CFM72500 - Other tax rules on corporate finance: securitisation: periods beginning on or after 1 January 2007: the regulations: conditions to be met by securitisation companies
Specified regulations
Regulations 11 and 12 contain conditions that must be met by all ‘securitisation companiesâ€� (as defined in Regulations 4 to 10). »Ê¹ÚÌåÓýappse are the ‘payments conditionâ€� (Regulation 11 - CFM72510) and the ‘unallowable purposes testâ€� (Regulation 12 - CFM72570).
If a company fails to meet these conditions, the special corporation tax charge in Regulation 14 (CFM72580) does not apply to it, nor do the modifications to the corporation tax rules set out in Regulations 15 to 20 and Regulation 23 (CFM72675). A company that fails to meet either the payments condition or the unallowable purposes test will still be a ‘securitisation company� (unless it also falls outside the scope of the definitions in Regulations 4 to 10). But it will not be taxed in accordance with Regulation 14.