»Ê¹ÚÌåÓýapp

This guidance applies to worldwide group periods of account ending before or straddling 1 April 2017.

»Ê¹ÚÌåÓýapp definition of lending activities as a qualifying activity

»Ê¹ÚÌåÓýapp first qualifying activity is lending activities and activities that are ancillary to lending activities. »Ê¹ÚÌåÓýapp term lending activities is defined TIOPA10/S268 and is made up of the following:

• ‘Acceptance of deposits or other repayable fundsâ€� (section 268 (1) (a) ). As well as customer deposits, this also includes the provision of saving products.
• ‘Lending of money, including consumer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions (including forfeiting)â€� (section 268 (1) (b)). »Ê¹ÚÌåÓýapp term ‘lending of moneyâ€� is intended to have a wide definition; the subsequent examples are not intended to be exclusive. ‘Forfeitingâ€� is a method of providing export finance, where the export receivables are generally guaranteed by the importers bank.
• ‘Finance leasing (as lessor)â€� (section 268 (1) (c)). This includes finance leases as a finance lease is the provision of a secured loan. Operating leases and hire purchase agreements are not finance leases and so are not qualifying activities. For a long funding lease whether or not it is a finance or operating lease depends upon the accounting treatment of the lease.
• ‘Issuing and administering means of paymentâ€� (section 268 (1) (d)). Examples would include the issue and administering of cheque books, or much more commonly now the issue and administering of debit or credit cards.
• ‘Provision of guarantees or commitments to provide moneyâ€� (section 268 (1) (e)).
• ‘Money transmission servicesâ€� (section 268 (1) (f)). For purposes of section 268 (1) this will include the exchange of foreign currency.
• ‘Provision of alternative finance arrangementsâ€� (section 268 (1) (g)). »Ê¹ÚÌåÓýapp term ‘alternative finance arrangementsâ€� has the same meaning as in CTA09/PT6/CH6 (see CFM44000+ for an explanation of what the term means for tax purposes).
• ‘Other activities carried out in connection with activities falling within any of paragraphs (a) to (g)â€� (section 268 (1) (h)) . This is intended to cover activities that are directly related to the activities within (a) to (g). »Ê¹ÚÌåÓýapp type of activity will include for example the charging and receipt of an arrangement fee in respect of a loan of money. Section 268 (5) explains that the term ‘activitiesâ€� includes buying, holding, managing and selling assets - for example the purchase or sale of a book of loans or mortgages.