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Alphabetic index of terms defined in Part 9A

“Accounting period�, in relation to a CFC, is defined at INTM248150

“Accounting profits�, in relation to a CFC, is defined at INTM248200

“Arrangement� is used in targeted anti-avoidance rules and includes:

• any agreement, scheme, transaction or understanding (whether or not legally enforceable), and
• a series of arrangements or a part of an arrangement.

The definition of “arrangement� is wide and will cover arrangements that arise from a legal agreement between parties through to arrangements that rely only on a verbal understanding. The second bullet point means that an “arrangement� includes a series of arrangements or transactions making it possible to consider the overall transactions or arrangements as a whole when considering what the purpose of the arrangement is or an “arrangement� can be a part of an arrangement that exists within a wider whole and the focus can be on that part of the overall arrangement when considering its purpose.

“Assumed taxable total profits� and “Assumed total profits�, in relation to a CFC, are defined at INTM239200

“Banking business� means the business of:-

• banking, deposit-taking, money-lending or debt factoring, or
• any activity similar to an activity falling within the above bullet point.

A “CFC� is a non-UK resident company which is controlled by a UK resident person or persons (but see INTM236100 for certain cases in which a non-UK resident company is to be taken to be a CFC even though it is not controlled by a UK resident person or persons).

“The CFC charge� is defined at INTM194100

“Chargeable company� is defined at INTM194500

“Chargeable profits� is defined at INTM194200

“Company� is to be read subject to TIOPA10/S371VE (see INTM236500) which applies Part 9A to unincorporated cells of protected cell companies or incorporated cells of incorporated cell companies as if the individual cells were non-UK resident companies. Otherwise “company� takes its normal Corporation Taxes Act definition at .

“Company tax return� means a return required to be made under .

“Contract of insurance� has the meaning given by ).

“Control� is defined at INTM236000

“The corporation tax assumptions� are defined at INTM239300

“Creditable tax� is defined at INTM230000

“The HMRC Commissioners� means the Commissioners for Her Majesty’s Revenue and Customs.

“Insurance business� means the business of effecting or carrying out of contracts of insurance, including the investment of premiums received.

“Intellectual property� means:

• any patent, trade mark, registered design, copyright or design right, or
• any licence or other right in relation to anything falling within the above bullet point.

“Interest�, as in interest in a company, is defined at INTM227000

“The local tax amount�, in relation to a CFC, is defined at INTM226150

“Non-trading finance profits� are defined at INTM248400

“Non-trading income� means income which is not trading income (see trading income).

“Property business profits� are defined at INTM248550

“Relevant finance lease� is defined at INTM248600 and includes any part of such a lease.

“Relevant interest� is defined at INTM227000

“Tax advantage� has the meaning given by and includes at CTA10/1139(2)(da) the avoidance or reduction of a CFC charge or assessment to a charge.

“Trading finance profits� are defined at INTM248450

“Trading income�, in relation to a CFC, means income brought into account in determining the CFC’s trading profits for the accounting period in question.

“Trading profits�, in relation to a CFC, means any profits included in the CFC’s assumed total profits for the accounting period in question on the basis that they would be chargeable to corporation tax under .

“UK connected capital contribution�, in relation to a CFC, means any capital contribution to the CFC made (directly or indirectly) by a UK resident company connected with the CFC (whether in relation to an issue of shares in the CFC or otherwise).

“UK permanent establishment�, in relation to a non-UK resident company, means a permanent establishment which the company has in the United Kingdom and through which it carries on a trade in the United Kingdom.