Finance Act 2012

Application and interpretation

7 (1) In this Part of this Schedule “the completion day” means the earliest of the following—

(a) the day on which the asset-backed arrangement is to be completed determined as at the beginning of 29 November 2011;

(b) the day on which the asset-backed arrangement is actually completed;

(c) the day on which a completion event occurs (see sub-paragraphs (2) to (5));

(d) if an event falling within paragraph 8 occurs, the day on which falls the time immediately before the occurrence of the event.

(2) To determine if a completion event occurs for the purposes of sub-paragraph (1)(c) first determine, as at the beginning of 22 February 2012, the following—

(a) the number of payments to be made after the beginning of 22 February 2012 to which a responsible authority is entitled in connection with the asset-backed arrangement,

(b) what the amounts of those payments are to be, and

(c) the times at which those payments are to be made.

(3) A completion event occurs for the purposes of sub-paragraph (1)(c) if, after the beginning of 22 February 2012—

(a) whether as a result of a term of the asset-backed arrangement or another arrangement or otherwise—

(i) there is a change in the number of payments to be made from that determined under sub-paragraph (2),

(ii) there is a significant change in the amount of a payment to be made from that so determined, or

(iii) there is a significant change in the time at which a payment is to be made from that so determined,

(b) a payment determined under sub-paragraph (2) is not made,

(c) a payment determined under sub-paragraph (2) is made but its amount is significantly different from the amount so determined for the payment, or

(d) a payment determined under sub-paragraph (2) is made but is made at a time significantly different from the time so determined for the payment.

(4) In sub-paragraphs (2) and (3) references to payments are to payments of any type including drawings or distributions from a partnership, payments in respect of the security and other payments in respect of an asset (as read in accordance with section 776(4)(b) of CTA 2010).

(5) For the purposes of sub-paragraph (3)(b) to (d) it does not matter if the event in question is authorised by a term of the asset-backed arrangement or any other arrangement or results from the occurrence or non-occurrence of another event which is so authorised.