- a decommissioning fund
means a fund which— a holds particular investments for the sole purpose of funding activities for, or in connection with, the decommissioning or other provision of public infrastructure assets, and b is prevented from using the proceeds of the investments, or the income arising from them, for any purpose other than the purpose mentioned in paragraph (a) or returning surplus funds. 5 In this section “decommissioning” includes demolishing and putting out of use. 449 1 For the purposes of this Chapter— • “balance sheet” means a balance sheet that is drawn up in accordance with generally accepted accounting practice, • “financial asset” has the same meaning as it has for accounting purposes, • “loan relationships or other financing arrangements” means— (a) loan relationships, (b) derivative contracts in relation to which the condition in section 387(4) is met (underlying subject matter to be interest rates etc), (c) finance leases, or (d) debt factoring or similar transactions, and • “the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964. 2 For the purposes of this Chapter ref
- a Northern Ireland additional deduction
means so much of a deduction under section 1218ZCE 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 exhibition trade. 357UT 1 This section applies where— a a company is entitled under section 1218ZCE of CTA 2009 to an additional deduction in calculating the profit or loss of the separate exhibition 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;
- a relevant interest restriction return
means an interest restriction return for a period of account in relation to which the accounting period is a relevant accounting period. 8 The time limit for amending a company tax return given by paragraph 15(4) of Schedule 18 to FA 1998 is subject to the time limits given by this paragraph. 70 1 If— a a company has delivered a company tax return for an accounting period, but b as a result of the submission of an interest restriction return, information contained in the company tax return is incorrect (for example, there is a change in the amount of profits on which corporation tax is chargeable), the company is treated as having amended its company tax return for the accounting period so as to correct the information. 2 If— a a notice of determination under paragraph 56 or 58 is given to a company in relation to an accounting period, and b the company has already delivered a company tax return for the period, the company is treated as having amended its company tax return to take account of the determination. 71 1 The Commissioners may by regulations— a make provision generally for the purposes of paragraph 70, and b make provision for oth
- a relevant lawyer
means a barrister, advocate, solicitor or other legal representative communications with whom may be the subject of a claim to legal professional privilege or, in Scotland, protected from disclosure in legal proceedings on the grounds of confidentiality of communication.
- a relevant party
means T or an enabling participant in the arrangements within the meaning given by paragraph 11.
- a worldwide group
means— a any entity which— i is a relevant entity (see section 474), and ii meets the first or second non-consolidation condition (see subsections (2) and (3)), and b each consolidated subsidiary (if any) of the entity mentioned in paragraph (a). 2 The first non-consolidation condition is that the entity— a is a member of an IAS group, and b is not a consolidated subsidiary of an entity that— i is a relevant entity, and ii itself meets the first non-consolidation condition. 3 The second non-consolidation condition is that the entity is not a member of an IAS group. 4 In this Part— a references to “a member” of a worldwide group are to an entity mentioned in subsection (1)(a) or (b);
- abusive tax arrangements
has the meaning given by paragraph 3;
- accounting body
means— (a) the International Accounting Standards Board (or successor body), or (b) the Accounting Standards Board (or successor body). 3 The regulations— a may make provision subject to an election or other specified circumstances, and b may make provision having effect in relation to any period beginning before the regulations are made if the change mentioned in subsection (1) is relevant to that period. 4 A statutory instrument containing regulations which are capable of increasing the liability of a company to corporation tax may not be made unless a draft of the instrument is laid before, and approved by a resolution of, the House of Commons. 498 Regulations under this
- accounting standard
includes any statement of practice, guidance or other similar document, and • “accounting body” means— (a) the International Accounting Standards Board (or successor body), or (b) the Accounting Standards Board (or successor body). 3 The regulations— a may make provision subject to an election or other specified circumstances, and b may make provision having effect in relation to any period beginning before the regulations are made if the change mentioned in subsection (1) is relevant to that period. 4 A statutory instrument containing regulations which are capable of increasing the liability of a company to corporation tax may not be made unless a draft of the instrume
- accounts-free period
means (subject to subsection (2)) any period— a which begins on or after 1 April 2017, b throughout which a worldwide group exists, and c in respect of no part of which are financial statements of the group— i drawn up by or on behalf of the ultimate parent, or ii treated as drawn up for the purposes of this section (whether under section 481, 482, 483 or 484 or any other enactment). 2 A period is not an “accounts-free period” if it forms part of an accounts-free period. 3 If an accounts-free period in relation to a worldwide group is 12 months or less, IAS financial statements of the worldwide group are treated for the purposes of this Part (apart from this section) as having been drawn up for the accounts-free period. 4 If an accounts-free period in relation to a worldwide group is more than 12 months, IAS financial statements of the worldwide group are treated for the purposes of this Part (apart from this section) as having been drawn up for each of the following periods— a the first period of 12 months falling within the accounts-free period;
- acts
includes failures to act and acts are “related to the employment” if the employee was acting— i in the employee's capacity as holder of the employment, or ii in any other capacity in which the employee was acting in the performance of the duties of the employment, b “giving evidence” includes making a formal or informal statement or answering questions, c “proceeding or other process” includes any civil, criminal or arbitration proceedings, any disciplinary or regulatory proceedings of any kind and any process operated for resolving disputes or adjudicating on complaints, and d references to a proceeding or other process or an investigation include a reference to a proceeding or other
- additional information
means information supplied by HMRC which relates to notifiable proposals or notifiable arrangements in general.
- adjustment for the loss-absorbing capacity of deferred taxes
means— a an adjustment pursuant to Article 103(c) of the Solvency 2 Directive, or b any corresponding adjustment made pursuant to Subsection 3 of Section 4 of Chapter 6 of Title 1 of the Solvency 2 Directive (solvency capital requirement full and partial internal models). 8 Where the company is a third-country insurance undertaking— a steps 1(b) and 2 to 5 of subsection (1), and b subsections (2) to (7), have effect with any modifications that are appropriate as a result of the reference in step 1(a) of subsection (1) to the “solvency capital requirement” having effect in accordance with section 269ZP(1)(b). 269ZO 1 An insurance company's solvency loss (if any) for a 12 month period is determined as follows. 2 Calculate, in the manner set out in subsections (5) to (11)— a whether the total amount of the company's basic own funds at the beginning of the period (“opening BOF”) exceeds the total amount of the company's basic own funds at the end of the period (“closing BOF”), and b if so, the amount by which opening BOF exceeds closing BOF. 3 The company has a solvency loss for the 12 month period only if an excess of open
- adjustments
means any adjustments, whether by way of an assessment, the modification of an assessment or return, the amendment or disallowance of a claim, a payment, the entering into of a contract settlement or otherwise.
- 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). 9 A deduction under section 45 or 45B of CTA 2010 which is made in reliance on this section is to be ignored for the purposes of section 269ZB of that Act (restriction on deductions from trading profits). 1218ZE 1 In relation to a company and the production of an exhibition, “interim accounting period” means any accounting period that— a is one in which the company carries on the separate exhibition trade, and b precedes the accounting period in which it ceases to do so. 2 A company is not entitled to museums and galleries exhibition 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 exhibition that is EEA expenditure (see section 1218ZCC(2)), and b that amount is such as to indicate that the EEA expenditure condition (see section 1218ZCC) will be met.
- alternative finance arrangements
has the same meaning as in Parts 5 and 6 of CTA 2009 (see section 501(2) of that Act);
- alternative finance return
has the same meaning as in Part 6 of CTA 2009 (see sections 511 to 513 of that Act);
- an interested person
means— a a person, other than P, who participated in the avoidance arrangements or any transaction forming part of them, or b a person who for any consideration (whether or not in money) facilitated P's entering into the avoidance arrangements. 7 Where (but for this sub-paragraph) advice would be disqualified under paragraph (a) of sub-paragraph (4) because it was given by a person within sub-paragraph (6)(b), the advice is not disqualified under that paragraph if— a the person giving the advice had appropriate expertise for giving it, b the advice took account of P's individual circumstances, and c at the time when the question whether the advice is disqualified arises— i Condition E in paragraph 3B(5) is met in relation to the avoidance arrangements, but ii none of Conditions A to D in paragraph 3B(5) is or has at any time been met in relation to them. 8 If the document mentioned in sub-paragraph (1) is given to HMRC by P as a personal representative of a deceased person (“D”)— a sub-paragraph (4) is to be read as if— i the references in paragraphs (a) and (b) to P were to P or D;
- any other penalty
means a penalty—
- appeal tribunal
has the same meaning as in Chapter 2 of Part 1 of the Finance Act 1994.
- applicable rate
means—
- applicable time limit
means the time limit in paragraph 8(3) or, in a case where paragraph 57(2) or (4) applies and imposes a later time limit for submission of the interest restriction return, that later time limit. 5 Nothing in this paragraph affects— a the power under paragraph 42 (extended time limits for opening enquiries: discovery of errors), or b any power to make a determination under paragraph 56 or 58 (determinations by officers of Revenue and Customs).”
- approved person
means a person approved under this section to carry on an imported goods fulfilment business.
- Arrangement
includes any agreement, understanding, scheme, settlement, trust, transaction or series of transactions (whether or not legally enforceable). 3 A “tax advantage” includes— 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. 4 Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of this group of sections as if subsection (4) of that section 993 were omitted. 23E 1 Where this section applies (see section 23A), the relevant benefit amount is to be treated for income tax purposes as profits of the relevant trade for— a the tax year in which the relevant benefit arises, or b if T has ceased to carry on the relevant trade in a tax year (the “earlier tax year”) before the tax year referred to in paragraph (a), the earlier tax year. 2 For the purposes of this section, “the relevant benefit amount” means— a if the relevant benefit is a payment otherwise than by way of a loan, a
- arrangements
includes any scheme, transaction or series of transactions;
- assets
has the meaning given in section 21(1) of TCGA 1992, but also includes sterling.
- Associated worldwide group
means the worldwide group of which a specified non-consolidated associate is the ultimate parent. 3 Where (apart from this subsection) a specified non-consolidated associate does not fall within section 473(1)(a) (conditions for being the ultimate parent of a worldwide group), it is treated as if it did fall within that provision. 4 Where (apart from this subsection) financial statements of an associated worldwide group are not drawn up in respect of the relevant period of account, IAS financial statements of the associated worldwide group are treated as having been drawn up in respect of that period. 5 The associated worldwide group's financial statements for the relevant period of account are treated as if no relevant expense amounts were recognised in them, as items of profit or loss, so far as they relate to financial liabilities owed to any member of the principal worldwide group by any member of the associated worldwide group. 6 The reference in section 427(6) to profits or losses of the associated worldwide group to which the principal worldwide group is entitled does not include any profits or losses that relate to times when the non-consolidate
- assumed disposal value
means the disposal value that, in making the calculation referred to in subsection (1)(c), was assumed to be brought into account pursuant to section 262AC(3)(h). 262AF In sections 262AA to 262AE and this section— • “co-ownership authorised contractual scheme” means a co-ownership scheme which is authorised for the purposes of the Financial Services and Markets Act 2000 by an authorisation order in force under section 261D(1) of that Act;
- Authorised investment fund
has the same meaning as in the Authorised Investment Funds (Tax) Regulations 2006 (SI 2006/964).
- authorised lender
means a person who— (a) has permission under Part 4A of the Financial Services and Markets Act 2000 to enter into, or to exercise or have the right to exercise rights and duties under, a contract of the kind mentioned in paragraph 23 of Schedule 2 to that Act, and (b) is not acting as a trustee.
- authorised officer
means an officer of Revenue and Customs authorised by HMRC for the purposes of this paragraph.
- avoidance arrangements
means, subject to sub-paragraph (3), arrangements which fall within sub-paragraph (2). 2 Arrangements fall within this sub-paragraph if, having regard to all the circumstances, it would be reasonable to conclude that the obtaining of a tax advantage was the main purpose, or one of the main purposes, of the arrangements. 3 Arrangements are not avoidance arrangements for the purposes of paragraph 3A if (although they fall within sub-paragraph (2))— a they are arrangements which accord with established practice, and b HMRC had, at the time the arrangements were entered into, indicated its acceptance of that practice. 4 If, at any time, any of Conditions A to E is met in relation to particular arrangements— a for the purposes of this Schedule the arrangements are to be taken to fall within (and always to have fallen within) sub-paragraph (2), and b in relation to the arrangements, sub-paragraph (3) (and the reference to it in sub-paragraph (1)) are to be treated as omitted.
- avoidance-related rule
has the same meaning as in Part 4 of Schedule 18 to FA 2016 (see paragraph 25 of that Schedule);
- balance sheet
means a balance sheet that is drawn up in accordance with generally accepted accounting practice, • “financial asset” has the same meaning as it has for accounting purposes, • “loan relationships or other financing arrangements” means— (a) loan relationships, (b) derivative contracts in relation to which the condition in section 387(4) is met (underlying subject matter to be interest rates etc), (c) finance leases, or (d) debt factoring or similar transactions, and • “the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964. 2 For the purposes of this Chapter references to a company which is “associated” with another company at any time are references to companies that are members of the same worldwide group at that time. 450 1 This section applies in relation to a banking company carrying on a trade so far as the activities of the trade consist of or include dealing in financial instruments. 2 For the purposes of section 382 an amount is treated as meeting condition A, B or C if it is a debit arising directly from dealing in financial instruments other than one in respect of an impai
- bank
has the meaning given by section 1120 of CTA 2010, and • “securities house” has the meaning given by section 1009(3) of that Act.
- banking company
has the same meaning as in Part 7A of CTA 2010 (see sections 269B to 269BD), and • “financial instruments” includes— (a) loan relationships, (b) derivative contracts, and (c) shares or other securities. 451 1 For the purposes of this Part any amount which is, or is taken into account in calculating— a the ring fence income of a company within the meaning of section 275 of CTA 2010, or b a company's aggregate gain or loss under section 197(3) of TCGA 1992, is to be ignored. 2 For the purpose of applying subsection (1) in relation to the financial statements of a worldwide group of which the company is a member such adjustments are to be made to those statements as are just and reasonable. 452 1 This section applies if a company (a “property rental business company”)— a is a company which has profits for an accounting period which are not charged to corporation tax as a result of section 534(1) or (2) of CTA 2010, or b is a company to which gains accrue in an accounting period that are not chargeable gains as a result of section 535(1) or (5) of CTA 2010. 2 In this section “the residual business company” means the company which— a so far as it carries on residual bu
- basic pay
means— a employment income of the employee from the employment but disregarding— i any amount received by way of overtime, bonus, commission, gratuity or allowance, ii any amount received in connection with the termination of the employment, iii any amount treated as earnings under Chapters 2 to 10 of Part 3 (the benefits code) or which would be so treated apart from section 64, iv any amount which is treated as earnings under Chapter 12 of Part 3 (amounts treated as earnings), v any amount which counts as employment income by virtue of Part 7 (income relating to securities and securities options), and vi any employment-related securities that constitute earnings under Chapter 1 of Part 3 (earnings), and b any amount which the employee has given up the right to receive but which would have fallen within paragraph (a) had the employee not done so. 8 In subsection (7) “employment-related securities” has the same meaning as it has in Chapter 1 of Part 7 (see section 421B). 9 The Treasury may by regulations amend this section for the purpose of altering the meaning of “basic pay”. 10 A statutory instrument containing regulations under subsection (9) may not be made unless a
- building
includes any fixed structure;
- business
includes any trade or profession;
- business combination
has the meaning given by international accounting standards. 479 1 References in this Part to “financial statements” of a worldwide group for a period are (subject to subsection (2)) to consolidated financial statements of the worldwide group's ultimate parent and its subsidiaries in respect of the period. 2 Where the worldwide group is at all times during the period a single-company worldwide group, the references are to financial statements of the ultimate parent in respect of the period. 3 The basic rule is that the references mentioned in subsections (1) and (2) are to financial statements that are drawn up by or on behalf of the ultimate parent. 4 But see— a section 481 for provision under which, in specified circumstances, financial statements of a worldwide group are treated as having been drawn up in accordance with different accounting standards from those in accordance with which they are drawn up by or on behalf of the ultimate parent;
- Capital expenditure
means expenditure of a capital nature incurred, or treated as incurred, on or in connection with— a the provision, alteration or disposal of an asset, or b the potential provision, alteration or disposal of an asset. 3I The disposal proceeds or capital refund mentioned in condition A or (as the case may be) condition C are to be brought into account as a receipt in calculating the profits of the trade. 3J In a case where only part of the total capital expenditure incurred, or treated as incurred, by the person in relation to the asset has been brought into account in calculating the profits of the trade (whether or not on the cash basis), the amount brought into account under subsection (3I) is proportionately reduced.
- capital market arrangement
has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraph 1 of Schedule 2A to that Act). 497 1 The Treasury may by regulations amend this Part to take account of a change in the way in which amounts are, or may be, presented or disclosed in financial statements where the change results from the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body. 2 For this purpose— • “accounting standard” includes any statement of practice, guidance or other similar document, and • “accounting body” means— (a) the International Accounting Standards Board (or successor body), or
- Capital refund
means an amount that is (in substance) a refund of capital expenditure relating to an asset. 11 “Capital expenditure” means expenditure of a capital nature incurred, or treated as incurred, on or in connection with— a the provision, alteration or disposal of an asset, or b the potential provision, alteration or disposal of an asset. 12 The disposal proceeds or capital refund mentioned in condition A or (as the case may be) condition C are to be brought into account as a receipt in calculating the profits of the property business. 13 In a case where only part of the total capital expenditure incurred, or treated as incurred, by the person in relation to the asset has been brought into account in calculating the profits of the property business (whether or not on the cash basis), the amount brought into account under subsection (12) is proportionately reduced.
- car
has the same meaning as in Part 2 of CAA 2001 (see section 268A of that Act);
- cash basis deductible amount
means any amount of unrelieved qualifying expenditure for which a deduction would be allowed in calculating the profits of the trade on the cash basis on the assumption that the expenditure was paid in the tax year for which the person enters the cash basis. 3 Any cash basis deductible amount is to be determined on such basis as is just and reasonable in all the circumstances. 4 Subsections (9) and (11) of section 1A (capital allowances and charges: cash basis) apply for the purposes of this section as they apply for the purposes of that section.”
- cash basis expenditure
means any expenditure incurred— (a) in the case of a trade, profession or vocation, at a time when an election under section 25A of ITTOIA 2005 has effect in relation to the trade, profession or vocation, or (b) in the case of a property business, in a tax year for which the profits of the business are calculated on the cash basis (see section 271D of that Act);
- charity
has the same meaning as in Chapter 2 of Part 6 of CTA 2010 (see section 202 of that Act as read with Schedule 6 to FA 2010), and • “the creditor” means the person who is party to the loan relationship in question as creditor. 460 1 In calculating a company's adjusted corporation tax earnings for an accounting period under section 406(2), each of the following amounts is to be ignored— a the amount of a deduction under section 363 of CTA 2010 (lessor under long funding operating lease);
- claim
includes an election, an application and a notice, and references to making a claim are to be read accordingly. 10 In this paragraph “tax” (except in the expression “corporation tax”) includes income tax and capital gains tax. 73 In this Schedule “company tax return” has the meaning given by paragraph 3 of Schedule 18 to FA 1998. 74 A person is not liable to a penalty under any provision of this Schedule in respect of anything in respect of which the person has been convicted of an offence. 75 Notice of an appeal under this Schedule must specify the grounds of appeal. 76 1 This paragraph applies to an amount stated in an interest restriction return submitted under paragraph 7 or 8 (“the interest restriction return”), other than an amount that is also stated in a company tax return. 2 If the amount can no longer be altered, it is taken to be conclusively determined for the purposes of the Corporation Tax Acts. 3 An amount is regarded as one that can no longer be altered if— a the interest restriction return has not been superseded by a subsequent interest restriction return;
- client
means a person to whom a person... is providing (or has provided) services in connection with arrangements or a proposal.
- close company
means a company within the meaning of the Corporation Tax Acts which is (or would be if resident in the United Kingdom) a close company for the purposes of those Acts;
- co-ownership authorised contractual scheme
means a co-ownership scheme which is authorised for the purposes of the Financial Services and Markets Act 2000 by an authorisation order in force under section 261D(1) of that Act;
- co-ownership scheme
has the same meaning as in Part 17 of that Act (see section 235A(2) of that Act);
- co-transferred company
means any company which is related to the transferred company both immediately before and immediately after the change in ownership. 2 For the purposes of this Chapter any two companies (“T”) and (“C”) are “related” to one another at any time when— a the group condition is met in relation to T and C, or b any of consortium conditions 1 to 4 is met in relation to T and C, (whether on the assumption that T is the claimant company and C is the surrendering company or vice versa). 3 In this Chapter— • “consortium condition 1” is to be interpreted in accordance with section 188CF, • “consortium condition 2” is to be interpreted in accordance with section 188CG, • “consort
- commercial restructuring arrangements
means—
- Commissioners
means the Commissioners for Her Majesty‘s Revenue and Customs;
- company
has the meaning given by section 1121 of the Corporation Tax Act 2010;
- company tax return
has the same meaning as in Schedule 18 to FA 1998 (see paragraph 3(1) of that Schedule);
- company with investment business
has the same meaning as in Part 16 of CTA 2009 (see section 1218B of that Act);
- component activities
means the carrying on of a qualifying trade or preparing to carry on such a trade, which constitutes the relevant qualifying activity;
- conditional support arrangements
means arrangements under which the relevant restrictions would cease to apply if specified conditions relating to the financial strength of the fund were met. 6 In subsection (5) “the relevant restrictions” means the restrictions on transferability as a result of which the item is a restricted own-fund item. 7 In this section “adjustment for the loss-absorbing capacity of deferred taxes” means— a an adjustment pursuant to Article 103(c) of the Solvency 2 Directive, or b any corresponding adjustment made pursuant to Subsection 3 of Section 4 of Chapter 6 of Title 1 of the Solvency 2 Directive (solvency capital requirement full and partial internal models). 8 Where the company is a third-country insurance undertaking— a steps 1(b) and 2 to 5 of subsection (1), and b subsections (2) to (7), have effect with any modifications that are appropriate as a result of the reference in step 1(a) of subsection (1) to the “solvency capital requirement” having effect in accordance with section 269ZP(1)(b). 269ZO 1 An insurance company's solvency loss (if any) for a 12 month period is determined as follows. 2 Calculate, in the manner set out in subsections (5) to
- conduct
includes a failure to act.
- consortium claim
means a claim for group relief for carried-forward losses under section 188CB, • “group company” means a company that is a member of the same group of companies as the link company (other than the link company itself), and • “UK related”, in relation to a company, has the meaning given by section 188CJ. 188DK 1 This section applies if— a the claimant company makes a claim under section 188CB for group relief for carried-forward losses, b the claim is based on consortium condition 1, and c during any part of the overlapping period, arrangements within subsection (3) are in place which enable a person to prevent the surrendering company, either alone or together with one or more other companies that are members of the consortium, from controlling the claimant company. 2 This section also applies if— a the claimant company makes a claim under section 188CB for group relief for carried-forward losses, b the claim is based on consortium condition 2, and c during any part of the overlapping period, arrangements within subsection (3) are in place which enable a person to prevent the link company, either alone or together with one or more other companies that are members
- contract for an off-plan purchase
has the meaning given by paragraph 1(6) of Schedule B1 to the 1992 Act. 9 1 In this Schedule— • “close company” means a company within the meaning of the Corporation Tax Acts which is (or would be if resident in the United Kingdom) a close company for the purposes of those Acts;
- contract of general insurance
means a contract of a type described in Part 1 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);
- core expenditure
has the meaning given by section 1218ZCD;
- cost
means the amount or value of the consideration, in money or money's worth, given by the investing company or on its behalf wholly and exclusively for the acquisition of the ordinary shares or interests in ordinary shares, together with the incidental costs to it of the acquisition;
- credit institution
has the meaning given by Article 4.1(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms.”
- creditor
means— a if the amount meets condition A in section 382, the person who is party to the loan relationship as creditor, b if the amount meets condition B in that section, the person other than the company who is party to the derivative contract, and c if the amount meets condition C in that section, the person other than the company who is party to the relevant arrangement or transaction. 439 1 A loan relationship is a “qualifying old loan relationship” of a qualifying infrastructure company if— a the company entered into the loan relationship on or before 12 May 2016, and b as at that date, at least 80% of the total value of the company's future qualifying infrastructure receipts for the qualifying period was highly predictable by reference to qualifying public contracts, but see subsection (8) for cases where a loan relationship is not a qualifying old loan relationship of the company. 2 For the purposes of this section “the qualifying period” means— a in a case where the loan relationship would cease to subsist at any time before 12 May 2026 (if any amendments of the loan relationship made on or after 12 May 2016 are ignored), the period beginning with 12 May 2016 and
- creditor quasi-repo
has the same meaning as in Chapter 10 of Part 6 of CTA 2009 (see section 544 of that Act);
- creditor relationships relating to insurance activities
means creditor relationships which— a are held by an insurance company, a friendly society within the meaning of Part 3 of FA 2012 (see section 172) or a body corporate which carries on underwriting business as a member of Lloyd's, or b are held in connection with the regulation of underwriting business carried on by members of Lloyd's. 8 The Commissioners may by regulations amend the definition of “amortised cost basis of accounting” in this section. 9 Other expressions which are used in this section and in Part 5 of CTA 2009 have the same meaning in this section as they have in that Part. 457 1 This section applies if— a as a result of an election under section 456, the tax-interest expense amounts of a company include notional debits for an accounting period, b the worldwide group of which the company is a member is subject to interest restrictions for a period of account, and c the total disallowed amount for the period of account consists of or includes the notional debits. 2 In order to facilitate the operation of Chapter 2 (disallowance and reactivation of tax-interest expense amounts)— a the company must bring a debi
- creditor repo
has the same meaning as in Chapter 10 of Part 6 of CTA 2009 (see section 543 of that Act);
- de minimis aid
means de minimis aid which fulfils the conditions laid down— a in Commission Regulation (EU) No. 1407/2013 (de minimis aid) as amended from time to time, or b in any EU instrument from time to time replacing the whole or any part of that Regulation. 6 For the purposes of subsection (3), the amount of any de minimis aid is the amount of the grant or, if the aid is not in the form of a grant, the gross grant equivalent amount within the meaning of that Regulation as amended from time to time. 7 For the purposes of subsection (3), if— a the investment or any relevant investment is made, or b any aid is granted, in sterling or any other currency that is not the euro, its amount is to be converted into euros at an appropriate spot rate of exchange for the date on which the investment is made or the aid is paid. 8 In this section “relevant investment” has the meaning given by section 173A(3) (reading references in section 173A(3) to a company as including any social enterprise). 9 Section 173A(4) and (5) apply to determine for the purposes of this section when a relevant investment is made. 10 Section 257MNB (which expands the meaning of “relevant investments made in the
- debt security
has the same meaning as in the Handbook made by the Financial Conduct Authority or Prudential Regulation Authority under the Financial Services and Markets Act 2000 (as the Handbook in question has effect from time to time), • “period of account” has the same meaning as in Part 10, • “relevant accounting period” has the same meaning as in Part 10, • “relevant income”, in relation to a company, means income— (a) arising from the activities of the company, and (b) accounted for as such under generally accepted accounting practice, before any deduction (whether for expenses or otherwise), • “UK group company” has the same meaning as in Part 10, and • “worldwide group” has the sa
- debtor quasi-repo
has the same meaning as in Chapter 10 of Part 6 of CTA 2009 (see section 549 of that Act);
- debtor relationship
has the meaning given by section 302(6) of CTA 2009 (reading the references in that subsection to a company as references to a person). 470 1 This section applies where— a at any time, a person (“C”) is party to a loan relationship as creditor and the party to the loan relationship as debtor (“D”) is a related party of C as a result of any circumstances, and b the loan relationship is not one to which C is a party at that time directly or indirectly in consequence of, or otherwise in connection with, the existence of any of those circumstances. 2 C and D are treated for the purposes of this Part as if, in relation to the loan relationship (and anything done under or for the purposes of it), they were not related parties of each other at that time. 471 1 This section applies at any time where— a a relevant public body (“B”) lends money to a person (“P”), b B is a related party of P, and c the realising of a profit is merely incidental to the making of the loan. 2 B and P are treated for the purposes of this Part as if, in relation to the loan (and anything done under or for the purposes of it), they were not related parties of each other at that time. 472 1 Thi
- debtor repo
has the same meaning as in Chapter 10 of Part 6 of CTA 2009 (see section 548 of that Act);
- decommissioning
includes demolishing and putting out of use. 449 1 For the purposes of this Chapter— • “balance sheet” means a balance sheet that is drawn up in accordance with generally accepted accounting practice, • “financial asset” has the same meaning as it has for accounting purposes, • “loan relationships or other financing arrangements” means— (a) loan relationships, (b) derivative contracts in relation to which the condition in section 387(4) is met (underlying subject matter to be interest rates etc), (c) finance leases, or (d) debt factoring or similar transactions, and • “the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964. 2 For the purposes of this Chapter references to a company which is “associated” with another company at any time are references to companies that are members of the same worldwide group at that time. 450 1 This section applies in relation to a banking company carrying on a trade so far as the activities of the trade consist of or include dealing in financial instruments. 2 For the purposes of section 382 an amount is treated as meeting condition A, B or C if i
- decommissioning relief agreement
has the meaning given by section 80 of FA 2013. 303B 1 This section applies if— a in an accounting period beginning on or after 1 April 2017 (“the loss-making period”) a company makes a non-decommissioning loss in a ring fence trade, b relief under— • section 37 or 42, or • Part 5 (group relief), is not given for an amount of the loss (“the unrelieved amount”), and c the company continues to carry on the ring fence trade in the next accounting period (“the later period”). 2 The unrelieved amount is carried forward to the later period. 3 Relief for the unrelieved amount is given to the company in the later period if the company makes a profit in the trade fo
- deemed domiciled
means regarded for the purposes of section 86(1)(c) as domiciled in the United Kingdom as a result of section 835BA of ITA 2007 having effect. 5B 1 This paragraph applies for the purposes of Condition D in paragraph 5A. 2 Ignore— a property or income provided under a transaction, other than a loan, where the transaction is entered into on arm's length terms, b property or income provided, otherwise than under a loan, without any intention by the person providing it to confer a gratuitous benefit on any person, c the principal of a loan which is made to the trustees of the settlement on arm's length terms, d the payment of interest to the trustees of the settlement under a loan made by them on arm's length terms, e repayment to the trustees of the settlement of the principal of a loan made by them, f property or income provided in pursuance of a liability incurred by any person before 6 April 2017, and g where the settlement's expenses relating to taxation and administration for a tax year exceed its income for that year, property or income provided towards meeting that excess if the value of any such property and income is not greater than the amount of— i the ex
- depreciation and amortisation adjustment
means the sum of the following amounts (any of which may be negative)— a the capital (expenditure) adjustment (see section 417);
- designated HMRC officer
means an officer of Revenue and Customs who has been designated by the Commissioners for the purposes of this Schedule;
- different persons
includes persons of a different class or description, and d “arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable). 447 1 Subsections (2) to (4) apply where a company is a member of a partnership. 2 For the purposes of section 433 the cases in which assets recognised in a balance sheet of the company are regarded as deriving their value from the matters mentioned in subsection (5)(a) to (e) of that section include any case where— a the company's interest in the partnership is recognised in the balance sheet of the company, and b that partnership interest derives its value from those matters. 3 For the purposes of section 436 the cases in which an entry in respect of an asset is (or would be) recognised in a balance sheet of the company include any case where— a the asset is (or would be) recognised in a balance sheet of the partnership, and b the company has a significant interest in the partnership. 4 For the purposes of section 438(4)— a the obligations mentioned there include any case where the obligations are those of the partnership, and b references to a qualifying infrastruct
- disclosable arrangements
means any of the following— a DOTAS arrangements, b disclosable VAT arrangements, and c disclosable indirect tax arrangements.”
- Disposal proceeds
means— a any proceeds arising from the disposal of an asset or any part of it, b any proceeds arising from the grant of any right in respect of, or any interest in, the asset, or c any amount of damages, proceeds of insurance or other compensation received in respect of the asset.
- disposal value
means— (a) a disposal value for the purposes of Part 2, 4A, 5, 6, 7, 8 or 10, or (b) proceeds from a balancing event for the purposes of Part 3 or 3A;
- double taxation relief arrangements
means arrangements having effect under section 158(1);
- downward adjustment
means any of the following amounts— a a relevant income amount that is brought into account in the financial statements of the group for the period in determining the carrying value of an asset or liability;
- dwelling
has the meaning given by paragraph 4 of Schedule B1 to the 1992 Act (and the power in paragraph 5 of that Schedule applies for the purposes of this Schedule);
- effective rate
means the rate found by expressing the tax chargeable as a percentage of the amount by reference to which it is charged. 8 1 In this Schedule “UK residential property interest” means an interest in UK land— a where the land consists of a dwelling, b where and to the extent that the land includes a dwelling, or c where the interest subsists under a contract for an off-plan purchase. 2 For the purposes of sub-paragraph (1)(b), the extent to which land includes a dwelling is to be determined on a just and reasonable basis. 3 In this paragraph— • “interest in UK land” has the meaning given by paragraph 2 of Schedule B1 to the 1992 Act (and the power in sub-paragraph (5) of that paragraph applies for the purposes of this Schedule);
- electric vehicle
means a road vehicle that can be propelled by electrical power (whether or not it can also be propelled by another kind of power);
- electric vehicle charging point
means a facility for charging an electric vehicle.”
- eligible sport
means a sport that for the time being is an eligible sport for the purposes of Chapter 9 of Part 13 (see section 661). 217C 1 For the purposes of this Part, a “qualifying sport body” is— a a recognised sport governing body;
- employee share acquisition arrangements
means arrangements the corporation tax treatment of which is determined under Part 11 or 12 of CTA 2009. 5 For the purposes of this section, all members of the group are treated as within the charge to corporation tax. 426 1 Where an interest allowance (alternative calculation) election has effect in relation to a period of account of a worldwide group (“the relevant period of account”), this Chapter applies in relation to the period subject to this section. 2 The financial statements of the group for the relevant period of account are to be treated as subject to such adjustments as would be made to them under the change of accounting policy provisions if the group were a company that— a was within the charge to corporation tax, b held the assets and owed the liabilities recognised in the financial statements, to the extent that they are so recognised, and c carried on the trades and other activities giving rise to amounts recognised in the financial statements as items of profit and loss. 3 In this section “the change of accounting policy provisions” means— a Chapter 14 of Part 3 of CTA 2009 (trading profits);
- employer pension contributions
means contributions paid by an employer under a registered pension scheme in respect of an individual;
- employer shares
means shares that form part of the ordinary share capital of—
- employment-related loan
has the same meaning as it has for the purposes of Chapter 7 of Part 3.
- employment-related securities
has the same meaning as it has in Chapter 1 of Part 7 (see section 421B). 9 The Treasury may by regulations amend this section for the purpose of altering the meaning of “basic pay”. 10 A statutory instrument containing regulations under subsection (9) may not be made unless a draft of it has been laid before, and approved by a resolution of, the House of Commons. 11 Where the purpose, or one of the purposes, of any arrangements is the avoidance of tax by causing the post-employment notice pay calculated under subsection (1) to be less than it would otherwise be, the post-employment notice pay is to be treated as the amount which the post-employment notice pay would have been but for the arrangements. 12 In subsection (11) “arrangements” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions. 402E 1 Subsections (2) and (4) to (6) have effect for the purposes of section 402D (and subsection (4) has effect also for the purposes of this section). 2 The “trigger date” is— a if the termination is not a notice case, the last day of the employment, and b i
- enabler penalty proceedings
means proceedings before a court or tribunal in connection with a penalty under paragraph 1.
- enactment
includes— a an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978, b an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament, c an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales, and d an enactment contained in, or in an instrument made under, Northern Ireland legislation. 3 The Commissioners may by regulations amend this section so as to alter the meaning of “relevant public body”. 4 The provision that may be made by the regulations does not include provision altering the meaning of “relevant public body” so that it includes a person who has no functions of a public nature. 492 In this Part “UK group company”, in relation to any time during a period of account of a worldwide group, means a company— a which is within the charge to corporation tax at that time, and b which is a member of the group at that time. 493 Sections 415 and 585 of CTA 2009 (loan relationships with embedded derivatives) apply for the purposes of this Part of this Act. 494 1 In this Part— • “the Commissioners” means the Commissioners for Her Majesty's Reven
- entity
includes anything which is treated as an entity in the financial statements of the group (regardless of whether it has a legal personality as a body corporate).
- excess capacity
means the amount (if any) by which— a the section 269ZF step 2 amount, is less than b what the section 269ZF step 2 amount would be if in paragraph (d) of section 269ZF(4) the reference to any I-E profit were to the policyholders' share of any I-E profit. 8 In subsection (7) the reference to the “section 269ZF step 2 amount” is to the sum given by paragraph (1) of step 2 of section 269ZF(3) in calculating the company's relevant trading profits and relevant non-trading profits for the accounting period: but for this purpose disregard paragraph (4) of step 1 of section 269ZF(3). 9 For the purposes of this section the “shareholders' share” of an insurance company's I-E profit for an accounting period is equal to— a the amount of the I-E profit, less b the policyholders' share (if any) of that profit. 10 In this section references to the policyholders' share of I-E profit are to that share as determined in accordance with section 103 of FA 2012. 269ZF 1 A company's “relevant trading profits” for an accounting period are— a the company's qualifying trading profits for the accounting period (see subsection (3)), less b the company's trading profits deductions allowance
- excluded accounting period
has the meaning given by section 269ZG of CTA 2010;
- excluded credit
has the meaning given by section 386(3), • “excluded debit” has the meaning given by section 383(3), and • “period of account”, “relevant accounting period” and “worldwide group” have the same meanings as in Part 10.”
- excluded debit
has the meaning given by section 383(3), and • “period of account”, “relevant accounting period” and “worldwide group” have the same meanings as in Part 10.”
- excluded derivative contract amount
means an amount which would, on the relevant assumptions, be excluded from section 597(1) of CTA 2009 (amounts recognised in determining a company's profit or loss) as a result of a relevant provision of the Disregard Regulations. 5 Subsection (6) applies where, on the relevant assumptions, one or more amounts (“replacement derivative contract amounts”) would be brought into account by members of the group for the purposes of corporation tax in relevant accounting periods as a result of regulation 9 or 10 of the Disregard Regulations. 6 The financial statements are treated for the purposes of this Part (apart from this section) as if the replacement derivative contract amounts were recognised in the group's financial statements for the relevant period of account. 7 Subsection (9) applies if an accounting period in which a replacement derivative contract amount would, on the relevant assumptions, be brought into account for the purposes of corporation tax contains one or more disregarded periods. 8 A “disregarded period” is any period falling within the accounting period— a which does not fall within the relevant period of account, or b througho
- exempt unauthorised unit trust
has the same meaning as in the Unauthorised Unit Trusts (Tax) Regulations 2013 (SI 2013/2819).”
- exhibition
has the same meaning as in Part 15E (see section 1218ZAA);
- fair value
has the meaning it has for accounting purposes;
- fair value accounting
means a basis of accounting under which— (a) assets and liabilities are measured in the company's balance sheet at their fair value, and (b) changes in the fair value of assets and liabilities are recognised as items of profit or loss;
- financial asset
means any right under or in connection with— a a financial instrument, or b an arrangement that is capable of producing a return that is economically equivalent to a return produced under any financial instrument. 13 A reference to acquisition, provision, alteration or disposal includes potential acquisition, provision, alteration or (as the case may be) disposal. 14 In this section— • “arrangement” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);
- financial instrument
has the same meaning as in FRS 105;
- financial instruments
includes— (a) loan relationships, (b) derivative contracts, and (c) shares or other securities. 451 1 For the purposes of this Part any amount which is, or is taken into account in calculating— a the ring fence income of a company within the meaning of section 275 of CTA 2010, or b a company's aggregate gain or loss under section 197(3) of TCGA 1992, is to be ignored. 2 For the purpose of applying subsection (1) in relation to the financial statements of a worldwide group of which the company is a member such adjustments are to be made to those statements as are just and reasonable. 452 1 This section applies if a company (a “property rental business company”)— a is a company which has profits for an accounting period which are not charged to corporation tax as a result of section 534(1) or (2) of CTA 2010, or b is a company to which gains accrue in an accounting period that are not chargeable gains as a result of section 535(1) or (5) of CTA 2010. 2 In this section “the residual business company” means the company which— a so far as it carries on residual business, is treated, as a result of section 541 of CTA 2010, as a separate company distinct from the p
- flawed
means flawed when considered in the light of the principles applicable in proceedings for judicial review. 6 Subject to this Part of this Schedule, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this Part of this Schedule as they have effect in relation to appeals against an assessment to corporation tax. 37 1 This paragraph applies if— a a company (“P”) liable to a penalty under this Part of this Schedule has an agreement in relation to the penalty with one or more other companies within the charge to corporation tax, and b as a result of the agreement, P receives a payment or payments in respect of the penalty that do not, in total, exceed the amount of the penalty. 2 The payment— a is not to be taken into account in calculating the profits for corporation tax purposes of either P or the company making the payment, and b is not to be regarded as a distribution for corporation tax purposes. 38 1 A company which is a reporting company in relation to a period of account of a worldwide group must— a keep such records as may be needed to enable it to submit a correct and complete interest restriction return for the period, an
- foreign chargeable gain
has the meaning given by section 12(4) of TCGA 1992.
- freeplay
means participation, in reliance on a freeplay offer, in— (a) remote gaming, or (b) an activity in respect of which a gambling tax listed in section 161(4) is charged;
- freeplay offer
means an offer which waives all or part of— (a) a gaming payment, or (b) a payment in connection with participation in an activity in respect of which a gambling tax listed in section 161(4) is charged.”
- giving evidence
includes making a formal or informal statement or answering questions, c “proceeding or other process” includes any civil, criminal or arbitration proceedings, any disciplinary or regulatory proceedings of any kind and any process operated for resolving disputes or adjudicating on complaints, and d references to a proceeding or other process or an investigation include a reference to a proceeding or other process or an investigation that is likely to take place.”
- goodwill
has the meaning it has for accounting purposes (and includes internally-generated goodwill);
- group
means two or more companies which together meet the following condition. 2 The condition is that one of the companies is— a the ultimate parent of each of the other companies, and b is not the ultimate parent of any other company. 3 A company (“A”) is the “ultimate parent” of another company (“B”) if— a A is the parent of B, and b no company is the parent of both A and B. 4 A company (“A”) is the “parent” of another company (“B”) if— a B is a 75% subsidiary of A, b A is beneficially entitled to at least 75% of any profits available for distribution to equity holders of B, or c A would be beneficially entitled to at least 75% of any assets of B available for distribution to its equity holders on a winding up. 5 The following apply for the purposes of subsection (4)— a Chapter 6 of Part 5 (equity holders and profits or assets available for distribution) other than sections 169 to 182, and b Chapter 3 of Part 24 (subsidiaries).
- 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 or ending with that 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 that subsection to direct or indirect participation are to be read in accordance with provisions of Chapter 2 of Part 4). 6 If one of the relevant parties is a securitisation company within the meaning of Chapter 4 of Part 13 of CTA 2010, the relevant parties are not to be regarded as related parties of each other as a result of subsection (4) merely by reference to the fact that— a the securitisation company is held by a trustee of a settlement, and b the other relev
- group company
means a company that is a member of the same group of companies as the link company (other than the link company itself), and • “UK related”, in relation to a company, has the meaning given by section 188CJ. 188DK 1 This section applies if— a the claimant company makes a claim under section 188CB for group relief for carried-forward losses, b the claim is based on consortium condition 1, and c during any part of the overlapping period, arrangements within subsection (3) are in place which enable a person to prevent the surrendering company, either alone or together with one or more other companies that are members of the consortium, from controlling the claimant company. 2 This section also applies if— a the claimant company makes a claim under section 188CB for group relief for carried-forward losses, b the claim is based on consortium condition 2, and c during any part of the overlapping period, arrangements within subsection (3) are in place which enable a person to prevent the link company, either alone or together with one or more other companies that are members of the consortium, from controlling the claimant company. 3 Arrangements are within this subsection
- group relief
means— a group relief under Part 5 of CTA 2010 (see section 97(2) of that Act), and b group relief for carried-forward losses under Part 5A of CTA 2010 (see section 188AA(4) of that Act).”
- group relief for carried-forward losses
has the meaning given by section 188AA(4), • “profits” means income and chargeable gains, except in so far as the context otherwise requires, • “shock loss” has the meaning given by section 269ZK, • “Solvency 2 insurance company” means an insurance company as defined in section 269ZP(2), • “the specified loss-making period”, in relation to a claim for group relief for carried forward losses made under section 188CC, has the meaning given by subsection (2) of that section, • “the surrenderable amounts” has the meaning given by section 188BB(7), • “surrendering company” has the meaning given by 188BB(7), and • “the surrender period” has the meaning giv
- HMRC
means Her Majesty's Revenue and Customs;
- holding company
means a company the business of which consists wholly or mainly in the holding of shares or securities that— a are its 90% subsidiaries, and b are trading companies. 188FD 1 In this Part— • “the claimant company” has the meaning given by section 188CB(2) or 188CC(2), • “the claim period” has the meaning given by section 188CB(2) or 188CC(2), • “company” means any body corporate, • “group relief for carried-forward losses” has the meaning given by section 188AA(4), • “profits” means income and chargeable gains, except in so far as the context otherwise requires, • “shock loss” has the meaning given by section 269ZK, • “Solvency 2 insurance company” means an insurance company
- impairment loss
means a loss in respect of the impairment of a financial asset. 2 A reference to a debit in respect of an impairment loss does not include a debit that is (or apart from this Part would be) brought into account in an accounting period in respect of an asset for which fair value accounting is used. 392 1 For the purposes of this Part “the interest capacity” of a worldwide group for a period of account of the group (“the current period”) is (subject to subsection (2))— where— A is the interest allowance of the group for the current period (see Chapter 5);
- Indirect tax
means any of the following— • VAT • 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 • vaping products duty • soft drinks industry levy • aggregates levy • landfill tax • plastic packaging tax • climate change levy • carbon border adjustment mechanism • customs duties.
- infrastructure
includes— a water, electricity, gas, telecommunications or sewerage facilities, b oil pipelines, oil terminals or oil refineries, c railway facilities (including rolling stock), roads or other transport facilities, d health or educational facilities, e facilities or housing accommodation provided for use by members of any of the armed forces or of any police force, f court or prison facilities, g waste processing facilities, and h buildings (or parts of buildings) occupied by any relevant public body. 2 Each of the following is an “infrastructure authority” for the purposes of section 436(4)— a the Civil Aviation Authority so far as exercising functions in relation to the provision of airports (within the meaning of the Airports Act 1986), b each of the following so far as exercising functions in relation to waste processing— i the Environment Agency, ii the Scottish Environmental Protection Agency, iii the Northern Ireland Environment Agency, or iv Natural Resources Wales, c the Gas and Electricity Markets Authority, d each of the following so far as exercising functions in relation to the management of ports or harbours— i a harbour authority within the meaning o
- initial debt amount
means the total of—
- insurance company
means a company which is an insurance undertaking, a reinsurance undertaking or a third-country insurance undertaking;
- insurance entity
means— (a) an insurance company, (b) a friendly society within the meaning of Part 3 of FA 2012 (see section 172), or (c) a body corporate which carries on underwriting business as a member of Lloyd's, and • “subsidiary” has the meaning given by international accounting standards. 454 In the case of a body corporate carrying on underwriting business as a member of Lloyd's— a any reference in this Part to an amount being brought into account under Part 3 of CTA 2009 as a result of section 297 or 573 of that Act is to be read as a reference to its being brought into account under that Part as a result of section 219 of FA 1994, and b any reference in this Part to a derivative contract is to be read as if subsection (3) of section 226 of FA 1994 (which provides that relevant contracts forming part of a premium trust fund are not derivative contracts) were omitted. 455 1 This section applies in relation to an accounting period of a tonnage tax company. 2 The company's tonnage tax profits for the accounting period are treated as nil for the purpose of calculating the company's adjusted corporation tax earnings for the accounting period under section 406(2). 3 In this
- insurance policy
includes any contract of insurance;
- insurance undertaking
has the meaning given in Article 13(1) of the Solvency 2 Directive;
- Intangible asset
means anything that is capable of being an intangible asset within the meaning of FRS 105 and, in particular, includes— a an internally-generated intangible asset, and b intellectual property. 9 An intangible asset is “non-qualifying” unless, by virtue of having a fixed maximum duration, it must cease to exist before the end of 20 years beginning with the date on which the item of a capital nature is incurred. 10 An intangible asset is “non-qualifying” if it consists of a right, whether conditional or not, to obtain an intangible asset without a fixed maximum duration by virtue of which that asset must, assuming the right is exercised at the last possible time, cease to exist before the end of 20 years beginning with the date on which the item of a capital nature is incurred. 11 Where— a the trader has an intangible asset, and b the trader grants a licence or any other right in respect of that asset to another person, any intangible asset that consists of a licence or other right granted to the trader in respect of the intangible asset mentioned in paragraph (a) is “non-qualifying”. 12 A “financial asset” means any right under or in connection with— a a financial
- intellectual property
means— (a) any patent, trade mark, registered design, copyright or design right, plant breeders' rights or rights under section 7 of the Plant Varieties Act 1997, (b) any right under the law of a country or territory outside the United Kingdom corresponding or similar to a right within paragraph (a), (c) any information or technique not protected by a right within paragraph (a) or (b) but having industrial, commercial or other economic value, or (d) any licence or other right in respect of anything within paragraph (a), (b) or (c);
- interest in UK land
has the meaning given by paragraph 2 of Schedule B1 to the 1992 Act (and the power in sub-paragraph (5) of that paragraph applies for the purposes of this Schedule);
- interest restriction return
means a return submitted under any provision of Schedule 7A;
- interim accounting period
means any accounting period that— a is one in which the company carries on the separate exhibition trade, and b precedes the accounting period in which it ceases to do so. 2 A company is not entitled to museums and galleries exhibition 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 exhibition that is EEA expenditure (see section 1218ZCC(2)), and b that amount is such as to indicate that the EEA expenditure condition (see section 1218ZCC) will be met.
- intervening period
means an accounting period of the company which begins after the loss-making period and before the later period, and • “the loss-making period” means the accounting period of the company in which the non-decommissioning loss was made. 6 A claim under this section must be made— a within the period of two years after the end of the later period, or b within such further period as an officer of Revenue and Customs may allow. 7 Relief under this section is subject to restriction or modification in accordance with the provisions of the Corporation Tax Acts. 303D 1 This section applies if— a an amount of a loss made in a ring fence trade is carried forward to an accounting per
- investment property
has the meaning it has for accounting purposes;
- Investment-regulated pension scheme
has the same meaning as in Part 1 of Schedule 29A to the Finance Act 2004.
- joint property income
means income to which P and Q are treated for income tax purposes as beneficially entitled in equal shares by virtue of section 836 of ITA 2007. 9 Condition D is that— a an allowance under Part 3A of CAA 2001 (business premises renovation allowances) is made at any time in calculating the profits of the property business, and b if the profits of the business were to be calculated in accordance with GAAP for the tax year, there would be a day in the tax year on which the occurrence of a balancing event (within the meaning of that Part) would give rise to a balancing adjustment for the tax year (see section 360M of that Act). 10 Condition E is that an election under this subsection made by the person who is or has been carrying on the property business has effect in relation to the business for the tax year. 11 An election under subsection (10) must be made on or before the first anniversary of the normal self-assessment filing date for the tax year for which the election is made. 12 The Treasury may by regulations— a amend subsection (2);
- liability
includes a contingent or prospective liability. 269ZH 1 For the purposes of section 269ZG a company is subject to insolvency procedures if— a it is in liquidation, b it is in administration, c it is in receivership, or d a relevant scheme has effect in relation to it. 2 A company is “in liquidation” for the purposes of this section if— a it is in liquidation within the meaning of section 247 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19), or b a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company. 3 A company is “in administration” for the purposes of this section if— a it is in administration within the meaning of Schedule B1 to the Insolvency Act 1986 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989, or b there is in force in relation to it under the law of a country or territory outside the United Kingdom any appointment corresponding to the appointment of an administrator under either of those Schedules. 4 A company is “in receivership” for the purposes of this section if there is in force in relation to it— a an orde
- Life assurance business
has the meaning given in section 56 of the Finance Act 2012.
- loan
includes—
- loan relationships or other financing arrangements
means— (a) loan relationships, (b) derivative contracts in relation to which the condition in section 387(4) is met (underlying subject matter to be interest rates etc), (c) finance leases, or (d) debt factoring or similar transactions, and • “the UK sector of the continental shelf” means the areas designated by Order in Council under section 1(7) of the Continental Shelf Act 1964. 2 For the purposes of this Chapter references to a company which is “associated” with another company at any time are references to companies that are members of the same worldwide group at that time. 450 1 This section applies in relation to a banking company carrying on a trade so far as the activities of the trade consist of or include dealing in financial instruments. 2 For the purposes of section 382 an amount is treated as meeting condition A, B or C if it is a debit arising directly from dealing in financial instruments other than one in respect of an impairment loss. 3 An amount— a which is treated as meeting condition A, B or C for the purposes of section 382 as a result of subsection (2) of this section, and b which, but for that subsection,
- loan-charge relevant step
means (as the case may be)—
- long funding finance lease
means a finance lease which is a long funding lease (within the meaning of section 70G of CAA 2001). 461 1 Any tax advantage that would (in the absence of this section) arise from relevant avoidance arrangements is to be counteracted by the making of such adjustments as are just and reasonable. 2 Any adjustments required to be made under this section (whether or not by an officer of Revenue and Customs) may be made by way of an assessment, the modification of an assessment, amendment or disallowance of a claim or otherwise. 3 For the purposes of this section arrangements are “relevant avoidance arrangements” if conditions A and B are met. 4 Condition A is that the main purpose, or one of the main purposes, of the arrangements is to enable a company to obtain a tax advantage. 5 Condition B is that the tax advantage is attributable (or partly attributable) to any company— a not leaving tax-interest expense amounts out of account that it otherwise would have left out of account, b leaving tax-interest expense amounts out of account that are lower than they otherwise would have been, c leaving tax-interest expense amounts out of account in an accounting per
- loss
includes a charge, expense, deficit and any other amount which may be available for, or relied on to claim, a deduction or relief, and
- loss relief
includes any means by which a loss might be used to reduce the amount in respect of which a company, or any other person, is chargeable to tax. 1218ZDB 1 Subsection (2) applies if a loss made in the separate exhibition trade is carried forward under section 45 or 45B of CTA 2010 to the completion period. 2 So much (if any) of the loss as is not attributable to museums and galleries exhibition tax relief (see subsection (4)) may be treated for the purposes of section 37 and Part 5 of CTA 2010 as if it were a loss made in the completion period. 3 If a loss is made in the separate exhibition trade in the completion period, the amount of the loss that may be— a deducted from total profits of the same or an earlier period under section 37 of CTA 2010, or b surrendered as group relief under Part 5 of that Act, is restricted to the amount (if any) that is not attributable to museums and galleries exhibition tax relief (see subsection (4)). 4 The amount of a loss in any period that is attributable to museums and galleries exhibition tax relief is found by— a calculating what the amount of the loss would have been if there had been no additional deduction under Chapter 3 in th
- loss-related tax advantage
means a tax advantage as a result of a deduction (or increased deduction) under a provision mentioned in subsection (8).
- made in the social enterprise
includes— a relevant investments made in a company which, at the material date, is or has been a 51% subsidiary of the social enterprise, b any other relevant investment made in a company to the extent that the money raised by that relevant investment has been employed for the purposes of a trade carried on by another company (“company X”) which, at the material date, is or has been a 51% subsidiary of the social enterprise, and c any other relevant investment made in a company if— i the money raised by that relevant investment has been employed for the purposes of a trade carried on by that company or another person, and ii after that relevant investment was made, but on or before the material date, that trade became a transferred trade (see subsection (5)). 2 The investments within paragraph (a) of subsection (1)— a include investments made in a company mentioned in that paragraph before it became a 51% subsidiary of the social enterprise, but b where a company mentioned in that paragraph is not a 51% subsidiary of the social enterprise at the material date, do not include any investments made in that company after it last ceased to be such a subsi
- makes a firm approach
has the meaning given by paragraph 10(1);
- makes a marketing contact
has the meaning given by paragraph 10(2);
- manufactured interest
has the same meaning as in Chapter 9 of Part 6 of CTA 2009 (see section 539(5) of that Act);
- market value
has the same meaning as it has for the purposes of TCGA 1992 by virtue of Part 8 of that Act.
- market value amount
means the amount that would be regarded as normal and reasonable— (a) in the market conditions then prevailing, and (b) between persons dealing with each other at arm's length in the open market.”
- marketing contact
has the meaning give by paragraph 10(2);
- matched deemed income
means income which— i is treated by section 732 as arising to the individual, and ii would, if section 735A applied also for this purpose, be matched under that section with the benefit, and b a person is a close member of the family of the settlor of a settlement if the person is— i the settlor's spouse or civil partner, or ii a child of the settlor, or of a person within sub-paragraph (i), if the child has not reached the age of 18;
- members of the public
means members of the public at large with whom P deals at arm‘s length.
- mineral extraction trade
has the meaning given in section 394 of CAA 2001;
- mixed fund
has the same meaning as in section 809R(4) of ITA 2007;
- money
includes any amount credited and any other money's worth.”
- monitored promoter
means a person who is a monitored promoter for the purposes of Part 5 of FA 2014
- movable property
means any tangible movable property other than money. 97C 1 For the purposes of section 97(4), the value of the benefit conferred by a capital payment consisting of making land available for the use of a person (P) is, for each tax year in which the benefit is conferred on P, the amount by which— a the rental value of the land for the period of the tax year during which the land is made available to P, exceeds b the total of the amounts (if any) paid in the tax year by P— i to the person conferring the benefit, in respect of the availability of the land, or ii so far as not within sub-paragraph (i), in respect of costs of repair, insurance or maintenance relating to the la
- museum or gallery
includes— a a library or archive, and b a site where a collection of objects or works (or a single object or work) considered to be of scientific, historic, artistic or cultural interest is exhibited outdoors (or partly outdoors). 7 There is further related provision in section 1218ZCM (tax avoidance arrangements). 1218ZCB 1 For the purposes of section 1218ZCA(3)(b) a company is “wholly owned by a charity which maintains a museum or gallery” if condition A or B is met. 2 Condition A is that— a the company has an ordinary share capital, and b every part of that share capital is owned by— i a charity which maintains a museum or gallery, or ii two charities, each of which maintains a museum or gallery. 3 Condition B is that— a the company is limited by guarantee, b there are no more than two beneficiaries of the company, and c the beneficiary, or each beneficiary, is— i a charity which maintains a museum or gallery, or ii a company wholly owned by a charity which maintains a museum or gallery. 4 For the purposes of section 1218ZCA(3)(c) a company is “wholly owned by a local authority” if— a where the company has an ordinary share capital, every part of that share c
- museums and galleries exhibition production company
means a company which, for the purposes of that Part, is the primary production company or a secondary production company for an exhibition (see sections 1218ZAC and 1218ZAD).”
- 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;
- non-adjusted overlap profit
means the amount of profit that would arise in the overlap period apart from— a Chapter 1 of Part 6A, and b this section.”
- non-banking group relief for carried-forward losses
means group relief for carried-forward losses that relates to losses or other amounts that the surrendering company has for a surrender period in relation to which it is not a banking company. 2 In this section “surrendering company” and “surrender period” have the same meaning as in Part 5A (see section 188FD).”
- non-refundable tax
means— but excluding (in each case) any VAT in respect of which the person is entitled to a refund from the Commissioners by virtue of any provision of VATA 1994.
- non-trading chargeable realisation gain
means a chargeable realisation gain (within the meaning of Part 8 of CTA 2009 (intangible fixed assets)) which is a non-trading credit for the purposes of that Part (see section 746 of that Act), • “realisation” has the meaning given by section 734 of CTA 2009, and • “the relevant gain” means the gain (or amount of a gain) within subsection (3)(a) or (b) or (4). 676DB 1 This section applies for the purposes of this Chapter. 2 The accounting period in which the change in ownership occurs (“the actual accounting period”) is treated as two separate accounting periods (“notional accounting periods”), the first ending with the change and the second consisting of the remainder of the period. 3 Section 702 (apportionment of amounts) applies for the purposes of this Chapter as it applies for the purposes of Chapter 4. 4 The amounts for the actual accounting period in column 1 of the table in section 702(2) are apportioned to the two notional accounting periods in accordance with section 702. 5 In this Chapter, and in sections 702 and 703 as they apply by virtue of subsection (3), “the actual accounting period” and “notional accounting periods” have
- non-UK profits
has the meaning given by section 108. 188BI 1 This section applies in relation to a loss or other amount carried forward to the surrender period if during the loss-making period the surrendering company was a non-UK resident company— a carrying on a trade of dealing in or developing UK land, or b carrying on a trade in the United Kingdom through a permanent establishment. 2 If the surrendering company was established in the EEA during the loss-making period, it may surrender the loss or other amount under this Chapter only so far as conditions A and B are met.
- non-UK tax
has the meaning it has in Part 5 (see section 187), and • “non-UK profits” has the meaning given by section 108. 188BI 1 This section applies in relation to a loss or other amount carried forward to the surrender period if during the loss-making period the surrendering company was a non-UK resident company— a carrying on a trade of dealing in or developing UK land, or b carrying on a trade in the United Kingdom through a permanent establishment. 2 If the surrendering company was established in the EEA during the loss-making period, it may surrender the loss or other amount under this Chapter only so far as conditions A and B are met.
- normal commercial loan
means a loan which is a normal commercial loan for the purposes of section 158(1)(b) or 159(4)(b) of CTA 2010, and • “restricted preference shares” means shares which are restricted preference shares for the purposes of section 160 of CTA 2010. 6 In applying for the purposes of this section the definitions of “normal commercial loan” and “restricted preference shares” in a case where— a C is not a company, or b C is a company which does not have share capital, sections 160(2) to (7) and 161 to 164 of CTA 2010 (and any other relevant provisions of that Act) have effect with the necessary modifications. 7 In this section references to a person receiving any proceeds, amount or assets include— a the direct or indirect receipt of the proceeds, amount or assets, and b the direct or indirect application of the proceeds, amount or assets for the person's benefit, and it does not matter whether the receipt or application is at the time of the disposal, distribution, winding-up or other circumstances or at a later time. 8 If— a there is a direct receipt or direct application of any proceeds, amount or assets by or for the benefit of a person (“A”), and b another per
- 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 meaning given by paragraph 3(1);
- notifiable proposal
has the meaning given by paragraph 3(3);
- Nursing home
means any establishment which exists wholly or mainly for the provision of nursing care— a for persons suffering from sickness, injury or infirmity, or b for women who are pregnant or have given birth. 3 “Residential care home” means any establishment which exists wholly or mainly for the provision of residential accommodation, together with board and personal care, for persons in need of personal care because of— a old age, b mental or physical disability, c past or present dependence on alcohol or drugs, d any past illnesses, or e past or present mental disorder. 4 The activities of a person are not to be taken to fall within section 257MQ(1)(bc) unless that person has an es
- officer
means—
- offshore fund
has the meaning given by section 355 of TIOPA 2010;
- offshore tax non-compliance
has the same meaning as in Schedule 18 to F(No2)A 2017.”
- Ordinary property business
means— a so much of a UK property business as does not consist of the commercial letting of furnished holiday accommodation (within the meaning of Chapter 6) in the UK, or b so much of an overseas property business as does not consist of the commercial letting of furnished holiday accommodation in one or more EEA states. 10 No deduction is allowed for an item of a capital nature incurred on, or in connection with, the provision, alteration or disposal of— a any asset that is not a depreciating asset (see subsections (11) and (12)), b any asset not acquired or created for use on a continuing basis in the property business, c a car (see subsection (20)), d a non-qualifying intangible asset (see subsections (13) to (16)), or e a financial asset (see subsection (17)). 11 An asset is a “depreciating” asset if, on the date the item of a capital nature is incurred, it is reasonable to expect that before the end of 20 years beginning with that date— a the useful life of the asset will end, or b the asset will decline in value by 90% or more. 12 The useful life of an asset ends when it could no longer be of use to any person for any purpose as an asset of a busi
- ordinary residential property
means a dwelling-house or part of a dwelling-house in relation to which an ordinary property business (see subsection (9)) is carried on in the tax year, and b “qualifying land” means land not falling within paragraph (a). 9 “Ordinary property business” means— a so much of a UK property business as does not consist of the commercial letting of furnished holiday accommodation (within the meaning of Chapter 6) in the UK, or b so much of an overseas property business as does not consist of the commercial letting of furnished holiday accommodation in one or more EEA states. 10 No deduction is allowed for an item of a capital nature incurred on, or in connection with, the provision, alteration or disposal of— a any asset that is not a depreciating asset (see subsections (11) and (12)), b any asset not acquired or created for use on a continuing basis in the property business, c a car (see subsection (20)), d a non-qualifying intangible asset (see subsections (13) to (16)), or e a financial asset (see subsection (17)). 11 An asset is a “depreciating” asset if, on the date the item of a capital nature is incurred, it is reasonable to expect that before the
- ordinary shares
means shares in the ordinary share capital of the company invested in.”
- Overlap profit
has the same meaning in this section as it has in Chapter 15 of Part 2 (see sections 204 and 204A). 783AJ 1 This section applies if— a an individual qualifies for partial relief for a tax year, and b the individual's relevant income for the tax year consists of or includes miscellaneous income. 2 The amount of miscellaneous income chargeable to income tax for the tax year is— a the miscellaneous income for the tax year, less b the deductible amount. 3 Subject to section 783AK, the deductible amount is equal to the individual's trading allowance for the tax year. 783AK 1 This section applies where the individual's relevant income for the tax year includes— a receipts of a relevant trade, and b receipts of any other relevant trade or miscellaneous income (or both). 2 The references in section 783AI and (where it applies) section 783AJ to the deductible amount are to amounts which, in total, equal the individual's trading allowance for the tax year. 3 The question of how to allocate the individual's trading allowance for the tax year for the purposes of subsection (2) is to be decided by the individual, subject to subsections (4) and (5). 4 The deductible amount in re
- overseas account
means an account situated outside the United Kingdom;
- Overseas pension scheme
has the same meaning as in Part 4 of that Act. 0 Life assurance businesses A company carrying on life assurance business, if immediately before the disposal its interest in the investing company is held as part of its long-term business fixed capital.
- participator
has the same meaning as in sections 1064 to 1067 (see sections 1068 and 1069). 7B In determining for the purposes of this section the amount of working time that is spent in any place by a participator in the company, time spent by the participator in that place is to be included where— a the time is spent by the participator in providing services to a person other than the company (“the third party”), and b condition A or B is met. 7C Condition A is that the provision of the services results in a payment being made (whether directly or indirectly) to the company by— a the third party, or b a person connected with the third party. 7D Condition B is that— a the company holds a
- partnership
means— a a partnership within the Partnership Act 1890, b a limited partnership registered under the Limited Partnerships Act 1907, c a limited liability partnership formed under the Limited Liability Partnerships Act 2000 or the Limited Liability Partnerships Act (Northern Ireland) 2002, or d a firm or entity of a similar character to either of those mentioned in paragraph (a) or (b) formed under the law of a country or territory outside the United Kingdom.”
- pension scheme
has the same meaning as in Part 4 of FA 2004 (see section 150(1) of that Act).
- period of account
has the same meaning as in Part 10, • “relevant accounting period” has the same meaning as in Part 10, • “relevant income”, in relation to a company, means income— (a) arising from the activities of the company, and (b) accounted for as such under generally accepted accounting practice, before any deduction (whether for expenses or otherwise), • “UK group company” has the same meaning as in Part 10, and • “worldwide group” has the same meaning as in Part 10.”
- plant, property and equipment
has the meaning it has for accounting purposes;
- pool
means— (a) the main pool or a class pool to which qualifying expenditure is allocated under Part 2 of CAA 2001 (see section 54 of that Act), (b) a pool to which qualifying expenditure is allocated under Part 7 of that Act (see section 456 of that Act), or (c) a pool to which qualifying expenditure is allocated under Part 8 of that Act (see section 470 of that Act);
- pre-6 April 2008 income or chargeable gains
means income or chargeable gains for the tax year 2007-8 or any earlier tax year.
- prescribed
includes being prescribed in a document made under a power conferred by regulations made by the Commissioners.
- primary production company
has the meaning given by section 1218ZAC;
- prior relief
means a relief which subsection (5) provides must be given before relief under section 463E. 3 If an accounting period ending within the permitted period begins before it, only a part of the amount which (apart from the relief) would be chargeable under this Part for the period, after giving every prior relief, is available for relief under section 463E. 4 That part is so much as is proportionate to the part of the accounting period in the permitted period. 5 The reliefs which must be given before relief under section 463E are— a relief as a result of a claim under section 459(1)(a) or section 463B(1)(a) (claim for deficit to be set off against total profits for the deficit period), b relief in respect of a loss or deficit incurred or treated as incurred in an accounting period before the deficit period, c relief under Part 6 of CTA 2010 (charitable donations relief in respect of payments made wholly and exclusively for the purposes of a trade), d relief under section 37 of CTA 2010 (losses deducted from total profits of the same or an earlier accounting period), and e if the company is a company with investment business for the purposes of Part 16 (companies with in
- privileged information
means information with respect to which a claim to legal professional privilege, or, in Scotland, to confidentiality of communications, could be maintained in legal proceedings.
- proceeding or other process
includes any civil, criminal or arbitration proceedings, any disciplinary or regulatory proceedings of any kind and any process operated for resolving disputes or adjudicating on complaints, and d references to a proceeding or other process or an investigation include a reference to a proceeding or other process or an investigation that is likely to take place.”