Citation, commencement and effect

1. —(1) This Order may be cited as the Alternative Finance Arrangements (Amendment) Order 2009.

(2) This Order shall come into force on 15th October 2009.

(3) This Order shall have effect in relation to arrangements entered into on or after 15th October 2009.

Amendment of section 46(2) of the Finance Act 2005

2. —(1)Chapter 5 of Part 2 of the Finance Act 2005( 3 ) is amended as follows.

(2) In section 46(2) (alternative finance arrangements)—

(a) in paragraph (da)( 4 ) for “or 47A” substitute “, 47A or 49A”,

(b) omit “or” at the end of that paragraph, and

(c) after paragraph (e) insert—

“ (f) an insurance company as defined in section 431(2) of ICTA , or

(g) a person who is authorised in a jurisdiction outside the United Kingdom to carry on a business which consists of effecting or carrying out contracts of insurance or substantially similar business but not an insurance special purpose vehicle as defined in section 431(2) of ICTA. ” .

(3) In section 49A(1) (alternative finance arrangements: profit share agency) for paragraph (a) substitute—

“ (a) a person (“the principal”) appoints an agent,

(ab) one or both of the principal and agent is a financial institution, ” .

Amendment of Chapter 6 of Part 6 of the Corporation Tax Act 2009

3. —(1)Chapter 6 of Part 6 of the Corporation Tax Act 2009 is amended as follows.

(2) In section 502(1) (meaning of “financial institution”)—

(a) in paragraph (e) for “or diminishing shared ownership arrangements” substitute “, diminishing shared ownership arrangements or profit share agency arrangements”,

(b) omit “or” at the end of that paragraph, and

(c) after paragraph (f) insert—

“ (g) an insurance company, as defined by section 431(2) of ICTA, or

(h) a person who is authorised in a jurisdiction outside the United Kingdom to carry on a business which consists of effecting or carrying out contracts of insurance or substantially similar business but not an insurance special purpose vehicle as defined in section 431(2) of ICTA. ” .

(3) In section 506(1) (profit share agency arrangements) for paragraph (a) substitute—

“ (a) a person (“the principal”) appoints an agent,

(ab) one or both of the principal and agent is a financial institution, ” .