Finance Act 2013

Interpretation U.K.

170 Meaning of “chargeable day” and “within the charge” U.K.

(1) Any day on which the conditions in section 94(2) are met with respect to a single-dwelling interest is a “chargeable day” for that interest.

(2) Where a day is a chargeable day as a result of subsection (1), the chargeable person is “within the charge” with respect to a single-dwelling interest on that day.

171 References to the state of affairs “on” a day U.K.

In determining for the purposes of any provision of this Part whether or not a state of affairs obtains on a particular day, it is to be assumed that the state of affairs obtaining at the end of the day persisted throughout the day.

172 Connected persons U.K.

(1) Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this Part (except where otherwise stated).

(2) For the purposes of this Part a person is taken to be connected with a collective investment scheme if the person is a participant in the scheme who—

(a) is entitled to a share of at least 50% either of all the profits or income arising from the scheme or of any profits or income arising from the scheme that may be distributed to participants, or

(b) would in the event of the winding up of the scheme be entitled to 50% or more of the assets of the scheme that would then be available for distribution among the participants.

(3) The reference in subsection (2) to a collective investment scheme does not include a unit trust scheme; but see section 1123(2) of CTA 2010 (provision about the application of rules about connected persons to unit trust schemes).

(4) The reference in subsection (2)(a) to profits or income arising from the scheme is to profits or income arising from the acquisition, holding, management or disposal of the property subject to the scheme.

(5) For the purposes of subsection (2) a person is taken to have any rights and powers that the person—

(a) is entitled to acquire at a future date, or

(b) will at a future date be entitled to acquire.

(6) For the purposes of subsection (2) the rights and powers of any associate of a person (or of any two or more associates of a person) are to be attributed to the person.

(7) In this section “associate” has the same meaning as in Part 10 of CTA 2010 (see section 448 of that Act); but for this purpose section 448 is to be read as if the words “or partner” were omitted in subsection (1)(a).

Modifications etc. (not altering text)

C1 S. 172(2)-(7) applied by 2003 c. 14, Sch. 4A para. 5A(10)(b) (as inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 2(4))

173 Connected persons: cell companies U.K.

(1) For the purposes of this Part a person is to be treated as connected to a cell company where, if any cell of the company were a separate company, the person would be connected to that separate company.

(2) For the purposes of this section a company is a “cell company” if it meets the first or second condition.

(3) The first condition is that under the law under which the company is incorporated or formed, under the company's articles of association or other document regulating the company or under arrangements entered into by or in relation to the company—

(a) some or all of the assets of the company are available primarily, or only, to meet particular liabilities of the company, and

(b) some or all of the members of the company, and some or all of its creditors, have rights primarily, or only, in relation to particular assets of the company.

(4) The second condition is that the company's articles of association, or other document regulating it, establish an entity (by whatever name known) which—

(a) under the law under which the company is incorporated or formed, has legal personality distinct from that of the company, and

(b) which is not itself a company.

(5) For the purposes of this section a “cell”, in relation to a cell company, is—

(a) an identifiable part of the company (by whatever name known) that carries on distinct business activities and to which particular assets and liabilities of the company are primarily or wholly attributable, or

(b) an entity of the kind specified in subsection (4).

174 General interpretation of Part 3 U.K.

(1) In this Part—

• “chargeable day” (in relation to a single-dwelling interest) is to be read in accordance with section 170;

• “chargeable interest” has the meaning given by section 107;

• “the chargeable person” has the meaning given by section 96(2) or (3);

• “closure notice” has the meaning given by paragraph 16 of Schedule 33;

• “collective investment scheme” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 235 of that Act);

• “company” has the meaning given by section 166(1);

• “completion”, in Scotland, means—

  (a)

  in relation to a lease, when it is executed by the parties (that is to say, by signing) or constituted by any means,

  (b)

  in relation to any other transaction, the settlement of the transaction;

• “discovery assessment” has the meaning given by paragraph 21 of Schedule 33;

• “EEAUCITS” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 237 of that Act);

• “excluded rents” has the meaning given by section 133(6);

• “farming” has the meaning given by section 148(4);

• “filing date”, in relation to an annual tax on enveloped dwellings return or a return of the adjusted chargeable amount, has the meaning given by paragraph 58 of Schedule 33;

• “financial institution” has the meaning given by section 143 (except where otherwise stated);

• “HMRC” means Her Majesty's Revenue and Customs;

• “HMRC determination” has the meaning given by paragraph 18 of Schedule 33;

• “jointly entitled” means—

  (a)

  in England and Wales, beneficially entitled as joint tenants or tenants in common,

  (b)

  in Scotland, entitled as joint owners or owners in common,

  (c)

  in Northern Ireland, beneficially entitled as joint tenants, tenants in common or coparceners;

• “land” includes—

  (a)

  buildings and structures, and

  (b)

  land covered by water;

• “market value” has the meaning given by section 98(8);

• “notice of enquiry” has the meaning given by paragraph 8 of Schedule 33;

• “open-ended investment company” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 236(1) of that Act);

• “participant”, in relation to a collective investment scheme, has the meaning given by section 98(7);

• “partnership” has the meaning given by section 167;

• “property development trade” has the meaning given by section 138(4);

• “property rental business” has the meaning given by section 133(4);

• “property trading business” has the meaning given by section 141(3);

• “qualifying property rental business” has the meaning given by section 133(3);

• “self assessment” has the meaning given by section 161(3);

• “tax” means tax under this Part;

• “trade” has the same meaning as in section 35 of CTA 2009 (and cognate expressions are to be read accordingly);

• “unit trust scheme” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 237(1) of that Act).

(2) In this Part—

• references to the “adjusted chargeable amount”, in relation to a person on whom tax is charged for a chargeable period with respect to a single-dwelling interest, are to be read in accordance with section 105;

• references to an “annual tax on enveloped dwellings return” are to be read in accordance with section 159(4);

• references to the “daily amount” for a day are to be read in accordance with section 105(2);

• references to “delivery”, in relation to an annual tax on enveloped dwellings return, are to be read in accordance with paragraph 2 of Schedule 33;

• references to the “effective date” of an acquisition are to be read in accordance with section 121(4);

• references to the “effective date” of a disposal are to be read in accordance with section 121(5);

• references to a “major interest” in land are to be read in accordance with section 117 of FA 2003;

• references to a “return of the adjusted chargeable amount” are to be read in accordance with section 160(6);

• references to meeting the “ownership condition” are to be read in accordance with section 94(4) to (6);

• references to being “within the charge” with respect to a single-dwelling interest are to be read in accordance with section 170.