Income Tax Act 2007 (c. 3)

[F1 Part 10A U.K. Alternative finance arrangements]

Textual Amendments

F1 Pt. 10A inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 2 (with Sch. 9 paras. 1-9, 22)

[F2 Treatment of alternative finance return as interest etc U.K.

Textual Amendments

F2 S. 564M and cross-heading inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 14 (with Sch. 9 paras. 1-9, 22)

564M Treatment of alternative finance return as interest for ITTOIA 2005 U.K.

(1) Alternative finance return is treated as interest for the purposes of ITTOIA 2005.

(2) References to interest in section 380 of that Act (funding bonds) include references to alternative finance return.]

[F3 564N Alternative finance return under arrangements for trade or property business purposes U.K.

(1) This section applies so far as a person is a party to alternative finance arrangements for the purposes of—

(a) a trade, profession or vocation carried on by that person, or

(b) a property business of that person.

(2) Alternative finance return paid by that person is treated as an expense of the trade, profession, vocation or business.

(3) In section 58 of ITTOIA 2005—

(a) references to a loan include references to alternative finance arrangements, and

(b) references to interest include references to alternative finance return.]

Textual Amendments

F3 S. 564N inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 15 (with Sch. 9 paras. 1-9, 22)

[F4 564O Relief for some alternative finance return under Chapter 1 of Part 8 etc U.K.

(1) Chapter 1 of Part 8 of this Act (interest payments) has effect as if—

(a) purchase and resale arrangements involved the making of a loan, and

(b) alternative finance return were interest.

(2) Section 412 (information) has effect accordingly.]

Textual Amendments

F4 S. 564O inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 16 (with Sch. 9 paras. 1-9, 22)

[F5 564P Tax relief schemes and arrangements U.K.

Section 809ZG (tax relief schemes and arrangements) applies to alternative finance return as it applies to interest.]

Textual Amendments

F5 S. 564P inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 17 (with Sch. 9 paras. 1-9, 22)

[F6 564Q Deduction of income tax at source under Part 15 U.K.

(1) Chapter 2 of Part 15 [F7 and section 876] (deduction of income tax at source: [F8 exception for deposit-takers]), and Chapter 19 of that Part so far as it has effect for the purposes of Chapter 2 of that Part [F9 and section 876], have effect as if—

(a) relevant alternative finance arrangements were a deposit,

(b) for the purposes of section 866(2)(a) such arrangements were a deposit consisting of a loan, and

(c) alternative finance return payable under such arrangements were interest.

(2) For the purposes of subsection (1) alternative finance arrangements are relevant unless they are purchase and resale arrangements where the second purchaser is not a financial institution.

(3) In subsection (2) “the second purchaser” has the same meaning as in section 564C.

(4) In Chapter 12 of Part 15 (funding bonds) references to interest include references to alternative finance return.

(5) Chapters 3 to 5 of Part 15 [F10 except section 876], and Chapter 19 of that Part so far as it has effect for the purposes of [F11 those provisions], apply to alternative finance return as they apply to interest.]

Textual Amendments

F6 S. 564Q inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 18 (with Sch. 9 paras. 1-9, 22)

F7 Words in s. 564Q(1) inserted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 20(1)(a)

F8 Words in s. 564Q(1) substituted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 20(1)(b)

F9 Words in s. 564Q(1) inserted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 20(1)(c)

F10 Words in s. 564Q(5) inserted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 20(2)(a)

F11 Words in s. 564Q(5) substituted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 20(2)(b)