The principal under profit sharing agency arrangements is not treated for the purposes of the Corporation Tax Acts as entitled to profits to which the agent is entitled in accordance with section 506(1)(d).

(2) And the agent under such arrangements is treated for those purposes as entitled to those profits and the profits specified in section 506(1)(c).

(3) In this section “the principal” and “the agent” are to be read in accordance with section 506.