Taxation (International and Other Provisions) Act 2010 (c. 8)

SCHEDULES

SCHEDULE 8 U.K. Minor and consequential amendments

Part 10 U.K. Factoring of income etc

Income Tax Act 2007 (c. 3) U.K.

271 U.K. ITA 2007 is amended as follows.

272 U.K. In section 2(13) (overview of Part 13) omit the “or” after paragraph (e), and after paragraph (f) insert—

“(g) finance arrangements (Chapter 5B),

(h) loan or credit transactions (Chapter 5C),”.

273 U.K. For section 809AZE (transfers of income streams: exception for transfer by way of security) substitute—

“809AZE Exception: transfer by way of security

(1) This Chapter does not apply if—

(a) the consideration for the transfer is the advance under a type 1 finance arrangement, and

(b) the transferor is, or is a member of a partnership which is, the borrower in relation to the arrangement.

(2) This Chapter does not apply if—

(a) the consideration for the transfer is the advance under a type 2 finance arrangement or a type 3 finance arrangement, and

(b) the transferor is a member of the partnership which receives that advance under the arrangement.

(3) In this section—

• “type 1 finance arrangement” has the meaning given for the purposes of Chapter 5B by section 809BZA,

• “type 2 finance arrangement” has the meaning given for the purposes of Chapter 5B by section 809BZF, and

• “type 3 finance arrangement” has the meaning given for the purposes of Chapter 5B by section 809BZJ.”

274 (1) Amend section 1016(2) (table of provisions to which section applies) as follows. U.K.

(2) In Part 2 of the table at the appropriate place insert—

“Section 809CZC(2)

Income transferred under a loan or credit transaction”

(3) In Part 3 of the table omit the entry for section 786(5)(a) of ICTA.

275 U.K. In Schedule 4 (index of defined expressions) at the appropriate places insert—

“accounts (in Chapter 5B of Part 13)	section 809BZQ”
“arrangements (in Chapter 5B of Part 13)	section 809BZR”
“disposal of an asset (in Chapter 5B of Part 13)	section 809BZS(3)”
“payments in respect of an asset (in Chapter 5B of Part 13)	section 809BZS(4)”
“person involved in a relevant change (in Chapter 5B of Part 13)	section 809BZG(5)”
“person receiving an asset (in Chapter 5B of Part 13)	section 809BZS(2)”
“relevant change in relation to a partnership (in Chapter 5B of Part 13)	section 809BZG”
“type 1 finance arrangement (in Chapter 5B of Part 13)	section 809BZA”
“type 2 finance arrangement (in Chapter 5B of Part 13)	section 809BZF”
“type 3 finance arrangement (in Chapter 5B of Part 13)	section 809BZJ”.