In this Act “the Tax Acts”, except so far as the context otherwise requires, means this Act and all other provisions of the Income Tax Acts and the Corporation Tax Acts.

In this Act—

• F1“CTA 2009” means the Corporation Tax Act 2009;

• F2“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003;

• F3“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;

• F4“ITA 2007” means the Income Tax Act 2007;

• “the Management Act” means the Taxes Management Act 1970;

• “the 1968 Act” means the Capital Allowances Act 1968;

• “the 1970 Act” means the Income and Corporation Taxes Act 1970; and

• “the 1979 Act” means the Capital Gains Tax Act 1979.

• F5“the 1990 Act” means the Capital Allowances Act 1990.

• F6“the 1992 Act” means the Taxation of Chargeable Gains Act 1992.

Section 1 of the M2Family Law Reform Act 1987, the paragraph inserted in Schedule 1 to the M3Interpretation Act 1978 by paragraph 73 of Schedule 2 to that Act and section 1(3) of the M4Law Reform (Parent and Child) (Scotland) Act 1986 (legal equality of illegitimate children) shall be disregarded in construing references in this Act to a child or to children (however expressed).

M5This Act, so far as it relates to capital gains tax, shall be construed as one with the F71992 Act.

Any reference in this Act to a section, Part or Schedule is a reference to that section, Part or Schedule of or to this Act, unless the context otherwise requires.

F68M6In the Corporation Tax Acts, except in so far as the context otherwise requires—

• “Act” includes an Act of the Parliament of Northern Ireland and a Measure of the Northern Ireland Assembly;

• F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “authorised unit trust” has the meaning given by section 468(6);

• F69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “the Board” means the Commissioners of Inland Revenue;

• “body of persons” means any body politic, corporate or collegiate, and any company, fraternity, fellowship and society of persons whether corporate or not corporate;

• “building society” means a building society within the meaning of the M7Building Societies Act 1986;

• “capital allowance” means any allowance under F49the Capital Allowances Act (including enactments which under this Act are to be treated as contained in that Act);

• F50“the Capital Allowances Act” means the Capital Allowances Act 2001;

• “chargeable gain” has the same meaning as in the F321992 Act;

• “chargeable period” means an accounting period of a company or a year of assessment;

• “close company” has the meaning given by sections 414 and 415;

• “collector” means any collector of taxes;

• “company” means, subject to subsection (2) below, any body corporate or unincorporated association but does not include a partnership, a local authority or a local authority association;

• “distribution” has the meaning given by Part VI with section 418;

• F60“estate in land”, in relation to any land in Scotland, includes the land;

• “farm land” means land in the United Kingdom wholly or mainly occupied for the purposes of husbandry, but excluding any dwelling or domestic offices, and excluding market garden land, and “farming” shall be construed accordingly;

• F52“for accounting purposes” means for the purposes of accounts drawn up in accordance with generally accepted accounting practice;

• F41“franked investment income” means income of a company resident in the United Kingdom which consists of a distribution in respect of which the company is entitled to a tax credit (and which accordingly represents income equal to the aggregate of the amount or value of the distribution and the amount of that credit);

• F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F53“generally accepted accounting practice” F56has the meaning given by section 50(1) of the Finance Act 2004;

• F43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “inspector” means any inspector of taxes;

• F72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F57“international accounting standards” has the meaning given by section 50(2) of the Finance Act 2004;

• F51F73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F33“local authority association” has the meaning given by section 519;

• F34F74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “market garden land” means land in the United Kingdom occupied as a nursery or garden for the sale of the produce (other than land used for the growth of hops) and “market gardening” shall be construed accordingly;

• “notice” means notice in writing F44F75. . . ;

• F58“offshore installation” has the meaning given by section 837C;

• F39“open-ended investment company", and “authorised corporate director", “owner of shares" and “scheme property" in relation to an open-ended investment company, have the meanings given by subsection (10) of section 468, read with subsections (11) to (18) of that section, as those subsections are added by regulation 10(4) of the Open-ended Investment Companies (Tax) Regulations 1997;

• “ordinary share capital”, in relation to a company, means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the company;

• F90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F54“period of account”—

  1. a

     in relation to a person, means any period for which the person draws up accounts, and

  2. b

     in relation to a trade, profession, vocation or other business means any period for which accounts of the business are drawn up;

• F55“permanent establishment”, in relation to a company, has the meaning given by section 148 of the Finance Act 2003;

• F76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F77“property investment LLP” has the meaning given by section 842B;

• “qualifying distribution” has the meaning given by section 14(2);

• “qualifying policy” means a policy of insurance which is a qualifying policy for the purposes of Chapter I of Part VII;

• F35F78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F66“registered pension scheme” has the meaning given by section 150(2) of the Finance Act 2004;

• F61F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F37F91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F67“scheme administrator”, in relation to a pension scheme, has the meaning given by section 270 of the Finance Act 2004 (but see also sections 271 to 274 of that Act);

• F48F80. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F40F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F40F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F40F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F65F82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F62“tax credit” means—

  1. a

     a tax credit under section 231 F83. . . ; and

  2. b

     F84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “trade” includes every trade, manufacture, adventure or concern in the nature of trade;

• F92“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal

• F59“UK generally accepted accounting practice” has the meaning given by section 50(4) of the Finance Act 2004;

• F63F85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “unit holder” has the meaning given by section 468(6);

• F86“unit trust scheme” has the same meaning as in the Income Tax Acts (see section 1007 of ITA 2007);

• “year of assessment” means, with reference to any income tax, the year for which such tax was granted by any Act granting income tax;

• “the year 1988-89” means the year of assessment beginning on 6th April 1988, and any corresponding expression in which two years are similarly mentioned means the year of assessment beginning on 6th April in the first-mentioned of those two years;

and a source of income is within the charge to corporation tax or income tax if that tax is chargeable on the income arising from it, or would be so chargeable if there were any such income, and references to a person, or to income, being within the charge to tax, shall be similarly construed.

M8 The definition of “company” is subject to section 468, and does not apply in the following provisions of this Act, that is to say—

• Chapter I of Part XVII;

• sections 774 to 777;

• section 839;

• paragraph 15 of Schedule 3;

(and also does not apply where the context otherwise requires because some other definition of “company” applies).

Chapter 2 of Part 9 of ITA 2007 (which relates to settlements and trustees) applies for the purposes of the Corporation Tax Acts as it applies for the purposes of the Income Tax Acts.

M9Except so far as the context otherwise requires, in the Tax Acts, and in any enactment passed after 12th March 1970 which by any express provision is to be construed as one with the Tax Acts, the Corporation Tax Acts or the Income Tax Acts, “tax”, where neither income tax nor corporation tax is specified, means either of those taxes.

F93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Any reference in the F88Corporation Tax Acts to franked investment income received by a company apply to any such income received by another person on behalf of or in trust for the company, but not to any such income received by the company on behalf of or in trust for another person.

F89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For the purposes of the Corporation Tax Acts, except in so far as the context otherwise requires—

• “accounting date” means the date to which a company makes up its accounts F97. . . ;

• “accounting period” shall be construed in accordance with F106Chapter 2 of Part 2 of CTA 2009;

• C2“allowable loss” does not include, for the purposes of corporation tax in respect of chargeable gains, a loss accruing to a company in such circumstances that if a gain accrued the company would be exempt from corporation tax in respect of it F102F104does not include a loss accruing to a company in such circumstances that if a gain accrued the company would be exempt from corporation tax in respect of it.;

• “branch or agency” means any factorship, agency, receivership, branch or management;

• F107“the charge to corporation tax on income” has the same meaning as in CTA 2009 (see section 2(3));

• F100“chargeable profits”, in relation to a company that is not resident in the United Kingdom—

  1. a

     for corporation tax purposes generally, has the meaning given by F108section 19 of CTA 2009, and

  2. b

     for the purposes of Chapter 4 of Part 17 (controlled foreign companies), has the meaning given by section 747(6);

• “charges on income” has the meaning given by section F98338A;

• F99“derivative contract” has the same meaning as it has for the purposes of F109Part 7 of CTA 2009;

• “the financial year 1988” means the financial year beginning with April 1988, and similarly with references embodying other dates;

• “group relief” has the meaning given by section 402;

• F110“income” includes anything to which the charge to corporation tax on income applies;

• F95“loan relationship” has the same meaning as it has for the purposes of F111Part 5 of CTA 2009;

• “non-trading deficit”, in relation to a company’s loan relationships, shall be construed in accordance with F112section 301 of CTA 2009;

• F113“registered industrial and provident society” means—

  1. a

     a society registered or treated as registered under the Industrial and Provident Societies Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969, or

  2. b

     an SCE formed in accordance with Council Regulation (EC) No 1435/2003 on the Statute for a European Co-Operative Society;

• F101“statutory insolvency arrangement” means—

  1. a

     a voluntary arrangement that has taken effect under or as a result of the Insolvency Act 1986, Schedule 4 or 5 to the Bankruptcy (Scotland) Act 1985 or the Insolvency (Northern Ireland) Order 1989,

  2. b

     F105a compromise or arrangement that has taken effect under Part 26 of the Companies Act 2006, or

  3. c

     any arrangement or compromise of a kind corresponding to any of those mentioned in paragraph (a) or (b) above that has taken effect under or by virtue of the law of a country or territory outside the United Kingdom;

• F103“venture capital trust” has the same meaning as in Part 6 of ITA 2007.

Section 6(4) shall also apply for the purposes of the following provisions of this Act, that is to say—

• Chapter II of Part X, except section 395;

• F114section 76;

• section 490;

• sections 768 and 769;

• F115section 834C.

F96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

For all the purposes of the Corporation Tax Acts dividends shall be treated as paid on the date when they become due and payable, F94except in so far as Chapter III of Part XII makes other provision for dividends treated as paid by virtue of that Chapter.

Except as otherwise provided by the Corporation Tax Acts, any apportionment to different periods which falls to be made under those Acts F116, other than CTA 2009, shall be made on a time basis according to the respective lengths of those periods.

In the Corporation Tax Acts references to any provision to which this section applies are references to any provision listed in the following table, so far as the provision relates to corporation tax (but subject to any applicable limitation in subsection (3)).

This is the table—

The reference in Part 2 of the above table to Chapter 8 of Part 10 of CTA 2009 does not include that Chapter so far as relating to income which arises from a source outside the United Kingdom.

Subsection (1) is subject to the provisions of the Corporation Tax Acts.

The following provisions have effect for the purposes of, and subject to, the provisions of the F171Corporation Tax Acts which apply this section.

“Research and development” means activities that fall to be treated as research and development in accordance with F169generally accepted accounting practice.

This is subject to F172subsections (2A) and (2B) below.

Activities that, as a result of regulations made under section 1006 of ITA 2007, are “research and development” for the purposes of that section are also “research and development” for the purposes of this section.

And activities that, as a result of any such regulations, are not “research and development” for the purposes of that section are also not “research and development” for the purposes of this section.

F170. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unless otherwise expressly provided, “research and development" does not include oil and gas exploration and appraisal.

For this purpose “petroleum” has the meaning given in section 1 of the M24Petroleum Act 1998.

In this section “structure” includes a ship or other vessel.

The Treasury may make provision by regulations as to the meaning of “offshore installation” for the purposes of the F179Corporation Tax Acts.

In subsection (1)(a) and (b) above “owned directly or indirectly” by a body corporate means owned, whether directly or through another body corporate or other bodies corporate or partly directly and partly through another body corporate or other bodies corporate.

In this section references to ownership shall be construed as references to beneficial ownership.

For the purposes of this section the amount of ordinary share capital of one body corporate owned by a second body corporate through another body corporate or other bodies corporate, or partly directly and partly through another body corporate or other bodies corporate, shall be determined in accordance with the following provisions of this section.

Where, in the case of a number of bodies corporate, the first directly owns ordinary share capital of the second and the second directly owns ordinary share capital of the third, then for the purposes of this section, the first shall be deemed to own ordinary share capital of the third through the second, and, if the third directly owns ordinary share capital of a fourth, the first shall be deemed to own ordinary share capital of the fourth through the second and third, and the second shall be deemed to own ordinary share capital of the fourth through the third and so on.

Where every owner in a series owns the whole of the ordinary share capital of the body corporate to which it is directly related, the first owner shall be deemed to own through the intermediary or chain of intermediaries the whole of the ordinary share capital of the last owned body corporate.

Where one of the owners in a series owns a fraction of the ordinary share capital of the body corporate to which it is directly related, and every other owner in the series owns the whole of the ordinary share capital of the body corporate to which it is directly related, the first owner shall be deemed to own that fraction of the ordinary share capital of the last owned body corporate through the intermediary or chain of intermediaries.

For the purposes of, and subject to, the provisions of the F124Corporation Tax Acts which apply this section, any question whether a person is connected with another shall be determined in accordance with the following provisions of this section (any provision that one person is connected with another being taken to mean that they are connected with one another).

A person is connected with an individual if that person is the individual’s F120spouse or civil partner, or is a relative, or the F120spouse or civil partner of a relative, of the individual or of the individual’s F120spouse or civil partner.

Except in relation to acquisitions or disposals of partnership assets pursuant to bona fide commercial arrangements, a person is connected with any person with whom he is in partnership, and with the F120spouse or civil partner or relative of any individual with whom he is in partnership.

A company is connected with another person if that person has control of it or if that person and persons connected with him together have control of it.

Any two or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company.

In this section—

• “company” includes any body corporate F119(including an open-ended investment company) or unincorporated association, but does not include a partnership, and this section shall apply in relation to any unit trust scheme as if the scheme were a company and as if the rights of the unit holders were shares in the company;

• “control” shall be construed in accordance with section 416; and

• “relative” means brother, sister, ancestor or lineal descendant.

F164. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For the purposes of subsection (1) above, a relevant international organisation is an international organisation of which the United Kingdom is a member.

In the Corporation Tax Acts “recognised stock exchange” has the same meaning as in the Income Tax Acts (see subsections (1) and (2) of section 1005 of ITA 2007).

References in the Corporation Tax Acts to securities which are listed on a recognised stock exchange are to be read in accordance with subsections (3) and (4) of that section.

References in the Corporation Tax Acts to securities which are included in the official UK list are to be read in accordance with subsection (5) of that section.

In this section “securities” includes shares and stock.

F145. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In determining the amount of a company’s income for the purposes of subsection (1)(a) above, no account shall be taken of any amount that F150is charged to corporation tax under section 1229(3)(b) of CTA 2009 (claw back of relief for expenses of management).

Paragraph (e) of subsection (1) above shall not apply as regards an accounting period if the amount which the company would be required to distribute in order to fall within that paragraph is less than £10,000 or, where the period is less than 12 months, a proportionately reduced amount.

For the purpose of determining whether a company may be approved for the purposes of this section for an accounting period, the excess of any relevant credits arising in that period over any relevant debits so arising is treated for the purposes of this section as income derived from shares or securities.

In subsection (2D) “relevant credits” and “relevant debits”, in relation to an accounting period, means credits and debits which are brought into account in respect of that period by virtue of section 574 of CTA 2009 (non-trading credits and debits to be brought into account under Part 5 of that Act).

References in this section to income do not include income treated as arising under section 761(1)(a).

In this section “company” and “shares” shall be construed in accordance with sections F13299 and 288 of F133the 1992 ActF141and “scheme of reconstruction” has the same meaning as in section 136 of that Act.

In this section “rate” means a rate the proceeds of which are applicable for public local purposes and which is leviable by reference to the value of land or other property.

Whether a limited liability partnership is F178. . . a property investment LLP is determined for each period of account of the partnership.