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Corporation Tax Act 2010

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Changes over time for: Section 763

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Version Superseded: 17/07/2012

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Point in time view as at 14/03/2012. This version of this provision has been superseded. Help about Status

Changes to legislation:

Corporation Tax Act 2010, Section 763 is up to date with all changes known to be in force on or before 27 February 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

763Type 2 finance arrangement definedU.K.
This section has no associated Explanatory Notes

(1)For the purposes of this Chapter an arrangement is a type 2 finance arrangement if conditions A and B are met.

(2)Condition A is that—

(a)under the arrangement a person (“the transferor”) makes a disposal of an asset (“the security”) to a partnership,

(b)the transferor is a member of the partnership immediately after the disposal (whether or not a member immediately before it),

(c)under the arrangement the partnership receives money or another asset (“the advance”) from another person (“the lender”),

(d)there is a relevant change in relation to the partnership (see section 764), and

(e)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 transferor's accounts.

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