Finance Act 1960

43 Interpretation of Part II

(1) For the purposes of this Part of this Act two or more companies shall be treated as associated companies if one has control of the other or others, or any person has control of both or all of them.

(2) References in this Part of this Act to a company having control of another company shall be construed as references to its having control thereof either by itself or in conjunction with any person having control over the first mentioned company.

(3) References in this Part of this Act to capital expenditure unallowed shall be construed as including references to the residue of capital expenditure; and Part X of the Act of 1952 shall with the necessary modifications have effect, in relation to assets of any description, for the construction of any such reference in this Part of this Act as it has effect in relation to assets of that description, for the construction of such a reference in the said Part X.

(4) In this Part of this Act—

(a) " the Board of Referees " means the Board appointed for the purposes of section two hundred and eighty-seven of the Act of 1952 ;

(b) " company " includes any body corporate ;

(c) " control " has the same meaning as in Part X of the Act of 1952;

(d) " dealing company " means a company dealing in securities, land or buildings and includes any company whose profits on the sale of securities, land or buildings are part of its trading profits ;

(e) " investment company " means a company whose business consists mainly in the making of investments and the principal part of whose income is derived therefrom ;

(f) " securities " includes shares, " shares ", except where the context otherwise requires, includes stock, and references to dividends include references to interest;

(g) " tax advantage " means a relief or increased relief from, or repayment or increased repayment of, income tax, or the avoidance or reduction of an assessment to income tax or the avoidance of a possible assessment thereto, whether the avoidance or reduction is effected by receipts accruing in such a way that the recipient does not pay or bear tax on them, or by a deduction in computing profits or gains ;

(h) " trading stock " has the same meaning as in section one hundred and forty-three of the Act of 1952 ;

(i) " transaction in securities " includes transactions, of whatever description, relating to securities, and in particular—

(i) the purchase, sale or exchange of securities,

(ii) the issuing or securing the issue of, or applying or subscribing for, new securities,

(iii) the altering, or securing the alteration of, the rights attached to securities.

(5) References in this Part of this Act to work in progress at the discontinuance of a profession or vocation shall be construed as references to—

(a) any services performed in the ordinary course of the profession or vocation, the performance of which was wholly or partly completed at the time of the discontinuance and for which it would be reasonable to expect that a charge would have been made on their completion if the profession or vocation had not been discontinued; and

(b) any article produced, and any such material as is used, in the performance of any such services;

and references as aforesaid to the transfer of work in progress shall include references to the transfer of any benefits and rights which accrue or might be reasonably expected to accrue from the carrying out of the work.