Income Tax Act 2007 section 564B

Meaning of "financial institution"

Section 564B defines the term "financial institution" for the purposes of the alternative finance arrangements rules in Part 10A, where at least one party to the arrangements must be a financial institution.

• A financial institution includes banks, building societies, their wholly-owned subsidiaries, and persons with FCA permission to deal in credit agreements or hire contracts
• Bond-issuers qualify as financial institutions, but only in relation to bond assets that are rights under purchase and resale, diminishing shared ownership, or profit share agency arrangements
• Overseas entities authorised to accept deposits and grant credits, as well as insurance companies (whether UK-defined or authorised abroad), also fall within the definition
• A company counts as a wholly-owned subsidiary of a bank or building society only if its sole members are the parent entity (or persons acting on its behalf) and the parent's own wholly-owned subsidiaries (or persons acting on their behalf)