F1Part 10AAlternative finance arrangements

Annotations:
Amendments (Textual)
F1

Pt. 10A 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. 2 (with Sch. 9 paras. 1-9, 22)

F3Arrangements that are alternative finance arrangements

Annotations:
Amendments (Textual)
F3

S. 564C 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. 4 (with Sch. 9 paras. 1-9, 22)

564FF2Profit share agency arrangements

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 564H (provision not at arm's length: exclusion of arrangements from sections 564C to 564E, this section and section 564G).