Revenue Note for Guidance

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Revenue Note for Guidance

489 The relief

Interpretation (Chapter 2)

(1) In this Part—

“EEA Agreement” is defined as is “EEA State” which is a contracting party to that Agreement.

“financial activities” means the provision of, and all matters relating to the provision of, financing or refinancing facilities by any means which involves, or has an effect equivalent to, the extension of credit;

“financial assets” includes shares, gilts, bonds, foreign currencies and all kinds of futures, options and currency and interest rate swaps, and similar instruments, including commodity futures and commodity options, invoices and all types of receivables, obligations evidencing debt (including loans and deposits), leases and loan and lease portfolios, bills of exchange, acceptance credits and all other documents of title relating to the movement of goods, commercial paper, promissory notes and all other kinds of negotiable or transferable instruments;

“financing or refinancing facilities” includes—

  1. loans, mortgages, leasing, lease rental and hire-purchase, and all similar arrangements,
  2. equity or other investment,
  3. the factoring of debts and the discounting of bills, invoices and promissory notes, and all similar instruments, and
  4. the underwriting of debt instruments and all other kinds of financial securities;

“linked businesses” means two or more businesses that are regarded as linked enterprises, within the meaning of Annex 1 to Commission Regulation (EU) No. 651/201 of 17 June 2014 of the General Block Exemption Regulation, (commonly referred to as “GBER”)

“partner businesses” means two or more businesses that are regarded as partner enterprises, within the meaning of Annex 1 to Commission Regulation (EU) No. 651/201 of 17 June 2014 of the General Block Exemption Regulation, (commonly referred to as “GBER”)

“qualifying subsidiary”, has the meaning assigned to it by section 492

“relevant trading activities” means activities carried on in the course of a trade the profits or gains of which are charged to tax under Case I of Schedule D, excluding activities related to—

  1. adventures or concerns in the nature of trade,
  2. dealing in commodities or futures or in shares, securities or other financial assets,
  3. financing activities,
  4. the provision of professional services (within the meaning of section 128F(1)),
  5. dealing in or developing land,
  6. the occupation of woodlands within the meaning of section 232,
  7. operating or managing hotels, guest houses, self catering accommodation or comparable establishments or managing property used as an hotel, guest house, self catering accommodation or comparable establishment, except where such activity is a tourist traffic undertaking (within the meaning of section 491),
  8. operations carried on in the coal industry or in the steel and shipbuilding sectors, and
  9. the production of a film (within the meaning of section 481);

“RICT group” means the company concerned (that is to say the company referred to in the provision concerned of this Part), its partner businesses and linked businesses, and references to a RICT group shall be taken to refer to any RICT group of which the company is part, and—

  1. for the purposes of section 496(5), includes any company that was, at any time, part of a RICT group with the qualifying company or its qualifying subsidiaries
  2. for the purposes of sections 500, 508P and 508R, includes any company which is at any point during the compliance period a subsidiary of the qualifying company, whether it becomes a subsidiary before, during or after—
    1. the year of assessment in respect of which the individual concerned claims relief and whether or not it is such a subsidiary while he or she is a partner, director or employee, or has an interest in the capital of the company, mentioned in section 500(2)(b), or
    2. the individual concerned receives any value from it;

RICT meaning “Relief for Investment in Corporate Trades”.

“SME” means a RICT group that would fall within the SME category of Annex 1 to Commission Regulation (EU) No. 651/201 of 17 June 2014 of the General Block Exemption Regulation, (commonly referred to as “GBER”)

“unlisted”, in respect of a company, means a company none of whose shares, stock or debentures (within the meaning of section 2 of the Companies Act 2014) are listed in the official list of a stock exchange, or quoted on an unlisted securities market of a stock exchange other than—

  1. on the market known as the Euronext Growth market operated by the Irish Stock Exchange plc trading as Euronext Dublin, or
  2. on any similar or corresponding market of the stock exchange—
    1. in a Member State, or
    2. in an EEA state other than the State.

Relevant Date: Finance Act 2021