Securitisations

Types of securitisation

There is no uniform type of securitisation.

Asset backed securitisation

In a simple asset backed securitisation structure (also known as ABS or a true sale securitisation), a company (known as the originator) monetises (sells) its assets to an orphan special purpose vehicle (SPV) in order to raise cash. The SPV funds the acquisition of the assets by issuing listed loan notes to the market. The assets underlying the securitisation are known as securitised assets.

For more information on the UK tax treatment of securitisation companies that are taxed in accordance with the permanent securitisation regime in the Taxation of Securitisation Companies Regulations 2006 (Securitisation Regs), SI 2006/3296, as amended, see Practice Notes: Asset-backed securitisations—the UK tax treatment and Securitisations and tax—what is a note-issuing company?

Whole business securitisation

A whole business securitisation (also known as an operating asset securitisation) differs from the usual asset backed securitisation transaction in that it does not involve a sale of a pool of assets to an SPV. Instead, it is a transaction whereby a group of companies (also referred to as being members of a securitisation group)

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