Corporation Tax Act 2010 section 1148

Section 1147: interpretation

Section 1148 defines three key terms — "qualifying period", "relevant disregarded income" and "beneficial entitlement" — used in the 20% rule for investment managers acting on behalf of non-UK resident companies.

• A "qualifying period" is either the accounting period in which the transaction took place, or a period of up to 5 years comprising two or more complete accounting periods including that one.
• "Relevant disregarded income" is the total income of the non-UK resident company for a qualifying period that arises from transactions carried out by the investment manager on the company's behalf, where the manager would not otherwise be treated as a permanent establishment.
• A person has a "beneficial entitlement" to relevant disregarded income if they hold, or may acquire, an entitlement attributable to that income through an interest in the property representing it or through rights in relation to the non-UK resident company.
• The interests and rights that give rise to a beneficial entitlement include stakes in property representing the relevant disregarded income (whether or not they confer an immediate right to a share of profits) and any interest or rights in the non-UK resident company itself.