Textual Amendments
F1Pt. 9A inserted (with effect in relation to disposals on or after 5.7.2016) by Finance Act 2016 (c. 24), s. 79(1), 82(1) (with s. 82(2)-(15)); which insertion also has effect so far as it would not otherwise have effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2)
(1)In this Part references to “other” persons are to be interpreted in accordance with subsections (2) to (4).
(2)A partnership or partners in a partnership may be regarded as a person or persons distinct from the individuals or other persons who are for the time being partners.
(3)The trustees of settled property may be regarded as persons distinct from the individuals or other persons who are for the time being the trustees.
(4)Personal representatives may be regarded as persons distinct from the individuals or other persons who are for the time being personal representatives.
(1)In this Part “arrangement” (except in the phrase “double taxation arrangements”) includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable.
(2)For the purposes of this Part any number of transactions may be regarded as constituting a single arrangement if—
(a)a common purpose can be discerned in them, or
(b)there is other sufficient evidence of a common purpose.
(1)In this Part references to a “disposal” of any property include any case in which the property is effectively disposed of (whether wholly or in part, as mentioned in subsection (2))—
(a)by one or more transactions, or
(b)by any arrangement.
(2)For the purposes of this Part—
(a)references to a disposal of land or any other property include a part disposal of the property, and
(b)there is a part disposal of property (“the asset”) where on a person making a disposal, any form of property derived from the asset remains undisposed of (including in cases where an interest or right in or over the asset is created by the disposal, as well as where it subsists before the disposal).
(1)In this Part “land” includes—
(a)buildings and structures,
(b)any estate, interest or right in or over land, and
(c)land under the sea or otherwise covered by water.
(2)In this Part references to property deriving its value from land include—
(a)any shareholding in a company deriving its value directly or indirectly from land,
(b)any partnership interest deriving its value directly or indirectly from land,
(c)any interest in settled property deriving its value directly or indirectly from land, and
(d)any option, consent or embargo affecting the disposition of land.
(1)For the purposes of sections 517B(1) and 517D(1) it does not matter whether the person (“P”) realising the profit or gain in question realises it for P or another person.
(2)For the purposes of subsection (1), if, for example by a premature sale, a person (“A”) directly or indirectly transmits the opportunity of realising a profit or gain to another person (“B”), A realises B's profit or gain for B.
(1)For the purposes of this Part a person (“A”) is related to another person (“B”)—
(a)throughout any period for which A and B are consolidated for accounting purposes,
(b)on any day on which the participation condition is met in relation to them, or
(c)on any day on which the 25% investment condition is met in relation to them.
(2)A and B are consolidated for accounting purposes for a period if—
(a)their financial results for a period are required to be comprised in group accounts,
(b)their financial results for the period would be required to be comprised in group accounts but for the application of an exemption, or
(c)their financial results for a period are in fact comprised in group accounts.
(3)In subsection (2) “group accounts” means accounts prepared under—
(a)section 399 of the Companies Act 2006, or
(b)any corresponding provision of the law of a territory outside the United Kingdom.
(4)The participation condition is met in relation to A and B (“the relevant parties”) on a day if, within the period of 6 months beginning with that day—
(a)one of the relevant parties directly or indirectly participates in the management, control or capital of the other, or
(b)the same person or persons directly or indirectly participate in the management, control or capital of each of the relevant parties.
(5)The 25% investment condition is met in relation to A and B if—
(a)one of them has a 25% investment in the other, or
(b)a third person has a 25% investment in each of them.
(6)Section 259NC of TIOPA 2010 applies for the purposes of determining whether a person has a “25% investment” in another person for the purposes of this section as it applies for the purposes of section 259NB(2) of that Act.
(7)In Chapter 2 of Part 4 of TIOPA 2010, sections 157(2), 158(4), 159(2) and 160(2) (which are about the interpretation of references to direct and indirect participation) apply in relation to subsection (4) as they apply in relation to subsection (4) of section 259NA of that Act.]