SCHEDULES

SCHEDULE 2 U.K.Alternative finance arrangements

Part 1 U.K.New Part 10A of ITA 2007

21 U.K.After section 564S insert—

“564T Treatment as securities

(1) Investment bond arrangements are securities for the purposes of the Income Tax Acts (including Chapters 1 to 5 of Part 7 of ITEPA 2003).

(2) For those purposes—

(a) a reference in an enactment to redemption is to be taken as a reference to making the redemption payment, and

(b) a reference in an enactment to interest is to be taken as a reference to alternative finance return.

(3) In subsection (2) “the redemption payment” has the same meaning as in section 564G (see subsection (1)(d)(ii) of that section).”