Section 809BZC — Income Tax Act 2007: Payments treated as borrower's income

Payments treated as borrower's income 809BZC 1 This section applies if—

a a type 1 finance arrangement would not have the relevant effect (ignoring section 809BZB(2)),

b that arrangement would not have the corresponding corporation-tax effect (ignoring section 759(2) of CTA 2010),

and c the borrower is—

i within the charge to income tax, or ii a partnership at least one member of which is within the charge to income tax.

2 The payments mentioned in section 809BZA(2)(c) must be treated for income tax purposes as income of the borrower payable in respect of the security.

3 Subsection (2) applies whether or not the payments are also the income of another person for tax purposes.

4 Subsections (3) to (6) of section 809BZB (meaning of relevant effect) apply for the purposes of this section as for those of that.

5 In subsection (1)(b) “ the corresponding corporation-tax effect ” means the relevant effect as defined by section 759(3) to (6) of CTA 2010 (provision for corporation tax corresponding to section 809BZB(3) to (6)).