Corporation Tax Act 2010 section 356JNA

Licensed sub-areas

Section 356JNA defines the concept of a "licensed sub-area" and clarifies related terminology when a person holds a share of equity in only part of a licensed area within a cluster area.

• Where a person holds a share of equity that relates to only part of a licensed area, that part is called a "licensed sub-area".
• The person's share of equity is described as a share of equity in the licensed sub-area, not in the wider licensed area.
• Any reference in the chapter to a "licensee in a licensed sub-area" means the person who holds such a partial equity share.
• This definition ensures that tax rules applying to licensed areas can operate correctly where interests cover only a portion of the overall licensed area.