PART XVIIU.K. TAX AVOIDANCE

CHAPTER VIU.K. MISCELLANEOUS

[F1Factoring of income receipts etcU.K.

Textual Amendments

F1Ss. 774A-774G and preceding cross-heading inserted (with effect in accordance with Sch. 6 para. 6(2)-(7) of the amending Act) by Finance Act 2006 (c. 25), Sch. 6 para. 6(1)

774GSections 774A to 774D: minor definitions etcU.K.

(1)For the purposes of sections 774A to 774D “arrangement” includes any agreement or understanding (whether or not legally enforceable).

(2)For the purposes of sections 774A to 774D “income deduction” means—

(a)a deduction in calculating any income for tax purposes, or

(b)a deduction against total income or total profits.

(3)For the purposes of sections 774A to 774D—

(a)references to a person's receiving any asset include the person's obtaining directly or indirectly the value of any asset or otherwise deriving directly or indirectly any benefit from it,

(b)references to a disposal of an asset include anything which constitutes a disposal of the asset for the purposes of the 1992 Act,

(c)references to payments in respect of any asset include obtaining directly or indirectly the value of any asset or otherwise deriving directly or indirectly any benefit from it.

(4)For the purposes of sections 774A to 774D, section 839 (connected persons) applies.

(5)For the purposes of sections 774A to 774D references to the accounts of any person who is a company include the consolidated group accounts of a group of companies of which it is a member.

(6)If any person does not draw up accounts in accordance with generally accepted accounting practice, sections 774A to 774D apply as if the accounts had been drawn up by the person in accordance with that practice.

(7)Sections 277 to 281 of ITTOIA 2005 and section 34 above (lease premiums) are not to apply in relation to a premium paid in respect of a grant of a lease where the grant constitutes a disposal of an asset for the purposes of section 774A(2)(c) or 774C(2)(a).]