- a disqualifying no gain/no loss disposal
means a UK resident disposal to which section 58, 73 or 258(4) applies. 1O In this Chapter any reference to a person who is, or is not, “UK resident” is to be read in accordance with section 1A(4). 2 1 As a result of section 2(1) and (2) of CTA 2009, corporation tax is charged on chargeable gains accruing to a company on the disposal of assets. 2 The charge to corporation tax on chargeable gains has effect in accordance with this Act and all other relevant provisions of the Corporation Tax Acts. 2A 1 The amount of chargeable gains to be included in a company's total profits for an accounting period is the total amount of chargeable gains accruing to
- a non-UK resident close company
means a company— a which is not resident in the United Kingdom, and b which would be a close company if it were resident in the United Kingdom. 3A 1 A gain accruing to a company on the disposal of an asset is taken to be “connected to avoidance” unless it is shown that neither— a the disposal of the asset by the company, nor b the acquisition or holding of the asset by the company, formed part of a scheme or arrangements of which the main purpose, or one of the main purposes, was avoidance of liability to capital gains tax or corporation tax. 2 A gain is “connected to a foreign trade” if it accrues on the disposal of an asset used only— a for the purposes of
- a right to exercise a dominant influence over the debtor
means a right to give directions with respect to the debtor's operating and financial policies with which it is obliged to comply (whether or not they are for the debtor's benefit). 4 For the purposes of subsection (2)(b) a “write-down event” means— a a permanent release of some or all of the debt, or b a reduction in the amount of the debt (including to nil) in a case where provision is made for the reduction to be temporary (whether on the meeting of conditions or the exercise of a right or otherwise). 5 For the purposes of subsection (2) a “conversion event” means— a the conversion of the loan relationship into shares forming part
- a UK resident disposal
means a disposal by a person (“P”) of an asset which was acquired by P at a time when— a P was resident in the United Kingdom, and b P was not Treaty non-resident. 4 For the purposes of this section “a disqualifying no gain/no loss disposal” means a UK resident disposal to which section 58, 73 or 258(4) applies. 1O In this Chapter any reference to a person who is, or is not, “UK resident” is to be read in accordance with section 1A(4). 2 1 As a result of section 2(1) and (2) of CTA 2009, corporation tax is charged on chargeable gains accruing to a company on the disposal of assets. 2 The charge to corporation tax on chargeable gains has effect in accordance with this
- a wasting asset determination
means a determination whether or not an asset is a wasting asset, as defined for the purposes of Chapter 2 of Part 2 of this Act. 20 1 This paragraph applies if, in calculating a gain or loss accruing to a person in a case where paragraph 3, 7 or 13 is applicable, it is to be assumed that the asset disposed of was acquired on a particular date for a consideration equal to its market value on that date. 2 For the purposes of that calculation— a section 41 (restriction of losses by reference to capital allowances and renewals allowances), and b section 47 (wasting assets qualifying for capital allowances), are to apply in relation to any allowance made in respec
- abandonment programme
has the meaning given by section 29 of the Petroleum Act 1998, and • “relevant onshore installation” has the same meaning as in section 163 of CAA 2001 (see subsection (3C) of that section).
- accounting standard
means any accounting standard issued or recognised by— (a) the Accounting Standards Board (or successor body), or (b) the International Accounting Standards Board (or successor body).”
- AIF
has the meaning given by regulation 3 of the Alternative Investment Fund Managers Regulations 2013, and • “UK REIT” has the same meaning as in Part 12 of CTA 2010. 2 1 In this Schedule “offshore collective investment vehicle” means— a a collective investment vehicle constituted as a body corporate resident outside the United Kingdom, b a collective investment vehicle under which property is held on trust for the participants where the trustees of the property are not resident in the United Kingdom, or c a collective investment vehicle constituted by other arrangements that create rights in the nature of co-ownership where the arrangements take effect as a result of the law of a territo
- allowance
means any capital allowance or renewals allowance. 21 1 An election under any provision of this Schedule must (regardless of section 42(2) of the Management Act) be made by being included in a relevant return relating to the disposal. 2 For the purposes of this paragraph a “relevant return” means— a an ordinary tax return, or b a return under Schedule 2 to the Finance Act 2019. 3 An election under any provision of this Schedule which is made by being included in a return under Schedule 2 to the Finance Act 2019 may be subsequently revoked by provision included in an ordinary tax return which is delivered on or before the filing date for the ordinary tax return. 4 Subject to that,
- appropriate entity
means— a in a case where the collective investment scheme is constituted by two or more persons carrying on a trade or business in partnership, the company, and b in a case where the collective investment scheme is constituted by a CoACS, the CoACS. 5 If an election is made under this paragraph in respect of a collective investment vehicle— a the vehicle is referred to in this Part of this Schedule as “a qualifying fund”, and b any reference in this Part of this Schedule to a qualifying fund, in relation to any time after the election is made (including any time after the election ceases to have effect), is to be read as a reference to the arrangements, undertaking or co
- appropriate proportion
means the proportion that so much of the consideration for the disposal as forms part (directly or indirectly) of the assets of Q bears to the total consideration for the disposal. 5 For the purposes of this paragraph a person has a 40% investment in a company if, applying the rule in paragraph 9 (but without regard to paragraph 10) of Schedule 1A as if references to 25% were references to 40%, the person would be regarded as having a 40% investment in the company immediately before the disposal. 6 In this paragraph— • “the interests in UK land in question” means the interests in UK land taken into account in determining whether the disposal is an indirect disposal o
- arrangement
includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), • “tax advantage” has the meaning given by section 1139 of CTA 2010.
- arrangements
(except in the expression “double taxation arrangements”) includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), • “double taxation arrangements” means arrangements that have effect under section 2(1) of TIOPA 2010, • “tax” means capital gains tax or corporation tax, • “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 o
- assets
has the meaning given in section 21(1) of the 1992 Act, but also includes sterling. 11 Section 36(2) to (3A) applies for the purposes of this section (as if references to section 36(1) or (1A) were to subsection (1) of this section).””
- assets of a pension scheme
means assets held for the purposes of a fund or scheme to which section 271(1)(c) or (1A) applies, and b those assets are “exempt” if, at the time when the gain accrues, a disposal of those assets would be exempt from tax as a result of either of those provisions. 7 This section applies for the purposes of section 3. 3C 1 If— a an amount of tax is paid by a person as a result of section 3 in respect of a gain, and b there is a distribution of an amount in respect of the gain before the end of the relevant period, the amount of tax is applied so as to reduce or extinguish any liability of the person to tax in respect of the distribution. 2 For the purposes of subs
- assumed annual amount
means the amount which would be the annual exempt for the trustees of the principal settlement on the assumption that no election had been made under paragraph 1 of Schedule 4ZA. 3 The annual exempt amount for the trustees of each of the affected settlements is the assumed annual amount unless there are two or more qualifying UK settlements in the affected settlements. 4 In that case, the annual exempt amount for the trustees of each of the affected settlements is the assumed annual amount divided by the number of qualifying UK settlements in the affected settlements.”
- authorised investment fund
means— (a) an open-ended investment company within the meaning of section 613 of CTA 2010, or (b) an authorised unit trust within the meaning of section 616 of that Act, • “business” includes any trade, profession or vocation, • “employer” has the same meaning as in Part 4 of FA 2004 (see section 279(1) of that Act), • “genuine diversity of ownership condition” means— (a) in the case of an offshore fund, the genuine diversity of ownership condition in regulation 75 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), and (b) in the case of an authorised investment fund, the genuine diversity of ownership condition in regulation 9A of the Authorised Investment Fund (Tax) Regulations 2006 (S.I. 2006/964), • “material provision” has the same meaning as in paragraph 2, • “non-UK tax” has the meaning given by section 187 of CTA 2010, • “offshore fund” has the same meaning as in section 354 of TIOPA 2010 (see section 355 of that Act), • “the overseas party” has the meaning given by paragraph 1(2), • “overseas pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(7) of that Act), • “participator” has the same meaning as in Par
- basic life assurance and general annuity business
has the meaning given by section 57 of FA 2012, and • “insurance company” has the meaning given by section 65 of that Act.”
- BLAGAB
means basic life assurance and general annuity business. 34 1 This paragraph applies if— a a gain or loss accrues to a company (“the investing company”) which has ordinary share capital owned by one or more qualifying institutional investors, b some of the gain or loss is not chargeable or allowable as a result of paragraph 16(3), and c some or all of the ownership of the qualifying institutional investors in the investing company is through the company which is Q for the purposes of paragraph 16(3). 2 The ownership of the qualifying institutional investors in the investing company is to be ignored for the purpose of applying the exemption conferred by paragraph 3A of Schedule 7AC s
- building
includes a part of a building, • “development consent” means— (a) in the case of land in the United Kingdom, development consent under the Planning Act 2008, and (b) in the case of land outside the United Kingdom, consent corresponding to development consent under that Act, and • planning permission“— (a) in the case of land in England or Wales, has the meaning given by section 336(1) of the Town and Country Planning Act 1990, (b) in the case of land in Scotland, has the meaning given by section 227(1) of the Town and Country Planning (Scotland) Act 1997, (c) in the case of land in Northern Ireland, has the meaning given by Article 2(2) of the Planning (Northern Ireland) Order 1991, and (d) in the case of land outside the United Kingdom, means permission corresponding to any planning permission in relation to land anywhere in the United Kingdom.
- business
includes any trade, profession or vocation, • “employer” has the same meaning as in Part 4 of FA 2004 (see section 279(1) of that Act), • “genuine diversity of ownership condition” means— (a) in the case of an offshore fund, the genuine diversity of ownership condition in regulation 75 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), and (b) in the case of an authorised investment fund, the genuine diversity of ownership condition in regulation 9A of the Authorised Investment Fund (Tax) Regulations 2006 (S.I. 2006/964), • “material provision” has the same meaning as in paragraph 2, • “non-UK tax” has the meaning given by section 187 of CTA 2010, • “offshore fund” has the same meaning as in section 354 of TIOPA 2010 (see section 355 of that Act), • “the overseas party” has the meaning given by paragraph 1(2), • “overseas pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(7) of that Act), • “participator” has the same meaning as in Part 10 of CTA 2010 (see section 454 of that Act), • “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership
- CFC
has the same meaning as in Part 9A of TIOPA 2010.
- CoACS
means an authorised contractual scheme which is a co-ownership scheme. 13 1 For the purposes of paragraph 12(2), a collective investment vehicle meets the qualifying conditions in this paragraph at any time if, at that time— a it is a collective investment scheme and it meets the genuine diversity of ownership condition, b it is a company (otherwise than as a result of paragraph 4) and it meets the recognised stock exchange condition and the non-close condition, or c it is a collective investment vehicle (of any kind) and it meets the UK tax condition and the non-close condition. 2 For the purposes of paragraph 12(3), a company which is not a collective investment vehicle meets the q
- collective investment vehicle
means— a a collective investment scheme, b an AIF, c a company which is a UK REIT, or d a company which is resident outside the United Kingdom and meets the property income condition. 2 A company meets the property income condition if— a it is not a close company or is a close company but only because it has a qualifying investor as a direct or indirect participator, b at least half of its income is property income from long-term investments, c it distributes all, or substantially all, of its property income from long-term investments and does so on an annual basis, and d it is not liable to tax on that income under the law of any territory in which it is resi
- connected
has the same meaning as in Chapter 12 (see section 842). 879M 1 Section 879O (the partial restrictions on debits) applies in respect of a relevant asset (“the asset concerned”) of a company if— a the company acquires the asset concerned on or after 1 April 2019 as part of the acquisition of a business, b the company also acquires qualifying IP assets as part of the acquisition of the business for use on a continuing basis in the course of the business, and c the amount in subsection (3) is less than 1. 2 But section 879O does not apply in respect of the asset concerned if either of the following sections applies in respect of it— a section 879C (restrictions on debits: pre-FA 2019 relevant assets);
- conversion event
means— a the conversion of the loan relationship into shares forming part of the debtor's ordinary share capital, or b the conversion of the loan relationship into shares forming part of the ordinary share capital of a company (“C”) which, after the conversion, has control of the debtor or would have control of the debtor if C were taken to have all the rights and interests in the debtor of any company connected with C.... 6 For the purposes of subsection (2), a loan relationship makes provision for a qualifying case if— a the provision applies only in the event that there is a material risk of the debtor becoming unable to pay its debts as they fall due, b the provision a
- decommissioning expenditure
means— i expenditure that is incurred, in relation to the oil field mentioned in sub-paragraph (1)(a), for a purpose within section 3(1)(i) or (j) (decommissioning or restoration), and ii is allowable under that section;
- decommissioning loss
means a loss in respect of which—
- deferrable exit charge
has the meaning given by paragraph 4(1)(a);
- deferred exit charge
means the amount of the exit charge to which a plan relates;
- designated HMRC officer
means an officer of Revenue and Customs who has been designated by the Commissioners for Her Majesty's Revenue and Customs for the purpose of revoking elections under paragraph 12. 43 1 The Treasury may by regulations make provision for managers of collective investment vehicles to elect to provide information to an officer of Revenue and Customs in respect of any participant in the vehicle who holds units the disposal of which would constitute an indirect disposal of UK land. 2 The regulations may specify circumstances in which the provision of information or documents in accordance with the regulations is taken to satisfy obligations of the participant (or anyone
- development consent
means— (a) in the case of land in the United Kingdom, development consent under the Planning Act 2008, and (b) in the case of land outside the United Kingdom, consent corresponding to development consent under that Act, and • planning permission“— (a) in the case of land in England or Wales, has the meaning given by section 336(1) of the Town and Country Planning Act 1990, (b) in the case of land in Scotland, has the meaning given by section 227(1) of the Town and Country Planning (Scotland) Act 1997, (c) in the case of land in Northern Ireland, has the meaning given by Article 2(2) of the Planning (Northern Ireland) Order 1991, and (d) in the case of land outside the United Kingdom, means permission corresponding to any planning permission in relation to land anywhere in the United Kingdom.
- disabled person
has the meaning given by Schedule 1A to the Finance Act 2005. 7 If the income from settled property is held for the benefit of a disabled person (“D”) on trusts of the kind described in section 33 of the Trustee Act 1925 (protective trusts), the reference in this paragraph to D's lifetime is to be read as a reference to the period during which the income is held on trust for D. 8 This paragraph applies for the purposes of this Schedule. 4 1 The Treasury may by order— a specify circumstances in which paragraph 3(4)(a) is, or is not, to apply, and b amend the definition of “the de minimis threshold” in paragraph 3(5). 2 The order may— a make different provision for different
- double taxation arrangements
means arrangements having effect under section 2(1) of TIOPA 2010, • “interest in UK land” is to be read in accordance with section 1C, • “the manager”, in relation to a collective investment vehicle, means— (a) any person who is the manager of the property that is the subject of or held by the vehicle, or (b) any other person who has, or is expected to have, day-to-day control of that property, and • “prospectus”, in relation to a collective investment vehicle, means any document (however described) which is made available to investors and which sets out descriptions of the investments to be made, or intended to be made, by the vehicle. 2 For the purposes of t
- dwelling-house
has the meaning given by the regulations;
- earliest period
has the meaning given by paragraph 12(4),
- economically significant activity
has the meaning given by section 13A(4) of the 1992 Act (reading references to a company as references to trustees);
- emergency vehicle
has the same meaning as in section 248A;
- emissions allowance
means an allowance under paragraph 5 of Schedule 2 to the Climate Change Act 2008 relating to a trading scheme dealt with under Part 1 of that Schedule (schemes limiting activities relating to emissions of greenhouse gas).
- employer
has the same meaning as in Part 4 of FA 2004 (see section 279(1) of that Act), • “genuine diversity of ownership condition” means— (a) in the case of an offshore fund, the genuine diversity of ownership condition in regulation 75 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), and (b) in the case of an authorised investment fund, the genuine diversity of ownership condition in regulation 9A of the Authorised Investment Fund (Tax) Regulations 2006 (S.I. 2006/964), • “material provision” has the same meaning as in paragraph 2, • “non-UK tax” has the meaning given by section 187 of CTA 2010, • “offshore fund” has the same meaning as in section 354 of TIOPA 2010 (see section 355 of that Act), • “the overseas party” has the meaning given by paragraph 1(2), • “overseas pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(7) of that Act), • “participator” has the same meaning as in Part 10 of CTA 2010 (see section 454 of that Act), • “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “member” of a partnership is to be construed accord
- enactment
includes an enactment comprised in subordinate legislation;
- equity instrument
has the meaning it has for accounting purposes.
- exit charge
means— (a) for the purposes of paragraph 2, any amount of capital gains tax which a person is liable to pay for a tax year which the person would not be liable to pay if gains arising by virtue of section 25 of the 1992 Act in the tax year were ignored;
- expenditure
means expenditure that is— (a) capitalised for accounting purposes, or (b) recognised in determining the profit or loss of the company concerned without being capitalised for accounting purposes, subject to any adjustments under this Part or Part 4 of TIOPA 2010;
- fair value amount
means an amount representing a change in the fair value of a derivative contract which is recognised in determining a company's profit or loss for a period of account in accordance with generally accepted accounting practice;
- filing date
has the same meaning as in Schedule 18 to FA 1998 (see paragraph 14 of that Schedule).
- finance lease
means— a in relation to any person, a lease that, in accordance with generally accepted accounting practice, falls (or would fall) to be treated in the accounts of that person as a finance lease or loan, or b in relation to a lessee under a right-of-use lease, a lease that would fall to be treated in the accounts of the lessee as a finance lease if the lessee were required under generally accepted accounting practice to determine whether the lease falls to be so treated. 5B In subsection (5A)(b) “right-of-use lease” has the meaning given in Part 2 of CAA 2001 (see section 70YI(1) of that Act).”
- financing costs
has the meaning it has for the purposes of section 330 of CTA 2010 (see section 331 of that Act).
- first activation period
means the first post-acquisition accounting period of the purchaser in which a TTH activation event occurs, and
- foreign asset
means an asset situated outside the United Kingdom. 2 For the purposes of this Schedule any reference to “the remittance basis” applying to an individual for a tax year is to section 809B, 809D or 809E of ITA 2007 applying to the individual for the year. 3 For the purposes of this Schedule any question as to whether, and when, amounts are “remitted to the United Kingdom” is determined in accordance with the rules in Chapter A1 of Part 14 of ITA 2007.”
- franchise
means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls, and • “land” includes— (a) buildings and structures, and (b) land under the sea or otherwise covered by water.
- fuel
includes electrical energy;
- genuine diversity of ownership condition
means— (a) in the case of an offshore fund, the genuine diversity of ownership condition in regulation 75 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), and (b) in the case of an authorised investment fund, the genuine diversity of ownership condition in regulation 9A of the Authorised Investment Fund (Tax) Regulations 2006 (S.I. 2006/964), • “material provision” has the same meaning as in paragraph 2, • “non-UK tax” has the meaning given by section 187 of CTA 2010, • “offshore fund” has the same meaning as in section 354 of TIOPA 2010 (see section 355 of that Act), • “the overseas party” has the meaning given by paragraph 1(2), • “overseas pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(7) of that Act), • “participator” has the same meaning as in Part 10 of CTA 2010 (see section 454 of that Act), • “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “member” of a partnership is to be construed accordingly, • “related individual” and “the resident party” have the meanings given by paragraph
- group UK REIT
has the same meaning as in Part 12 of CTA 2010. 37 1 If— a a person disposes of a right or interest in a company on which a gain or loss accrues, and b proportions of the gain or loss are not chargeable or allowable as a result of the operation of any relevant exemption provision, each relevant exemption provision is to work separately (without regard to the other) in relation to each proportion of the gain or loss to which the relevant exemption provision applies. 2 Accordingly— a each relevant exemption provision is to operate by reference to the whole of the gain or loss (ignoring the effect of the other relevant exemption provision), and b the total proportion of the gain
- higher income tax rate
means— (a) the higher rate or the default higher rate, (b) the savings higher rate, or (c) the dividend upper rate, and • “the unused part of the individual's basic rate band” means the amount by which the basic rate limit exceeds the individual's Step 3 income. 2 If an individual is entitled to relief for a tax year under section 539 of ITTOIA 2005 (contracts for life insurance) by reference to the amount of a deficiency, the individual's Step 3 income for the tax year is treated for the purposes of this section as reduced by the amount of the deficiency. 3 If, as a result of section 669(1) and (2) of ITTOIA 2005 (inheritance tax on accrued income), there is a reduc
- insurance company
has the meaning given by section 65 of that Act.”
- interest in land
means— other than an excluded interest.
- interest in UK land
has the meaning given by section 1C, b “the old assets” and “the new assets” have the same meaning as in section 152, c any reference to a disposal of the old assets includes a disposal of an interest in them, d the reference to the acquisition of the new assets includes the acquisition of an interest in them or entering into an unconditional contract for their acquisition.”
- land
includes— (a) buildings and structures, and (b) land under the sea or otherwise covered by water.
- lease
has the meaning given by paragraph 10 of Schedule 8 to TCGA 1992, • “ordinary tax return” means a return under section 8 or 8A of TMA 1970, • “pension scheme investments” means investments held for the purposes of a registered pension scheme or an overseas pension scheme (and expressions used in this definition have the same meaning as they have in section 271(1A) of TCGA 1992), • “premium” has the meaning given by paragraph 10 of Schedule 8 to TCGA 1992, •... and • “the tax year concerned”, in relation to a disposal, means the tax year in which the disposal is made.
- long funding finance lease
means— a in relation to any person, a long funding lease that meets the finance lease test by virtue of section 70N(1)(a), or b in relation to a lessee, a right-of-use lease which is a long funding lease— i that meets the lease payments test in section 70O or the useful economic life test in section 70P, but ii is not a lease that, before a relevant change of classification, was a long funding operating lease;”
- low-value non-trade interests in UK land
means interests in UK land— a which are not used for trading purposes, and b the total market value of which is, at the time of the disposal, no more than 10% of the total market value at that time of the interests in UK land that are used for trading purposes. 6 1 This paragraph applies if— a there are two or more disposals of rights or interests in companies, b the disposals are linked with each other, c some but not all of the disposals would, apart from this paragraph, be disposals of assets deriving at least 75% of their value from UK land, and d if one of the companies included all of the assets of the others, a disposal of a right or interest
- market value
has the same meaning as in TCGA 1992 and is to be determined in accordance with sections 272 and 273 of that Act (valuation).
- material provision
has the same meaning as in paragraph 2, • “non-UK tax” has the meaning given by section 187 of CTA 2010, • “offshore fund” has the same meaning as in section 354 of TIOPA 2010 (see section 355 of that Act), • “the overseas party” has the meaning given by paragraph 1(2), • “overseas pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(7) of that Act), • “participator” has the same meaning as in Part 10 of CTA 2010 (see section 454 of that Act), • “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “member” of a partnership is to be construed accordingly, • “related individual” and “the resident party” have the meanings given by paragraph 1(2), • “tax advantage” includes— (a) relief or increased relief from income tax or corporation tax, (b) repayment or increased repayment of income tax or corporation tax, (c) avoidance or reduction of a charge or an assessment to income tax or corporation tax, (d) avoidance of a possible assessment to income tax or corporation tax, (e) deferral of a payment of tax or advancement of a repayment of tax
- mid-strength cider
means cider which is not sparkling and is of a strength of not less than 6.9 per cent but not exceeding 7.5 per cent;
- non-resident company
means a company which is not resident in the United Kingdom, • “non-resident group of companies”— (a) in the case of a group none of whose members are resident in the United Kingdom, means that group, and (b) in the case of a group some of whose members are not resident in the United Kingdom, means the members which are not resident in the United Kingdom, and • “group” is to be read in accordance with section 170. 3G 1 If tax payable by a person (“P”) as a result of section 3 is paid by— a the company (“C”) to which the gain accrues, or b a company by reference to which P is regarded as an indirect participator in C, the amount paid is not a payment to P for tax purpos
- non-UK tax
has the meaning given by section 187 of CTA 2010, • “offshore fund” has the same meaning as in section 354 of TIOPA 2010 (see section 355 of that Act), • “the overseas party” has the meaning given by paragraph 1(2), • “overseas pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(7) of that Act), • “participator” has the same meaning as in Part 10 of CTA 2010 (see section 454 of that Act), • “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “member” of a partnership is to be construed accordingly, • “related individual” and “the resident party” have the meanings given by paragraph 1(2), • “tax advantage” includes— (a) relief or increased relief from income tax or corporation tax, (b) repayment or increased repayment of income tax or corporation tax, (c) avoidance or reduction of a charge or an assessment to income tax or corporation tax, (d) avoidance of a possible assessment to income tax or corporation 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 t
- 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 • “qualifying assets” has the meaning given by paragraph 4. 6 The provision made by this paragraph is subject to exceptions provided by— a paragraph 5 (interests in UK land used for trading purposes), and b paragraph 6 (certain disposals of rights or interests in connected companies). 4 1 Subject as follows, all of the assets of the company are qualifying assets. 2 An asset of the company is not a qualifying asset so far as it is matched to a related party liability. 3 But an interest in UK land is a qualifying asset of the company even if it is matched
- offshore collective investment vehicle
means— a a collective investment vehicle constituted as a body corporate resident outside the United Kingdom, b a collective investment vehicle under which property is held on trust for the participants where the trustees of the property are not resident in the United Kingdom, or c a collective investment vehicle constituted by other arrangements that create rights in the nature of co-ownership where the arrangements take effect as a result of the law of a territory outside the United Kingdom. 2 In this paragraph— • “body corporate” does not include a limited liability partnership, and • “co-ownership” is not restricted to the meaning of that term in
- offshore fund
has the same meaning as in section 354 of TIOPA 2010 (see section 355 of that Act), • “the overseas party” has the meaning given by paragraph 1(2), • “overseas pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(7) of that Act), • “participator” has the same meaning as in Part 10 of CTA 2010 (see section 454 of that Act), • “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “member” of a partnership is to be construed accordingly, • “related individual” and “the resident party” have the meanings given by paragraph 1(2), • “tax advantage” includes— (a) relief or increased relief from income tax or corporation tax, (b) repayment or increased repayment of income tax or corporation tax, (c) avoidance or reduction of a charge or an assessment to income tax or corporation tax, (d) avoidance of a possible assessment to income tax or corporation 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, • “tax period” has the meaning given by paragraph 5(7), • “th
- ordinary tax return
means a return under section 8 or 8A of TMA 1970, • “pension scheme investments” means investments held for the purposes of a registered pension scheme or an overseas pension scheme (and expressions used in this definition have the same meaning as they have in section 271(1A) of TCGA 1992), • “premium” has the meaning given by paragraph 10 of Schedule 8 to TCGA 1992, •... and • “the tax year concerned”, in relation to a disposal, means the tax year in which the disposal is made.
- other UK property income
has the meaning it has in Part 2 of CTA 2009.
- overseas pension scheme
has the same meaning as in Part 4 of FA 2004 (see section 150(7) of that Act), • “participator” has the same meaning as in Part 10 of CTA 2010 (see section 454 of that Act), • “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “member” of a partnership is to be construed accordingly, • “related individual” and “the resident party” have the meanings given by paragraph 1(2), • “tax advantage” includes— (a) relief or increased relief from income tax or corporation tax, (b) repayment or increased repayment of income tax or corporation tax, (c) avoidance or reduction of a charge or an assessment to income tax or corporation tax, (d) avoidance of a possible assessment to income tax or corporation 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, • “tax period” has the meaning given by paragraph 5(7), • “the tax reduction” has the meaning given by paragraph 5(2), and • “trust” includes arrangements— (a) which have effect under the law of a country or territory outside t
- overseas person or entity
means—
- participant
means— a in relation to a collective investment scheme or an AIF, a person who takes part in the arrangements or undertaking constituting the scheme or AIF, whether by becoming the owner of, or of any part of, the property that is the subject of or held by the arrangements or undertaking or otherwise, or b in relation to a company within (1)(c) or (d), a shareholder in the company. 6 In this Schedule “unit” means— a in the case of a collective investment scheme or an AIF, the rights or interests (however described) of the participant in the scheme or AIF, or b in the case of a company within (1)(c) or (d), a share in the company. 7 In this paragraph— • “AIF” has the meaning giv
- Participator
has the meaning given by section 454 of CTA 2010. 2 Any reference to a person's interest as a participator in a company is to the interest in it represented by all the factors by reference to which the person is a participator. 3 Any reference to the extent of a person's interest as a participator in a company is to such proportion of the interests as participators of all of the company's participators as, on a just and reasonable basis, is represented by that interest. 4 If— a the interest of a person in a company is wholly or partly represented by an interest under a settlement (“the beneficial interest”), and b the beneficial interest is the factor (or one of them) by refer
- partnership
includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “member” of a partnership is to be construed accordingly, • “related individual” and “the resident party” have the meanings given by paragraph 1(2), • “tax advantage” includes— (a) relief or increased relief from income tax or corporation tax, (b) repayment or increased repayment of income tax or corporation tax, (c) avoidance or reduction of a charge or an assessment to income tax or corporation tax, (d) avoidance of a possible assessment to income tax or corporation 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, • “tax period” has the meaning given by paragraph 5(7), • “the tax reduction” has the meaning given by paragraph 5(2), and • “trust” includes arrangements— (a) which have effect under the law of a country or territory outside the United Kingdom, and (b) under which persons acting in a fiduciary capacity hold and administer property on behalf of other persons, and “beneficiaries”, in relation to such arrangements, is to be con
- parts of the United Kingdom
means— (a) England, (b) Scotland, (c) Wales, and (d) Northern Ireland;
- pension scheme investments
means investments held for the purposes of a registered pension scheme or an overseas pension scheme (and expressions used in this definition have the same meaning as they have in section 271(1A) of TCGA 1992), • “premium” has the meaning given by paragraph 10 of Schedule 8 to TCGA 1992, •... and • “the tax year concerned”, in relation to a disposal, means the tax year in which the disposal is made.
- post-activation period
means a subsequent accounting period of the purchaser.
- post-commencement accounting period
means an accounting period ending after the commencement date.
- pre-April 2019 residual business losses or deficits
means— a allowable losses accruing on disposals made before 6 April 2019, or b deficits or other losses for accounting periods ending before that date, which would otherwise have been deducted from (or taken into account in calculating) profits or gains (of any kind) accruing to residual business of the company. 3 If an accounting period (a “straddling period”) begins before and ends on or after 6 April 2019— a so much of the straddling period as falls before that date, and so much of it as falls on or after that date, are to be treated as separate accounting periods, and b if it is necessary to apportion an amount for the straddling peri
- premium
has the meaning given by paragraph 10 of Schedule 8 to TCGA 1992, •... and • “the tax year concerned”, in relation to a disposal, means the tax year in which the disposal is made.
- prescribed
means prescribed by the regulations.
- primary legislation
means— a an Act, b an Act of the Scottish Parliament, c a Measure or Act of the National Assembly for Wales, or d Northern Ireland legislation. 6 In subsections (2) and (3) and sections 128B and 128C, a reference to a commission, tribunal, court or other person includes a reference to a commission, tribunal, court or other person in a territory outside the United Kingdom. 128B 1 Subsection (2) applies if anything in regulations under section 128A requires the Commissioners for Her Majesty's Revenue and Customs to give effect to an agreement, decision or opinion made or given by— a the Commissioners (or their authorised representative), b the competent authority of a territory outside the United Kingdom, or c any commission, tribunal, court or other person. 2 The Commissioners are to give effect to the agreement, decision or opinion despite anything in any enactment, and any such adjustment as is appropriate in consequence may be made. 3 An adjustment under subsection (2) may be made by way of discharge or repayment of tax, the allowance of credit against tax payable in the United Kingdom, the making of an assessment or otherwise. 128C 1 The obligation as to se
- private travel
means travelling the expenses of which, if incurred and paid by the employee, would not be deductible under Chapter 2 or 5 of Part 5.”
- property income from long-term investments
means income deriving from direct or indirect investments in— a land, or b estates, interests or rights in or over land, which are made on a long-term basis. 5 In this Schedule “participant” means— a in relation to a collective investment scheme or an AIF, a person who takes part in the arrangements or undertaking constituting the scheme or AIF, whether by becoming the owner of, or of any part of, the property that is the subject of or held by the arrangements or undertaking or otherwise, or b in relation to a company within (1)(c) or (d), a shareholder in the company. 6 In this Schedule “unit” means— a in the case of a collective investment schem
- purported return
means anything that— a is in a form, and is delivered in a way, that a corresponding return could have been made and delivered had a relevant notice been given, and b purports to be a return under the relevant section. 5 Nothing in this section affects sections 34 to 36 or any other provisions of the Taxes Acts specifying a period for the making or delivering of any assessment (including self-assessment) to income tax or capital gains tax.”
- qualifying assets
has the meaning given by paragraph 4. 6 The provision made by this paragraph is subject to exceptions provided by— a paragraph 5 (interests in UK land used for trading purposes), and b paragraph 6 (certain disposals of rights or interests in connected companies). 4 1 Subject as follows, all of the assets of the company are qualifying assets. 2 An asset of the company is not a qualifying asset so far as it is matched to a related party liability. 3 But an interest in UK land is a qualifying asset of the company even if it is matched to any extent to a related party liability. 4 An asset of the company is matched to a related party liability if— a the asset consists of a ri
- qualifying deduction
means a deduction which— (a) is made in respect of actual expenditure of the overseas party, (b) does not arise directly from the arrangements, (c) is of a kind for which the resident party would have obtained a deduction in calculating that party's liability to any income tax or corporation tax had that party incurred the expenditure in respect of which the deduction is given, and (d) does not exceed the amount of the deduction that the resident party would have so obtained, • “qualifying loss relief” means any means by which a loss might be used for tax purposes to reduce the amount in respect of which the overseas party is liable to tax on the profits of a business, and • “relevant tax” has the same meaning as in paragraph 5.
- qualifying institutional investors
has the same meaning as in Schedule 7AC. 4 Paragraph 3B of Schedule 7AC (meaning of “ownership”) applies for the purposes of this paragraph as it applies for the purposes of paragraph 3A of that Schedule. 35 1 Nothing in this Part of this Schedule is to exempt so much of any qualifying REIT gain as accrues on a disposal made by a company which is, or is a member of, a UK REIT. 2 A chargeable gain is a “qualifying REIT gain” so far as— a the gain is not a chargeable gain as a result of section 535 or 535A of CTA 2010, and b the gain is not one falling to be exempted as a result of the application of either of those sections following a notice given under s
- qualifying investor
means— a a person who is within any of section 528(4A)(a), (b), (c), (i) or (j) of CTA 2010 where, if the collective investment vehicle mentioned in the provision concerned is a company, it meets the non-close condition or, if not, the vehicle meets the genuine diversity of ownership condition, b a person who is within any other provision of section 528(4A) of that Act, or c a qualifying fund or qualifying company in respect of which an election under paragraph 12 has effect. 4 For the purposes of sub-paragraph (3)(a) a collective investment vehicle meets the genuine diversity of ownership condition at any time if, at that time— a it meets conditions A to C of regulatio
- qualifying IP asset
has the same meaning as in section 879I (see section 879J). 879N 1 Section 879O (the partial restrictions on debits) also applies in respect of a relevant asset of a company if— a the company acquires the asset on or after 1 April 2019 directly or indirectly from an individual or firm (“the transferor”), b the related party condition is met, c the third party acquisition condition is met, and d the amount in subsection (6) is less than 1. 2 But section 879O does not apply in respect of the relevant asset if either of the following sections applies in respect of it— a section 879C (restrictions on debits: pre-FA 2019 relevant assets);
- qualifying loss relief
means any means by which a loss might be used for tax purposes to reduce the amount in respect of which the overseas party is liable to tax on the profits of a business, and • “relevant tax” has the same meaning as in paragraph 5.
- qualifying matter
means—
- qualifying travel
means travel for which a deduction from the employee's earnings would be allowed under Chapter 2 or 5 of Part 5.”
- recognised
means recognised in accordance with generally accepted accounting practice.
- regions of England
has the same meaning as that used by the Office for National Statistics.
- regulations
means regulations under sub-paragraph (1). 3 Regulations may (in particular) make provision of any one or more of the following kinds— a that a vehicle is a taxi capable of zero emissions if the vehicle is of a description specified in regulations;
- relevant accounting period
means a pre-acquisition accounting period of the first purchaser for which there is, immediately before the effective date of the subsequent TTH election, an unused transferred profits amount.
- relevant amount
means— a in a case where this section applies in respect of the relevant asset by reason only of section 879M, the amount in subsection (3) of that section;
- relevant asset
means— a goodwill in a business or part of a business, b an intangible fixed asset that consists of information which relates to customers or potential customers of a business or part of a business, c an intangible fixed asset that consists of a relationship (whether contractual or not) between a person carrying on a business and one or more customers of that business or part of that business, d an unregistered trade mark or other sign used in the course of a business or part of a business, or e a licence or other right in respect of an asset within any of paragraphs (a) to (d). 879B 1 This section applies if a company acquires or creates a relevant asset on or after 1 April 2019. 2 The company is to be treated as having made an election under section 730 to write down the cost of the asset for tax purposes at a fixed rate. 3 In its application in relation to the asset, section 731 (writing down at fixed rate: calculation) has effect as if in subsection (1)(a) for “4%” there was substituted “ 6.5% ”. 4 The Treasury may by regulations amend subsection (3) so as to alter the percentage substituted for 4%. 879C 1 This section applies in respect of a relevant asset of
- Relevant business
means— a in a case where the relevant asset is within paragraph (e) of subsection (2) of section 879A, the business or (as the case may be) the part of the business mentioned in the paragraph of that subsection within which the licensed asset falls, and b in any other case, the business or (as the case may be) the part of the business mentioned in the paragraph of that subsection within which the relevant asset falls. 3 The transferor acquires something in a “third party acquisition” if— a the transferor acquires it from a company (“C”) and, at the time of that acquisition— i if the transferor is an individual, the transferor is not a related party in relation to C, or ii if the transferor is a firm, no individual who is a member of the transferor is a related party in relation to C, or b the transferor acquires it from a person (“P”) who is not a company and, at the time of that acquisition— i if the transferor is an individual, P is not connected with the transferor, or ii if the transferor is a firm, no individual who is a member of the transferor is connected with P. 4 But an acquisition is not a “third party acquisition” if— a its main purpose, or one of it
- relevant change of classification
means a change of accountancy classification as a result of the person adopting a different accounting standard or a change to an accounting standard, and • “accounting standard” means any accounting standard issued or recognised by— (a) the Accounting Standards Board (or successor body), or (b) the International Accounting Standards Board (or successor body).”
- relevant date
means— (a) in a case where the taxpayer (or a person acting on the taxpayer's behalf) delivered a return under the Taxes Acts to HMRC for the year of assessment to which the lost tax relates and in which information relating to the lost tax was required to be provided, the date on which the return was delivered, and (b) in any other case, 31 January in the year of assessment after that to which the lost tax relates;
- relevant EEA state
means an EEA state that is— a a member of the European Union, or b a party to an agreement with the United Kingdom that provides for mutual assistance equivalent to that provided for by Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes.”
- relevant gain
means so much of any chargeable gain accruing on a disposal as falls to be dealt with as mentioned in subsection (6)(a) or (b).”
- relevant instrument or agreement
means an instrument, agreement or arrangement referred to, or of a kind referred to, in section 128A(1);
- relevant non-resident gain
means— (a) a gain that falls to be dealt with by section 1A(3) because the asset disposed of is within paragraph (b) or (c) of that subsection, or (b) a gain that falls to be dealt with by section 1A(1) in accordance with section 1G(2) because the asset disposed of is within section 1A(3)(b) or (c), and • “relevant non-resident loss” means an allowable loss accruing on a disposal which, had a gain accrued instead, would have been a relevant non-resident gain.”
- relevant non-resident loss
means an allowable loss accruing on a disposal which, had a gain accrued instead, would have been a relevant non-resident gain.”
- Relevant notice
means a notice under paragraph 3 requiring the company to deliver a return for the relevant period. 4 In sub-paragraph (1)(a) “purported return” means anything that— a is in a form, and is delivered in a way, that a corresponding return could have been made and delivered had a relevant notice been given, and b purports to be a company tax return. 5 Nothing in this paragraph affects paragraph 46 or any other provisions of the Taxes Acts specifying a time limit for the making of an assessment.”
- relevant onshore installation
has the same meaning as in section 163 of CAA 2001 (see subsection (3C) of that section).
- relevant overseas information
means information which is provided to HMRC by an authority in a territory outside the United Kingdom under— a any provision of EU law relating to any tax, or b an agreement to which the United Kingdom and that territory are parties, with or without other parties. 9 This section is subject to any provision of this Act which allows for a longer period for the bringing of proceedings.”
- Relevant payment
means a payment of unlawful ACT that—
- relevant proportion
means—
- relevant purposes
means— a the purposes of this Schedule, and b the purpose of applying section 1A(3)(b) or (c) or 2B(4) (and the other provisions of this or any other Act so far as relevant to their application) in relation to the vehicle. 4 This paragraph does not apply to a collective investment vehicle in relation to which an election has effect under Part 3 of this Schedule (election for transparency). 5 This paragraph applies in relation to a collective investment vehicle to which section 103D applies (tax transparent funds) but does not affect the operation of the rules set out in— a section 103D(4) to (9) (calculation of gains on disposal of units etc), or b section 103DA (share po
- relevant remedy
means a remedy for the loss of use of the amount of the relevant payment during the period mentioned in section 85(3)(a) (or during some similar period).
- relevant return
means— a an ordinary tax return, or b a return under Schedule 2 to the Finance Act 2019. 3 An election under any provision of this Schedule which is made by being included in a return under Schedule 2 to the Finance Act 2019 may be subsequently revoked by provision included in an ordinary tax return which is delivered on or before the filing date for the ordinary tax return. 4 Subject to that, an election under any provision of this Schedule is irrevocable. 5 All such adjustments are to be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under any provision of this Schedule. 6 For th
- relevant share issue
means an issue of shares by the company where— (a) the shares are issued by the company for consideration consisting wholly of cash, and (b) the shares are subscribed, and issued, for genuine commercial reasons and not as part of arrangements the main purpose, or one of the main purposes, of which is to secure a tax advantage to any person, and • “relevant value” means— (a) in relation to an asset consisting of shares, an amount equal to the consideration that would be apportioned to the asset if, immediately before the relevant share issue, the whole of the issued share capital of the company were sold for a consideration equal to its market value at that time, or (b) in relation to any other asset, its market value at the time of the relevant share issue. 6 For the purposes of the definition of “relevant share issue” in subsection (5)— • “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and • “tax advantage” means— (a) relief or increased relief from tax, (b) repayment or increased repayment of tax, (c) the avoidance or reduction of a charge to tax or an assessment to ta
- relevant tax
has the same meaning as in paragraph 5.
- relevant tax legislation
means any enactment relating to a relevant tax.
- relevant time
means a time after the chargeable transfer but before— a the date on which an account under section 216 is delivered to HMRC in relation to the chargeable transfer, or b any later date on which an account under section 217 is so delivered. 6 Where lost tax involves an offshore transfer, the cases in which the transfer makes the lost tax significantly harder to identify include any case where, because of the transfer— a HMRC was significantly less likely to become aware of the lost tax, or b HMRC was likely to become aware of the lost tax only at a significantly later time. 7 But proceedings may not be brought under this section if— a before the last date on which the proceedi
- relevant value
means— (a) in relation to an asset consisting of shares, an amount equal to the consideration that would be apportioned to the asset if, immediately before the relevant share issue, the whole of the issued share capital of the company were sold for a consideration equal to its market value at that time, or (b) in relation to any other asset, its market value at the time of the relevant share issue. 6 For the purposes of the definition of “relevant share issue” in subsection (5)— • “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and • “tax advantage” means— (a) relief or increased relief from tax, (b) repayment or increased repayment of tax, (c) the avoidance or reduction of a charge to tax or an assessment to tax, or (d) the avoidance of a possible assessment to tax, and for the purposes of this definition “tax” means capital gains tax, corporation tax or income tax. 7 In this Chapter— a references to “the notional disposal” are references to the disposal mentioned in subsection (4)(a), b references to “the notional gain” are references to the chargeable gain mentioned in subs
- residential property gain
means so much of a chargeable gain accruing to a person on a disposal of residential property as, in accordance with paragraph 16B, is attributable to that property.
- restricted preference shares
means shares which are restricted preference shares for the purposes of section 160 of CTA 2010. 6 In a case where C is a company which does not have share capital, in applying for the purposes of this paragraph the definitions of “normal commercial loan” and “restricted preference shares”— a sections 160(2) to (7) and 161 to 164 of CTA 2010, and b any other relevant provisions of that Act, have effect with the necessary modifications. 7 In this paragraph 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
- retained profits amount
means the amount of the difference between the amount of the seller's ring fence profits for the earliest period and the transferred profits amount for that period.
- Revenue and Customs official
means— (a) a Commissioner for Her Majesty's Revenue and Customs;
- right to freedom of establishment
means a right protected by— (a) Article 49 of the Treaty on the Functioning of the European Union, or (b) Article 31 of the EEA agreement;
- right-of-use lease
has the meaning given in Part 2 of CAA 2001 (see section 70YI(1) of that Act).”
- section 1259 purposes
means the purposes of determining under section 1259 the amount of profits or losses to be allocated to a partner in a firm. 7 Section 148 of TIOPA 2010 (when the participation condition is met) applies for the purposes of subsection (4) as it applies for the purpose of section 147(1)(b) of TIOPA 2010. 879F 1 For the purposes of this Chapter a relevant asset of a company (“C”) is a pre-FA 2019 relevant asset if— a the relevant asset was created on or after 29 October 2018, b C acquired the relevant asset on or after 1 April 2019 from a person (“the transferor”) who was a related party in relation to C at the time of the acquisition, c the value of the relevant asset derives in whole or in part from another asset (“the other asset”), and d the other asset meets the preserved status condition (see section 879G). 2 But if only part of the value of the relevant asset derives from the other asset— a the relevant asset is to be treated for the purposes of this Chapter as if it were two separate assets— i one representing the part of the value of the relevant asset that does so derive, and ii the other representing the part of the value of the relevant asset that d
- security
includes further security.”
- settled
means settled by agreement;
- share
has the meaning given by section 476(1) of CTA 2009.”
- shared ownership lease
has the same meaning as in paragraph 4A. 15B 1 This paragraph applies where— a a shared ownership trust is declared, and b no election is made for tax to be charged in accordance with paragraph 9. 2 For the purpose of determining whether the second condition in paragraph 1 of Schedule 6ZA is met in respect of the declaration, the chargeable consideration for the declaration is to be treated as being the sum specified in the trust in accordance with paragraph 7(4)(f). 3 If relief is claimed in respect of the declaration under paragraph 1 of Schedule 6ZA no tax is chargeable in respect of any rent-equivalent payment treated by reason of paragraph 11(b) as rent.”
- shares in C
includes— a stock, and b any other interests of members in C. 4 For the purposes of this paragraph a person is an equity holder in C if the person possesses any of the equity in C. 5 For the purposes of this paragraph— • “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 a case where C is a company which does not have share capital, in applying for the purposes of this paragraph the definitions of “normal commercial loan” and “restricted preference shares”—
- specified
means specified in a notice published by Her Majesty's Revenue and Customs (and different information may be specified for different purposes).”
- standard inflation adjustment amount
means the amount (if any) by which the relevant proportion of the estimate of the decommissioning costs for the TTH oil field would be increased if an adjustment for the purposes of taking account of inflation were made on the basis specified by Her Majesty's Revenue and Customs for the purposes of this paragraph.
- tax
means capital gains tax, corporation tax or income tax. 7 In this Chapter— a references to “the notional disposal” are references to the disposal mentioned in subsection (4)(a), b references to “the notional gain” are references to the chargeable gain mentioned in subsection (3)(b), and c references to shares in or securities of a company include references to interests in such shares or securities. 169SD 1 An individual who makes an election under section 169SC may also elect that, for the purposes of this Act— a no chargeable gain or allowable loss is to be treated as accruing to the individual on the notional disposal, but b a chargeable gain calculated in accordance with this section is to be treated as accruing to the individual on any subsequent disposal by the individual of one or more assets consisting of shares in or securities of the company (in addition to any gain or loss that actually accrues on that disposal). 2 The chargeable gain treated as accruing to the individual on a subsequent disposal is the amount resulting from the following steps— • Step 1 Attribute the notional gain to each of the classes of shares in or securities of the company which are the subje
- tax advantage
has the meaning given by section 1139 of CTA 2010.
- tax period
has the meaning given by paragraph 5(7), • “the tax reduction” has the meaning given by paragraph 5(2), and • “trust” includes arrangements— (a) which have effect under the law of a country or territory outside the United Kingdom, and (b) under which persons acting in a fiduciary capacity hold and administer property on behalf of other persons, and “beneficiaries”, in relation to such arrangements, is to be construed accordingly.
- taxpayer
has the meaning given by paragraph 4(2);
- the amendment provisions applicable to ordinary tax returns
means sections 9ZA and 9ZB of TMA 1970.
- the applicable period
means the period—
- the appropriate portion
means the proportion which— a the consideration for the actual disposal, or b the amount of the receipt, bears to the amount of the deemed gain. 5 If some of the deemed gain has accrued on one or more previous occasions, the appropriate portion is restricted so that, when added to the appropriate portion or portions on the previous occasion or occasions, it does not exceed 100%. 6 In determining the appropriate proportion, so much (if any) of the consideration for the actual disposal or the amount of the receipt as exceeds the amount of the deemed gain is to be ignored. 7 In the case of a disposal under paragraph 21, the remainder of the deemed gain is treated as ac
- the CGT enactments
means the enactments relating to capital gains tax. 2F 1 This Act as it has effect in accordance with this Chapter is not to be affected in its operation by the fact that capital gains tax and corporation tax are distinct taxes. 2 But this Act is, so far as it is consistent with the Corporation Tax Acts, to apply in relation to capital gains tax and corporation tax on gains as if they were one tax. 3 Accordingly, a matter which in a case involving two individuals is relevant to both of them in relation to capital gains tax is in a similar case involving an individual and a company— a relevant to the individual in relation to capital gains tax, and b relevant to the compa
- the change of accounting policy provisions
means Chapter 14 of Part 3 and sections 261 and 262 of CTA 2009 (adjustment on change of basis), and • “right-of-use lease” has the meaning given by section 494 of TIOPA 2010 (other interpretation).
- the change of basis provisions
means—
- the Commissioners
means the Commissioners for Her Majesty's Revenue and Customs;
- the de minimis threshold
means— a £3,000, or b 3% of the maximum value of the settled property during the tax year, whichever is the lower. 6 In this paragraph “disabled person” has the meaning given by Schedule 1A to the Finance Act 2005. 7 If the income from settled property is held for the benefit of a disabled person (“D”) on trusts of the kind described in section 33 of the Trustee Act 1925 (protective trusts), the reference in this paragraph to D's lifetime is to be read as a reference to the period during which the income is held on trust for D. 8 This paragraph applies for the purposes of this Schedule. 4 1 The Treasury may by order— a specify circumstances in which paragraph 3(4)(
- the discovery provisions
means section 29 of TMA 1970 and the other provisions of that Act relating to that section.
- the Disregard Regulations
means the Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004 (S.I. 2004/3256), and • “the first relevant period” and “relevant derivative contract” have the meaning given by regulation 6A(5) of the Disregard Regulations.
- the enactments relating to stamp duty
means the Stamp Act 1891 and any enactment amending that Act or that is to be construed as one with that Act.
- the enquiry provisions
means sections 9A and 28A of TMA 1970 and the other provisions of that Act so far as they relate to those sections.
- the instalments period
means the period— a beginning immediately after— i the company ceases to be resident in the United Kingdom (in the case of a Part 1 company), or ii the occurrence of the PE qualifying event in respects of the asset or liability concerned (in the case of a Part 2 company), and b ending with the day on which the final instalment of the ECPP tax is due under paragraph 11. 14 1 This paragraph applies if— a a partial trigger event occurs in relation to an exit charge asset or liability during the instalments period, and b a trigger event has not previously occurred in relation to that asset or liability during that period. 2 A partial trigger event occurs in relation to a
- the interests in UK land in question
means the interests in UK land taken into account in determining whether the disposal is an indirect disposal of UK land, and • “the company in question”, in relation to a disposal of a right or interest in a company by the person, means that company. 7 If an officer of Revenue and Customs considers that the operation of this paragraph would otherwise result in the total proportion of a gain that is not a chargeable gain exceeding the whole of the gain, the officer may make such adjustments to the appropriate proportion of a gain accruing to any person as the officer considers just and reasonable to prevent that result. 17 1 An election under paragraph
- the overseas party
has the meaning given by paragraph 1(2), • “overseas pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(7) of that Act), • “participator” has the same meaning as in Part 10 of CTA 2010 (see section 454 of that Act), • “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “member” of a partnership is to be construed accordingly, • “related individual” and “the resident party” have the meanings given by paragraph 1(2), • “tax advantage” includes— (a) relief or increased relief from income tax or corporation tax, (b) repayment or increased repayment of income tax or corporation tax, (c) avoidance or reduction of a charge or an assessment to income tax or corporation tax, (d) avoidance of a possible assessment to income tax or corporation 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, • “tax period” has the meaning given by paragraph 5(7), • “the tax reduction” has the meaning given by paragraph 5(2), and • “trust” includes arrangements— (a) whi
- the ownership period
means the period beginning with the day on which the person acquired the interest disposed of or, if later, 31 March 1982 and ending with the day on which the disposal is made. 10 1 This paragraph applies if— a a person makes an election under paragraph 8 in respect of a disposal on which a gain accrues, and b it is necessary to determine, in accordance with Schedule 1B, how much of the gain is a residential property gain. 2 Paragraph 2 of Schedule 1B has effect as if— a sub-paragraphs (5) and (6) of that paragraph were omitted, and b in that paragraph, “the applicable period” had the definition given by the next sub-paragraph. 3 “The applicable period” means the perio
- the post-5 April 2015 period
means the day beginning with 6 April 2015 and ending with the day on which the disposal is made, and • “the ownership period” means the period beginning with the day on which the person acquired the interest disposed of or, if later, 31 March 1982 and ending with the day on which the disposal is made. 10 1 This paragraph applies if— a a person makes an election under paragraph 8 in respect of a disposal on which a gain accrues, and b it is necessary to determine, in accordance with Schedule 1B, how much of the gain is a residential property gain. 2 Paragraph 2 of Schedule 1B has effect as if— a sub-paragraphs (5) and (6) of that paragraph were omitted, and b in
- the provisions of this Act relating to tax avoidance
means—
- the relevant acquisition date
means the earliest date on which— a an interest in UK land, or b a right or interest in a company that is UK property rich, forms part of the property that is the subject of or held by the vehicle. 3 An election under paragraph 8 is irrevocable. 10 1 This paragraph applies if an election under paragraph 8 has effect in relation to an offshore collective investment vehicle. 2 The election is treated as having no effect for the purposes of this Act in relation to any units in the vehicle which are held by an insurance company for the purposes of its long-term business. 11 1 This paragraph applies if— a an election under paragraph 8 has effect in relation to an o
- the relevant period
means the period of 3 years from the end of whichever of the following periods is earlier— a the period of account of the company in which the gain accrued, and b the period of 12 months beginning with the date on which the gain accrued. 4 The amount of tax paid by a person as a result of section 3 is allowable as a deduction in calculating a chargeable gain accruing on the disposal by the person of any asset representing the person's interest as a participator in the company. 5 An amount of tax— a is not to be used more than once under this section (whether to reduce or extinguish a liability or as a deduction or a combination of those things), and b is not to be appli
- the relevant proportion
means the proportion that the interest in the TTH oil field which is the TTH asset bears to the purchaser's other interests in the TTH oil field or, if the proportion cannot reasonably be determined on that basis, such other proportion determined on a just and reasonable basis.
- the relevant time
means the time at which the deemed disposal is made. 5 If this paragraph applies as result of sub-paragraph (1)(c), “the relevant time” is the time at which the amount is treated as accruing. 26 1 A person who fails to comply with paragraph 25 is liable to a penalty not exceeding £3,000. 2 If— a there is a failure to comply with that paragraph, and b there are two or more persons who are the relevant fund managers each of whom is subject to the duty to notify under that paragraph, the total amount of the penalties to which those managers (taken together) are liable is not to exceed £3,000. 3 If a person becomes liable to a penalty under this paragraph, an officer of Reven
- the required notification
means notification under paragraph 25 of Schedule 5AAA to TCGA 1992 in relation to the disposal deemed to have been made as a result of paragraph 21 or 22 of that Schedule.
- the Revenue determination provision
means section 28C of TMA 1970.
- the spreading period
has the same meaning as in paragraph 13.
- the tax reduction
has the meaning given by paragraph 5(2), and • “trust” includes arrangements— (a) which have effect under the law of a country or territory outside the United Kingdom, and (b) under which persons acting in a fiduciary capacity hold and administer property on behalf of other persons, and “beneficiaries”, in relation to such arrangements, is to be construed accordingly.
- the works period
means—
- trade
includes a profession or vocation.”
- Trade loss relief provisions
means 37 to 44 of CTA 2010 (trade losses: carry back relief etc).
- treaty shopping case
means a case where this paragraph applies as a result of sub-paragraph (1)(b).”
- trigger event
has the same meaning as in paragraph 13.”
- trust
includes arrangements— (a) which have effect under the law of a country or territory outside the United Kingdom, and (b) under which persons acting in a fiduciary capacity hold and administer property on behalf of other persons, and “beneficiaries”, in relation to such arrangements, is to be construed accordingly.
- unit
means— a in the case of a collective investment scheme or an AIF, the rights or interests (however described) of the participant in the scheme or AIF, or b in the case of a company within (1)(c) or (d), a share in the company. 7 In this paragraph— • “AIF” has the meaning given by regulation 3 of the Alternative Investment Fund Managers Regulations 2013, and • “UK REIT” has the same meaning as in Part 12 of CTA 2010. 2 1 In this Schedule “offshore collective investment vehicle” means— a a collective investment vehicle constituted as a body corporate resident outside the United Kingdom, b a collective investment vehicle under which property is held on trust for the participants where th
- unlawful ACT
means advance corporation tax that was unlawfully levied.
- unlisted securities
means chargeable securities that are not listed securities within the meaning of section 48 (SDRT: listed securities and connected persons).
- untaxed income
has the meaning given by section 854(6) of ITTOIA 2005.
- unused transferred profits amount
has the same meaning as it has for the purposes of Steps 1 and 2 of paragraph 44 (see paragraph 46).
- up-labelled container
means— i a container which is up-labelled as a container of strong cider as mentioned in subsection (1)(b), or ii a container which is up-labelled as a container of mid-strength cider as mentioned in subsection (1A)(b), and b references to the labelling for any container are references to anything on— i the container itself, ii a label or leaflet attached to or used with the container, or iii any packaging used for or in association with the container.”
- vehicle
means a vehicle— (a) to which Chapter 2 applies (see section 235), and (b) which is neither a taxable car nor a taxable van, and • “workplace parking” has the meaning given by section 237(3).”
- voucher
means an instrument (in physical or electronic form) in relation to which the following conditions are met. 2 The first condition is that one or more persons are under an obligation to accept the instrument as consideration for the provision of goods or services. 3 The second condition is that either or both of— a the goods and services for the provision of which the instrument may be accepted as consideration, and b the persons who are under the obligation to accept the instrument as consideration for the provision of goods or services, are limited and are stated on or recorded in the instrument or the terms and conditions governing the use of the instrument. 4 The third condition is that the instrument is transferable by gift (whether or not it is transferable for consideration). 5 The following are not vouchers— a an instrument entitling a person to a reduction in the consideration for the provision of goods or services;
- workplace parking
has the meaning given by section 237(3).”
- write-down event
means— a a permanent release of some or all of the debt, or b a reduction in the amount of the debt (including to nil) in a case where provision is made for the reduction to be temporary (whether on the meeting of conditions or the exercise of a right or otherwise). 5 For the purposes of subsection (2) a “conversion event” means— a the conversion of the loan relationship into shares forming part of the debtor's ordinary share capital, or b the conversion of the loan relationship into shares forming part of the ordinary share capital of a company (“C”) which, after the conversion, has control of the debtor or would have control of the debtor if C were taken to have all the