Section 151M — Taxation of Chargeable Gains Act 1992: Profit share agency arrangements

Profit share agency arrangements 151M 1 This section applies to arrangements if under them—

a a person (“ the principal ”) appoints an agent, b one or both of the principal and agent is a financial institution, c the agent uses money provided by the principal with a view to producing a profit, d the principal is entitled, to a specified extent, to profits resulting from the use of the money, e the agent is entitled to any additional profits resulting from its use (and may also be entitled to a fee paid by the principal),

and f payments made because of the principal's entitlement to profits equate, in substance, to the return on an investment of money at interest.

2 This section is subject to section 151O (provision not at arm's length: exclusion of arrangements from sections 151J to 151L, this section and section 151N).