|
| |
|
(3) | For the purposes of section 993 “trustee”, in the case of a settlement in relation |
| |
to which there would be no trustees apart from this subsection, means any |
| |
| |
(a) | in whom the property comprised in the settlement is for the time being |
| |
| 5 |
(b) | in whom the management of that property is for the time being vested. |
| |
| Section 466(4) does not apply for the purposes of this subsection. |
| |
(4) | If any provision of section 993 provides that a person (“A”) is connected with |
| |
another person (“B”), it also follows that B is connected with A. |
| |
| 10 |
(1) | This section has effect for the purposes of the provisions of the Income Tax Acts |
| |
which apply this section. |
| |
(2) | In relation to a body corporate (“company A”), “control” means the power of a |
| |
| |
(a) | by means of the holding of shares or the possession of voting power in |
| 15 |
relation to that or any other body corporate, or |
| |
(b) | as a result of any powers conferred by the articles of association or other |
| |
document regulating that or any other body corporate, |
| |
| that the affairs of company A are conducted in accordance with P’s wishes. |
| |
(3) | In relation to a partnership, “control” means the right to a share of more than |
| 20 |
half the assets, or of more than half the income, of the partnership. |
| |
996 | Meaning of “farming” and related expressions |
| |
(1) | In the Income Tax Acts “farming” means the occupation of land wholly or |
| |
mainly for the purposes of husbandry, but does not include market gardening |
| |
| 25 |
(2) | In subsection (1) “husbandry” includes— |
| |
| |
(b) | the breeding and rearing of horses and the grazing of horses in |
| |
connection with those activities. |
| |
(3) | For the purposes of the Income Tax Acts the cultivation of short rotation |
| 30 |
coppice is regarded as husbandry and not as forestry. |
| |
(4) | In the Income Tax Acts “woodlands” does not include land on which short |
| |
rotation coppice is cultivated. |
| |
(5) | In the Income Tax Acts “market gardening” means the occupation of land as a |
| |
garden or nursery for the purpose of growing produce for sale. |
| 35 |
(6) | For the purposes of this section “short rotation coppice” means a perennial |
| |
crop of tree species planted at high density, the stems of which are harvested |
| |
above ground level at intervals of less than 10 years. |
| |
(7) | In the application of this section for the purposes of section 192(1) or 303(1) of |
| |
this Act or paragraph 16 of Schedule 5 to ITEPA 2003— |
| 40 |
(a) | both references to the occupation of land, and the reference to land on |
| |
which short rotation coppice is cultivated, refer to land in the United |
| |
| |
|
| |
|
| |
|
(b) | the reference to the cultivation of such coppice refers to its cultivation |
| |
| |
997 | Meaning of “generally accepted accounting practice” and related expressions |
| |
(1) | In the Income Tax Acts “generally accepted accounting practice” means UK |
| |
generally accepted accounting practice. |
| 5 |
| This is subject to subsection (3). |
| |
(2) | In the Income Tax Acts “UK generally accepted accounting practice”— |
| |
(a) | means generally accepted accounting practice in relation to accounts of |
| |
UK companies (other than IAS accounts) that are intended to give a |
| |
| 10 |
(b) | has the same meaning in relation to— |
| |
| |
(ii) | entities other than companies, and |
| |
(iii) | companies that are not UK companies, |
| |
| as it has in relation to UK companies. |
| 15 |
(3) | In relation to the affairs of a company or other entity that prepares IAS |
| |
accounts, in the Income Tax Acts “generally accepted accounting practice” |
| |
means generally accepted accounting practice in relation to IAS accounts. |
| |
(4) | In the Income Tax Acts “for accounting purposes” means for the purposes of |
| |
accounts drawn up in accordance with generally accepted accounting practice. |
| 20 |
(5) | In the Income Tax Acts “international accounting standards” has the same |
| |
meaning as in the Corporation Tax Acts (see section 50(2) and (3) of FA 2004). |
| |
| |
“IAS accounts” means accounts prepared in accordance with |
| |
international accounting standards, and |
| 25 |
“UK companies” means companies incorporated or formed under the law |
| |
of a part of the United Kingdom. |
| |
998 | Meaning of “grossing up” |
| |
(1) | In the Income Tax Acts references to grossing up by reference to a rate of tax |
| |
are to calculating the amount (“the grossed up amount”) which after deduction |
| 30 |
of income tax at that rate would equal the amount to be grossed up (“the net |
| |
| |
(2) | The grossed up amount is the sum of the net amount and the tax deducted. |
| |
(3) | The grossed up amount may also be expressed as—![equation: equal[times[char[G],char[A]],plus[times[char[N],char[A]],lparen[times[char[N],cross[
char[A],rparen[over[char[R],plus[num[100.0000000000000000,"100"],minus[char[R]]]]]]]]]]](missing.gif) |
| |
| 35 |
GA is the grossed up amount, |
| |
|
| |
|
| |
|
NA is the net amount, and |
| |
R is the percentage rate of tax by reference to which the net amount is to |
| |
| |
999 | Meaning of “local authority” |
| |
(1) | In the Income Tax Acts “local authority”, in relation to England and Wales, |
| 5 |
| |
(a) | a billing authority as defined in section 69 of the Local Government |
| |
Finance Act 1992 (c. 14), |
| |
(b) | a precepting authority as defined in that section, |
| |
(c) | a body with power to issue a levy (by virtue of regulations under |
| 10 |
section 74 of the Local Government Finance Act 1988 (c. 41)), |
| |
(d) | a body with power to issue a special levy (by virtue of regulations |
| |
under section 75 of that Act), |
| |
(e) | a fire and rescue authority in Wales constituted by a scheme under |
| |
section 2 of the Fire and Rescue Services Act 2004 (c. 21) or a scheme to |
| 15 |
which section 4 of that Act applies, |
| |
(f) | an authority with power to make or determine a rate, or |
| |
(g) | a residuary body established by order under section 22(1) of the Local |
| |
Government Act 1992 (c. 19). |
| |
(2) | In the Income Tax Acts “local authority”, in relation to Scotland, means— |
| 20 |
(a) | a council constituted under section 2 of the Local Government etc |
| |
(Scotland) Act 1994 (c. 39), |
| |
(b) | a joint board or committee within the meaning of the Local |
| |
Government (Scotland) Act 1973 (c. 65), or |
| |
(c) | an authority with power to requisition any sum from a council such as |
| 25 |
is mentioned in paragraph (a). |
| |
(3) | In the Income Tax Acts “local authority”, in relation to Northern Ireland, |
| |
| |
(a) | an authority with power to make or determine a rate, or |
| |
(b) | an authority with power to issue a precept, requisition or other demand |
| 30 |
for the payment of money to be raised out of a rate. |
| |
(4) | In this section “rate” means a rate— |
| |
(a) | whose proceeds are applicable for public local purposes, and |
| |
(b) | which is leviable by reference to the value of land or property. |
| |
1000 | Meaning of “local authority association” |
| 35 |
(1) | In the Income Tax Acts “local authority association” means any incorporated |
| |
or unincorporated association which meets conditions A and B. |
| |
(2) | Condition A is that all of its members are local authorities, groups of local |
| |
authorities or local authority associations. |
| |
(3) | Condition B is that its purpose, or primary purpose, is to protect and further |
| 40 |
the general interests of local authorities or any description of local authorities. |
| |
(4) | For the purposes of condition A, a local authority, group of local authorities or |
| |
local authority association is treated as a member if it has appointed a person |
| |
to be a member or is represented by a member. |
| |
|
| |
|
| |
|
(5) | And, in that case, the appointee or representative is treated as not being a |
| |
member for the purpose of the condition. |
| |
1001 | Meaning of “offshore installation” |
| |
(1) | In the Income Tax Acts “offshore installation” means a structure which is, is to |
| |
be, or has been, put to a relevant use while in water (see subsections (3) and (4)). |
| 5 |
(2) | But a structure is not an offshore installation if— |
| |
(a) | it has permanently ceased to be put to a relevant use, |
| |
(b) | it is not, and is not to be, put to any other relevant use, and |
| |
(c) | since permanently ceasing to be put to a relevant use, it has been put to |
| |
a use which is not relevant. |
| 10 |
(3) | A use is a relevant use if it is— |
| |
(a) | for the purposes of exploiting mineral resources by means of a well, |
| |
(b) | for the purposes of exploration with a view to exploiting mineral |
| |
resources by means of a well, |
| |
(c) | for the storage of gas in or under the shore or the bed of any waters, |
| 15 |
(d) | for the recovery of gas so stored, |
| |
(e) | for the conveyance of things by means of a pipe, or |
| |
(f) | mainly for the provision of accommodation for individuals who work |
| |
on or from a structure which is, is to be, or has been, put to any of the |
| |
above uses while in water. |
| 20 |
(4) | For the purposes of this section references to a structure being put to a use |
| |
while in water are to the structure being put to a use while— |
| |
(a) | standing in any waters, |
| |
(b) | stationed (by whatever means) in any waters, or |
| |
(c) | standing on the foreshore or other land intermittently covered with |
| 25 |
| |
(5) | In this section “structure” includes a ship or other vessel. |
| |
1002 | Regulations about the meaning of “offshore installation” |
| |
(1) | The Treasury may by regulations make provision as to the meaning of |
| |
“offshore installation” in the Income Tax Acts. |
| 30 |
| |
(a) | add to, amend or repeal any provision of section 1001, |
| |
(b) | make different provision for different purposes, and |
| |
(c) | contain incidental, supplemental, consequential and transitional |
| |
| 35 |
1003 | Meaning of “oil and gas exploration and appraisal” |
| |
(1) | In the Income Tax Acts “oil and gas exploration and appraisal” means activities |
| |
carried out for the purpose of— |
| |
(a) | searching for petroleum anywhere in an area, |
| |
(b) | ascertaining a petroleum-bearing area’s extent or characteristics, or |
| 40 |
(c) | ascertaining its reserves of petroleum, |
| |
|
| |
|
| |
|
| so that it may be determined whether the petroleum is suitable for commercial |
| |
| |
(2) | In this section “petroleum” has the meaning given by section 1 of the Petroleum |
| |
| |
1004 | Meaning of “property investment LLP” |
| 5 |
(1) | In the Income Tax Acts “property investment LLP” means a limited liability |
| |
| |
(a) | whose business consists wholly or mainly in the making of investments |
| |
| |
(b) | the principal part of whose income is derived from investments in land. |
| 10 |
(2) | Whether a limited liability partnership is a property investment LLP is |
| |
determined for each period of account of the partnership. |
| |
1005 | Meaning of “recognised stock exchange” |
| |
(1) | In the Income Tax Acts “recognised stock exchange” means— |
| |
(a) | the Stock Exchange, and |
| 15 |
(b) | any stock exchange outside the United Kingdom which is for the time |
| |
being designated as a recognised stock exchange for the purposes of |
| |
this section by an order made by the Commissioners for Her Majesty’s |
| |
| |
(2) | An order under this section may designate a stock exchange— |
| 20 |
| |
(b) | by reference to any class or description of stock exchanges (including |
| |
one framed by reference to any authority or approval given in a country |
| |
outside the United Kingdom). |
| |
(3) | An order under this section may— |
| 25 |
(a) | contain incidental, supplemental, consequential and transitional |
| |
provision and savings, and |
| |
(b) | vary or revoke a previous order under this section. |
| |
1006 | Meaning of “research and development” |
| |
(1) | This section has effect for the purposes of the provisions of the Income Tax Acts |
| 30 |
which apply this section. |
| |
(2) | “Research and development” means activities that fall to be treated as research |
| |
and development in accordance with generally accepted accounting practice. |
| |
| This is subject to subsection (3). |
| |
(3) | The Treasury may by regulations specify activities which— |
| 35 |
(a) | are to be treated as being “research and development” for the purposes |
| |
| |
(b) | are to be treated as not being “research and development” for the |
| |
purposes of this section. |
| |
| 40 |
(a) | make provision by reference to guidelines issued by the Secretary of |
| |
| |
|
| |
|
| |
|
(b) | contain incidental, supplemental, consequential and transitional |
| |
| |
(5) | Unless otherwise expressly provided, “research and development” does not |
| |
include oil and gas exploration and appraisal. |
| |
1007 | Meaning of “unit trust scheme” |
| 5 |
(1) | In the Income Tax Acts “unit trust scheme” has the meaning given by section |
| |
| |
| This is subject to subsection (2). |
| |
(2) | The Treasury may by regulations provide that a unit trust scheme within the |
| |
meaning given by section 237 of FISMA 2000 is not to be a unit trust scheme for |
| 10 |
the purposes of this section if the scheme is within a specified description. |
| |
(3) | The regulations may contain incidental, supplemental, consequential and |
| |
transitional provision and savings. |
| |
(4) | This section does not apply for the purposes of section 558 (approved |
| |
| 15 |
| |
Other Income Tax Acts provisions |
| |
| |
(1) | In the application of the Income Tax Acts to Scotland— |
| |
“assignment” means an assignation, |
| 20 |
“estate in land” includes the land, and |
| |
“surrender” includes renunciation. |
| |
(2) | In the application of the Income Tax Acts to Scotland, any reference to property |
| |
or rights being held on trust or on trusts is a reference to the property or rights |
| |
| 25 |
1009 | Sources of income within the charge to income tax or corporation tax |
| |
In the Income Tax Acts a source of income is within the charge to income tax |
| |
or corporation tax if that tax— |
| |
(a) | is chargeable on the income arising from it, or |
| |
(b) | would be so chargeable if there were any income arising from it, |
| 30 |
and references to a person, or income, being within the charge to income tax or |
| |
corporation tax are to be read in the same way. |
| |
1010 | Application of Income Tax Acts to recognised investment exchanges |
| |
The Commissioners for Her Majesty’s Revenue and Customs may by |
| |
regulations make provision securing that provisions in the Income Tax Acts |
| 35 |
which contain references to the Stock Exchange apply— |
| |
(a) | in relation to all other recognised investment exchanges (within the |
| |
meaning of FISMA 2000), or |
| |
(b) | in relation to such of those exchanges as may be prescribed, |
| |
|
| |
|
| |
|
for such purposes and subject to such modifications as may be prescribed. |
| |
1011 | References to married persons, or civil partners, living together |
| |
Individuals who are married to, or are civil partners of, each other are treated |
| |
for the purposes of the Income Tax Acts as living together unless— |
| |
(a) | they are separated under an order of a court of competent jurisdiction, |
| 5 |
(b) | they are separated by deed of separation, or |
| |
(c) | they are in fact separated in circumstances in which the separation is |
| |
| |
1012 | Relationship between rules on highest part of total income |
| |
(1) | This section makes provision about the relationship between rules requiring |
| 10 |
particular income to be treated as the highest part of a person’s total income. |
| |
(2) | It has effect for the purposes of the Income Tax Acts except sections 535 to 537 |
| |
of ITTOIA 2005 (gains from contracts for life insurance etc: top slicing relief). |
| |
(3) | If more than one of the provisions listed in subsection (4) applies in relation to |
| |
a person, a provision mentioned earlier in the list has priority over a provision |
| 15 |
mentioned later in the list. |
| |
| |
section 465A of ITTOIA 2005 (gains from contracts for life insurance etc to |
| |
be treated as highest part of total income), |
| |
section 404A of ITEPA 2003 (payments and other benefits on termination |
| 20 |
of employment to be treated as highest part of total income), and |
| |
section 16 (savings and dividend income to be treated as highest part of |
| |
| |
(5) | The provisions listed in subsection (4) have priority over— |
| |
section 619A(2) of ITTOIA 2005 (income treated as highest part of settlor’s |
| 25 |
| |
section 768(6) and (7) (income treated as arising under Chapter 3 of Part |
| |
13 to be treated as highest part of total income), |
| |
section 786(6) and (7) (income treated as arising under Chapter 4 of Part |
| |
13 to be treated as highest part of total income), and |
| 30 |
any other provisions of the Income Tax Acts requiring income of any |
| |
description to be treated as the highest part of a person’s total income. |
| |
(6) | The effect of one provision having priority over another is that the second |
| |
provision has effect subject to the first. |
| |
1013 | Territorial sea of the United Kingdom |
| 35 |
The territorial sea of the United Kingdom is treated for the purposes of the |
| |
Income Tax Acts as part of the United Kingdom. |
| |
1014 | Orders and regulations |
| |
(1) | This section applies to all powers under the Income Tax Acts of the Treasury |
| |
or the Commissioners for Her Majesty’s Revenue and Customs to make orders |
| 40 |
or regulations, other than excluded powers. |
| |
|
| |
|