Taxation (International and Other Provisions) Act 2010

Part 10 Alternative finance arrangements

Alternative finance arrangements entered into before certain dates etc

37 (1) The alternative finance provisions do not apply to purchase and resale arrangements entered into before 6 April 2005 or diminishing shared ownership arrangements entered into before the relevant date.

(2) If deposit arrangements, profit share agency arrangements or investment bond arrangements were entered into before the relevant date, the alternative finance provisions only apply if alternative finance return is payable under the arrangements on or after the relevant date and then—

(a) apply for the purposes of income tax in relation to payments of alternative finance return under the arrangements to a person other than a company on or after the relevant date (so far as relevant to the tax year 2010-11 and subsequent tax years), and

(b) if a company is a party to the arrangements, apply in relation to the company in respect of the arrangements with effect from the relevant date (so far as relevant to those tax years or, as the case may be, any accounting period ending on or after 1 April 2010).

(3) Sub-paragraph (2) is subject to sub-paragraph (4).

(4) For the purposes of income tax and capital gains tax in relation to the disposal after 6 April 2007 of investment bond arrangements (whenever entered into), the relevant provisions are treated as always having had effect.

(5) An order made under section 1005 of ITA 2007 (recognised stock exchanges: designation) that includes such provision as is mentioned in section 1005(2A) may be expressed as respects that provision—

(a) to have had effect as from 1 April 2007 for the purposes of arrangements entered into on or after that date, and

(b) for the purposes mentioned in sub-paragraph (4) as always having had effect.

(6) In this paragraph—

• “alternative finance provisions” means—

  (a)

  section 367A of ICTA 1988,

  (b)

  Chapter 4 of Part 4 of TCGA 1992, and

  (c)

  Part 10A and section 1005(2A) of ITA 2007,

• “alternative finance return” has the same meaning as in Chapter 4 of Part 4 of TCGA 1992 (see section 151S of that Act) or Chapter 10A of ITA 2007 (see section 564L of that Act),

• “deposit arrangements”, “diminishing shared ownership arrangements”, “investment bond arrangements”, “profit share agency arrangements” and “purchase and resale arrangements” have the same meaning as in Chapter 4 of Part 4 of TCGA 1992 (see section 151H(3) of that Act) or Chapter 10A of ITA 2007 (see section 564A(3) of that Act),

• “the relevant date” means—

  (a)

  in the case of deposit arrangements, 6 April 2005,

  (b)

  in the case of diminishing shared ownership arrangements or profit share agency arrangements, for income tax purposes 6 April 2006, and

  (c)

  in the case of investment bond arrangements, for corporation tax purposes 1 April 2007 and for income tax and capital gains tax purposes 6 April 2007, and

• “the relevant provisions” means—

  (a)

  for income tax purposes, sections 564G, 564L(3) to (5), and 564S to 564U of ITA 2007 and section 1005(2A) of that Act so far as it relates to section 564G of that Act, and

  (b)

  for capital gains tax purposes, sections 151N, 151S(3) and (4) and 151T to 151W of TCGA 1992 and section 1005(2A) of ITA 2007 so far as it relates to section 151N of TCGA 1992.

Alternative finance arrangements not offshore funds

38 So far as Chapter 5 of Part 17 of ICTA continues to apply for any purpose, references to section 354 of this Act in section 151W(b) of TCGA 1992, section 564U(b) of ITA 2007 and section 519(4)(b) of CTA 2009 are to be read for that purpose as references to that Chapter.

Alternative finance arrangements entered into before 15 October 2009

39 (1) In relation to arrangements entered into before 15 October 2009, Part 10A of ITA 2007 (alternative finance arrangements) applies with the following modifications.

(2) In section 564B(1) (meaning of “financial institution”)—

(a) in paragraph (e) for “, diminishing shared ownership arrangements or profit share agency arrangements” substitute “or diminishing shared ownership arrangements”,

(b) at the end of that paragraph insert “or”,

(c) omit paragraph (g) and “or” at the end of that paragraph, and

(d) omit paragraph (h).

(3) In section 564F(1) (profit share agency arrangements)—

(a) in paragraph (a) for “an agent” substitute “a financial institution as agent”, and

(b) omit paragraph (b).

40 (1) In relation to arrangements entered into before 15 October 2009, Chapter 4 of Part 4 of TCGA 1992 (alternative finance arrangements) applies with the following modifications.

(2) In section 151I(1) (meaning of “financial institution”)—

(a) in paragraph (e) for “, diminishing shared ownership arrangements or profit share agency arrangements” substitute “or diminishing shared ownership arrangements”,

(b) at the end of that paragraph insert “or”,

(c) omit paragraph (g) and “or” at the end of that paragraph, and

(d) omit paragraph (h).

(3) In section 151M(1) (profit share agency arrangements)—

(a) in paragraph (a) for “an agent” substitute “a financial institution as agent”, and

(b) omit paragraph (b).