Corporation Tax Act 2009 section 502

Meaning of "financial institution"

Section 502 defines who counts as a "financial institution" for the purposes of the alternative finance arrangements rules in this chapter of the Corporation Tax Act 2009.

• Banks, building societies and their wholly-owned subsidiaries are financial institutions, as are FCA-authorised consumer credit and hire providers
• Bond-issuers under alternative finance arrangements qualify, but only in respect of specific types of bond assets such as purchase and resale, diminishing shared ownership or profit share agency arrangements
• Foreign entities authorised in their own jurisdiction to take deposits and grant credit, or to carry on insurance business, are included — though overseas insurance special purpose vehicles are excluded
• UK insurance companies as defined in Finance Act 2012 are also financial institutions for these purposes