- a Northern Ireland additional deduction
means so much of a deduction under section 1217RD of CTA 2009 (claim for additional deduction) as is calculated by reference to qualifying expenditure that is Northern Ireland expenditure. 2 A Northern Ireland additional deduction forms part of the Northern Ireland profits or Northern Ireland losses of the separate orchestral trade. 357UL 1 This section applies where— a a company is entitled under section 1217RD of CTA 2009 to an additional deduction in calculating the profit or loss of the separate orchestral trade in an accounting period, b the company is a Northern Ireland company in the period, c the additional deduction is wholly or partly a Northern Ireland additional deduction, and d any of the following conditions is met— i the company does not have a surrenderable loss in the accounting period;
- accumulated or discretionary income
has the meaning given by section 480 of ITA 2007. 274C 1 This section applies if for a tax year the trustees of a settlement are entitled to relief under section 274B in respect of a relievable amount or in respect of each of two or more relievable amounts, and in the following subsections of this section “relievable amount” means that relievable amount or (as the case may be) any of those relievable amounts. 2 The amount of the relief in respect of a relievable amount is given by— where— BR is the basic rate of income tax for the year, and L is the lower of— (a) the relievable amount, and (b) the profits for income tax purposes of the property business
- adjusted ring fence profits
has the same meaning as in section 330 of CTA 2010;
- adjustments
includes adjustments made in any way permitted by section 209(5). 209B 1 This section applies where a person (the “taxpayer”) to whom a provisional counteraction notice has been given appeals against the making of the notified adjustments. 2 The notified adjustments are to be treated as cancelled with effect from the end of the period of 12 months beginning with the day on which the provisional counteraction notice is given unless an action mentioned in subsection (4) is taken before that time. 3 For the purposes of subsection (2) it does not matter whether the action mentioned in subsection (4)(c), (d) or (e) is taken before or after the provisional counteraction notice is given (but if that action is taken before the provisional counteraction notice is given subsection (5) does not have effect). 4 The actions are— a an officer of Revenue and Customs notifying the taxpayer that the notified adjustments are cancelled;
- Administrative provision
means provision corresponding, subject to such adaptations or other modifications as appear to the Treasury to be appropriate, to that made by Part 8 of Schedule 18 to FA 1998 (company tax returns: claims for group relief). 1217T 1 In relation to a company and the production of a concert or concert series, “interim accounting period” means any accounting period that— a is one in which the company carries on a separate orchestral trade, and b precedes the accounting period in which it ceases to do so. 2 A company is not entitled to orchestra tax relief for an interim accounting period unless— a its company tax return for the period states the amount of planned core expenditure on the production of the concert or concert series that is EEA expenditure (see section 1217RB(2)), and b that amount is such as to indicate that the EEA expenditure condition (see section 1217RB) will be met in relation to the production.
- advantage
includes— a a relief or increased relief from tax, b repayment or increased repayment of tax, c avoidance or reduction of a charge to tax or an assessment to tax, d avoidance of a possible assessment to tax, e deferral of a payment of tax or advancement of a repayment of tax, and f avoidance of an obligation to deduct or account for tax. 517L 1 Subsection (2) applies if— a subsection (1) of section 517C applies because Condition D in section 517B is met (land developed with purpose of realising a gain from its disposal when developed), and b part of the profit or gain mentioned in that subsection is fairly attributable to a period before the intention to develop was formed. 2 Section 517C(1) has effect as if the person mentioned in section 517B(1) had not realised that part of the profit or gain. 3 Subsection (4) applies if— a section 517E(1) applies, and b part of the profit or gain mentioned in section 517E(5) is fairly attributable to a period before the person mentioned in section 517D(1) was a party to, or concerned in, the arrangement in question. 4 Section 517E has effect as if the person had not realised that part of the profit or gain. 5 In applying this sectio
- allowance on death
means— a where E is less than or equal to TT, the person's default allowance, or b where E is greater than TT, the person's adjusted allowance. 8 For the purposes of this section, “completion” of the disposal of a residential property interest occurs at the time of the disposal or, if the disposal is under a contract which is completed by a conveyance, at the time when the interest is conveyed. 9 Where, as a result of section 8FA, there is entitlement to a downsizing addition in calculating the person's residence nil-rate amount, take the following steps to calculate the person's lost relievable amount. • Step 1 Express the value of the person's qualifying former residential interest as a percentage of the person's former allowance, but take that percentage to be 100% if it would otherwise be higher. • Step 2 Express QRI as a percentage of the person's allowance on death, where QRI is so much of VT as is attributable to the person's qualifying residential interest, but take that percentage to be 100% if it would otherwise be higher. • Step 3 Subtract the percentage given by step 2 from the percentage given by step 1, but take the result to be 0% if it would oth
- alternative finance arrangement
means an arrangement of a kind mentioned in section 71A(1) or 73(1);
- alternative finance arrangements
has the same meaning as in Part 6 of CTA 2009 (see section 501(2) of that Act);
- an advantage in relation to apprenticeship levy
includes a reference to—
- an amount of insignificant value
means an amount of value which does not exceed £1,000. 4 For the purposes of this Schedule, if at any time in the period— a beginning one year before the shares are issued, and b expiring at the end of the issue date, arrangements are in existence which provide for the investor to receive or to be entitled to receive, at any time in the period of restriction, any value from the company that issued the shares, no amount of value received by the investor is to be treated as a receipt of insignificant value. 5 In sub-paragraph (4)— a any reference to the investor includes a reference to any person who, at any time in the period of restriction, is an associate of the investor (whether or not that person is such an associate at the material time), and b the reference to the company includes a reference to any person who, at any time in the period of restriction, is connected with the company (whether or not that person is so connected at the material time). 4 1 Where— a by reason of a receipt of value within sub-paragraph (1) (other than paragraph (b)) or sub-paragraph (3) of paragraph 2 (“the original value”), any shares would, in the absence of this
- apprenticeship levy return
means a return under regulations under section 105(4).
- appropriate proportion
means an appropriate proportion having regard to the subject-matter of the relevant transaction and what is held by the purchaser at the time it ceases to be a property AIF. 6 1 Where PAIF seeding relief has been allowed in respect of a transaction, and the portfolio test is not met immediately before the end of the seeding period, the relief is withdrawn and tax is chargeable in accordance with sub-paragraph (2).
- aqua methanol
means a liquid fuel which meets each of the following conditions— a the amount of water it contains is not less than 4.7 per cent and not more than 5.3 per cent by volume, b the amount of methanol it contains is not less than 96 per cent by volume of the remainder of the substance, and c at a temperature of 15°C and under a pressure of 1013.25 millibars, it has a density of not less than 0.81 g/ml and not more than 0.82 g/ml.”
- arrangement
(except in the phrase “double taxation arrangements”) 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
has the same meaning as in TCGA 1992 (but also includes currency in sterling);
- asset-based income tax
has the meaning given in paragraph 2(7);
- assets
has the meaning given in section 21(1) of the 1992 Act, but also includes sterling. 106G 1 A person guilty of an offence under section 106B, 106C or 106D is liable on summary conviction— a in England and Wales, to a fine or to imprisonment for a term not exceeding 51 weeks or to both, and b in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale or to imprisonment for a term not exceeding 6 months or to both. 2 In relation to an offence committed before the coming into force of section 281(5) of the Criminal Justice Act 2003, the reference in subsection (1)(a) to 51 weeks is to be read as a reference to 6 months. 106H 1 This section makes provision abo
- associate
has the meaning that would be given by section 448 of CTA 2010 if in that section “relative” did not include a brother or sister;
- associated payment
means a payment or quasi-payment— a in relation to which the financial trader is the payer or a payee, and b that is made under, or in connection with, the underlying instrument or an arrangement that relates to the underlying instrument. 6 Condition C is that— a if the underlying return were to arise, and be paid directly, to the payee or payees in relation to the substitute payment, neither Chapter 3 (hybrid and other mismatches from financial instruments) nor any equivalent provision under the law of a territory outside the United Kingdom would apply, and b the hybrid transfer arrangement under, or in connection with, which the substitute payment is made is not a structured arrangement (within the meaning given by section 259DA(7) and (8)). 259DF 1 This section applies where the payer is within the charge to corporation tax for the payment period. 2 For corporation tax purposes, the relevant deduction that may be deducted from the payer's income for the payment period is reduced by an amount equal to the hybrid transfer deduction/non-inclusion mismatch mentioned in section 259DA(5). 259DG 1 This section applies in relation to a payee where— a the payee is wi
- attributable
means attributable on a just and reasonable basis;
- authorised plan provider
means a person authorised under the Financial Services and Markets Act 2000 to carry on in the United Kingdom the regulated activity specified in article 63B(1) of the Regulated Activities Order (entering into regulated home reversion plan as plan provider);
- avoidance-related rule
means a rule in Category 1 or 2. 2 A rule is in Category 1 if— a it refers (in whatever terms) to the purpose or main purpose or purposes of a transaction, arrangements or any other action or matter, and b to whether or not the purpose in question is or involves the avoidance of tax or the obtaining of any advantage in relation to tax (however described). 3 A rule is also in Category 1 if it refers (in whatever terms) to— a expectations as to what are, or may be, the expected benefits of a transaction, arrangements or any other action or matter, and b whether or not the avoidance of tax or the obtaining of any advantage in relation to tax (however described) is such a benefit.
- Balancing day
means a day which is neither— a a residential property chargeable day, nor b an ATED chargeable day (as defined in paragraph 3 of Schedule 4ZZA). 4 The balancing gain or loss on the disposal is equal to the balancing fraction of the amount of the gain or (as the case may be) loss determined under Step 1 of paragraph 10(2). 5 The “balancing fraction” is— where— “BD” is the number of balancing days in the relevant ownership period;
- benefit cost
has the same meaning as in section 323A. 323C 1 The Treasury may by regulations amend section 323A so as to alter the conditions which must be met for the exemption conferred by section 323A(1) to apply. 2 Regulations under subsection (1) may include any amendment of section 323B that is appropriate in consequence of an amendment made under subsection (1). 3 The Treasury must not make regulations under subsection (1) unless a draft of the regulations has been laid before and approved by a resolution of the House of Commons.”
- bound arrangements opinion notice
means a written notice which— a sets out a report prepared by HMRC of any opinion of the GAAR Advisory Panel about the counteracted arrangements (see paragraph 2(1)), b explains the person's right to make representations falling within sub-paragraph (3), and c sets out the period in which those representations may be made. 3 A person who is given a pooled arrangements opinion notice or a bound arrangements opinion notice has 30 days beginning with the day on which the notice is given to make representations in any of the following categories— a representations that no tax advantage has arisen to the person from the arrangements to which the notice relates;
- broadcast
means broadcast by any means (including television, radio or the internet);
- carried interest
has the same meaning as in section 809EZB (see sections 809EZC and 809EZD);
- carried interest gains
means— a gains treated as accruing under section 103KA(2) or (3), and b gains accruing to an individual as a result of carried interest arising to the individual where— i the individual performs investment management services directly or indirectly in respect of an investment scheme under arrangements not involving a partnership, ii the carried interest arises to the individual under the arrangements, and iii the carried interest does not constitute a co-investment repayment or return. 13 For the purposes of subsection (12)(b)— a “carried interest”, in relation to any arrangements, has the same meaning as in section 809EZB of ITA 2007 (see sections 809EZC and 809EZD of that Act);
- CCRST
means the total of the chargeable consideration for all relevant seeding transactions;
- chargeable interest
has the same meaning as in Part 3 of the Finance Act 2013 (annual tax on enveloped dwellings) (see section 107 of that Act);
- chargeable use
means use— a as fuel for any engine, motor or other machinery, or b as an additive or extender in any substance so used. 3 The rate of duty under this section is— a in the case of a chargeable use within subsection (2)(a), £0.079 a litre;
- charity
means—
- Child
means a person under the age of 18. 13 1 This paragraph applies in relation to a land transaction if— a the main subject-matter of the transaction consists of a major interest in one or more dwellings, b the purchaser (or one of them) is acting as trustee of a settlement, c that purchaser is an individual, and d under the terms of the settlement a beneficiary is not entitled to— i occupy the dwelling or dwellings for life, or ii income earned in respect of the dwelling or dwellings. 2 In determining whether the transaction falls within paragraph 4 or paragraph 7— a if the purchaser mentioned in sub-paragraph (1) is the only purchaser, ignore paragraph (a) of those paragraphs, and b if that purchaser is not the only purchaser, ignore paragraph (a) of those paragraphs when having regard to that purchaser. 14 1 Sub-paragraph (2) applies in relation to a chargeable transaction whose subject-matter consists of a major interest in one or more dwellings if— a the purchaser (or one of them) is a partner in a partnership, but b the purchaser does not enter into the transaction for the purposes of the partnership. 2 For the purposes of determining whether the transaction falls within
- claim for relief
includes any election or other similar action which is in substance a claim for relief.
- close company
includes a company which would be a close company if it were a UK resident company;
- co-investment repayment or return
has the same meaning as in section 103KA.”
- co-ownership authorised contractual scheme
means a co-ownership scheme which is authorised for the purposes of FSMA 2000 by an authorisation order in force under section 261D(1) of that Act;
- co-ownership scheme
has the same meaning as in FSMA 2000 (see section 235A of that Act). 9 The Treasury may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a co-ownership authorised contractual scheme for the purposes of this Part.
- collective investment scheme
has the same meaning as in Chapter 5E (see section 809EZE);
- company
has the meaning given by section 101(18);
- company tax return
has the same meaning as in Schedule 18 to FA 1998 (see paragraph 3(1) of that Schedule);
- concurrent warning period
means a warning period which at some time ran concurrently with the restricted period.
- conduct
includes a failure to act.
- connected company
means a company which at any time in the relevant period is connected with the issuing company (and it does not matter for this purpose whether that time is a time when the person in question is an officer or employee of either company);
- contract
includes any agreement;
- contract for an off-plan purchase
means a contract for the acquisition of land consisting of, or including, a building or part of a building that is to be constructed or adapted for use as a dwelling;
- contract for differences
has the same meaning as in Part 7 of CTA 2009 (see section 582 of that Act);
- contract settlement
means an agreement in connection with a person's liability to make a payment to the Commissioners under or by virtue of an enactment;
- contribution
means any kind of contribution, including, for example— a the provision of professional or other services, or b a financial contribution (including the assumption of a risk). 9 For the purposes of this section R is “associated” with P if— a R is connected with P by virtue of any of subsections (2) to (4) of section 993 (read in accordance with section 994), or b R is related to P (see section 517U). 10 In this section “the project” means all activities carried out for any of the following purposes— a the purposes of dealing in or developing the land, and b any other purposes mentioned in Conditions A to D in section 517B. 517I For the purposes of this Part, the profit or gain (if any) from a disposal of any property is to be calculated according to the principles applicable for calculating the profits of a trade under Part 2 of ITTOIA 2005, subject to any modifications that may be appropriate (and for this purpose the same rules are to apply in calculating losses from a disposal as apply in calculating profits). 517J Any apportionment (whether of expenditure, consideration or any other amount) that is required to be made for the purposes of this Part is to be made on
- control
has the same meaning as in Part 10 of CTA 2010 (see section 450 of that Act). 10 There is further related provision in section 1217RL (tax avoidance arrangements). 1217RB 1 The “EEA expenditure condition” is that at least 25% of the core expenditure on the production of the concert or concert series incurred by the company is EEA expenditure. 2 In this Part “EEA expenditure” means expenditure on goods or services that are provided from within the European Economic Area. 3 Any apportionment of expenditure as between EEA and non-EEA expenditure for the purposes of this Part is to be made on a just and reasonable basis. 4 The Treasury may by regulations— a amend the percentage specified in subsection (1);
- control group
has the meaning given by section 259NB;
- control period
means the period of 3 years beginning with the day following the last day of the seeding period;
- Controlled activity
means any activity involving raw tobacco. 8L 1 A person may not carry on a controlled activity otherwise than in accordance with an approval given by the Commissioners under this section. 2 The Commissioners may approve a person to carry on a controlled activity only if satisfied that— a the person is a fit and proper person to carry on the activity, and b the activity will not be carried on for the purpose of, or with a view to, the fraudulent evasion of the duty of excise charged on tobacco products under section 2(1). 3 An approval may— a specify the period of approval, and b be subject to conditions or restrictions. 4 The Commissioners may at any time for reasonable cause revoke or vary the terms of an approval. 8M The Commissioners may, by or under regulations, make provision— a regulating the approval of persons under section 8L, b about the form, manner and content of an application for approval, c specifying conditions or restrictions to which an approval is subject, d regulating the variation or revocation of an approval, or of any condition or restriction to which an approval is subject, and e about the surrender or transfer of an approval. 8N 1 The
- controlling equity stake fund
means an investment scheme— a which is not a venture capital fund or significant equity stake fund, and b in relation to which the condition in subsection (4) is met. 4 The condition is that when the scheme starts to invest it is reasonable to suppose that, over the investing life of the scheme— a more than 50% of the total value invested for the purposes of the scheme will be invested in investments which are controlling interests in trading companies or holding companies of trading groups, and b more than 50% of the total value invested for the purposes of the scheme will be invested in investments which are held for 40 months or more. 5 In determining whether subsection (4)(b) is met in relation to an investment scheme, apply the rule in subsection (1) to the scheme. 6 For the purposes of this section, in determining whether a controlling equity stake fund has a controlling interest or an interest of a particular percentage in a company, any share capital of the company which is held for the purposes of an associated investment scheme is to be regarded as held for the purposes of the controlling equity stake fund. 809FZN 1 Where a real estate fund
- controlling interest
has the meaning given in subsection (3);
- controlling member
has the same meaning as in Schedule 36 (partnerships). 5 In this paragraph “managing partner”, in relation to a partnership, means the member of the partnership who directs, or is on a day-to-day level in control of, the management of the business of the partnership. 20 1 A relevant body (“RB”) is treated as meeting a section 237A condition at the section 237A(2) relevant time if— a that condition was met by a person (“C”) at a time when— i C was carrying on a business as a promoter, or ii RB was carrying on a business as a promoter and C controlled RB, and b RB is controlled by C at the section 237A(2) relevant time. 2 Sub-paragraph (1) does not apply if C is an individual. 3 For the purposes of determining whether the requirements of sub-paragraph (1) are met by reason of meeting the requirement in sub-paragraph (1)(a)(i), it does not matter whether RB existed at the time when C met the section 237A condition. 21 1 A person other than an individual is treated as meeting a section 237A condition at the section 237A(2) relevant time if— a a relevant body (“A”) met the condition at a time when A was controlled by the person, and b at the time mentioned in paragr
- convicted of the offence
means convicted of the full offence (and not for example of an attempt), and
- core expenditure
has the meaning given by section 1217RC;
- corporation tax credit
means— i an R&D tax credit under Chapter 2 or 7 of Part 13 of CTA 2009, ii an R&D expenditure credit under Chapter 6A of Part 3 of CTA 2009, iii a land remediation tax credit or life assurance company tax credit under Chapter 3 or 4 respectively of Part 14 of CTA 2009, iv a film tax credit under Chapter 3 of Part 15 of CTA 2009, v a television tax credit under Chapter 3 of Part 15A of CTA 2009, vi a video game tax credit under Chapter 3 of Part 15B of CTA 2009, vii a theatre tax credit under section 1217K of CTA 2009, viii an orchestra tax credit under Chapter 3 of Part 15D of CTA 2009, or ix a first-year tax credit under Schedule A1 to CAA 2001;
- corresponding NICs purposes
means the purposes of any provision of regulations under section 132A of SSAA 1992. 30B 1 Schedule 34A (promoters of tax avoidance schemes: defeated arrangements) has effect with the following modifications. 2 References to an assessment (or an assessment to tax) include a NICs decision relating to a person's liability for relevant contributions. 3 References to adjustments include a payment in respect of a liability to pay relevant contributions (and the definition of “adjustments” in paragraph 24 accordingly has effect as if such payments were included in it). 4 In paragraph 9(3) the reference to an enquiry into a return includes a relevant contributions dispute (as defined in paragraph 6 of this Schedule). 5 In paragraph 28(3)— a paragraph (a) includes a reference to a decision having been made for corresponding NICs purposes that the person is to be deemed not to have failed to comply with the provision concerned as the person had a reasonable excuse for not doing the thing required to be done, and b the reference in paragraph (c) to a determination is to be read accordingly.
- corresponding provision
means provision which corresponds to provision made by regulations under the Contributions and Benefits Act for secondary Class 1 contributions in respect of any earnings to be recovered from a person other than the secondary contributor.
- corresponding scheme
means— (a) a qualifying non-UK pension scheme (see section 271A below), or (b) a section 615(3) scheme that is not a registered pension scheme;
- corresponding tax advantage
means a tax advantage corresponding to any tax advantage the counteraction of which contributed to the relevant defeat mentioned in that paragraph. 10 For the purposes of this section a court or tribunal “upholds” a tax advantage if— a the court or tribunal makes a ruling to the effect that no part of the tax advantage is to be counteracted, and b that judicial ruling is final. 11 In this section references to “counteraction” include anything referred to as a counteraction in any of Conditions A to F in paragraphs 11 to 16 of Schedule 34A.”
- counteraction notice
means a notice such as is mentioned in sub-paragraph (2) of paragraph 12 of Schedule 43 or sub-paragraph (3) of paragraph 8 of Schedule 43B (notice of final decision to counteract). 3 1 The decision whether or not to give R a pooling notice or notice of binding must be taken, and any notice must be given, as soon as is reasonably practicable after HMRC becomes aware of the relevant facts. 2 A pooling notice or notice of binding must— a specify the tax arrangements in relation to which the notice is given and the tax advantage, b explain why the officer considers R's arrangements to be equivalent to the lead arrangements or the counteracted arrangements (as the case may be), c explain why the officer considers that a tax advantage has arisen to R from tax arrangements that are abusive, d set out the counteraction that the officer considers ought to be taken, and e explain the effect of— i paragraphs 4 to 10, ii subsection (9) of section 209, and iii section 212A. 3 A pooling notice or notice of binding may set out steps that R may (subject to subsection (9) of section 209) take to avoid the proposed counteraction. 4 1 If a person to whom a pooling notice or no
- 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. 259D 1 This Chapter contains provision that counteracts deduction/non-inclusion mismatches that it is reasonable to suppose would otherwise arise from payments or quasi-payments as a consequence of hybrid transfer arrangements. 2 The Chapter counteracts mismatches where the payer or a payee is within the charge to corporation tax and does so by altering the corporation tax treatment of the payer or a payee. 3 Section 259DA contains the conditions that must be met for this Chapter to apply. 4 Section 259DB defines “hybrid transfer arrangement”. 5 Section 259DC defines “hybrid transfer deduction/non-inclusion mismatch” and provides how the amount of the mismatch is to be calculated. 6 Section 259DD contains definitions of certain terms used in section 259DC. 7 Section 259DE contains provision in connection with excluding mismatches from counteraction by the Chapter where they arise as a consequence of the tax treatment of a financial trader. 8 Section
- country-by-country report
has the meaning given by the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016.
- 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). 10 For the purposes of step 1 in subsection (3), section 259BC(3) applies for the purposes of determining the extent to which an amount of relevant income is brought into account in calculating chargeable profits as it applies for the purposes of determining the extent to which an amount of income is brought into account for the purposes of calculating taxable profits. 11 Subsection (12) applies for the purposes of step 1 in subsection (3), if— a the amount of income arising to C mentioned in subsection (2)— i is not all relevant income, and ii is only partly brought into account in calculating chargeable profits for the purposes of the CFC charge or a foreign CFC charge, and b accordingly, it falls to be determined whether, and to what extent, the relevant income is brought into account in calculating those profits for the purposes of the charge concerned. 12 The relevant income is to be taken to be brought into account (if at all) only to the extent that the total a
- current group member
means a company which is a member of the group concerned at the time when the warning notice mentioned in sub-paragraph (1) is given.
- default basic rate
means the rate of income tax of that name determined pursuant to section 6C, “default higher rate” means the rate of income tax of that name determined pursuant to section 6C,” ““savings additional rate” means the rate of income tax of that name determined pursuant to section 7A,” ““savings basic rate” means the rate of income tax of that name determined pursuant to section 7A, “savings higher rate” means the rate of income tax of that name determined pursuant to section 7A,”
- default higher rate
means the rate of income tax of that name determined pursuant to section 6C,” ““savings additional rate” means the rate of income tax of that name determined pursuant to section 7A,” ““savings basic rate” means the rate of income tax of that name determined pursuant to section 7A, “savings higher rate” means the rate of income tax of that name determined pursuant to section 7A,”
- defeat notice
means a single defeat notice or a double defeat notice. 8 A defeat notice must— a set out the dates on which the look-forward period for the notice begins and ends;
- derivative contract
has the same meaning as in Part 7 of CTA 2009 (but see below);
- designated
has the same meaning as for accounting purposes;
- designated HMRC officer
means an officer of Revenue and Customs who has been designated by the Commissioners for Her Majesty's Revenue and Customs for the purposes of this Part.
- determined
means determined under Schedule 1 to OTA 1975. 10 In this section any reference to expenditure which was incurred by a company in “leasing” an asset is to expenditure incurred by the company under an agreement under which the asset was leased to the company.”
- direct tax
means— i income tax, ii capital gains tax, iii corporation tax (including any amount chargeable as if it were corporation tax or treated as corporation tax), iv petroleum revenue tax, and v diverted profits tax;
- director
has the meaning given by section 67 of ITEPA;
- disclosable arrangements
means any of the following—
- discount
means the difference between the two amounts referred to in subsection (1)(b);
- disposal of a residential property interest
means— a a disposal of a UK residential property interest, or b a disposal of a non-UK residential property interest. 4 Schedule B1 gives the meaning in this Act of “disposal of a UK residential property interest”. 5 Schedule BA1 gives the meaning in this Act of “disposal of a non-UK residential property interest”. 6 See section 57C and Schedule 4ZZC for how to compute— a the residential property gain or loss accruing on the disposal of a residential property interest, and b the gain or loss accruing on the disposal of a residential property interest which is not a residential property gain or loss.”
- disposed of
(without more) means disposed of in the disposal concerned. 169VG 1 The rules referred to in section 169VE(3) are as follows;
- disqualifying payment
means any payment other than— a a payment or reimbursement of travelling or other expenses wholly, exclusively and necessarily incurred by the person concerned in the performance of his or her duties as a director, b any interest which represents no more than a reasonable commercial return on money lent to the issuing company or a related person, c any dividend or other distribution which does not exceed a normal return on the investment to which the dividend or distribution relates, 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 related person which does not exceed a reasonable and commercial rent for the property, or f any necessary and reasonable remuneration which is— i paid for qualifying services that are provided to the issuing company or a related person in the course of a trade or profession carried on wholly or partly in the United Kingdom, and ii taken into account in calculating for tax purposes the profits of that trade or profession. 3 In this section a “related person” means— a a connected company of which the person concerned is a dire
- domestic item
means an item for domestic use (such as furniture, furnishings, household appliances and kitchenware), and does not include anything that is a fixture. • “Fixture”— (a) means any plant or machinery that is so installed or otherwise fixed in or to a dwelling-house as to become, in law, part of that dwelling-house, and (b) includes any boiler or water-filled radiator installed in a dwelling-house as part of a space or water heating system. • “Plant or machinery” here has the same meaning as in Part 2 of CAA 2001. 15 In this section— • “the capital expenditure rule” means the rule in section 33 (capital expenditure), as applied by section 272;
- double defeat notice
means a notice under subsection (3);
- double taxation arrangements
means arrangements which have effect under section 2(1) of TIOPA 2010 (double taxation relief by agreement with territories outside the United Kingdom);
- dual inclusion income
means an amount that arises in connection with the arrangement mentioned in section 259EA(2) and 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. 10 A taxable period of an investor is “permitted” for the purposes of subsection (9) if— a the period begins before the end of 12 months after the end of the payment period, or b where the period begins after that— i a claim has been made for the period to be a permitted period in relation to the amount of ordinary income, and ii it is just and reasonable for the amount of ordinary income to arise for that taxable period rather than an earlier period. 259F 1 This Chapter contains provision that counteracts certain excessive deductions that arise in relation to transfers of money or money's worth made, or taken to be made, by a multinational company's permanent establishment in the United Kingdom to the company in the parent jurisdiction. 2 The Chapter counteracts such deductions by altering the corporation tax treatment of the company. 3 Sec
- dual territory double deduction
means an amount that can be deducted by a company both— a from income for the purposes of a tax charged under the law of one territory, and b from income for the purposes of a tax charged under the law of another territory. 3 A “PE deduction” is an amount that— a may (in substance) be deducted from a company's income for the purposes of calculating the company's taxable profits, for a taxable period, for the purposes of a tax that is charged on the company, under the law of a territory (“the PE jurisdiction”), by virtue of the company having a permanent establishment in that territory, and b is in respect of a transfer of money or money's worth, from the company in the PE jurisdiction to the company in another territory (“the parent jurisdiction”) in which it is resident for the purposes of a tax, that— i is actually made, or ii is (in substance) treated as being made for tax purposes. 4 A PE deduction is “excessive” so far as it exceeds the sum of— a any increases, resulting from the circumstances giving rise to the PE deduction, in the taxable profits of the company, for a permitted taxable period, for the purposes of a tax charged under the law
- dwelling
has the meaning given by — (a) paragraph 4 of Schedule B1, in relation to a disposal of a UK residential property interest;
- economic risk
means a risk which can be attributed to fluctuations in exchange rates between currencies over a period of time. 14 In this section “loan relationship” has the same meaning as in Part 5 (see section 302).”
- effective 51% subsidiary
has the meaning given by section 170(7) of TCGA 1992;
- electronic stored-value payment services
means services by means of which monetary value is stored electronically for the purpose of payments being made in respect of transactions to which the provider of those services is not a party. 13C 1 A person who— a provides services to enable or facilitate transactions between suppliers and their customers or clients (other than services provided solely to enable payments to be made), and b receives information about such transactions in the course of doing so, is a relevant data-holder. 2 In this paragraph “suppliers” means persons supplying goods or services in the course of business. 3 For the purposes of this paragraph, information about trans
- eligible beneficiary
has the meaning given by section 169VH(2);
- eligible benefits
means benefits in respect of which conditions A to D in section 323A are met. 4 The amount allocated to an employee of an employer in respect of a benefit provided to a person (“P”) who— a is a member of the employee's family or household, and b is not an employee of the employer, is the benefit cost of that benefit divided by the number of persons who meet the condition in subsection (5) and are members of P's family or household. 5 This condition is met if the person is— a a director or other office-holder of the employer, b an employee of the employer who is a member of the family or household of a person within paragraph (a), or c a former employee of the employer who
- employment
has the meaning given by section 4 of ITEPA 2003;
- employment intermediary
has the same meaning as in section 339A;
- enactment
includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978).
- engagement
means any such provision of service as is mentioned in subsection (1)(a);
- excluded debits
means— a the amount of any debits which are treated as expenses of a trade by virtue of— i section 297 of CTA 2009 (debits in respect of loan relationships), or ii section 573 of CTA 2009 (debits in respect of derivative contracts), b the amount of any additional deduction for an accounting period obtained by a company under Part 13 of CTA 2009 for expenditure on research and development in relation to a trade, c the amount of any additional deduction for an accounting period obtained by a company under Part 15A of CTA 2009 in respect of qualifying expenditure on a television programme, d the amount of any additional deduction for an accounting period obtained by a company under Part 15B of CTA 2009 in respect of qualifying expenditure on a video game, and e the amount of any additional deduction for an accounting period obtained by a company under Part 15C of CTA 2009 in respect of qualifying expenditure on a theatrical production. 357BIA 1 This section applies where a company enters into an arrangement with a person under which— a the person assigns to the company a qualifying IP right or grants or transfers to the company an exclusive licence in respect of a qu
- excluded income
means any income falling within either of the Heads in section 357BHB. 357BHB 1 For the purposes of this Part income falling within either 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 person
has the meaning given by section 2B(2). 8 1 This paragraph applies for the interpretation of this Part of this Schedule. 2 “The asset”, in relation to a relevant high value disposal, means the chargeable interest which (or a part of which) is the subject of that disposal. 3 “The disposed of interest”, in relation to a relevant high value disposal, means the asset or, if only part of the asset is the subject of the relevant high value disposal, that part of the asset. 4 A day is a “residential property chargeable day” in relation to a relevant high value disposal if— a it is a day on which the subject matter of the disposed of interest consists wholly or partly of a dwelling, but b it is not an ATED chargeable day (as defined in paragraph 3 of Schedule 4ZZA). 9 1 The residential property gain or loss accruing on the disposal of land is computed as follows. • Step 1 Determine in accordance with paragraphs 10 to 15 the amount of the residential property gain or loss accruing on each relevant high value disposal. • Step 2 Add together the amounts of any gains or losses determined under Step 1 (treating any amount which is a loss as a negative amount). 2 If the result
- excluded services
means services provided wholly in the client's home;
- excluded share
has the meaning given by section 169VB;
- exempt ABGH distribution
means a distribution which— a is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph A, B, G or H in section 1000(1), and b is exempt for the purposes of Part 9A of CTA 2009 (company distributions).”
- expenditure on the activities involved in producing the concert or concert series
includes expenditure on travel to and from a venue which is not a usual venue for concerts produced by the company. 3 But that reference does not include— a expenditure on any matters not directly involved with putting on the concert or concerts (for instance, financing, marketing, legal services or storage), b speculative expenditure on activities not involved with putting on the concert or concerts, and c expenditure on the actual performance or performances (for instance, payments to musicians for their performances in the concert or concert series). 1217RD 1 A company which qualifies for orchestra tax relief in relation to the production of a concert or concert series may claim an additional deduction in relation to the production. 2 A claim under subsection (1) is made with respect to an accounting period. 3 Where a company has made a claim, the company is entitled to make an additional deduction, in accordance with section 1217RE, in calculating the profit or loss of the separate orchestral trade for the accounting period concerned. 4 Where the company tax return in which a claim is made is fo
- external investment
means a non-land transaction in which the vendor is an external investor;
- external investor
means a person other than a person who has been a vendor in a transaction— (a) the effective date of which is on or before the date of the non-land transaction, and (b) in respect of which conditions A to C in paragraph 1 are met;
- 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 electromagnetic energy. 9 The Treasury may by regulations amend this section. 357BJB 1 For the purposes of this Part 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 acquisiti
- film
has the same meaning as in Part 15 (see section 1181). 1217PB 1 A company is the production company in relation to a concert if the company (acting otherwise than in partnership)— a is responsible for putting on the concert from the start of the production process to the finish, including employing or engaging the performers, b is actively engaged in decision-making in relation to the concert, c makes an effective creative, technical and artistic contribution to the concert, and d directly negotiates for, contracts for and pays for rights, goods and services in relation to the concert. 2 No more than one company can be the production company in relation to a concert. 3 If more than one company meets the conditions in subsection (1) in relation to a concert, the company that is most directly engaged in the activities mentioned in that subsection is the production company. 4 If no company meets the conditions in subsection (1), there is no production company in relation to the concert. 1217Q 1 Subsection (2) applies to a company in relation to a concert if— a the company qualifies for orchestra tax relief in relation to the production of the concert (see section 1217RA(2)), an
- 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 profit arising to the company from a loan relationship.
- financial institution
has the meaning it has in those sections (see section 73BA);
- financial instrument
means— a an arrangement profits or deficits arising from which would, on the assumption that the person to whom they arise is within the charge to corporation tax, fall to be brought into account for corporation tax purposes in accordance with Part 5 or 6 of CTA 2009 (loan relationships and relationships treated as loan relationships), b a contract profits or losses arising from which would, on the assumption that the person to whom they arise is within the charge to corporation tax, fall to be brought into account for corporation tax purposes in accordance with Part 7 of CTA 2009 (derivative contracts), c a type 1, type 2 or type 3 finance arrangement for the purposes of Chapter 2 of Part 16 of CTA 2010 (factoring of income etc: finance arrangements), d a share forming part of a company's issued share capital or any arrangement that provides a person with economic rights corresponding to those provided by holding such a share, or e anything else that is a financial instrument. 2 In subsection (1)(e) “financial instrument” has the meaning that it has for the purposes of UK generally accepted accounting practice. 3 But “financial instrument” does not include—
- five-year claim
means a claim under section 222A of ITTOIA 2005.”
- flawed
means flawed when considered in the light of the principles applied in proceedings for judicial review.
- follower notice
has the meaning given by paragraph 13(6);
- 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). 259BA 1 A reference in this Part to provision under the law of a territory outside the United Kingdom that is equivalent to— a this Part, or b a provision of this Part, is to be read in accordance with subsection (2). 2 The reference is to provision under the law of a territory outside the United Kingdom that it is reasonable to suppose— a is based on the Final Report on Neutralising the Effects of Hybrid Mismatch Arrangements published by the Organisation for Economic Cooperation and Development (“OECD”) on 5 October 2015 or any replacement or supplementary publication, and b has effect for the same, or similar, purposes to this Part or (as the case may be) the provision of this Part. 3 In paragraph (a) of subsection (2) “replacement or supplementary publication” means any document that is approved and published by the OECD in place of, or to update or supplement, the report mentioned in that paragraph (or any replacement of, or supplement to, it). 259BB 1 In this Part “
- foreign double taxation arrangement
means an arrangement made by two or more territories outside the United Kingdom with a view to affording relief from double taxation in relation to tax chargeable on income (with or without other tax relief);
- Foreign group
means a group whose head is a foreign relevant body.
- foreign tax
means a tax under the law of a country or territory outside the United Kingdom. 12 Section 1122 (meaning of “connected” persons) applies for the purposes of this section. 357BQ 1 The modifications of section 357BF referred to in section 357BO(1) are as follows. 2 Omit subsection (1). 3 In subsection (2)— a in Step 2— i before paragraph (a) insert— aa a sub-stream consisting of income properly attributable to old qualifying IP rights (“an old IP rights sub-stream”), ii in paragraph (a) before “qualifying IP right” insert “ new ”, iii in the words after paragraph (c) for “and (7)” substitute “ to (7E) ”, b in Step 6, for “relevant IP income sub-stream” substitute “ individual IP right sub-stream, each product sub-stream and each process sub-stream ”, and c for Step 7 substitute— Step 7 Add together— a the amount of any old IP rights sub-stream (following Steps 4 and 5), and b the amount of each of the individual IP right sub-streams, each of the product sub-streams and each of the process sub-streams (following Step 6). 4 In subsection (7) for paragraph (a) substitute— a it would not be reasonably practicable to apportion the income between— i individual IP rights sub-s
- full marginal rate
means the highest rate at which the tax that is chargeable on those taxable profits could be charged on taxable profits, of C for the taxable period, which include ordinary income that arises from, or in connection with, a financial instrument, and b “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). 10 For the purposes of step 1 in subsection (3), section 259BC(3) applies for the purposes of determining the extent to which an amount of relevant income is brought into account in calculating chargeable profits as it applies for the purposes of determining the extent to which an amount of income is brought into account for the purposes of calculating taxable profits. 11 Subsection (12) applies for the purposes of step 1 in subsection (3), if— a the amount of income arising to C mentioned in subsection (2)— i is not all relevant income, and ii is only partly brought into account in calculating chargeable profits for the purposes of the CFC charge or a foreign CFC charge, and b accordingly, it falls t
- fund of funds
means an investment scheme in relation to which the condition in subsection (6) is met. 6 The condition is that when the scheme starts to invest it is reasonable to suppose that over the investing life of the scheme— a substantially all of the total value invested for the purposes of the scheme will be invested in collective investment schemes of which the scheme holds less than 50% by value, b more than 50% of the total value invested for the purposes of the scheme will be invested in investments which are held for 40 months or more, and c more than 75% of the total value invested in the scheme will be invested by external investors. 7 In determining whether subsection (6)(b) is met in relation to an investment scheme, apply the rule in subsection (3) to the scheme. 8 In this section, “significant investment”, in relation to a collective investment scheme, means— a an investment of a least £1 million in the scheme, or b an investment of at least 5% of the total amounts raised or to be raised from external investors in the scheme. 9 In this section, “qualifying investment” means an investment made for the purposes of an investment scheme in a collective investment s
- future
has the same meaning as in Part 7 of CTA 2009 (see section 581 of that Act);
- Group
means two or more relevant bodies which together constitute—
- group accounts
means accounts prepared under— a section 399 of the Companies Act 2006, or b any corresponding provision of the law of a territory outside the United Kingdom. 4 The participation condition is met in relation to A and B (“the relevant parties”) on a day if, within the period of 6 months beginning with the day— a one of the relevant parties directly or indirectly participates in the management, control or capital of the other, or b the same person or persons directly or indirectly participate in the management, control or capital of each of the relevant parties. 5 For the interpretation of subsection (4), see sections 157(1), 158(4), 159(1) and 160(1) (which have the effect that references in subsection (4) to direct or indirect participation are to be read in accordance with provisions of Chapter 2 of Part 4). 6 The 50% investment condition is met in relation to A and B if— a A has a 50% investment in B, or b a third person has a 50% investment in each of A and B. 7 Section 259ND applies for the purposes of determining whether a person has a “50% investment” in another person. 259NC 1 Two persons are “related” on any day that— a they are in the same control group (s
- group company
means a company which is a member of the same group of companies as the person mentioned in paragraph (a) for the purposes mentioned in paragraph 1(2) of Schedule 7 (group relief). 3 PAIF seeding relief is not available if at the effective date of the transaction there are arrangements in existence by virtue of which, at that or some later time, a person who is the vendor makes or could make a disposal of units in the property AIF which is or could be a relevant disposal (see paragraph 7). 4 PAIF seeding relief is not available if the transaction— a is not effected for bona fide commercial reasons, or b forms part of arrangements of which the main purpose, or one of the main purposes, is the avoidance of liability to tax.
- group other than an MNE group
means a group consisting of two or more relevant bodies— which is not an MNE Group.
- group turnover
means the aggregate turnover of the UK companies that are members of the group at the end of the previous financial year, and
- HMRC
means Her Majesty's Revenue and Customs;
- hybrid entity
has the meaning given by section 259BE;
- hybrid transfer arrangement
has the meaning given by section 259DB. 259BE 1 For the purposes of this Part, an entity is “hybrid” if it meets conditions A and B. 2 Condition A is that the entity is regarded as being a person for tax purposes under the law of any territory. 3 Condition B is that— a some or all of the entity's income or profits are treated (or would be if there were any) for the purposes of a tax charged under the law of any territory, as the income or profits of a person or persons other than the person mentioned in subsection (2), or b under the law of a territory other than the one mentioned in subsection (2), the entity is not regarded as a distinct and separate person to an entity or entities that are distinct and separate persons under the law of the territory mentioned in that subsection. 4 For the purposes of this Part— a where subsection (3)(a) applies, a person who is treated as having the income or profits of the hybrid entity is an “investor” in it, b where subsection (3)(b) applies, an entity that— i is regarded as a distinct and separate person to the hybrid entity under the law of the territory mentioned in subsection (2), but ii is not regarded as a
- ICTA
means the Income and Corporation Taxes Act 1988;
- income of an individual from investments under a plan
includes— a income (of any person) from administration-period investments under a plan, and b income (of any person) from the estate of a deceased person (“D”) where the whole or any part of the income of D's personal representatives is income from administration-period investments under a plan. 2 For the purposes of sections 694(3)(a) and (4) and 695(1) “individual”, in relation to investments that are administration-period investments, includes— a the personal representatives of the deceased individual concerned, and b any other person on whose directions plan managers agree to act in relation to the investments. 3 In sections 699 and
- independent person
means a person who is not (or where the controller is a committee, a committee none of whose members are)— a S or a person connected with S, b an employer or former employer of S or a person connected with an employer or former employer of S, or c a person acting for or on behalf of a person mentioned in paragraph (a) or (b). 9 If the first relevant event or activity in a series took place before 6 April 2017, subsection (4)(c) has effect as if it referred to the year beginning with 6 April 2017. 10 Section 993 of ITA 2007 (meaning of “connected” persons) has effect for the purposes of this section. 11 Terms used in this section and section 226E have the same meaning as
- indirect tax
means any of the following— • insurance premium tax • general betting duty • pool betting duty • remote gaming duty • machine games duty • gaming duty • lottery duty •... • air passenger duty • hydrocarbon oils duty • tobacco products duty • duties on spirits, beer, wine, made-wine and cider • soft drinks industry levy • aggregates levy • landfill tax • plastic packaging tax • climate change levy • carbon border adjustment mechanism • customs duties.
- information
includes—
- inheritance
means the acquisition of an interest in or towards satisfaction of an entitlement under or in relation to the will of a deceased person, or on the intestacy of a deceased person. 17 1 In the provisions of this Schedule specified in sub-paragraph (3), references to a “dwelling” include references to a dwelling situated in a country or territory outside England, Wales and Northern Ireland. 2 In the application of those provisions in relation to a dwelling situated in a country or territory outside England, Wales and Northern Ireland— a references to a “major interest” in the dwelling are to an equivalent interest in the dwelling under the law of that country or territory, b references to persons being beneficially entitled as joint tenants, tenants in common or coparceners to an interest in the dwelling are to persons having an equivalent entitlement to the interest in the dwelling under the law of that country or territory, c references to a “land transaction” in relation to the dwelling are to the acquisition of an interest in the dwelling under the law of that country or territory, d references to the “effective date” of a land transaction in relation to the dwelling
- intellectual property
has the same meaning as in section 579;
- intellectual property royalty payment
means a payment referred to in section 906(2)(a) or (3)(a);
- interest in non-UK land
means— a an estate, interest, right or power in or over land outside the United Kingdom, or b the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power, other than an excluded interest. 2 The following are excluded interests— a any security interest;
- interest rate contract
means— (a) a derivative contract whose underlying subject-matter is, or includes, interest rates, or (b) a swap contract in which payments fall to be made by reference to a rate of interest;
- interim accounting period
means any accounting period that— a is one in which the company carries on a separate orchestral trade, and b precedes the accounting period in which it ceases to do so. 2 A company is not entitled to orchestra tax relief for an interim accounting period unless— a its company tax return for the period states the amount of planned core expenditure on the production of the concert or concert series that is EEA expenditure (see section 1217RB(2)), and b that amount is such as to indicate that the EEA expenditure condition (see section 1217RB) will be met in relation to the production.
- investigation period
has the meaning given in paragraph 6(4);
- investment
includes any asset, right or interest;
- investment scheme
has the same meaning as in Chapter 5E (see section 809EZA(6));
- investor
includes a person entitled to an exemption given by investment plan regulations by virtue of subsection (1) of this section. 4 Investments are “administration-period investments” if— a an individual dies, and b immediately before the individual's death— i the investments were held under a plan, ii the individual was entitled to the income from the investments, and iii as a result of investment plan regulations, the individual's income from investments under the plan was exempt from income tax (either wholly or to an extent specified in the regulations). 5 Investments are also “administration-period investments” if (directly or indirectly) they represent investments that are admini
- investor jurisdiction
has the meaning given by section 259BE(4);
- irrecoverable
means irrecoverable other than by legal proceedings or by the exercise of any right granted by way of security for the loan. 412B 1 A person (“L”) may make a claim for relief under this section if— a L is entitled to relief under section 412A in respect of any outstanding amount of the principal of a loan (“the relevant loan”), but b in the tax year in relation to which L is entitled to that relief (“the relevant year”)— i L has no income of the kind mentioned in section 412A(4) from which to deduct the outstanding amount, or ii L has insufficient income of that kind to enable the outstanding amount to be deducted in full under that section. 2 The claim is for the outstanding amount or (in a case within subsection (1)(b)(ii)) the part of the outstanding amount not capable of being deducted under section 412A to be deducted under this section in calculating L's net income for the relevant year. 3 The deduction under this section is to be made only from income arising from the payment to L of interest on loans within subsection (4) or (5). 4 A loan is within this subsection if— a it is a peer-to-peer loan made by L, and b it was made through an operator who is not the
- land
includes— a buildings and structures, b any estate, interest or right in or over land, and c land under the sea or otherwise covered by water. 4 In this section— • “disposal” is to be interpreted in accordance with section 517R of ITA 2007;
- late payment interest rate
means the rate provided for in regulations made by the Treasury under section 103(1) of FA 2009;
- lease of plant or machinery
means any kind of agreement or arrangement under which sums are paid for the use of, or otherwise in respect of, plant or machinery;
- lending income
means income of a kind mentioned in section 412C(3);
- lessee
means the person who is entitled to the use of the dwelling-house under a lease or other arrangement under which a sum is payable in respect of the use of the dwelling-house;
- lesser adjustments
means adjustments which assume a smaller tax advantage than was assumed in the provisional counteraction notice. 209C 1 This section applies if the action in section 209B(4)(c) (notice to taxpayer of proposed counteraction of tax advantage) is taken. 2 If the matter is not referred to the GAAR Advisory Panel, the notified adjustments are to be treated as cancelled with effect from the date of the designated HMRC officer's decision under paragraph 6(2) of Schedule 43 unless the notice under paragraph 6(3) of Schedule 43 states that the adjustments are not to be treated as cancelled under this section. 3 A notice under paragraph 6(3) of Schedule 43 may not contain the stat
- liability to a penalty
means a liability under paragraph 18, 21 or 24 (including paragraph 24 as applied to a qualifying UK partnership), and • “penalty” means a penalty under any of those paragraphs.
- limited partnership
means— (a) a limited partnership registered under the Limited Partnerships Act 1907, (b) a limited liability partnership formed under the Limited Liability Partnerships Act 2000 or the Limited Liability Partnerships Act (Northern Ireland) 2002 (c.12 (N.I.)), or (c) a firm or entity of a similar character to any of those mentioned in paragraph (a) or (b) formed under the law of a country or territory outside the United Kingdom;
- limiting or deterrent effect
means an effect which— a limits investors to a limited number of specific persons or specific groups of connected persons, or b deters a reasonable investor falling within one of (what are specified as) the intended categories of investor from investing in the scheme. 6 Condition C is that— a units in the scheme are marketed and made available— i sufficiently widely to reach the intended categories of investors, and ii in a manner appropriate to attract those categories of investors, and b a person who falls within one of the intended categories of investors can, upon request to the operator of the scheme, obtain information about the scheme and acquire units in it. 7 A scheme is not regarded as failing to meet condition C at any time by reason of the scheme's having, at that time, no capacity to receive additional investments, unless— a the capacity of the scheme to receive investments in it is fixed by the scheme documents (or otherwise), and b a pre-determined number of specific persons or specific groups of connected persons make investments in the scheme which collectively exhaust all, or substantially all, of that capacity. 8 A co-ownership auth
- Loan
means a loan of money which— a is made on genuine commercial terms, and b is not part of a scheme or arrangement the main purpose or one of the main purposes of which is to obtain a tax advantage (within the meaning given by section 208 of the FA 2013). 3 A loan is a “peer-to-peer loan” only if it meets— a Condition A or B, and b Condition C. 4 Condition A is that the person who made the loan is— a an individual, b a partnership which consists of— i two or three persons, and ii at least one person who is not a body corporate, or c an unincorporated body of persons which— i is not a partnership, and ii consists of at least one person who is not a body corporate. 5 Condition B is that—
- loan relationship
has the meaning given by section 302 of CTA 2009 (but see below);
- loss relief
means any relief under Part 4 of ITA 2007 or Part 4 or 5 of CTA 2010.
- managed service company
means a company which— (a) is a managed service company within the meaning given by section 61B, or (b) would be such a company disregarding subsection (1)(c) of that section.”
- market value
has the same meaning as in TCGA 1992 (see section 272 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. 357BKB 1 The actual marketing royalty for a relevant IP income sub-stream is 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 have been allocated to the sub-stream at Step 3 in section 357BF(2). 2 In this section “relevant marketing asset” has the same meaning as in section 357BKA. 357BL 1 S
- misused relief
means the relief mentioned in sub-paragraph (5), and
- Mixed income
means the proceeds of sale where an item falling within subsection (2) of section 357BH 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 357BH(2), b the grant of any right falling within paragraph (a), (b) or (c) of section 357BH(6), c a sale or disposal falling within section 357BH(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 357BH(2), b the grant of any right falling within paragraph (a), (b) or (c) of section 357BH(6), or c a sale or disposal falling within section 357BH(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 apportionment is prop
- money
includes money's worth and “payment” includes the transfer of money's worth or the provision of any benefit, • “prescribed person” means a person prescribed in regulations made by the Treasury. 10 Section 993 of ITA 2007 (meaning of “connected” persons) has effect for the purposes of this section.”
- money purchase arrangement
has the same meaning as in Part 4 of the Finance Act 2004 (see section 152 of that Act);
- national insurance contributions
means contributions under Part 1 of the Social Security Contributions and Benefits Act 1992 or Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
- net income
has the meaning given by section 23 of ITA 2007 (see Step 2 of that section);
- new holding
means— a the holding that immediately after the reorganisation is (in relation to the original shares) the new holding within the meaning of section 126, or b where the new holding within the meaning of section 126 consists of two or more actual holdings, any of those actual holdings. 3 Subsections (4) and (5) apply for the purposes of determining (for any purpose of this Chapter) the status of shares that immediately before the disposal mentioned in subsection (1)(d) are in the new holding mentioned there (“the new holding concerned”). 4 Where a number of the original shares were— a subscribed for by the qualifying person, b issued on a particular date (“the relevant issue date”), and c held continuously by that person for a particular period ending immediately before the reorganisation (“the period concerned”), the following assumption is to be made. 5 That assumption is that an appropriate number of the new shares were— a subscribed for by the qualifying person, b issued on the relevant issue date, and c had by the time immediately after the reorganisation already been held continuously by that person for the period concerned. 6 In subsections (4) and (5)— • “the a
- no gain/no loss provisions
has the meaning given by section 288(3A) of the 1992 Act;
- non-CD distribution
means any distribution other than one which is a distribution for the purposes of the Corporation Tax Acts only because it falls within paragraph C or D in section 1000(1) (redeemable share capital or security issued as bonus in respect of shares in, or securities of, the company).”
- non-land transaction
means a transaction by which the property AIF acquires assets which do not consist of or include a chargeable interest. 4 1 This paragraph restricts the availability of PAIF seeding relief for a transaction in respect of which conditions A to D in paragraph 1 are met. 2 PAIF seeding relief is not available unless, at the effective date of the transaction, the property AIF has arrangements in place requiring a person who is the vendor to notify the authorised corporate director of the property AIF of the following matters— a the identity of the beneficial owner of the units in the property AIF received in consideration of the transaction, and b any disposal of units in the property AIF on or after the effective date of that transaction by that owner (or, where that person is a company, by a group company) which is or could be a relevant disposal (see paragraph 7).
- non-qualifying income
includes income on which tax treated as paid)—
- non-qualifying individual
has the meaning given by paragraph 9 (in relation to a property AIF) and paragraph 19 (in relation to a co-ownership authorised contractual scheme);
- non-qualifying territory
has the meaning given in section 173 of TIOPA 2010;
- non-taxing non-qualifying territory
means a non-qualifying territory under whose law companies are not liable to tax by reason of domicile, residence or place of management;
- Northern Ireland expenditure
means expenditure incurred in a trade to the extent that the expenditure forms part of the Northern Ireland profits or Northern Ireland losses of the trade;
- notifiable arrangements
has the same meaning as in Part 7 of FA 2004.
- notional gain
means the gain, if any, that would accrue to P if the original EES share were disposed of on the reorganisation for consideration of an amount equal to the market value of the share. 1D Subsections (1E) to (1G) apply where a notional gain would accrue to P on the disposal of the original EES share. 1E Where the whole of the notional gain would be a chargeable gain by virtue of section 236B(1A), the relevant amount is the amount that would secure that on the disposal neither a gain nor a loss would accrue to P. 1F Where part (but not the whole) of the notional gain would be a chargeable gain by virtue of section 236B(1A), the relevant amount is the maximum amount, not exceedin
- Notional post-ATED gain or loss
means the gain or loss which would have accrued on the relevant high value disposal had P acquired the disposed of interest on 5 April of the relevant year for a consideration equal to its market value on that date (and see paragraph 15). 3 The “special fraction” is— where— “SD” is the number of residential property chargeable days in the relevant ownership period;
- Notional pre-ATED gain or loss
means the gain or loss which would have accrued on 5 April of the relevant year had the disposed of interest been disposed of for a consideration equal to the market value of the interest on that date. 3 The “special fraction” is— where— “SD” is the number of residential property chargeable days in the relevant ownership period;
- OECD
means the Organisation for Economic Co-operation and Development.
- office
has the meaning given by section 5(3) of ITEPA 2003;
- offshore fund
has the meaning given by section 355 of the Taxation (International and Other Provisions) Act 2010;
- offshore income, assets or activities
means— a income arising from a source in a territory outside the United Kingdom, b assets situated or held in a territory outside the United Kingdom, or c activities carried on wholly or mainly in a territory outside the United Kingdom. 5 In subsection (4), “assets” has the meaning given in section 21(1) of the 1992 Act, but also includes sterling. 106G 1 A person guilty of an offence under section 106B, 106C or 106D is liable on summary conviction— a in England and Wales, to a fine or to imprisonment for a term not exceeding 51 weeks or to both, and b in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale or to imprison
- offshore PLR
has the meaning given in paragraph 5;
- online marketplace
means a website, or any other means by which information is made available over the internet, through which persons other than the operator are able to offer goods for sale (whether or not the operator also does so);
- open-ended investment company
has the meaning given by section 236 of FSMA 2000;
- Operator
means a person who— a has permission under Part 4A of FISMA 2000 to carry on a regulated activity specified in Article 36H of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (operating an electronic system in relation to lending), or b has been granted equivalent permission under the law of a territory outside the United Kingdom that is within the European Economic Area. 3 A loan is “made through” an operator if the person who makes the loan and the recipient of the loan enter the agreement under which the loan is made at the invitation of the operator. 4 A right is “assigned through” an operator if the person who assigns the right and
- option
has the same meaning as in Part 7 of CTA 2009, disregarding section 580(2) of that Act;
- orchestral concert
means a concert by an orchestra, ensemble, group or band consisting wholly or mainly of instrumentalists who are the primary focus of the concert. 2 But a concert is not an orchestral concert if— a the main purpose, or one of the main purposes, of the concert is to advertise or promote any goods or services, b the concert is to consist of or include a competition or contest, or c the making of a relevant recording is the main object of the production company's activities in relation to the concert. 3 A recording of a concert is a “relevant recording” if the recording is made for the purpose of using it (or an edited version of it) in any of the following ways— a broadcast, at the time of the concert or later, to the general public;
- orchestral concert production company
means a company which, for the purposes of that Part, is the production company in relation to a concert (see section 1217PB).”
- 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”). 3 But an amount of income is not brought into account for those purposes to the extent that it is excluded, reduced or offset by any exemption, exclusion, relief or credit— a that applies specifically to all or part of the amount of income (as opposed to ordinary income generally), or b that arises as a result of, or otherwise in connection with, a payment or quasi-payment that gives rise to the amount of income. 4 If all the relevant tax charged on taxable profits is, or falls to be, refunded, none of the income brought into account in calculating those taxable profits is “ordinary income”. 5 If a proportion of the relevant tax charged on taxable profits is, or falls to be, refunded, the amount of any income brought into account in calculating those taxable profits that is “ordinary income” is proportionally reduced. 6 For the purposes of subsections (4) and (5) an amount of relevant tax is refunded if and to the extent that— a any repayment of relevant tax, or any payment in respect of a c
- ordinary trade debt
means any debt for goods or services supplied in the ordinary course of a trade or business where any credit given— a does not exceed six months, and b is not longer than that normally given to customers of the person carrying on the trade or business. 3 1 For the purposes of paragraph 1, the value received by the investor is— a in a case within paragraph 2(1)(a), (b) or (c), the amount received by the investor or, if greater, the market value of the share capital, securities or debt in question;
- original shareholder
means a person who, immediately before the transaction in securities (or the first of the transactions in securities), held any ordinary share capital of the close company. 5 For the purposes of this section, shares of or share capital in the close company which are held by a person controlled by an original shareholder, or by two or more original shareholders taken together, count as shares or share capital held by that original shareholder or those original shareholders.”
- other arrangements
means— a in relation to a notice under paragraph 8(2) of Schedule 43A to FA 2013, the referred arrangements (as defined in that paragraph);
- other tax evasion or non-compliance by Q
means conduct by Q that— but does not constitute offshore tax evasion or non-compliance.
- participator
has the meaning given by section 454 of CTA 2010. 9 For the purposes of this section, a person has at least a 5% interest in a company if— a at least 5% of the ordinary share capital of the company is held by the individual, and b at least 5% of the voting rights in the company are exercisable by the individual by virtue of that holding. 10 For the purposes of subsection (9) if an individual holds any shares in a company jointly or in common with one or more other persons, he or she is to be treated as sole holder of so many of them as is proportionate to the value of his or her share (and as able to exercise voting rights by virtue of that holding).”
- partnership
includes an entity established under the law of a country or territory outside the United Kingdom of a similar nature to a partnership;