Certain tax consequences not to have effect
9(1)This paragraph applies if—
(a)the section which would have applied as mentioned in paragraph 4(1)(c) above is section 196B of FA 2004, and
(b)the asset-backed arrangement would have the relevant effect (ignoring this paragraph).
(2)The asset-backed arrangement is not to have the relevant effect.
(3)The relevant effect is that—
(a)an amount of income on which the borrower or a person connected with the borrower would otherwise have been charged to tax is not so charged,
(b)an amount which would otherwise have been brought into account in calculating for tax purposes any income of the borrower or of a person connected with the borrower is not so brought into account, or
(c)the borrower or a person connected with the borrower becomes entitled to deduct an amount—
(i)in calculating income for tax purposes, or
(ii)from total income or total profits (as the case may be).
(4)But if the borrower is a partnership the relevant effect is that—
(a)an amount of income on which a member of the partnership would otherwise have been charged to tax is not so charged,
(b)an amount which would otherwise have been brought into account in calculating for tax purposes any income of a member of the partnership is not so brought into account, or
(c)a member of the partnership becomes entitled to deduct an amount—
(i)in calculating income for tax purposes, or
(ii)from total income or total profits (as the case may be).
(5)In sub-paragraphs (3) and (4) “amount” means an amount which arises on or after 29 November 2011 but on or before the completion day.