Paragraph 273

For section 809AZE (transfers of income streams: exception for transfer by way of security) substitute—

“Exception: transfer by way of security

809AZE

(1)

This Chapter does not apply if—

(a)

the consideration for the transfer is the advance under a type 1 finance arrangement, and

(b)

the transferor is, or is a member of a partnership which is, the borrower in relation to the arrangement.

(2)

This Chapter does not apply if—

(a)

the consideration for the transfer is the advance under a type 2 finance arrangement or a type 3 finance arrangement, and

(b)

the transferor is a member of the partnership which receives that advance under the arrangement.

(3)

In this section—

• “type 1 finance arrangement” has the meaning given for the purposes of Chapter 5B by section 809BZA,

• “type 2 finance arrangement” has the meaning given for the purposes of Chapter 5B by section 809BZF, and

• “type 3 finance arrangement” has the meaning given for the purposes of Chapter 5B by section 809BZJ.”