Taxation (International and Other Provisions) Act 2010 Schedule 8 Part 10

Factoring of income etc.

Schedule 8 Part 10 (paragraphs 264–275) makes consequential amendments to several existing tax Acts to reflect the rewrite of the rules on factoring of income receipts, structured finance arrangements, and loan or credit transactions into new provisions in ITA 2007 and CTA 2010.

• The old ICTA 1988 provisions on factoring of income receipts (sections 774A–774G) and transactions associated with loans or credit (section 786) are repealed, as these rules have been rewritten into ITA 2007 Chapter 5B (finance arrangements) and Chapter 5C (loan or credit transactions).
• Cross-references in the Taxation of Chargeable Gains Act 1992 relating to structured finance arrangements are updated to point to the new ITA 2007 sections (809BZA–809BZC) and the equivalent CTA 2010 sections (758–760), rather than the old ICTA provisions.
• A new section 281A is inserted into ITTOIA 2005 to ensure that the lease premium rules (sections 277–281) do not apply where the grant of a lease is part of a finance arrangement as defined under the new ITA 2007 provisions, preventing a double charge.
• ITA 2007 is updated with new overview references to Chapters 5B and 5C, a revised exception for transfers of income streams made by way of security under finance arrangements, updated tables of provisions, and a comprehensive index of defined expressions used in the new Chapter 5B.