Modifications etc. (not altering text)
C1Pt. 7 modified by 2005 c. 7, s. 54A (as inserted (10.7.2008) by The Alternative Finance Arrangements (Community Investment Tax Relief) Order 2008 (S.I. 2008/1821), arts. 1, 2)
Textual Amendments
F1S. 372A and cross-heading 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. 51 (with Sch. 9 paras. 1-9, 22)
(1)This section applies if, under arrangements to which section 564C applies, a person (“the first purchaser”) purchases an asset that is sold to another person (“the second purchaser”).
(2)This Part and regulations made under Chapter 2 of this Part have effect in relation to the arrangements in accordance with subsections (3) to (9).
(3)The first purchaser is treated as making a loan to the second purchaser.
(4)The amount of the loan is treated as being equal to the first purchase price.
(5)If the arrangements provide that the first purchaser will transfer ownership of the asset to the second purchaser in instalments—
(a)references to the loan being drawn down over a period of time include references to the asset being transferred to the second purchaser in instalments,
(b)references to the date on which the first amount of the loan is drawn down include references to the date on which the first instalment is transferred to the second purchaser, and
(c)references to the amount drawn down at a given date include references to the value of the instalments transferred at that date.
(6)In calculating the amount of capital outstanding on the loan, each payment of the second purchase price (or part of the second purchase price), as reduced by any amount of alternative finance return included within each payment, is treated as repayment of the loan capital.
(7)References to the beneficial owner of the loan include references to the person beneficially entitled to payment of the second purchase price.
(8)References to the disposal of the whole or any part of the loan include references to the disposal of the right to receive payment of the whole or any part of the outstanding second purchase price.
(9)If arrangements to which section 564C applies are, as a result of this section, qualifying investments under Chapter 3 of this Part, paragraph (f) of section 366(1) is to be ignored in relation to the arrangements concerned.
(10)In this section “the first purchase price” and “the second purchase price” have the same meaning as in section 564C.]
Textual Amendments
F2S. 372B 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. 52 (with Sch. 9 paras. 1-9, 22)