Corporation Tax Act 2009 section 501

Introduction to Chapter

Section 501 introduces the chapter on alternative finance arrangements and defines the five types of arrangement that are treated as loan relationships for corporation tax purposes.

• Alternative finance arrangements are treated as loan relationships, meaning they follow the same corporation tax rules as conventional lending and borrowing.
• There are five types of alternative finance arrangement: purchase and resale arrangements, diminishing shared ownership arrangements, deposit arrangements, profit share agency arrangements, and investment bond arrangements.
• Each type of arrangement is defined by reference to its own specific section within the chapter, which sets out the detailed conditions that must be met.
• The term "financial institution" is separately defined within the chapter and is relevant to determining which entities can enter into these arrangements.