|
| |
|
911 | Application to public departments |
| |
(1) | This Part applies in relation to payments made by public offices and |
| |
departments of the Crown except as mentioned in subsection (2). |
| |
(2) | This Part does not apply to payments made by public offices and departments |
| |
| 5 |
(a) | any country mentioned in Schedule 3 to the British Nationality Act 1981 |
| |
(c. 61) (which contains a list of Commonwealth countries) or the |
| |
| |
(b) | any state or province of a country within paragraph (a). |
| |
912 | Designated international organisations: exceptions from duties to deduct |
| 10 |
(1) | The Treasury may by order designate for the purposes of this section any |
| |
international organisation of which the United Kingdom is a member. |
| |
(2) | The duty to deduct under section 807 (duty to deduct from certain payments |
| |
of yearly interest) does not apply to a payment of interest made by— |
| |
(a) | an organisation designated under subsection (1), or |
| 15 |
(b) | a partnership of which an organisation so designated is a member. |
| |
(3) | None of the duties to deduct under Chapters 6, 7 (deduction from annual |
| |
payments, patent royalties and other payments connected with intellectual |
| |
property) and 14 (directions for duty to deduct to apply in tax avoidance cases) |
| |
apply to a payment made by an organisation designated under subsection (1). |
| 20 |
(4) | The duties to deduct under sections 852(2) and 855(2) do not apply in a case |
| |
where the payer of the manufactured interest or (as the case may be) the |
| |
manufactured overseas dividend is an organisation designated under |
| |
| |
913 | Derivative contracts: exception from duties to deduct |
| 25 |
(1) | Despite the provisions of this Part, a company is not required to deduct a sum |
| |
representing income tax from a payment made under a derivative contract to |
| |
which this section applies. |
| |
(2) | This section applies to a derivative contract if profits and losses arising from it |
| |
are calculated in accordance with Schedule 26 to FA 2002. |
| 30 |
914 | Foreign currency securities etc: exception from duties to deduct |
| |
Despite the provisions of this Part there is no duty to deduct a sum |
| |
representing income tax from a payment of interest within section 755(1) of |
| |
ITTOIA 2005 (interest on foreign currency securities etc owned by non-UK |
| |
| 35 |
915 | Income tax is calculated by reference to gross amounts |
| |
If any provision of this Part requires the deduction from a payment of a sum |
| |
representing income tax at a specified rate, the rate is to be applied to the gross |
| |
payment, that is to the payment before deduction of a sum representing |
| |
income tax under this Part. |
| 40 |
|
| |
|
| |
|
| |
| |
In this Chapter “deposit” means a sum of money paid on terms which mean |
| |
that it will be repaid (with or without interest)— |
| |
| 5 |
(b) | at a time or in circumstances agreed by or on behalf of the person who |
| |
pays it and the person who receives it. |
| |
917 | Meaning of “financial instrument” |
| |
(1) | In this Part “financial instrument” includes— |
| |
| 10 |
(b) | any shares or securities, |
| |
(c) | an option, future or contract for differences if its underlying subject- |
| |
matter is (or is primarily) one or more financial instruments, and |
| |
(d) | an instrument the underlying subject-matter of which is (or is |
| |
primarily) creditworthiness. |
| 15 |
(2) | For the purposes of subsection (1) if the effect of an instrument depends on an |
| |
index or factor, the “underlying” subject-matter of the instrument is the matter |
| |
by reference to which the index or factor is determined. |
| |
918 | Meaning of “gilt-edged securities” |
| |
In this Part “gilt-edged securities” means any securities which— |
| 20 |
(a) | are gilt-edged securities for the purposes of TCGA 1992 (see Schedule |
| |
| |
(b) | will be such securities on the making of an order under paragraph 1 of |
| |
that Schedule, if the making of the order is anticipated in the prospectus |
| |
under which the securities were issued. |
| 25 |
919 | Meaning of “qualifying certificate of deposit” |
| |
(1) | In this Part “qualifying certificate of deposit” means a certificate of deposit |
| |
| |
(a) | the amount payable is at least £50,000, exclusive of interest, and |
| |
(b) | that amount is payable at a specified time within 5 years beginning |
| 30 |
with the date on which the deposit is made. |
| |
(2) | If an amount is denominated in a foreign currency, subsection (1)(a) has effect |
| |
as if it referred to an amount which is at least the equivalent in that currency of |
| |
£50,000 at the time the deposit is made. |
| |
(3) | For the meaning of “certificate of deposit”, see section 953. |
| 35 |
920 | Meaning of “qualifying uncertificated eligible debt security unit” |
| |
(1) | In this Part “qualifying uncertificated eligible debt security unit” means an |
| |
uncertificated eligible debt security unit under which— |
| |
(a) | the amount payable is at least £50,000, exclusive of interest, and |
| |
|
| |
|
| |
|
(b) | that amount is payable at a specified time within 5 years beginning |
| |
with the date on which the deposit is made. |
| |
(2) | If an amount is denominated in a foreign currency, subsection (1)(a) has effect |
| |
as if it referred to an amount which is at least the equivalent in that currency of |
| |
£50,000 at the time the deposit is made. |
| 5 |
(3) | In this section “uncertificated eligible debt security unit” means an |
| |
uncertificated unit of an eligible debt security where the issue of the unit |
| |
corresponds, in accordance with the current terms of issue of the eligible debt |
| |
security, to the issue of a certificate of deposit. |
| |
| 10 |
(a) | “eligible debt security”, |
| |
(b) | “uncertificated” (in relation to a unit), and |
| |
| |
| have the meanings given by regulation 3(1) of the Uncertificated Securities |
| |
Regulations 2001 (S.I. 2001/3755). |
| 15 |
(5) | For the meaning of “certificate of deposit”, see section 953. |
| |
921 | Meaning of “quoted Eurobond” |
| |
In this Part “quoted Eurobond” means a security, including a share (in |
| |
particular any permanent interest bearing share as defined in section 117 of |
| |
| 20 |
(a) | is issued by a company, |
| |
(b) | is listed on a recognised stock exchange, and |
| |
(c) | carries a right to interest. |
| |
| |
Income Tax Acts definitions etc |
| 25 |
| |
| |
| |
(1) | This Chapter contains definitions which apply for the purposes of the Income |
| |
Tax Acts, except where, in those Acts, the context otherwise requires. |
| 30 |
(2) | To find a definition go first to section 923, which sets out some of the |
| |
| |
(3) | If a definition is not set out in full in section 923, the section indicates where it |
| |
| |
(4) | In some cases it is stated that a definition does not apply for the purposes of |
| 35 |
specified provisions of the Income Tax Acts (see, for example, sections 924(2), |
| |
| |
(5) | And in some cases it is stated that a definition has effect only for the purposes |
| |
of specific provisions of the Income Tax Acts (see, for example, sections 925, |
| |
| 40 |
|
| |
|
| |
|
| |
The following definitions apply for the purposes of the Income Tax Acts— |
| |
“Act” has the meaning given by section 924, |
| |
“authorised unit trust” is to be read in accordance with section 468(6) to |
| |
| 5 |
“bank” is to be read in accordance with section 925, |
| |
“basic rate” means the rate of income tax determined in pursuance of |
| |
| |
“basic rate limit” has the meaning given by section 20(2), |
| |
“body of persons” means any body politic, corporate or collegiate and any |
| 10 |
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, |
| 15 |
“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 |
| |
| |
“charity” means a body of persons or trust established for charitable |
| 20 |
| |
“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 926, |
| |
“connected”, in relation to two persons being connected with one another, |
| 25 |
is to be read in accordance with sections 927 and 928, |
| |
“control”, in relation to the control of a body corporate or a partnership, is |
| |
to be read in accordance with section 929, |
| |
“distribution” has the same meaning as in the Corporation Tax Acts (see |
| |
Part 6, and section 418, of ICTA), |
| 30 |
“dividend income” has the meaning given by section 19, |
| |
“dividend ordinary rate” means the rate of income tax specified in section |
| |
| |
“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 |
| 35 |
| |
“farming” has the meaning given by section 930, |
| |
“for accounting purposes” has the meaning given by section 931(4), |
| |
“forestry” is to be read in accordance with section 930, |
| |
“generally accepted accounting practice” has the meaning given by |
| 40 |
| |
“grossing up” is to be read in accordance with section 932, |
| |
“higher rate” means the rate of income tax determined in pursuance of |
| |
| |
“international accounting standards” has the meaning given by section |
| 45 |
| |
“local authority” has the meaning given by section 933, |
| |
“local authority association” has the meaning given by section 934, |
| |
“market gardening” has the meaning given by section 930, |
| |
|
| |
|
| |
|
“net income” has the meaning given by section 23 (see Step 2 in that |
| |
| |
“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), |
| 5 |
“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 935 and 936, |
| 10 |
“oil and gas exploration and appraisal” has the meaning given by section |
| |
| |
“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 |
| 15 |
no other right to share in the company’s profits, |
| |
“overseas property business” has the meaning given by Chapter 2 of Part |
| |
| |
| |
(a) | in relation to a person, means any period for which the person |
| 20 |
| |
(b) | in relation to a trade, profession, vocation or other business, |
| |
means any period for which the accounts of the business are |
| |
| |
“permanent establishment”, in relation to a company, has the meaning |
| 25 |
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 |
| 30 |
functions under its law equivalent to those of administering the |
| |
| |
“profits or gains” does not include chargeable gains, |
| |
“property investment LLP” has the meaning given by section 938, |
| |
“qualifying distribution” has the meaning given by section 14(2) of ICTA, |
| 35 |
“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 939, |
| |
“registered pension scheme” has the meaning given by section 150(2) of |
| |
| 40 |
“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 940, |
| 45 |
“retail prices index” means— |
| |
(a) | the general index of retail prices (for all items) published by the |
| |
Office for National Statistics, or |
| |
(b) | if that index is not published for a relevant month, any |
| |
substituted index or index figures published by that Office, |
| 50 |
“savings income” has the meaning given by section 18, |
| |
|
| |
|
| |
|
“savings rate” means the rate of income tax specified in section 7, |
| |
“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, |
| 5 |
“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 |
| |
| |
“settled property” (together with references to property comprised in a |
| |
settlement) is to be read in accordance with section 466, |
| 10 |
“settlor” is to be read in accordance with sections 467 to 473, |
| |
“starting rate” means the rate of income tax determined in pursuance of |
| |
| |
“starting rate limit” has the meaning given by section 20(1), |
| |
“stepchild”, in relation to a civil partner, is to be read in accordance with |
| 15 |
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), |
| 20 |
“tax” is to be read in accordance with section 832(3) of ICTA, |
| |
“tax credit” means a tax credit under section 397(1) 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), |
| 25 |
“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 |
| 30 |
| |
“UK property business” has the meaning given by Chapter 2 of Part 3 of |
| |
| |
“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 |
| 35 |
| |
“umbrella scheme” is to be read in accordance with section 468(6) to (9) of |
| |
| |
“unauthorised unit trust” means a unit trust scheme which is neither an |
| |
authorised unit trust nor an umbrella scheme, |
| 40 |
“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 941, |
| |
“venture capital trust” and “VCT” have the same meaning as in Part 6 (see |
| |
| |
“woodlands” has the meaning given by section 930, |
| 45 |
“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). |
| |
|
| |
|