Section 151O Provision not at arm's length: exclusion of arrangements from sections 151J to 151NF1

(1)

Arrangements to which this section applies are not—

(a)

purchase and resale arrangements,

(b)

diminishing shared ownership arrangements,

(c)

deposit arrangements,

(d)

profit share agency arrangements, or

(e)

investment bond arrangements.

(2)

This section applies to arrangements if—

(a)

apart from this section they would be alternative finance arrangements,

(b)

subsection (3) or (5) of section 147 of TIOPA 2010 (tax calculations to be based on arm's length, not actual, provision) requires the profits and losses of a person who is a party to the arrangements to be calculated for tax purposes as if the arm's length provision (within the meaning of that section) had been made or imposed rather than in accordance with the arrangements,

(c)

any person who is an affected person for the purposes of Part 4 of that Act (“the affected person”) is entitled to—

(i)

relevant return in relation to the arrangements, or

(ii)

an amount representing relevant return in relation to them, and

(d)

the affected person is not subject—

(i)

to income tax or corporation tax, or

(ii)

to any corresponding tax under the law of a territory outside the United Kingdom,

on the relevant return or the amount representing it.

(3)

In this section “relevant return”, in relation to arrangements, means any amount which would be alternative finance return if the arrangements were alternative finance arrangements.

Annotations

Textual amendments

F1: S. 151O 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. 35 (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)