Finance Act 2025 · GlobalLawDB

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Defined terms · 129

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a FOTRA condition
means a condition about exemption from taxation authorised by section 22 of F(No.2)A 1931;
a relevant individual
means—
additional relief
has the meaning given in section 1112J(3) of CTA 2009;
all relevant information
means all of the information described in paragraphs (a) to (d) of paragraph 4(3).”
appropriate authority
means— a in relation to the specification of a territory in regulations, the Treasury, or b in relation to the specification of a territory made by notice, the Commissioners for His Majesty’s Revenue and Customs.”
arrangements
includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable). 735AG 1 This section applies if— a benefits provided as mentioned in section 732(1)(c) are received in a tax year, and b income is treated under section 643A of ITTOIA 2005 as arising to a person in that or a subsequent tax year by reference (direct or indirect) to the whole or part of any benefits so provided. 2 For any tax year after one in which such income is so treated, the amount of income treated as arising to the individual under section 732(2) in respect of benefits provided as mentioned in section 732(1)(c) as a result of the transfer or operatio
associated employments
means employments with the same employer or with associated employers;
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 199
Chapter 3 credit
means an audiovisual expenditure credit in respect of the film or television programme determined under section 1179CA;
chargeable payment
means a loan or advance made by a close company which gives rise to a charge to tax under section 455.”
claim year taxable earnings
means the taxable earnings from the employment in the tax year that are “for” the year for which the claim is made determined in accordance with section 16 and 17;
corresponding property business
means—
cross-border deferred taxes guidance
means Chapter 4.2 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024. 4 Where subsection (2)(b) applies, the cross-border deferred taxes guidance has effect as deferred taxes methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies). 5 This Chapter is to have effect with such modifications as are necessary to give effect to the deferred taxes methodology.”
cross-crediting guidance
means Chapter 3.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024. 5 Where subsection (3)(b) applies, the cross-crediting guidance has effect as cross-crediting regime methodology with all necessary modifications for that purpose (for example, reference to a Five-Year Election is to be read as an election to which paragraph 1 of Schedule 15 (long term elections) applies). 6 This Chapter is to have effect with such modifications as are necessary to give effect to the cross-crediting regime methodology.”
cross-crediting regime methodology
means— a provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the cross-crediting regime methodology, or b where no cross-crediting regime methodology is identified in any such regulations, the methodology described in the cross-crediting guidance. 4 The “cross-crediting guidance” means Chapter 3.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024. 5 Where subsection (3)(b) applies, the cros
de minimis state aid
means aid that is exempted from notification as described in section 1112J(2) of CTA 2009.”
death election
means an election made under section 267ZC in circumstances where Condition B in subsection (4) of that section is met;
deferred taxes methodology
means— a provisions of regulations made under section 262(1)(a) (power to make further provision about the application of provisions of this Part etc) identified in the regulations as the deferred taxes methodology, or b where no deferred taxes methodology is identified in any such regulations, the methodology described in the cross-border deferred taxes guidance. 3 The “cross-border deferred taxes guidance” means Chapter 4.2 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024. 4 Where subsection (2)(b) applies, the cros
devalued tax attribute
means a tax attribute of a member of a multinational group— a whose value is reflected in financial statements of the member at less than the amount of the attribute multiplied by the tax rate that applies to the member, or b whose value would be so reflected if the qualifying arrangements that result in disqualified expense or disqualified tax expense (see paragraph 6B) were ignored. 8 For the purposes of this paragraph and paragraph 6B, arrangements are “qualifying” if— a they were entered into on or after 16 December 2022, or b they were entered into before that date, but— i the arrangements are amended on or after that date (including by way of a substitution of one or more of the parties), ii the performance of rights or obligations under the arrangements is altered on or after that date (for example where payments under the arrangements are reduced or ceased), or iii the accounting treatment of the arrangements is varied on or after that date. 9 In this paragraph and in paragraph 6B reference to the financial statements of a member of a multinational group is— a in relation to an accounting period in which an election under paragraph 3 that applies in
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 U
DIIR
means a tax which— a implements, in a Pillar Two territory, rules relating to top-up tax under the IIR (within the meaning of the Pillar Two rules), and b is designed so that tax charged under it is not limited to tax in respect of members who are located outside that territory.”
eligible body
has the meaning given by Note (1) to Group 6.
environmental management agreement
means a legally enforceable agreement between an occupier or other person with a right in land and a public authority which— (a) is entered into for the purpose of protecting, restoring or enhancing the natural environment, or natural resources, of land or water, and (b) in practice requires the land to be used and managed in a way that would (apart from this section) prevent it from being agricultural property occupied for the purposes of agriculture;
excluded participator
means— a a person that is an excluded participator within the meaning given by section 236J, other than a person who is an excluded participator only as a result of a connection falling within section 286(3) (trustees regarded as connected with settlors etc), or b a company not falling within paragraph (a), if 50% or more of its directors are persons falling within that paragraph. 3 Excluded participators have control of the settlement if one or more excluded participators, acting alone or together without the trustees who are not excluded participators, have power under the trust instrument or by law to— a dispose of, advance, lend, invest, pay or apply settlement property;
financial institution
has the meaning given by paragraph 8 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017;
Flow-through tax benefits
means— a tax credits, other than qualifying refundable tax credits and marketable transferable tax credits, and b the value of amounts of tax deductible losses, that are made available to be used by an investor in a tax equity partnership arrangement under that arrangement (whether or not those credits or losses are used by the investor).”
for the purposes of the 1984 Act
includes for the purposes only of Chapter 3 of Part 3 of that Act (ten-year anniversary charges etc) because of the operation of section 81 of that Act (property moving between settlements).”
foreign employment election
means an election under section 41M of ITEPA 2003,”
foreign gain claim
means a claim under paragraph 1 of Schedule D1;” “• “foreign income claim” means a claim under section 845A of ITTOIA 2005;” “• “qualifying new resident” has the meaning given by section 845B of ITTOIA 2005 (which sets out the circumstances in which an individual will be a qualifying new resident following a period of 10 years of non-residence);”
foreign income claim
means a claim under section 845A of ITTOIA 2005” “• “qualifying new resident” has the meaning it has in Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”
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. 16E 1 For the purposes of paragraphs 16B to 16H a building is a dwelling at any time when— a it is used, or suitable for use, as a dwelling, or b it is in the process of being constructed or adapted for use as a dwelling, and, in each case, it is not an institutional building. 2 Land that at any time is, or is intended to be, occupied or enjoyed with a dwelling as a garden or grounds (including any building or structure) is taken to be part of the dwelling at that time. 3
further transaction
has the same meaning as in paragraph 2 of Schedule 10 to that Act;
holding company
has the same meaning as in section 165 of TCGA 1992 (see section 165A), • “the original shares” has the meaning given by section 126 of TCGA 1992, • “reorganisation” has the meaning given by that section, and • “trading company” and “trading group” have the meaning given by paragraph 1 of Schedule 7ZA to TCGA 1992.
independent training or learning provider
means an institution— (a) at which education or training is provided for persons over compulsory school age (or, in Scotland, school age) but under 19 under a contract with a relevant contracting authority, and (b) where the consideration for the provision falling within paragraph (a) is payable by the relevant contracting authority under that contract.
interest in land
means— a an estate, interest, right or power in or over land, or b the benefit of an obligation, restriction or condition affecting the value of an estate, interest, right or power in or over land, other than an excluded interest. 2 The following interests are “excluded interests”— a any interest or right held for securing the payment of money or the performance of any other obligation, b a licence to use or occupy land, c in relation to land in England and Wales or Northern Ireland, a tenancy at will or an advowson, franchise or manor, and d such other descriptions of interest or right in relation to land as may be specified in regulations made by the Treasury. 3 An interest or right is not within sub-paragraph (2)(a) if it is— a a rentcharge, or b in relation to land in Scotland, a feu duty or a payment mentioned in section 56(1) of the Abolition of Feudal Tenure etc.
investor in a tax equity partnership arrangement
has the same meaning as in section 176D of F(No.2)A 2023.
land
includes pasture and woodland;
licensed company
means a person who holds a licence under section 7 of the Energy Act 2023 (licences for carbon dioxide transport and storage);
lifetime election
means any other election made under section 267ZC. 267ZE 1 This section applies where an election under section 267ZA has effect in relation to a person immediately before 6 April 2025 (whether the election was made before or after that date). 2 The person is treated for the purposes of this Act (so far as would not otherwise be the case)— a as being a long-term UK resident, and b as having been one at all times on and after 6 April 2025. 3 But if the person is not resident in the United Kingdom for a relevant lapse period beginning at any time after the election is made, subsection (2) ceases to apply to them at the end of that period. 4 In subsection (3) “relevant lapse period” means— a if the election was made before 30 October 2024, a period of 4 successive tax years;
long-term UK resident
has the meaning given by sections 6A to 6C;” “• “tax year” means a year beginning with 6 April and ending with the following 5 April;” “• “the tax year 2025-26” means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);”
national authority
has the meaning given by section 95 of the Climate Change Act 2008;
non-FTE entity
means an entity that is not a flow-through entity. 2C If no member of the group is a reference entity in relation to M by virtue of subsection (2A), the ultimate parent of the group is a “reference entity” in relation to M.”
non-UK resident
means not resident in the United Kingdom. 5 For the purposes of this section, a question as to whether the individual was UK resident for the tax year 2012-13 or an earlier tax year is to be determined as it would have been determined for income tax purposes for that tax year (and as to later tax years see Schedule 45 to the Finance Act 2013 (statutory residence test)). 6 See also— a section 6B (which modifies this section in its application to young persons);
Northern Ireland company
means a company whose registered office is in Northern Ireland;
nursery class
means a class that is composed wholly (or almost wholly) of children who— (a) are under compulsory school age or, in Scotland, school age, and (b) would not be expected to attain that age while in that class, and (b) a “higher education course”— (a) in relation to England and Wales, has the meaning given by section 83(1) of the Higher Education and Research Act 2017;
performances of entertainment or sport
includes any activity of a physical kind performed by an individual (alone or with others) which is or may be made available to the public or any section of the public, whether for payment or not. 4 The following are “relevant activities”— a the giving of a performance of entertainment or sport;
Performer
means any individual who gives performances of entertainment or sport. 3 For the purposes of this section “performances of entertainment or sport” includes any activity of a physical kind performed by an individual (alone or with others) which is or may be made available to the public or any section of the public, whether for payment or not. 4 The following are “relevant activities”— a the giving of a performance of entertainment or sport;
post-commencement chargeable period
means— (a) for corporation tax purposes, the accounting period beginning on 1 April 2025 (see paragraph 15), and (b) for income tax purposes, the tax year 2025-26.
pre-commencement chargeable period
means— (a) for corporation tax purposes, a company’s last accounting period to begin before 1 April 2025, and (b) for income tax purposes, the tax year 2024-25;
private school
means an institution which is either— (a) a school— (a) at which full-time education is provided for pupils of compulsory school age or, in Scotland, school age (whether or not such education is also provided for pupils under or over that age), (b) where fees or other consideration are payable for that provision of full-time education, and (c) which is not a nursery school, or (b) an institution— (a) which is wholly or mainly concerned with providing education suitable to the requirements of persons over compulsory school age (or, in Scotland, school age) but under 19, (b) at which full-time education is provided for such persons, (c) where the provision of full-time education falling within sub-paragraph (ii) is wholly or mainly provision in respect of which fees or other consideration are payable, and (d) which is not an independent training or learning provider.
property business
means— a a UK property business, or b an overseas property business.”
protected foreign-source income
means income that— (a) arose under a settlement in any of the tax years 2017-18 to 2024-25, and (b) was protected foreign-source income for that tax year within the meaning of section 628A (as that section had effect for that tax year). • “transitional trust income” means income that— (a) arose under a settlement in any of the tax years 2008-09 to 2016-17, and (b) was transitional trust income throughout the tax years 2017-18 to 2024-25 within the meaning of section 628C (as that section had effect for those tax years). 2 For the purposes of subsection (1) ignore section 648(3) to (5) (foreign income treated as arising under settlement only if and when remitted). 643ZB 1 The rules in sections 624(1) and 629(1) do not apply to protected foreign-source income or transitional trust income (which, by virtue of section 648(3) to (5), may be treated as income arising under the settlement in the tax year 2025-26 or a subsequent tax year). 2 In the following provisions, “income” does not include protected foreign-source income or transitional trust income— • section 635(2) and (3)(d)(i);
public authority
means a person that is in entering the environmental management agreement— (a) exercising public functions, or (b) acting under arrangements with a public authority in relation to the exercise of the authority’s functions. 7 This section does not apply in respect of an environmental management agreement that ended before 6 March 2024.”
qualifying business disposal
has the meaning given by Chapter 3 of Part 5 of TCGA 1992.
Qualifying employment income
means— a qualifying general earnings, b qualifying third party income, and c qualifying securities income. 3 “Qualifying foreign employment income” means— a qualifying foreign general earnings, b qualifying foreign third party income, and c qualifying foreign securities income. 4 Section 41T defines what it means— a for general earnings to be “qualifying general earnings”, and b for qualifying general earnings to be “qualifying foreign general earnings”. 5 Section 41U defines what it means— a for third party income to be “qualifying third party income”, and b for qualifying third party income to be “qualifying foreign third party income”. 6 Section 41V defines what it means— a for securities income to be “qualifying securities income”, and b for qualifying securities income to be “qualifying foreign securities income”. 41P 1 Where an individual has made a foreign employment election, the individual may make a claim for relief for the qualifying year or any subsequent tax year (“a foreign employment relief claim”). 2 Where an individual makes a foreign employment relief claim for a tax year, the individual is entitled to relief that is equal to so much
qualifying foreign asset
means an asset that— (a) is situated outside the United Kingdom, and (b) does not derive at least 75% of its value from UK land (see Schedule 1A);
Qualifying foreign employment income
means— a qualifying foreign general earnings, b qualifying foreign third party income, and c qualifying foreign securities income. 4 Section 41T defines what it means— a for general earnings to be “qualifying general earnings”, and b for qualifying general earnings to be “qualifying foreign general earnings”. 5 Section 41U defines what it means— a for third party income to be “qualifying third party income”, and b for qualifying third party income to be “qualifying foreign third party income”. 6 Section 41V defines what it means— a for securities income to be “qualifying securities income”, and b for qualifying securities income to be “qualifying foreign securities income”. 41P 1 Where an individual has made a foreign employment election, the individual may make a claim for relief for the qualifying year or any subsequent tax year (“a foreign employment relief claim”). 2 Where an individual makes a foreign employment relief claim for a tax year, the individual is entitled to relief that is equal to so much of the net taxable employment income for that year as— a reflects qualifying foreign employment income (see section 41Q), and b is identifi
qualifying foreign gain
means— (a) a chargeable gain accruing on the disposal of a qualifying foreign asset, (b) a chargeable gain treated as accruing as a result of section 3 (gains of non-UK resident close companies attributed to UK residents) where the gain accruing to the non-UK resident close company to which the deemed gain relates accrued on the disposal of a qualifying foreign asset, or (c) a qualifying QAHC gain, but a chargeable gain falling within paragraph (a) or (b) is not a qualifying foreign gain if it is a gain to which paragraph 1(2) of Schedule 1 applies (pre-2025-26 gains subject to the remittance basis);
qualifying foreign loss
has the same meaning as in Schedule D1 (see paragraph 6 of that Schedule).”
qualifying new resident
has the meaning it has in Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act).”
qualifying payment
means a payment of, or on account of, an amount of employment income of the employee that is likely to be qualifying employment income;
qualifying QAHC gain
means the foreign proportion (see paragraph 46(4) to (6) of Schedule 2 to FA 2022) of a chargeable gain accruing on the disposal of shares in a QAHC (within the meaning of that Schedule) other than a chargeable gain to which paragraph 46(3) of that Schedule applies.”
relevant affected income or gains
means— i in a case where section 809VG(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, so much of the affected income or gains as is not treated as being comprised of TRF capital, or ii otherwise, all of the affected income or gains, and b the “relevant proportion” of the portion of the investment means— i in a case where section 809VG(6A) applies to treat some of the affected income or gains as being comprised of TRF capital, the proportion of the portion of the investment that is equal to the proportion of the affected income or gains as is not treated as being comprised of TRF capital, or ii otherwise, the wh
relevant asset
means an asset— a that was disposed of in the relevant tax year, and b that was comprised in the settlement from the beginning of 6 April 2008 until its disposal.”
relevant beneficiary
means a person who— a is a person for whose benefit the trusts permit the property to be applied, and b is a person employed by or holding office with the company mentioned in subsection (1).”
relevant business
means— a a trade, profession or vocation, or b a property business. 845D 1 This section applies where an individual— a has a relievable amount for a tax year in respect of an overseas property business for the purposes of section 274A (reduction for individuals: entitlement), and b makes a foreign income claim, a foreign employment election or a foreign gain claim for the tax year. 2 The individual is not entitled to relief under section 274A for that tax year in respect of that relievable amount. 3 For the purposes of section 274A, the individual’s brought-forward amount for the following tax year in respect of the overseas property business is nil. 845E Where an individual makes a foreign income claim, a foreign employment election or a foreign gain claim for a tax year, the individual is not entitled, for that year, to— a any allowance under Chapter 2 of Part 3 of ITA 2007 (personal allowance and blind person's allowance), b any tax reduction under Chapter 3 of that Part (tax reductions for married couples and civil partners), c any tax reduction under Chapter 3A of that Part (transferable tax allowance for married couples and civil partners), or d any relief
relevant claim
means— (a) a claim under section 152 or 153 of TCGA 1992 (roll-over relief) or a declaration under section 153A of that Act (provisional application of sections 152 and 153), (b) a claim under section 165 of TCGA 1992 (relief for gifts of business assets), or (c) a claim under section 169M of TCGA 1992 (business asset disposal relief).
relevant contracting authority
means the Secretary of State, Medr (Commission for Tertiary Education and Research), the Department for the Economy in Northern Ireland or Skills Development Scotland.
relevant earnings
means— a for service in or after the tax year 2025-26, earnings— i to which section 15 applies, and ii if the employee is a qualifying new resident for the purposes of Chapter 5C of Part 2 for that tax year, which are not qualifying foreign general earnings within the meaning of section 41T (qualifying foreign general earnings), and b for service before tax year 2025-26, earnings to which section 15 applies and to which that section would apply even if the employee made a claim under section 809B of ITA 2007 (claim for remittance basis) for that year.”
relevant foreign income
has the meaning it has in the Income Tax Acts.
relevant lapse period
means— a if the election was made before 30 October 2024, a period of 4 successive tax years;
relevant onshore installation
means any building or structure which—
relevant period
means the period beginning with 6 March 2024 and ending with 5 April 2025.
relevant qualifying employment income
means— a so much of the net taxable employment income for the tax year for which the claim is made as reflects qualifying employment income, and b if the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, so much of any net taxable employment income for any earlier tax year (but not any tax year before the qualifying year) as would reflect qualifying employment income if that earlier year was the year for which the claim was made. 4 If the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, the limit is reduced by the total of any amounts reflecting qualifying foreign employment income that have previously been relieved under section 41P. 5 To determine the amounts mentioned in subsection (3)(a) and (b), apply section 41Q, but as if— a the references in that section to qualifying foreign employment income were to qualifying employment income, b the references in that section to qualifying foreign general earnings were to qualifying general earnings, and c the references in that section to qualifying foreign third party income and qualifying foreign securities i
relevant visual effects expenditure
means UK expenditure that— (a) is incurred in respect of relevant visual effects work carried out in the United Kingdom, and (b) counts as relevant production expenditure for the purposes of section 1179CA(2) (see section 1179DR);
relevant visual effects work
means work consisting of the use of computer technology to create or alter images for inclusion in the film or programme.”
relief requirements
means the requirements set out in section 236H(4) of TCGA 1992 (disposals to employee-ownership trusts), but those requirements have effect for the purposes of this section as if references to “P” were to the person making the disposal whether or not that person is a company. 4 For the purposes of this section, the trustees’ acquisition costs are sums expended by the trustees on— a the acquisition of ordinary share capital in C by the trustees that resulted from the disposal;
remittance provision
means paragraph 2(2) or (5) or paragraph 6(1)(b).
reorganisation
has the meaning given by that section, and • “trading company” and “trading group” have the meaning given by paragraph 1 of Schedule 7ZA to TCGA 1992.
reorganisation of share capital
means a transaction to which section 127 of the 1992 Act (equation of original shares and new holding) applies or would apply but for section 134 of that Act;
required amount
means an amount determined by the Secretary of State in accordance with regulations made under section 30A(5A)(b) or 30B(3A)(b) (as the case may be) of the Energy Act 2008 (amount required to be paid into a decommissioning fund);
residential property
means land consisting of a dwelling-house or part of a dwelling-house in relation to which a UK property business or an overseas property business is carried on in the tax year, and”
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. 2 The question whether or not a person disposes of residential property is determined in accordance with paragraphs 16C to 16G. 16B 1 For the purposes of paragraph 16A the proportion of a chargeable gain attributable to residential property is equal to— a the relevant fraction of the gain, and b if there has been mixed use of the land to which the disposal relates on one or more days in the applicable period, the relevant fraction of the gain as adjusted, on a just and reasonable basis, to take account of the mixed use on the day or days. 2 The relevant fraction is A/B where— • A is the number of days in the applicable period on which the land to which the disposal relates consists of or includes a dwelling, and • B is the total number of days in the applicable period. 3 There is mixed use of land on any day on which the land consists of— a one or more dwellings, and b other land. 4 If the disposal is of an interest in land subsisting under a contract for the acquisition of land consisting o
return
means a return under section 8 of TMA 1970 (personal return), b references to a claim or election being included in a return include a claim or election being so included as a result of an amendment of the return, and c subsections (5) to (7) of section 118 of TMA 1970 (loss of tax brought about carelessly or deliberately) apply as they apply for the purposes of that Act. 41N 1 This section sets out some definitions that apply for the purposes of this Chapter. 2 “Qualifying employment income” means— a qualifying general earnings, b qualifying third party income, and c qualifying securities income. 3 “Qualifying foreign employment income” means— a qualifying foreign general earnings, b qualifying foreign third party income, and c qualifying foreign securities income. 4 Section 41T defines what it means— a for general earnings to be “qualifying general earnings”, and b for qualifying general earnings to be “qualifying foreign general earnings”. 5 Section 41U defines what it means— a for third party income to be “qualifying third party income”, and b for qualifying third party income to be “qualifying foreign third party income”. 6 Section 41V defines what it means— a for sec
ring fence trade
means activities which— (a) fall within the definition of “oil-related activities” in section 16(2) of ITTOIA 2005 or section 274 of CTA 2010, and (b) constitute a separate trade (whether as a result of section 16(1) of ITTOIA 2005 or section 279 of CTA 2010 or otherwise);
section 1(3) amount
has the meaning it has in section 87 of TCGA 1992, and
specified foreign income
means income that would be relevant foreign income if it were the income of a UK resident individual.”
substitute loss carry-forward guidance
means Chapter 4.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024 published by the OECD on 17 June 2024.”
tangible fixed assets
means all tangible assets wherever located, other than cash or cash equivalents or financial assets. 229I 1 This section applies where— a the ultimate parent of a multinational group is not subject to Pillar Two IIR tax for an accounting period, b the group includes a joint venture group, and c the members of the joint venture group are undertaxed in relation to the multinational group for that period. 2 The members of a joint venture group are undertaxed in relation to a multinational group if— a the sum of amounts attributed to responsible members of the multinational group under Chapter 7 in respect of members of the joint venture group’s top-up amount and additional top-up amounts, is less than b the sum of such amounts in respect of the joint venture group that would be attributed under that Chapter to the ultimate parent of the multinational group if it were subject to Pillar Two IIR tax. 3 The amount given by subtracting the amounts mentioned in paragraph (a) of subsection (2) from the amounts mentioned in paragraph (b) of that subsection is an untaxed amount of the joint venture group in relation to the multinational group. 4 Sections 229C to 229F (a
tax purposes
means for the purposes of— (a) corporation tax (including for the purposes of the supplementary charge in respect of ring fence trades and the energy (oil and gas) profits levy);
tax year
means a year beginning with 6 April and ending with the following 5 April;” “• “the tax year 2025-26” means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);”
TFEU
means the Treaty on the Functioning of the European Union as it has effect by virtue of Article 10 of the Windsor Framework;
the actual settlement
means that settlement. 5 This section does not apply in relation to property that is a holding in an authorised unit trust or a share in an open-ended investment company if the occasion first referred to in section 80(1) occurred before 22 July 2020.”
the actual settlor
means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1);
the adjusted profits
means the adjusted profits before the application of section 170.”
the applicable period
means the period— a beginning with the day on which the person making the disposal acquired the interest in land being disposed of or, if later, the day from which the interest in land became chargeable, and b ending with the day before the day on which the disposal occurs. 6 For the purposes of this paragraph an interest in land became “chargeable”— a in any case where the disposal is of an interest in land in the United Kingdom— i by a person in a tax year in which the person is not UK resident, or ii by a person in the overseas part of a tax year which is, as respects the person, a split year, from 6 April 2015, and b in any other case, from 31 March 1982. 7 If the interest in land disposed of by the person results from interests in land acquired by the person at different times, the person is regarded for the purposes of this paragraph as having acquired the interest disposed of at the time of the first acquisition. 16C 1 For the purposes of paragraph 16A a person “disposes of residential property” if the person disposes of an interest in land in a case where— a the land consisted of or included a dwelling at any time falling on or after the date on whic
the appropriate person
means— i the person designated by the employer for the purpose of this section and sections 690B, 690D and 690E and, if no person is so designated, the employer, and ii in a case where section 689 or 689A applies, the references to the employer in sub-paragraph (i) are to be read as references to the relevant person (within the meaning of section 689 or 689A). 690B 1 This section applies where— a a notice given during the mobile tax year under section 690A has effect, and b it appears to an officer of Revenue and Customs that the proportion of any uncertain payment made by the employer to the employee that is treated as not being a payment of PAYE income for the purposes of PAYE regulations should not be the proportion specified in the notice. 2 An officer of Revenue and Customs may give a direction— a for determining a proportion of any uncertain payment made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or b that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations. 3 A direction under subsection (2)— a must specify the employee a
the asset
means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;
the commencement date
means—
the corresponding property activity
means— (a) in relation to a UK furnished holiday lettings business carried on by a person, a UK property business carried on by that person, and (b) in relation to an EEA furnished holiday lettings business carried on by a person, an overseas property business carried on by that person;
the customer
has the same meaning as in section 504 (see subsection (1) of that section) or 504A (see subsection (1) or (2) of that section),”
the financier
has the same meaning as in section 504 (see subsection (1) of that section) or 504A (see subsection (1) or (2) of that section),”
the first relevant period
means the later of— a the first accounting period in which the member is an investor in the tax equity partnership arrangement, and b the first accounting period for which the Pillar Two rules apply to the member.”
the first transaction
has the same meaning as in paragraph 2 of Schedule 10 to that Act;
the Instalment Payment Regulations 1998
means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175).
the leasehold interest
means the interest granted to the lessee under the second transaction;
the onward gift
means the final benefit in the series.
the original shares
has the meaning given by section 126 of TCGA 1992, • “reorganisation” has the meaning given by that section, and • “trading company” and “trading group” have the meaning given by paragraph 1 of Schedule 7ZA to TCGA 1992.
the post-1996 Act FOTRA conditions
means the FOTRA conditions with which 7.25% Treasury Stock 2007 was first issued.
the pre-commencement period
means the period— (a) beginning with 6 March 2024, and (b) ending with the day before the commencement date;
the provision of education services
means a provision of education, vocational training or board and lodging falling within Part 3 of Schedule 9 (exceptions).
the relevant individual
means—
the relevant relieving provision
means section 66(3) of CTA 2010 (relief for losses made in overseas property business).
the relevant time
means— a if the property ceases to meet the condition in subsection (2) at any time before the donor’s death, that time;
the relevant transfer
means the transfer referred to in subsection (1)(a);
the second transaction
has the same meaning as in paragraph 2 of Schedule 10 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017. 8 The reference in subsection (1) to a major interest in land is to be read in accordance with section 68 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017. 9 Where the lessee is an individual, references in subsections (2), (3), (5) and (6) to the lessee are to be read, in relation to times after the death of the lessee, as references to the lessee’s personal representatives.”
the section 170 proportion
means the proportion of the adjusted profits of the flow-through entity for the accounting period that— a in a case where subsection (1) of 170 (adjustments for ultimate parent that is a flow-through entity) applies, is excluded under that subsection, or b in a case where that subsection does not apply as a result of the entity having not made a profit for that period, would be excluded under that subsection if the entity had adjusted profits of 100 euros. 3 In subsection (2), “the adjusted profits” means the adjusted profits before the application of section 170.”
the section 26A requirement
means the requirement of section 26A of ITEPA 2003 (requirement for 3-year period of non-residence).
the settlement
means the settlement referred to in subsection (1)(b)(i) or (ii) (as the case may be);
the settlor
means the settlor of that settlement. 3 For the purposes of subsection (1)(b)(ii), the trustees of a settlement are “indirect participators” in a company if they are participators in the first in a chain of two or more companies where the last company in the chain is the person abroad and where each company in the chain (except the last) is a participator in the next company in the chain. 735AB 1 For the purposes of sections 735AA to 735AF— • “protected foreign-source income”, in relation to the relevant transfer, means income of the person abroad that by reference to the transfer— (a) would have been treated as arising to the settlor under section 721 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 721A (as that section had effect for that tax year), or (b) would have been treated as arising to the settlor under section 728 in any of the tax years 2017-18 to 2024-25 had it not been protected foreign-source income within the meaning of section 729A (as that section had effect for that tax year);
the tax year 2025-26
means the tax year beginning with 6 April 2025 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way);”
the total untaxed benefits
has the same meaning as in section 733(1) (see Step 2).”
the works period
means— a the period when the works were in progress, and b such period (if any) ending immediately before the start of the works throughout which the building was, for reasons connected with the works, not used as dwelling. 4 If at any time when qualifying works are in progress— a the building was undergoing any other work, or put to any other use, in relation to which planning permission or development consent was required but has not (at any time) been granted, or b anything else was being done in contravention of a condition or requirement attached to a planning permission or development consent relating to the building, the works period does not include that time. 5 If
total deductions
means the total amount of any deductions allowed from the taxable earnings from the employment in the tax year under provisions listed in section 327(3) to (5) (see section 11(1)). 41R 1 This section sets out how to determine the limit on the amount of relief the individual is entitled to when making a foreign employment relief claim for a year for the purposes of section 41P(3). 2 The limit is the lesser of— a 30% of the relevant qualifying employment income, and b £300,000. 3 For the purposes of this section “relevant qualifying employment income” means— a so much of the net taxable employment income for the tax year for which the claim is made as reflects qualifying employment income, and b if the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, so much of any net taxable employment income for any earlier tax year (but not any tax year before the qualifying year) as would reflect qualifying employment income if that earlier year was the year for which the claim was made. 4 If the foreign employment relief claim is for a tax year that is subsequent to the qualifying year, the limit is reduced by the total of any amoun
transitional trust income
means income that— (a) arose under a settlement in any of the tax years 2008-09 to 2016-17, and (b) was transitional trust income throughout the tax years 2017-18 to 2024-25 within the meaning of section 628C (as that section had effect for those tax years). 2 For the purposes of subsection (1) ignore section 648(3) to (5) (foreign income treated as arising under settlement only if and when remitted). 643ZB 1 The rules in sections 624(1) and 629(1) do not apply to protected foreign-source income or transitional trust income (which, by virtue of section 648(3) to (5), may be treated as income arising under the settlement in the tax year 2025-26 or a subsequent tax year). 2 In the following provisions, “income” does not include protected foreign-source income or transitional trust income— • section 635(2) and (3)(d)(i);
uncertain payment
means a payment of, or on account of, the income of the employee to the extent that— a the employer is unable to ascertain the extent to which the income is PAYE income, and b the reason for the employer being unable to ascertain that extent is connected to the employee being or having been internationally mobile in the mobile tax year. 5 Subsection (3) is without prejudice to— a any assessment in respect of the income of the employee in question, and b any right to repayment of income tax and any relevant debts overpaid and any obligation to pay income tax underpaid and any relevant debts that remain wholly or partly unpaid. 6 For the purposes of this section and sections 690A to 690E— a any reference to a payment made by the employer includes a reference to a payment made by a person acting on behalf of the employer and at the expense of the employer or a person connected with the employer, and b in a case where section 689 or 689A applies, any reference to a payment made by the employer is to be read as a reference to a payment treated, for the purposes of PAYE regulations, as made by the relevant person. 690A 1 This section applies in relation to an employee
vocational training
has the meaning given by Note (3) to Group 6.
Windsor Framework
means the part of the EU withdrawal agreement known as the Windsor Framework by virtue of Joint Declaration No. 1/2023 of 24th March 2023 made by the European Union and the United Kingdom in the Joint Committee established by the EU withdrawal agreement.”
young person
means an individual who was under the age of 20 immediately before the current tax year. 3 For the purposes of this Act, an individual is not a long-term UK resident at any time in a tax year if they were under the age of 1 (or were not yet born) immediately before the tax year. 6C For the purposes of this Act, a body corporate is a “long-term UK resident” at all times in a tax year if the body— a is incorporated in the United Kingdom, or b was (if in existence before the beginning of the tax year) within the charge to corporation tax on income at any time during the previous tax year by virtue of section 5(1) of the Corporation Tax Act 2009 (UK resident companies).”