(1) If the investment consists of a loan and within the 5 year period—
(a) the investor disposes of the whole of the investment, otherwise than by way of a permitted disposal, or
(b) the investor disposes of a part of the investment,
any CITR attributable to the investment in respect of any accounting period must be withdrawn.
(2) For the purposes of this section—
(a) a disposal is “permitted” if—
(i) it is by way of a distribution in the course of dissolving or winding up the CDFI,
(ii) it is a disposal within section 24(1) of TCGA 1992 (entire loss, destruction, dissipation or extinction of asset),
(iii) it is a deemed disposal under section 24(2) of that Act (claim that value of asset has become negligible), or
(iv) it is made after the CDFI has ceased to be accredited under Chapter 2 of Part 7 of ITA 2007, and
(b) a full or partial repayment of the loan is not treated as giving rise to a disposal.
244 Disposal of securities or shares during 5 year period
(1) This section applies if the investment consists of securities or shares and—
(a) the investor disposes of the whole or any part of the investment (“the former investment”) within the 5 year period,
(b) the CDFI has not ceased to be accredited under Chapter 2 of Part 7 of ITA 2007 before the disposal, and
(c) the disposal does not arise as a result of an event within section 249(1)(a) (repayment, redemption or repurchase of securities or shares included in the investment).
(2) If the disposal is not a qualifying disposal, any CITR attributable to the former investment in respect of any accounting period must be withdrawn.
(3) Subsections (3A) to (3H) apply if—
(a) the disposal is a qualifying disposal, and
(b) the investor has made a claim under section 220 in respect of the former investment for an accounting period (“period X”).
(3A) Subsection (3B) applies if the total of the following CITR does not exceed A—
(a) any CITR attributable to the former investment in respect of period X given under section 220, and
(b) any CITR attributable to the former investment in respect of later accounting periods given under section 220A where period X is the accounting period mentioned in section 220A(1)(a).
(3B) All CITR falling within subsection (3A)(a) or (b) must be withdrawn.
(3C) If the total of the CITR falling within subsection (3A)(a) or (b) exceeds A, that total must be reduced by A.
(3D) For the purposes of subsection (3C) CITR given in a later accounting period must be reduced before CITR given in an earlier accounting period.
(3E) For the purposes of subsections (3A) and (3C) “A” is an amount equal to 5% of the amount or value of the consideration (if any) which the investor receives for the former investment.
(3F) If—
(a) the total of the CITR falling within subsection (3A)(a) or (b)(“B”) is less than
(b) the amount (“C”) which is equal to 5% of the invested amount in respect of the former investment for period X,
“A” is to be reduced by multiplying it by the fraction—
B C
(3G) If the amount of CITR attributable to the former investment in respect of an accounting period has been reduced before the CITR is obtained, the amount referred to in subsection (3F) as B is to be treated for the purposes of that subsection as the amount it would have been without the reduction.
(3H) Subsection (3G) does not apply to a reduction by virtue of section 241 (attribution: bonus shares).
(4) For the purposes of this section “qualifying disposal” means a disposal that is—
(a) by way of a bargain made at arm's length, or
(b) a permitted disposal (within the meaning of section 243).
(5) ...
() . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
() . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B
C
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
245 Repayment of loan capital during 5 year period
(1) If the investment consists of a loan and—
(a) the average capital balance of the loan for the third, fourth or final year of the 5 year period is less than the permitted balance for the year in question, and
(b) the difference between those balances is not an amount of insignificant value,
any CITR attributable to the investment in respect of any accounting period must be withdrawn.
(2) For the purposes of this section—
“the average capital balance” of the loan for a period is the mean of the daily balances of capital outstanding during that period, ignoring any non-standard repayments of the loan made in that period or at any earlier time, and
“the permitted balance” of the loan is—
for the third year of the 5 year period, 75% of the average capital balance for the period of 6 months beginning 18 months after the investment date,
for the fourth year of that period, 50% of that balance, and
for the final year of that period, 25% of that balance.
(3) For the purposes of subsection (2) a repayment of the loan is a non-standard repayment if subsection (4) or (5) applies.
(4) This subsection applies if the repayment is made at the choice or discretion of the CDFI, and not as a direct or indirect consequence of any obligation provided for under the terms of the loan agreement.
(5) This subsection applies if the repayment is made as a result of the failure of the CDFI to meet any obligation of the loan agreement which—
(a) is imposed merely because of the commercial risks to which the investor is exposed as lender under that agreement, and
(b) is no more likely to be breached than any obligation that might reasonably have been agreed in respect of the loan in the absence of this Part.
(6) For the purposes of this section “an amount of insignificant value” means an amount which—
(a) is not more than £1,000, or
(b) if it is more than £1,000, is insignificant in relation to the average capital balance of the loan for the year of the 5 year period in question.
246 Value received by investor during 6 year period: loans
(1) This section applies if the investment consists of a loan and the investor receives any value (other than an amount of insignificant value) from the CDFI during the 6 year period (see section 249 for provision about when value is received).
(2) The investor is treated for the purposes of—
(a) section 222 (determination of “invested amount”), and
(b) section 245 (repayments of loan capital),
as having received a repayment of the loan of an amount equal to the amount of the value received.
(3) For those purposes the repayment is treated as made—
(a) if the value is received in the first or second year of the 6 year period, at the beginning of that second year, and
(b) if the value is received in a later year of that period, at the beginning of the year in question.
(4) For the purposes of section 245 the repayment is treated as a repayment other than a non-standard repayment (within the meaning of that section).
(5) For the purposes of this section “an amount of insignificant value” means an amount of value which—
(a) is not more than £1,000, or
(b) if it is more than £1,000, is insignificant in relation to the average capital balance of the loan for the year of the 6 year period in which the value is received.
(6) For the purposes of subsection (5)(b)—
(a) “the average capital balance” of the loan for a year is the mean of the daily balances of capital outstanding during the year (ignoring the receipt of value in question), and
(b) any value received in the first year of the 6 year period is treated as received at the beginning of the second year of that period.
(7) This section is subject to section 251 (value received if there is more than one investment).
(8) Value received is ignored, for the purposes of this section, so far as the CITR attributable to any loan, securities or shares in respect of any one or more accounting periods has already been reduced or withdrawn on its account.
247 Value received by investor during 6 year period: securities or shares
(1) This section applies if the investment consists of securities or shares and—
(a) the investor receives any value (other than an amount of insignificant value) from the CDFI during the 6 year period (see section 249 for provision about when value is received),
(b) the investment or a part of it is held by the investor at the time the value is received and has been held by the investor, as sole beneficial owner, continuously since the investment was made (“the continuing investment”),
(c) the receipt is wholly or partly in excess of the permitted level of receipts in respect of the continuing investment, and
(d) the amount of that excess is not an amount of insignificant value.
(2) Any CITR attributable to the continuing investment in respect of any accounting period must be withdrawn.
(3) For the purposes of subsection (1) the permitted level of receipts is exceeded if—
(a) any amount of value is received by the investor (ignoring any amounts of insignificant value) in the first 3 years of the 6 year period, or
(b) the total amount of value received by the investor (ignoring any amounts of insignificant value)—
(i) before the beginning of the fifth year of that period, exceeds 25% of the invested capital,
(ii) before the beginning of the final year of that period, exceeds 50% of the invested capital, or
(iii) before the end of that period, exceeds 75% of the invested capital.
(4) In this section—
“the invested capital”, in relation to the continuing investment, means the amount subscribed for the securities or shares concerned, and
“an amount of insignificant value” means an amount of value which—
is not more than £1,000, or
if it is more than £1,000, is insignificant in relation to the amount subscribed by the investor for the securities or shares included in the continuing investment.
(5) This section is subject to section 251 (value received if there is more than one investment).
(6) Value received is ignored, for the purposes of this section, so far as CITR attributable to any loan, securities or shares in respect of any one or more accounting periods has already been reduced or withdrawn on its account.
248 Receipts of insignificant value to be added together
(1) This section applies if—
(a) value is received (“the relevant receipt”) by the investor from the CDFI at any time during the 6 year period relating to the investment (see section 249 for provision about when value is received),
(b) the investor has received from the CDFI one or more receipts of insignificant value at a time or times—
(i) during that period, but
(ii) not later than the time of the relevant receipt, and
(c) the total amount of the value of the receipts within paragraphs (a) and (b) is not an amount of insignificant value.
(2) The investor is treated for the purposes of this Part as if the relevant receipt had been a receipt of an amount of value equal to that total amount.
(3) A receipt does not fall within subsection (1)(b) if the whole or any part of it has previously formed part of a total amount falling within subsection (1)(c).
(4) For the purposes of this section “an amount of insignificant value” means an amount of value which—
(a) is not more than £1,000, or
(b) if it is more than £1,000, is insignificant in relation to the relevant amount.
(5) If the investment consists of a loan, the relevant amount for the purposes of subsection (4) is—
(a) if the relevant receipt is received in the first or second year of the 6 year period, the average capital balance of the loan for the second year of that period, and
(b) if the relevant receipt is received in a later year, the average capital balance of the loan for the year in question.
(6) For the purposes of subsection (5)—
(a) the average capital balance of the loan for a year is the mean of the daily balances of capital outstanding during the year, and
(b) the relevant receipt and any receipts within subsection (1)(b) are ignored when calculating the average capital balance for the year in question.
(7) If the investment consists of securities or shares, the relevant amount for the purposes of subsection (4) is—
(a) if the relevant receipt is received in the first year of the 6 year period, the amount subscribed for the securities or shares, and
(b) in any other case, the amount subscribed for such of the securities or shares as—
(i) are held by the investor at the time the relevant receipt is received, and
(ii) have been held by the investor, as sole beneficial owner, continuously since the investment was made.
(8) This section is subject to section 251 (value received if there is more than one investment).
(1) For the purposes of this Chapter the investor receives value from the CDFI at any time when the CDFI—
(a) repays, redeems or repurchases any securities or shares included in the investment,
(b) releases or waives any liability of the investor to the CDFI or discharges, or undertakes to discharge, any liability of the investor to a third person,
(c) makes a loan or advance to the investor which has not been repaid in full before the investment is made,
(d) provides a benefit or facility for—
(i) the investor or any associate of the investor, or
(ii) a director or employee of the investor or any associate of a director or employee of the investor,
(e) disposes of an asset to the investor for no consideration or for a consideration of an amount or value which is less than the market value of the asset,
(f) acquires an asset from the investor for a consideration of an amount or value which is more than the market value of the asset, or
(g) makes a payment to the investor other than a qualifying payment.
(2) But if the investor is a bank, the investor does not receive value from the CDFI when the CDFI makes a deposit with the investor in the course of the CDFI's ordinary banking arrangements with the investor.
(3) For the purposes of subsection (1)(b) the CDFI is treated as having released or waived a liability if the liability is not discharged within 12 months of the time when it ought to have been discharged.
(4) For the purposes of subsection (1)(c) the following are treated as loans made by the CDFI to the investor—
(a) the amount of any debt due from the investor to the CDFI (other than an ordinary trade debt), and
(b) the amount of any debt due from the investor to a third person which has been assigned to the CDFI.
(5) For the purposes of this section—
(a) references to a debt or liability do not, in relation to a person, include references to any debt or liability which would be discharged by the making by that person of a qualifying payment,
(b) references to a benefit or facility do not include references to any benefit or facility provided in circumstances such that, if a payment had been made of an amount equal to its value, that payment would have been a qualifying payment, and
(c) any reference to a payment or disposal to a person includes a reference to a payment or disposal made to that person indirectly or to that person's order or for that person's benefit.
(6) In subsection (5) references to “a person” include references to any other person who, at any time in the 6 year period, is connected with that person, whether or not the other person is so connected at the material time.
(7) In this section—
“bank” has the meaning given by section 1120,
“qualifying payment” means—
any payment by any person for any goods, services or facilities provided by the investor (in the course of the investor's trade or otherwise) which is reasonable in relation to the market value of those goods, services or facilities,
the payment by any person of any interest which represents no more than a reasonable commercial return on money lent to that person,
the payment by any company of any dividend or other distribution which does not exceed a normal return on any investment in shares in or securities of that company,
any payment for the acquisition of an asset which does not exceed its market value,
the payment by any person, as rent for any property occupied by the person, of an amount which is not more than a reasonable and commercial rent for the property, and
a payment in discharge of an ordinary trade debt, and
“ordinary trade debt” means any debt for goods or services supplied in the ordinary course of a trade or business if any credit given—
is for not more than 6 months, and
is not longer than that normally given to customers of the person carrying on the trade or business.
(1) In a case falling within a provision listed in column 1 of the following table, the amount of value received for the purposes of this Chapter is given by the corresponding entry in column 2 of the table.
Provision | The amount of value received
Section 249(1)(a) | The amount received by the investor
Section 249(1)(b) | The amount of the liability
Section 249(1)(c) | The amount of the loan or advance, less the amount of any repayment made before the investment is made
Section 249(1)(d)(i) | The cost to the CDFI of providing the benefit or facility, less any consideration given for it by the investor or any associate of the investor
Section 249(1)(d)(ii) | The cost to the CDFI of providing the benefit or facility, less any consideration given for it by the investor or any associate of the investor or by a person within subsection (2)
Section 249(1)(e) or (f) | The difference between the market value of the asset and the consideration (if any) received for it
Section 249(1)(g) | The amount of the payment
(2) The persons within this subsection are—
(a) in a case where the benefit or facility was provided to a director or employee, the director or employee or any associate of the director or employee, and
(b) in a case where the benefit or facility was provided to an associate of a director or employee, the associate or the director or employee.
251 Value received if there is more than one investment
(1) This section applies if—
(a) the investor makes two or more investments in the CDFI,
(b) the investor is eligible for and claims CITR in respect of those investments, and
(c) the investor receives value (other than value within section 249(1)(a)) which is received within the 6 year periods relating to two or more of those investments.
(2) Sections 246, 247, 248 and 252 have effect in relation to each investment referred to in subsection (1)(c) as if the amount of the value received were reduced by multiplying it by the fraction—
A
B
where—
A is the appropriate amount in respect of the investment in question, and
B is the sum of that amount and the appropriate amount or amounts in respect of the other investment or investments.
(3) If the investment consists of a loan, the appropriate amount for the purposes of subsection (2) is—
(a) if the value is received in the first or second year of the 6 year period, the average capital balance of the loan for the second year of that period, and
(b) if the value is received in a later year, the average capital balance of the loan for the year in question.
(4) For the purposes of subsection (3)—
(a) the average capital balance of the loan for a year is the mean of the daily balances of capital outstanding during the year, and
(b) the receipt of value is ignored when calculating the average capital balance for the year in question.
(5) If the investment consists of securities or shares, the appropriate amount for the purposes of subsection (2) is—
(a) if the value is received in the first year of the 6 year period, the amount subscribed for the securities or shares, and
(b) in any other case, the amount subscribed for such of the securities or shares as—
(i) are held by the investor at the time the value is received, and
(ii) have been held by the investor, as sole beneficial owner, continuously since the investment was made.
(1) This section applies if the investment consists of securities or shares and—
(a) the investor receives any value (other than an amount of insignificant value) from the CDFI during the 6 year period, and
(b) the investment or a part of it is held by the investor at the time the value is received and has been held by the investor, as sole beneficial owner, continuously since the investment was made (“the continuing investment”),
but no CITR attributable to the continuing investment is withdrawn under section 247 as a result of the receipt.
(2) For the purposes of calculating any CITR in respect of any securities or shares included in the continuing investment for any relevant accounting period, the amount subscribed for the securities or shares included in the continuing investment is treated as reduced by the amount of the value received.
(3) For this purpose the “relevant” accounting periods are—
(a) any accounting period ending on or after the anniversary of the investment date immediately before the receipt of value, or
(b) if the value was received on an anniversary of the investment date, any accounting period ending on or after that anniversary.
(4) For the purposes of this section “an amount of insignificant value” means an amount of value which—
(a) is not more than £1,000, or
(b) if it is more than £1,000, is insignificant in relation to the amount subscribed by the investor for the securities or shares included in the continuing investment.
(5) This section is subject to section 251 (value received if there is more than one investment).
253 Receipts of value by or from connected persons
In sections 246 to 252, if the context permits, references to the investor or the CDFI include references to any person who at any time in the 6 year period relating to the investment is connected with the investor or, as the case may be, the CDFI, whether or not the person is connected at the material time.
(1) This section applies if any CITR has been obtained which falls to be withdrawn or reduced under this Chapter.
(2) The CITR must be withdrawn or reduced by making an assessment to corporation tax for the accounting period for which the CITR was obtained.
(3) An assessment under subsection (2) may be made at any time not more than 6 years after the end of the accounting period for which the CITR was obtained.
(4) Subsection (3) is not to be taken to limit the application of paragraph 46(2A) of Schedule 18 to the Finance Act 1998 (loss of tax brought about deliberately).
(1) In this Part—
(a) references to a “loan” include references to alternative finance arrangements, and
(b) references to “interest” include references to alternative finance return.
(2) In subsection (1)—
“alternative finance arrangements” means arrangements to which any of the following applies—
section 503 of CTA 2009 (purchase and resale arrangements),
section 505 of that Act (deposit arrangements),
section 506 of that Act (profit share agency arrangements), and
“alternative finance return” has the meaning given by section 511 and 513(1) and (2) of that Act.
(3) Subsection (1) needs to be read with—
(a) section 257, in the case of arrangements to which section 503 of CTA 2009 applies,
(b) section 258, in the case of arrangements to which section 505 of that Act applies, and
(c) section 259, in the case of arrangements to which section 506 of that Act applies.
(1) This section applies if, under arrangements to which section 503 of CTA 2009 applies, a person (“the first purchaser”) purchases an asset that is sold to another person (“the second purchaser”).
(2) This Part has effect in relation to the arrangements in accordance with subsections (3) to (9).
(3) The first purchaser is treated as making a loan to the second purchaser.
(4) The amount of the loan is treated as being equal to the first purchase price.
(5) If the arrangements provide that the first purchaser will transfer ownership of the asset to the second purchaser in instalments—
(a) references to the loan being drawn down over a period of time include references to the asset being transferred to the second purchaser in instalments,
(b) references to the date on which the first amount of the loan is drawn down include references to the date on which the first instalment is transferred to the second purchaser, and
(c) references to the amount drawn down at a given date include references to the value of the instalments transferred at that date.
(6) In calculating the amount of capital outstanding on the loan, each payment of the second purchase price (or part of the second purchase price), as reduced by any amount of alternative finance return (within the meaning of Chapter 6 of Part 6 of CTA 2009) included within each payment, is treated as repayment of the loan capital.
(7) References to the beneficial owner of the loan include references to the person beneficially entitled to payment of the second purchase price.
(8) References to the disposal of the whole or any part of the loan include references to the disposal of the right to receive payment of the whole or any part of the outstanding second purchase price.
(9) If arrangements to which section 503 of CTA 2009 applies are, by virtue of this section, qualifying investments under Chapter 2 of this Part, paragraph (f) of section 249(1) above is to be ignored in relation to the arrangements concerned.
(10) In this section “the first purchase price” and “the second purchase price” have the same meaning as in section 503 of CTA 2009.
(1) This section applies if, under arrangements to which section 505 of CTA 2009 applies, a person (“the depositor”) deposits money with a financial institution.
(2) This Part has effect in relation to the arrangements in accordance with subsections (3) to (9).
(3) The depositor is treated as making a loan to the financial institution.
(4) The amount of the loan is treated as being equal to the money deposited under the arrangements.
(5) If the arrangements provide that the depositor will deposit a sum of money with the financial institution in instalments—
(a) references to the loan being drawn down over a period of time include references to the depositor depositing a sum of money with the financial institution in instalments,
(b) references to the date on which the first amount of the loan is drawn down include references to the date on which the first instalment is deposited with the financial institution, and
(c) references to the amount drawn down at a given date include references to the value of the instalments deposited with the financial institution at that date.
(6) The capital outstanding on the loan is treated as being equal to the balance of the repayable deposit.
(7) References to any repayment of the loan include references to any repayment of the deposit.
(8) References to the beneficial owner of the loan include references to the person beneficially entitled to repayment of the deposit.
(9) References to the disposal of the whole or any part of the loan include references to the disposal of the right to receive repayment of the whole or any part of the deposit.
(10) In this section “financial institution” has the same meaning as in Chapter 6 of Part 6 of CTA 2009 (see section 502 of that Act).
(1) This section applies if, under arrangements to which section 506 of CTA 2009 applies, a person (“the principal”) appoints a financial institution as agent.
(2) This Part has effect in relation to the arrangements in accordance with subsections (3) to (9).
(3) The principal is treated as making a loan to the agent.
(4) The amount of the loan is treated as being equal to the money provided by the principal to the agent under the arrangements.
(5) If the arrangements provide that the principal will provide a sum of money to the agent in instalments—
(a) references to the loan being drawn down over a period of time include references to the principal providing a sum of money to the agent in instalments,
(b) references to the date on which the first amount of the loan is drawn down include references to the date on which the first instalment is provided to the agent, and
(c) references to the amount drawn down at a given date include references to the value of the instalments provided to the agent at that date.
(6) The capital outstanding on the loan is treated as being equal to the balance of the repayable money provided to the agent.
(7) References to any repayment of the loan include references to any repayment of the money provided to the agent.
(8) References to the beneficial owner of the loan include references to the person beneficially entitled to repayment of the money provided to the agent.
(9) References to the disposal of the whole or any part of the loan include references to the disposal of the right to receive repayment of the whole or any part of the money provided to the agent.
(10) In subsection (1) “financial institution” has the same meaning as in Chapter 6 of Part 6 of CTA 2009 (see section 502 of that Act).
(1) If—
(a) the investor has obtained CITR in respect of the investment, and
(b) an event occurs because of which CITR attributable to the investment in respect of any accounting period falls to be withdrawn or reduced by virtue of section 243, 244, 245 or 247,
the investor must give an officer of Revenue and Customs a notice containing particulars of the event.
(2) Subject to subsection (3), a notice under subsection (1) must be given not later than the end of the period of 12 months beginning with the end of the accounting period in which the event occurred.
(3) If—
(a) the investor is required to give a notice as a result of the receipt of value by a person connected with the investor (see section 253), and
(b) the end of the period of 60 days beginning when the investor comes to know of that event is later than the final notice date under subsection (2),
the notice must be given before the end of that 60 day period.
(1) No obligation as to secrecy or other restriction on the disclosure of information imposed by statute or otherwise prevents the disclosure of information—
(a) by the Secretary of State to an officer of Revenue and Customs for the purpose of assisting Her Majesty's Revenue and Customs to discharge their functions under the Corporation Tax Acts so far as relating to matters arising under this Part, or
(b) by an officer of Revenue and Customs to the Secretary of State for the purpose of assisting the Secretary of State to discharge the Secretary of State's functions in connection with this Part.
(2) Information obtained by such disclosure is not to be further disclosed except for the purposes of legal proceedings arising out of the functions referred to.
(1) For the purposes of this Part—
(a) loans made by or to, or disposed of by, a nominee for a person are treated as made by or to, or disposed of by, that person, and
(b) securities or shares subscribed for by, issued to, acquired or held by or disposed of by a nominee for a person are treated as subscribed for by, issued to, acquired or held by or disposed of by that person.
(2) For the purposes of subsection (1) references to things done by or to a nominee for a person include things done by or to a bare trustee for a person.
263 Application for postponement of tax pending appeal
No application may be made under section 55(3) or (4) of TMA 1970 (application for postponement of payment of tax pending appeal) on the ground that a company is eligible for CITR unless a claim for the CITR has been duly made by the company under this Part.
264 Identification of securities or shares on a disposal
(1) This section applies for the purpose of identifying the securities or shares disposed of in any case where—
(a) the investor disposes of part of a holding of securities or shares (“the holding”), and
(b) the holding includes securities or shares to which CITR is attributable in respect of one or more accounting periods that have been held continuously by the investor from the time they were issued until the disposal.
(2) Any disposal by the investor of securities or shares included in the holding which have been acquired by the investor on different days is treated as relating to those acquired on an earlier day rather than to those acquired on a later day.
(3) If there is a disposal by the investor of securities or shares included in the holding which have been acquired by the investor on the same day, any of those securities or shares—
(a) to which CITR is attributable, and
(b) which have been held by the investor continuously from the time they were issued until the time of disposal,
are treated as disposed of after any other securities or shares included in the holding which were acquired by the investor on that day.
(4) For the purposes of this section a holding of securities is any number of securities of a company which—
(a) carry the same rights,
(b) were issued under the same terms, and
(c) are held by the investor in the same capacity.
It does not matter for this purpose that the number of the securities grows or diminishes as securities carrying those rights and issued under those terms are acquired or disposed of.
(5) For the purposes of this section a holding of shares is any number of shares in a company which—
(a) are of the same class, and
(b) are held by the investor in the same capacity.
It does not matter for this purpose that the number of the shares grows or diminishes as shares of that class are acquired or disposed of.
(6) In a case to which section 127 of TCGA 1992 (equation of original shares and new holding) applies, shares comprised in the new holding are to be treated for the purposes of subsections (2) and (3) as acquired when the original shares were acquired.
(7) In subsection (6)—
(a) the reference to section 127 of TCGA 1992 includes a reference to that section as it is applied by virtue of any enactment relating to chargeable gains, and
(b) “original shares” and “new holding” have the same meaning as in section 127 of TCGA 1992 or (as the case may be) that section as applied by virtue of the enactment in question.
(1) In this Part—
(a) references (however expressed) to an issue of securities of any body are to such securities of that body as carry the same rights and are issued under the same terms and on the same day, and
(b) references (however expressed) to an issue of shares in any body are to such shares in that body as are of the same class and issued on the same day.
(2) In this Part references (however expressed) to an issue of securities of or shares in a body to a company are to such of the securities or shares in an issue of securities of or shares in that body as are issued to that company in one capacity.
(1) Subject to subsection (2), in this Part “disposal” is read in accordance with TCGA 1992, and related expressions are read accordingly.
(2) An investor is treated as disposing of any securities or shares which but for section 151BC(1) of TCGA 1992 the investor—
(a) would be treated as exchanging for other securities or shares by virtue of section 136 of that Act, or
(b) would be so treated but for section 137(1) of that Act (which restricts section 136 to genuine reconstructions).
267 Construction of references to being “held continuously”
(1) This section applies if for the purposes of this Part it becomes necessary to determine whether the investor has held the investment (or any part of it) continuously throughout any period.
(2) The investor is not treated as having held the investment (or any part of it) continuously throughout a period if the investor—
(a) is treated, under any provision of TCGA 1992, as having disposed of and immediately re-acquired the investment (or part) at any time during the period, or
(b) is treated as having disposed of the investment (or part) at any such time, by virtue of section 266(2) above.
(1) In this Part “associate”, in relation to a person, means—
(a) any relative or partner of that person,
(b) the trustee or trustees of any settlement in relation to which that person, or any relative of that person (living or dead), is or was a settlor, and
(c) if that person has an interest in any shares or obligations of a company which are subject to any trust or are part of the estate of a deceased person—
(i) the trustee or trustees of the settlement concerned or, as the case may be, the personal representatives of the deceased, and
(ii) if that person is a company, any other company which has an interest in those shares or obligations.
(2) In subsection (1)(a) and (b) “relative” means spouse or civil partner, ancestor or lineal descendant.
(3) In subsection (1)(b) “settlor” and “settlement” have the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act).
(1) In this Part—
“body” includes an unincorporated association, and
“bonus shares” means shares which are issued otherwise than for payment (whether in cash or otherwise).
(2) For the purposes of this Part shares in a company are not treated as being of the same class unless they would be so treated if they were—
(a) included in the official UK list, and
(b) admitted to trading on the London Stock Exchange.
(3) For the purposes of this Part the market value at any time of any asset is the price which it might reasonably be expected to fetch on a sale at that time in the open market free from any interest or right which exists by way of security in or over it.
(4) In this Part—
(a) references to CITR obtained by the investor in respect of any investment (or part of an investment) include references to CITR obtained by the investor in respect of that investment (or part) at any time after the investor has disposed of it, and
(b) references to the withdrawal or reduction of CITR obtained by the investor in respect of the investment (or any part of it) include references to the withdrawal or reduction of CITR obtained in respect of that investment (or part) at any such time.
(5) In the case of any condition that cannot be met until a future date—
(a) references in this Part to a condition being met for the time being are to nothing having occurred to prevent its being met, and
(b) references to its continuing to be met are to nothing occurring to prevent its being met.
This Part contains provision restricting the amount of certain deductions which a company may make in calculating its taxable total profits for an accounting period.
269ZB Restriction on deductions from trading profits
(1) This section has effect for determining the taxable total profits of a company for an accounting period.
(2) The sum of any deductions made by the company for the accounting period which fall within subsection (3) may not exceed the relevant maximum.
But this is subject to subsection (10).
(3) The following deductions fall within this subsection—
(a) any deductions under section 45(4)(b) or 45B;
(b) any deduction under section 303B(4) or 303D(5), so far as it is a restricted deduction.
(4) For the purposes of this section a deduction under section 303B(4) or 303D(5) is a “restricted deduction” so far as it would not be available but for section 304(5) (reduction of income derived from related activities).
(5) In this section the “relevant maximum” means the sum of—
(a) 50% of the company's relevant trading profits for the accounting period, and
(b) the company's trading profits deductions allowance for the accounting period.
(6) Section 269ZF contains provision for determining a company's relevant trading profits for an accounting period.
(7) A company's “trading profits deductions allowance” for an accounting period—
(a) is so much of the company's deductions allowance for the period as is specified in the company's tax return as its trading profits deductions allowance for the period, and
(b) accordingly, is nil if no amount of the company's deductions allowance for the period is so specified.
(8) An amount specified under subsection (7)(a) as a company's trading profits deductions allowance for an accounting period may not exceed the difference between—
(a) the amount of the company's deductions allowance for the period, and
(b) the total of—
(i) the amount of the company’s total non-trading profits deductions allowance for the period (see section 269ZC(3A)), and
(ii) in the case of an insurance company, any amount specified for the period under section 269ZFC(5)(a) (BLAGAB deductions allowance).
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) Subsection (2) does not apply in relation to a company for an accounting period where, in determining the company's relevant trading profits, the amount given by step 1 in section 269ZF(3) is not greater than nil.
269ZBA Restriction on deductions from chargeable gains
(1) This section has effect for determining the taxable total profits of a company for an accounting period.
(2) The sum of any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods) may not exceed the relevant maximum.
But this is subject to subsection (7).
(3) In this section the “relevant maximum” means the sum of—
(a) 50% of the company’s relevant chargeable gains for the accounting period, and
(b) the amount of the company’s chargeable gains deductions allowance for the accounting period.
(4) Section 269ZF contains provision for determining a company’s relevant chargeable gains for an accounting period.
(5) A company’s “chargeable gains deductions allowance” for an accounting period—
(a) is so much of the company’s deductions allowance for the period as is specified in the company’s tax return as its chargeable gains deductions allowance for the period, and
(b) accordingly, is nil if no amount of the company’s deductions allowance for the period is so specified.
(6) An amount specified under subsection (5)(a) as a company’s chargeable gains deductions allowance for an accounting period may not exceed the difference between—
(a) the amount of the company’s deductions allowance for the period, and
(b) the total of any amounts specified for the period under—
(i) section 269ZB(7)(a) (trading profits deductions allowance),
(ii) section 269ZC(5)(a) (non-trading income profits deductions allowance), and
(iii) in the case of an insurance company, section 269ZFC(5)(a) (BLAGAB deductions allowance).
(7) Subsection (2) does not apply in relation to a company for an accounting period where, in determining the company’s qualifying chargeable gains for the period, the amount given by step 1 in section 269ZF(3) is not greater than nil.
269ZC Restriction on deductions from non-trading profits
(1) This section has effect for determining the taxable total profits of a company for an accounting period.
(2) The sum of any deductions made by the company for the accounting period under section 457(3) and 463H(5) of CTA 2009 (carry forward of non-trading deficits from loan relationships against subsequent non-trading profits) may not exceed the difference between—
(a) the relevant maximum, and
(b) the amount of any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods).
But this is subject to subsection (8).
(3) In this section the “relevant maximum” means the sum of—
(a) 50% of the company’s total relevant non-trading profits for the accounting period, and
(b) the amount of the company’s total non-trading profits deductions allowance for the accounting period.
(3A) A company’s “total non-trading profits deductions allowance” for the accounting period is the sum of—
(a) the company’s non-trading income profits deductions allowance (see subsection (5)), and
(b) the company’s chargeable gains deductions allowance (see section 269ZBA(5)).
(4) Section 269ZF contains provisions for determining a company's total relevant non-trading profits for an accounting period.
(5) A company's “non-trading income profits deductions allowance” for an accounting period—
(a) is so much of the company's deductions allowance for the period as is specified in the company's tax return as its non-trading income profits deductions allowance for the period, and
(b) accordingly, is nil if no amount of the company's deductions allowance for the period is so specified.
(6) An amount specified under subsection (5)(a) as a company's non-trading income profits deductions allowance for an accounting period may not exceed the difference between—
(a) the amount of the company's deductions allowance for the period, and
(b) the total of any amounts specified for the period under—
(i) section 269ZB(7)(a) (trading profits deductions allowance),
(ii) section 269ZBA(5)(a) (chargeable gains deductions allowance), and
(iii) in the case of an insurance company, section 269ZFC(5)(a) (BLAGAB deductions allowance).
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) Subsection (2) does not apply in relation to a company for an accounting period where, in determining the company's qualifying non-trading income profits and qualifying chargeable gains for the period, the amount given by step 1 in section 269ZF(3) is not greater than nil.
269ZD Restriction on deductions from total profits
(1) This section has effect for determining the taxable total profits of a company for an accounting period.
(2) The sum of any relevant deductions made by the company for the accounting period may not exceed the difference between—
(a) the relevant maximum, and
(b) the sum of—
(i) any deductions falling within section 269ZB(3) (carry forward of trade loss against subsequent trade profits) made by the company for the accounting period,
(ia) any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods), ...
(ii) any deductions made by the company for the accounting period under sections 457(3) and 463H(5) of CTA 2009 (carry forward of non-trading deficits from loan relationships against subsequent non-trading profits), ... and
(iia) any deductions of non-BLAGAB allowable losses from the shareholders’ share of BLAGAB chargeable gains made for the accounting period under section 2A(1)(b) of TCGA 1992, as permitted by section 210A(2A)(b) of that Act.
(iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
But this is subject to subsection (7) ....
(3) The following deductions made for an accounting period are “relevant deductions” for the purposes of this section—
(a) a deduction under section 463G of CTA 2009 (carry forward of non-trading deficit against total profits);
(b) a deduction under section 753 of CTA 2009 (non-trading losses on intangible fixed assets) in respect of a loss treated by subsection (3) of that section (carry forward of losses) as if it were a loss of the accounting period;
(c) a deduction under section 1219 of CTA 2009 (expenses of management of a company's investment business) in respect of an amount treated by section 1223(3) of that Act (carrying forward of expenses of management and other amounts) as expenses of management deductible for the accounting period;
(d) a deduction under section 1219 of CTA 2009 (expenses of management of a company's investment business) in respect of a loss treated by section 63(3) (carrying forward of certain losses made by company with investment business which ceases to carry on UK property business) as an expense of management deductible for the accounting period;
(e) a deduction under section 37 (relief for trade losses against total profits) made in reliance on section 1210(3), 1216DB(3), 1217DB(3), 1217MB(2), 1217SB(2) or 1218ZDB(2) of CTA 2009;
(f) a deduction under section 45A (carry forward of trade loss against total profits);
(g) a deduction under section 62(3) (relief for losses made in UK property business) in respect of a loss treated by subsection (5)(b) of that section (carry forward of losses) as a loss made by the company in the accounting period;
(h) a deduction under section 303C (excess carried forward non-decommissioning losses of ring fence trade: relief against total profits);
(i) a deduction under Part 5 (group relief) made in respect of a loss surrendered under that Part in reliance on section 1210(3), 1216DB(3), 1217DB(3), 1217MB(2), 1217SB(2) or 1218ZDB(2) of CTA 2009;
(j) a deduction under Part 5A (group relief for carried-forward losses);
(k) a deduction under section 124B of FA 2012 (deduction from total profits of excess carried-forward BLAGAB trade losses),
(but see section 269ZJ (insurance companies: shock losses).
(4) In this section the “relevant maximum” means the sum of—
(a) 50% of the company's relevant profits for the accounting period (see section 269ZFA), and
(b) the amount of the company's deductions allowance for the accounting period.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) Subsection (2) does not apply in relation to a company for an accounting period where the amount given by paragraph (1) of step 1 in section 269ZF(3) is not greater than nil.
269ZDA References to a company’s “deductions allowance”
(1) This section applies for the purposes of sections 269ZB to 269ZD and 269ZFC.
(2) A company’s “deductions allowance” for an accounting period is to be determined in accordance with section 269ZR where, at any time in that period—
(a) the company is a member of a group (see section 269ZZB), and
(b) one or more other companies within the charge to corporation tax are members of that group.
(3) Otherwise, a company’s “deductions allowance” for an accounting period is to be determined in accordance with section 269ZW.
(4) But subsections (2) and (3) are subject to section 269ZYA (deductions allowance for company without a source of chargeable income).
(1) A company's “relevant trading profits” for an accounting period are—
(a) the company's qualifying trading profits for the accounting period (see subsection (3)), less
(b) the company's trading profits deductions allowance for the accounting period (see section 269ZB(7)).
But if the allowance mentioned in paragraph (b) exceeds the profits mentioned in paragraph (a), the company's “relevant trading profits” for the accounting period are nil.
(2) A company's “relevant non-trading income profits” for an accounting period are—
(a) the company's qualifying non-trading income profits for the accounting period (see subsection (3)), less
(b) the company's non-trading income profits deductions allowance for the accounting period (see section 269ZC(5)).
But if the allowance mentioned in paragraph (b) exceeds the profits mentioned in paragraph (a), the company's “relevant non-trading income profits” for the accounting period are nil.
(2A) A company’s “relevant chargeable gains” for an accounting period are—
(a) the company’s qualifying chargeable gains for the accounting period (see subsection (3)), less
(b) the company’s chargeable gains deductions allowance for the accounting period (see section 269ZBA(5)).
But if the allowance mentioned in paragraph (b) exceeds the qualifying chargeable gains mentioned in paragraph (a), the company’s “relevant chargeable gains” for the accounting period are nil.
(2B) A company’s “total relevant non-trading profits” for an accounting period are—
(a) the sum of—
(i) the company’s qualifying non-trading income profits for the period, and
(ii) the company’s qualifying chargeable gains for the period, less
(b) the company’s total non-trading profits deductions allowance for the period (see section 269ZC(3A)).
(3) To determine a company's qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains for an accounting period—
Step 1 - modified total profits
Calculate the company's total profits for the accounting period.
For the purposes of this subsection assume that the company's total profits for the accounting period are to be calculated with the modifications set out in subsection (4).
If the company's total profits for the accounting period (as modified under paragraph (2)) are not greater than nil, the company's qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains for the accounting period are each nil.
Otherwise, proceed with steps 2 to 5.
Step 2 - negative amount for apportioning under step 4
Calculate the sum (“the step 2 amount”) of any amounts which (on the assumption set out in paragraph (2) of step 1), could be relieved against the company's total profits of the accounting period.
But in calculating that sum—
ignore the amount of any excluded deductions for the accounting period (see subsection (5)) , and
ignore any amount (or any part of any amount) which could be relieved against the company’s total profits of the accounting period on the making of a claim in respect of the amount (or part) if a claim is not in fact made in respect of it..
If the company's total profits for the accounting period (as modified under step 1(2)) do not exceed the amount given by this step, the qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains are each nil.
Otherwise, proceed with steps 3 to 5.
Step 3 - trading profits, non-trading income profits and chargeable gains
Divide the company’s total profits for the accounting period (as modified under step 1(2)) into—
profits of a trade of the company (the company’s “trading profits”),
profits, other than chargeable gains, that are not profits of a trade of the company (the company’s “non-trading income profits”), and
chargeable gains included in the total profits (the company’s “chargeable gains”).
Step 4 - apportionment of the step 2 amount
Allocate the whole of the step 2 amount to one of, or between two or all of, the following—
the company’s trading profits,
the company’s non-trading income profits, and
the company’s chargeable gains.
Reduce, but not below nil, each of the company’s trading profits, non-trading income profits and chargeable gains by the amount (if any) allocated to it under paragraph (1).
Step 5 - amount of qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains
The amounts resulting from step 3, after any reduction under step 4, are—
in the case of the amount in step 3(a), the company’s qualifying trading profits,
in the case of the amount in step 3(b), the company’s qualifying nontrading income profits, and
in the case of the amount in step 3(c), the company’s qualifying chargeable gains.
(4) For the purposes of subsection (3) the company's total profits for an accounting period are to be calculated with the following modifications—
(a) ignore any income so far as it falls within, and is dealt with under, Part 9A of CTA 2009 (company distributions);
(b) ignore any ring fence profits (as defined in section 276);
(c) ignore any contractor's ring fence profits (as defined in section 356LD);
(d) if the company is an insurance company, ignore any I-E profit (see section 141(2) of FA 2012);
(e) make no deductions under sections 45(4)(b) and 45B (carry forward of trade loss against subsequent trade profits) other than deductions that would be ignored for the purposes of section 269ZB by reason of—
(i) section 1209(3), 1210(5A) or 1211(7A) of CTA 2009 (losses of film trade),
(ii) section 1216DA(3), 1216DB(5A) or 1216DC(7A) of that Act (losses of television programme trade),
(iii) section 1217DA(3), 1217DB(5A) or 1217DC(7A) of that Act (losses of video game trade),
(iv) section 1217MA(3) or 1217MC(9) of that Act (losses of theatrical trade),
(v) section 1217SA(3) or 1217SC(9) of that Act (losses of orchestral trade),
(vi) section 1218ZDA(3) or 1218ZDC(9) of that Act (losses of museum or gallery exhibition trade),
(vii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(viii) section 269ZJ(1) (insurance companies: shock losses),
(ix) section 304(7) (certain losses of ring fence trades), or
(x) section 356NJ(2) (pre-1 April 2017 loss arising from oil contractor activities);
(f) make no restricted deductions (as defined in section 269ZB(4)) under section 303B(4) or 303D(5)); ...
(g) make no deductions under section 457(3) or 463H(5) of CTA 2009 (carry forward of non-trading deficits from loan relationships against subsequent non-trading profits), other than deductions that would be ignored for the purposes of section 269ZC by reason of section 269ZJ(2) (insurance companies: shock losses); and
(h) make no deductions under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods).
(5) The following are “excluded deductions” for an accounting period (“the current accounting period”)—
(a) a deduction for the current accounting period which is a relevant deduction for the purposes of section 269ZD (see subsection (3) of that section);
(b) a deduction under section 37 (relief for trade losses against total profits) in relation to a loss made in an accounting period after the current accounting period;
(c) a deduction under section 45F (terminal losses);
(d) a deduction under section 260(3) of CAA 2001 (special leasing of plant or machinery: carry back of excess allowances) in relation to capital allowances for an accounting period after the current accounting period; and
(e) a deduction under section 463E of CTA 2009 (non-trading deficit from loan relationships) in relation to a deficit for a period after the current accounting period.
(1) A company’s “relevant profits” for an accounting period are—
(a) the company’s qualifying profits for the accounting period, less
(b) the company’s deductions allowance for the accounting period (see section 269ZDA).
But if the allowance mentioned in paragraph (b) exceeds the profits mentioned in paragraph (a), the company’s “relevant profits” for the accounting period are nil.
(2) A company’s “qualifying profits” for an accounting period are—
(a) the amount given by paragraph (1) of step 1 in section 269ZF(3) in determining the company’s modified total profits for the accounting period, less
(b) the amount given by paragraph (1) of step 2 in section 269ZF(3) which could be relieved against those profits for the accounting period.
269ZFB Modifications for certain insurance companies
(1) This section has effect for determining the taxable total profits of a company for an accounting period if the company—
(a) is an insurance company, and
(b) carries on basic life assurance and general annuity business in the period.
(2) A reference in section 269ZD(7) and section 269ZFA(2) to the amount given by a paragraph of a step in section 269ZF(3) is to be read as a reference to the amount that would be so given if—
(a) section 269ZF(4)(a) did not require income referable to a company’s basic life assurance and general annuity business to be ignored unless it falls within, and is dealt with under, Part 9A of CTA 2009 by reason of an election under section 931R of that Act, and
(b) section 269ZF(4)(d) required only the policyholders’ share of any I-E profit (as determined in accordance with section 103 of FA 2012) to be ignored and provided that no deductions of non-BLAGAB allowable losses from the shareholders’ share of BLAGAB chargeable gains are to be made under section 2A(1)(b) of TCGA 1992, as permitted by section 210A(2A)(b) of that Act.
(3) In this section—
“basic life assurance and general annuity business” has the meaning given by section 57 of FA 2012, and
“insurance company” has the meaning given by section 65 of that Act.
269ZFC Restriction on deductions of non-BLAGAB allowable losses from BLAGAB chargeable gains
(1) This section has effect for determining the taxable total profits of an insurance company for an accounting period.
(2) The sum of any deductions of non-BLAGAB allowable losses from the shareholders’ share of BLAGAB chargeable gains made by an insurance company for an accounting period under section 2A(1)(b) of TCGA 1992, as permitted by section 210A(2A)(b) of that Act, may not exceed the relevant maximum.
(3) In this section, the “relevant maximum” means the sum of—
(a) 50% of the company’s relevant BLAGAB chargeable gains for the accounting period, and
(b) the amount of the company’s BLAGAB deductions allowance for the accounting period.
(4) A company’s “relevant BLAGAB chargeable gains” for an accounting period are—
(a) the shareholders’ share of the BLAGAB chargeable gains for the accounting period, after any reduction under section 210A(2A)(a) of TCGA 1992, less
(b) the amount of the company’s BLAGAB deductions allowance for the accounting period.
But if the allowance mentioned in paragraph (b) exceeds the shareholders’ share of the BLAGAB chargeable gains mentioned in paragraph (a), the company’s “relevant BLAGAB chargeable gains” for the accounting period are nil.
(5) A company’s “BLAGAB deductions allowance” for an accounting period—
(a) is so much of the company’s deductions allowance for the period as is specified in the company’s tax return as its BLAGAB deductions allowance for the period, and
(b) accordingly, is nil if no amount of the company’s deductions allowance for the period is so specified.
(6) An amount specified under subsection (5)(a) as the company’s BLAGAB deductions allowance for an accounting period may not exceed the difference between—
(a) the amount of the company’s deductions allowance for the period, and
(b) the total of any amounts specified for the period under section 269ZB(7)(a) (trading profits deductions allowance), section 269ZBA(5)(a) (chargeable gains deductions allowance) and section 269ZC(5)(a) (non-trading income profits deductions allowance).
(7) In this section, “BLAGAB chargeable gains”, “insurance company” and “the shareholders’ share of BLAGAB chargeable gains” have the same meaning as in section 210A of TCGA 1992.
269ZG General insurance companies: excluded accounting periods
(1) Nothing in sections 269ZB to 269ZD has effect for determining the taxable total profits of a general insurance company for an excluded accounting period.
(2) An accounting period of a general insurance company is an “excluded accounting period” if conditions A and B are met.
(3) Condition A is that—
(a) the company is subject to insolvency procedures (see section 269ZH) at the end of the accounting period,
(b) immediately before it became subject to insolvency procedures the company—
(i) was unable to pay its debts as they fell due, and
(ii) met the non-viability condition, and
(c) the company's liabilities in respect of qualifying latent claims (see section 269ZI) were the main factor contributing to the company's meeting the non-viability condition at that time.
(4) Condition B is that—
(a) at the end of the accounting period the company meets the non-viability condition, and
(b) the company's liabilities in respect of qualifying latent claims are the main factor contributing to the company's meeting that condition at that time.
(5) At any time, a general insurance company meets the non-viability condition if there is no realistic prospect that it will subsequently write any new insurance business.
(6) For the purposes of this section a person who carries on the activity of effecting or carrying out contracts of general insurance is a “general insurance company” if—
(a) the person has permission under Part 4A of the Financial Services and Markets Act 2000 to carry on that activity,
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) The definition in subsection (6) is subject to the following qualifications—
(a) a friendly society within the meaning of Part 3 of FA 2012 is not a general insurance company, and
(b) an insurance special purpose vehicle (as defined in section 139 of FA 2012) is not a general insurance company.
(8) In this section—
“contract of general insurance” means a contract of a type described in Part 1 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);
“liability” includes a contingent or prospective liability.
(1) For the purposes of section 269ZG a company is subject to insolvency procedures if—
(a) it is in liquidation,
(b) it is in administration,
(c) it is in receivership, or
(d) a relevant scheme has effect in relation to it.
(2) A company is “in liquidation” for the purposes of this section if—
(a) it is in liquidation within the meaning of section 247 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19), or
(b) a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.
(3) A company is “in administration” for the purposes of this section if—
(a) it is in administration within the meaning of Schedule B1 to the Insolvency Act 1986 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989, or
(b) there is in force in relation to it under the law of a country or territory outside the United Kingdom any appointment corresponding to the appointment of an administrator under either of those Schedules.
(4) A company is “in receivership” for the purposes of this section if there is in force in relation to it—
(a) an order for the appointment of an administrative receiver, a receiver and manager or a receiver under Chapter 1 or 2 of Part 3 of the Insolvency Act 1986 or Part 4 of the Insolvency (Northern Ireland Order) 1989, or
(b) any corresponding order under the law of a country or territory outside the United Kingdom.
(5) In this section “relevant scheme” means a compromise or arrangement—
(a) under section 425 of the Companies Act 1985, Article 418 of the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6)) or Part 26 or 26A of the Companies Act 2006, or
(b) under any corresponding provision of the law of a country or territory outside the United Kingdom.