- a post-1992 accounting period
means an accounting period beginning on or after 1 January 1992, • “group annuity contract” means a contract under which the insurance company undertakes to become liable to pay annuities to or in respect of persons who may subsequently be specified or otherwise ascertained under or in accordance with the contract (whether or not annuities under the contract are also payable to or in respect of persons who are specified or ascertained at the time the contract is made), and • “re-insurance treaty” means a contract under which one insurance company is obliged to cede, and another (referred to in this section as a “re-insurer”) to accept, the whole or part of a risk of a class or description to which the contract relates.
- a pre-1992 accounting period
means an accounting period beginning before 1 January 1992, • “a post-1992 accounting period” means an accounting period beginning on or after 1 January 1992, • “group annuity contract” means a contract under which the insurance company undertakes to become liable to pay annuities to or in respect of persons who may subsequently be specified or otherwise ascertained under or in accordance with the contract (whether or not annuities under the contract are also payable to or in respect of persons who are specified or ascertained at the time the contract is made), and • “re-insurance treaty” means a contract under which one insurance company is obliged to cede, and another (referred to in this section as a “re-insurer”) to accept, the whole or part of a risk of a class or description to which the contract relates.
- accounting body
means the International Accounting Standards Board, the Accounting Standards Board, or a successor body to either of those Boards;
- accounting period 2
means the accounting period following accounting period 1, • “accounting period 3” means the accounting period following accounting period 2, and • “the relevant period” means the period consisting of accounting period 1, accounting period 2 and accounting period 3.”
- accounting period 3
means the accounting period following accounting period 2, and • “the relevant period” means the period consisting of accounting period 1, accounting period 2 and accounting period 3.”
- accounting standard
includes any statement of practice, guidance or other similar document.
- administrative function
means— a the Administrator's function imposed by sub-paragraph (1), or b any other power or duty of the Administrator conferred or imposed by or under a provision of this Part of this Schedule. 52C 1 The Administrator may require persons falling within sub-paragraph (2) to pay to the Administrator such charges as may from time to time be specified to cover any costs incurred by the Administrator in carrying out any administrative function. 2 The persons falling within this sub-paragraph are parties or potential or former parties to agreements falling within paragraph 47 or to umbrella or underlying agreements within the meaning of paragraph 48. 3 In sub-paragraph (1) “specified” means specified in, or determined in accordance with, a scheme made by the Administrator for the purposes of this paragraph. 4 A scheme may provide for the times at which, and the manner in which, charges are to be paid. 5 Paragraph 146(7) applies in relation to the Administrator's power to make a scheme under this paragraph as it applies in relation to a power to make regulations under this Schedule. 6 A scheme may revoke or vary any previous scheme. 7 A scheme may be made only wi
- affected parties
means the past owner and the purchaser from the past owner;
- agency fees
means fees and other incidental costs of the disposal that are charged to the transferor by any person by or through whom the disposal is effected, but excluding any such fees or costs that— a are charged to the transferor by another relevant person, or b are to be passed on to or otherwise applied for the benefit of a relevant person. 7 The exclusion mentioned in subsection (6) does not apply to the extent that the fees or costs— a relate to a service actually provided by the relevant person to the transferor in connection with effecting the disposal, and b do not exceed the amount that would be charged for that service if it were provided in the ordinary course of business and on arm's length terms. 809Z9 1 This section applies to a provision of this Chapter that is satisfied if something (for example, disposal proceeds) is taken offshore or used by a relevant person to make a qualifying investment. 2 Things are to be regarded as “taken offshore” if (and only if) they are taken outside the United Kingdom such that, on leaving the United Kingdom, they cease to be available— a to be used or enjoyed in the United Kingdom by or for the benefit of a relevant person, or b
- Alcohol licence
means—
- allowable agricultural expenses
has the meaning given by section 123.”
- amount
means an amount which arises on or after 29 November 2011 but on or before the completion day.
- an unconditional obligation
means an obligation which may not be varied or extinguished by the exercise of a right (whether under the contract or otherwise).
- anaerobic digestion
means the bacterial fermentation of organic material in the absence of free oxygen (excluding anaerobic digestion of sewage or material in a landfill);
- ancillary charge
means any interest, penalty, surcharge or other ancillary charge;
- appeal period
means the period during which—
- appeal tribunal
means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal;
- appointed
includes engaged;
- apportionable sum
means the sale price;
- Appropriate persons
means— a with respect to the survivorship component, all those to whom the property in that component passes on D's death (or, if they have subsequently died, their personal representatives), b with respect to the settled property component, the trustees of all the settled property in that component, c with respect to the general component, all the personal representatives of D or, if there are none, all those who are liable for the tax attributable to the property in that component, and d with respect to property within paragraph (b) of sub-paragraph (5), all those in whom the property within that paragraph is vested when the election is to be made. 8 1 If an election is made under this paragraph in relation to a component of the estate, this Schedule is to apply as if the donated amount for that component were less than 10% of the baseline amount for it (whether or not it actually is). 2 The election must be made by all those who are appropriate persons (as defined in paragraph 7(7)) with respect to the component. 9 1 An election under this Schedule must be made by notice in writing to HMRC within two years after D's death. 2 An election under this Schedule
- arrangement
includes— (a) any agreement, scheme, transaction or understanding (whether or not legally enforceable), and (b) a series of arrangements or a part of an arrangement, • “assumed taxable total profits”, in relation to a CFC, is to be read in accordance with section 371SB(1) to (6), • “assumed total profits”, in relation to a CFC, is to be read in accordance with section 371SB(9), subject to section 371DA(2), • “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 F
- arrangements
includes any agreement, scheme, transaction or understanding (whether or not legally enforceable).
- assisted area
means— (a) an area specified as a development area under section 1 of the Industrial Development Act 1982, or (b) Northern Ireland;
- associate
has the same meaning as in Part 5 (see section 253);
- attributable
means attributable on a just and reasonable basis;
- 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, •
- Bare trustee
means a person acting as trustee for— a a person absolutely entitled as against the trustee, b two or more persons who are so entitled, c a person who would be so entitled but for being a minor or otherwise lacking legal capacity, or d two or more persons who would be so entitled but for all or any of them being a minor or otherwise lacking legal capacity. 7 Subsection (8) applies in a case not covered by subsection (5) if— a an interest is held in a fiduciary or representative capacity (including by virtue of subsection (3) or (4)), and b there are one or more identifiable beneficiaries. 8 The interest is taken to be held by that beneficiary or, as the case may be, apportioned between those beneficiaries on a just and reasonable basis. 371OC 1 A UK resident company's interest in a CFC is a “relevant interest”, except so far as subsection (2) applies to it. 2 This subsection applies to the interest so far as it is an indirect interest which the UK resident company has by virtue of having an interest in another UK resident company. 371OD 1 This section applies if, by virtue of section 371OC, a UK resident company (“UKRC”) has a relevant interest in a CFC. 2 A related
- Basic life assurance and general annuity business
means life assurance business other than—
- bingo
includes any version of that game, whatever name it is called.
- bonus shares
means shares which are issued otherwise than for payment (whether in cash or otherwise);
- cash
has the meaning given in paragraph 2 (and “non-cash” is to be read accordingly);
- CFC
has the same meaning as in Part 9A of TIOPA 2010.”
- change of accounting policy
includes, in particular— a a change from using UK generally accepted accounting practice to using generally accepted accounting practice with respect to accounts prepared in accordance with international accounting standards, and b a change from using generally accepted accounting practice with respect to accounts prepared in accordance with international accounting standards to using UK generally accepted accounting practice.”
- chargeable gain
means a gain that is a chargeable gain for the purposes of TCGA 1992;
- Chargeable pre-change supply
means a supply to which sub-paragraph (1) applies.
- chargeable section 119 or 120 holding
means a holding which is a separate holding as a result of section 119(1)(a), (c) or (d) or section 120(1)(a), (c) or (d) of the Finance Act 2012 (and section 121(1) and (2) of that Act), • “internal linked fund”, in relation to an insurance company, means an account— (a) to which assets matched to the company's life assurance liabilities are appropriated by the company, and (b) which may be divided into units the value of which is determined by the company by reference to the value of those assets, and • “section 119 or 120 securities” means securities within the meaning of section 119 or 120 of the Finance Act 2012 (see section 121(6)).”
- chargeable transfer
has the meaning given in section 2 of IHTA 1984;
- child
includes a qualifying young person;
- child trust fund policy
means a policy of life insurance which is an investment under a child trust fund (within the meaning of the Child Trust Funds Act 2004).
- close company
has the meaning given in section 102;
- closure notice
means a notice under paragraph 32 of Schedule 18 to FA 1998 (completion of enquiry and statement of conclusions), • “discovery assessment” means a discovery assessment or discovery determination under paragraph 41 of that Schedule (including an assessment by virtue of paragraph 52 of that Schedule), and • “the Taxes Acts” has the same meaning as in TMA 1970. 371UB 1 The provision of step 5 in section 371BC(1) relating to the charging of a sum as if it were an amount of corporation tax is to be taken as applying all enactments applying generally to corporation tax. 2 This is subject to— a the provisions of the Taxes Acts, and b any necessary modifications. 3 The enactments referred to in subsection (1) include— a those relating to returns of information and the supply of accounts, statements and reports, b those relating to the assessing, collecting and receiving of corporation tax, c those conferring or regulating a right of appeal, and d those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom. 4 In particular, TMA 1970 is to have effect as if— a any reference to c
- co-operative society
means— (a) a society registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 as a co-operative society, or (b) a pre-2010 Act society (as defined at section 4A(1) of that Act) which meets the condition in section 1(2) of that Act;
- collective investment scheme
has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 235 of that Act);
- community benefit society
means— (a) a society registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 as a community benefit society, or (b) a pre-2010 Act society (as defined at section 4A(1) of that Act) which meets the condition in section 1(3) of that Act;
- company
has the meaning given in section 992 of ITA 2007;
- 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, • “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
- component
means a component of the estate, as defined in paragraph 3 of Schedule 1A;
- component activities
means— (a) if the relevant qualifying activity is within section 291(2), the carrying on of a qualifying trade which constitutes that activity, and (b) if the relevant qualifying activity is within section 291(3), the preparations to carry on a qualifying trade which constitute that activity;
- conduct notice
has the meaning given in paragraph 25B;
- Construction industry deductions
means construction industry deductions under Chapter 3 of Part 3 of FA 2004.
- consumer prices index
means the all items consumer prices index published by the Statistics Board.”
- contract of insurance
has the meaning given by article 3(1) of the FISMA (Regulated Activities) Order 2001, and • “contract of long-term insurance” means a contract which falls within Part 2 of Schedule 1 to that Order.
- contract of long-term insurance
means a contract which falls within Part 2 of Schedule 1 to that Order.
- Corporation tax
includes an amount assessable or chargeable as if it were corporation tax.
- Corporation tax accounting period
means an accounting period for corporation tax purposes. 371KA This Chapter sets out an exemption called “the excluded territories exemption” for the purposes of section 371BA(2)(b). 371KB 1 The excluded territories exemption applies for a CFC's accounting period if— a the CFC is resident (see section 371KC) in an excluded territory for the accounting period, b the total of the following amounts is no more than the threshold amount for the accounting period (see section 371KD)— i the CFC's category A income (if any) for the accounting period (see sections 371KE and 371KF), ii the CFC's category B income (if any) for the accounting period (see section 371KG), iii the CFC's category C income (if any) for the accounting period (see section 371KH), and iv the CFC's category D income (if any) for the accounting period (see section 371KI), c the IP condition is met (see section 371KJ), and d the CFC is not, at any time during the accounting period, involved in an arrangement the main purpose, or one of the main purposes, of which is to obtain a tax advantage for any person. 2 In this Chapter “excluded territory” means a territory specified as such in r
- corresponding bonus shares
means bonus shares which are in the same company, of the same class, and carry the same rights as the original shares. 6 If section 257AB(1) and (2) applies in the case of any issue of shares as if part of the issue had been issued in a previous tax year, this section has effect as if that part and the remainder were separate issues of shares (and that part had been issued on a day in the previous tax year). 7 If, at a time when SEIS relief is attributable to, or to any part of, any issue of shares, the relief falls to be withdrawn or reduced under Chapters 6 and 7— a if it falls to be withdrawn, the relief attributable to each of the shares in question is reduced to nil, and b if it falls to be reduced by any amount, the relief attributable to each of the shares in question is reduced by a proportionate part of that amount. 257EA 1 A claim for SEIS relief in respect of shares issued by a company in any tax year may not be made later than the fifth anniversary of the normal self-assessment filing date for the tax year. 2 If section 257AB(1) and (2) applies in the case of any issue of shares as if part of the issue had been issued in a previous tax year,
- corresponding rule
means section 56(2) or 1251(2) of CTA 2009 or section 48(2) of ITTOIA 2005, • “deductible as a reversed expense” means deductible at step 4 in section 76 as an expense reversed in an accounting period, and • “statutory insolvency arrangement” has the meaning given by section 1319(1) of CTA 2009.
- credit
means an amount which for accounting purposes increases or creates a profit, or reduces a loss, for a period of account, and • “debit” means an amount which for accounting purposes reduces a profit, or increases or creates a loss, for a period of account.
- date of the VAT change
means 1 October 2012;
- De minimis aid
means de minimis aid within the meaning of Article 2 of Commission Regulation (EC) No 1998/2006 (de minimis aid).
- debit
means an amount which for accounting purposes reduces a profit, or increases or creates a loss, for a period of account.
- debits or other losses
means—
- debtor relationship
has the meaning given by section 302(6) of CTA 2009 (and does not include anything which, although not falling within section 302(1) of that Act, is treated for any purpose as if it were a debtor relationship);
- decommissioning
means anything falling within any of paragraphs (a) to (e) of section 330C(1) of CTA 2010 (as inserted by this Schedule).
- decommissioning expenditure
has the meaning given by section 330C.”
- deductible as a reversed expense
means deductible at step 4 in section 76 as an expense reversed in an accounting period, and • “statutory insolvency arrangement” has the meaning given by section 1319(1) of CTA 2009.
- deposit back arrangements
means arrangements by which an amount is deposited by the re-insurer under a contract of re-insurance with the cedant, • “GENPRU” means the General Prudential Sourcebook made by the Prudential Regulation Authority under FISMA 2000, • “INSPRU” means the Prudential Sourcebook for Insurers made by the Prudential Regulation Authority under FISMA 2000, and • “IPRU (INS)” means the Interim Prudential Sourcebook for Insurers made by the Prudential Regulation Authority under FISMA 2000. •... •... •...
- derivative contract
has the same meaning as in Part 7 of CTA 2009, • “fair value”— (a) in relation to money, means its amount, and (b) in relation to other assets, means the amount which an independent person selling the assets would get, • “HMRC Commissioners” means the Commissioners for Her Majesty's Revenue and Customs, • “insurance business transfer scheme” means— (a) a scheme falling within section 105 of FISMA 2000, including an excluded scheme falling within Case 2, 3, 4 or 5 of subsection (3) of that section, or (b) a scheme which would fall within that subsection but for subsection (1)(b) of that section, • “insurance special purpose vehicle” means an undertaking which— (a) assumes risks from insurance or re-insurance undertakings, and (b) fully funds its exposures to those risks through the proceeds of a debt issue or other financing mechanism where the repayment rights of the providers of the mechanism are subordinated to the re-insurance obligations of the undertaking, • “liabilities”, in relation to an insurance company, means— (a) the mathematical reserves of the company as determined in accordance with section 1.2 of the INSPRU, and (b) liabilities of the company (
- designated
means designated by an order made by the Commissioners for Her Majesty's Revenue and Customs for the purposes of that provision. 5 An order made for the purposes of subsection (3)(b) may designate an exchange by name, or by reference to any class or description of exchanges, including a class or description framed by reference to any authority or approval given in a country outside the United Kingdom. 6 The arrangements referred to in subsection (1)(b) and (c)(ii) do not include arrangements in consequence of which any shares, stocks, debentures or other securities of the company are at any subsequent time— a listed on a stock exchange that is a recognised stock exchange by virtue of an order made under section 1005(1)(b), or b listed on an exchange, or dealt in by any means, designated by an order made for the purposes of subsection (3)(b) or (c), if the order was made after the beginning of period B. 257DG 1 The control element of the requirement is that— a the issuing company must not at any time in period A control (whether on its own or together with any person connected with it) any company which is not a qualifying subsidiary of the issuing company, and b no arr
- Designated assisted area
means an area which— a is designated by an order made by the Treasury, and b falls wholly within an assisted area. 3 An area may be designated by an order under subsection (2)(a) only if at the time the order is made— a the area falls wholly within an enterprise zone, and b a memorandum of understanding, in respect of the area, relating to the availability of allowances in respect of expenditure to which this section applies has been entered into by the Treasury and the responsible authority for the area. 4 An order made under subsection (2)(a) may provide that an area designated by the order is to be treated as having been so designated at times falling before the order is made. 5 But where an area has previously been designated by an order under subsection (2)(a), section 14 of the Interpretation Act 1978 does not apply, by virtue of subsection (4), so as to imply a power to make an order (“the new order”) treating that area (or any part of it) as if it were not so designated at times falling before the new order is made. 6 Condition A is that the company is within the charge to corporation tax. 7 Condition B is that the expenditure is incurred for the
- designer rate tax provisions
means provisions— a which appear to the HMRC Commissioners to be designed to enable companies to exercise significant control over the amount of tax which they pay, and b which are specified in regulations made by the HMRC Commissioners. 2 Regulations under subsection (1) may make different provision for different cases or with respect to different territories. 371NE 1 For the purposes of step 3 in section 371NB(1) “the corresponding UK tax” is the amount of corporation tax which, applying the corporation tax assumptions, would be charged in respect of the CFC's assumed taxable total profits for the accounting period. 2 In determining that amount of corporation tax— a ignore any relief from corporation tax attributable to the local tax amount which would be given to the CFC by virtue of Part 2 (double taxation relief) in respect of any income, and b deduct from what would otherwise be that amount of corporation tax— i any amount which, applying the corporation tax assumptions, would be set off against corporation tax on the CFC's assumed taxable total profits by virtue of section 967 of CTA 2010 (cases in which a company receives a payment bearing inc
- discovery assessment
means a discovery assessment or discovery determination under paragraph 41 of that Schedule (including an assessment by virtue of paragraph 52 of that Schedule), and • “the Taxes Acts” has the same meaning as in TMA 1970. 371UB 1 The provision of step 5 in section 371BC(1) relating to the charging of a sum as if it were an amount of corporation tax is to be taken as applying all enactments applying generally to corporation tax. 2 This is subject to— a the provisions of the Taxes Acts, and b any necessary modifications. 3 The enactments referred to in subsection (1) include— a those relating to returns of information and the supply of accounts, statements and reports, b those relating to the assessing, collecting and receiving of corporation tax, c those conferring or regulating a right of appeal, and d those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom. 4 In particular, TMA 1970 is to have effect as if— a any reference to corporation tax included a reference to a sum charged at step 5 in section 371BC(1) as if it were an amount of corporation tax, and b
- diverted profits
means so much of company X's total profits of period X as pass through the diverted profits gateway. 2 To determine the extent to which company X's total profits of period X pass through the diverted profits gateway, apply— a section 371BB of TIOPA 2010 (controlled foreign companies: the CFC charge gateway), and b except Chapter 8 of Part 9A of that Act, the other provisions referred to in that section, as if references to the CFC charge gateway were references to the diverted profits gateway. 3 In applying section 371BB of TIOPA 2010 and the other provisions referred to in it assume— a that company X is a CFC resident in territory X, b that period X is the CFC's accounting period, and c that company X's total profits of period X are the CFC's assumed total profits for the accounting period. 4 Subsection (3)(a) does not require it to be assumed that there is any change in the place or places at which company X carries on its activities. 5 Section 371BB of TIOPA 2010 and the other provisions referred to in it are also to be applied subject to sections 18HA to 18HE below. 6 In this section— a references to company X's total profits of period X are to those profits
- document
includes a copy of a document (see also section 114 of FA 2008);
- due date
has the same meaning as in Schedule 25 to FA 2021 (see paragraph 2(4) of that Schedule).
- dutiable machine game
has the meaning given in paragraph 2, subject to paragraphs 3 and 4;
- e qualifying overseas transfer
means so much of a transfer of the whole or any part of the business of an overseas life insurance company carried on through a permanent establishment in the United Kingdom as takes place in accordance with an authorisation granted outside the United Kingdom for the purposes of Article 14 of the Council Directive of 5 November 2002 concerning life assurance (2002/83/EC).”
- earnings
has the meaning given by section 62.”
- election
means an election under section 198;
- eligible oil field
means an oil field which is an additionally-developed oil field or a new oil field,”
- eligible shares
means shares that meet the requirements of section 257CA(2);
- enactment
includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978), and includes an enactment whenever passed or made;
- enterprise zone
means an area recognised by the Treasury as an area in respect of which there is a special focus on economic development and identified on a map published by the Treasury for the purposes of this section;
- equivalent reserve
means an equivalent reserve (within the meaning of section 444BD of ICTA) in relation to which section 444BA of ICTA applied,
- European Patent Convention
means the Convention on the Grant of European Patents, • “rules” means rules made under section 123 of the Patents Act 1977, • “specified” means specified in an order made by the Treasury, and • “supplementary protection certificate” means a certificate issued under— (a) Council Regulation (EC) No 469/2009 of the European Parliament and of the Council of 6 May 2009 concerning the supplementary protection certificate for medicinal products, or (b) Regulation (EC) No 1610/96 of the European Parliament and of the Council of 23 July 1996 concerning the creation of a supplementary protection certificate for plant protection products. 8 The Treasury may by order— a amend this section so as to make provision about the circumstances in which a product benefits from marketing or data protection for the purposes of this section;
- EUSA
means the agreement dated 26 October 2004 between the European Community and the Swiss Confederation providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation on savings income in the form of interest payments;
- excluded business
means business of any description excluded for the purposes of this section by regulations made by HMRC Commissioners.
- excluded income
means any income falling within any of the Heads in section 357CE. 357CE 1 For the purposes of this Part income falling within any of the Heads set out in the following subsections is not relevant IP income— a subsection (2) (ring fence income), b subsection (3) (income attributable to non-exclusive licences). 2 Head 1 is income arising from oil extraction activities or oil rights.
- Excluded payment
means— a any payment or reimbursement of travelling or other expenses, exclusively and necessarily incurred by the investor or an associate of the investor in the performance of the investor's or associate's duties as a director, b any interest which represents no more than a reasonable commercial return on money lent to the issuing company or any person connected with that company, c any dividend or other distribution which does not exceed a normal return on the investment, d any payment for the supply of goods which does not exceed their market value, e any payment of rent for any property occupied by the issuing company or a person connected with that company which does not exceed a reasonable and commercial rent for the property, and f any necessary and reasonable remuneration which meets the conditions in subsection (4). 4 The conditions are that the remuneration— a is paid for services rendered to the issuing company or a person connected with that company in the course of a trade or profession (not being secretarial or managerial services or services of a kind provided by the person to whom they are rendered), and b is taken into account in calculating for
- excluded services
means the services of an architect, surveyor or other person acting as consultant or in a supervisory capacity;
- excluded territory
means a territory specified as such in regulations made by the HMRC Commissioners. 3 The HMRC Commissioners may also by regulations, in relation to CFCs resident in a specified excluded territory or to other specified cases, do one or more of the following— a provide that one or both of the requirements set out in subsection (1)(b) and (c) does not have to be met in order for the excluded territories exemption to apply;
- 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). 10 This section needs to be read with section 371CD. 371CD 1 This section applies in relation to a CFC's accounting period if— a the requirements of section 371CC(1)(a) and (b) are both met, but b the CFC's non-trading finance profits (as added to under section 371CC(5) if applicable) are more than 5% of the relevant amount for the purposes of section 371CC(2). 2 Chapter 5 does not apply for the accounting period if the CFC's adjusted non-trading finance profits are no more than 5% of the total of the CFC's exempt distribution income (as defined in section 371CC(9)). 3 The CFC's “adjusted non-trading finance profits” are its non-trading finance profits excluding any profits falling within section 371CB(3) or (4). 4 Subsection (5) applies if any CFC subsidiary's relevant non-trading finance profits are added under section 371CC(5) to the CFC's non-trading finance profits for the purposes of section 371CC(2). 5 The CFC subsidiary'
- exempt FOTRA profits
means profits in respect of which no liability to corporation tax arises as a result of section 1279 of CTA 2009.
- Expenses reversed in the accounting period
means the total amount of the expenses—
- externally provided worker
has the same meaning as in Part 13 of CTA 2009 (see section 1128 of that Act), • “IP-related services” means services provided in connection with— (a) any application for a right to which this Part applies, or (b) any proceedings relating to the enforcement of any such right, • “premises” includes any land, • “telecommunications service” means any service that consists in the provision of access to, and of facilities for making use of, any telecommunication system (whether or not one provided by the person providing the service), and • “telecommunication system” means any system (including the apparatus comprised in it) which exists for the purpose of facilitating the transmission of communications by any means involving the use of electrical or electro-magnetic energy. 9 The Treasury may by order amend this section. 357CK 1 For the purposes of section 357CI a deduction is not a “routine deduction” if it falls within any of the Heads set out in— a subsection (2) (loan relationships and derivative contracts), b subsection (3) (R&D expenses), c subsection (4) (capital allowances for R&D or patents), d subsection (5) (R&D-related employee share acquisition
- facilities for the self storage of goods
means the use of a relevant structure for the storage of goods by the person (or persons) to whom the grant of facilities is made, and • “goods” does not include live animals. 15B For the purposes of Note (15A), use by a person with the permission of the person (or any of the persons) to whom the grant of facilities is made counts as use by the person (or persons) to whom that grant is made. 15C A grant of facilities for the self storage of goods does not fall within paragraph (ka) if— a the person making the grant (“P”)— i is doing so in circumstances where the relevant structure used is, or forms part of, a relevant capital item, and ii is connect
- file access notice
has the meaning given in paragraph 8;
- financial asset
means a financial asset as defined for the purposes of generally accepted accounting practice. 3 For the purposes of subsection (1)(c), the amount of a return is the amount which by virtue of the return would, in calculating the company's chargeable profits, be treated under section 486B of CTA 2009 (disguised interest to be regarded as profit from loan relationship) as a profit arising to the company from a loan relationship.
- foreign CFC charge
means a charge under the law of a relevant foreign territory (by whatever name known) which is similar to the CFC charge. 5 In subsection (1)(b) to (d) references to an amount being set off, an amount actually charged or an amount paid do not include so much of any such amount as has been or falls to be repaid to the CFC or any other person whether on the making of a claim or otherwise. 6 “Relevant foreign territory” means a territory outside the United Kingdom other than the territory in which the CFC is resident for the accounting period. 371QA This Chapter applies for the purpose of apportioning a CFC's chargeable profits and creditable tax for an accounting period among the relevant persons as required by step 3 in section 371BC(1). 371QB 1 This section applies for the purposes of this Chapter. 2 Section 371OB applies as it applies for the purposes of Chapter 15. 3 “Ordinary shares”, in relation to any company, means shares of a single class, however described, which is the only class of share issued by the company. 4 For the purposes of subsection (3)— a “share” includes a fraction of a share, and b shares issued by a company which are paid up to different
- foreign person
means a person who—
- foreign tax
means— a the local tax amount, or b any tax under the law of a relevant foreign territory. 3 In subsection (1)(b) “relevant income tax” means income tax which the CFC bears by deduction on a payment so far as the payment is included or represented in the CFC's chargeable profits. 4 In subsection (1)(d) “foreign CFC charge” means a charge under the law of a relevant foreign territory (by whatever name known) which is similar to the CFC charge. 5 In subsection (1)(b) to (d) references to an amount being set off, an amount actually charged or an amount paid do not include so much of any such amount as has been or falls to be repaid to the CFC or any other person whether on the making of a claim or otherwise. 6 “Relevant foreign territory” means a territory outside the United Kingdom other than the territory in which the CFC is resident for the accounting period. 371QA This Chapter applies for the purpose of apportioning a CFC's chargeable profits and creditable tax for an accounting period among the relevant persons as required by step 3 in section 371BC(1). 371QB 1 This section applies for the purposes of this Chapter. 2 Section 371OB applies as it applies for the purpo
- free-standing claim
means a claim made as mentioned in subsection (2)(a), and • “tax return claim” means a claim made as mentioned in subsection (2)(b). 4 The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision— a limiting the number of free-standing claims that may be made by a person in a tax year, or b requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim. 5 The regulations may make different provision for different cases or purposes.”
- General Block Exemption Regulation
means Commission Regulation (EC) No 800/2008 (General block exemption Regulation);
- GENPRU
means the General Prudential Sourcebook made by the Prudential Regulation Authority under FISMA 2000, • “INSPRU” means the Prudential Sourcebook for Insurers made by the Prudential Regulation Authority under FISMA 2000, and • “IPRU (INS)” means the Interim Prudential Sourcebook for Insurers made by the Prudential Regulation Authority under FISMA 2000. •... •... •...
- group
means a parent company and its qualifying subsidiaries;
- group 16 supply
means a supply falling within Group 16 of Schedule 9.”
- Group 6
means Group 6 of Part 2 of Schedule 8 to VATA 1994 (protected buildings);
- group accounts
means accounts prepared under— a section 399 of the Companies Act 2006, or b any corresponding provision of the law of a country or territory outside the United Kingdom. 11 The following provisions apply for the purposes of this section— • sections 466 to 471 of CTA 2009 (companies connected for accounting period), and • sections 473 and 474 of CTA 2009 (meaning of “major interest”). 357GE 1 In this Part— • “invention”, in relation to a right to which this Part applies, means the item or process in respect of which the right is granted, • “item” includes any substance, • “the OECD Model Tax Convention” means— (a) the version of the Model Tax Convention on Income and on Capit
- group annuity contract
means a contract under which the insurance company undertakes to become liable to pay annuities to or in respect of persons who may subsequently be specified or otherwise ascertained under or in accordance with the contract (whether or not annuities under the contract are also payable to or in respect of persons who are specified or ascertained at the time the contract is made), and • “re-insurance treaty” means a contract under which one insurance company is obliged to cede, and another (referred to in this section as a “re-insurer”) to accept, the whole or part of a risk of a class or description to which the contract relates.
- HMRC
means Her 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. 4 “Relevant percentage”, in relation to a holding period, means the percentage given by the following formula— where— P is the percentage of the issued ordinary shares in the CFC represented by the relevant person's relevant interest during the holding period, H is the number of days in the holding period, and A is the number of days in the accounting period. 371QG 1 This section applies in relation to an accounting period (“the relevant accounting period”) of a CFC if— a at any time an arrangement is entered into, and b the main purpose, or one of the main purposes, of the arrangement is to obtain for any person a tax advantage within section 1139(2)(da) of CTA 2010 in relation to— i the relevant accounting period, or ii that period and one or more other accounting periods of the CFC. 2 The CFC's chargeable profits and creditable tax for the relevant accounting period are to be apportioned in accordance with section 371QC(2) (and not section 371QD if that section would otherwise apply).
- Hot food
means food which (or any part of which) is hot at the time it is provided to the customer and— a has been heated for the purposes of enabling it to be consumed hot, b has been heated to order, c has been kept hot after being heated, d is provided to a customer in packaging that retains heat (whether or not the packaging was primarily designed for that purpose) or in any other packaging that is specifically designed for hot food, or e is advertised or marketed in a way that indicates that it is supplied hot. 3C For the purposes of Note (3B)— a something is “hot” if it is at a temperature above the ambient air temperature, and b something is “kept hot” after being heated if the supp
- ICTA
means the Income and Corporation Taxes Act 1988, • “IHTA 1984” means the Inheritance Tax Act 1984, • “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, • “OTA 1975” means the Oil Taxation Act 1975, • “PRTA 1980” means the Petroleum Revenue Tax Act 1980, • “TCGA 1992” means the Taxation of Chargeable Gains Act 1992, • “TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010, • “TMA 1970” means the Taxes Management Act 1970, • “TPDA 1979” means the Tobacco Products Duty Act 1979, • “VATA 1994” means the Value Added Tax Act 1994, and • “VERA 1994” means the Vehicle Excise and Registration Act 1994.
- incidental purposes
means purposes having no significant effect (other than in relation to incidental matters) on the extent of the activities of the company in question;
- income
means employment income or profits of a trade, profession or vocation (including profits treated as arising as a result of section 13 or 14 of ITTOIA 2005);
- income deduction
means a deduction to which any person is entitled—
- incorporated friendly society
means a society incorporated under FSA 1992, • “policy”, in relation to BLAGAB or eligible PHI business, includes an instrument evidencing a contract to pay an annuity upon human life, • “registered branch” has the same meaning as in FSA 1992 (and includes any branch that as a result of section 96(3) of FSA 1992 is treated as a registered branch), and • “registered friendly society” has the same meaning as in FSA 1992 (and includes any society that as a result of section 96(2) of FSA 1992 is treated as a registered friendly society).
- index-linked gilt-edged security
has the same meaning as it has in sections 400 to 400C of CTA 2009 (see section 399(4) of that Act), and • “index-linked PHI business” means PHI business so far as consisting of the effecting or carrying out of contracts of long-term insurance under which the benefits payable are linked to an index of prices published by the Statistics Board.
- index-linked PHI business
means PHI business so far as consisting of the effecting or carrying out of contracts of long-term insurance under which the benefits payable are linked to an index of prices published by the Statistics Board.
- individual savings account policy
means a policy of life insurance which is an investment of a kind specified in regulations made as a result of section 695(1) of ITTOIA 2005.
- information on pre-arranged exits
means any information indicating the possibility of making, during period B, arrangements of the kind described in paragraph (a), (b), (c) or (d) of subsection (1). 257CE The relevant shares must be issued for genuine commercial reasons, and not as part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax. 257CF 1 The relevant shares must not be issued, nor any money raised by the issue spent, in consequence or anticipation of, or otherwise in connection with, disqualifying arrangements. 2 Arrangements are “disqualifying arrangements” if— a the main purpose, or one of the main purposes, of the arrangements is to secure— i that a qualifying business activity is or will be carried on by the issuing company or a qualifying 90% subsidiary of that company, and ii that one or more persons (whether or not including any party to the arrangements) may obtain relevant tax relief in respect of shares issued by the issuing company which raise money for the purposes of that activity or that such shares may comprise part of the qualifying holdings of a VCT, b that activity is the relevant qualifying business
- INSPRU
means the Prudential Sourcebook for Insurers made by the Prudential Regulation Authority under FISMA 2000, and • “IPRU (INS)” means the Interim Prudential Sourcebook for Insurers made by the Prudential Regulation Authority under FISMA 2000. •... •... •...
- 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” means— (a) a long funding lease for the purposes of Part 2 of CAA 2001 (plant and machinery allowances), or (b) a short lease for the purposes of that Part which meets the finance lease test in section 70N of that Act, and includes a part of such a lease, • “relevant interest” is to be read in accordance with Chapter 15, • “tax advantage” has the meaning given by section 1139 of CTA 2010, • “trading f
- insurance business transfer scheme
means— (a) a scheme falling within section 105 of FISMA 2000, including an excluded scheme falling within Case 2, 3, 4 or 5 of subsection (3) of that section, or (b) a scheme which would fall within that subsection but for subsection (1)(b) of that section, • “insurance special purpose vehicle” means an undertaking which— (a) assumes risks from insurance or re-insurance undertakings, and (b) fully funds its exposures to those risks through the proceeds of a debt issue or other financing mechanism where the repayment rights of the providers of the mechanism are subordinated to the re-insurance obligations of the undertaking, • “liabilities”, in relation to an insurance company, means— (a) the mathematical reserves of the company as determined in accordance with section 1.2 of the INSPRU, and (b) liabilities of the company (whose value falls to be determined in accordance with section 1.3 of the GENPRU) which arise from deposit back arrangements, • “overseas life insurance company” means an insurance company which is not resident in the United Kingdom but which carries on life assurance business in the United Kingdom through a permanent establishm
- insurance special purpose vehicle
means an undertaking which— (a) assumes risks from insurance or re-insurance undertakings, and (b) fully funds its exposures to those risks through the proceeds of a debt issue or other financing mechanism where the repayment rights of the providers of the mechanism are subordinated to the re-insurance obligations of the undertaking, • “liabilities”, in relation to an insurance company, means— (a) the mathematical reserves of the company as determined in accordance with section 1.2 of the INSPRU, and (b) liabilities of the company (whose value falls to be determined in accordance with section 1.3 of the GENPRU) which arise from deposit back arrangements, • “overseas life insurance company” means an insurance company which is not resident in the United Kingdom but which carries on life assurance business in the United Kingdom through a permanent establishment there, • “re-insurance” includes retrocession, • “UK life insurance company” means an insurance company other than an overseas life insurance company, • “with-profits fund” has the meaning given by the IPRU (INS).
- insurance undertaking
has the meaning given in Article 13(1) of the Solvency 2 Directive;
- Intellectual property
has the meaning given by section 712(3) of CTA 2009. 7 Mandatory streaming condition C is met in relation to a trade of a company for an accounting period if the total gross income of the trade for the accounting period includes— a income that is not relevant IP income, and b a substantial amount of relevant Head 2 income. 8 Income is “relevant Head 2 income” for the purposes of subsection (7) if— a it is relevant IP income received under an agreement falling within subsection (6) of section 357CC, and b every qualifying IP right— i in respect of which a right within paragraph (a) of that subsection is granted by the agreement, or ii which is granted in respect of an invention in respect of which a right within paragraph (b) of that subsection is granted by the agreement, is a right in respect of which the company holds an exclusive licence. 9 In a case where— a relevant IP income is received under an agreement falling within section 357CC(6), but b the condition in paragraph (b) of subsection (8) above is not met, so much of the relevant IP income as on a just and reasonable apportionment is attributable to any qualifying IP right falling within that paragr
- interest
includes an interest by virtue of subsection (12).) 12 The person or persons mentioned in subsection (11)(a) are to be taken to have an interest in company 2 (and references to a person's interest in a company are to be read accordingly). 13 For the purposes of references to one person's interest in a company being the same as another person's interest— a the person mentioned in subsection (11)(a), or b each of the persons so mentioned, is to be taken as having, to the extent of that person's interest in company 1, the same interest as company 1 has in company 2. 14 If two or more persons jointly have an interest in a company otherwise than in a fiduciary or representative capacity, they are taken to have the interest in equal shares. 371VI 1 Subject to what follows, in this Part “property business 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 4 of CTA 2009 (property income). 2 Any credits or debits— a which are brought into account under Part 5 of CTA 2009 in determining the CFC's assumed total profits for the acc
- interest in a single dwelling
means so much of the subject-matter of a chargeable transaction as consists of a chargeable interest in or over a single dwelling (together with appurtenant rights). 2 An interest in a single dwelling is a higher threshold interest for the purposes of this Schedule if chargeable consideration of more than £2,000,000 is attributable to that interest. 2 1 Sub-paragraphs (2) to (8) apply to a chargeable transaction whose subject-matter consists of or includes a higher threshold interest. 2 If the main subject-matter of the transaction consists entirely of higher threshold interests, the transaction is a high-value residential transaction for the purposes of paragraph 3. 3 If the main subject-matter of the transaction includes a chargeable interest other than a higher threshold interest, the transaction (“the primary transaction”) is to be treated for the relevant purposes as two separate chargeable transactions as follows— a a transaction whose subject-matter is all the higher threshold interests, together with any appurtenant rights;
- International tax enforcement arrangements
means arrangements which relate to one or both of the following— a the exchange of information foreseeably relevant to the administration, enforcement or recovery of the bank levy or any equivalent foreign levy to which the double taxation arrangements relate;
- Item
means an object or collection or group of objects.
- land
means any estate, interest or right in or over land.
- late payment interest
means interest under section 101 of FA 2009, or under or by virtue of Part 9 of TMA 1970, on amounts payable to HMRC;
- late payment penalty
means a penalty under Schedule 56 to FA 2009.
- liable
includes being liable jointly with others.
- liable to tax
includes a case where P would be so liable if the income or gain were to be remitted to the United Kingdom,
- licensing income
means income consisting of any licence fee, royalty or other payment which the company has received under an agreement granting another person any right in respect of any intellectual property held by the company.
- Life assurance company
means a company carrying on life assurance business within the meaning of Part 2 of this Act (see section 56).
- Life assurance subsidiary
means a company in which a life assurance company has a relevant interest as determined in accordance with Chapter 15 of Part 9A of TIOPA 2010.
- life assurance trade loss
means a loss arising to an insurance company from life assurance business which is calculated in accordance with the life assurance trade profits provisions.
- life assurance trade profits
means profits arising from life assurance business calculated in accordance with the provisions applicable for the purposes of the taxation of such profits under section 35 of CTA 2009 (charge on trade profits).
- linked loan
means any loan which— a would not have been made, or b would not have been made on the same terms, if the investor had not subscribed for the relevant shares, or had not been proposing to do so. 3 References in this section to the making by any person of a loan to the investor or an associate of the investor include a reference— a to the giving by that person of any credit to the investor or any associate of the investor, and b to the assignment to that person of a debt due from the investor or any associate of the investor. 257BE The relevant shares must be subscribed for by the investor for genuine commercial reasons, and not as part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax. 257BF 1 An individual has a substantial interest in a company if the individual directly or indirectly possesses or is entitled to acquire more than 30% of— a the ordinary share capital of the company or any subsidiary of the company, b the issued share capital of the company or any such subsidiary, or c the voting power in the company or any such subsidiary. 2 An individual has a substantial interest in a company if the individual
- listed above
means listed in any of the preceding provisions of that sub-paragraph.
- loan
includes any advance of money. 196C 1 For the purposes of section 196B the asset-backed arrangement is an “acceptable structured finance arrangement” if conditions M to Q are met. 2 Condition M is that— a in accordance with generally accepted accounting practice, the borrower's accounts for the period in which the advance is received record a financial liability (“the recorded financial liability”) in respect of the advance, and b the asset-backed arrangement is a type 1 finance arrangement for the purposes of Chapter 5B of Part 13 of ITA 2007 or Chapter 2 of Part 16 of CTA 2010 (finance arrangements). 3 Condition N is that— a the lender is a responsible authority, b the advance is money which is paid by the lender directly to the borrower wholly and directly out of E's contribution, and c the advance and the recorded financial liability (as originally recorded) are both of an amount equal to the amount of E's contribution. 4 Condition O is that, as at the time the advance is paid, the position of the lender is as follows— a it is the lender (and not any person connected with the lender) who is entitled to the payments mentioned in section 196B(2)(a)(iii), b those payments a
- 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). 9 Subsection (10) applies if, in accordance with generally accepted accounting practice, a loan creditor divides its rights and liabilities under a loan relationship to which it is a party as mentioned in section 415(1) of CTA 2009 (loan relationships with embedded derivatives).
- 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 b other terms used which are defined in Part 5 of CTA 2009 are to be read accordingly. 11 See section 371CB(8) which deals with the interaction between this Chapter and section 371CB and Chapter 5 in the case of a chargeable company which makes a claim under this Chapter. 371IB 1 This section applies to a qualifying loan relationship if company C's claim under this Chapter states that this section is to apply to the qualifying loan relationship. 2 X% of the profits of the qualifying loan relationship are exempt if company C's claim establishes— a that, at all times during the relevant period, at least X% of the principal outstanding on the relevant loan (as that may vary from time to time during the relevant period) is funded by the CFC wholly out of qualifying resources, and b that the ultimate debtor in relation to the qualifying loan relationship (see section 371IG(2) to (7)) is resident at all times during the relevant period in one territory only and that its
- long-term business
means—
- machine
means any apparatus that uses or applies mechanical power, electrical power or both;
- machine game
has the meaning given in paragraph 2;
- mainly trading subsidiary
means a qualifying subsidiary which, apart from incidental purposes, exists wholly for the purpose of carrying on one or more qualifying trades, and any reference to the main purpose of such a subsidiary is to be read accordingly;
- market value
has the same meaning as in TCGA 1992 (see in particular sections 272 and 273 of that Act);
- marketing asset
means any of the following (whether or not capable of being transferred or assigned)— a anything in respect of which proceedings for passing off could be brought, including a registered trade mark (within the meaning of the Trade Marks Act 1994), b anything that corresponds to a marketing asset within paragraph (a) and is recognised under the law of a country or territory outside the United Kingdom, c any signs or indications (so far as not falling within paragraph (a) or (b)) which may serve, in trade, to designate the geographical origin of goods or services, and d any information which relates to customers or potential customers of the company, or any other member of a group of which the company is a member, and is intended to be used for marketing purposes. 357CP 1 The actual marketing royalty in respect of a trade of a company for an accounting period is X% of the aggregate of any sums which— a were paid by the company for the purposes of acquiring any relevant marketing assets, or the right to exploit any such assets, and b were brought into account as debits in calculating the profits of the trade for the accounting period. 2 In this section— • “relevant ma
- Material time
means any time in the accounting period when the person is liable for machine games duty in respect of the machine.
- means of transport
has the same meaning as it has in this Act in the expression “new means of transport” (see section 95);
- melting
means— (a) the pre-heating and first melting of scrap metal before casting into items (“intermediates”) for further processing or re-melting, or (b) the heating of scrap metal as part of the recycling process before any solidification and re-melting, but excluding the melting of any metal which is not scrap but which is added at any stage to improve the quality or adjust the composition of the recycled metal or intermediates, and • “metal” means aluminium or steel. 8 The Commissioners may by regulations make provision for giving effect to this paragraph. 9 Regulations under this paragraph may, in particular, include provision for determining whether or not a taxable supply is a sup
- metal
means aluminium or steel. 8 The Commissioners may by regulations make provision for giving effect to this paragraph. 9 Regulations under this paragraph may, in particular, include provision for determining whether or not a taxable supply is a supply for use in scrap metal recycling (to any extent). 43B 1 This paragraph applies where— a a taxable supply (“the original supply”) has been made to any person (“the recipient”), b the original supply was made on the basis that it was, to any extent, a supply for use in scrap metal recycling or a reduced-rate supply, c it is later determined that the original supply was (or was to some extent) a different kind of supply, and d the amount pay
- method of allocation
means the method of allocating, for the purposes of Step 2 in section 357DA(1), the amounts mentioned in that step. 2 A company that applies section 357DA for the purposes of determining the relevant IP profits of a trade of the company for an accounting period must use the same method of allocation in relation to the trade for that accounting period as it used in the last accounting period of the company for which it applied that section for the purposes of determining the relevant IP profits of the trade. 3 But subsection (2) does not apply if there is a change of circumstances relating to the trade which makes the use of that method of allocation in relation to the trade for the accounting period inappropriate. 4 In such a case, the company may— a use a different method of allocation in relation to the trade for the accounting period (and subsection (2) applies accordingly for subsequent accounting periods), or b elect not to apply section 357DA for the purposes of determining the relevant IP profits of the trade for the accounting period. 5 Subsection (4)(b) does not prevent the company making a fresh streaming election in relation to the trade for any su
- Mixed income
means the proceeds of sale in a case where an item falling within subsection (2) of section 357CC and an item not falling within that subsection are sold together as, or as part of, a single unit for a single price. 3 A “mixed agreement” is an agreement providing for— a one or more of the matters in paragraphs (a) to (c) of subsection (4), and b one or more of the matters in paragraphs (d) to (g) of that subsection. 4 The matters are— a the sale of an item falling within section 357CC(2), b the grant of any right falling within paragraph (a), (b) or (c) of section 357CC(6), c a sale or disposal falling within section 357CC(7), d the sale of any other item, e the grant of any other right, f any other sale or disposal, g the provision of any services. 5 So much of the income as on a just and reasonable apportionment is properly attributable to— a the sale of an item falling within section 357CC(2), b the grant of any right falling within paragraph (a), (b) or (c) of section 357CC(6), or c a sale or disposal falling within section 357CC(7), is to be regarded for the purposes of this Part as relevant IP income. 6 But where the amount of income that on such an apportionme
- modify
includes amend, repeal or revoke.
- money
means money in sterling or any other currency;
- multi-year contract
means a contract which (unless cancelled) operates in respect of successive underwriting years, and • “the anniversary date of the contract” means the date which is the anniversary of the date on which the contract was entered into.
- mutual life insurance company
means an insurance company which carries on mutual life assurance business.
- national authority
means— (a) the Secretary of State, or (b) a Northern Ireland department. 3 An order under this section may include provision having effect in relation to times before it is made, provided that it does not increase any person's liability to tax. 4 No order may be made under this section unless a draft of the statutory instrument containing it has been laid before and approved by a resolution of the House of Commons.”
- National interest
includes interest within any part of the United Kingdom.
- net premiums written
means gross premiums written net of reinsurance premiums payable under reinsurance ceded, and
- non-BLAGAB long-term business
means—
- non-designated area
means an area which is not a designated assisted area within the meaning of section 45K;
- non-qualifying activities
means— (a) excluded activities (within the meaning of sections 192 to 199), and (b) activities (other than research and development) carried on otherwise than in the course of a trade;
- non-taxable distributions
means distributions that are exempt for the purposes of Part 9A of CTA 2009 (company distributions).
- 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” means— (a) a long funding lease for the purposes of Part 2 of CAA 2001 (plant and machinery allowances), or (b) a short lease for the purposes of that Part which meets the finance lease test in section 70N of that Act, and includes a part of such a lease, • “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 co
- Non-working day
means— a a Saturday or Sunday, b a Christmas Eve, Christmas Day or Good Friday, or c a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom, and “working day” is to be read accordingly.”
- 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. 4 “Relevant income” has the same meaning as in section 371KE. 5 “Relevant non-local income” means the gross amount (that is, the amount before deduction of expenses or transfers to or from reserves) of any non-trading income— a which is included in the CFC's relevant income, and b which is received (directly or indirectly) from— i a person resident outside the CFC's territory, or ii a permanent establishment which a person resident in the CFC's territory (apart from the CFC itself) has in a territory outside the CFC's territory. 371KH A CFC's category C income for an accounting period is the total of the following amounts— a amounts included in the CFC's accounting profits for the period which fall within section 371VD(4)(a) (whether or not those amounts would have been included in those profits apart from section 371VD(4)(a)), and b amounts included in those profits by virtue only of section 371VD(4)(b). 371KI 1 A CFC's category D income for an accounting period consists of the gross amounts (that is, the amounts before
- offshore fund
has the meaning given by section 355 of TIOPA 2010.”
- old society
means—
- operation
includes an omission;
- ordinary share capital
has the meaning given in section 989 of ITA 2007;
- ordinary shares
means shares forming part of a company's ordinary share capital;
- ordinary trade debt
means any debt for goods or services supplied in the ordinary course of a trade or business if any credit given— i is for not more than 6 months, and ii is not longer than that normally given to customers of the person carrying on the trade or business, and b any reference to a payment to an individual includes a payment made to the individual indirectly or to the individual's order or for the individual's benefit. 257FI In a case falling within a provision listed in column 1 of the following table, the amount of value received for the purposes of sections 257FE and 257FJ is given by the corresponding entry in column 2 of the table. 257FJ 1 This section applies if— a two or more issues of shares in the issuing company have been made to the investor which include shares in respect of which the investor obtains SEIS relief, and b value is received by the investor at any time in the applicable periods for two or more of those issues. 2 Section 257FE(2) has effect in relation to the shares included in each of the issues referred to in subsection (1)(b) as if the amount of value referred to as “R” were reduced by multiplying it by the fraction— where— A is the amou
- organisation
means any body corporate, partnership or other organisation carrying on a business;
- 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. 5 This section is subject to section 371JF (anti-avoidance). 371JC 1 An exempt period of a CFC begins at any time (“the relevant time”) during an accounting period of the CFC if— a the initial condition is met, b the charging condition is met at the relevant time, and c at no time during the relevant preceding period (if there is one) is the charging condition met. 2 The initial condition is met if— a immediately before the relevant time, the company (“C”) which is the CFC is carrying on a business, or b if the relevant time is the time at which C is incorporated or formed, C is incorporated or formed by one or more persons for the purpose of controlling one or more companies in circumstances where it is expected that an exempt period will begin in relation to one or more of those co
- outstanding contingent loan
means the total amount of the credits brought into account by the company as part of total income— in respect of money debts so far as those debts have not been repaid before that date.
- outstanding re-insurance amount
means the total of the amounts which would (but for section 83YF(2) of FA 1989) have been taken into account in calculating the company's life assurance trade profits— in respect of the re-insurance of relevant liabilities (within the meaning of section 83YC of FA 1989) to the extent that they have not ceased to be re-insured before that date.
- overseas life insurance company
means an insurance company which is not resident in the United Kingdom but which carries on life assurance business in the United Kingdom through a permanent establishment there, • “re-insurance” includes retrocession, • “UK life insurance company” means an insurance company other than an overseas life insurance company, • “with-profits fund” has the meaning given by the IPRU (INS).
- overseas team
means a football club which is not a member of the Football Association, the Scottish Football Association, the Football Association of Wales or the Irish Football Association.
- Parent company
means a company that— a has one or more 51% subsidiaries, but b is not itself a 51% subsidiary of any company. 8 A group is an “eligible group” if the parent company and each of its 51% subsidiaries are private limited companies. 9 A group is an “eligible trading group” if— a it is an eligible group, and b carrying on commercial trades is all or substantially all of what the group does (taking the activities of its members as a whole). 10 The reference in subsection (5) to owning ordinary share capital indirectly is to be read in accordance with section 1155 of CTA 2010. 11 A company is a “private limited company” if— a it is a body corporate whose liability is limited, b it
- participator
has the meaning given in section 102;
- partnership
includes an entity established under the law of a territory outside the United Kingdom of a similar character to a partnership;
- payment
includes the provision of any benefit, the assumption of any liability and any other transfer of money's worth (and “payable” is to be construed accordingly);
- payouts
means prizes paid out to players as a result of playing dutiable machine games on a machine;
- Period A
means the period— a beginning with the incorporation of the company, and b ending immediately before the termination date relating to the shares. 3 “Period B” means the period— a beginning with the issue of the shares, and b ending immediately before the termination date relating to the shares. 4 In this section “the termination date”, in relation to the shares, means the third anniversary of the date on which the shares are issued. 257AD In this Part— a Chapter 5 provides for the attribution of SEIS relief to shares and the making of claims for such relief, b Chapter 6 provides for SEIS relief to be withdrawn or reduced in the circumstances mentioned in that Chapter, c Chapter 7 makes provision with respect to the procedure for the withdrawal or reduction of SEIS relief, and d Chapter 8 contains supplementary and general provisions. 257AE 1 Section 150E of TCGA 1992 makes provision about gains or losses on the disposal of shares to which SEIS relief is attributable. 2 Schedule 5BB to that Act provides relief in respect of the re-investment under SEIS of the proceeds of assets disposed of in circumstances where there would otherwise be a chargeable gain. 257B The investo
- Period B
means the period— a beginning with the issue of the shares, and b ending immediately before the termination date relating to the shares. 4 In this section “the termination date”, in relation to the shares, means the third anniversary of the date on which the shares are issued. 257AD In this Part— a Chapter 5 provides for the attribution of SEIS relief to shares and the making of claims for such relief, b Chapter 6 provides for SEIS relief to be withdrawn or reduced in the circumstances mentioned in that Chapter, c Chapter 7 makes provision with respect to the procedure for the withdrawal or reduction of SEIS relief, and d Chapter 8 contains supplementary and general provisions. 257AE 1 Section 150E of TCGA 1992 makes provision about gains or losses on the disposal of shares to which SEIS relief is attributable. 2 Schedule 5BB to that Act provides relief in respect of the re-investment under SEIS of the proceeds of assets disposed of in circumstances where there would otherwise be a chargeable gain. 257B The investor is a qualifying investor in relation to the relevant shares if the requirements of this Chapter are met as to— a no employee investors (see section 257BA), b
- periodical return
has the same meaning as it has in Chapter 1 of Part 12 of ICTA.
- permanent establishment
has the same meaning as in Part 5 (see section 191A);
- person concerned
means— a the relevant company, b the investing company, c any person connected with either of those companies, and d any person whom the officer has reason to believe is or was a party to the arrangements in question.”
- pre-change supply
means a supply of a description specified in paragraph 3 which— (a) is treated as taking place before the date of the VAT change, and (b) if it had been treated as taking place on that date, would have been charged to VAT at the standard rate as a result of the amendments made by Schedule 26.
- pre-eminent property
means—
- Premises
means— a an office, shop, factory or other building or part of a building, b a mine, an oil or gas well, a quarry or other place of extraction of natural resources, or c a building site or the site of a construction or installation project, but only if the building work or project has a duration of at least 12 months. 371DH 1 This section applies for the purposes of section 371DF(1)(b). 2 The income condition is met if no more than 20% of the CFC's relevant trading income derives (directly or indirectly) from— a UK resident persons, or b UK permanent establishments of non-UK resident companies. 3 For the purposes of subsection (2) the CFC's “relevant trading income” is its trading income, excluding any income arising from the sale in the United Kingdom of goods produced by the CFC in the territory in which it is resident for the accounting period. 4 Subsection (5) applies instead of subsection (2) if, at any time during the accounting period, the CFC's main business is banking business in relation to which the CFC is regulated in the territory in which it is resident for the accounting period. 5 The income condition is met if the CFC's relevant UK trading income is no mo
- prescribed
means prescribed, or of a description prescribed, by regulations made by the Treasury.
- property business losses
means any losses of a UK property business or overseas property business of the CFC;
- Property managing subsidiary
means a subsidiary of the company whose business consists wholly or mainly in the holding or managing of land or any property deriving its value from land. 3 In subsection (2) references to property deriving its value from land include— a any shareholding in a company deriving its value directly or indirectly from land, b any interest in settled property deriving its value directly or indirectly from land, and c any option, consent or embargo affecting the disposition of land. 257E 1 References in this Part, in relation to any individual, to the SEIS relief attributable to any shares or issue of shares are to be read as references to any reduction made in the individual's liability to income tax that is attributed to those shares or that issue in accordance with this section.