SCHEDULES

SCHEDULE 13Employer asset-backed pension contributions etc

PART 2Transitional provision relating to Part 1

9Certain tax consequences not to have effect

1

This paragraph applies if—

a

the section which would have applied as mentioned in paragraph 4(1)(c) above is section 196B of FA 2004, and

b

the asset-backed arrangement would have the relevant effect (ignoring this paragraph).

2

The asset-backed arrangement is not to have the relevant effect.

3

The relevant effect is that—

a

an amount of income on which the borrower or a person connected with the borrower would otherwise have been charged to tax is not so charged,

b

an amount which would otherwise have been brought into account in calculating for tax purposes any income of the borrower or of a person connected with the borrower is not so brought into account, or

c

the borrower or a person connected with the borrower becomes entitled to deduct an amount—

i

in calculating income for tax purposes, or

ii

from total income or total profits (as the case may be).

4

But if the borrower is a partnership the relevant effect is that—

a

an amount of income on which a member of the partnership would otherwise have been charged to tax is not so charged,

b

an amount which would otherwise have been brought into account in calculating for tax purposes any income of a member of the partnership is not so brought into account, or

c

a member of the partnership becomes entitled to deduct an amount—

i

in calculating income for tax purposes, or

ii

from total income or total profits (as the case may be).

5

In sub-paragraphs (3) and (4) “amount” means an amount which arises on or after 29 November 2011 but on or before the completion day.