Section 564Q | Deduction of income tax at source under Part 15

(1)Chapter 2 of Part 15 and section 876 (deduction of income tax at source: exception for deposit-takers), and Chapter 19 of that Part so far as it has effect for the purposes of Chapter 2 of that Part and section 876, have effect as if—

(a)relevant alternative finance arrangements were a deposit,

(b)for the purposes of section 866(2)(a) such arrangements were a deposit consisting of a loan, and

(c)alternative finance return payable under such arrangements were interest.

(2)For the purposes of subsection (1) alternative finance arrangements are relevant unless they are purchase and resale arrangements where the second purchaser is not a financial institution.

(3)In subsection (2) “the second purchaser” has the same meaning as in section 564C.

(4)In Chapter 12 of Part 15 (funding bonds) references to interest include references to alternative finance return.

(5)Chapters 3 to 5 of Part 15 except section 876, and Chapter 19 of that Part so far as it has effect for the purposes of those provisions, apply to alternative finance return as they apply to interest.