Part 6Relationships treated as loan relationships etc
Chapter 6Alternative finance arrangements
Arrangements that are alternative finance arrangements
505Deposit arrangements
1
This section applies to arrangements if under them—
a
a person (“the depositor”) deposits money with a financial institution,
b
the money, together with money deposited with the institution by other persons, is used by it with a view to producing a profit,
c
from time to time the institution makes or credits a payment to the depositor out of profit resulting from the use of the money,
d
the payment is in proportion to the amount deposited by the depositor, and
e
the payments so made or credited by the institution equate, in substance, to the return on an investment of money at interest.
2
This section is subject to section 508 (provision not at arm's length: exclusion of arrangements from sections 503 and 504, this section, and sections 506 and 507).