Regulation 12 Securitisation companies that have an unallowable purpose

(1)

The specified regulations do not apply to a securitisation company that—

(a)

has an unallowable purpose, or

(b)

at any time has had an unallowable purpose.

(2)

For the purpose of these Regulations a securitisation company has an unallowable purpose if the purpose for which the securitisation company is a party to—

(a)

the capital market arrangement,

(b)

any related transaction, or

(c)

any transaction in pursuance of the capital market arrangement,

includes a purpose which is not amongst the business or other commercial purposes of the securitisation company.

(3)

If one of the purposes for which a securitisation company is at any time a party to—

(a)

any capital market arrangement,

(b)

any related transaction in the case of any capital market arrangement, or

(c)

any transaction in pursuance of any capital market arrangement,

is a tax avoidance purpose, that purpose shall be taken to be a business or other commercial purpose of the securitisation company only where it is not the main purpose, or one of the main purposes, for which the company is party to the arrangements or transaction at that time.

(4)

In this regulation—

“tax avoidance purpose” means any purpose that consists in securing a tax advantage for any other person;
“tax advantage” has the same meaning as in section 709(1) of ICTA (tax avoidance).