Finance (No. 2) Act 2017

Financial enablers U.K.

12 (1) For the purposes of paragraph 7 a person is a “financial enabler” in relation to the arrangements if— U.K.

(a) in the course of a business carried on by that person, that person provided a financial product (directly or indirectly) to a relevant party,

(b) it is reasonable to assume that the purpose (or a purpose) of the relevant party in obtaining the financial product was to participate in the arrangements, and

(c) when the financial product was provided, the person providing it knew or could reasonably be expected to know that the purpose (or a purpose) of obtaining it was to participate in abusive tax arrangements.

(2) In this paragraph “a relevant party” means T or an enabling participant in the arrangements within the meaning given by paragraph 11.

(3) Any reference in this paragraph to a person's providing a financial product to a relevant party includes (but is not limited to) the person's doing any of the following—

(a) providing a loan to a relevant party;

(b) issuing or transferring a share to a relevant party;

(c) entering into arrangements with a relevant party such that—

(i) the person becomes a party to a relevant contract within the meaning of section 577 of CTA 2009 (derivative contracts);

(ii) there is a repo in respect of securities within the meaning of section 263A(A1) of TCGA 1992;

(iii) the person or the relevant party has a creditor repo, creditor quasi-repo, debtor repo or debtor quasi-repo within the meaning of sections 543, 544, 548 and 549 of CTA 2009;

(d) entering into a stock lending arrangement, within the meaning of section 263B(1) of TCGA 1992, with a relevant party;

(e) entering into an alternative finance arrangement, within the meaning of Chapter 6 of Part 6 of CTA 2009 or Part 10A of ITA 2007, with a relevant party;

(f) entering into a contract with a relevant party which, whether alone or in combination with one or more other contracts—

(i) is in accordance with generally accepted accounting practice required to be treated as a loan, deposit or other financial asset or obligation, or

(ii) would be required to be so treated by the person if the person were a company to which the Companies Act 2006 applies;

and references to obtaining a financial product are to be read accordingly.

(4) The Treasury may by regulations amend sub-paragraph (3).