10(1)This paragraph applies if—U.K.
(a)the section which would have applied as mentioned in paragraph 4(1)(c) above is section 196C of FA 2004, and
(b)any relevant change in relation to the partnership would have the relevant effect (ignoring this paragraph).
(2)In such a case—
(a)Part 9 of ITTOIA 2005 or sections 1259 to 1265 of CTA 2009 (as the case may be) is or are to have effect in relation to the transferor, or any person connected with the transferor, as if the relevant change in relation to the partnership had not occurred, and
(b)accordingly, the asset-backed arrangement is not to have the relevant effect.
(3)The relevant effect is that—
(a)an amount of income on which the transferor, or the person connected with the transferor, would otherwise have been charged to tax is not so charged,
(b)an amount which would otherwise have been brought into account in calculating for tax purposes any income of the transferor, or the person connected with the transferor, is not so brought into account, or
(c)the transferor, or the person connected with the transferor, becomes entitled to deduct an amount—
(i)in calculating income for tax purposes, or
(ii)from total income or total profits (as the case may be).
(4)In sub-paragraph (3) “amount” means an amount which arises on or after 29 November 2011 but on or before the completion day.
(5)In deciding whether sub-paragraph (1)(b) is met assume that amounts of income equal to the payments mentioned in section 196C(2)(g) of FA 2004 were payable to the partnership before the relevant change in relation to it occurred.