Part 16

Factoring of income etc
Chapter 3

Loan or credit transactions

Certain payments treated as interest
778
1
This section applies if a loan or credit transaction provides for a payment which is not interest but is—
a
an annuity or other annual payment falling within Part 5 of ITTOIA 2005 and chargeable to income tax otherwise than as relevant foreign income, or
b
an annuity or other annual payment which is from a source in the United Kingdom and chargeable to corporation tax under Chapter 7 of Part 10 of CTA 2009 (annual payments not otherwise charged) or regulation 15 of the Unauthorised Unit Trusts (Tax) Regulations 2013.
2
The payment must be treated for the purposes of the Corporation Tax Acts as if it were a payment of interest.
Words in s. 778(1)(b) substituted (6.4.2014) by The Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), regs. 1(3), 39(5) (with reg. 32)