Interpretation
2.—(1) In these Regulations unless the context otherwise requires—
“the Board” means the Commissioners of Inland Revenue;
“large company” has the meaning given by regulation 3;
“Management Act” means the Taxes Management Act 1970;
“Schedule 18” means Schedule 18 to the Finance Act 1998;
“the Taxes Act” means the Income and Corporation Taxes Act 1988.
(2) References in these Regulations to profits of a company in any accounting period are references to the aggregate of—
(a)the amount of profits chargeable to corporation tax shown in the company’s assessment or determination under Schedule 18 for that accounting period, and on which corporation tax finally falls to be charged, and
(b)the amount of the company’s franked investment income in that period other than franked investment income which the company (if a member of a group) receives from companies within the group within the meaning of section 13(7) of the Taxes Act(1).
(3) References in these Regulations to the total liability of a company for an accounting period are references to the amount of tax payable for that period by the company as calculated in accordance with paragraph 8(1) of Schedule 18, reduced by the amount (if any) of deductions from payments made in that period to which section 559 of the Taxes Act(2) (payments to sub-contractors) applies.
Section 13(7) was amended by paragraph 11 of Schedule 16 to the Finance Act 1994 (c. 9) and by paragraph 1 of Schedule 6 to the Finance (No. 2) Act 1997 (c. 58).
Section 559 was amended by articles 381(2) and 382 of, and paragraph 61 of Schedule 9 and Schedule 10 to, S.I. 1989/2405 (N.I.19), section 2(4) of the Social Security (Consequential Provisions) Act 1992 (c. 6), section 2(4) of the Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), section 139(1) of, and paragraph 1 of Schedule 27 and Part VIII(21) of Schedule 29 to, the Finance Act 1995 (c. 4), section 54(5) of Finance Act 1997 (c. 16), and section 55(2) of, and paragraph 2(1) of Schedule 8 to, the Finance Act 1998.