Part IV U.K. Shares, securities, options etc.

Modifications etc. (not altering text)

C1 Pt. IV: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)

Chapter II U.K. Reorganisation of share capital, conversion of securities etc.

Modifications etc. (not altering text)

C2 Pt. IV Ch. II modified (1.1.1999) by The European Single Currency (Taxes) Regulations 1998 (S.I. 1998/3177), regs. 1, 39

C3 Pt. IV Ch. II modified (with effect in accordance with s. 63(4) of the amending Act) by Finance Act 2000 (c. 17), Sch. 15 para. 88

[F1 Transparent entities: disapplication of reliefs related to Mergers Directive U.K.

Textual Amendments

F1 Ss. 140H-140L and cross-heading inserted (with effect in accordance with reg. 3(3) of the amending S.I.) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2007 (S.I. 2007/3186), reg. 1(2), Sch. 3 para. 1 (with S.I. 2008/1579, reg. 4(2))

140L. Interpretation U.K.

(1) In sections 140A to 140K [F2 and this section], unless the contrary intention appears—

(a) “the Mergers Directive” means Council Directive [F3 2009/133/EC,]

(b) “company” means an entity listed as a company in [F4 Part A of Annex I] to the Mergers Directive,

[F5 (ba) “relevant state” means the United Kingdom or a member State,] and

(c) “transparent entity” means an entity which is resident in a member State F6 ... and is listed as a company in [F4 Part A of Annex I] to the Mergers Directive, but—

(i) does not have an ordinary share capital (within the meaning given by [F7 section 1119 of CTA 2010]), and

(ii) if it were resident in the United Kingdom, would not be capable of being a company within the meaning given by the Companies Act 2006.

[F8 (2) For the purposes of those sections and subsection (1) above, a company is resident in a relevant state if—

(a) it is within a charge to tax under the law of the relevant state as being resident for that purpose, and

(b) it is not regarded, for the purposes of any double taxation relief arrangements to which the relevant state is a party, as resident in a territory not within a relevant state.]]

Textual Amendments

F2 Words in s. 140L(1) inserted (with effect in accordance with reg. 3 of the amending S.I.) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2008 (S.I. 2008/1579), reg. 1(2), Sch. 1 para. 7

F3 Words in s. 140L(1)(a) substituted (1.7.2011) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2011 (S.I. 2011/1431), regs. 1(2), 2(3)(a)

F4 Words in s. 140L(1)(b)(c) substituted (1.7.2011) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2011 (S.I. 2011/1431), regs. 1(2), 2(3)(b)

F5 S. 140L(1)(ba) inserted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 6(12)(a)(i) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in s. 140L(1)(c) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 6(12)(a)(ii) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

F7 Words in s. 140L(1)(c)(i) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 235 (with Sch. 2)

F8 S. 140L(2) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 6(12)(b) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)