Section 518 Investment bond arrangements: treatment as securities

United Kingdom

(1)

Investment bond arrangements are securities for the purposes of the Corporation Tax Acts.

(2)

For those purposes—

(a)

a reference in an enactment to redemption is to be taken as a reference to making the redemption payment, F1...

(b)

a reference in an enactment to interest is to be taken as a reference to alternative finance returnF2, and

(c)

the bond-issuer is to be treated for the purposes of F3Chapter 4 of Part 13 of CTA 2010 (securitisation companies) as being party as debtor to a capital market arrangement.

(3)

In subsection (2) “the redemption payment” has the same meaning as in section 507 (see subsection (1)(d)(ii) of that section).

Annotations

Textual amendments

F1: Word in s. 518(2)(a) omitted (1.4.2009 retrospective) by virtue of Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(2), 6(4)(a)
F2: S. 518(2)(c) and word inserted (1.4.2009 retrospective) by Corporation Tax Act 2009 (Amendment) Order 2009 (S.I. 2009/2860), arts. 1(2), 6(4)(b)
F3: Words in s. 518(2)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 631 (with Sch. 2)

Notes on Part 6

Modifications

C1: Pt. 6 modified (for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed)) by 2005 c. 5, Sch. A1 para. 35(7) (as inserted by Finance Act 2026 (c. 11), s. 58(6), Sch. 11 para. 1)