Budget Notes

BN40 ALTERNATIVE FINANCE ARRANGEMENTS

Who is likely to be affected?

1. Individuals and companies who are party to alternative finance arrangements.

General description of the measure

2. Legislation will be introduced in Finance Bill 2008 to amend the power to make provision relating to alternative finance arrangements by secondary legislation.

Operative date

3. The amended power will have effect on and after the date that Finance Bill 2008 receives Royal Assent.

Current law and proposed revisions

4. Section 98 of Finance Act (FA) 2006 permits amendments to the tax rules on alternative finance arrangements in Chapter 5 of Part 2 to FA 2005 to be made by order. This power allows for the introduction of provisions relating to new arrangements, but does not allow for amendments to the rules on existing arrangements. This measure will introduce a further power to permit amendments to existing tax rules on alternative finance arrangements to be made by secondary legislation.

Further advice

5. If you have any questions about this change, please contact Tony Sadler on 020 7147 2608 (e-mail: tony.sadler@hmrc.gsi.gov.uk) or Sue Davies on 020 7147 2565 (e-mail: sue.davies@hmrc.gsi.gov.uk). Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk