Income Tax Act 2007 section 713

Interpretation of Chapter

Section 713 defines key terms used throughout the Chapter dealing with transactions in securities, ensuring consistent interpretation of concepts such as associates, close companies, dividends, and securities.

• An "associate" follows the definition in section 681DL but is extended to include the relationship between a settlement trustee and an individual where any beneficiary of that settlement is connected or associated with that individual.
• "Close company" includes any company that would qualify as close if it were UK-resident; "company" means any body corporate; and "securities" covers shares, stock, and members' interests in companies not limited by shares.
• "Dividends" is broadly defined to include other distributions and interest, but excludes distributions that only count as distributions for corporation tax purposes because they involve redeemable share capital or securities issued as a bonus (paragraphs C or D of section 1000(1) CTA 2010).
• "Trading stock" takes its meaning from section 174 of ITTOIA 2005, ensuring alignment with the trading income rules on stock valuation.