Section 510 — Corporation Tax Act 2009: Application of Part 5 to particular alternative finance arrangements

Application of Part 5 to particular alternative finance arrangements 510 1 In the case of purchase and resale arrangements, Part 5 applies in relation to A as if—

a the first purchase price were the amount of a loan made by the first purchaser to the second purchaser, and b alternative finance return payable under the arrangements were interest payable on the loan.

2 In the case of diminishing shared ownership arrangements, Part 5 applies in relation to A as if—

a the consideration paid by the financier for the acquisition of financier’s beneficial interest (“the acquisition consideration”) were the amount of a loan made by A to customer , and b alternative finance return payable under the arrangements were interest payable on the loan.

3 In the case of deposit arrangements, Part 5 applies in relation to A as if—

a any amount deposited under the arrangements were the amount of a loan made by the depositor to the financial institution, and b alternative finance return payable under them were interest on the loan.

4 In the case of profit share agency arrangements, Part 5 applies in relation to A as if—

a any amount provided under the arrangements were the amount of a loan made by the principal to the agent, and b alternative finance return payable under them were interest on the loan.

5 In the case of investment bond arrangements, Part 5 applies in relation to A as if alternative finance return payable to or by A under them were interest payable under the loan relationship.

6 In this section— “ the customer ” has the same meaning as in section 504 (see subsection (1) of that section) or 504A (see subsection (1) or (2) of that section), “ the depositor ” has the same meaning as in section 505 (see subsection (1) of that section), “ the financier ” has the same meaning as in section 504 (see subsection (1) of that section) or 504A (see subsection (1) or (2) of that section), ... ... “ the first purchaser ” has the same meaning as in section 503 (see subsection (1) of that section), “ the first purchase price ” has the same meaning as in section 503 (see subsection (3) of that section), “ the principal ” has the same meaning as in section 506 (see subsection (1) of that section), and “ the second purchaser ” has the same meaning as in section 503 (see subsection (1) of that section).

7 For the meaning of “alternative finance return”, see sections 511 to 513.