Section 151M Profit share agency arrangementsF1

(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).

Annotations

Textual amendments

F1: S. 151M inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 33 (with Sch. 9 paras. 1-9, 22)

Notes on Part IV

Modifications

C1: Pt. IV: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)

Notes on Chapter 4

Textual amendments

F1: Pt. 4 Ch. 4 inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 28 (with Sch. 9 paras. 1-9, 22)

Modifications

C1: Pt. 4 Ch. 4 applied (with modifications) (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 9 para. 40 (with Sch. 9 paras. 1-9, 22)

Notes on Arrangements that are alternative finance arrangements

Textual amendments

F1: S. 151J and cross-heading inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 2 para. 30 (with Sch. 9 paras. 1-9, 22)