[F1169SInterpretation of ChapterU.K.
(1)For the purposes of this Chapter “a business” means anything which—
(a)is a trade, profession or vocation, and
(b)is conducted on a commercial basis and with a view to the realisation of profits.
(2)References in this Chapter to a disposal of an interest in shares in a company include a disposal of an interest in shares treated as made by virtue of section 122.
(3)For the purposes of this Chapter “personal company”, in relation to an individual, means a company—
(a)at least 5% of the ordinary share capital of which is held by the individual, and
(b)at least 5% of the voting rights in which are exercisable by the individual by virtue of that holding.
(4)For the purposes of subsection (3) if the individual holds any shares in the company jointly or in common with one or more other persons, the individual is to be treated as sole holder of so many of them as is proportionate to the value of the individual's share (and as able to exercise voting rights by virtue of that holding).
(5)In this Chapter—
“disposal associated with a relevant material disposal” has the meaning given by section 169K,
“disposal of business assets” has the meaning given by section 169I(2),
“disposal of trust business assets” has the meaning given by section 169J,
“employment” has the meaning given by section 4 of ITEPA 2003,
“entrepreneurs' relief” has the meaning given by section 169H(1),
“holding company” has the same meaning as in section 165 (see section 165A),
“material disposal of business assets” has the meaning given by section 169I,
“office” has the meaning given by section 5(3) of ITEPA 2003,
“ordinary share capital” has the same meaning as in the Income Tax Acts (see section 989 of ITA 2007),
“qualifying business disposal” has the meaning given by section 169H(2),
“relevant business asset” has the meaning given by section 169L,
“rent”, in relation to an asset, includes any form of consideration given for the use of the asset,
“securities”, in relation to a company, includes any debentures of the company which are deemed by subsection (6) of section 251 to be securities for the purposes of that section,
“settlement business assets” has the meaning given by section 169J(2),
“trade” has the same meaning as in the Income Tax Acts (see section 989 of ITA 2007), and
“trading company” and “trading group” have the same meaning as in section 165 (see section 165A).]
Textual Amendments
F1Pt. 5 Ch. 3 inserted (with effect in accordance with Sch. 3 para. 5 of the amending Act) by Finance Act 2008 (c. 9), Sch. 3 para. 2 (with Sch. 3 paras. 6-8)