(1)This Chapter provides for alternative finance arrangements between companies and financial institutions to be treated as loan relationships (see sections 509 and 510).
(2)In this Part “alternative finance arrangements” means—
(a)purchase and resale arrangements,
(b)diminishing shared ownership arrangements,
(c)deposit arrangements,
(d)profit share agency arrangements, and
(e)investment bond arrangements.
(3)In this Chapter—
(a)“purchase and resale arrangements” means arrangements to which section 503 applies,
(b)“” means arrangements to which section 504 applies,
(c)“deposit arrangements” means arrangements to which section 505 applies,
(d)“” means arrangements to which section 506 applies, and
(e)“investment bond arrangements” means arrangements to which section 507 applies.
(4)For the meaning of “financial institution”, see section 502.
(1)In this Chapter “financial institution” means—
(a)a bank, as defined by [F1section 1120 of CTA 2010],
(b)a building society within the meaning of the Building Societies Act 1986 (c. 53),
(c)a wholly-owned subsidiary of a bank within paragraph (a) or a building society within paragraph (b),
(d)a person authorised by a licence under Part 3 of the Consumer Credit Act 1974 (c. 39) to carry on a consumer credit business or consumer hire business within the meaning of that Act,
(e)a bond-issuer, within the meaning of section 507, but only in relation to any bond assets which are rights under purchase and resale arrangements[F2, diminishing shared ownership arrangements or profit share agency arrangements], F3...
(f)a person authorised in a jurisdiction outside the United Kingdom—
(i)to receive deposits or other repayable funds from the public, and
(ii)to grant credits for its own account,
[F4(g)an insurance company, as defined by section 431(2) of ICTA, or
(h)a person who is authorised in a jurisdiction outside the United Kingdom to carry on a business which consists of effecting or carrying out contracts of insurance or substantially similar business but not an insurance special purpose vehicle as defined in section 431(2) of ICTA.]
(2)For the purposes of subsection (1)(c) a company is a wholly-owned subsidiary of a bank or building society (“the parent”) if it has no members except—
(a)the parent or persons acting on behalf of the parent, and
(b)the parent's wholly-owned subsidiaries or persons acting on behalf of the parent's wholly-owned subsidiaries.
Textual Amendments
F1Words in s. 502(1)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 630 (with Sch. 2)
F2Words in s. 502(1)(e) substituted (with effect in accordance with art. 1(3) of the amending S.I.) by Alternative Finance Arrangements (Amendment) Order 2009 (S.I. 2009/2568), arts. 1(2), 3(2)(a)
F3Word in s. 502(1)(e) omitted (with effect in accordance with art. 1(3) of the amending S.I.) by virtue of Alternative Finance Arrangements (Amendment) Order 2009 (S.I. 2009/2568), arts. 1(2), 3(2)(b)
F4S. 502(1)(g)(h) inserted (with effect in accordance with art. 1(3) of the amending S.I.) by Alternative Finance Arrangements (Amendment) Order 2009 (S.I. 2009/2568), arts. 1(2), 3(2)(c)