[196E Employer asset-backed contributions: “acceptable structured finance arrangement” (2)]
Finance Act 2004 (2004 c 12) | Legislation

[196E  Employer asset-backed contributions: “acceptable structured finance arrangement” (2)]

[(1)     For the purposes of section 196D the asset-backed arrangement is an “acceptable structured finance arrangement” if conditions M to Q are met.

(2)     Condition M is that—

(a)     in accordance with generally accepted accounting practice, the partnership's accounts for the period in which the advance is received record a financial liability (“the recorded financial liability”) in respect of the advance, and

(b)     the asset-backed arrangement is a type 2 finance arrangement for the purposes of Chapter 5B of Part 13 of ITA 2007 or Chapter 2 of Part 16 of CTA 2010 (finance arrangements).

(3)     Condition N is that—

(a)     the lender is a responsible authority,

(b)     the advance is money which is paid by the lender directly to the partnership wholly and directly out of E's contribution, and

(c)     the advance and the recorded financial liability (as originally recorded) are both of an amount equal to the amount of E's contribution.

(4)     Condition O is that, as at the time the advance is paid, the position of the lender is as follows—

(a)     it is the lender (and not any person connected with the lender) who

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