- a country or territory with a linked emissions trading scheme
means—
- advance tax clearance
means a clearance under section 266;
- advantage
includes an advantage arising from—
- agricultural property
has the same meaning as in Chapter 2 of Part 5, • “enactment” includes an enactment contained in or made under an Act of the Scottish Parliament, • “specified” means specified by regulations made by the Treasury.”
- AIF
has the meaning given by regulation 3 of the Alternative Investment Fund Managers Regulations 2013 and includes— (a) arrangements which permit an external investor to participate in investments acquired by the AIF without participating in the AIF itself, and (b) arrangements under which sums arise to an individual performing investment management services in respect of the AIF without those sums arising from the AIF itself;
- alternative finance arrangements
has the same meaning as in Part 6 of CTA 2009 (see section 501(2) of that Act), disregarding section 508 of that Act;
- amount of CBAM
includes an amount recoverable on the basis that it is an amount of CBAM.
- anti-avoidance enactment
means—
- appeal
means any appeal under the Taxes Acts;
- appeal court
means—
- appeal period
means— (a) the period during which an appeal could be brought against the determination of an authorised officer or the tribunal, as applicable, or (b) where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of;
- applicable rate
means— a £600, or b where an order has been made under section 306A or 314A (orders about notifiability) in respect of the arrangements or proposal in relation to which the person fails to comply— i £600 for each day falling before the end of the period of ten days beginning with the day on which the order was made, and ii £5,000 for each day falling after the end of that period. 3 This subsection applies where an authorised officer considers that the amount otherwise specified in relation to the provision is inappropriately low. 4 The amount specified for section 313(1) or regulations under section 313(3) is— a £10,000, if the person has failed to comply with the section or regulations on two or more other occasions during the period of 36 months ending with the date of the current failure, b £7,500, if the person has failed to comply with the section or regulations on one other occasion during the period of 36 months ending with the date of the current failure, or c £5,000, in any other case. 5 In subsection (1), a reference to a day on which a person fails to comply with a duty is a reference to a day that— a begins after the day by which the person was require
- approved charitable investment
means an investment— a that is of a type listed in subsection (2) and is made for an allowable purpose, or b that is not of a type listed in subsection (2) but that is approved under subsection (3).”
- approved stamp holder
means a person approved under section 122 (approved stamp holders);
- ARD
means the number of days in the chargeable period on and after the relevant day, and • “CP” means the number of days in the chargeable period.
- arrangements
includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions;
- associated donation
means an associated donation within the meaning of section 809ZMB of ITA 2007 or section 939FB of CTA 2010;
- auction
means an auction under the Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021 (S.I. 2021/484);
- authorised officer
means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purposes of this Chapter;
- authorised officer of Revenue and Customs
means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purpose of this Chapter;
- baseline free allocation percentage
means, in relation to a CBAM sector, the average percentage of sectoral emissions that were covered— (a) in the 2019 scheme year, by free EU ETS allowances, and (b) in the 2022 and 2023 scheme years, by free UK ETS allowances, allocated in the scheme years mentioned here in respect of sub-installations that have a process that serves the production of goods falling within the CBAM sector;
- benefit entitlement
means so much of the value of the notional pension property of the deceased in relation to the scheme as is attributable on a just and reasonable apportionment, having regard to appropriate actuarial assumptions, to benefits that have been paid, or are or will be payable, to that person. 6 Subsection (4) does not apply to the payment of an excluded benefit or an exempt benefit. 7 A withholding notice has effect from the time when it is received by the scheme administrator until the earliest of the following— a any time when it is withdrawn by — i the personal representatives, or ii if the person who gave the notice was a prospective personal representative, that person;
- bingo
includes any version of that game, whatever name it is called;
- borrowing
has the meaning it has in sections 153A and 153B (see section 154).”
- BRD
means the number of days in the chargeable period before the relevant day, • “ARD” means the number of days in the chargeable period on and after the relevant day, and • “CP” means the number of days in the chargeable period.
- business
includes any activity of a government department or other public authority, or of a charity, that is carried out for commercial purposes;
- carbon price
means a monetary amount of a kind described in regulations under subsection (2)(a).
- carried interest
has the same meaning as in section 23I of ITTOIA 2005 (see Part 1 of Schedule A1 to that Act), and b that definition has effect as if references to a sum arising to an individual included a reference to a sum arising to the trustees.”
- certified person
means a person certified under a chemical recycling certification scheme;
- certified promoter
has the meaning given in section 166(3);
- CFC
has the same meaning as in Part 9A of TIOPA 2010. 8 But sub-paragraphs (6) and (7) do not apply if the sum referred to in sub-paragraph (1)(a) arises to the company referred to in sub-paragraph (1)(a)(i) or the person referred to in sub-paragraph (1)(a)(ii) as part of arrangements where— a it is reasonable to assume that in the absence of the arrangements the sum or part of the sum would have arisen to A or an individual connected with A, and b it is reasonable to assume that the arrangements have as their main purpose, or one of their main purposes, the avoidance of a liability to pay income tax, capital gains tax, inheritance tax or corporation tax. 9 The condition in sub-paragraph (8)(b) is to be regarded as met in a case where— a the sum arose from an investment scheme, b the sum is applied directly or indirectly as an investment in an investment scheme, and c the persons providing investment management services to the schemes mentioned in paragraphs (a) and (b) are the same or substantially the same. 10 Section 993 of ITA 2007 (meaning of “connected”) applies for the purposes of this paragraph, but as if— a subsection (4) of that section were omitted, and b partners in a
- closely related
has the meaning that it has in section 1143 (see subsection (2CA) of that section).”
- co-investment repayment or return
means a repayment in whole or in part of, or a return on, a co-investment. 3 Section 993 of ITA 2007 (meaning of “connected”) applies for the purposes of this paragraph but as if— a subsection (4) of that section were omitted, and b partners in a partnership in which the individual is also a partner were not “associates” of the individual for the purposes of sections 450 and 451 of CTA 2010 (“control”). 6 1 In this Part of this Schedule, “profits”, in relation to an investment made for the purposes of an investment scheme, means profits (including unrealised profits) arising from the acquisition, holding, management or disposal of the investment (taking into account items of a revenue nature and items of a capital nature). 2 In this Part of this Schedule a reference to an investment made by a person in an investment scheme is a reference to a contribution by the person (whether by way of capital, loan or otherwise) towards the property subject to the scheme (but does not include a sum committed but not yet invested). 3 For the purposes of sub-paragraph (2) a person who holds a direct or indirect interest in an investment scheme and who acquired t
- collective investment scheme
has the meaning given by section 235 of FISMA 2000 and includes— (a) arrangements which permit an external investor to participate in investments acquired by the collective investment scheme without participating in the scheme itself, and (b) arrangements under which sums arise to an individual performing investment management services in respect of the collective investment scheme without those sums arising from the scheme itself;
- collective money purchase scheme
means (subject to subsection (2)) a collective money purchase scheme within the meaning of Part 1 or 2 of the Pension Schemes Act 2021. 2 A reference in this Part to a collective money purchase scheme is, in relation to a relevant divided pension scheme, a reference to the pension scheme as a whole (and is not a reference to any of its sections considered separately). 3 In this section “relevant divided pension scheme” means a pension scheme which is divided into sections at least one of which is a collective money purchase scheme under subsection (1). 4 For the purposes of this Part a pension scheme is an “unauthorised collective money purchase scheme” if— a the lawful operation of the pension scheme, or (in the case of a relevant divided pension scheme) of any section of it, requires authorisation under Part 1 or 2 of the Pension Schemes Act 2021, and b such authorisation has not been granted, or has been granted but has been withdrawn. 274ZZC 1 The Commissioners for His Majesty’s Revenue and Customs may by regulations amend or otherwise modify any provision of this Part in its application in relation to— a a collective money purchase scheme, or
- Commissioners
means the Commissioners for His Majesty’s Revenue and Customs;
- commodity code
means a code assigned to a classification of goods by the Goods Classification Table.
- company
has the meaning given by section 1121 of CTA 2010;
- conclusion date
means the date of the document notifying the conclusions of the review.
- conditionally relievable occasion
means an occasion on which— i tax is charged under section 64 or 65 in relation to the relevant settlement, and ii section 104(1B) or 116(1B) would apply to reduce the value charged if there were an amount of the 100% trust relief allowance available in relation to it, and b the potentially relievable value, in relation to an occasion on which tax is charged under section 64 or 65, is so much of the value as otherwise would have been charged on that occasion as would be treated as reduced as a result of section 104(1B) or 116(1B) if the 100% trust relief allowance available in relation to it were unlimited. 124H 1 The trust maximum allowance for an occasio
- conduct
includes omissions. 7 In this section and section 72C— • “company” means a body corporate or unincorporated association;
- connected person
means a person who an officer of Revenue and Customs reasonably suspects is or has been—
- consideration
means consideration in money or money’s worth but does not include the performance of any investment management services directly or indirectly in respect of an investment scheme. 3 For the purposes of this Act no other deduction may be made from the amount treated as the profits of the trade under section 23I. 23P 1 In determining whether section 23I applies in relation to an individual, no regard is to be had to any arrangements the main purpose, or one of the main purposes, of which is to secure that that section does not to any extent apply in relation to— a the individual, or b the individual and one or more other individuals. 2 In determining whether an individual falls within paragraph (a) of section 23I(1), no regard is to be had to any arrangements the main purpose, or one of the main purposes, of which is to secure that the individual falls within that paragraph. 23Q 1 Subsection (2) applies where— a an individual performs investment management services directly or indirectly in respect of an investment scheme under arrangements mentioned in section 23I(1)(a), and b the individual is entitled to carried interest under the arrangements. 2 No income tax is c
- consolidated group
means a group within the meaning given by international accounting standards;
- construction industry scheme
means Chapter 3 of Part 3 of FA 2004 and provision made under or in connection with that Chapter;
- consumed fuel
means fuel added to the mixture that is consumed to provide energy for the processing of the mixture;
- consumer prices index
means the all items consumer prices index published by the Statistics Board;
- contract for differences
has the same meaning as in Part 7 of CTA 2009 (see section 582 of that Act);
- contract settlement
has the meaning given by section 25 of CRCA 2005;
- control
has the same meaning as in the Corporation Tax Acts (see section 1124 of CTA 2010);
- controlling equity stake fund
means an investment scheme— a which is not a venture capital fund or significant equity stake fund, and b in relation to which the condition in sub-paragraph (4) is met. 4 The condition is that when the scheme starts to invest it is reasonable to assume that, over the investing life of the scheme— a more than 50% of the total value invested for the purposes of the scheme will be invested in investments which are controlling interests in trading companies or holding companies of trading groups, and b more than 50% of the total value invested for the purposes of the scheme will be invested in investments which are held for 40 months or more. 5 In determining whether sub-paragraph (4)(b) is met in relation to an investment scheme, apply the rule in sub-paragraph (1) to the scheme. 6 For the purposes of this paragraph, in determining whether a controlling equity stake fund has a controlling interest or an interest of a particular percentage in a company, any share capital of the company which is held for the purposes of an associated investment scheme is to be regarded as held for the purposes of the controlling equity stake fund. 28 1 Where a real estat
- controlling interest
has the meaning given in sub-paragraph (3);
- corporation tax relief
has the same meaning as in section 939F;
- CP
means the number of days in the chargeable period.
- credit fund
means an investment scheme— a which is not a venture capital fund, significant equity stake fund, controlling equity stake fund, or real estate fund, and b in relation to which the condition in sub-paragraph (4) is met. 4 The condition is that when the scheme starts to invest it is reasonable to assume that over the investing life of the scheme— a more than 50% of the total value invested for the purposes of the scheme will be invested in debt investments, and b more than 50% of the total value invested for the purposes of the scheme will be invested in investments which are held for 40 months or more. 5 In determining whether sub-paragraph (4)(b) is met in relation to an investment scheme, apply the rule in sub-paragraph (1) to the scheme. 6 For the purposes of this paragraph— a “debt investment” includes an investment in— i any arrangement which produces a return which is economically equivalent to interest within the meaning of Chapter 2A of Part 6 of CTA 2009 (see section 486B(2) of that Act), or ii an asset representing an alternative finance arrangement, a creditor repo, a creditor-quasi repo or a manufactured interest relationship;
- CRS
means the common reporting standard for automatic exchange of financial account information developed by the Organisation for Economic Co-operation and Development, as that standard has effect from time to time.
- currency risk
means a risk which can be attributed to fluctuations in exchange rates between currencies over a period of time;
- Customs procedure
means a procedure set out in section 3(3) of TCTA 2018;
- customs tariff in its standard form
means the customs tariff, as defined in section 8 of TCTA 2018, as it has effect without regard to any provision made under sections 9 to 15 or section 19(4) of that Act;
- debt investment
means an investment in an asset representing a loan relationship or a relevant non-lending relationship (but see paragraph 29(6)(a)). 2 Sub-paragraph (3) applies where an investment in an asset representing a loan relationship is made for the purposes of an investment scheme by money being advanced. 3 The debt investment in the asset representing the loan relationship is to be treated as having been made when there was an unconditional obligation to advance the money. 4 For the purposes of sub-paragraph (3), an obligation is not to be regarded as conditional by reason only that it was contingent on one or more of the following conditions— a a condition the fulfilment of which was outside the control of the scheme or any person connected with the scheme;
- decision
means a decision, determination or direction within sub-paragraph (1) or (2);
- depositary interest
has the meaning given in regulations made under section 119 of the Finance Act 1999 (power to exempt UK depositary interests in foreign securities);
- derivative contract
has the same meaning as in Part 7 of CTA 2009 (but see sub-paragraph (6));
- designated
has the same meaning as for accounting purposes;
- designated officer
means an officer of Revenue and Customs who has been designated by the Commissioners for His Majesty's Revenue and Customs for the purposes of this Part;
- designated person
means a person designated by HMRC with the person’s consent;
- devolved tax
means a devolved tax within the meaning of the Scotland Act 1998 (see section 80A of that Act) or the Government of Wales Act 2006 (see section 116A of that Act);
- digital contact detail
means email address, mobile telephone number or any other contact detail for the purpose of communicating by digital means;
- discovery assessment
means— i an assessment under section 29(1) of TMA 1970, or ii a discovery assessment or discovery determination under Schedule 18 to FA 1998 (company tax returns). 10 See also Chapter 5 for provision about claims by a guarantor (which includes a person making an election under subsection (2)).”
- disqualified under the directors disqualification legislation
has the same meaning as in the Companies Act 2006 (see section 159A of that Act);
- document
includes any part of a document (and see subsection (2));
- double taxation arrangements
means arrangements that have effect under section 2(1) of TIOPA 2010.”
- due date
has the same meaning as in Schedule 25 to FA 2021 (see paragraph 2(4) of that Schedule). 5 The amount of potential lost revenue that is attributable to the sanctionable conduct is— a in a case within sub-paragraph (2)(a), the potential lost revenue in respect of the inaccuracy in question as determined in accordance with paragraphs 5 to 8 of Schedule 24 to FA 2007;
- duty deferment arrangement
means provision made by or under the customs and excise Acts that permits the payment of excise duty to be deferred;
- duty stamp
means a document issued by the Commissioners that—
- emissions
means emissions of greenhouse gases (within the meaning of section 92 of the Climate Change Act 2008) into the atmosphere that are attributable to human activity.
- emissions embodied in a CBAM good
means emissions that are attributable to the production of a CBAM good.
- employee
includes a former employee or individual who was a prospective employee immediately before the shift was cancelled, moved or curtailed, and b employment is to be construed accordingly. 4 Accordingly, for the purposes of applying this section and Part 2 of this Act (charge to tax) to a payment made to a prospective employee by reason of a prospective employment it does not matter whether the prospective employee ever holds the employment. 5 Sections 17 and 30 (treatment of earnings for year in which employment not held) do not apply in connection with determining the year for which amounts are to be treated as earnings under this section. 6 In this section “relevant tax year” means
- enactment
includes an enactment contained in or made under an Act of the Scottish Parliament, • “specified” means specified by regulations made by the Treasury.”
- excepted loan relationship arrangements
means— a any arrangements that would produce debits or credits under Part 5 of CTA 2009 (loan relationships and deemed loan relationships) (“a loan relationship”), or b a loan relationship and a relevant contract (within the meaning of Part 7 of that Act (derivative contracts)) taken together, where the relevant contract is entered into entirely as a hedge of risk in connection with the loan relationship. 217D 1 Provision between the company and the other party has an effective tax mismatch outcome for an accounting period if the corresponding amount is less than 80% of the underlying corporation tax amount. 2 “The underlying corporation tax amount” is the amount determined by multiplying the amount of the unassessed transfer pricing profits by the underlying corporation tax rate (within the meaning of section 217A(4)). 3 “The corresponding amount” means the amount (which may be nil) of relevant tax— a that is due and payable by the other party and that— i where it has been paid, has not been refunded and would not be refunded if all reasonable steps were taken to secure that it was refunded;
- Excess losses
means any losses— a that are reflected in the company’s self assessment, and b that the transfer pricing requirement to which the unassessed transfer pricing profits relate requires to not be brought into account in calculating the company’s profits or loss for the period for corporation tax purposes. 217T 1 In this Part— • “designated officer” means an officer of Revenue and Customs who has been designated by the Commissioners for His Majesty's Revenue and Customs for the purposes of this Part;
- excluded benefit
has the same meaning as in IHTA 1984;
- financial assistance
has the same meaning as in section 939C;”
- financial institution
means— (a) a financial institution under the CRS other than one which is such an institution only because it is an investment entity within section 8(A)(6)(b) of the CRS;
- financial instrument
means— (a) a loan relationship, or (b) a derivative contract;
- financing arrangements
means arrangements made for providing or guaranteeing, or otherwise in connection with, any debt, capital or other form of finance;
- fixed-date qualifying option
means a qualifying option granted before 6 April 2026 that is capable of being exercised on a single date set by reference to its date of grant, and b a reference to an option being varied is a reference to its being varied by written agreement between the person who granted the option and the person entitled to exercise it. 4 Sub-paragraph (2) does not apply in relation to an option if, at the time of variation, the employer company is a specified Northern Ireland company.”
- foreign gain claim
means a claim under paragraph 1 of Schedule D1 to TCGA 1992,”
- foreign tax
means a tax falling within subsection (2) of section 259B (see also subsections (3) and (3ZA) of that section);
- free EU ETS allowance
means an allowance allocated free of charge in accordance with Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emissions allowance trading within the Community and amending Council Directive 96/61/EC;
- free UK ETS allowance
means an allowance allocated free of charge under Part 4A of the UK ETS Order;
- fund of funds
means an investment scheme in relation to which the condition in sub-paragraph (6) is met. 6 The condition is that when the scheme starts to invest it is reasonable to assume that over the investing life of the scheme— a at least 80% of the total value invested for the purposes of the scheme will be invested in— i investment schemes that are independent from the scheme;
- future
has the same meaning as in Part 7 of CTA 2009 (see section 581 of that Act);
- general earnings
means an amount of general earnings specified in the first column of the table, and b the “duties that were not performed”, in relation to general earnings, means the duties specified in the corresponding entry in the second column of the table. 3 Subsection (4) applies to the general earnings from an employment for a tax year if— a it is reasonable to assume that some or all of the duties that were not performed would have been performed in the United Kingdom, or b any duties of the employment performed during that tax year are performed wholly or partly in the United Kingdom. 4 The general earnings are to be treated for the purposes of this Chapter as general earnings in
- genuine commercial arrangements
means arrangements involving A (alone or jointly with others performing investment management services) and external investors in the investment scheme. 11 1 This Part of this Schedule determines when carried interest arising to an individual from an investment scheme is “qualifying carried interest” for the purposes of section 23I. 2 Paragraph 12 contains the general rule, under which the extent to which carried interest is qualifying carried interest depends on the average holding period of the investment scheme. 3 Chapters 2 to 5 of this Part contain further provision relating to average holding periods. 4 Chapter 6 contains an exception to the general rule for carried interest which is treated as being 100% qualifying carried interest. 5 Chapters 7 and 8 contain supplementary and interpretative provision. 6 Nothing in this Part of this Schedule affects the liability to any tax of— a the investment scheme, or b external investors in the investment scheme. 12 1 “Qualifying carried interest” is the relevant proportion of a sum of carried interest arising to an individual from an investment scheme. 2 The relevant proportion is determined by referen
- gross liability
means liability to CBAM before any deduction is made in respect of any entitlements to relief relating to CBAM and repayments of CBAM.
- group relief payment
means a payment— i in relation to which section 183 or 188FA of CTA 2010 applies to the member, and ii that relates to group relief which the member claims under section 130 or 188CB of that Act by virtue of the group condition being met (see sections 132 and 188CE of that Act);
- group undertaking
has the meaning given by section 1161(5) of the Companies Act 2006 (meaning of “undertaking” and related expressions);
- hedged item
means— (a) where the hedging instrument is a derivative contract, an investment made for the purposes of the scheme or a liability representing a loan relationship;
- hedging instrument
means a derivative contract or a liability representing a loan relationship, and • “hedged item” means— (a) where the hedging instrument is a derivative contract, an investment made for the purposes of the scheme or a liability representing a loan relationship;
- held in a pension pot
means available for the purpose of providing benefits to or in respect of one specific member of the scheme;
- HMRC
means His Majesty’s Revenue and Customs;
- household expenses
has the same meaning as in section 316A.”
- identifying information
means any information which identifies a person or an account including, in particular, a company’s registered number, a national insurance number, a unique taxpayer reference, a VAT registration number or any other unique government-issued identifier associated with a person or account.
- Implicit support
means any incidental benefit, in relation to borrowing by a company, that it is reasonable to assume would arise to the company as a result of it having a participatory relationship with one or more other companies.”
- import duty
has the meaning given by section 1 of TCTA 2018;
- import VAT
means value added tax chargeable by virtue of section 1(1)(c) of VATA 1994 (importation of goods into the United Kingdom);
- income tax relief
has the same meaning as in section 809ZM;
- infected blood compensation payment
means a payment that— (a) is made under an infected blood compensation scheme, and (b) is a qualifying payment for the purposes of Schedule 15 to FA 2020 (tax relief for scheme payments etc) by virtue of regulations made under paragraph 2(5) of that Schedule;
- infected blood compensation scheme
means— (a) the infected blood compensation scheme established by virtue of section 49 of the Victims and Prisoners Act 2024, or (b) the scheme known as the Infected Blood Interim Compensation Payment Scheme (a non-statutory scheme established before that mentioned in paragraph (a)).
- information
includes a document (and see subsection (2));
- information notice
means a notice issued under any of sections 179 to 183;
- inheritance tax
includes interest on inheritance tax;
- insolvency office holder
means—
- insolvency practitioner
means— (a) a person who acts as an insolvency practitioner within the meaning of section 388 of the Insolvency Act 1986 or article 3 of the Insolvency (Northern Ireland) Order 1989, or (b) a person in a territory outside the United Kingdom who exercises functions similar to those of a person mentioned in paragraph (a);
- insolvency procedure
means—
- intangible asset
means an asset which falls to be treated as an intangible asset in accordance with generally accepted accountancy practice (within the meaning given by section 1127 of CTA 2010);
- intangible fixed assets
has the meaning it has in Part 8 of CTA 2009.”
- interest rate contract
means— (a) a derivative contract whose underlying subject-matter is, or includes, interest rates, or (b) a swap contract in which payments fall to be made by reference to a rate of interest;
- invalid duty stamp
means—
- investigation of tax avoidance
includes the exercise of a function under an anti-avoidance enactment;
- investment manager
means a person who provides investment management services (which may include or comprise the provision of investment advice). 3 An “investment transaction” means any transaction other than a transaction with an excluded subject matter. 4 The following are excluded subject matters— a land in the United Kingdom, and b any commodity or other physical asset. 5 But a transaction is to be treated as not having an excluded subject matter if— a it is a derivative contract whose subject matter is a commodity but which does not result in the physical delivery of the commodity, or b it is a derivative contract whose subject matter is an excluded subject matter only because it oper
- investment scheme
means— (a) a collective investment scheme, or (b) an AIF, or any part of an AIF, that is not a collective investment scheme;
- investment transaction
means any transaction other than a transaction with an excluded subject matter. 4 The following are excluded subject matters— a land in the United Kingdom, and b any commodity or other physical asset. 5 But a transaction is to be treated as not having an excluded subject matter if— a it is a derivative contract whose subject matter is a commodity but which does not result in the physical delivery of the commodity, or b it is a derivative contract whose subject matter is an excluded subject matter only because it operates by reference to a qualifying index, provided that index is not maintained by a person who is connected to any of the parties to the transaction. 6 F
- loan charge amount
means an amount which— (a) arises in connection with a Schedule 11 or 12 to F(No. 2)A 2017 loan or quasi-loan, (b) is not an amount of inheritance tax, (c) is payable, or becomes payable in the future, to the Commissioners under or by virtue of any enactment or under a contract settlement, and (d) has not yet been paid;
- loan relationship
has the meaning given by section 302(1) of CTA 2009 (but see sub-paragraph (7));
- local enforcement authority
means—
- long-term residence change
means— a the settlor not being a long-term UK resident at the start of the tax year 2025-26, or b the settlor ceasing to be a long-term UK resident at the start of any later tax year.”
- manufactured interest relationship
has the same meaning as in the Corporation Tax Acts (see section 539 of the CTA 2009) (but see sub-paragraph (7));
- Master Trust scheme
means (subject to subsections (2) to (4)) a Master Trust scheme within the meaning of PSA 2017 or PSA(NI) 2021. 2 Any provision of PSA 2017 or PSA(NI) 2021 under which a reference to a Master Trust scheme does not include a section of it that is a collective money purchase scheme (within the meaning of that Act) does not apply for the purposes of subsection (1). 3 Section 1(2) of PSA 2017 and section 1(2) of PSA(NI) 2021 (which restrict the meaning of “Master Trust scheme” in the case of schemes that provide benefits other than money purchase benefits) do not apply for the purposes of subsection (1). 4 Where, by virtue of section 40(2) of PSA 2017 or section 40(2) of PSA(NI) 2021, more than one pension scheme is treated as a single Master Trust scheme for the purposes of that Act, each of those pension schemes is a Master Trust scheme for the purposes of this Part. 5 For the purposes of this Part a pension scheme is an “unauthorised Master Trust scheme” if— a it is a Master Trust scheme the lawful operation of which, or of any section or part of which, requires authorisation under PSA 2017 or PSA(NI) 2021, or b it is not a Master Trust scheme but, by virtue of
- medicinal product
has the meaning given in the Human Medicines Regulations 2012 (S.I. 2012/1916);
- member of the transferor group
means any of the following— (a) the person who transferred the underlying assets as mentioned in subsection (1)(a);
- mobile payment
means a payment of, or on account of, an amount of employment income of the employee in respect of which— i the extent to which the income is PAYE income depends or may depend on the extent to which the employee’s duties during the mobile tax year are performed in the United Kingdom, and ii the reason it depends or may depend on that extent is connected to the employee being or having been internationally mobile in the mobile tax year;
- Modern stamp tax procedures
means any procedure, technology, system or process that could be used for the payment, collection, recovery or other administration of a future tax replacing stamp duty under which the purchaser in relation to a transfer on sale is liable to the tax.
- money debt
means a debt which is a money debt for the purposes of Part 5 of CTA 2009 (see section 303(1) of that Act) or Chapter 2 of Part 6 of that Act (see section 478(3) of that Act);
- monitored promoter
has the meaning given by section 244(5) of FA 2014. 315E 1 The Treasury may by regulations make provision for the purpose of varying any of the amounts specified in section 315 or 315A. 2 Regulations under this section— a must be made by statutory instrument, and b may not be made unless a draft has been laid before and approved by resolution of the House of Commons.”
- motor insurance policy
means a policy of insurance that complies with the requirements of Part 6 of the Road Traffic Act 1988 or, in relation to Northern Ireland, Part 8 of the Road Traffic (Northern Ireland) Order 1981 (S.I. 1981/154 (N.I. 1));
- nominated person
has the meaning given by section 268(2);
- non-PAYE proportion
means the best estimate that can reasonably be made of the overall proportion of the amount of all mobile payments made by the employer to the employee that would not be PAYE income if the employee were non-UK resident for the mobile tax year or the mobile tax year were a split year as respects the employee (as appropriate).”
- non-qualifying person
has the same meaning as in section 206. 206B 1 This section applies where— a a registered pension scheme pays a lump sum death benefit in respect of a deceased member to a non-qualifying person, b a liability to the lump sum death benefits charge arises in respect of the lump sum death benefit, c an amount of inheritance tax that is attributable to the value of notional pension property of the deceased member is paid, d some or all of the inheritance tax paid as mentioned in paragraph (c) is subsequently— i repaid under section 241(1) of that Act to the non-qualifying person, or ii repaid under that section to the deceased’s personal representatives and passed on by the personal representatives to the non-qualifying person, and e in a case in which the payment mentioned in paragraph (c) was made by the non-qualifying person or by the deceased’s personal representatives, the non-qualifying person has made an application under section 206A in relation to the lump sum death benefit. 2 A charge to income tax arises in respect of the relevant amount. 3 In subsection (2) “the relevant amount” means— a in a case in which the payment of inheritance tax mentioned in
- 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.”
- notional pension property
has the same meaning as in IHTA 1984.”
- off-site facility
means a place at which facilities, services or infrastructure are provided (in accordance with an approval or conditions attaching to it) other than a place approved under subsection (1).”
- officer
means—
- option
has the same meaning as in Part 7 of CTA 2009, disregarding section 580(2) of that Act;
- organisation
means a body corporate, partnership or other organisation carrying on a business;
- overseas person
has the meaning given in section 123(8) (United Kingdom representatives);
- ownership or occupation condition
means—
- paid relevant tax
means relevant tax within the meaning of section 217D(9)— i charged (in any period) on profits that correspond to the unassessed transfer pricing profits, and ii that has been paid by the other party and not refunded within the meaning of section 217D(5);
- parent
has the meaning given by section 71H.”
- participator
has the meaning given by section 454 of CTA 2010. 7 In this Chapter— • “arrangements” include any agreement, understanding, scheme transaction or series of transactions (whether or not legally enforceable);
- partnership
includes an entity established under the law of a country or territory outside the United Kingdom of a similar nature to a partnership;
- partnership return
means a return in pursuance of a notice under section 12AA(2) or (3) of TMA 1970 (and where the return has been amended, reference to the return is to that return as amended);
- permitted purpose
means assisting the person to whom the information is disclosed in relation to—
- Pillar Two rules
has the same meaning as in Part 3 of F(No.2)A 2023 (see section 255 of that Act).
- post-review period
means—
- pre-2026 election
means an election which specifies an accounting period ending before 31 December 2025 as— a in the case of an election to which paragraph 1 of Schedule 15 applies, the first accounting period for which the election is to have effect, or b in the case of an election to which paragraph 2 of Schedule 15 applies, the accounting period for which the election is to have effect.”
- pre-6 April 2028 arrangements
means arrangements which are entered into before 6 April 2028.
- pre-6 April 2030 arrangements
means arrangements which are entered into before 6 April 2030.
- preferred return
means a return of not less than the amount that would be payable on the investment by way of interest if— a compound interest were payable on the investment for the whole of the period during which it was invested in the scheme, and b the interest were calculated at a rate of 6% per annum, with annual rests. 3 1 Sub-paragraph (2) applies to consideration that is received or receivable— a by an individual for the disposal, variation, loss or cancellation of the individual’s right to a sum arising from an investment scheme under arrangements by way of profit-related return, or b by a person who is a relevant person in relation to the individual, for the disposal, variation, loss or cancellation of the relevant person’s right to a sum arising from an investment scheme under arrangements by way of profit-related return. 2 The consideration, to the extent that it is not a disguised fee arising to the individual for the purposes of section 809EZA of ITA 2007— a is to be treated as a sum which arises to the individual from the scheme under the arrangements by way of profit-related return at the time of the disposal, variation, loss or cancellation, and b accordingly, is
- prescribed
means prescribed in regulations under this section.
- previously relievable property
means relevant property comprised in the settlement before 6 April 2026 to the extent the value of that property charged on the occasion of that charge would have been treated as reduced by 100% as a result of section 104(1)(a) or 116(2) of IHTA 1984 if the amendments made by this Part of this Schedule had not been made.
- prior requirements
means requirements imposed by regulations under paragraphs 7, 9 and 11 which are required to be complied with before the date on which the Commissioners are satisfied that the person or partnership is digitally excluded.”
- process losses
means material, other than consumed fuel, added to the mixture which is converted to waste products as part of the processing (and which is not withdrawn from the mixture);
- promoter action notice
means a notice issued under subsection (1).
- promotion
has the meaning given in section 160;
- property
includes rights and interests of any description;
- property additional rate
means the rate of income tax of that name determined pursuant to section 6D,” “• “property basic rate” means the rate of income tax of that name determined pursuant to section 6D,” “• “property higher rate” means the rate of income tax of that name determined pursuant to section 6D,” “• “property income” has the meaning given by section 17A,” “• “property trust rate” means the rate of income tax specified in section 9(1A),” “• “savings trust rate” means the rate of income tax specified in section 9(1B),” “• “Welsh property additional rate” means the rate of income tax of that name determined pursuant to section 6B(1A),” “• “Welsh property basic rate” means the rate
- property basic rate
means the rate of income tax of that name determined pursuant to section 6D,” “• “property higher rate” means the rate of income tax of that name determined pursuant to section 6D,” “• “property income” has the meaning given by section 17A,” “• “property trust rate” means the rate of income tax specified in section 9(1A),” “• “savings trust rate” means the rate of income tax specified in section 9(1B),” “• “Welsh property additional rate” means the rate of income tax of that name determined pursuant to section 6B(1A),” “• “Welsh property basic rate” means the rate of income tax of that name determined pursuant to section 6B(1A),” “• “Welsh property higher rate” means th
- property higher rate
means the rate of income tax of that name determined pursuant to section 6D,” “• “property income” has the meaning given by section 17A,” “• “property trust rate” means the rate of income tax specified in section 9(1A),” “• “savings trust rate” means the rate of income tax specified in section 9(1B),” “• “Welsh property additional rate” means the rate of income tax of that name determined pursuant to section 6B(1A),” “• “Welsh property basic rate” means the rate of income tax of that name determined pursuant to section 6B(1A),” “• “Welsh property higher rate” means the rate of income tax of that name determined pursuant to section 6B(1A),”
- property income
has the meaning given by section 17A,” “• “property trust rate” means the rate of income tax specified in section 9(1A),” “• “savings trust rate” means the rate of income tax specified in section 9(1B),” “• “Welsh property additional rate” means the rate of income tax of that name determined pursuant to section 6B(1A),” “• “Welsh property basic rate” means the rate of income tax of that name determined pursuant to section 6B(1A),” “• “Welsh property higher rate” means the rate of income tax of that name determined pursuant to section 6B(1A),”
- property trust rate
means the rate of income tax specified in section 9(1A),” “• “savings trust rate” means the rate of income tax specified in section 9(1B),” “• “Welsh property additional rate” means the rate of income tax of that name determined pursuant to section 6B(1A),” “• “Welsh property basic rate” means the rate of income tax of that name determined pursuant to section 6B(1A),” “• “Welsh property higher rate” means the rate of income tax of that name determined pursuant to section 6B(1A),”
- qualifying charitable donation
has the meaning given in paragraph 5A;”
- qualifying charity-owned company
has the meaning given by section 939C(8) (except that paragraph (b) of that definition does not apply);
- qualifying hedged item
means— a money placed at interest, b securities (excluding shares issued by companies), c an asset representing an alternative finance arrangement, and d a liability representing a loan relationship. 24 1 Where an investment scheme has a controlling interest in a trading company or the holding company of a trading group— a any investment made for the purposes of the scheme in that company after the time when the controlling interest was acquired is to be regarded as having been made at that time, and b any disposal for the purposes of the scheme of an investment in the company after the time the controlling interest was acquired is to be regarded as not being made until a relevant disposal is made. 2 In sub-paragraph (1)(b) “relevant disposal”, in relation to a company, means a disposal which (apart from sub-paragraph (1)) has the effect that the investment scheme ceases to have a 40% interest in the company. 3 For the purposes of this paragraph, in determining whether an investment scheme has a controlling interest or a 40% interest in a company, any share capital of the company which is held for the purposes of an associated investment scheme is to be reg
- qualifying index
means an index relating to an excluded subject matter that— a is publicly available, and b is an index of a substantial number of assets.”
- qualifying input material
means— a recovered material, or b material to which recovered material has been attributed under subsection (2)(c) in connection with an earlier mass balance process. 5 In this section— • “certified person” means a person certified under a chemical recycling certification scheme;
- qualifying investment
means an investment made for the purposes of a fund of funds in an investment scheme (“the underlying scheme”) where it is reasonable to assume that— i the investment is held on substantially the same terms as other investments made by external investors in the underlying scheme, ii the underlying scheme has not made an investment in the fund of funds, iii the underlying scheme is independent from the fund of funds, and iv the investment in the underlying scheme is not part of arrangements the main purpose or one of the main purposes of which is to reward any person involved in providing investment management services to the underlying scheme or a scheme that is not independent from the underlying scheme. 9 For the purposes of this paragraph— a when an investment in an investment scheme is made by subscribing for an interest in the scheme— i the investment is to be treated as having been made where there was an a unconditional obligation to subscribe for the interest, and ii paragraph 19(4) applies for the purposes of determining when such an obligation is not to be regarded as unconditional as if the reference in paragraph 19(4)(b) to the debt investment we
- qualifying investment project
has the meaning given by section 266(2);
- qualifying non-UK pension scheme
has the meaning given in section 271A;” “• “the scheme administrator”, in relation to a registered pension scheme, has the meaning given in section 270 of the Finance Act 2004;”
- qualifying person
has the meaning given by section 266(5).
- qualifying umbrella company payment
means a payment made in respect of the employment of the worker to the extent that it is not in respect of the provision of services to a person other than the client. 4 The umbrella company arrangements conditions are that— a there is a contract between the umbrella company and— i the client, or ii another person, b under or in consequence of the contract— i the services are provided, or ii the umbrella company is paid, or otherwise provided with consideration, for the services, and c if the contract is not between the umbrella company and the client— i there is a contract between the client and another person, ii the provision of the services or of payment or other consideration for the services is also a consequence of that other contract (whether directly or as a result of a series of contracts involving other persons). 5 For the purposes of subsection (1)(b)(ii)— a “material interest”, in relation to a company, means— i beneficial ownership of, or the ability to control, directly or through the medium of other companies or by any other indirect means, more than 5% of the ordinary share capital of the company, ii possession of, or entitleme
- quality
includes timing, nature and extent. 26B 1 Sub-paragraph (2) applies where— a a person is liable to a penalty under paragraph 26, and b in the period of 20 years ending with the day on which the person became liable to the penalty, the person has been assessed to a penalty under that paragraph on more than 1, but fewer than 6, occasions. 2 Paragraph 26 applies in relation to the penalty mentioned in sub-paragraph (1)(a) as if— a each reference to 70% of the potential lost revenue were a reference to 85% of the potential lost revenue, and b the reference in sub-paragraph (3) to £1,000,000 were a reference to £5,000,000. 3 Sub-paragraph (4) applies where— a a person is liable to a penalty under paragraph 26, and b in the period of 20 years ending with the day on which the person became liable to the penalty, the person has been assessed to a penalty under that paragraph on 6 or more occasions. 4 Paragraph 26 applies in relation to the penalty mentioned in sub-paragraph (3)(a) as if— a each reference to 70% of the potential lost revenue were a reference to 100% of the potential lost revenue, and b sub-paragraph (3) (maximum amount) were omitted. 5 For the purposes of sub-para
- quarter
means a period of 3 months ending at the end of March, June, September or December;
- real estate fund
means an investment scheme— a which is not a venture capital fund, significant equity stake fund or controlling equity stake fund, and b in relation to which the condition in sub-paragraph (5) is met. 5 The condition is that when the scheme starts to invest it is reasonable to assume that over the investing life of the scheme— a more than 50% of the total value invested for the purposes of the scheme will be invested in land, and b more than 50% of the total value invested for the purposes of the scheme will be invested in investments which are held for 40 months or more. 6 In determining whether sub-paragraph (5)(b) is met in relation to an investment scheme, apply the rule in sub-paragraph (1) to the scheme. 29 1 Where a credit fund has a significant debt investment— a any debt investment or investment in shares made for the purposes of the fund after the time the significant debt investment was made that is associated with the significant debt investment is to be regarded as having been made at that time, and b any disposal for the purposes of the fund of the significant debt investment or any debt investment or investment in shares associated with the signifi
- recognised stock exchange
has the meaning it has in the Income Tax Acts (see subsection (1) of section 1005 of the Income Tax Act 2007), and subsection (3) of that section (meaning of “listed” on a recognised stock exchange) applies for the purposes of this Act as it applies for the purposes of the Income Tax Acts;”
- registered club
has the same meaning as in Chapter 9 of Part 13 of the Corporation Tax Act 2010. 226B 1 A person (“the taxpayer”) may by notice (a “payment notice”) require the scheme administrator of a registered pension scheme to pay any tax for which the taxpayer is liable and which is attributable to the value of the notional pension property of a deceased member of the scheme. 2 The scheme administrator must pay the amount of tax specified in a payment notice before the end of the period of 35 days beginning with the day on which they receive the notice, unless the notice— a is withdrawn by the taxpayer during that period (and before the amount is paid), or b does not comply with the requirements of subsection (3), or ceases to comply with them during that period (and before the amount is paid). 3 The requirements are— a that the payment notice specifies the amount of tax that it requires to be paid;
- registered keeper
means the person in whose name a vehicle is registered under VERA 1994.”
- registered tax adviser
means a tax adviser who is registered under this Chapter;
- regulatory announcement
means an announcement required by, and made in accordance with, Part 6 rules made under section 73A of FSMA;
- reimbursement arrangements
means arrangements for the purposes of a claim to a repayment of CBAM which—
- relevant amount
means an amount corresponding to an amount within subsection (1)(a) to (f) that the person is liable to pay—
- relevant anti-avoidance penalty
means a penalty under any of the following—
- relevant authority
means— (a) the Department for Work and Pensions, (b) the Ministry of Defence, (c) the Scottish Ministers, or (d) the Department for Communities in Northern Ireland;
- relevant closure notice
means a partial or final closure notice in relation to an enquiry into the company tax return for the accounting period mentioned in subsection (1)(a). 217I 1 This section applies where a designated officer assesses a company’s unassessed transfer pricing profits for an accounting period under section 217H. 2 At any time before the end of the period for amendments, the company may amend its company tax return for the accounting period so that its self-assessment more fully reflects the transfer pricing requirement to which the unassessed transfer pricing profits relate. 3 In this Chapter “the period for amendments” means the period of 15 months beginning with the day after the day on which the designated officer assesses the company’s unassessed transfer pricing profits under section 217H. 4 If, before the end of the period of 15 months referred to in subsection (3), a designated officer and the company agree (in writing) that the period for amendments is to terminate, the period ends when that agreement is made. 5 An amendment under subsection (2) may not be made in the last 21 days of the period for amendments, unless the period for amendments ends by ag
- relevant data
means data that a relevant-data holder is required by regulations under paragraph 1 to provide to HMRC.
- relevant data-holder
has the meaning given in paragraph 1;
- relevant date
has the same meaning as in paragraph 54(6) (see paragraph 54(7)).
- relevant day
has the meaning given in section 87(3);
- relevant determination
means a determination for the purposes of paragraph 26(2) as to—