- abandonment programme
means an abandonment programme under Part 4 of the Petroleum Act 1998;
- accounting standard
means any accounting standard issued or recognised by— (a) the Accounting Standards Board (or successor body), or (b) the International Accounting Standards Board (or successor body).
- Additional VAT liability
means an amount which a person becomes liable to pay by way of adjustment under the VAT capital items legislation in respect of input tax.
- Additional VAT rebate
means an amount which a person becomes entitled to deduct by way of adjustment under the VAT capital items legislation in respect of input tax.
- affected parties
means the past owner and the purchaser from the past owner;
- agricultural building
means a building, fence or other works referred to in subsection (1)(a), and
- allowable exploration expenditure
has the same meaning as in section 555;
- allowable research and development expenditure
means capital expenditure incurred by the Authority on research and development directly undertaken by the Authority or on their behalf. 3 In this paragraph— • “asset” includes part of an asset;
- allowance statement
means a written statement, identifying the building or structure to which it relates, of—
- altering land
means—
- amounts received by way of refund
includes any amount that would be so received in respect of S's interest under the leaseback if any amounts due to B (or, where appropriate, an assignee of B) under the leaseback were disregarded.
- apportionable sum
means the capital sum given by the lessee for the lease;
- Appropriate chargeable period
means—
- appropriate pool
means—
- approved body
has the meaning given in section 56(4) of the Housing Act 1980 (c. 51).
- arrangement
includes any transaction or series of transactions;
- arrangements
includes any agreement (including an agreed valuation), understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
- asset
includes part of an asset;
- assisted area
means— (a) an area specified as a development area under section 1 of the Industrial Development Act 1982, or (b) Northern Ireland;
- assumed disposal value
means the disposal value that, in making the calculation referred to in subsection (1)(c), was assumed to be brought into account pursuant to section 262AC(3)(h).
- Assured tenancy
means—
- avoidance arrangements
means arrangements the main purpose, or one of the main purposes, of which is to obtain a tax advantage (for any person) under this Part.
- back-office activities
has the same meaning as in Part 8B of CTA 2010 (see section 357XI of that Act);
- balancing event
means an event by reason of which the company is required by Part 3 of the Capital Allowances Act 2001 to bring into account any proceeds.”
- biogas
means gas produced by the anaerobic conversion of organic matter and used for propelling vehicles;
- body of persons
includes a partnership.
- building
includes a reference to— (a) a structure, (b) part of a building or structure;
- business of leasing plant or machinery
has the same meaning as in Chapter 4 of Part 9 of CTA 2010 (sales of lessors: leasing business carried on by a company in partnership), and
- capital consideration
means consideration which consists of a capital sum or would be a capital sum if it had consisted of a money payment, and • “rent” includes any consideration which is not capital consideration.
- capital expenditure
includes any contribution to capital expenditure.
- Capital value
means any capital sum—
- car
has the same meaning as in Part 2 (see section 268A);
- caravan
includes, in relation to a holiday caravan site, anything that is treated as a caravan for the purposes of—
- cash basis deductible amount
means any amount of unrelieved qualifying expenditure for which a deduction would be allowed in calculating the profits of the trade, profession, vocation or property business (as the case may be) on the cash basis on the assumption that the expenditure was paid in the tax year for which the person enters the cash basis.
- cash basis expenditure
means any expenditure incurred— (a) in the case of a trade, profession or vocation, at a time when the cash basis applies in relation to the trade, profession or vocation (see section 24A of ITTOIA 2005), or (b) in the case of a property business, in a tax year for which the profits of the business are calculated on the cash basis (see section 271D of that Act);
- Change arrangements
means any arrangements made to bring about, or otherwise connected with, the qualifying change;
- chargeable period
means—
- co-ownership authorised contractual scheme
means a co-ownership scheme which is authorised for the purposes of the Financial Services and Markets Act 2000 by an authorisation order in force under section 261D(1) of that Act;
- co-ownership contractual scheme
means— (a) a co-ownership authorised contractual scheme, or (b) a Reserved Investor Fund (Contractual Scheme);
- co-ownership scheme
has the same meaning as in Part 17 of that Act (see section 235A(2) of that Act);
- collateral agreement
means an agreement which might reasonably be construed as being collateral to the lease.
- commercial amount
means the amount that would have been given if the transaction had been at arm’s length, • “commercial premium” means the premium that would have been given if the transaction had been at arm’s length, and • “commercial rent” means such rent as may reasonably be expected to have been required in respect of the subordinate interest (having regard to any premium paid in consideration of the grant of the interest) if the transaction had been at arm’s length.
- commercial building
means a building which is used— and which is not in use as, or as part of, a dwelling-house.
- commercial premium
means the premium that would have been given if the transaction had been at arm’s length, and • “commercial rent” means such rent as may reasonably be expected to have been required in respect of the subordinate interest (having regard to any premium paid in consideration of the grant of the interest) if the transaction had been at arm’s length.
- commercial rent
means such rent as may reasonably be expected to have been required in respect of the subordinate interest (having regard to any premium paid in consideration of the grant of the interest) if the transaction had been at arm’s length.
- company
includes any body corporate or unincorporated association, but does not include a partnership (and see also subsection (2)), • “control” is to be read in accordance with sections 450 and 451 of CTA 2010 (except where otherwise indicated), • “principal settlement” has the meaning given by paragraph 1 of Schedule 4ZA to TCGA 1992, • “relative” means brother, sister, ancestor or lineal descendant, • “settlement” has the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act), and • “sub-fund settlement” has the meaning given by paragraph 1 of Schedule 4ZA to TCGA 1992.
- company with investment business
has the same meaning as in Part 16 of CTA 2009 (see section 1218B of that Act).
- Comparable commercial transactions
means transactions—
- control
means the power of a person (“ P ”) to secure— that the affairs of company A are conducted in accordance with P’s wishes.
- converted Reserved Investor Fund (Contractual Scheme)
means a Reserved Investor Fund (Contractual Scheme) that was previously a co-ownership authorised contractual scheme, and
- correct accounts
means accounts drawn up in accordance with generally accepted accounting practice.
- corresponding overseas activity
means an activity that would be a qualifying activity if the person carrying it on were resident in the United Kingdom.
- cushion gas
means gas that functions or is intended to function as plant in a particular gas storage facility.
- cycle
has the meaning given by section 192(1) of the Road Traffic Act 1988.
- Decommissioning
means—
- Decommissioning expenditure
means expenditure in connection with decommissioning.
- designated assisted area
has the meaning given by section 45K;
- diesel
means any diesel fuel within the definition in Article 2 of Directive 98/70/EC of the European Parliament and of the Council;
- Disabled person
means a person in receipt of—
- disadvantaged area
means—
- disc
means an original master film disc or original master audio disc;
- disposal event
means any event of a kind that requires a disposal value to be brought into account under this Part (whether under section 61(1) or otherwise).
- disposal receipt
means a disposal value that a person is required to bring into account in accordance with—
- disposal value
means— (a) a disposal value for the purposes of Part 2, 4A, 5, 6, 7, 8 or 10, or (b) proceeds from a balancing event for the purposes of Part 3 or 3A;
- Double taxation arrangements
means arrangements which have effect under section 2(1) of the Taxation (International and Other Provisions) Act 2010 (double taxation relief by agreement with territories outside the United Kingdom).
- dredging
includes—
- dual resident investing company
has the same meaning as in section 949 of CTA 2010 (dual resident investing companies);
- dwelling-house
has the same meaning as in the Rent Act 1977 (c. 42).
- election
means an election under section 199;
- electric vehicle
means a road vehicle that can be propelled by electrical power (whether or not it can also be propelled by another kind of power);
- electric vehicle charging point
means a facility for charging an electric vehicle.
- electrically-propelled
has the meaning given in section 268B.
- energy services agreement
means an agreement entered into by an energy services provider (“ the energy services provider ”) and another person (“ the client ”) that makes provision, with a view to saving energy or using energy more efficiently, for—
- energy services provider
means a person carrying on a qualifying activity consisting wholly or mainly in the provision of energy management services.
- enterprise zone
means an area recognised by the Treasury as an area in respect of which there is a special focus on economic development and identified on a map published by the Treasury for the purposes of this section;
- entertainment
includes hospitality of any kind, and
- equipment lease
means—
- equipment lessee
means the person to whom the equipment lease provides for the plant or machinery to be leased.
- equipment lessor
means the person from whom (directly or indirectly) the equipment lease provides for the plant or machinery to be leased, and • “equipment lessee” means the person to whom the equipment lease provides for the plant or machinery to be leased.
- excluded financial trade
means a trade that is an excluded trade for the purposes of Part 8B of CTA 2010 merely because it falls within one or more of the following provisions of that Act— (a) section 357XB (lending and investment), (b) section 357XC (investment management), or (c) section 357XE (re-insurance trade);
- Exclusive licence
means a licence to exercise those rights to the exclusion of the grantor and all other persons for the period remaining until the rights come to an end.
- expenditure of a revenue nature
means expenditure which, if it were incurred in the course of a trade the profits of which are chargeable to tax under Case I of Schedule D, would be taken into account for the purpose of computing the profits or losses of the trade, and b “receipts of a revenue nature” means receipts which, if they were receipts of such a trade, would be taken into account for that purpose. 5 For the purposes of this section and sections 40B to 40D below, a “master version” of a film means a master negative, master tape or master audio disc of the film and includes any rights in the film (or its soundtrack) that are held or acquired with the master negative, master tape or master audio disc. 40B 1 In computing the profits or gains accruing to any person from a trade or business which consists of or includes the exploitation of master versions of films, expenditure which is— a incurred on the production or acquisition of a master version of a film, and b expenditure of a revenue nature (whether as a result of section 40A above or otherwise), must be allocated to relevant periods in accordance with this section. 2 Subsection (1) above does not apply if an election u
- fair value
means— less
- film
means an original master negative of the film and its soundtrack, if any;
- finance lease
means a lease which, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as a finance lease or loan in accounts of C or P;
- fixture
has the meaning given by section 173(1).
- Foreign concession
means a right or privilege granted by the government of, or any municipality or other authority in, a territory outside the United Kingdom.
- foreign country
means any territory outside the United Kingdom;
- foreign oil concession
means any right which—
- foreign sector of the continental shelf
means an area within which rights are exercisable with respect to the sea bed and subsoil and their natural resources by a territory outside the United Kingdom, • “oil” and “oil field” have the same meaning as in Part 1 of OTA 1975, • “ring fence trade” has the same meaning as in Part 8 of CTA 2010 (see section 277 of that Act), and • “UK marine area” has the meaning given by section 42 of the Marine and Coastal Access Act 2009.
- foreign tidal waters
means tidal waters in an area within which rights are exercisable with respect to the bed and subsoil of the body of water in question and their natural resources by a country or territory outside the United Kingdom.
- freehold interest in land
means—
- funding lease
has the meaning given by section 70J;
- gas refuelling station
means any premises, or that part of any premises, where vehicles are refuelled with natural gas, biogas or hydrogen fuel;
- General Block Exemption Regulation
means Commission Regulation (EU) No 651/2014 (General block exemption Regulation) as it had effect in the United Kingdom immediately before IP completion day;
- goods
has the same meaning as in Part I of the 1993 Act;
- goods vehicle
means a mechanically propelled road vehicle which is of a design primarily suited for the conveyance of goods or burden of any description;
- group relief company
means— (a) a company to which group relief under Part 5 of CTA 2010 would be available (on the making of a claim) in respect of balancing allowances surrendered by the taxpayer in the taxpayer's final chargeable period, and (b) a company to which such relief would be available (on the making of a claim) in respect of balancing allowances surrendered by a company within paragraph (a);
- highway undertaking
means so much of any undertaking relating to the design, building, financing and operation of roads as is carried on— the exploitation of highway concessions.
- husbandry
includes—
- hydrogen fuel
means a fuel consisting of gaseous or cryogenic liquid hydrogen which is used for propelling vehicles;
- income from patents
means—
- industrial building
means, subject to Chapter 2 (which defines terms used in subsection (1)(b) etc.), a building or structure which is within subsection (1)(b).
- industrial estate
includes an area (such as a business park) which consists wholly or mainly of commercial buildings.
- interest in an oil licence
includes, if there is an agreement which— any entitlement under the agreement to, or to a share of, that oil or the proceeds of its sale.
- Interest in land
means—
- Investment asset
means an asset that is within subsection (1).
- know-how
means any industrial information or techniques likely to assist in—
- land remediation
means—
- lease
includes— but does not include a mortgage (and “lessee”, “lessor” and “leasehold interest” are to be read accordingly).
- lease and finance leaseback
has the meaning given in section 228A;
- leasehold estate
means the interest of a tenant in property subject to a lease, and
- leasehold interest
(or “leasehold estate”) means the interest of a tenant in property subject to a lease, and
- leasing
includes letting a ship or aircraft on charter or letting any other asset on hire, and
- lessee
means the lessee under the operating lease;
- lessor
means the lessor under the operating lease;
- letting bedroom
means a private bedroom available for letting to the public generally and not normally in the same occupation for more than one month.
- licensed area
means (subject to section 553(4) and (5))—
- licensee
means the person with the concession or any person having an interest in it.
- light maintenance depot
means— (a) any light maintenance depot within the meaning of Part I of the 1993 Act, and (b) any land or other property which is the equivalent of such a depot in relation to anything which is a railway only when “railway” has the meaning given by section 81(2) of the 1993 Act.
- long funding finance lease
means- (a) in relation to any person, a long funding lease that meets the finance lease test by virtue of section 70N(1)(a), or (b) in relation to a lessee, a right-of-use lease which is a long funding lease— (i) that meets the lease payments test in section 70O or the useful economic life test in section 70P, but (ii) is not a lease that, before a relevant change of classification, was a long funding operating lease;
- long funding lease
has the meaning given by section 70G;
- long funding operating lease
means a long funding lease which is not a long funding finance lease;
- long lease
means a lease the duration of which exceeds 50 years.
- long-life asset
means plant or machinery which—
- Long-life asset expenditure
means qualifying expenditure—
- main rate activity
means so much of the trade as is not an NI rate activity.
- Main rate car
means—
- management asset
has the same meaning as in Chapter 1 of Part 12 (long-term business).
- market value amount
means the amount of expenditure which it would have been normal and reasonable to incur on the works, services or other matters—
- mineral asset
means—
- mineral deposits
includes any natural deposits capable of being lifted or extracted from the earth, and for this purpose geothermal energy is to be treated as a natural deposit.
- mineral exploration and access
has the same meaning as in Chapter 13 (provisions affecting the mining and oil industries) and Part 5 (mineral extraction allowances).
- mineral extraction trade
means a trade which consists of, or includes, the working of a source of mineral deposits but to the extent only that the profits or gains from that trade are, or (if there were any) would be, chargeable to tax.
- minimum lease payments
has the meaning given by section 70YE;
- motor cycle
has the meaning given by section 185(1) of the Road Traffic Act 1988.
- mutual arrangement for avoidance
means an arrangement—
- New
means unused and not second-hand.
- new expenditure
means expenditure incurred on or after 1 April 2010, and • “old expenditure” means expenditure incurred before that date.
- non-cancellable period
has the same meaning as in section 70YF (the “term” of a lease);
- non-designated area
means an area which is not a designated assisted area within the meaning of section 45K;
- non-qualifying activity
means any activity which is not a qualifying activity, and • “qualifying activity” includes any activity listed in section 15(1) even if any profits or gains from it are not chargeable to tax.
- non-resident
means a person who— (a) is not resident in the United Kingdom, and (b) does not use the plant or machinery exclusively for earning profits chargeable to tax;
- non-resident company
means a company resident outside the United Kingdom.
- normal writing-down allowance
means a writing-down allowance of an amount determined without regard to sections 102 and 109 (reduced rates).
- Northern Ireland firm
has the meaning given by section 357WA of CTA 2010.
- Northern Ireland regional establishment
has the same meaning as in Part 8B of CTA 2010 (see Chapter 5 of that Part as read, in relation to a partnership, with section 357WA(4) of that Act);
- notice
means a notice in writing;
- Notional accounting period
means each of the following periods— but there are to be no notional accounting periods after the end of the post-cessation period.
- Obtain a relevant tax advantage
means become entitled to a reduction in profits, or an increase in losses, for the purposes of corporation tax in consequence of a claim to allowances in respect of qualifying expenditure in respect of the relevant plant and machinery or qualifying expenditure within section 212K(3).
- offshore infrastructure
means—
- oil
has the meaning given by section 556(3).
- oil licence
means a UK oil licence or a foreign oil concession.
- old expenditure
means expenditure incurred before that date.
- operating lease
means the lease referred to in subsection (1)(b);
- other participator
means a person, not connected with R, who is a licensee in respect of any licensed area wholly or partly included in the oil field in question.
- parent undertaking
has the same meaning as in section 1162 of the Companies Act 2006.
- partial depreciation subsidy
means a sum which—
- patent rights
means the right to do or authorise the doing of anything which would, but for that right, be an infringement of a patent.
- payment
includes the provision of any benefit, the assumption of any liability and any other transfer of money's worth (and “payable” is to be construed accordingly);
- penultimate chargeable period
means the chargeable period preceding the final chargeable period;
- Period of account
means—
- petrol
has the meaning given by Article 2 of Directive 98/70/EC of the European Parliament and of the Council;
- planning permission
has the meaning given by the relevant planning enactment;
- plant or machinery lease
has the meaning given by section 70K (and see also sections 70L and 70M);
- pre-trading expenditure
means capital expenditure incurred before the day on which a person begins to carry on a trade that is a mineral extraction trade, but only if there is no prior time when the person carried on that trade and the trade was not a mineral extraction trade,
- premises
means any building or structure or part of a building or structure.
- premium
includes any capital consideration, except so much of any sum as corresponds to — (a) an amount brought into account as a receipt in calculating the profits of a property business under sections 217 to 221 of CTA 2009 that is calculated by reference to the sum, or (b) an amount brought into account as a receipt in calculating the profits of a UK property business under sections 277 to 281 of ITTOIA 2005 that is calculated by reference to the sum;
- principal settlement
has the meaning given by paragraph 1 of Schedule 4ZA to TCGA 1992, • “relative” means brother, sister, ancestor or lineal descendant, • “settlement” has the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act), and • “sub-fund settlement” has the meaning given by paragraph 1 of Schedule 4ZA to TCGA 1992.
- profits
has the same meaning as in Part 2 of CTA 2009 (see section 2(2) of that Act).
- property business
means a UK property business... or an overseas property business;
- public authority
includes the Crown or any government or local authority.
- public body
means the Crown or any government or public or local authority (whether in the United Kingdom or elsewhere).
- qualifying activity
has the meaning given by section 270CA;
- qualifying business premises
means any premises in respect of which the following requirements are met—
- qualifying company
means a body incorporated under the law of a relevant state.
- qualifying expenditure
means qualifying expenditure within the meaning of any Part of this Act.
- qualifying lease payments
means the minimum payments under the lease (including any initial payment), excluding the following—
- qualifying lessee
means a lessee under a lease to which the relevant interest is reversionary, and • “qualifying licensee” means a licensee of— (a) the person incurring the qualifying expenditure, or (b) a lessee of the person incurring the qualifying expenditure.
- qualifying licensee
means a licensee of— (a) the person incurring the qualifying expenditure, or (b) a lessee of the person incurring the qualifying expenditure.
- Qualifying non-trade expenditure
means capital expenditure incurred by a person on the purchase of patent rights if—
- qualifying partnership trade
has the same meaning as in Part 8B of CTA 2010 (see section 357WB of that Act);
- Qualifying person
means—
- qualifying trade
has the same meaning as in Part 8B of CTA 2010 (see section 357KB of that Act).
- Qualifying trade expenditure
means capital expenditure incurred by a person on the purchase of patent rights for the purposes of a trade within the charge to tax carried on by the person.
- qualifying UK or foreign tax
means any tax or duty chargeable under the law of any part of the United Kingdom, or under the law of any foreign country, other than— (a) income tax, (b) corporation tax, (c) any tax chargeable under the law of a foreign country which is similar to income tax or corporation tax, and here “foreign country” means any territory outside the United Kingdom;
- qualifying use
has the meaning given by section 270CE;
- railway
has the same meaning as in section 81(2) of the 1993 Act (“railway” includes tramways and other modes of guided transport).
- Railway asset
means—
- Railway business
means a business so far as carried on to provide a service to the public for carrying goods or passengers by means of a railway in the United Kingdom or the Channel Tunnel.
- receipts of a revenue nature
means receipts which, if they were receipts of such a trade, would be taken into account for that purpose. 5 For the purposes of this section and sections 40B to 40D below, a “master version” of a film means a master negative, master tape or master audio disc of the film and includes any rights in the film (or its soundtrack) that are held or acquired with the master negative, master tape or master audio disc. 40B 1 In computing the profits or gains accruing to any person from a trade or business which consists of or includes the exploitation of master versions of films, expenditure which is— a incurred on the production or acquisition of a master version of a film, and b expenditure of a revenue nature (whether as a result of section 40A above or otherwise), must be allocated to relevant periods in accordance with this section. 2 Subsection (1) above does not apply if an election under section 40D below has effect with respect to the expenditure. 3 In this section “relevant period” means— a a period for which the accounts of the trade or business concerned are made up, or b if no accounts of the trade or business concerned are made up for a period— i
- registered ship
means a ship registered in a register of shipping established and maintained under the law of any country or territory.
- Related arrangements
means arrangements between two or more persons which relate— and for this purpose it is immaterial whether the interest or right in question is granted by the person entitled to the relevant interest or another person.
- relative
means brother, sister, ancestor or lineal descendant, • “settlement” has the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act), and • “sub-fund settlement” has the meaning given by paragraph 1 of Schedule 4ZA to TCGA 1992.
- relevant 2 year period
means the period of 2 years beginning with the date when the lessee is granted the lease.
- relevant accounting period
means an accounting period ending before, but ending not more than 6 years before, “the relevant day” as defined by section 18F of CTA 2009.
- relevant activity
means—
- relevant allowance or charge
means an allowance or charge under Part... 5, 6, 9 or 10 which (ignoring the circumstances mentioned in subsection (2)(a)) would or might fall to be made, as a result of the sale, to or on any of the parties to it.
- relevant amount
means an amount equal to the permitted maximum under section 228B as it applies in relation to the leaseback.
- Relevant area
means—