4 Interpretation of Corporation Tax Acts
(1) In the Corporation Tax Acts, except where the context otherwise requires –
“accounting date” means the date to which a company makes up its accounts, and “period of account” means the period for which a company does so;
“allowable loss” does not include, for the purposes of corporation tax in respect of chargeable gains, a loss accruing to a company in such circumstances that if a gain accrued the company would be exempt from corporation tax in respect of the gain;
“branch or agency” means any factorship, agency, receivership, branch or management;
“chargeable gain” has the same meaning as in the Capital Gains Tax Acts, but does not include a gain accruing on a disposal made before the 6th day of April, 1976;
“charges on income” has the meaning assigned to it by section 243(1);
“company” means any body corporate and includes a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989, but does not include –
(b) a grouping within the meaning of section 1014,
[(c) an education and training board,]2
(d) a committee of agriculture established under the Agriculture Act, 1931, or
[(e) a local authority for the purposes of the Local Government Act 2001 (as amended by the Local Government Reform Act 2014) and includes a body established under the Local Government Services (Corporate Bodies) Act 1971;]3
“the financial year” followed by a reference to the year 1996 or any other year means the year beginning on the 1st day of January of such year;
“franked investment income” and “franked payment” shall be construed in accordance with section 156;
“group relief” has the meaning assigned to it by section 411;
“interest” means both annual or yearly interest and interest other than annual or yearly interest;
“preference dividend” means a dividend payable on a preferred share or preferred stock at a fixed rate per cent or, where a dividend is payable on a preferred share or preferred stock partly at a fixed rate per cent and partly at a variable rate, such part of that dividend as is payable at a fixed rate per cent;
“profits” means income and chargeable gains;
“standard rate per cent” for a year of assessment means 26 where the standard rate for that year is 26 per cent and similarly as regards any reference to the standard rate per cent for a year of assessment for which the standard rate is other than 26 per cent;
“trade” includes vocation and includes also an office or employment.
(2) Except where otherwise provided by the Corporation Tax Acts and except where the context otherwise requires, words and expressions used in the Income Tax Acts have the same meaning in the Corporation Tax Acts as in those Acts; but no provision of the Corporation Tax Acts as to the interpretation of any word or expression, other than a provision expressed to extend to the use of that word or expression in the Income Tax Acts, shall be taken to affect its meaning in those Acts as they apply for the purposes of corporation tax.
(3) References in the Corporation Tax Acts to distributions or payments received by a company apply to any distributions or payments received by another person on behalf of or in trust for the company but not to any distributions or payments received by the company on behalf of or in trust for another person.
(4) References in the Corporation Tax Acts to –
(a) profits brought into charge to corporation tax are references to the amount of those profits chargeable to corporation tax before any deduction from those profits for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description,
(b) total income brought into charge to corporation tax are references to the amount, calculated before any deduction mentioned in paragraph (a), of the total income from all sources included in any profits brought into charge to corporation tax, and
(c) an amount of profits on which corporation tax falls finally to be borne are references to the amount of those profits after making all deductions and giving all reliefs that for the purposes of corporation tax are made or given from or against those profits, including deductions and reliefs which under any provision are treated as reducing them for those purposes.
(5) For the purposes of the Corporation Tax Acts, except where otherwise provided, dividends shall be treated as paid on the date when they become due and payable.
(6) Except where otherwise provided by the Corporation Tax Acts, any apportionment to different periods to be made under the Corporation Tax Acts shall be made on a time basis according to the respective lengths of those periods.
2 Substituted by ETBA13 s72 and Sch6(24) and coming into operation on such day as the Minister may by order appoint - 1 July 2013 is the appointed day per S.I. No. 211 of 2013
3 Substituted by LGRA14 s5(3) and Sch2 Pt5 and coming into operation by Ministerial Order - S.I. No. 214/2014 appointed 1 June 2014 as the date of coming into operation
In special circumstances, the courts looked to the transactions involved in deciding profit apportionment (rather than just time apportionment). Marshall Hus & Partners Ltd. v Bolton  STC 18.
Partners financed capital contributions to partnership with loans and entered into transactions in relation to acquisition, distribution and marketing of films and the question arose as to whether partnership carried on trade. Eclipse Film Partners (No 35) LLP v Revenue and Customs Commissioners -  STC 1114
Limited rights being attached to deferred shares and whether deferred shares ‘ordinary share capital’ for purposes of entrepreneurs’ relief legislation. Castledine v R&CC –  UKFTT 145 (TC)
Corresponding UK Tax Provision
Formerly Section 834, Income and Corporation Taxes Act 1988. Now re-enacted at various places in the Corporation Tax Act 2010. Refer to the Destination Table of that Act for details.
Sections referred to in text
section 156 [Franked investment income and franked payments]
section 243 [Allowance of charges on income]
section 411 [Surrender of relief between members of groups and consortia]
section 430 [Meaning of close company]
section 431 [Certain companies with quoted shares not to be close companies]
section 436 [Certain expenses for participators and associates]
section 437 [Interest paid to directors and directors’ associates]
section 644AB [Treatment of profits or gains from land rezonings]
section 816 [Taxation of shares issued in place of cash dividends]
section 1014 [Tax treatment of profits, losses and capital gains arising from activities of a European Economic Interest Grouping (EEIG)]
10 Connected persons
128 Tax treatment of directors of companies and employees granted rights to acquire shares or other assets
155 Restriction of certain reliefs in respect of distributions out of certain exempt or relieved profits
250A Restriction of relief to individuals in respect of loans applied in acquiring interest in companies
195B Exemption in respect of certain expense payments for relevant directors
195D Exemption in respect of certain expense payments for resident relevant directors
270 Meaning of “expenditure on construction of building or structure”
296 Balancing allowances and balancing charges: wear and tear allowances deemed to have been made in certain cases
409E Income tax: ringfence on use of certain capital allowances on certain industrial buildings and other premises
448 Relief from corporation tax
454 Restriction of certain charges on income
486C Relief from tax for certain start-up companies
660 Farming: wear and tear allowances deemed to have been made in certain cases
705I Funds awaiting reinvestment
730F Deduction of tax on the happening of a chargeable event
730H Interpretation and application
738 Undertakings for collective investment
747B Interpretation and application