Taxation (International and Other Provisions) Act 2010 section Schedule 9 paragraph 42

Application of Chapter 5B of Part 13 of ITA 2007 (finance arrangements) to pre-6 June 2006 arrangements

Schedule 9 paragraph 42 ensures that the newer finance arrangement rules do not override existing rent factoring provisions that continue to apply to arrangements made before 6 June 2006.

• Chapter 5B of Part 13 of ITA 2007 introduced new rules dealing with certain finance arrangements, including the factoring of income.
• These new rules do not apply to any arrangement made before 6 June 2006 where the earlier rent factoring provisions (formerly sections 43B or 43D of ICTA) already govern that arrangement.
• Although sections 43B and 43D of ICTA were formally repealed by Finance Act 2006, that repeal does not take effect in relation to transactions entered into before 6 June 2006.
• The practical result is that pre-6 June 2006 rent factoring arrangements remain subject to the old ICTA rules rather than the newer Chapter 5B provisions.