Taxation (International and Other Provisions) Act 2010 section 38

Alternative finance arrangements not offshore funds

Section 38 ensures that certain alternative finance arrangement provisions continue to work correctly with the older offshore funds rules where those older rules still apply.

• This is a transitional provision dealing with the changeover from the old offshore funds regime to the new one in TIOPA 2010.
• Where the old offshore funds rules (Chapter 5 of Part 17 of ICTA) continue to apply for any purpose, references in the alternative finance legislation are adjusted accordingly.
• Specifically, references to section 354 of TIOPA 2010 in the capital gains, income tax and corporation tax alternative finance provisions are to be read as references to the old ICTA chapter instead.
• This ensures that the rules preventing alternative finance arrangements from being treated as offshore funds remain effective under both the old and new regimes.