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Income Tax Act 2007

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[F1564F Profit share agency arrangementsU.K.

This adran has no associated Nodiadau Esboniadol

(1)This section applies to arrangements if under them—

(a)a person (“the principal”) appoints an agent,

(b)one or both of the principal and agent is a financial institution,

(c)the agent uses money provided by the principal with a view to producing a profit,

(d)the principal is entitled, to a specified extent, to profits resulting from the use of the money,

(e)the agent is entitled to any additional profits resulting from its use (and may also be entitled to a fee paid by the principal), and

(f)payments made because of the principal's entitlement to profits equate, in substance, to the return on an investment of money at interest.

(2)This section is subject to section 564H (provision not at arm's length: exclusion of arrangements from sections 564C to 564E, this section and section 564G).]

Textual Amendments

F1S. 564F 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. 7 (with Sch. 9 paras. 1-9, 22)

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