(1)In this Act “associated operations” means, subject to subsection (2) below, any two or more operations of any kind, being—
(a)operations which affect the same property, or one of which affects some property and the other or others of which affect property which represents, whether directly or indirectly, that property, or income arising from that property, or any property representing accumulations of any such income, or
(b)any two operations of which one is effected with reference to the other, or with a view to enabling the other to be effected or facilitating its being effected, and any further operation having a like relation to any of those two, and so on.
whether those operations are effected by the same person or different persons, and whether or not they are simultaneous; and “operation” includes an omission.
(2)The granting of a lease for full consideration in money or money’s worth shall not be taken to be associated with any operation effected more than three years after the grant, and no operation effected on or after 27th March 1974 shall be taken to be associated with an operation effected before that date.
(3)Where a transfer of value is made by associated operations carried out at different times it shall be treated as made at the time of the last of them; but where any one or more of the earlier operations also constitute a transfer of value made by the same transferor, the value transferred by the earlier operations shall be treated as reducing the value transferred by all the operations taken together, except to the extent that the transfer constituted by the earlier operations but not that made by all the operations taken together is exempt under section 18 above.
(1)For the purposes of this Act a person has control of a company at any time if he then has the control of powers of voting on all questions affecting the company as a whole which if exercised would yield a majority of the votes capable of being exercised on them.
(2)For the purposes of this Act shares or securities shall be deemed to give a person control of a company if, together with any shares or securities which are related property within the meaning of section 161 above, they would be sufficient to give him control of the company (as defined in subsection (1) above).
(3)Where shares or securities are comprised in a settlement, any powers of voting which they give to the trustees of the settlement shall for the purposes of subsection (1) above be deemed to be given to the person beneficially entitled in possession to the shares or securities (except in a case where no individual is so entitled).
(4)Where a company has shares or securities of any class giving powers of voting limited to either or both of—
(a)the question of winding up the company, and
(b)any question primarily affecting shares or securities of that class,
the reference in subsection (1) above to all questions affecting the company as a whole shall have effect as a reference to all such questions except any in relation to which those powers are capable of being exercised.
For the purposes of this Act any question whether a person is connected with another shall be determined as, for the purposes of the [F11992 Act], it falls to be determined under section [F1286] of that Act, but as if in that section “relative” included uncle, aunt, nephew and niece and “settlement”, “settlor” and “trustee” had the same meanings as in this Act.
Textual Amendments
F1Words in s. 270 substituted (6.3.1992 with effects as mentioned in s. 289(1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 8(12) (with ss. 60, 101(1), 201(3)).
References in this Act (except section 59) to property to which a person is beneficially entitled do not include references to property to which a person is entitled as a corporation sole.
(1)For the purposes of this Act “qualifying non-UK pension scheme” means a pension scheme (other than a registered pension scheme) which—
(a)is established in a country or territory outside the United Kingdom, and
(b)satisfies any requirements prescribed for the purposes of this section by regulations made by the Commissioners for Her Majesty's Revenue and Customs.
(2)“Pension scheme” has the same meaning as in Part 4 of the Finance Act 2004 (see section 150 of that Act).
(3)Regulations under this section may include provision having effect in relation to times before the regulations are made if it does not increase any person's liability to tax.
(4)The power to make regulations under this section is exercisable by statutory instrument, which is subject to annulment in pursuance of a resolution of the House of Commons.]
Textual Amendments
F2S. 271A inserted (retrospective to 6.4.2006) by Finance Act 2008 (c. 9), s. 92, Sch. 29 para. 18(6)(8)
In this Act, except where the context otherwise requires,—
“amount” includes value;
[F3“authorised unit trust” means a scheme which is a unit trust scheme for the purposes of [F4the Income Tax Acts (see section 1007 of the Income Tax Act 2007)] and in the case of which an order under section 243 of the Financial Services and Markets Act 2000 is in force;]
“barrister” includes a member of the Faculty of Advocates;
“the Board” means the Commissioners of Inland Revenue;
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F6“commencement” of a settlement has the meaning given by section 48A;]
“conditionally exempt transfer” shall be construed in accordance with section 30(2) above;
[F7“disabled person's interest” has the meaning given by section 89B above;]
“disposition” includes a disposition effected by associated operations;
“estate” shall be construed in accordance with sections 5, 55 and 151(4) above;
“estate duty” includes estate duty under the law of Northern Ireland;
“excluded property” shall be construed in accordance with sections 6 and 48 above [F8and Schedule A1] ;
[F9“foreign-owned”, in relation to property at any time, means property—
in the case of which the person beneficially entitled to it is at that time domiciled outside the United Kingdom, or
if the property is comprised in a settlement, in the case of which the settlor—
is not a formerly domiciled resident for the tax year in which that time falls, and
was domiciled outside the United Kingdom when the property became comprised in the settlement [F10(and section 64(1BA) applies for the purposes of this sub-paragraph as it applies for the purposes of section 64(1B))];]
[F11“formerly domiciled resident”, in relation to a tax year, means a person—
who was born in the United Kingdom,
whose domicile of origin was in the United Kingdom,
who was resident in the United Kingdom for that tax year, and
who was resident in the United Kingdom for at least one of the two tax years immediately preceding that tax year;]
“Government department” includes a Northern Ireland department;
“heritable security” means any security capable of being constituted over any interest in land by disposition or assignation of that interest in security of any debt and of being recorded in the General Register of Sasines;
[F12“HMRC” means Her Majesty's Revenue and Customs;]
[F13“immediate post-death interest” means an immediate post-death interest for the purposes of Chapter 2 of Part 3 (see section 49A above);]
“incumbrance” includes any heritable security, or other debt or payment secured upon heritage;
“Inland Revenue charge” means a charge imposed by virtue of section 237 above;
“land” does not include any estate interest or right by way of mortgage or other security;
“local authority” has the meaning given by [F14section 1130 of the Corporation Tax Act 2010];
[F15“member”, in relation to a registered pension scheme, has the same meaning as in Part 4 of the Finance Act 2004 (see section 151 of that Act);]
“mortgage” includes a heritable security and a security constituted over any interest in movable property;
[F16“nil-rate band maximum” has the meaning given by section 8A(7);]
[F17“open-ended investment company” means an open-ended investment company within the meaning given by section 236 of the Financial Services and Markets Act 2000 which is incorporated in the United Kingdom;]
“personal representatives” includes any person by whom or on whose behalf an application for a grant of administration or for the resealing of a grant made outside the United Kingdom is made, and any such person as mentioned in section 199(4)(a) above;
“property” includes rights and interests of any description [F18but does not include a settlement power];
[F19“public display” means display to which the public are admitted, on payment or not, but does not include display with a view to sale;]
“purchaser” means a purchaser in good faith for consideration in money or money’s worth other than a nominal consideration and includes a lessee, mortgagee or other person who for such consideration acquires an interest in the property in question;
[F20“quoted”, in relation to any shares or securities, means [F21listed] on a recognised stock exchange or dealt in on the Unlisted Securities Market and “unquoted”, in relation to any shares or securities, means neither so [F21listed] nor so dealt in;]
[F22“registered pension scheme” has the same meaning as in Part 4 of the Finance Act 2004;]
“reversionary interest” has the meaning given by section 47 above;
F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F24“section 615(3) scheme” means a superannuation fund to which section 615(3)of the Taxes Act 1988 applies;]
[F25“settlement power” has the meaning given by section 47A above;]
“settlement” and “settled property” shall be construed in accordance with section 43 above;
“settlor” shall be construed in accordance with section 44 above;
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F27“step-child”, in relation to a civil partner, shall be construed in accordance with section 246 of the Civil Partnership Act 2004;]
“tax” means [F20inheritance tax];
[F28“transitional serial interest” means a transitional serial interest for the purposes of Chapter 2 of Part 3 (see section 49B above);]
“the Taxes Act [F291970]” means the M1Income and Corporation Taxes Act 1970;
[F30“The Taxes Act 1988” means the Income and Corporation Taxes Act 1988;]
[F31“the TCEA 2007” means the Tribunals, Courts and Enforcement Act 2007;]
[F32“the tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal,]
“trustee” shall be construed in accordance with section 45 above;[F33and
“the 1992 Act” means the Taxation of Chargeable Gains Act 1992.]
Textual Amendments
F3S. 272: definition inserted (with effect as stated in s. 186(8) of the amending Act) by Finance Act 2003 (c. 14), s. 186(6)
F4Words in s. 272 substituted (with effect as mentioned in s. 1034 of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 271 (with transitional provisions and savings in Sch. 2)
F5Words in s. 272 omitted (with effect in accordance with art. 5 of the commencing S.I.) by virtue of Finance Act 2010 (c. 13), Sch. 6 paras. 10, 34(2); S.I. 2012/736, art. 5
F6Words in s. 272 inserted (with effect in accordance with s. 73(11) of the amending Act) by Finance Act 2020 (c. 14), s. 73(10)(a)
F7S. 272 definition inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 28
F8Words in s. 272 inserted (with effect in accordance with Sch. 10 para. 9 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 10 para. 8
F9Words in s. 272 substituted (with effect in accordance with s. 30(9)-(12) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 30(8)(a)
F10Words in s. 272 inserted (with effect in accordance with s. 73(11) of the amending Act) by Finance Act 2020 (c. 14), s. 73(10)(b)
F11Words in s. 272 inserted (with effect in accordance with s. 30(9)-(12) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 30(8)(b)
F12S. 272: definition of 'HMRC' inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 125(3)
F13S. 272 definition inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 28
F14Words in s. 272 substituted (with effect in accordance with art. 1(3) of the amending S.I.) by The Tax Law Rewrite Acts (Amendment) Order 2013 (S.I. 2013/463), arts. 1(2), 2(1)
F15S. 272 definition of "member" inserted (6.4.2006) by Finance Act 2006 (c. 25), s. 160, Sch. 22 para. 10(2)
F16S. 272: entry inserted (retrospective to 9.10.2007) by Finance Act 2008 (c. 9), s. 10, Sch. 4 paras. 7, 9(3)
F17S. 272: definition inserted (with effect as stated in s. 186(8) of the amending Act) by Finance Act 2003 (c. 14), s. 186(7)
F18Words in s. 272 inserted (24.7.2002 with effect as mentioned in s. 119(6)(7) of the amending Act) by 2002 c. 23, s. 119(4)(6)(7)
F19S. 272: definition of 'public display' inserted (6.4.2009 with effect as mentioned in art. 13(5) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2009 (S.I. 2009/730), art. 13(4)
F20Finance Act 1987 Sch. 8, para. 17,with effect from 17 March 1987.
F21S. 272: words in the definition of “quoted” and “unquoted” substituted (29.4.1996 with effect as mentioned in Sch. 38 para. 2(2) of the amending Act) by 1996 c. 8, s. 199, Sch. 38 para. 2(1)(b)
F22S. 272: definition of "registered pension scheme" inserted (6.4.2006) by Finance Act 2004 (c. 12), ss. 203(6), 284 (with Sch. 36)
F23S. 272: definition of "scheme administrator" omitted (with effect as mentioned in Sch. 16 paras. 85, 106 of the amending Act) by virtue of Finance Act 2011 (c. 11), s. 65, Sch. 16 para. 57
F24S. 272: definition of "section 615(3) scheme" inserted (6.4.2006) by Finance Act 2004 (c. 12), ss. 203(6), 284 (with Sch. 36)
F25Words in s. 272 inserted (24.7.2002 with effect as mentioned in s. 119(6)(7) of the amending Act) by 2002 c. 23, s. 119(4)(6)(7)
F26S. 272: definition of "Special Commissioners" omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 125(2)
F27S. 272: definition of "step-child" inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 38
F28S. 272 definition inserted (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 paras. 7, 28
F29 “1970” inserted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29, para. 32.
F30Income and Corporation Taxes Act Sch. 29, para. 32.
F31S. 272: definition of "the TCEA 2007" inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 125(3)
F32S. 272: definition of 'the tribunal' inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 3(1), Sch. 1 para. 125(3)
F33Words in s. 272 added (6.3.1992 with effects as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 8(13) (with ss. 60, 101(1), 201(3)).
Marginal Citations