- adjusted ring fence profits
has the meaning given by section 501A of ICTA, • “the Instalment Payments Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/ 3175), • “supplementary charge” means any sum chargeable under section 501A(1) of ICTA as if it were an amount of corporation tax.
- Application Note G
means Application Note G to Financial Reporting Standard 5 issued by the Accounting Standards Board in November 2003;
- arrangement
includes any transaction or series of transactions;
- arrangements
includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), • “group”, in relation to companies, means a group determined in accordance with section 170, • “qualifying time”, in relation to any arrangements, means any time which falls in the period— (a) beginning with the time at which the arrangements are made, and (b) ending with the time at which the matters (other than any tax advantage) intended to be secured by the arrangements are secured, • “tax advantage” has the meaning given by section 184D. 184H 1 This section applies for the purposes of corporation tax in respect of chargeable gains if conditions A to D are satisfied. 2 Condition A is that— a a chargeable gain (the “relevant gain”) accrues to a company (“the relevant company”) directly or indirectly in consequence of, or otherwise in connection with, any arrangements, and b losses accrue (or have accrued) to the relevant company on any disposal of any asset (whether before or after or as part of the arrangements). 3 Condition B is that the relevant company, or a company connected with the relevant company, incurs any expenditure— a which is a
- associated policy
means a policy or contract which entitles an associated person to receive payments determined by reference to the value of or the income from the property. 7 For the definition of “associated person” see paragraph 30. 8 For the purposes of this paragraph— • “capital redemption policy” means a contract made in the course of a capital redemption business, as defined in section 458(3) of ICTA;
- bereaved minor
means a person— a who has not yet attained the age of 18, and b at least one of whose parents has died. 71D 1 This section applies to settled property (including property settled before 22nd March 2006), but subject to subsection (5) below, if— a the property is held on trusts for the benefit of a person who has not yet attained the age of 25, b at least one of the person's parents has died, and c subsection (2) below applies to the trusts. 2 This subsection applies to trusts— a established under the will of a deceased parent of the person mentioned in subsection (1)(a) above, or b established under the Criminal Injuries Compensation Scheme, which secure that the conditions
- bingo
means any version of that game, irrespective of by what name it is described. 7 The Treasury may by order amend subsections (4) to (6).”
- bioethanol
has the meaning given in section 2AB of the Hydrocarbon Oil Duties Act 1979, • “relevant type of fuel” means— (a) bioethanol, or (b) a mixture of bioethanol and unleaded petrol, if the proportion of bioethanol by volume is at least 85%, and • “unleaded petrol” has the meaning given in section 1(3C) of the Hydrocarbon Oil Duties Act 1979. 7 The Secretary of State may, with the consent of the Treasury, by regulations amend sub-paragraph (6).”
- building
includes a reference to— (a) a structure, (b) part of a building or structure;
- business
means—
- business day
has the same meaning as in the Bills of Exchange Act 1882;”;
- business hours
means the period beginning with 09.00 and ending with 17.00 (UK time) on a business day (within the meaning of the Bills of Exchange Act 1882 (c. 61)).”
- business of leasing plant or machinery
has the same meaning as in Part 3 of Schedule 10 to FA 2006 (sale etc of lessor companies etc), and b section 785ZA of ICTA applies for determining whether the interest of the company in the leasing business during the chargeable period of the partnership is determined on an allowable basis.”
- capital redemption policy
means a contract made in the course of a capital redemption business, as defined in section 458(3) of ICTA;
- capping agreement
means an agreement under subsection (9) of section 21, entered into on 1st April 2005, the sole or main effect of which is to impose a limit on the NDA's financial responsibility under that section;
- chargeable assets
means assets on the disposal of which a chargeable gain— a may accrue, or b might have accrued. 4 Nothing in subsections (1) and (2) prevents sums received under a non-life policy of insurance of the risk of— a any kind of damage to assets, or b the loss or depreciation of assets, from being sums derived from the assets for the purposes of this Act (and, in particular, for the purposes of section 22). 5 A gain accruing on a disposal of, or of an interest in, the rights conferred by a contract for an annuity is not a chargeable gain if the annuity is— a a non-deferred annuity, or b an annuity granted (or deemed to be granted) under the Government Annuities Act 1929. 6 If a
- child
includes a stepchild. 4B For the purposes of subsection (3A) above no account shall be taken of a term of a settlement relating to dependent children of an individual in respect of any time at which he has no dependent child.”
- closure notice
means a notice under paragraph 32 of Schedule 18 to the Finance Act 1998, • “company tax return” means the return required to be delivered pursuant to a notice under paragraph 3 of that Schedule, as read with paragraph 4 of that Schedule, • “discovery assessment” means an assessment under paragraph 41 of that Schedule, • “notice of enquiry” means a notice under paragraph 24 of that Schedule.”
- collective investment scheme
has the meaning given by section 235 of FISMA 2000, and b “participant”, in relation to such a scheme, has the meaning given by subsection (2) of that section. 19 1 For the purposes of paragraph 16 a pension scheme holds an interest in a trust if Condition A or B is met. 2 Condition A is that— a the pension scheme has a relevant interest in the trust, b the pension scheme, a member of the pension scheme or a person connected with such a member has made a payment to the trust on or after the acquisition of the interest, and c the payment is not one to which sub-paragraph (7) applies. 3 Condition B is that— a a member of the pension scheme or a person connected with such a member has a relevant interest in the trust, b the pension scheme has made a payment to the trust on or after the acquisition of the interest, and c the payment is not one to which sub-paragraph (7) applies. 4 For the purposes of applying paragraph 16 for determining whether a pension scheme holds an interest in property indirectly, a person other than the pension scheme holds an interest in a trust if — a the person has a relevant interest in the trust, b the person has made a paymen
- commencement day
means the day on which this Act is passed.
- company tax return
means the return required to be delivered pursuant to a notice under paragraph 3 of that Schedule, as read with paragraph 4 of that Schedule, • “discovery assessment” means an assessment under paragraph 41 of that Schedule, • “notice of enquiry” means a notice under paragraph 24 of that Schedule.”
- construction operations
has the same meaning as in Chapter 3 of Part 3 of the Finance Act 2004 (see section 74 of that Act).”
- control
has the meaning given by section 574 of CAA 2001;
- corresponding overseas activity
means an activity that would be a qualifying activity if the person carrying it on were resident in the United Kingdom.”
- corresponding supply
means a taxable (but not a zero-rated) supply of goods which— a is a supply of goods to which this section applies, and b is not an excepted supply. 3 The relevant supply, and the corresponding supplies made to the recipient in the month in which the relevant supply is made, are to be treated for the purposes of Schedule 1— a as taxable supplies of the recipient (as well as taxable supplies of the person making them), and b in so far as the recipient is supplied in connection with the carrying on by him of any business, as supplies made by him in the course or furtherance of that business, but the relevant supply, and those corresponding supplies, are to be so treated only in so far as their total value exceeds the disregarded amount. 4 Nothing in subsection (3)(b) requires any supply to be disregarded for the purposes of Schedule 1 on the grounds that it is a supply of capital assets of the recipient's business. 5 For the purposes of subsections (1) and (3), the value of a supply is determined on the basis that no VAT is chargeable on the supply. 6 If— a a taxable person makes a supply of goods to a person (“the recipient”) at any time, b the supply is of go
- cost
means the amount of the expenditure incurred by the lessor on the provision of the plant or machinery;
- delivery proceeds
means the price received for a relevant delivery.”
- dependent child
means a child who— i is under the age of 18 years, ii is unmarried, and iii does not have a civil partner, and b “child” includes a stepchild. 4B For the purposes of subsection (3A) above no account shall be taken of a term of a settlement relating to dependent children of an individual in respect of any time at which he has no dependent child.”
- deposit
has the meaning given by section 481(3) of ICTA.”
- discovery assessment
means an assessment under paragraph 41 of that Schedule, • “notice of enquiry” means a notice under paragraph 24 of that Schedule.”
- duly
means in accordance with the arrangements for the time being governing the time and manner of— a publication, or variation, of the final loading schedule for the calendar month in which loading is or was to take place, or b notification of modifications to that schedule, and, in any case, before the end of the calendar month immediately preceding that in which loading is to take place. 10 If the Treasury consider that, for the purpose of defining “loading slot”, any period of days for the time being specified by or under this Act as the period of days within which loading of oil on to a ship is to take place is, or is to be, no longer appropriate, they may by regulations make provision for, or in connection with,— a varying the number of days in the period, b determining the day that is to be the notional delivery day if the number, as varied, is an even number.
- effective date
has the same meaning as in Part 4 of FA 2003.
- election
means an election under this paragraph;
- employment on compulsory recall
means permanent service— a under Part 4 of the Reserve Forces Act 1996, b under Part 5 of that Act, c under a call-out or recall order made under that Act, d having been called out or recalled under the Reserve Forces Act 1980, or e because of any other call-out or recall obligation of an officer. 7J Section 839 of ICTA (connected persons) applies for the purposes of this paragraph.”
- excepted supply
means a supply which is of a description specified in, or determined in accordance with, provision contained in an order made by the Treasury. 11 Any order made under subsection (10) may describe a supply of goods by reference to— a the use which has been made of the goods, or b other matters unrelated to the characteristics of the goods themselves. 12 The Treasury may by order substitute for the sum for the time being specified in subsection (1)(d) such greater sum as they think fit. 13 The Treasury may by order make such amendments of any provision of this Act as they consider necessary or expedient for the purposes of this section or in connection with this section.
- excluded settlement
has the same meaning ”.
- exempt benefit
means a benefit the direct provision of which is exempted from liability to income tax by a provision of Part 4 (employment income: exemptions), and • “specified” means specified in the regulations. 3 Regulations under this section may operate by amending section 266 (exemption of non-cash vouchers for exempt benefits) or section 267 (exemption of credit-tokens used for exempt benefits).”
- fair value
means— a the market value of the leased plant or machinery, less b any grants receivable towards the purchase or use of that plant or machinery. 4 For the purposes of this section— a the interest rate implicit in the lease is the interest rate that would apply in accordance with normal commercial criteria, including, in particular, generally accepted accounting practice (where applicable), but b if the interest rate implicit in the lease cannot be determined in accordance with paragraph (a), it is the temporal discount rate for the purposes of section 70 of the Finance Act 2005 (companies: film relief: valuation of “rights to guaranteed income” and “disposed rights”). 70P A lease meets the useful economic life test if the term of the lease is more than 65% of the remaining useful economic life of the leased plant or machinery. 70Q 1 A lease is not a long funding lease in the case of the lessee if it is excluded by virtue of subsection (2) (but see also subsection (5)). 2 A lease is excluded if the lessor, or any superior lessor (see subsections (7) to (9)),— a is entitled, at the commencement of the term of the lease, to claim a relevant allowance (see subsection (6)),
- film
includes any record, however made, of a sequence of visual images that is capable of being used as a means of showing that sequence as a moving picture;
- film production company
has the same meaning as in Chapter 3 of Part 3 of the Finance Act 2006 (see section 32 of that Act). 2 For the purposes of this Schedule each part of a series of films is treated as a separate film, unless— a the films form a series with not more than 26 parts, b the combined playing time is not more than 26 hours, and c the series constitutes a self-contained work or is a series of documentaries with a common theme, in which case the films are treated as a single film. 3 References in this Schedule to a film include the film soundtrack. 4 For the purposes of this Schedule a film is completed when it is first in a form in which it can reasonably be regarded as ready
- first use amortised market value
means the value that the plant or machinery would have— (a) at the time when it is first brought into use for the purposes of the qualifying activity, but (b) on the assumption that the market value of the plant or machinery at the commencement of the term of the lease had been written off on a straight line basis over the remaining useful economic life of the plant or machinery;
- first use amortised value
means the value that the plant or machinery would have at the time when it is first brought into use for the purposes of the qualifying activity, on the assumption that— (a) the cost of acquiring the plant or machinery had been written off on a straight line basis over the remaining useful economic life of the plant or machinery, and (b) any further capital expenditure incurred had been written off on a straight line basis over so much of the remaining economic life of the plant or machinery as remains at the time when the expenditure is incurred;
- first use market value
means the market value of the plant or machinery at the time when it is first brought into use for the purposes of the qualifying activity;
- foreign country
means any territory outside the United Kingdom;
- foreign tax
means any tax or duty imposed under the law of the territory, or any of the territories, in relation to which the arrangements have been made.
- funding lease
has the meaning given by section 70J;
- further period
means a period falling wholly or partly after the end of the pre-existing term. 3 The person is to be treated as if— a the existing lease terminated at the end of the day before the effective date, b another lease (the “new lease”) were entered into on the effective date, and c the term of the new lease were the unexpired portion of the term of the existing lease, as extended. 4 The person is also to be treated as if the effective date were the date of both— a the inception of the new lease, and b the commencement of the term of the new lease. 5 The new lease is to be taken to be a long funding operating lease. 6 For the purposes of this section the “effective date” is the earlier of— a the day after the end of the pre-existing term of the existing lease;
- gaming machine
means a machine that is a gaming machine for the purposes of section 23 of the Value Added Tax Act 1994 (c. 23).”
- group
has the same meaning as in that section ”.
- ICTA
means the Income and Corporation Taxes Act 1988 (c. 1);
- improvement works
means, in relation to a property, works which— a materially improve the property, and b are not carried out wholly for the purposes of complying with a statutory requirement or a requirement imposed by a government department, a statutory body or a person holding a statutory office. 11 For the purposes of sub-paragraph (10)(a) a property is materially improved by works only if— a its market value on the date the works are substantially completed (“MVW”) exceeds what would have been its market value on that date if the works had not been carried out (“MV”), and b the amount by which MVW exceeds MV is greater than 20% of MV. 12 For the purposes of sub-paragraph (10)(b)— • “statutory body” means a body set up by or under an enactment (including an enactment comprised in, or an instrument made under, an Act of the Scottish Parliament);
- insurance business transfer scheme
means— and for the purposes of this subsection any reference to an enactment is a reference to the enactment as it had effect from time to time.
- internal linked fund
has the meaning given by— (a) the Interim Prudential Sourcebook for Insurers made by the Financial Services Authority under FISMA 2000, or (b) rules made by the Authority under that Act and having effect for the time being in place of the Sourcebook;
- Lease
includes— a an underlease, sublease, tenancy or licence, and b an agreement for any of those things. 4 “Relevant plant or machinery”, in relation to a business of leasing plant or machinery, means plant or machinery on whose provision expenditure is incurred wholly or partly for the purposes of the business.”
- linked asset
means an asset of the insurance company which is identified in its records as an asset by reference to the value of which benefits provided for under a policy or contract are to be determined. 9 For the purposes of this paragraph an annuity is a life annuity if it is— a granted for consideration in money or money's worth in the ordinary course of a business of granting annuities on human life, and b payable for a term ending at a time ascertainable only by reference to the end of a human life, and for this purpose it does not matter that the annuity may in some circumstances end before or after the life. 16 1 For the purposes of the taxable property provisions a person holds an interest in property indirectly if the person does not hold the interest directly but (whether jointly, in common or alone)— a holds an interest in a person who holds the interest in the property directly, or b holds an interest in a person who holds the interest in the property indirectly by virtue of paragraph (a) or this paragraph. 2 For the purposes of the taxable property provisions a person holds an interest in another person if— a the person holds an interest, right or power in or over
- LOCOG
means the private company limited by guarantee incorporated on 22nd October 2004 with the Company Number 05267819 and with the name The London Organising Committee of the Olympic Games Limited.
- long funding finance lease
means a long funding lease that meets the finance lease test by virtue of section 70N(1)(a);
- 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;
- lump sum death benefit
has the same meaning as in Part 4 of that Act (see section 168(2) of that Act);
- management contract
has the same meaning as in section 27;”
- market value
means the market value of the plant or machinery at the commencement of the term of the long funding operating lease;
- minimum lease payments
has the meaning given by section 70YE;
- mobile telephone
means telephone apparatus which— a is not physically connected to a land-line, and b is not used only as a wireless extension to a telephone which is physically connected to a land-line, or any thing which may be used in such apparatus for the purpose of gaining access to, or using, a public electronic communications service. 3 In this section the reference to the provision of a mobile telephone includes a reference to the provision, together with the mobile telephone provided, of access to, or the use of, a public electronic communications service by means of one mobile telephone number. 4 For the purposes of subsection (2) “telephone apparatus” means wireless telegraphy
- non-cancellable period
has the same meaning as in section 70YF (the “term” of a lease);
- non-deferred annuity
means an annuity— a which is not granted under a contract for a deferred annuity, and b which is granted in the ordinary course of a business of granting annuities on the life of any person, and it does not matter whether the annuity includes instalments of capital. 10 In this section a “non-life policy of insurance” means— a a contract made in the course of a capital redemption business, as defined in section 458(3) of the Taxes Act, and b any other policy of insurance which is not a policy of insurance on the life of any person.”
- non-life policy of insurance
means— a a contract made in the course of a capital redemption business, as defined in section 458(3) of the Taxes Act, and b any other policy of insurance which is not a policy of insurance on the life of any person.”
- 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;
- notice of enquiry
means a notice under paragraph 24 of that Schedule.”
- original master version
means the original negative, tape or disc;
- parent
includes step-parent. 2 For the purposes of sections 71A to 71G above, a deceased individual (“D”) shall be taken to have been a parent of another individual (“Y”) if, immediately before D died, D had— a parental responsibility for Y under the law of England and Wales, b parental responsibilities in relation to Y under the law of Scotland, or c parental responsibility for Y under the law of Northern Ireland. 3 In subsection (2)(a) above “parental responsibility” has the same meaning as in the Children Act 1989. 4 In subsection (2)(b) above “parental responsibilities” has the meaning given by section 1(3) of the Children (Scotland) Act 1995. 5 In subsection (2)(c) above “parental res
- parental responsibilities
has the meaning given by section 1(3) of the Children (Scotland) Act 1995. 5 In subsection (2)(c) above “parental responsibility” has the same meaning as in the Children (Northern Ireland) Order 1995.”
- parental responsibility
has the same meaning as in the Children Act 1989. 4 In subsection (2)(b) above “parental responsibilities” has the meaning given by section 1(3) of the Children (Scotland) Act 1995. 5 In subsection (2)(c) above “parental responsibility” has the same meaning as in the Children (Northern Ireland) Order 1995.”
- pension
has the same meaning as in that Part of that Act (see section 165(2) of that Act);
- pension death benefit
has the meaning given by section 167(2) of that Act;
- plant or machinery lease
has the meaning given by section 70K (and see also sections 70L and 70M);
- post-expenditure period of account
means any period of account ending after the incurring of the additional expenditure. 148F 1 This section applies for the purpose of calculating the profits of a person carrying on a trade in a period of account if— a a long funding operating lease terminates in that period of account, and b the person is the lessor under that lease immediately before the termination. 2 Step 1 is to find— a the termination amount (TA);
- pre-change asset
means an asset which was held by the relevant company before the relevant time (but see also sections 184E and 184F). 4 In this section “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable). 5 For the purposes of this section it does not matter— a whether a qualifying loss accrues before, after or at the relevant time, b whether a qualifying loss accrues at a time when there are no chargeable gains from which it could be deducted (or could otherwise have been deducted), or c whether the tax advantage is secured for the company to which a qualifying loss accrues or for any other company. 184B 1 This section applies for the purposes of corporation tax in respect of chargeable gains if— a at any time (“the relevant time”) there is a qualifying change of ownership in relation to a company (“the relevant company”) (see section 184C), b a gain (a “qualifying gain”) accrues to the relevant company or any other company on a disposal of a pre-change asset (see subsection (3)), c the change of ownership occurs directly or indirectly in consequence of, or otherwise in connection with, any arr
- prescribed
means specified in, or determined in accordance with, regulations under this paragraph.
- principal settlement
has the meaning given by paragraph 1 of Schedule 4ZA to TCGA 1992, b “sub-fund election” has the meaning given by paragraph 2 of that Schedule, c “sub-fund settlement” has the meaning given by paragraph 1 of that Schedule, and d the time when a sub-fund election is treated as having taken effect shall be the time when it is treated as having taken effect under paragraph 2 of that Schedule.”
- producer
means the person by whom the arrangements necessary for the making of the film are undertaken;
- profit-sharing arrangements
means the rights of the partners to share in the profits of the business for the period in question.
- property-investment partnership
means a partnership whose sole or main activity is investing or dealing in chargeable interests (whether or not that activity involves the carrying out of construction operations on the land in question);
- qualifying activity
has the same meaning as in Part 2 of CAA 2001;
- qualifying interest in possession
has the meaning it would have apart from sub-paragraphs (1) to (3).
- 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;
- real
has the meaning given by section 353(1) of that Act, f “game of chance” has such meaning as may be prescribed by the Treasury by order, g “bingo” means any version of that game, irrespective of by what name it is described. 7 The Treasury may by order amend subsections (4) to (6).”
- recognised value
means the value at which the plant or machinery is recognised in the books or other financial records of the lessor at the commencement of the long funding operating lease. 6 From— a the relevant value determined in accordance with subsection (4), subtract b the amount which, at the commencement of the term of the lease, is (or, in a case falling within subsection (4)(e), would have been) expected to be the residual value of the plant or machinery, to find the expected gross reduction in value over the term of the lease. 7 Apportion the amount of that expected gross reduction in value to each period of account in which any part of the term of the lease falls. 8 The apportionment must be on a time basis according to the proportion of the term of the lease that falls in each period of account. 9 The amount of the deduction for any period of account is the amount so apportioned to that period. 148E 1 This section applies if, in a period of account,— a a person carrying on a trade is the lessor of any plant or machinery under a long funding operating lease, b the person incurs capital expenditure in relation to the plant or machinery, and c that capital expenditure (
- relevant deferral provision
means any of the following— a section 139 (reconstruction involving transfer of business), b section 140 (postponement of charge on transfer of assets to non-resident company), c section 140A (transfer of a UK trade), d section 140E (merger leaving assets within UK tax charge), e sections 152 and 153 (replacement of business assets), f section 187 (postponement of charge on deemed disposal under section 185). 10 If— a a pre-change asset of the relevant company is transferred to another company (“the transferee company”), b any of sections 139, 140A and 140E apply to the companies in the case of the asset, and c the transfer of the asset is made directly or indirectly in consequence of, or otherwise in connection with, the arrangements mentioned in section 184A or 184B, the asset is to be regarded as a “pre-change asset” in the hands of the transferee company for the purposes of sections 184A and 184B. 11 In such a case, subsection (1) applies as if the reference in paragraph (a) of that subsection to the relevant company were to the transferee company. 184F 1 This section applies, in the case of any pre-change asset of the relevant company or any pre-c
- relevant defined benefits arrangement
means— a the defined benefits arrangement mentioned in paragraph (a) or (b) of sub-paragraph (11), or b any other defined benefits arrangement relating to the member (under the pension scheme or any other registered pension scheme) in the case of which any of the sums or assets held for the purposes of, or representing accrued rights under, the arrangement directly or indirectly represent sums or assets previously held for the purposes of, or representing accrued rights under, the defined benefits arrangement so mentioned.”
- relevant delivery
means a delivery of oil under a contract made at arm's length in respect of which there has been no effective nomination, and c “delivery proceeds” means the price received for a relevant delivery.”
- Relevant foreign tax
means any tax or duty—
- relief
means relief by way of— a an allowance under this Act, b a deduction in computing profits for the purposes of income tax or corporation tax, c a deduction from total profits or total income for the purposes of either of those taxes. 10 This section is to be construed as one with section 70A. 70D 1 This section applies where the following conditions are met— a a person is the lessee of plant or machinery under a long funding finance lease, b as a result of section 70A, the person falls to be regarded as having incurred qualifying expenditure on the provision of the plant or machinery, and c the lessor incurs expenditure in relation to the plant or machinery, d as a result of the less
- resident
means a person who— (a) is resident in the United Kingdom, or (b) uses the plant or machinery exclusively for earning profits chargeable to tax. 70W 1 This section applies in any case where the following conditions are met— a a person (the “old lessor”) is lessor of plant or machinery under a plant or machinery lease (the “old lease”), b during the term of the lease, the old lessor transfers the plant or machinery to another person (the “new lessor”), c the transfer is not the grant of a plant or machinery lease by the old lessor, d immediately after the transfer, the new lessor is the lessor of the plant or machinery under a lease (“the new lease”) (whether or not the same lease as the old lease). 2 If it is not otherwise the case,— a the old lessor is to be treated as if the old lease terminated immediately before the transfer, and b the new lessor is to be treated as if the new lease had been entered into immediately after the transfer. 3 The new lessor is also to be treated as if the date of the transfer were the date of both— a the inception of the new lease, and b the commencement of the term of the new lease, if it is not otherwise the case. 4 If, immediately befo
- residential property
means— a a building that is used or suitable for use as a dwelling, b any land consisting of, or forming part of, the garden or grounds of such a building (including a building on any such land) which is used or intended for use for a purpose connected with the enjoyment of the building, c hotel or similar accommodation (but see paragraph 14(2)), or d a beach hut, in the United Kingdom or elsewhere. 2 For the purposes of the taxable property provisions “building” includes— a a structure, and b part of a building or structure. 8 1 For the purposes of the taxable property provisions a building used for any of the following purposes is not residential property— a a home or other institution providing residential accommodation for children;
- residual amount
means so much of the fair value of the plant or machinery subject to the lease as cannot reasonably be expected to be recovered by the lessor from the payments under the lease. 4 In the definition of “residual amount” in subsection (3), “fair value” means— a the market value of the leased plant or machinery, less b any grants receivable towards the purchase or use of that plant or machinery. 70YF 1 The term of a lease is the period comprising— a so much of the post-commencement period as is a non-cancellable period, and b any subsequent periods which meet the conditions in subsection (2). 2 The conditions are that— a the lessee has an option to continue to lease the asset for the period (whether with or without further payment), and b it is reasonably certain, at the inception of the lease, that the lessee will exercise that option. 3 The “post-commencement period” is so much of the period of the lease as begins with the commencement of the term of the lease. 4 A “non-cancellable period” is any period during which the lessee may terminate the lease only— a upon the occurrence of some remote contingency, or b upon payment by the lessee of such an additional amount
- revenue and customs information
means information provided by the Commissioners (but subject to the express exclusion in section 19(2)). 6 Section 19 of that Act shall, in so far as it applies by virtue of this section, be treated for the purposes of section 28 of this Act as an offence under this Act.”
- Revenue and Customs official
has the same meaning as in section 18 of the Commissioners for Revenue and Customs Act 2005 (c. 11) (confidentiality).
- ring fence trade
means a ring fence trade in respect of which tax is chargeable under section 501A of ICTA (supplementary charge in respect of ring fence trades).
- scheme-held taxable property
means property— a which is taxable property, and b an interest in which is held by the pension scheme. 185C 1 For the purposes of section 185B(2), where no person who holds the interest in the property directly during the tax year does so by virtue of a lease of residential property, the deemed market value of the interest for the year is— where— MV is the opening market value (see subsection (2)), UP is the total of any unauthorised payments treated as made by the pension scheme under section 174A in relation to the property in the tax year, other than any such payment treated as made by virtue of the property becoming scheme-held taxable property in the year, and RPI is the figure expressed as a decimal which represents the percentage increase in the retail prices index between the first day in the tax year on which the property is scheme-held taxable property and the last such day (or, if there is no such increase, is nil). 2 In subsection (1) “the opening market value” means— a if the property is not scheme-held taxable property immediately before the beginning of the tax year, the market value of the interest in the property immediately after the
- security
means any such asset as is mentioned in subsection (2)(c) and (d) of that section. 7 For the purposes of this section— a references to a person connected with the borrower do not include the lender, and b references to a person connected with the lender do not include the borrower.”
- settled property
means any property held in trust other than property to which section 60 applies (and references, however expressed, to property comprised in a settlement are references to settled property). ”
- settlement
has the same meaning as in section 620 of ITTOIA 2005, and b “trustee”, in relation to a settlement in relation to which there would be no trustees apart from this paragraph, means any person in whom the settled property or its management is for the time being vested.”
- specified
means specified in the regulations. 3 Regulations under this section may operate by amending section 266 (exemption of non-cash vouchers for exempt benefits) or section 267 (exemption of credit-tokens used for exempt benefits).”
- statutory body
means a body set up by or under an enactment (including an enactment comprised in, or an instrument made under, an Act of the Scottish Parliament);
- statutory office
means a body set up by or under such an enactment;
- statutory requirement
means a requirement imposed by provision made by or under such an enactment. 13 This paragraph is subject to paragraph 37D. 37C 1 This paragraph applies where— a on 6th April 2006 an investment-regulated pension scheme holds an interest in taxable property which it acquired before that date, and b immediately before that date the pension scheme was prohibited from holding the interest. 2 This paragraph also applies where— a on 6th April 2006 an investment-regulated pension scheme holds an interest in taxable property indirectly which it acquired before that date, and b immediately before that date the pension scheme was prohibited from holding the interest it held in
- sub-fund election
has the meaning given by paragraph 2 of that Schedule, c “sub-fund settlement” has the meaning given by paragraph 1 of that Schedule, and d the time when a sub-fund election is treated as having taken effect shall be the time when it is treated as having taken effect under paragraph 2 of that Schedule.”
- sub-fund settlement
has the meaning given by paragraph 1 of that Schedule, and d the time when a sub-fund election is treated as having taken effect shall be the time when it is treated as having taken effect under paragraph 2 of that Schedule.”
- supplementary charge
means any sum chargeable under section 501A(1) of ICTA as if it were an amount of corporation tax.
- tax advantage
has the meaning given by section 184D. 184H 1 This section applies for the purposes of corporation tax in respect of chargeable gains if conditions A to D are satisfied. 2 Condition A is that— a a chargeable gain (the “relevant gain”) accrues to a company (“the relevant company”) directly or indirectly in consequence of, or otherwise in connection with, any arrangements, and b losses accrue (or have accrued) to the relevant company on any disposal of any asset (whether before or after or as part of the arrangements). 3 Condition B is that the relevant company, or a company connected with the relevant company, incurs any expenditure— a which is allowable as a deduction in calculating its total profits chargeable to corporation tax but which is not allowable as a deduction in computing its gains under section 38, and b which is incurred directly or indirectly in consequence of, or otherwise in connection with, the arrangements. 4 Condition C is that the main purpose, or one of the main purposes, of the arrangements is to secure a tax advantage that involves both— a the deduction of the expenditure in calculating total profits, and b the deduction of any of the losses
- tax return
means— (a) a company tax return under paragraph 3 of Schedule 18 to the Finance Act 1998, or (b) a return under section 8 of the Taxes Management Act 1970 (income tax: personal return). 70I 1 Construe “short lease” in accordance with this section. 2 A lease whose term is 5 years or less is a short lease. 3 Where the term of a lease is— a longer than 5 years, but b not longer than 7 years, the lease is a short lease if Conditions A, B and C are met. 4 Condition A is that the lease is one which, under generally accepted accounting practice, falls (or would fall) to be treated as a finance lease. 5 Condition B is that— a the residual value of the plant or machinery which is implied in the terms of the lease, is not more than b 5% of the market value of the plant or machinery at the commencement of the term of the lease, as estimated at the inception of the lease. 6 Condition C is that under the terms of the lease— a the total rentals falling due in the first reference year, if less than the total rentals falling due in the second reference year, are no more than 10% less than those rentals, and b the total rentals falling due in the final year or in any reference year aft
- telephone apparatus
means wireless telegraphy apparatus designed or adapted for the primary purpose of transmitting and receiving spoken messages and used in connection with a public electronic communications service.”
- the 1992 Acts
means— • the Social Security Contributions and Benefits Act 1992, and • the Social Security Contributions and Benefits (Northern Ireland) Act 1992. 89B 1 In this Act “disabled person's interest” means— a an interest in possession to which a person is under section 89(2) above treated as beneficially entitled, b an interest in possession to which a person is under section 89A(4) above treated as beneficially entitled, c an interest in possession in settled property (other than an interest within paragraph (a) or (b) above) to which a disabled person becomes beneficially entitled on or after 22nd March 2006, or d an interest in possession in settled property (other than an inte
- the Criminal Injuries Compensation Scheme
means— a the schemes established by arrangements made under the Criminal Injuries Compensation Act 1995, b arrangements made by the Secretary of State for compensation for criminal injuries in operation before the commencement of those schemes, and c the scheme established under the Criminal Injuries Compensation (Northern Ireland) Order 2002. 6 The preceding provisions of this section apply in relation to Scotland as if, in subsection (2) above, before “which” there were inserted “ the purposes of ”. 71B 1 Subject to subsections (2) and (3) below, there shall be a charge to tax under this section— a where settled property ceases to be property to
- the development costs
means the total cost of the works to convert or adapt the property at the time when the unauthorised payment is treated as made. 8 Where, at the time the unauthorised payment is treated as made— a an amount will be payable for the works only if some uncertain future event occurs, or b an amount will cease to be payable for the works if some uncertain future event occurs, the development costs are to be determined on the assumption that the amount will be payable or, as the case may be, will not cease to be payable. 9 Where, at that time, an amount payable for the works— a depends on uncertain future events, or b cannot otherwise be ascertained, that amount is to be determined for the purposes of sub-paragraph (7) on the basis of a reasonable estimate. 40 1 This paragraph applies to a case within subsection (3) of section 174A (conversion or adaptation as residential property). 2 This paragraph applies if — a sub-paragraph (8) of paragraph 39 has effect when an unauthorised payment is treated as made under that paragraph, b an amount estimated under that sub-paragraph later becomes ascertained, and c the ascertained amount is more than the estimated amount. 3
- the EEA amount
has the same meaning as in Part 2 of Schedule 18A to the Taxes Act 1988.”
- the error or mistake provisions
means— (a) section 33 of the Taxes Management Act 1970;
- the excess of nominated proceeds for the period
means, in relation to a participator in the oil field, that proportion of the sum of his monthly excesses for the chargeable period (if any) which is attributable to the field.”
- the finance lease test
means the finance lease test in section 70N;
- the first new period
means the chargeable period that ends on 31st December 2006.
- the Host City Contract
has the meaning given by section 1 of the London Olympic Games and Paralympic Games Act 2006.
- the Instalment Payments Regulations
means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/ 3175), • “supplementary charge” means any sum chargeable under section 501A(1) of ICTA as if it were an amount of corporation tax.
- the last old period
means the chargeable period that ends on 30th June 2006, and
- the main constructor
means the contractor under the main contract for the construction of the plant or machinery;
- the new expenditure
means so much of the expenditure as is expenditure incurred on or after that day.
- the no-longer-possessed property
means the property in which the interest in possession subsisted immediately before it came to an end, other than any of it to which the individual becomes absolutely and beneficially entitled in possession on the coming to an end of the interest in possession.”
- the old expenditure
means so much of the expenditure as is expenditure incurred before the day on which this Act is passed, and
- the opening market value
means— a if the property is not scheme-held taxable property immediately before the beginning of the tax year, the market value of the interest in the property immediately after the time during the year when the property first becomes scheme-held taxable property, and b otherwise, the deemed market value of the interest for the previous tax year. 3 For the purposes of section 185B(2), where a person who holds the interest in the property directly during the tax year does so by virtue of a lease of residential property, the deemed market value of the interest for the year is the relevant rental value of the property calculated in accordance with paragraph 34 of Schedule 29A on the following assumptions— a that the lease was granted when the property first became scheme-held taxable property;
- the profits of the business
means the profits of the business as calculated for corporation tax purposes leaving out of account—
- the relevant date
means— a if the employer is treated by virtue of any Act as making the notional payment before the date on which the Act is passed, that date, and b in any other case, the date on which the employer is treated as making the notional payment.”
- the relevant earlier occasion
means the occasion (or last occasion) before the 71D-to-71A occasion when the property became property to which section 71D below applied, but b if the property, when it became property to which section 71D below applied, ceased at the same time to be property to which section 71 above applied without ceasing to be settled property, “the relevant earlier occasion” means the occasion (or last occasion) when the property became property to which section 71 above applied. 71C In sections 71A and 71B above “bereaved minor” means a person— a who has not yet attained the age of 18, and b at least one of whose parents has died. 71D 1 This section applies to settled p
- the relevant enforcement provisions
means so much of— a this Act and any other enactment, and b any subordinate legislation, as has effect for the purposes of, or in connection with the enforcement of, any obligation to account for and pay VAT. 9 For the purposes of this section, goods are goods to which this section applies if they are of a description specified in an order made by the Treasury. 10 For the purposes of this section, an “excepted supply” means a supply which is of a description specified in, or determined in accordance with, provision contained in an order made by the Treasury. 11 Any order made under subsection (10) may describe a supply of goods by reference to— a the use which has been made of the goods, or b other matters unrelated to the characteristics of the goods themselves. 12 The Treasury may by order substitute for the sum for the time being specified in subsection (1)(d) such greater sum as they think fit. 13 The Treasury may by order make such amendments of any provision of this Act as they consider necessary or expedient for the purposes of this section or in connection with this section.
- the relevant market value
means— a the market value, at the date the works began, of the interest in the property held by the person who holds it directly, or b if the interest in the property is a lease at a rent, the amount of consideration that would be treated as given by the person for the lease by virtue of paragraph 34 if it were assigned to the person at that time. 7 In this paragraph “the development costs” means the total cost of the works to convert or adapt the property at the time when the unauthorised payment is treated as made. 8 Where, at the time the unauthorised payment is treated as made— a an amount will be payable for the works only if some uncertain future event occurs, or b an amount will cease to be payable for the works if some uncertain future event occurs, the development costs are to be determined on the assumption that the amount will be payable or, as the case may be, will not cease to be payable. 9 Where, at that time, an amount payable for the works— a depends on uncertain future events, or b cannot otherwise be ascertained, that amount is to be determined for the purposes of sub-paragraph (7) on the basis of a reasonable estimate. 40 1 This paragr
- the relevant period
means the period given by subsection (7A) below or, if shorter, the period given by subsection (7B) below. 7A The period given by this subsection is the period beginning with the latest of— a the day on which the settlement commenced, b the date of the last ten-year anniversary of the settlement to fall before the day on which the property became comprised in the settlement, c the date of the last ten-year anniversary of the settlement to fall before the day on which the property was designated under section 31 above on a claim under this section, and d 13th March 1975, and ending with the day before the event giving rise to the charge. 7B The period given by this subse
- the taxable property provisions
means— a section 173(7A) (exception from benefit charge where taxable property held by investment-regulated pension scheme), b section 174A and this Schedule, c sections 185A to 185I (income and gains from taxable property), d section 273ZA (member liability for scheme sanction charge where pension scheme non-UK resident), and e paragraphs 37A to 37I of Schedule 36 (transitional provisions). 2 1 For the purposes of the taxable property provisions a registered pension scheme which is an occupational pension scheme is an investment-regulated pension scheme if— a there are 50 or fewer members of the pension scheme, and one or more of those members meets the condition in sub-paragraph (2), or b at least 10% of the members of the pension scheme meet that condition. 2 The condition is that either— a the member, or b a person related to the member, is or has been able (directly or indirectly) to direct, influence or advise on the manner of investment of any of the sums and assets held for the purposes of the pension scheme. 3 1 This paragraph applies in the case of an arrangement under a registered pension scheme if— a the pension scheme is an occupationa
- transfer of property
means— a a disposal of property by the trustees of Settlement 1, and b the acquisition by the trustees of Settlement 2 of— i property disposed of by the trustees of Settlement 1, or ii property created by the disposal;
- transitionally-protected interest
means— (a) an interest in possession to which a person was beneficially entitled immediately before, and on, 22nd March 2006, or (b) a transitional serial interest. 46B 1 Subsections (2) and (5) below apply where— a a settlement commenced before 22nd March 2006, b a contract of life insurance was entered into before that day, c a premium payable under the contract is paid, or an allowed variation is made to the contract, at a particular time on or after that day, d immediately before that day, and at all subsequent times up to the particular time, there were rights under the contract that— i were comprised in the settlement, and ii were settled property to which section 71 below applied, e rights under the contract become, by reference to payment of the premium or as a result of the variation, comprised in the settlement, and f any variation of the contract on or after 22nd March 2006 but before the particular time, so far as it was a variation that— i increased the benefits secured by the contract, or ii extended the term of the insurance provided by the contract, was an allowed variation. 2 If the rights mentioned in subsection (1)(e) above wou
- unleaded petrol
has the meaning given in section 1(3C) of the Hydrocarbon Oil Duties Act 1979. 7 The Secretary of State may, with the consent of the Treasury, by regulations amend sub-paragraph (6).”