CFM90880 - Debt cap: financial services groups: lending activities

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

The definition of lending activities as a qualifying activity

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

  • 바카라 사이트˜Acceptance of deposits or other repayable funds바카라 사이트™ (section 268 (1) (a) ). As well as customer deposits, this also includes the provision of saving products.
  • 바카라 사이트˜Lending of money, including consumer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions (including forfeiting)바카라 사이트™ (section 268 (1) (b)). The term 바카라 사이트˜lending of money바카라 사이트™ is intended to have a wide definition; the subsequent examples are not intended to be exclusive. 바카라 사이트˜Forfeiting바카라 사이트™ is a method of providing export finance, where the export receivables are generally guaranteed by the importers bank.
  • 바카라 사이트˜Finance leasing (as lessor)바카라 사이트™ (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.
  • 바카라 사이트˜Issuing and administering means of payment바카라 사이트™ (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.
  • 바카라 사이트˜Provision of guarantees or commitments to provide money바카라 사이트™ (section 268 (1) (e)).
  • 바카라 사이트˜Money transmission services바카라 사이트™ (section 268 (1) (f)). For purposes of section 268 (1) this will include the exchange of foreign currency.
  • 바카라 사이트˜Provision of alternative finance arrangements바카라 사이트™ (section 268 (1) (g)). The term 바카라 사이트˜alternative finance arrangements바카라 사이트™ has the same meaning as in CTA09/PT6/CH6 (see CFM44000+ for an explanation of what the term means for tax purposes).
  • 바카라 사이트˜Other activities carried out in connection with activities falling within any of paragraphs (a) to (g)바카라 사이트™ (section 268 (1) (h)) . This is intended to cover activities that are directly related to the activities within (a) to (g). The 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 바카라 사이트˜activities바카라 사이트™ includes buying, holding, managing and selling assets - for example the purchase or sale of a book of loans or mortgages.