Part 6

Relationships treated as loan relationships etc
Chapter 6

Alternative finance arrangements

Treatment for other tax purposes

Diminishing shared ownership arrangements : further provision
515
1
Diminishing shared ownership arrangements are not treated as a partnership for the purposes of the Corporation Tax Acts.
2
If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of the Corporation Tax Acts.
3
If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—
a
the financier’s dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and
b
the dealings with the asset of any person appointed for that purpose,
are to be treated for the purposes of the Corporation Tax Acts as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.
4
In this section—
- “
the asset
” means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;
- “
the customer
” and “the financier” have the same meaning as in section 504 or
504A
;
- “
termination
”, in relation to a lease, has the meaning given by section 70YI of CAA 2001.
Words in s. 515 heading substituted (with effect in accordance with Sch. 7 para. 4 of the amending Act) by Finance Act 2025 (c. 8), Sch. 7 paras. 2(8)(a), 4
S. 515 renumbered as s. 515(1) (with effect in accordance with Sch. 7 para. 4 of the amending Act) by Finance Act 2025 (c. 8), Sch. 7 paras. 2(8)(b), 4
S. 515(2)-(4) inserted (with effect in accordance with Sch. 7 para. 4 of the amending Act) by Finance Act 2025 (c. 8), Sch. 7 paras. 2(8)(c), 4