Income Tax Act 2007 (c. 3)

Part 16 U.K. Income Tax Acts definitions etc

Chapter 1 U.K. Definitions

989 The definitions U.K.

The following definitions apply for the purposes of the Income Tax Acts—

• “Act” has the meaning given by section 990,

• “authorised unit trust” is to be read in accordance with section 468(6) to (9) of ICTA,

• “bank” is to be read in accordance with section 991,

• “basic rate” means the rate of income tax determined in pursuance of section 6(2),

• “basic rate limit” has the meaning given by section [F1 10] ,

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

• “building society” means a building society within the meaning of the Building Societies Act 1986 (c. 53),

• “capital allowance” means any allowance under CAA 2001,

• “the Capital Allowances Act” means CAA 2001,

• “chargeable gain” has the same meaning as in TCGA 1992,

• “chargeable period” means an accounting period of a company or a tax year,

• “charity” means a body of persons or trust established for charitable purposes only,

• “close company” has the same meaning as in the Corporation Tax Acts (see sections 414 and 415 of ICTA),

• “company” has the meaning given by section 992,

• “connected”, in relation to two persons being connected with one another, is to be read in accordance with sections 993 and 994,

• “control”, in relation to the control of a body corporate or a partnership, is to be read in accordance with section 995,

• “distribution” has the same meaning as in the Corporation Tax Acts (see Part 6, and section 418, of ICTA),

• “dividend income” has the meaning given by section 19,

• “dividend ordinary rate” means the rate of income tax specified in section 8(1),

• “dividend trust rate” means the rate of income tax specified in section 9(2),

• “dividend upper rate” means the rate of income tax specified in section 8(2),

• “farming” has the meaning given by section 996,

• “for accounting purposes” has the meaning given by section 997(4),

• “forestry” is to be read in accordance with section 996,

• “generally accepted accounting practice” has the meaning given by section 997(1) and (3),

• “grossing up” is to be read in accordance with section 998,

• “higher rate” means the rate of income tax determined in pursuance of section 6(2),

• “international accounting standards” has the meaning given by section 997(5),

• “local authority” has the meaning given by section 999,

• “local authority association” has the meaning given by section 1000,

• “market gardening” has the meaning given by section 996,

• “net income” has the meaning given by section 23 (see Step 2 in that section),

• “non-UK resident” means not resident in the United Kingdom (and references to a non-UK resident or a non-UK resident person are to a person who is not resident there),

• “normal self-assessment filing date”, in relation to a tax year, means the 31 January following the tax year,

• “notice” means notice in writing or in a form authorised (in relation to the case in question) by directions under section 118 of FA 1998,

• “offshore installation” has the meaning given by sections 1001 and 1002,

• “oil and gas exploration and appraisal” has the meaning given by section 1003,

• “ordinary share capital”, in relation to a company, means all the company's issued share capital (however described), 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 company's profits,

• “overseas property business” has the meaning given by Chapter 2 of Part 3 of ITTOIA 2005,

• “period of account”—

  (a)

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

  (b)

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

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

• “personal representatives” in relation to a person who has died, means—

  (a)

  in the United Kingdom, persons responsible for administering the estate of the deceased, and

  (b)

  in a territory outside the United Kingdom, those persons having functions under its law equivalent to those of administering the estate of the deceased,

• “profits or gains” does not include chargeable gains,

• “property investment LLP” has the meaning given by section 1004,

• “qualifying distribution” has the meaning given by section 14(2) of ICTA,

• “qualifying policy” means a policy of insurance which is a qualifying policy for the purposes of Chapter 1 of Part 7 of ICTA,

• “recognised stock exchange” has the meaning given by section 1005,

• “registered pension scheme” has the meaning given by section 150(2) of FA 2004,

• “relevant foreign income” has the meaning given by section 830(1) to (3) of ITTOIA 2005 but also includes, for any purpose mentioned in any provision listed in section 830(4) of that Act, income treated as relevant foreign income for that purpose by that provision,

• “research and development” is to be read in accordance with section 1006,

• “retail prices index” means—

  (a)

  the general index of retail prices (for all items) published by the [F2 Statistics Board ], or

  (b)

  if that index is not published for a relevant month, any substituted index or index figures published by [F3 the Board],

• “savings income” has the meaning given by section 18,

• F4 ...

• “Schedule A business” means any business the profits of which are chargeable to corporation tax under Schedule A, including the business in the course of which any transaction is (as a result of paragraph 1(2) of that Schedule) to be treated as entered into,

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

• “settled property” (together with references to property comprised in a settlement) is to be read in accordance with section 466,

• “settlor” is to be read in accordance with sections 467 to 473,

• [F5 “ shares, stock or other securities included in the official UK list ” is to be read in accordance with sections 467 to 473,” is to be read in accordance with section 1005,

  “ shares, stock or other securities listed on a recognised stock exchange ” is to be read in accordance with section 1005, ]

• [F6 “starting rate for savings” has the meaning given by section 7,

• “starting rate limit for savings” has the meaning given by section 12,]

• “stepchild”, in relation to a civil partner, is to be read in accordance with section 246 of the Civil Partnership Act 2004 (c. 33),

• “51% subsidiary”, in relation to bodies corporate, has the same meaning as in the Corporation Tax Acts (see section 838 of ICTA),

• “75% subsidiary”, in relation to bodies corporate, has the same meaning as in the Corporation Tax Acts (see section 838 of ICTA),

• “tax” is to be read in accordance with section 832(3) of ICTA,

• “tax credit” means a tax credit under section 397(1) [F7 or 397A(2)] of ITTOIA 2005,

• “tax year” has the meaning given by section 4(2),

• “the tax year 2007-08” (and any corresponding expression in which two years are similarly mentioned) has the meaning given by section 4(4),

• “total income” has the meaning given by section 23 (see Step 1 in that section and also section 31),

• “trade” includes any venture in the nature of trade,

• “trust rate” means the rate of income tax specified in section 9(1),

• “UK generally accepted accounting practice” has the meaning given by section 997(2),

• “UK property business” has the meaning given by Chapter 2 of Part 3 of ITTOIA 2005,

• “UK resident” means resident in the United Kingdom (and references to a UK resident or a UK resident person are to a person who is resident there),

• “umbrella scheme” is to be read in accordance with section 468(6) to (9) of ICTA,

• “unauthorised unit trust” means a unit trust scheme which is neither an authorised unit trust nor an umbrella scheme,

• “unit holder” is to be read in accordance with section 468(6) to (9) of ICTA,

• “unit trust scheme” has the meaning given by section 1007,

• “venture capital trust” and “VCT” have the same meaning as in Part 6 (see section 259(1)),

• “woodlands” has the meaning given by section 996,

• “year of assessment” means a tax year, and

• “the year 1988-1989” means the tax year 1988-1989 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way).

Textual Amendments

F1 Word in s. 989 substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 33(2)

F2 Words in s. 989 substituted (1.4.2008) by Statistics and Registration Service Act 2007 (c. 18), s. 74(1), Sch. 3 para. 16(a); S.I. 2008/839, art. 2

F3 Words in s. 989 substituted (1.4.2008) by Statistics and Registration Service Act 2007 (c. 18), s. 74(1), Sch. 3 para. 16(b); S.I. 2008/839, art. 2

F4 Words in s. 989 omitted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 33(3)

F5 Words in s. 989 inserted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 26 para. 12(12)

F6 Words in s. 989 substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 33(4)

F7 Words in s. 989 inserted (21.7.2008 with effect in accordance with s. 34(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 12 para. 31

Modifications etc. (not altering text)

C1 S. 989 applied by 1992 c. 12, s. 4(6) (as inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 295(7) (with Sch. 2))