- a decommissioning fund
means a fund which—
- a relevant interest restriction return
means an interest restriction return for a period of account in relation to which the accounting period is a relevant accounting period.
- a worldwide group
means—
- abandonment guarantee
has the same meaning as it has for the purposes of section 105 of FA 1991 (see section 104 of that Act), and • “the guarantor” and “the relevant participator” have the same meaning as in section 104 of that Act. 225O 1 This section applies if— a a payment (“the guarantee payment”) is made by the guarantor under an abandonment guarantee, b as a result of the making of the guarantee payment, the relevant participator becomes liable under the terms of the abandonment guarantee to pay any sum to the guarantor, and c expenditure is incurred, or consideration in money's worth is given, by the relevant participator in or towards meeting that liability. 2 In this section “reimbursement expenditure” means expenditure incurred as mentioned in subsection (1)(c) or consideration (or the value of consideration) given as so mentioned;
- accountancy rental earnings
has the meaning given by section 614AB(1), • “accountancy rental excess” is to be read— (a) for the purposes of Chapter 2, in accordance with section 614BH(1) to (4), and (b) for the purposes of Chapter 3, in accordance with section 614BH(1) to (4) as it has effect as a result of section 614CD, • “asset” means any form of property or rights, • “asset representing the leased asset” is to be read in accordance with section 614DD, • “cumulative accountancy rental excess” is to be read— (a) for the purposes of Chapter 2, in accordance with section 614BH(5), and (b) for the purposes of Chapter 3, in accordance with section 614BH(5) as it has effect as a result of sec
- accounting body
means— (a) the International Accounting Standards Board (or successor body), or (b) the Accounting Standards Board (or successor body).
- accounting standard
includes any statement of practice, guidance or other similar document, and • “accounting body” means— (a) the International Accounting Standards Board (or successor body), or (b) the Accounting Standards Board (or successor body).
- accounts-free period
has the same meaning as in section 485.
- additional payments
has the same meaning as in section 564G (see subsection (1)(d)(iii) of that section). 6 For the treatment of the part of the additional payments to which subsection (4) applies, see section 564R (treatment of discount).”
- advance pricing agreement
means a written agreement that—
- affected transaction
means a transaction within— a section 681AA(1) or (2) or 681AB(1) or (2), or b section 835(1) or (2) or 836(1) or (2) of CTA 2010. 681AN In the case of land outside the United Kingdom, expressions in this Chapter relating to interests in land and their disposition must be taken to relate to corresponding interests and dispositions.”
- AIF
has the meaning given by regulation 3 of the Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773);
- alternative finance arrangements
has the same meaning as in Parts 5 and 6 of CTA 2009 (see section 501(2) of that Act);
- alternative finance provisions
means— (a) section 367A of ICTA 1988, (b) Chapter 4 of Part 4 of TCGA 1992, and (c) Part 10A and section 1005(2A) of ITA 2007, • “alternative finance return” has the same meaning as in Chapter 4 of Part 4 of TCGA 1992 (see section 151S of that Act) or Chapter 10A of ITA 2007 (see section 564L of that Act), • “deposit arrangements”, “diminishing shared ownership arrangements”, “investment bond arrangements”, “profit share agency arrangements” and “purchase and resale arrangements” have the same meaning as in Chapter 4 of Part 4 of TCGA 1992 (see section 151H(3) of that Act) or Chapter 10A of ITA 2007 (see section 564A(3) of that Act), • “the relevant date” means— (a) in the case of deposit arrangements, 6 April 2005, (b) in the case of diminishing shared ownership arrangements or profit share agency arrangements, for income tax purposes 6 April 2006, and (c) in the case of investment bond arrangements, for corporation tax purposes 1 April 2007 and for income tax and capital gains tax purposes 6 April 2007, and • “the relevant provisions” means— (a) for income tax purposes, sections 564G, 564L(3) to (5), and 564S to 564U of ITA 2007 and section 1005(2
- alternative finance return
has the same meaning as in Part 6 of CTA 2009 (see sections 511 to 513 of that Act);
- amount X
means the amount allowable to C as a credit in respect of the payment of the FT amount.
- appeal
means any appeal under the Taxes Acts;
- applicable time limit
means the time limit in paragraph 8(3) or, in a case where paragraph 57(2) or (4) applies and imposes a later time limit for submission of the interest restriction return, that later time limit.
- arrangement
includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
- arrangements
includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable.
- asset
means any form of property or rights, • “asset representing the leased asset” is to be read in accordance with section 614DD, • “cumulative accountancy rental excess” is to be read— (a) for the purposes of Chapter 2, in accordance with section 614BH(5), and (b) for the purposes of Chapter 3, in accordance with section 614BH(5) as it has effect as a result of section 614CD, • “cumulative normal rental excess” is to be read— (a) for the purposes of Chapter 2, in accordance with section 614BJ(5), and (b) for the purposes of Chapter 3, in accordance with section 614BJ(5) as it has effect as a result of section 614CD, • “the current lessor”, in relation to a lease of an asset, means the p
- associated payment
means a payment or quasi-payment—
- Associated worldwide group
means the worldwide group of which a specified non-consolidated associate is the ultimate parent.
- available surcharge allowance
means available surcharge allowance under section 269DE or (as the case may be) 269DJ of CTA 2010;
- avoidance scheme
means any scheme or arrangement in respect of which each of conditions A to C is met.
- bad debt deduction
has the meaning given in section 614BL(6). 614BN 1 This section applies if in relation to the lease for any period of account of the current lessor— a there is a cumulative normal rental excess, and b a bad debt deduction falls to be made in respect of rent from the lease. 2 If for that period— a the accountancy rental earnings in the case of the lease do not exceed the normal rent, and b the amount of the bad debt deduction exceeds the amount of that rent, the cumulative normal rental excess for that period is reduced by the amount of the excess of that deduction over that rent (but not so as to reduce the amount of that rental excess below nil). 3 Subsections (4) and (
- balance sheet
means a balance sheet that is drawn up in accordance with generally accepted accounting practice, • “financial asset” has the same meaning as it has for accounting purposes, • “loan relationships or other financing arrangements” means— (a) loan relationships, (b) derivative contracts in relation to which the condition in section 387(4) is met (underlying subject matter to be interest rates etc), (c) finance leases, or (d) debt factoring or similar transactions, and • “the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964.
- bank
means a company carrying on, in the United Kingdom or elsewhere, any trade which includes the receipt of interest or dividends, and
- banking business
means the business of— (a) banking, deposit-taking, money-lending or debt-factoring, or (b) any activity similar to an activity falling within paragraph (a), • “CFC” is to be read in accordance with section 371AA(3), subject to sections 371RC and 371RE(2) and regulations under section 371RF(4), • “the CFC charge” is to be read in accordance with section 371AA(1), • “chargeable company”, in relation to a CFC's accounting period, means a company which is a chargeable company for the purposes of step 4 in section 371BC(1), • “chargeable profits”, in relation to a CFC, is to be read in accordance with section 371BA(3), • “company” is to be read subject to section 371VE, • “company tax return” means a return required to be made under Schedule 18 to FA 1998, • “contract of insurance” has the meaning given by article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, • “control” is to be read in accordance with sections 371RB and 371RE, subject to section 371RF, • “the corporation tax assumptions” is to be read in accordance with section 371SC, • “creditable tax”, in relation to a CFC, is to be read in accordance with section 371PA, •
- banking company
has the same meaning as in Part 7A of CTA 2010 (see sections 269B to 269BD), and • “financial instruments” includes— (a) loan relationships, (b) derivative contracts, and (c) shares or other securities.
- Bare trustee
means a person acting as trustee for—
- Borrowing
includes the issuing of a security.
- branch or agency
means any factorship, agency, receivership, branch or management, and • “non-UK resident” means a person who is not resident in the United Kingdom.”
- business combination
has the meaning given by international accounting standards.
- capital market arrangement
has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraph 1 of Schedule 2A to that Act).
- capital market investment
has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraphs 2 and 3 of Schedule 2A to that Act), and • “independent person” means a person— (a) who is not the disadvantaged person, and (b) who does not have a participatory relationship with either of the affected persons.
- carry-back claim
means a claim— (a) under section 389(1) of CTA 2009 (insurance companies: carry-back, to earlier accounting periods, of non-trading deficit on loan relationships), or (b) under section 459(1)(b) or 463B(1)(b) of CTA 2009 (carry-back: other companies), • “carry-forward provision” means— (a) section 391 of CTA 2009 (insurance companies), or (b) section 457(1), 463G(5) or 463H(4) of CTA 2009 (other companies), • “current-year provision or claim” means— (a) section 388(1) of CTA 2009 (insurance companies: non-trading deficit on loan relationships set against current year's profits), or (b) a claim under section 459(1)(a) or 463B(1)(a) of CTA 2009 (other companies: setting of deficit against current year's profits), • “non-trading credit” means a non-trading credit for the purposes of Part 5 of CTA 2009 (loan relationships), • “non-trading debit” means a non-trading debit for the purposes of that Part, and • “TNTD” is the total amount of the company's non-trading debits for the period.
- carry-forward provision
means— (a) section 391 of CTA 2009 (insurance companies), or (b) section 457(1), 463G(5) or 463H(4) of CTA 2009 (other companies), • “current-year provision or claim” means— (a) section 388(1) of CTA 2009 (insurance companies: non-trading deficit on loan relationships set against current year's profits), or (b) a claim under section 459(1)(a) or 463B(1)(a) of CTA 2009 (other companies: setting of deficit against current year's profits), • “non-trading credit” means a non-trading credit for the purposes of Part 5 of CTA 2009 (loan relationships), • “non-trading debit” means a non-trading debit for the purposes of that Part, and • “TNTD” is the total amount of the company's non-trading debits for the period.
- chargeable gain
has the same meaning as in TCGA 1992 (see, in particular, section 15(2) of that Act).
- chargeable period
means tax year (see section 288(1ZA) of TCGA 1992).
- charity
has the same meaning as in Chapter 2 of Part 6 of CTA 2010 (see section 202 of that Act as read with Schedule 6 to FA 2010), and • “the creditor” means the person who is party to the loan relationship in question as creditor.
- claim
includes an election, an application and a notice, and references to making a claim are to be read accordingly.
- claimant
means a person who for a chargeable period has claimed, or is in a position to claim, for any credit that under the arrangements is to be allowed for foreign tax;
- claims directions
means general directions for the purposes of income tax relating to— a the circumstances in which, and b the conditions subject to which, claims by individuals under the Tax Acts may be made by the use of an electronic communications service or otherwise without producing a claim in writing. 3 Directions under subsection (1)— a may not relate to the making of a claim by an individual in the individual's capacity as a trustee, partner or personal representative, but b subject to that, may relate to claims made by an individual through another person acting on the individual's behalf. 4 Directions under subsection (1) may not relate to— a the making of a claim to which Sche
- closure notice
means a notice under— (a) section 28A or 28B of TMA 1970, or (b) paragraph 32 of Schedule 18 to FA 1998, • “company tax return” means the return required to be delivered pursuant to a notice under paragraph 3 of Schedule 18 to FA 1998, as read with paragraph 4 of that Schedule, and • “tax return” means— (a) a return under section 8, 8A or 12AA of TMA 1970, or (b) a company tax return.
- co-operative society
means a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969 or a similar society governed by the law of a member State,... • “relevant state” means the United Kingdom or a member State, • “SE” and “SCE” have the same meaning as in CTA 2009 (see section 1319 of that Act), • “the transferee” means— (a) in relation to a merger within subsection (2)(a), the SE, (b) in relation to a merger within subsection (2)(b), the SCE, and (c) in relation to a merger within subsection (2)(c) or (d), the company to which assets and liabilities are transferred, and • “transferor” means— (a) in relation to a merger within subsection (2)(a), a company merging to form the SE, (b) in relation to a merger within subsection (2)(b), a co-operative society merging to form the SCE, and (c) in relation to a merger within subsection (2)(c) or (d), a company transferring all of its assets and liabilities.
- collective investment scheme
has the meaning given by section 235 of the Financial Services and Markets Act 2000;
- company
means any entity listed as a company in Part A of Annex I to the Mergers Directive, • “derivative contract” has the same meaning as in Part 7 of CTA 2009, • “intangible fixed assets” and “chargeable intangible assets”, in relation to any person, have the same meaning as in Part 8 of CTA 2009, • “loan relationship” has the same meaning as in Part 5 of CTA 2009, • “the Mergers Directive” means Council Directive 2009/133/EC, • “proceeds of realisation”, in relation to intangible fixed assets, has the meaning given in section 739 of CTA 2009, and • “recognised for tax purposes” has the same meaning as in Part 8 of CTA 2009.
- company tax return
means the return required to be delivered pursuant to a notice under paragraph 3 of Schedule 18 to FA 1998, as read with paragraph 4 of that Schedule.
- conditional sale agreement
means an agreement for the sale of goods under which— a the purchase price or part of it is payable by instalments, and b the property in the goods is to remain in the seller (even though they are to be in the possession of the buyer) until conditions specified in the agreement are met (whether as to the payment of instalments or otherwise).”
- connected person
means a person with whom D is connected.
- connected-person claim
means a claim that any person connected to the person has made, or is in a position to make, for any chargeable period that overlaps the counteraction period by at least one day.
- contract of insurance
has the meaning given by article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, • “control” is to be read in accordance with sections 371RB and 371RE, subject to section 371RF, • “the corporation tax assumptions” is to be read in accordance with section 371SC, • “creditable tax”, in relation to a CFC, is to be read in accordance with section 371PA, • “the HMRC Commissioners” means the Commissioners for Her Majesty's Revenue and Customs, • “insurance business” means the business of effecting or carrying out of contracts of insurance, including the investment of premiums received, • “intellectual property” means— (a) any patent, trade mark, registered design, copyright or design right, or (b) any licence or other right in relation to anything falling within paragraph (a), • “interest”, as in an interest in a company, is to be read in accordance with section 371VH, • “the local tax amount”, in relation to a CFC, means the amount of tax determined at step 2 in section 371NB(1), • “non-trading finance profits” is to be read in accordance with section 371VG, • “non-trading income” means income which is not trading income, •
- control group
has the meaning given by section 259NB;
- Convention determination
means—
- corporation tax accounting period
means an accounting period for corporation tax purposes, • “the relevant time” means the time immediately before— (a) the time when the relevant arrangement is made, or (b) if earlier, the time when the UK creditor relationship ends, • “relevant UK credits”, in relation to a UK connected company, means credits which the company has under Part 5 or 7 of CTA 2009, • “relevant UK debits”, in relation to a UK connected company, means debits which the company has under Part 5 or 7 of CTA 2009, and • “UK connected company” means a UK resident company which— (a) is connected with the CFC, or (b) was connected with a company with which the CFC is connected.
- counteraction period
means— (a) if an accounting period of the payee coincides with the payment period, that accounting period, or (b) otherwise, the first accounting period of the payee that is wholly or partly within the payment period;
- credit for underlying tax
means a credit or relief given to reflect tax charged on profits that are wholly or partly used to fund (directly or indirectly) the payment or quasi-payment mentioned in subsection (2)(b).
- creditable tax
includes amounts of double taxation relief) for “Part XVIII” substitute “ Part 2 of TIOPA 2010 (double taxation relief) ”.
- creditor
means—
- creditor quasi-repo
has the same meaning as in Chapter 10 of Part 6 of CTA 2009 (see section 544 of that Act);
- creditor relationships relating to insurance activities
means creditor relationships which—
- creditor repo
has the same meaning as in Chapter 10 of Part 6 of CTA 2009 (see section 543 of that Act);
- currency risk
means a risk which can be attributed to fluctuations in exchange rates between currencies over a period of time;
- current-year provision or claim
means— (a) section 388(1) of CTA 2009 (insurance companies: non-trading deficit on loan relationships set against current year's profits), or (b) a claim under section 459(1)(a) or 463B(1)(a) of CTA 2009 (other companies: setting of deficit against current year's profits), • “non-trading credit” means a non-trading credit for the purposes of Part 5 of CTA 2009 (loan relationships), • “non-trading debit” means a non-trading debit for the purposes of that Part, and • “TNTD” is the total amount of the company's non-trading debits for the period.
- debt security
has the same meaning as in the Handbook made by the Financial Conduct Authority or Prudential Regulation Authority under the Financial Services and Markets Act 2000 (as the Handbook in question has effect from time to time), • “period of account” has the same meaning as in Part 10, • “relevant accounting period” has the same meaning as in Part 10, • “relevant income”, in relation to a company, means income— (a) arising from the activities of the company, and (b) accounted for as such under generally accepted accounting practice, before any deduction (whether for expenses or otherwise), • “UK group company” has the same meaning as in Part 10, and • “worldwide group” has the same meaning as in Part 10.
- debtor quasi-repo
has the same meaning as in Chapter 10 of Part 6 of CTA 2009 (see section 549 of that Act);
- debtor relationship
has the meaning given by section 302(6) of CTA 2009 (reading the references in that subsection to a company as references to a person).
- debtor repo
has the same meaning as in Chapter 10 of Part 6 of CTA 2009 (see section 548 of that Act);
- decommissioning
includes demolishing and putting out of use.
- deductible amount
means— (a) an expense of a trade, other than an amount treated as such an expense by section 450(a) of CAA 2001 (research and development allowances treated as expenses in calculating profits of a trade), (b) an expense of a UK property business or overseas property business, (c) an expense of management of a company's investment business within the meaning of section 1219 of CTA 2009, (d) a non-trading debit within the meaning of Parts 5 and 6 of CTA 2009 (loan relationships and relationships treated as such) (see section 301(2) of that Act), or (e) a non-trading debit within the meaning of Part 8 of CTA 2009 (intangible fixed assets) (see section 746 of that Act);
- deductions
includes a just and reasonable apportionment of deductions that relate—
- deposit arrangements
means arrangements to which section 564E applies, d “profit share agency arrangements” means arrangements to which section 564F applies, and e “investment bond arrangements” means arrangements to which section 564G applies. 4 For the meaning of “alternative finance return”, see sections 564I to 564L. 5 For the meaning of “financial institution”, see section 564B. 6 Also, see section 366 of TIOPA 2010 (power to extend this Part and other provisions to other arrangements by order).”
- depreciation and amortisation adjustment
means the sum of the following amounts (any of which may be negative)—
- derivative contract
has the same meaning as in Part 7 of CTA 2009, • “intangible fixed assets” and “chargeable intangible assets”, in relation to any person, have the same meaning as in Part 8 of CTA 2009, • “loan relationship” has the same meaning as in Part 5 of CTA 2009, • “the Mergers Directive” means Council Directive 2009/133/EC, • “proceeds of realisation”, in relation to intangible fixed assets, has the meaning given in section 739 of CTA 2009, and • “recognised for tax purposes” has the same meaning as in Part 8 of CTA 2009.
- designated area
means an area designated by Order in Council under section 1(7) of the Continental Shelf Act 1964, • “oil” means any substance won or capable of being won under the authority of a licence granted under Part 1 of the Petroleum Act 1998 or the Petroleum (Production) Act (Northern Ireland) 1964 (c. 28 (N.I.)), other than methane gas won in the course of operations for making and keeping mines safe, • “oil field” has the same meaning as in Part 1 of OTA 1975 (see section 12(1) of that Act), • “OTA 1975” means the Oil Taxation Act 1975, and • “participator” has the same meaning as in Part 1 of OTA 1975 (see section 12(1) of that Act). 225F 1 This section applies if a person disposes of oil in circumstances such that the market value of the oil— a falls to be taken into account under section 2 of OTA 1975, otherwise than by virtue of paragraph 6 of Schedule 3 to that Act, in calculating for petroleum revenue tax purposes the assessable profit or allowable loss accruing to that person in a chargeable period from an oil field, or b would so fall but for section 10 of that Act. 2 For income tax purposes, the disposal of the oil, and its acquisition by the person to whom it
- designated officer
means an officer of Revenue and Customs who has been designated by the Commissioners for His Majesty's Revenue and Customs for the purposes of this Part;
- designer rate tax provisions
means provisions—
- development relief
means a relief— a given under the law of territory F with a view to promoting industrial, commercial, scientific, educational or other development in a territory outside the United Kingdom, and b about which provision is made in arrangements that have effect under section 2(1) of TIOPA 2010 (double taxation relief by agreement with territories outside the United Kingdom).”
- different persons
includes persons of a different class or description, and • “rights” includes powers.
- diminishing shared ownership arrangements
means arrangements to which section 151K applies, c “deposit arrangements” means arrangements to which section 151L applies, d “profit share agency arrangements” means arrangements to which section 151M applies, and e “investment bond arrangements” means arrangements to which section 151N applies. 4 For the meaning of “alternative finance return”, see sections 151P to 151S. 5 For the meaning of “financial institution”, see section 151I. 6 Also, see— a section 366 of TIOPA 2010 (power to extend this Chapter and other provisions to other arrangements by order), and b Schedule 61 to FA 2009 (alternative finance investment bonds) which makes further pr
- discovery assessment
means—
- discovery determination
means a discovery determination under paragraph 41 of that Schedule.
- disposal
has the same meaning as in TCGA 1992 (see, in particular, section 21(2) and the following provisions of TCGA 1992).
- dormant
has the meaning given by section 1169 of the Companies Act 2006.
- double taxation arrangements
means arrangements that have effect under section 2(1) (double taxation relief by agreement with territories outside the United Kingdom).
- downward adjustment
means a relevant expense amount that meets the condition in subsection (4), so far as it relates to—
- dual inclusion income
means an amount that... is both— (a) ordinary income of the payer for the payment period, and (b) ordinary income of an investor in the payer for a permitted taxable period for the purposes of a tax charged under the law of an investor jurisdiction.
- dual territory double deduction
means an amount that can be deducted by a company both—
- early-migration act
means an act which in fact amounted to or resulted in, or formed part of a series of acts which together amounted to or resulted in, or would amount to or result in, the migrating company ceasing to be resident in the United Kingdom at a time before each of conditions A to D in section 109B is met. 109E 1 This section applies if— a a company (“the migrating company”) ceases to be resident in the United Kingdom at any time, and b any tax which is payable by the company in respect of periods beginning before that time is not paid within 6 months from the time when it becomes payable. 2 The Commissioners for Her Majesty's Revenue and Customs may, at any time before the end
- election
means election under section 200 or 202.
- electronic communications service
has the same meaning as in the Communications Act 2003 (see section 32 of that Act). 9 In subsections (1) to (6), references to the making of a claim include references to any of the following— a the making of an election, b the giving of a notification or notice, c the amendment of any return, claim, election, notification or notice, and d the withdrawal of any claim, election, notification or notice, and in those subsections “claim” is to be read accordingly. 10 For the purposes of subsection (9)(c)— a “return” includes any statement or declaration under the Income Tax Acts, and b the definition of “return” given by section 118(1) of this Act does not ap
- employee share acquisition arrangements
means arrangements the corporation tax treatment of which is determined under Part 11 or 12 of CTA 2009.
- employer pension contributions
means contributions paid by an employer under a registered pension scheme in respect of an individual;
- enactment
includes—
- entity
includes anything which may be treated as an entity for accounting purposes (regardless of whether it has a legal personality as a body corporate);
- excepted loan relationship arrangements
means—
- Excess losses
means any losses—
- excluded credit
has the meaning given by section 386(3), • “excluded debit” has the meaning given by section 383(3), and • “period of account”, “relevant accounting period” and “worldwide group” have the same meanings as in Part 10.
- excluded debit
has the meaning given by section 383(3), and • “period of account”, “relevant accounting period” and “worldwide group” have the same meanings as in Part 10.
- excluded derivative contract amount
means an amount which would, on the relevant assumptions, be excluded from section 597(1) of CTA 2009 (amounts recognised in determining a company's profit or loss) as a result of a relevant provision of the Disregard Regulations.
- excluded territory
means a territory specified as such in regulations made by the HMRC Commissioners.
- Exempt distribution income
means any dividends or other distributions which are not brought into account in determining the CFC's assumed total profits on the basis that they would be exempt for the purposes of Part 9A of CTA 2009 (company distributions).
- exploration or exploitation activities
means activities carried on in connection with the exploration or exploitation of so much of the seabed and subsoil and their natural resources as is situated in the United Kingdom or a designated area, c “exploration or exploitation rights” means rights to— i assets to be produced by exploration or exploitation activities, ii interests in such assets, or iii the benefit of such assets, d any reference to the disposal of exploration or exploitation rights includes a reference to the disposal of unlisted shares deriving their value, or the greater part of their value, directly or indirectly from such rights, e “shares” includes— i stock, and ii securit
- exploration or exploitation rights
means rights to— i assets to be produced by exploration or exploitation activities, ii interests in such assets, or iii the benefit of such assets, d any reference to the disposal of exploration or exploitation rights includes a reference to the disposal of unlisted shares deriving their value, or the greater part of their value, directly or indirectly from such rights, e “shares” includes— i stock, and ii securities not creating or evidencing a charge on assets, f “unlisted shares” means shares that are not listed on a recognised stock exchange, and g “recognised stock exchange” has the meaning given by section 1005(1) and (2) of ITA 2007. 77K 1 This sec
- fair value
has the meaning it has for accounting purposes;
- fair value accounting
means a basis of accounting under which— (a) assets and liabilities are measured in the company's balance sheet at their fair value, and (b) changes in the fair value of assets and liabilities are recognised as items of profit or loss;
- finance lessor
means a person who for accounting purposes is treated, in accordance with generally accepted accounting practice, as the person with— (a) the grantor's interest in relation to a finance lease, or (b) the lender's interest in relation to a loan, • “for accounting purposes” means for the purposes of— (a) accounts of companies incorporated in any part of the United Kingdom, or (b) consolidated group accounts for groups all the members of which are companies so incorporated, • “lease”— (a) in relation to land, includes an underlease, sublease, tenancy or licence, and any agreement for a lease, underlease, sublease, tenancy or licence and, in the case of land outside the United K
- financial asset
has the same meaning as it has for accounting purposes, • “loan relationships or other financing arrangements” means— (a) loan relationships, (b) derivative contracts in relation to which the condition in section 387(4) is met (underlying subject matter to be interest rates etc), (c) finance leases, or (d) debt factoring or similar transactions, and • “the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964.
- financial institution
has the same meaning as in Part 10A (see section 564B).”
- financial instrument
means— (a) a loan relationship, or (b) a derivative contract;
- financial instruments
includes— (a) loan relationships, (b) derivative contracts, and (c) shares or other securities.
- financing arrangements
means arrangements made for providing or guaranteeing, or otherwise in connection with, any debt, capital or other form of finance;
- flawed
means flawed when considered in the light of the principles applicable in proceedings for judicial review.
- for accounting purposes
means for the purposes of— (a) accounts of companies incorporated in any part of the United Kingdom, or (b) consolidated group accounts for groups all the members of which are companies so incorporated, • “lease”— (a) in relation to land, includes an underlease, sublease, tenancy or licence, and any agreement for a lease, underlease, sublease, tenancy or licence and, in the case of land outside the United Kingdom, any interest corresponding to a lease as so defined, and (b) in relation to any form of property or right other than land, means any kind of agreement or arrangement under which payments are made for the use of, or otherwise in respect of, an asset, and “r
- foreign CFC charge
means a charge (by whatever name known) under the law of a territory outside the United Kingdom which is similar to the CFC charge (and reference to a “foreign CFC” is to be read accordingly).
- foreign gains tax
means any tax which— (a) is imposed by the law of a territory outside the United Kingdom, and (b) is of a similar character to capital gains tax, and • “foreign non-gains tax” means tax which— (a) is imposed by the law of a territory outside the United Kingdom, and (b) is not foreign gains tax.
- foreign jurisdiction
means a jurisdiction outside the United Kingdom.
- foreign non-gains tax
means tax which— (a) is imposed by the law of a territory outside the United Kingdom, and (b) is not foreign gains tax.
- foreign tax
means a tax falling within subsection (2) of section 259B (see also subsections (3) and (3ZA) of that section);
- foreign taxable period
means any period in respect of which the tax in question is chargeable under the law of the PE territory, and • “the PE territory” means the territory in which the PE is situated.
- foreign-field consideration
means consideration brought into charge to tax under section 12 of the Oil Taxation Act 1983 (charge to petroleum revenue tax on consideration in respect of United Kingdom use of a foreign field asset).
- full marginal rate
means the highest rate at which the tax that is chargeable on the taxable profits mentioned in subsection (3) could be charged on taxable profits, of the payee for the permitted taxable period, which include ordinary income that arises from, or in connection with, a financial instrument.
- goodwill
has the meaning it has for accounting purposes (and includes internally-generated goodwill);
- group
has the meaning which would be given by section 170 of the 1992 Act if in that section for references to 75 per cent subsidiaries there were substituted references to 51 per cent subsidiaries, and • “pre-migration year” means the period of 12 months ending with the time when the migrating company ceases to be resident in the United Kingdom. 109F 1 In sections 109B to 109E, any reference to the tax payable by a company includes a reference to— a any amount which the company is liable to pay under section 77C (territorial extension of charge to tax), b any amount of tax which the company is liable to pay under regulations made under section 684 of ITEPA 2003 (PAYE), c any amount which
- group accounts
means accounts prepared under—
- hire-purchase agreement
has the meaning given by section 998A of ITA 2007.”
- HMRC
means His Majesty’s Revenue and Customs.
- Holding period
means a part of the accounting period during which the percentage of the issued ordinary shares in the CFC represented by the relevant person's relevant interest remains the same.
- hybrid entity
has the meaning given by section 259BE;
- hybrid transfer arrangement
has the meaning given by section 259DB.
- ICTA
means the Income and Corporation Taxes Act 1988, • “ITA 2007” means the Income Tax Act 2007, • “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003, • “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005, • “TCGA 1992” means the Taxation of Chargeable Gains Act 1992, and • “TMA 1970” means the Taxes Management Act 1970.
- impairment loss
means a loss in respect of the impairment of a financial asset.
- Implicit support
means any incidental benefit, in relation to borrowing by a company, that it is reasonable to assume would arise to the company as a result of it having a participatory relationship with one or more other companies.
- included funding costs
means the total of the funding costs that are— (a) incurred by the company, or any company connected with the company, in respect of capital used to fund the relevant transaction, and (b) included in the amount to be taken into account under section 44(3) before the application of subsection (2) of this section, • “notional funding costs” means the funding costs that the relevant bank would incur (on the basis of its average funding costs) in respect of the capital that would be needed to wholly fund the relevant transaction if that transaction were funded in that way, • “the relevant bank” means the bank that is the company, or with which the company is connected, and • “the relevant transaction” means the transaction, arrangement or asset from which the income mentioned in section 44(1) arises.
- income
includes a chargeable gain;
- independent person
means a person— (a) who is not the disadvantaged person, and (b) who does not have a participatory relationship with either of the affected persons.
- independent third party
means a person who— a is not the lessor or the lessee, and b is not connected with either of them. 7 For the meaning of an asset representing the leased asset, see section 614DD. 614BF 1 This section applies if, in the case of any period of account of the current lessor (“L”)— a this Chapter applies in relation to the lease, and b the accountancy rental earnings in respect of the lease for that period of account exceed the normal rent for that period. 2 For income tax purposes, L is treated as if in that period of account L had been entitled to, and there had arisen to L, rent from the lease of an amount equal to those accountancy rental earnings (instead of the nor
- information
includes anything contained in a return, self-assessment, account, statement or report required to be provided to the Commissioners for Her Majesty's Revenue and Customs or to any officer of Revenue and Customs.”
- infrastructure
includes—
- initial holding
means the holding held by the person at the beginning of the basis period.”
- initial treatment
has the same meaning as in Part 1 of OTA 1975 (see section 12(1) of that Act). 225B In this Chapter “oil rights” means— a rights to oil to be extracted at any place in the United Kingdom or a designated area, or b rights to interests in or to the benefit of such oil. 225C In this Chapter “ring fence income” means income arising from oil extraction activities or oil rights. 225D In this Chapter “ring fence trade” means activities which— a are within the definition of “oil-related activities” in section 16(2) (oil extraction and related activities), and b constitute a separate trade (whether because of section 16(1) or otherwise). 225E In this Chapter— • “chargeable period” has the same meaning as in Part 1 of OTA 1975 (see section 1(3) of that Act), • “designated area” means an area designated by Order in Council under section 1(7) of the Continental Shelf Act 1964, • “oil” means any substance won or capable of being won under the authority of a licence granted under Part 1 of the Petroleum Act 1998 or the Petroleum (Production) Act (Northern Ireland) 1964 (c. 28 (N.I.)), other than methane gas won in the course of operations for making and keeping mines safe, •
- insurance business
means the business of effecting or carrying out of contracts of insurance, including the investment of premiums received, • “intellectual property” means— (a) any patent, trade mark, registered design, copyright or design right, or (b) any licence or other right in relation to anything falling within paragraph (a), • “interest”, as in an interest in a company, is to be read in accordance with section 371VH, • “the local tax amount”, in relation to a CFC, means the amount of tax determined at step 2 in section 371NB(1), • “non-trading finance profits” is to be read in accordance with section 371VG, • “non-trading income” means income which is not trading income, • “property business profits” is to be read in accordance with section 371VI, • “relevant finance lease” is to be read in accordance with section 371VIA, • “relevant interest” is to be read in accordance with Chapter 15, • “tax advantage” has the meaning given by section 1139 of CTA 2010, • “trading finance profits” is to be read in accordance with section 371VG, • “trading income”, in relation to a CFC, means income brought into account in determining the CFC's trading profits for the accounting period
- insurance entity
means— (a) an insurance company, (b) a friendly society within the meaning of Part 3 of FA 2012 (see section 172), or (c) a body corporate which carries on underwriting business as a member of Lloyd's, and • “subsidiary” has the meaning given by international accounting standards.
- intangible asset
has the meaning it has for accounting purposes (and includes an internally-generated intangible asset);
- intangible fixed asset
has the same meaning as in Part 8 of CTA 2009, • “non-trading credit” means— (a) a non-trading credit for the purposes of Part 5 of CTA 2009 (which is about loan relationships but also has application in relation to deemed loan relationships and derivative contracts), or (b) a non-trading credit for the purposes of Part 8 of CTA 2009 (intangible fixed assets), and • “non-trading debit” means— (a) a non-trading debit for the purposes of Part 5 of CTA 2009, or (b) a non-trading debit for the purposes of Part 8 of CTA 2009.
- intangible fixed assets
has the meaning it has in Part 8 of CTA 2009.
- intellectual property
means— (a) any patent, trade mark, registered design, copyright or design right, or (b) any licence or other right in relation to anything falling within paragraph (a), • “interest”, as in an interest in a company, is to be read in accordance with section 371VH, • “the local tax amount”, in relation to a CFC, means the amount of tax determined at step 2 in section 371NB(1), • “non-trading finance profits” is to be read in accordance with section 371VG, • “non-trading income” means income which is not trading income, • “property business profits” is to be read in accordance with section 371VI, • “relevant finance lease” is to be read in accordance with section 371VIA, • “relevant interest” is to be read in accordance with Chapter 15, • “tax advantage” has the meaning given by section 1139 of CTA 2010, • “trading finance profits” is to be read in accordance with section 371VG, • “trading income”, in relation to a CFC, means income brought into account in determining the CFC's trading profits for the accounting period in question, • “trading profits”, in relation to a CFC, means any profits included in the CFC's assumed total profits for the accounting period i
- interest
includes an interest by virtue of subsection (12).)
- interest distribution designation
means a designation made under regulation 5(2) of the Investment Trusts (Dividends) (Optional Treatment as Interest Distributions) Regulations 2009 (S.I. 2009/2034).
- interest restriction return
means a return submitted under any provision of Schedule 7A;
- investment bond arrangements
means arrangements to which section 564G applies. 4 For the meaning of “alternative finance return”, see sections 564I to 564L. 5 For the meaning of “financial institution”, see section 564B. 6 Also, see section 366 of TIOPA 2010 (power to extend this Part and other provisions to other arrangements by order).”
- Investment manager
has the same meaning as in Chapter 1 (see section 827). 4 “Investment transaction” means any transaction of a description specified for the purposes of this section in regulations made by the Commissioners for Her Majesty's Revenue and Customs. 5 Provision made in regulations under subsection (4) may, in particular, have effect in relation to the tax year current on the day on which the regulations are made.”
- investment property
has the meaning it has for accounting purposes;
- Investment transaction
means any transaction of a description specified for the purposes of this section in regulations made by the Commissioners for Her Majesty's Revenue and Customs. 5 Provision made in regulations under subsection (4) may, in particular, have effect in relation to the tax year current on the day on which the regulations are made.”
- investor jurisdiction
has the meaning given by section 259BE(4);
- Lease
includes— a an agreement for a lease, and b any tenancy. 3 “Lease” does not include a mortgage. 4 A reference to a lessee or lessor— a is to be read in accordance with subsections (2) and (3), and b includes a reference to the successors in title of a lessee or lessor. 5 “Rent” includes a payment by a tenant for work to maintain or repair leased premises which the lease does not require the tenant to carry out;
- Licence
has the meaning given by section 77B(7). 3 “Secondary-liability notice” has the meaning given by section 77C(6).”
- licence-related payment
means— a earnings which constitute employment income (see section 7(2)(a) of ITEPA 2003), b amounts which are treated as earnings and constitute employment income (see section 7(2)(b) of ITEPA 2003), or c other payments, paid or payable in respect of duties or services performed in an area in which activities authorised by the licence may be carried on under the licence. 4 If a notice under subsection (1) is served on the holder of a licence, the holder must take reasonable steps to obtain the information necessary to enable the holder to comply with the notice. 77J 1 Subsections (2) and (3) apply for the purposes of this Part. 2 An amount of tax is related to a lic
- licence-related transaction
means a transaction in connection with activities authorised by the licence as a result of which any person is or might be liable to tax by virtue of— a section 276 of the 1992 Act, b section 874 of ITTOIA 2005, or c section 1313 of CTA 2009. 3 In subsection (1) “licence-related payment” means— a earnings which constitute employment income (see section 7(2)(a) of ITEPA 2003), b amounts which are treated as earnings and constitute employment income (see section 7(2)(b) of ITEPA 2003), or c other payments, paid or payable in respect of duties or services performed in an area in which activities authorised by the licence may be carried on under the licence. 4 If a
- limiting provision
means a provision to the effect that the disposal value of the asset in question is not to exceed an amount (“the limit”) described by reference to capital expenditure incurred in respect of the asset. 4 Subsection (5) applies if— a as a result of subsection (2), a disposal value (“the relevant disposal value”) falls or has fallen to be brought into account by a person in respect of the leased asset for the purposes of the relevant Part, and b a limiting provision has effect in the case of that Part. 5 The limiting provision has effect (so far as it would not otherwise do so), in relation to the relevant disposal value and any simultaneous or later disposal value, as if—
- loan
has the same meaning as it has in Chapter 9 of Part 9A.
- loan creditor
has the meaning given by section 453 of CTA 2010, but ignoring subsection (4) of that section, and • “rights” does not include any rights excluded from subsection (7) by subsection (10).
- loan relationship
has the meaning given by section 302(1) of CTA 2009 (and does not include anything which, although not falling within section 302(1), is treated for any purpose as if it were a loan relationship), and
- loan relationship credit
means, in relation to a person, a credit which the person has under Part 5 of CTA 2009 or would have were the person a UK resident company within the charge to corporation tax, and
- loan relationships or other financing arrangements
means— (a) loan relationships, (b) derivative contracts in relation to which the condition in section 387(4) is met (underlying subject matter to be interest rates etc), (c) finance leases, or (d) debt factoring or similar transactions, and • “the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964.
- long funding finance lease
means a finance lease which is a long funding lease (within the meaning of section 70G of CAA 2001).
- losses
includes amounts which are not losses but in respect of which relief may be given in accordance with the Tax Acts including (for example)—
- manufactured interest
has the same meaning as in Chapter 9 of Part 6 of CTA 2009 (see section 539(5) of that Act);
- material determination
means (as the case may be)—
- medium-sized enterprise
means an enterprise which—
- modifications
includes exceptions and omissions. 5 For the purposes of subsection (2)(a) and section 925E(1), a company has a repo if— a for the purposes of Chapter 10 of Part 6 of CTA 2009— i it has a creditor repo (see section 543 of that Act), ii it has a creditor quasi-repo (see section 544 of that Act), iii it has a debtor repo (see section 548 of that Act), or iv it has a debtor quasi-repo (see section 549 of that Act), or b as a result of section 547 of that Act, the company has a creditor repo for the purposes of section 546 of that Act. 925E 1 This section applies to a case if— a a company has a repo, b there has been a sale of the securities under the arrangement or arrangements
- modify
includes amend, repeal or revoke.
- mortgage
means— a a standard security, or b a heritable security, as defined in the Conveyancing (Scotland) Act 1924, but including a security constituted by ex facie absolute disposition or assignation.”
- mutual fund
means arrangements with respect to property of any description (including money) that meet conditions A, B and C.
- non-banking company
means a company that, at any time when the arrangements mentioned in subsection (3) or (as the case may be) (6) have effect, is neither— (a) a banking company, nor (b) a CFC in relation to which a banking company is a chargeable company.
- non-qualifying territory
means any territory which is not a qualifying territory, and • “qualifying territory” means— (a) the United Kingdom, or (b) any territory in relation to which condition A or condition B is met.
- non-trading credit
means a non-trading credit for the purposes of Part 5 of CTA 2009 (loan relationships), • “non-trading debit” means a non-trading debit for the purposes of that Part, and • “TNTD” is the total amount of the company's non-trading debits for the period.
- non-trading debit
means a non-trading debit for the purposes of that Part, and • “TNTD” is the total amount of the company's non-trading debits for the period.
- non-trading income
means income which is not trading income, • “property business profits” is to be read in accordance with section 371VI, • “relevant finance lease” is to be read in accordance with section 371VIA, • “relevant interest” is to be read in accordance with Chapter 15, • “tax advantage” has the meaning given by section 1139 of CTA 2010, • “trading finance profits” is to be read in accordance with section 371VG, • “trading income”, in relation to a CFC, means income brought into account in determining the CFC's trading profits for the accounting period in question, • “trading profits”, in relation to a CFC, means any profits included in the CFC's assumed total profits for the accounting period in question on the basis that they would be chargeable to corporation tax under Part 3 of CTA 2009 (trading income), • “UK connected capital contribution”, in relation to a CFC, means any capital contribution to the CFC made (directly or indirectly) by a UK resident company connected with the CFC (whether in relation to an issue of shares in the CFC or otherwise), and • “UK permanent establishment”, in relation to a non-UK resident company, means a permanent establishment which t
- non-trading profits
has the meaning given by section 457(5) of CTA 2009.
- non-UK resident
means a person who is not resident in the United Kingdom. 2 In this Chapter “independent agent”, in relation to a non-UK resident (“X”), means a person who is the UK representative of X in respect of any agency in which the person is acting on behalf of X in an independent capacity. 3 For this purpose a person does not act in an independent capacity on behalf of X unless the relationship between them, having regard to its legal, financial and commercial characteristics, is a relationship between persons carrying on independent businesses dealing with each other at arm's length.”
- non-UK tax
means tax under the law of a territory outside the United Kingdom.
- normal commercial loan
means a loan which is a normal commercial loan for the purposes of section 158(1)(b) or 159(4)(b) of CTA 2010.
- notice
means notice in writing.
- notice of enquiry
means a notice under—
- notional funding costs
means the funding costs that the relevant bank would incur (on the basis of its average funding costs) in respect of the capital that would be needed to wholly fund the relevant transaction if that transaction were funded in that way, • “the relevant bank” means the bank that is the company, or with which the company is connected, and • “the relevant transaction” means the transaction, arrangement or asset from which the income mentioned in section 44(1) arises.
- Notional interest
means an amount representing a notional interest expense or other financing charge calculated by reference to any of the CFC's equity or debt.
- officer
means an officer of Revenue and Customs.
- offshore fund
means—
- oil
includes any mineral oil or relative hydrocarbon oil, as well as natural gas.
- oil extraction activities
means activities within any of subsections (2) to (5) (but see also section 225M(6)). 2 Activities of a person in searching for oil in the United Kingdom or a designated area or causing such searching to be carried out for that person. 3 Activities of a person in extracting, or causing to be extracted for that person, oil at any place in the United Kingdom or a designated area under rights which— a authorise the extraction, and b are held by that person. 4 Activities of a person in transporting, or causing to be transported for that person, oil extracted at any such place not on dry land under rights which— a authorise the extraction, and b are held by that person, if the transportation meets condition A or B (see subsections (6) and (7)). 5 Activities of a person in effecting, or causing to be effected for that person, the initial treatment or initial storage of oil won from any oil field under rights which— a authorise its extraction, and b are held by that person. 6 Condition A is that the transportation is to the place where the oil is first landed in the United Kingdom. 7 Condition B is that the transportation— a is to the place in the United Kingdo
- oil field
has the same meaning as in Part 1 of OTA 1975 (see section 12(1) of that Act), • “OTA 1975” means the Oil Taxation Act 1975, and • “participator” has the same meaning as in Part 1 of OTA 1975 (see section 12(1) of that Act). 225F 1 This section applies if a person disposes of oil in circumstances such that the market value of the oil— a falls to be taken into account under section 2 of OTA 1975, otherwise than by virtue of paragraph 6 of Schedule 3 to that Act, in calculating for petroleum revenue tax purposes the assessable profit or allowable loss accruing to that person in a chargeable period from an oil field, or b would so fall but for section 10 of that Act. 2 For income tax purposes, the disposal of the oil, and its acquisition by the person to whom it was disposed of, are to be treated as having been for a consideration equal to the market value of the oil— a as so taken into account under section 2 of that Act, or b as would have been so taken into account under that section but for section 10 of that Act. 225G 1 This section applies if conditions A, B and C are met. 2 Condition A is that a person disposes of oil acquired by the person— a in the course of oil e
- oil rights
means— a rights to oil to be extracted at any place in the United Kingdom or a designated area, or b rights to interests in or to the benefit of such oil. 225C In this Chapter “ring fence income” means income arising from oil extraction activities or oil rights. 225D In this Chapter “ring fence trade” means activities which— a are within the definition of “oil-related activities” in section 16(2) (oil extraction and related activities), and b constitute a separate trade (whether because of section 16(1) or otherwise). 225E In this Chapter— • “chargeable period” has the same meaning as in Part 1 of OTA 1975 (see section 1(3) of that Act), • “designated area” means an area designated by Order in Council under section 1(7) of the Continental Shelf Act 1964, • “oil” means any substance won or capable of being won under the authority of a licence granted under Part 1 of the Petroleum Act 1998 or the Petroleum (Production) Act (Northern Ireland) 1964 (c. 28 (N.I.)), other than methane gas won in the course of operations for making and keeping mines safe, • “oil field” has the same meaning as in Part 1 of OTA 1975 (see section 12(1) of that Act), • “OTA 1975” means the Oil Ta
- Ordinary income
means income that is brought into account, before any deductions, for the purposes of calculating the income or profits on which a relevant tax is charged (“taxable profits”).
- original chargeable company
means a company which, for the purposes of the charging condition in section 371JC, would be a chargeable company at the beginning of the exempt period, and • “the relevant period” means the period which— (a) begins immediately after the beginning of the exempt period, and (b) ends at the end of the CFC's first accounting period to begin after the end of the exempt period.
- overseas permanent establishment
means, in relation to a company, a permanent establishment through which the company carries on a trade in a territory outside the United Kingdom.
- overseas tax
means tax—
- overseas-resident
means resident in a territory outside the United Kingdom.
- paid relevant tax
means relevant tax within the meaning of section 217D(9)—