# Finance Act 2017, Paragraph 8


After section 554R insert—
“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).”

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Source: https://www.legislation.gov.uk/ukpga/2017/10/schedule/6/paragraph/8 (the official version)
Page: https://openlegislation.uk/finance-act-2017/schedule-6/paragraph-8
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.