Finance Bill Tracking Service 2007 | Budget 2007 | Budget Notes

BN13 Securitisation companies

Who is likely to be affected?

1   Large companies involved in securitisations or issuance of debt.

General description of the measure

2   Legislation will be introduced in Finance Bill 2007 to amend legislation in Finance Act (FA) 2005 relating to the taxation of securitisation companies.

Operative date

3   The measure will have effect for periods of account ending on or after the date that Finance Bill 2007 receives Royal Assent.

Current law and proposed revisions

4   Section 83 FA 2005 allows securitisation companies to be taxed on the basis of accounting standards in force before the introduction of International Accounting Standards, for periods of account ending before 1 January 2008. This measure will allow for the regime to be extended by regulation.

5   Section 84 FA 2005 introduced a regulation-making power to enable permanent tax rules for securitisation companies to be introduced at a later date. This measure will modify this regulation-making power to cover a wider range of securitisations.

Further advice

6   If you have any questions about this change, please contact Tony Sadler on 020 7147 2608 (email: Tony.Sadler@hmrc.gsi.gov.uk). Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk