Section FA 12 — Income Tax Act 2007: Recharacterisation of amounts derived under hire purchase agreements

FA 12 Recharacterisation of amounts derived under hire purchase agreements When a person (the seller ) provides personal property other than livestock or bloodstock to another person (the buyer ) under a hire purchase agreement, the agreement is treated as a sale by the seller to the buyer on the date on which the term of the agreement starts, and— (a) the seller is treated as giving a loan to the buyer for the property; and (b) the buyer is treated as using the loan to buy the property; and (c) subpart EE (Depreciation), the financial arrangements rules, and the other provisions of this Act apply to the agreement as recharacterised. Defined in this Act: amount , bloodstock , financial arrangements rules , hire purchase agreement , loan , Compare: 2004 No 35 ss FC 9 , FC 10