Section 554RA — Income Tax (Earnings and Pensions) Act 2003: Exclusions: relevant repayments

Exclusions: relevant repayments 554RA 1 This section applies (subject to subsection (5)) if—

a a right to repayment of principal under a relevant loan (the “repayment right”) is held by or on behalf of a person (“P”),

and b on or after 9 December 2010, a sum of money (the “repayment sum”) is acquired by or on behalf of P by way of repayment of principal under the relevant loan.

2 In this section “ relevant loan ” means a loan made on or after 6 April 1999.

3 Subsection (4) applies if—

a on its acquisition, the repayment sum is the subject of a relevant step within section 554B taken by P, or b for the sole purpose of the acquisition, the making of the payment of the repayment sum is a relevant step within section 554C(1)(a).

4 Chapter 2 does not apply by reason of the relevant step if, on its acquisition, the repayment sum is held by or on behalf of P on the same basis as that on which the repayment right was held by or on behalf of P immediately before the acquisition.

5 This section does not apply where there is any connection (direct or indirect) between the acquisition by or on behalf of P of the repayment sum and a tax avoidance arrangement (other than the arrangement under which the relevant loan was made).