F1Part 7AEmployment income provided through third parties
CHAPTER 1Application etc
Exclusions
F2554RAExclusions: relevant repayments
(1)
This section applies (subject to subsection (5)) if—
(a)
a right to repayment of principal under a relevant loan (the “repayment right”) is held by or on behalf of a person (“P”), and
(b)
on or after 9 December 2010, a sum of money (the “repayment sum”) is acquired by or on behalf of P by way of repayment of principal under the relevant loan.
(2)
In this section “relevant loan” means a loan made on or after 6 April 1999.
(3)
Subsection (4) applies if—
(a)
on its acquisition, the repayment sum is the subject of a relevant step within section 554B taken by P, or
(b)
for the sole purpose of the acquisition, the making of the payment of the repayment sum is a relevant step within section 554C(1)(a).
(4)
Chapter 2 does not apply by reason of the relevant step if, on its acquisition, the repayment sum is held by or on behalf of P on the same basis as that on which the repayment right was held by or on behalf of P immediately before the acquisition.
(5)
This section does not apply where there is any connection (direct or indirect) between the acquisition by or on behalf of P of the repayment sum and a tax avoidance arrangement (other than the arrangement under which the relevant loan was made).