Corporation Tax Act 2009 section 513

Other arrangements

Section 513 defines what counts as "alternative finance return" for three types of alternative finance arrangement: deposit arrangements, profit share agency arrangements, and investment bond arrangements.

• For deposit arrangements, amounts paid or credited to a depositor by a financial institution out of the profits generated from using the deposited money are treated as alternative finance return.
• For profit share agency arrangements, amounts paid or credited by a financial institution to the principal, representing their entitlement to profits under the arrangement, are treated as alternative finance return.
• For investment bond arrangements, the additional payments made under the arrangement (being payments over and above the original bond subscription amount) are treated as alternative finance return.
• The term "alternative finance return" replaces the former term "profit share return" used in earlier legislation, bringing consistent terminology across all types of alternative finance arrangement.