Part 16

Income Tax Acts definitions etc
Chapter 1

Definitions

The definitions
989
The following definitions apply for the purposes of the Income Tax Acts—
- “Act” has the meaning given by section 990,
- “
additional rate
” means the rate of income tax determined in pursuance of section 6(2)
...,
- “authorised unit trust” is to be read in accordance with sections 616 and 619 of CTA 2010,
- “bank” is to be read in accordance with section 991,
- “basic rate” means the rate of income tax determined in pursuance of section 6(2) ...,
- “basic rate limit” has the meaning given by section 10,
- “body of persons” means any body politic, corporate or collegiate and any company, fraternity, fellowship and society of persons whether corporate or not corporate,
- “building society” means a building society within the meaning of the Building Societies Act 1986 (c. 53),
- “capital allowance” means any allowance under CAA 2001,
- “the Capital Allowances Act” means CAA 2001,
- “chargeable gain” has the same meaning as in TCGA 1992,
- “chargeable period” means an accounting period of a company or a tax year,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- “
close company
”
is to be read in accordance with Chapter 2 of Part 10 of CTA 2010 (see in particular section 439 of that Act)
,
- “company” has the meaning given by section 992,
- “connected”, in relation to two persons being connected with one another, is to be read in accordance with sections 993 and 994,
- “control”, in relation to the control of a body corporate or a partnership, is to be read in accordance with section 995,
- “
default additional rate
” means the rate of income tax of that name determined pursuant to section 6C,
- “
default basic rate
” means the rate of income tax of that name determined pursuant to section 6C,
- “
default higher rate
” means the rate of income tax of that name determined pursuant to section 6C,
- “distribution” has the meaning given by Chapters 2 to 5 of Part 23 of CTA 2010, disregarding section 1027A of that Act,
- “
dividend additional rate
” means the rate of income tax specified in section 8(3),
- “dividend income” has the meaning given by section 19,
- “
dividend nil rate
” means the rate of income tax specified in section 8(A1),
- “dividend ordinary rate” means the rate of income tax specified in section 8(1),
- “dividend trust rate” means the rate of income tax specified in section 9(2),
- “dividend upper rate” means the rate of income tax specified in section 8(2),
- “farming” has the meaning given by section 996,
- “for accounting purposes” has the meaning given by section 997(4),
- “
foreign employment election
” means an election under section 41M of ITEPA 2003,
- “
foreign income claim
” means a claim under section 845A of ITTOIA 2005
,
- “forestry” is to be read in accordance with section 996,
- “generally accepted accounting practice” has the meaning given by section 997(1) and (3),
- “grossing up” is to be read in accordance with section 998,
- “higher rate” means the rate of income tax determined in pursuance of section 6(2) ...,
- “
higher rate limit
” has the meaning given by section 10,
- “
hire-purchase agreement
” is to be read in accordance with section 998A,
- “international accounting standards” has the meaning given by section 997(5),
- “local authority” has the meaning given by section 999,
- “local authority association” has the meaning given by section 1000,
- “market gardening” has the meaning given by section 996,
- “net income” has the meaning given by section 23 (see Step 2 in that section),
- “non-UK resident” means not resident in the United Kingdom (and references to a non-UK resident or a non-UK resident person are to a person who is not resident there),
- “normal self-assessment filing date”, in relation to a tax year, means the 31 January following the tax year,
- “notice” means notice in writing or in a form authorised (in relation to the case in question) by directions under section 43E(1) of TMA 1970,
- “offshore installation” has the meaning given by sections 1001 and 1002,
- “oil and gas exploration and appraisal” has the meaning given by section 1003,
- “ordinary share capital”, in relation to a company, means all the company's issued share capital (however described), other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the company's profits,
- “
the overseas part
”, in relation to a split year, has the meaning given in Part 3 of Schedule 45 to FA 2013 (statutory residence test: split year treatment);
- “overseas property business” has the meaning given by Chapter 2 of Part 3 of ITTOIA 2005,
- “period of account”—
  1. in relation to a person, means any period for which the person draws up accounts, and
  2. in relation to a trade, profession, vocation or other business, means any period for which the accounts of the business are drawn up,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- “personal representatives” in relation to a person who has died, means—
  1. in the United Kingdom, persons responsible for administering the estate of the deceased, and
  2. in a territory outside the United Kingdom, those persons having functions under its law equivalent to those of administering the estate of the deceased,
- “profits or gains” does not include chargeable gains,
- “property investment LLP” has the meaning given by section 1004,
...
- “
qualifying new resident
” has the meaning it has in Chapter 5 of Part 8 of ITTOIA 2005 (see section 845B of that Act)
,
- “qualifying policy” means a policy of insurance which is a qualifying policy for the purposes of Chapter 1 of Part 7 of ICTA,
- “recognised stock exchange” has the meaning given by section 1005,
- “registered pension scheme” has the meaning given by section 150(2) of FA 2004,
- “relevant foreign income” has the meaning given by section 830(1) to (3) of ITTOIA 2005 but also includes, for any purpose mentioned in any provision listed in section 830(4) of that Act, income treated as relevant foreign income for that purpose by that provision,
- “research and development” is to be read in accordance with section 1006,
- “retail prices index” means—
  1. the general index of retail prices (for all items) published by the Statistics Board, or
  2. if that index is not published for a relevant month, any substituted index or index figures published by the Board,
- “
savings additional rate
” means the rate of income tax of that name determined pursuant to section 7A,
- “
savings allowance
” has the meaning given by section 12B,
- “
savings basic rate
” means the rate of income tax of that name determined pursuant to section 7A,
- “
savings higher rate
” means the rate of income tax of that name determined pursuant to section 7A,
- “savings income” has the meaning given by section 18,
- “
savings nil rate
” means the rate of income tax specified in section 7(2),
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- “scheme administrator”, in relation to a pension scheme, has the meaning given by section 270 of FA 2004 (but see also sections 271 to 274 of that Act),
...
- “
Scottish basic rate
”
in relation to a tax year, means the Scottish basic rate set by a Scottish rate resolution for that year
...
- “Scottish intermediate rate”, in relation to a tax year, means any Scottish rate for that year which is named “intermediate” by the Scottish rate resolution setting it,
- “Scottish rate” in relation to a tax year, means a rate set by a Scottish rate resolution for that year,
- “Scottish rate resolution” means a resolution of the Scottish Parliament under section 80C of the Scotland Act 1998
- “
Scottish taxpayer
” has the same meaning as in Chapter 2 of Part 4A of the Scotland Act 1998
- “settled property” (together with references to property comprised in a settlement) is to be read in accordance with section 466,
- “settlor” is to be read in accordance with sections 467 to 473,
- “
shares, stock or other securities included in the official
UK
list
” is to be read in accordance with sections 467 to 473,” is to be read in accordance with section 1005,
- “
shares, stock or other securities listed on a recognised stock exchange
” is to be read in accordance with section 1005,
- “
split year
”, in relation to an individual, means a tax year that, as respects that individual, is a split year within the meaning of Part 3 of Schedule 45 to FA 2013 (statutory residence test: split year treatment);
- “
starting rate for savings
”
means the rate of income tax specified in section 7(1)
,
- “
starting rate limit for savings
” has the meaning given by section 12,
- “stepchild”, in relation to a civil partner, is to be read in accordance with section 246 of the Civil Partnership Act 2004 (c. 33),
- “51% subsidiary”, in relation to bodies corporate, has the same meaning as in the Corporation Tax Acts (see Chapter 3 of Part 24 of CTA 2010),
- “75% subsidiary”, in relation to bodies corporate, has the same meaning as in the Corporation Tax Acts (see Chapter 3 of Part 24 of CTA 2010),
- “tax”, if neither income tax nor corporation tax is specified, means either of those taxes,
...
- “tax year” has the meaning given by section 4(2),
- “the tax year 2007-08” (and any corresponding expression in which two years are similarly mentioned) has the meaning given by section 4(4),
- “total income” has the meaning given by section 23 (see Step 1 in that section and also section 31),
- “trade” includes any venture in the nature of trade,
- “
trade of dealing in or developing
UK
land
”, in relation to a non-UK resident person, has the meaning given by section 6B of
ITTOIA
2005,
- “tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal,
- “trust rate” means the rate of income tax specified in section 9(1),
- “UK generally accepted accounting practice” has the meaning given by section 997(2),
- “
the
UK
part
”, in relation to a split year, has the meaning given in Part 3 of Schedule 45 to FA 2013 (statutory residence test: split year treatment);
- “UK property business” has the meaning given by Chapter 2 of Part 3 of ITTOIA 2005,
- “UK resident” means resident in the United Kingdom (and references to a UK resident or a UK resident person are to a person who is resident there),
- “umbrella scheme” is to be read in accordance with section 619 of CTA 2010,
- “unauthorised unit trust” means a unit trust scheme which is neither an authorised unit trust nor an umbrella scheme,
- “unit holder” is to be read in accordance with sections 616 and 619 of CTA 2010,
- “unit trust scheme” has the meaning given by section 1007,
- “venture capital trust” and “VCT” have the same meaning as in Part 6 (see section 259(1)),
- “
Welsh additional rate
” means the rate of income tax of that name calculated in accordance with section 6B,
- “
Welsh basic rate
” means the rate of income tax of that name calculated in accordance with section 6B,
- “
Welsh higher rate
” means the rate of income tax of that name calculated in accordance with section 6B,
- “
Welsh taxpayer
” has the same meaning as in Chapter 2 of Part 4A of the Government of Wales Act 2006
- “woodlands” has the meaning given by section 996,
- “year of assessment” means a tax year, and
- “the year 1988-1989” means the tax year 1988-1989 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way).
Words in s. 989 inserted (with effect in accordance with s. 82 of the amending Act) by Finance Act 2016 (c. 24), s. 78(5) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))
Words in s. 989 inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 107
Words in s. 989 substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 7 para. 92 (with Sch. 9 paras. 1-9, 22)
Words in s. 989 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 562(2) (with Sch. 2)
Words in s. 989 inserted (24.7.2018) by Wales Act 2014 (c. 29), ss. 9(10), 14, 29(4); S.I. 2018/892, art. 3 (with arts. 5, 6, 8)
Words in s. 989 omitted (8.4.2010 for specified purposes and with effect in accordance with Sch. 6 para. 34(1) of the amending Act, 8.3.2012 with effect as mentioned in art. 18 of the commencing S.I) by virtue of Finance Act 2010 (c. 13), Sch. 6 para. 23(6); S.I. 2012/736, art. 18
Words in s. 989 inserted (16.12.2010 with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 2
S. 989 applied by 1970 c. 9, s. 12ZF(10) (as inserted (with effect in accordance with Sch. 7 para. 60 of the amending Act) by Finance Act 2015 (c. 11), Sch. 7 para. 43)
Words in s. 989 inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 4(11)(a)(17)
Word in s. 989 substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 33(2)
Words in s. 989 substituted (1.4.2008) by Statistics and Registration Service Act 2007 (c. 18), s. 74(1), Sch. 3 para. 16(b); S.I. 2008/839, art. 2
Words in s. 989 inserted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 8(2)
Words in s. 989 inserted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 8(3)
Words in s. 989 inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 5(8)(10)
Words in s. 989 substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 33(4)
Words in s. 989 omitted (with effect in accordance with Sch. 38 para. 12 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 38 para. 10(a)
Words in s. 989 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 562(3) (with Sch. 2)
Words in s. 989 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 562(8) (with Sch. 2)
Words in s. 989 omitted (6.4.2011) (with effect in accordance with Sch. 2 paras. 7(3), 8 of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 3(2); S.I. 2011/662, art. 2
Words in s. 989 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 562(12) (with Sch. 2)
Words in s. 989 inserted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 8(4)
Words in s. 989 inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 258 (with Sch. 9 paras. 1-9, 22)
Words in s. 989 omitted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 33(3)
Words in s. 989 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 562(10) (with Sch. 2)
Words in s. 989 omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 63(16)
Words in s. 989 inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 37(2)(f)(4)
Words in s. 989 inserted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 26 para. 12(12)
Words in s. 989 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 562(4) (with Sch. 2)
Words in s. 989 substituted (1.4.2008) by Statistics and Registration Service Act 2007 (c. 18), s. 74(1), Sch. 3 para. 16(a); S.I. 2008/839, art. 2
Words in s. 989 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 562(11) (with Sch. 2)
Words in s. 989 substituted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 4(11)(b)(17)
Words in s. 989 inserted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 462
Words in s. 989 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 562(9) (with Sch. 2)
Words in s. 989 inserted (with effect in accordance with Sch. 38 para. 12 of the amending Act) by Finance Act 2014 (c. 26), Sch. 38 para. 10(b)
Words in s. 989 inserted (6.4.2018) by virtue of The Scottish Rates of Income Tax (Consequential Amendments) Order 2018 (S.I. 2018/459), arts. 1(2), 6(8)
S. 989 applied by 1992 c. 12, s. 4(6) (as inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 295(7) (with Sch. 2))
Words in s. 989 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 562(5) (with Sch. 2)
Words in s. 989 inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 38(3), Sch. 8 para. 2(3) (with Sch. 8 Pt. 3)
Words in s. 989 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 719, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
Words in s. 989 inserted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Finance Act 2016 (c. 24), s. 6(21)(24); S.I. 2016/1161, regs. 2, 3
Words in s. 989 inserted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Scotland Act 2016 (c. 11), ss. 13(14), 14(13)(c)(15), 72(3); S.I. 2016/1161, regs. 2, 3
Words in s. 989 omitted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Scotland Act 2016 (c. 11), ss. 13(14), 14(13)(a)(15), 72(3); S.I. 2016/1161, regs. 2, 3
Words in s. 989 substituted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Scotland Act 2016 (c. 11), ss. 13(14), 14(13)(b)(15), 72(3); S.I. 2016/1161, regs. 2, 3
Words in s. 989 inserted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Finance Act 2016 (c. 24), s. 6(21)(24); S.I. 2016/1161, regs. 2, 3
Words in s. 989 inserted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Finance Act 2016 (c. 24), s. 6(21)(24); S.I. 2016/1161, regs. 2, 3