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Taxation (International and Other Provisions) Act 2010

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Taxation (International and Other Provisions) Act 2010. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

    1. Summary

    2. Background

      1. The Tax Law Rewrite project

      2. Steering Committee

      3. Consultative Committee

      4. Consultation

    3. Taxation (International and Other Provisions) Act 2010

    4. Glossary

  2. Commentary on Sections

    1. Part 1: Overview

      1. Section 1: Overview of Act

    2. Part 2: Double taxation relief

      1. Overview

      2. Chapter 1: Double taxation arrangements and unilateral relief arrangements

        1. Overview

        2. Section 2: Giving effect to arrangements made in relation to other territories

        3. Section 3: Arrangements may include retrospective or supplementary provision

        4. Section 4: Meaning of “double taxation” in sections 2 and 3

        5. Section 5: Orders under section 2: contents and procedure

        6. Section 6: The effect given by section 2 to double taxation arrangements

        7. Section 7: General regulations

        8. Section 8: Interpretation: “unilateral relief arrangements” means rules 1 to 9, etc

        9. Section 9: Rule 1: the unilateral entitlement to credit for non-UK tax

        10. Section 10: Rule 2: accrued income profits

        11. Section 11: Rule 3: interaction between double taxation arrangements and rules 1 and 2

        12. Section 12: Rule 4: cases in which, and calculation of, credit allowed for tax on dividends

        13. Section 13: Rule 5: credit for tax charged directly on dividend

        14. Section 14: Rule 6: credit for underlying tax on dividend paid to 10% associate of payer

        15. Section 15: Rule 7: credit for underlying tax on dividend paid to sub-10% associate

          Section 16: Rule 8: credit for underlying tax on dividend paid by exchanged associate

        16. Section 17: Rule 9: credit in relation to dividends for spared tax

      3. Chapter 2: Double taxation relief by way of credit

        1. Overview

        2. Section 18: Entitlement to credit for foreign tax reduces UK tax by amount of the credit

        3. Section 19: Time limits for claims for relief under section 18(2)

        4. Section 20: Foreign tax includes tax spared because of international development relief

        5. Section 21: Meaning of “the arrangements”, “the non-UK territory”, “foreign tax” etc

        6. Section 22: Credit for foreign tax on overlap profit if credit for that tax already allowed

        7. Section 23: Time limits for claims for relief under section 22(2)

        8. Section 24: Claw-back of relief under section 22(2)

        9. Section 25: Credit not allowed if relief allowed against overseas tax

        10. Section 26: Credit not allowed under arrangements unless taxpayer is UK resident

        11. Section 27: Credit not allowed if person elects against credit

        12. Section 28: Unilateral relief for Isle of Man or Channel Islands tax

        13. Section 29: Unilateral relief for tax on income from employment or office

        14. Section 30: Unilateral relief for non-UK tax on non-resident’s UK branch or agency etc

        15. Section 31: Calculation of income or gain where remittance basis does not apply

        16. Section 32: Calculation of amount received where UK tax charged on remittance basis

        17. Section 33: Limit on credit: minimisation of the foreign tax

        18. Section 34: Reduction in credit: payment by reference to foreign tax

        19. Section 35: Disallowed credit: use as a deduction

        20. Section 36: Amount of limit

        21. Section 37: Credit against tax on trade income: further rules

        22. Section 38: Credit against tax on royalties: further rules

        23. Section 39: Credit reduced by reference to accrued income losses

        24. Section 40: Amount of limit

        25. Section 41: Amount of limit

        26. Section 42: Amount of limit

        27. Section 43: Profits attributable to permanent establishment for purposes of section 42(2)

        28. Section 44: Credit against tax on trade income

        29. Section 45: Credit against tax on trade income: anti-avoidance rules

        30. Section 46: Applying section 44(2): asset in hedging relationship with derivative contract

        31. Section 47: Applying section 44(2): royalty income

        32. Section 48: Applying section 44(2): “portfolio” of transactions, arrangements or assets

        33. Section 49: Restricting section 44(3) if company is a bank or connected with a bank

        34. Section 50: Tax for period on loan relationships

          Section 51: Tax for period on intangible fixed assets

        35. Section 52: General deductions

        36. Section 53: Earlier years’ non-trading deficits on loan relationships

          Section 54: Non-trading debits on loan relationships

          Section 55: Current year’s non-trading deficits on loan relationships

        37. Section 56: Non-trading debits on intangible fixed assets

        38. Section 57: Credit in respect of dividend: taking account of underlying tax

        39. Section 58: Calculation if dividend paid by non-resident company to resident company

        40. Section 59: Meaning of “relevant profits” in section 58

        41. Section 60: Underlying tax to be left out of account on claim to that effect

        42. Section 61: Calculation if section 58 does not apply

        43. Section 62: Meaning of “relevant profits” in section 61

        44. Section 63: Non-UK company dividend paid to 10% investor: relief for UK and other tax

        45. Section 64: Meaning of “dividend-paying chain” of companies

        46. Section 65: Relief for underlying tax paid by company lower in dividend-paying chain

        47. Section 66: Limitations on section 65(4)

        48. Section 67: Restriction of relief if underlying tax at rate higher than rate of corporation tax

        49. Section 68: Meaning of “avoidance scheme” in section 67

        50. Section 69: Dividends paid out of transferred profits

        51. Section 70: Underlying tax reflecting interest on loans

        52. Section 71: Foreign taxation of group as single entity

        53. Section 72: Application of section 73(1)

        54. Section 73: Carry-forward and carry-back of unrelieved foreign tax

        55. Section 74: Rules for carrying back unrelieved foreign tax

        56. Section 75: Two or more establishments treated as a single establishment

        57. Section 76: Former and subsequent establishments regarded as distinct establishments

        58. Section 77: Claims for relief under section 73(1)

        59. Section 78: Meaning of “overseas permanent establishment”

        60. Section 79: Time limits for action if tax adjustment makes credit excessive or insufficient

        61. Section 80: Duty to give notice that adjustment has rendered credit excessive

        62. Section 81: Giving a counteraction notice

        63. Section 82: Conditions for the purposes of section 81(1)

        64. Section 83: Schemes and arrangements referred to in section 82(4)

        65. Section 84: Section 83(2) and (4): schemes enabling attribution of foreign tax

        66. Section 85: Section 83(2) and (4): schemes about effect of paying foreign tax

        67. Section 86: Section 83(2) and (4): schemes about claims or elections etc

        68. Section 87: Section 83(2) and (4): schemes that would reduce a person’s tax liability

        69. Section 88: Section 83(2) and (4): schemes involving tax-deductible payments

        70. Section 89: Contents of counteraction notice

        71. Section 90: Consequences of counteraction notices

        72. Section 91: Counteraction notices given before tax return made

        73. Section 92: Counteraction notices given after tax return made

        74. Section 93: Amendment, closure notices and discovery assessments in section 92 cases

        75. Section 94: Information made available for the purposes of section 92(4)

        76. Section 95: Interpretation of sections 89 to 94

        77. Section 96: Companies with overseas branches: restriction of credit

        78. Section 97: Companies with more than one category of business: restriction of credit

        79. Section 98: Attribution for section 97 purposes if category is gross roll-up business

        80. Section 99: Allocation of expenses etc in calculations under section 35 of CTA 2009

        81. Section 100: First limitation for purposes of section 99(2)

        82. Section 101: Second limitation for purposes of section 99(2)

        83. Section 102: Interpreting sections 99 to 101 for life assurance or gross roll-up business

          Section 103: Interpreting sections 99 to 101 for other insurance business

          Section 104: Interpreting sections 100 and 101: amounts referable to category of business

      4. Chapter 3: Miscellaneous provisions

        1. Overview

        2. Section 105: Meaning of “chargeable gain”

        3. Section 106: Chapters 1 and 2 apply to capital gains tax separately from other taxes

        4. Section 107: Disregard of foreign tax referable to derivative contract

        5. Section 108: Disregard of foreign tax attributable to interest under a loan relationship

        6. Section 109: Repo cases in which no disregard under section 108

        7. Section 110: Stock-lending cases in which no disregard under section 108

        8. Section 111: When payment to beneficiary treated as arising from foreign source

        9. Section 112: Deduction from income for foreign tax (instead of credit against UK tax)

        10. Section 113: Deduction from capital gain for foreign tax (instead of credit against UK tax)

        11. Section 114: Time limits for action if tax adjustment makes reduction too large or too small

        12. Section 115: Duty to give notice that adjustment has rendered reduction too large

        13. Section 116: Introduction to section 117

        14. Section 117: Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets

        15. Section 118: Introduction to section 119

        16. Section 119: Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets

        17. Section 120: Introduction to section 121

        18. Section 121: Tax treated as chargeable in respect of relevant transactions

        19. Section 122: Tax treated as chargeable in respect of gains on transfer of non-UK business

        20. Section 123: Interpretation of sections 116 to 122

        21. Section 124: Giving effect to solutions to cases and mutual agreements resolving cases

        22. Section 125: Effect of, and deadline for, presenting a case

        23. Section 126: Meaning of “the Arbitration Convention”

        24. Section 127: Giving effect to agreements, decisions and opinions under the Convention

        25. Section 128: Disclosure under the Convention

        26. Section 129: Disclosure where relief given overseas for tax paid in the United Kingdom

        27. Section 130: Interpreting provision about UK taxation of profits of foreign enterprises

        28. Section 131: Interpreting provision about interest influenced by special relationship

        29. Section 132: Interpreting provision about royalties influenced by special relationship

        30. Section 133: Special relationship rule for royalties: matters to be shown by taxpayer

        31. Section 134: Correcting assessments where relief is available

    3. Part 3: Double taxation relief for special withholding tax

      1. Overview

      2. Section 135: Relief under this Part: introductory

      3. Section 136: Interpretation of Part

      4. Section 137: Income tax credit etc for special withholding tax

      5. Section 138: Amount and application of the deemed tax under section 137

      6. Section 139: Capital gains tax credit etc for special withholding tax

      7. Section 140: Provisions about the deemed tax under section 139

      8. Section 141: Credit under Chapter 2 of Part 2 to be allowed first

      9. Section 142: Conditions for purposes of section 143

      10. Section 143: Taking account of special withholding tax in calculating income or gains

      11. Section 144: Issue of certificate

      12. Section 145: Refusal to issue certificate and appeal against refusal

    4. Part 4: Transfer pricing

      1. Overview

      2. Chapter 1: Basic transfer-pricing rule

        1. Overview

        2. Section 146: Application of this Part

        3. Section 147: Tax calculations to be based on arm’s length, not actual, provision

        4. Section 148: The “participation condition”

      3. Chapter 2: Key interpretative provisions

        1. Overview

        2. Section 149: “Actual provision” and “affected persons”

        3. Section 150: “Transaction” and “series of transactions”

        4. Section 151: “Arm’s length provision”

        5. Section 152: Arm’s length provision where actual provision relates to securities

        6. Section 153: Arm’s length provision where security issued and guarantee given

        7. Section 154: Interpretation of sections 152 and 153

        8. Section 155: “Potential advantage” in relation to United Kingdom taxation

        9. Section 156: “Losses” and “profits”

        10. Section 157: Direct participation

        11. Section 158: Indirect participation: defined by sections 159 to 162

        12. Section 159: Indirect participation: potential direct participant

        13. Section 160: Indirect participation: one of several major participants

        14. Section 161: Indirect participation: sections 148 and 175: financing cases

        15. Section 162: Indirect participation: sections 148 and 175: further financing cases

        16. Section 163: Meaning of “connected” in section 159

        17. Section 164: Part to be interpreted in accordance with OECD principles

      4. Chapter 3: Exemptions from basic rule

        1. Overview

        2. Section 165: Exemption for dormant companies

        3. Section 166: Exemption for small and medium-sized enterprises

        4. Section 167: Small and medium-sized enterprises: exceptions from exemption

        5. Section 168: Medium-sized enterprises: exception from exemption: transfer pricing notice

        6. Section 169: Giving of transfer pricing notices

        7. Section 170: Appeals against transfer pricing notices

        8. Section 171: Tax returns where transfer pricing notice given

        9. Section 172: Meaning of “small enterprise” and “medium-sized enterprise”

        10. Section 173: Meaning of “qualifying territory” and “non-qualifying territory”

      5. Chapter 4: Position, if only one affected person potentially advantaged, of other affected person

        1. Overview

        2. Section 174: Claim by the affected person who is not potentially advantaged

        3. Section 175: Claims under section 174 where actual provision relates to a security

        4. Section 176: Claims under section 174: advantaged person must have made return

        5. Section 177: Time for making, or amending, claim under section 174

        6. Section 178: Meaning of “return” in sections 176 and 177

        7. Section 179: Compensating payment if advantaged person is controlled foreign company

        8. Section 180: Application of section 174(2)(a) in relation to transfers of trading stock etc

        9. Section 181: Section 182 applies to claims where actual provision relates to a security

        10. Section 182: Making of section 182 claims

        11. Section 183: Giving effect to section 182 claims

        12. Section 184: Amending a section 182 claim if it is followed by relevant notice

        13. Section 185: Notice to potential claimants

        14. Section 186: Extending claim period if notice under section 185 not given or given late

        15. Section 187: Tax treatment if actual interest exceeds arm’s length interest

        16. Section 188: Double taxation relief by way of credit for foreign tax

        17. Section 189: Double taxation relief by way of deduction for foreign tax

        18. Section 190: Meaning of “relevant notice”

      6. Chapter 5: Position of guarantor of affected person’s liabilities under a security issued by the person

        1. Overview

        2. Section 191: When sections 192 to 194 apply

        3. Section 192: Attribution to guarantor company of things done by issuing company

        4. Section 193: Interaction between claims under sections 174 and 192(1)

        5. Section 194: Claims under section 192(1): general provisions

      7. Chapter 6: Balancing payments

        1. Overview

        2. Section 195: Qualifying conditions for purposes of section 196

        3. Section 196: Balancing payments between affected persons: no charge to, or relief from, tax

        4. Section 197: Qualifying conditions for purposes of section 198

        5. Section 198: Balancing payments by guarantor to issuer: no charge to, or relief from, tax

        6. Section 199: Pre-conditions for making election under section 200

        7. Section 200: Election to pay tax rather than make balancing payments

        8. Section 201: Pre-conditions for making election under section 202

        9. Section 202: Election, in guarantee case, to pay tax rather than make balancing payments

        10. Section 203: Elections under section 200 or 202

        11. Section 204: Meaning of “capital market condition” in sections 199 and 201

      8. Chapter 7: Oil-related ring-fence trades

        1. Overview

        2. Section 205: Provision made or imposed between ring-fence trade and other activities

        3. Section 206: Meaning of “oil-related ring-fence trade” in sections 205 and 218

      9. Chapter 8: Supplementary provisions and interpretation of Part

        1. Overview

        2. Section 207: Application of Part to unit trusts

        3. Section 208: The determinations which require the Commissioners’ sanction

        4. Section 209: Determinations exempt from requirement for Commissioners’ sanction

        5. Section 210: The requirement for the Commissioners’ sanction

        6. Section 211: Restriction of right to appeal against Commissioners’ approval

        7. Section 212: Appeals

        8. Section 213: Capital allowances

        9. Section 214: Chargeable gains

        10. Section 215: Manner of making adjustments to give effect to Part

        11. Section 216: Meaning of “the relevant activities”

        12. Section 217: Meaning of “control” and “firm”

    5. Part 5: Advance pricing agreements

      1. Overview

      2. Section 218: Meaning of “advance pricing agreement”

      3. Section 219: Meaning of “associate” in section 218(2)(e)

      4. Section 220: Effect of agreement on party to it

      5. Section 221: Effect of revocation of agreement or breach of its conditions

      6. Section 222: Effect of agreement on non-parties

      7. Section 223: Application for agreement

      8. Section 224: Provision in agreement about years ended or begun before agreement made

      9. Section 225: Modification and revocation of agreement

      10. Section 226: Annulment of agreement for misrepresentation

      11. Section 227: Penalty for misrepresentation in connection with agreement

      12. Section 228: Party to agreement: duty to provide information

      13. Section 229: Modifications of agreement for double taxation purposes

      14. Section 230: Interpretation of Part: meaning of “Commissioners” and “officer”

    6. Part 6: Tax arbitrage

      1. Overview

      2. Section 231: Overview

      3. Section 232: Deduction notices

      4. Section 233: The deduction scheme conditions

      5. Section 234: Schemes achieving UK tax advantage for a company

      6. Section 235: Further provisions about deduction notices

      7. Section 236: Schemes involving hybrid entities

      8. Section 237: Instruments of alterable character

      9. Section 238: Shares subject to conversion

      10. Section 239: Securities subject to conversion

      11. Section 240: Debt instruments treated as equity

      12. Section 241: Scheme including issue of shares not conferring qualifying beneficial entitlement

      13. Section 242: Scheme including transfer of rights under a security

      14. Section 243: Consequences of deduction notices

      15. Section 244: The rule against double deduction

      16. Section 245: Application of the rule against deduction for untaxable payments

      17. Section 246: Cases where payee’s non-liability treated as not a result of scheme

      18. Section 247: Cases where payee treated as having reduced liability as a result of scheme

      19. Section 248: The rule against deduction for untaxable payments

      20. Section 249: Receipt notices

      21. Section 250: The receipt scheme conditions

      22. Section 251: Amounts within corporation tax

      23. Section 252: Further provisions about receipt notices

      24. Section 253: Exception for dealers

      25. Section 254: Rule for calculation or recalculation of income etc following receipt notice

      26. Section 255: Notices given before tax return made

      27. Section 256: Notices given after tax return made

      28. Section 257: Amendments, closure notices and discovery assessments where section 256 applies

      29. Section 258: Schemes and series of transactions

      30. Section 259: Minor definitions

    7. Part 7: Tax treatment of financing costs and income

      1. Overview

      2. Chapter 1: Introduction

        1. Section 260: Introduction

      3. Chapter 2: Application of Part

        1. Overview

        2. Section 261: Application of Part

        3. Section 262: UK net debt of worldwide group for period of account of worldwide group

        4. Section 263: Net debt of a company

        5. Section 264: Worldwide gross debt of worldwide group for period of account of the group

        6. Section 265: References to amounts disclosed in balance sheet of relevant group company

        7. Section 266: Qualifying financial services groups

        8. Section 267: Qualifying activities

        9. Section 268: Lending activities and activities ancillary to lending activities

        10. Section 269: Insurance activities and insurance-related activities

        11. Section 270: Relevant dealing in financial instruments

        12. Section 271: UK trading income of the worldwide group

        13. Section 272: Worldwide trading income of the worldwide group

        14. Section 273: Foreign currency accounting

      4. Chapter 3: Disallowance of deductions

        1. Overview

        2. Section 274: Application of Chapter and meaning of “total disallowed amount”

        3. Section 275: Meaning of “company to which this Chapter applies”

        4. Section 276: Appointment of authorised company for relevant period of account

        5. Section 277: Meaning of “the reporting body”

        6. Section 278: Statement of allocated disallowances: submission

        7. Section 279: Statement of allocated disallowances: submission of revised statement

        8. Section 280: Statement of allocated disallowances: requirements

        9. Section 281: Statement of allocated disallowances: effect

        10. Section 282: Company tax returns

        11. Section 283: Power to make regulations about statement of allocated disallowances

        12. Section 284: Failure of reporting body to submit statement of allocated disallowances

        13. Section 285: Powers to make regulations in relation to reductions under section 284

      5. Chapter 4: Exemption of financing income

        1. Overview

        2. Section 286: Application of Chapter and meaning of “total disallowed amount”

        3. Section 287: Meaning of “company to which this Chapter applies”

        4. Section 288: Appointment of authorised company for relevant period of account

        5. Section 289: Meaning of “the reporting body”

        6. Section 290: Statement of allocated exemptions: submission

        7. Section 291: Statement of allocated exemptions: submission of revised statement

        8. Section 292: Statement of allocated exemptions: requirements

        9. Section 293: Statement of allocated exemptions: effect

        10. Section 294: Company tax returns

        11. Section 295: Power to make regulations about statement of allocated exemptions

        12. Section 296: Failure of reporting body to submit statement of allocated exemptions

        13. Section 297: Power to make regulations in relation to reductions under section 296

        14. Section 298: Balancing payments between group companies: no tax charge or relief

      6. Chapter 5: Intra-group financing income where payer denied deduction

        1. Overview

        2. Section 299: Tax exemption for certain financing income received from EEA companies

        3. Section 300: Meaning of “relevant associate”

        4. Section 301: Meaning of “tax-resident” and “EEA territory”

        5. Section 302: Qualifying EEA tax relief for payment in current or previous period

        6. Section 303: Qualifying EEA tax relief for payment in future period

        7. Section 304: References to tax of a territory

        8. Section 305: Financing income amounts of a company

      7. Chapter 6: Tax avoidance

        1. Overview

        2. Section 306: Schemes involving manipulation of rules in Chapter 2

        3. Section 307: Schemes involving manipulation of rules in Chapters 3 and 4

        4. Section 308: Meaning of “relevant net deduction”

        5. Section 309: Calculation of amounts

        6. Section 310: Meaning of “carried-back amount” and “carried-forward amount”

        7. Section 311: Schemes involving manipulation of rules in Chapter 5

        8. Section 312: Meaning of “scheme” and “excluded scheme”

      8. Chapter 7: “Financing expense amount” and “financing income amount”

        1. Overview

        2. Section 313: The financing expense amounts of a company

        3. Section 314: The financing income amounts of a company

        4. Section 315: Interpretation of sections 313 and 314

        5. Section 316: Group treasury companies

        6. Section 317: Real estate investment trusts

        7. Section 318: Companies engaged in oil extraction activities

        8. Section 319: Intra-group short-term finance: financing expense

        9. Section 320: Intra-group short-term finance: financing income

        10. Section 321: Short-term loan relationships

        11. Section 322: Stranded deficits in non-trading loan relationships: financing expense

        12. Section 323: Stranded deficits in non-trading loan relationships: financing income

        13. Section 324: Stranded management expenses in non-trading loan relationships: financing expense

        14. Section 325: Stranded management expenses in non-trading loan relationships: financing income

        15. Section 326: Charities

        16. Section 327: Educational and public bodies

        17. Section 328: Interpretation of sections 316 to 327

      9. Chapter 8: “Tested expense amount” and “tested income amount”

        1. Overview

        2. Section 329: The tested expense amount

        3. Section 330: The tested income amount

        4. Section 331: Companies with net financing deduction or net financing income that is small

      10. Chapter 9: “Available amount”

        1. Overview

        2. Section 332: The available amount

        3. Section 333: Group members with income from oil extraction subject to particular tax treatment in UK

        4. Section 334: Group members with income from shipping subject to particular tax treatment in UK

        5. Section 335: Group members with income from property rental subject to particular tax treatment in UK

        6. Section 336: Meaning of accounting expressions used in this Chapter

      11. Chapter 10: Other interpretative provisions

        1. Overview

        2. Section 337: The worldwide group

        3. Section 338: Meaning of “group”

        4. Section 339: Meaning of “ultimate parent”

        5. Section 340: Meaning of “corporate entity”

        6. Section 341: Meaning of “relevant non-corporate entity”

        7. Section 342: Treatment of entities stapled to corporate, or relevant non-corporate, entities

        8. Section 343: Treatment of business combinations

        9. Section 344: Meaning of “large” in relation to a group

        10. Section 345: Meaning of “UK group company” and “relevant group company”

        11. Section 346: Financial statements of the worldwide group

        12. Section 347: Non-compliant financial statements of the worldwide group

        13. Section 348: Non-existent financial statements of the worldwide group

        14. Section 349: References to amounts disclosed in financial statements

        15. Section 350: Translation of amounts disclosed in financial statements

        16. Section 351: Expressions taking their meaning from international accounting standards

        17. Section 352: Meaning of “relevant accounting period”

        18. Section 353: Other expressions

    8. Part 8: Offshore funds

      1. Overview

      2. Section 354: Power to make regulations about tax treatment of participants

      3. Section 355: Meaning of “offshore fund”

      4. Section 356: Meaning of “mutual fund”

      5. Section 357: Exceptions to definition of “mutual fund”

      6. Section 358: Meaning of “relevant income-producing asset”

      7. Section 359: Power to make regulations about exceptions to definition of “mutual fund”

      8. Section 360: Treatment of umbrella arrangements

      9. Section 361: Treatment of arrangements comprising more than one class of interest

      10. Section 362: Meaning of “participant” and “participation”

      11. Section 363: Meaning of “umbrella arrangements” and “part of umbrella arrangements”

    9. Part 9: Amendments to relocate provisions of tax legislation

      1. Overview

      2. Section 364: Oil activities

      3. Section 365: Alternative finance arrangements

      4. Section 366: Power to amend the alternative finance provisions

      5. Section 367: Leasing arrangements: finance leases and loans

      6. Section 368: Sale and lease-back etc

      7. Section 369: Factoring of income etc

      8. Section 370: UK representatives of non‑UK residents

      9. Section 371: Miscellaneous relocations

    10. Part 10: General provisions

      1. Overview

      2. Section 372: Orders and regulations

      3. Section 373: Abbreviated references to Acts

      4. Section 374: Minor and consequential amendments

      5. Section 375: Power to make consequential provision

      6. Section 376: Power to undo changes

      7. Section 377: Transitional provisions and savings

      8. Section 378: Repeals and revocations

      9. Section 379: Index of defined expressions

      10. Section 380: Extent

      11. Section 381: Commencement

      12. Section 382: Short title

    11. Schedule 1: Oil activities: new Chapter 16A of Part 2 of ITTOIA 2005

      1. Overview

      2. Section 225A: Meaning of “oil extraction activities”

      3. Section 225B: Meaning of “oil rights”

      4. Section 225C: Meaning of “ring fence income”

      5. Section 225D: Meaning of “ring fence trade”

      6. Section 225E: Other definitions

      7. Section 225F: Valuation where market value taken into account under section 2 of OTA 1975

      8. Section 225G: Valuation where disposal not at arm’s length

      9. Section 225H: Valuation where excess of nominated proceeds

      10. Section 225I: Valuation where relevant appropriation but no disposal

      11. Section 225J: Valuation where appropriation to refining etc

      12. Section 225K: Reduction of expenditure by reference to regional development grant

      13. Section 225L: Adjustment as a result of regional development grant

      14. Section 225M: Tariff receipts etc

      15. Section 225N: Expenditure on and under abandonment guarantees

      16. Section 225O: Relief for reimbursement expenditure under abandonment guarantees

      17. Section 225P: Payment under abandonment guarantee not immediately applied

      18. Section 225Q: Amounts excluded from section 225O(1)

      19. Section 225R: Introduction to sections 225S and 225T

      20. Section 225S: Relief for expenditure incurred by a participator in meeting defaulter’s abandonment expenditure

      21. Section 225T: Reimbursement by defaulter in respect of certain abandonment expenditure

      22. Section 225U: Interest on repayment of APRT

    12. Schedule 2: Alternative finance arrangements

      1. Overview

      2. Part 1: New Part 10A of ITA 2007

        1. Section 564A: Introduction

        2. Section 564B: Meaning of “financial institution”

        3. Section 564C: Purchase and resale arrangements

        4. Section 564D: Diminishing shared ownership arrangements

        5. Section 564E: Deposit arrangements

        6. Section 564F: Profit share agency arrangements

        7. Section 564G: Investment bond arrangements

        8. Section 564H: Provision not at arm’s length: exclusion of arrangements from sections 564C to 564G

        9. Section 564I: Purchase and resale arrangements

        10. Section 564J: Purchase and resale arrangements where return in foreign currency

        11. Section 564K: Diminishing shared ownership arrangements

        12. Section 564L: Other arrangements

        13. Section 564M: Treatment of alternative finance return as interest for ITTOIA 2005

        14. Section 564N: Alternative finance return under arrangements for trade or property business purposes

        15. Section 564O: Relief for some alternative finance return under Chapter 1 of Part 8 etc

        16. Section 564P: Tax relief schemes and arrangements

        17. Section 564Q: Deduction of income tax at source under Part 15

        18. Section 564R: Treatment of discount

        19. Section 564S: Treatment of bond-holder and bond-issuer

        20. Section 564T: Treatment as securities

        21. Section 564U: Arrangements not unit trust scheme or offshore fund

        22. Section 564V: Exclusion of alternative finance return from consideration for sale of assets

        23. Section 564W: Diminishing shared ownership arrangements not partnerships

        24. Section 564X: Treatment of principal under profit share agency arrangements

        25. Section 564Y: Provision not at arm’s length: relevant return

      3. Part 2: New Chapter 4 of Part 4 of TCGA 1992

        1. Sections 151H to 151S: Meaning of alternative finance arrangements etc

        2. Section 151T: Investment bond arrangements are qualifying corporate bonds

        3. Sections 151U to 151Y: Rules for investment bond arrangements and other rules

      4. Part 3: Other amendments

        1. Section 367A of ICTA: Alternative finance arrangements

        2. Section 173A of ITEPA: Alternative finance arrangements

        3. Sections 372A to 372D of ITA: Community investment tax relief: alternative finance arrangements

        4. Section 372A: Meaning of “loan” and “interest”

        5. Section 372B: Purchase and resale arrangements

        6. Section 372C: Deposit arrangements

        7. Section 372D: Profit share agency arrangements

    13. Schedule 3: Leasing arrangements: finance leases and loans

      1. Overview

      2. Part 1: New Part 11A of ITA 2007

        1. Chapter 1: Introduction

          1. Overview

          2. Section 614A: Overview of Part

          3. Section 614AA: Normal rent

          4. Section 614AB: Accountancy rental earnings

          5. Section 614AC: Rental earnings

        2. Chapter 2: Finance leases with return in capital form

          1. Overview

          2. Section 614B: Arrangements to which this Chapter applies

          3. Section 614BA: Purposes of this Chapter

          4. Section 614BB: Application of this Chapter

          5. Section 614BC: The conditions referred to in section 614BB(1)

          6. Section 614BD: Provisions supplementing section 614BC

          7. Section 614BE: The arrangements and circumstances referred to in section 614BC(8)

          8. Section 614BF: Current lessor taxed by reference to accountancy rental earnings

          9. Sections 614BG to 614BK: Reduction of taxable rent by cumulative rental excesses

            1. Overview

          10. Section 614BG: Reduction of taxable rent by cumulative rental excesses: introduction

          11. Section 614BH: Meaning of “accountancy rental excess” and “cumulative accountancy rental excess”

          12. Section 614BI: Reduction of taxable rent by the cumulative accountancy rental excess

          13. Section 614BJ: Meaning of “normal rental excess” and “cumulative normal rental excess”

          14. Section 614BK: Reduction of taxable rent by the cumulative normal rental excess

          15. Sections 614BL to 614BO: Relief for bad debts by reduction of cumulative rental excesses

            1. Overview

          16. Section 614BL: Relief for bad debts: reduction of cumulative accountancy rental excess

          17. Section 614BM: Recovery of bad debts following reduction under section 614BL

          18. Section 614BN: Relief for bad debts: reduction of cumulative normal rental excess

          19. Section 614BO: Recovery of bad debts following reduction under section 614BN

          20. Section 614BP: Effect of disposals of leases: general

          21. Section 614BQ: Assignments on which neither a gain nor a loss accrues

          22. Sections 614BR to 614BW: Capital allowances: claw-back of major lump sum

            1. Overview

          23. Section 614BR: Effect of capital allowances: introduction

          24. Section 614BS: Cases where expenditure taken into account under Part 2, 5 or 8 of CAA 2001

          25. Section 614BT: Cases where expenditure taken into account under other provisions of CAA 2001

          26. Section 614BU: Capital allowances deductions: waste disposal and cemeteries

          27. Section 614BV: Capital allowances deductions: films and sound recordings

          28. Section 614BW: Contributors to capital expenditure

          29. Section 614BX: Pre-26 November 1996 schemes where this Chapter does not at first apply

          30. Section 614BY: Post-25 November 1996 schemes to which Chapter 3 applied first

        3. Chapter 3: Other finance leases

          1. Overview

          2. Section 614C: Introduction to Chapter

          3. Section 614CA: Purpose of this Chapter

          4. Section 614CB: Leases to which this Chapter applies

          5. Section 614CC: Current lessor taxed by reference to accountancy rental earnings

          6. Section 614CD: Application of provisions of Chapter 2 for purposes of this Chapter

        4. Chapter 4: Supplementary provisions

          1. Overview

          2. Section 614D: Pre-26 November 1996 schemes and post-25 November 1996 schemes

          3. Section 614DA: Time apportionment where periods of account do not coincide

          4. Section 614DB: Periods of account and related periods of account and tax years

          5. Section 614DC: Connected persons

          6. Section 614DD: Assets which represent the leased asset

          7. Section 614DE: Parent undertakings and consolidated group accounts

          8. Section 614DF: Assessments and adjustments

          9. Section 614DG: Interpretation

      3. Part 2: New section 37A of TCGA 1992

        1. Overview

        2. Section 37A: Consideration on disposal of certain leases

    14. Schedule 4: Sale and lease‑back etc: new Part 12A of ITA 2007

      1. Overview

    15. Schedule 5: Factoring of income etc: new Chapters 5B and 5C of Part 13 of ITA 2007

      1. Overview

    16. Schedule 6: UK representatives of non‑UK residents

      1. Overview

      2. Part 1: New Chapters 2B and 2C of Part 14 of ITA 2007

        1. Chapter 2B: UK representative of non‑UK resident

          1. Overview

          2. Section 835C: Overview of Chapter

          3. Section 835D: Income tax chargeable on company’s income: application

          4. Section 835E: Branch or agency treated as UK representative

          5. Section 835F: Trade or profession carried on in partnership

          6. Section 835G: Agents

          7. Section 835H: Brokers

          8. Section 835I: Investment managers

          9. Section 835J: Persons acting under alternative finance arrangements

          10. Section 835K: Lloyd’s agents

          11. Section 835L: The independent broker conditions

          12. Section 835M: The independent investment manager conditions

          13. Section 835N: Investment managers: the 20% rule

          14. Section 835O: Meaning of “qualifying period”, “relevant disregarded income” and “beneficial entitlement”

          15. Section 835P: Treatment of transactions where 20% rule not met

          16. Section 835Q: Application of 20% rule to collective investment schemes

          17. Section 835R: Supplementary provision

          18. Section 835S: Interpretation of Chapter

        2. Chapter 2C: Income tax obligations and liabilities imposed on UK representatives

          1. Overview

          2. Section 835T: Introduction to Chapter

          3. Section 835U: Obligations and liabilities of UK representative

          4. Section 835V: Exceptions: notices and information

          5. Section 835W: Exceptions: criminal offences and penalties etc

          6. Section 835X: Indemnities

          7. Section 835Y: Meaning of “independent agent”

      3. Part 2: New Part 7A of TCGA 1992

        Part 7A: UK representatives of non‑UK residents

        1. Overview

        2. Chapter 1: Treatment of branch or agency as UK representative of non‑UK resident

          1. Overview

          2. Section 271A: Overview of Chapter

          3. Section 271B: Branch or agency treated as UK representative

          4. Section 271C: Trade or profession carried on in partnership

          5. Section 271D: Interpretation of Chapter

        3. Chapter 2: Capital gains tax obligations and liabilities imposed on UK representatives

          1. Overview

          2. Section 271E: Introduction to Chapter

          3. Section 271F: Obligations and liabilities of UK representative

          4. Section 271G: Exceptions: notices and information

          5. Section 271H: Exceptions: criminal offences and penalties etc

          6. Section 271I: Indemnities

          7. Section 271J: Meaning of “non‑UK resident” and “independent agent”

    17. Schedule 7: Miscellaneous relocations

      1. Overview

      2. Part 1: Relocation of section 38 of, and Schedule 15 to, FA 1973

        1. Overview

        2. Section 77B of TMA: Pre-conditions for serving secondary-liability notice

        3. Section 77C of TMA: Secondary-liability notices

        4. Section 77D of TMA: Payments under secondary-liability notices

        5. Section 77E of TMA: Exception for certain pre-1974 cases

        6. Section 77F of TMA: Issue, cancellation and effect of exemption certificates

        7. Section 77G of TMA: Liabilities for assessments made after exemption certificate cancelled

        8. Section 77H of TMA: Calculations under sections 77C(3) and 77G(7)

        9. Section 77I of TMA: Information

        10. Section 77J of TMA: Meaning of “related to a licence” as respects tax, or profits or gains

        11. Section 77K of TMA: Other definitions in Part 7A

      3. Part 2: Relocation of section 24 of FA 1974

        1. Overview

        2. Section 8(4A) and (4B) of TMA: Personal return

        3. Section 8ZA of TMA: Interpretation of section 8(4A)

        4. Section 15A of TMA: Non-resident’s staff are UK client’s employees for section 15 purposes

      4. Part 3: Relocation of section 42 of ICTA

        1. Overview

        2. Section 302A of ITTOIA: Appeals against proposed determinations

        3. Section 302B of ITTOIA: Section 302A: supplementary

        4. Section 302C of ITTOIA: Determination by tribunal

        5. Section 242 of CTA 2009: Determination by tribunal

      5. Part 4: Relocation of section 84A of ICTA

        1. Overview

        2. Section 94A of ITTOIA: Costs of setting up SAYE option scheme or CSOP scheme

        3. Section 272 of ITTOIA: Profits of a property business: application of trading income rules

      6. Part 5: Relocation of section 152 of ICTA

        1. Overview

        2. Section 54A of TMA: No questioning in appeal of amounts of certain social security income

        3. Section 54B of TMA: Notifications of taxable amounts of certain social security income

        4. Section 54C of TMA: Interpretation of sections 54A and 54B: “appropriate officer” etc

      7. Part 6: Relocation of section 337A(2) of ICTA

        1. Overview

        2. Section 1301A of CTA 2009: Restriction of deductions for interest

      8. Part 7: Relocation of section 475 of ICTA

        1. Overview

        2. Section 154A of ITTOIA: Certain non-UK residents with interest on 3½% War Loan 1952 Or After

      9. Part 8: Relocation of section 700 of ICTA

        1. Overview

        2. Section 682A of ITTOIA: Statements relating to estate income

      10. Part 9: Relocation of section 787 of ICTA

        1. Chapter 7 of Part 13 of ITA: Avoidance involving obtaining tax relief for interest

      11. Part 10: Relocation of sections 130 to 132 of FA 1988

        1. Overview

        2. Section 109B of TMA: Provisions for securing payment by company of outstanding tax

        3. Section 109C of TMA: Penalty for company’s failure to comply with section 109B

        4. Section 109D of TMA: Penalty for other persons if company fails to comply with section 109B

        5. Section 109E of TMA: Liability of other persons for unpaid tax

        6. Section 109F of TMA: Interpretation of sections 109B to 109E

      12. Part 11: Relocation of section 151 of FA 1989

        1. Section 30AA of TMA: Assessing income tax on trustees and personal representatives

      13. Part 12: Relocation of Schedule 12 to F(No 2)A 1992 so far as applying for income tax purposes

        1. Overview

        2. Section 837A of ITA: Overview of Chapter

        3. Section 837B of ITA: Application of Chapter

        4. Section 837C of ITA: Charge to income tax on winding up receipts

        5. Section 837D of ITA: Transfer of rights to payment

        6. Section 837E of ITA: Allowable deductions

        7. Section 837F of ITA: Election to carry back

        8. Section 837G of ITA: Relationship of Chapter with other income tax provisions

        9. Section 837H of ITA: Interpretation of Chapter

      14. Part 13: Relocation of section 200 of FA 1996 so far as applying for income tax purposes

        1. Overview

        2. Section 835B of ITA: Domicile for income tax purposes of overseas electors

      15. Part 14: Relocation of section 36 of FA 1998 and section 111 of FA 2009

        1. Overview

        2. Section 59F of TMA: Arrangements for paying tax on behalf of group members

        3. Sections 59G and 59H of TMA: Managed payment plans

      16. Part 15: Relocation of section 118 of FA 1998

        1. Overview

        2. Section 43E of TMA: Making of income tax claims by electronic communications etc

        3. Section 43F of TMA: Effect of directions under section 43E

      17. Part 16: Relocation of section 144 of FA 2000

        1. Overview

        2. Section 106A of TMA: Offence of fraudulent evasion of income tax

      18. Part 17: Relocation of section 199 of FA 2003

        1. Overview

        2. Section 18B of TMA: Savings income; regulations about European and international aspects

        3. Section 18C of TMA: Regulations under section 18B: provision about “paying agents”

        4. Section 18D of TMA: Content of regulations under section 18B: supplementary provision

        5. Section 18E of TMA: Interpretation of sections 18B to 18D: “prescribed” etc

      19. Part 18: Relocation of section 61 of F(No 2)A 2005

        1. Overview

        2. Paragraph 87A of Schedule 18 to FA 1998: Company ceasing to be UK resident on formation of SE by merger

        3. Paragraph 87B of Schedule 18 to FA 1998: SE ceasing to be UK resident

        4. Paragraph 87C of Schedule 18 to FA 1998: Meaning of SE

      20. Part 19: Relocation of paragraph 13 of Schedule 13 to FA 2007

        1. Overview

        2. Section 925A of ITA: Creditor repos

        3. Section 925B of ITA: Debtor repos

        4. Section 925C of ITA: Actual payments ignored if section 925A or 925B applies

        5. Section 925D of ITA: Power to modify repo sections

        6. Section 925E of ITA: Cases where section 925D applies: non-standard repos

        7. Section 925F of ITA: Interpretation of the repo sections

        8. Section 926 of ITA: Interpretation of Chapter

    18. Schedule 8: Minor and consequential amendments

      1. Overview

      2. Part 1: Double taxation relief

        1. Section 12B of TMA: Records to be kept for purposes of returns

        2. Section 24 of TMA: Power to obtain information as to income from securities

        3. Section 43D of TMA: Claims for double taxation relief in relation to petroleum revenue tax

        4. Section 790 of ICTA: Unilateral relief

        5. Sections 806A to 806K of ICTA: Foreign dividends: onshore pooling, utilisation of eligible unrelieved foreign tax and branches or agencies in the United Kingdom of persons resident elsewhere

        6. Section 807 of ICTA: Sale of securities with or without accrued interest

        7. Sections 812 to 814 of ICTA: Withdrawal of right to tax credit of certain non-resident companies connected with unitary states

        8. Section 816 of ICTA: Disclosure of information

        9. Schedule 26 to ICTA: Controlled foreign companies: reliefs against liability for tax in respect of chargeable profits

        10. Section 194 of FA 1993: DTR in relation to PRT

        11. Schedule 18 to FA 1998: Company tax returns, assessments and related matters

        12. Section 115 of FA 2004: Supplementary

        13. Section 527 of ITA: charitable trusts: exemption from charges under provisions to which section 1016 of ITA applies

        14. Section 1026 of ITA: meaning of “non-qualifying income” for the purposes of section 1025 of ITA (meaning of “modified net income”)

        15. Section 793 of CTA 2009: Intangible fixed assets: reallocation of degrouping charge within group and recovery: further requirements about elections under section 793

        16. Section 931H of CTA 2009: Dividends derived from transactions not designed to reduce tax

          Section 931J of CTA 2009: Schemes involving manipulation of controlled company rules

      3. Part 9: Sale and lease‑back etc

        1. Sections 779(13)(f), 781(4)(e), 781(5)(a) and 785 of ICTA: References to “woodlands”

        2. Section 781(5) of ICTA: Assets leased to traders and others: cessation of trade

        3. Broadcasting Act 1996, Greater London Authority Act 1999 and Transport Act 2000

      4. Part 10: Factoring of income etc

        1. Section 281A of ITTOIA: Sums to which sections 277 to 281 do not apply

      5. Part 11: UK representatives of non-UK residents

        1. Section 817 of ITA: The independent broker conditions

        2. Section 824 of ITA: Application of 20% rule to collective investment schemes

      6. Part 12: Amendments for purposes connected with other tax law rewrite Acts

        1. Section 59(3) of ICTA: Persons chargeable: markets, fairs, fisheries, tolls etc

        2. Greater London Authority Act 1999

        3. Section 48B(6) to (8) of FA 2005: Alternative finance arrangements: alternative finance investment bond: effects

        4. Paragraph 75 of Schedule 2 to CTA 2009: Investment bond arrangements entered into before 1 April 2007

    19. Schedule 9: Transitionals and savings etc

      1. Overview

      2. Part 3: Double taxation relief

      3. Part 10: Alternative finance arrangements

      4. Part 12: Factoring of income etc

        1. Application of section 809BZN of ITA 2007 (finance arrangements: exceptions)

        2. Application of section 809CZC of ITA 2007 (income-transfer under loan or credit transaction)

    20. Schedule 10: Repeals and revocations

      1. Overview

    21. Schedule 11: Index of defined expressions used in Parts 2 to 8

      1. Overview

  3. Commencement

  4. Hansard References

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