Taxation (International and Other Provisions) Act 2010

[F1 433 Meaning of “qualifying infrastructure company” U.K.

(1) For the purposes of this Chapter a company is a “qualifying infrastructure company” throughout an accounting period if—

(a) it meets the public infrastructure income test for the accounting period (see subsections (2) to (4)),

(b) it meets the public infrastructure assets test for the accounting period (see subsections (5) to (10)),

(c) it is fully taxed in the United Kingdom in the accounting period [F2 (see subsections (11) and (12))], and

(d) it has made an election for the purposes of this section that has effect for the accounting period (see section 434).

(2) A company meets the public infrastructure income test for an accounting period if all, or all but an insignificant proportion, of its income for the accounting period derives from—

(a) qualifying infrastructure activities carried on by the company (see sections 436 and 437),

(b) shares in a qualifying infrastructure company, or

(c) loan relationships or other financing arrangements to which the only other party is a qualifying infrastructure company.

(3) A company also meets the public infrastructure income test for an accounting period if it has no income for the period.

(4) In determining whether the public infrastructure income test for an accounting period is met, income which does not derive from any of the matters mentioned in subsection (2)(a) to (c) is ignored if, having regard to all the circumstances, it is reasonable to regard the amount of the income as insignificant.

(5) A company meets the public infrastructure assets test for an accounting period if all, or all but an insignificant proportion, of the total value of the company's assets recognised in an appropriate balance sheet on each day in that period derives from—

(a) tangible assets that are related to qualifying infrastructure activities,

(b) service concession arrangements in respect of assets that are related to qualifying infrastructure activities,

(c) financial assets to which the company is a party for the purpose of the carrying on of qualifying infrastructure activities by the company or another associated qualifying infrastructure company,

[F3 (ca) assets held for the purposes of a pension scheme under which benefits are provided to, or in respect of, persons employed for the purpose of the carrying on of qualifying infrastructure activities by the company or another associated qualifying infrastructure company,

(cb) assets in respect of deferred tax so far as attributable to qualifying infrastructure activities carried on by the company or another associated qualifying infrastructure company,]

(d) shares in a qualifying infrastructure company, or

(e) loan relationships or other financing arrangements to which the only other party is a qualifying infrastructure company.

(6) If a company has no assets recognised in an appropriate balance sheet on any day in an accounting period, the company is to be taken as meeting the public infrastructure assets test in respect of that day.

(7) In determining whether the public infrastructure assets test for an accounting period is met in respect of any day, the value of an asset which does not derive from any of the matters mentioned in subsection (5)(a) to (e) is ignored if, having regard to all the circumstances, it is reasonable to regard the value of the asset as insignificant.

(8) For the purposes of subsection (5)(a) and (b) assets are “related to qualifying infrastructure activities” in the case of a company if the assets are—

(a) public infrastructure assets (see section 436(2) and (5)) in relation to the company that are provided by the company, or

(b) other assets used in the course of a qualifying infrastructure activity carried on by the company or by an associated qualifying infrastructure company.

(9) For the purposes of this section the reference to the value of an asset recognised in an appropriate balance sheet of a company on a day is to the value which is, or would be, recognised in a balance sheet of the company drawn up on that day.

(10) A company is not to be taken as failing to meet the public infrastructure assets test for an accounting period if, ignoring this subsection, that test would have been failed on a particular day or days merely as a result of particular circumstances—

(a) which existed, and

(b) which were always intended to exist,

for a temporary period of an insignificant duration.

(11) A company is fully taxed in the United Kingdom in an accounting period if—

(a) every [F4 source of income that the company has] at any time in the accounting period is within the charge to corporation tax,

(b) the company has not made an election under section 18A of CTA 2009 (exemption for profits or losses of foreign permanent establishments) that has effect for the accounting period, and

(c) the company has not made a claim for relief under Chapter 2 of Part 2 (double taxation relief) for the accounting period.

[F5 (12) In determining whether the condition in subsection (11)(a) is met in the case of a company not resident in the United Kingdom in an accounting period, a source of income of the company is ignored if, having regard to all the circumstances, it is reasonable to regard as insignificant the amount of income arising in the accounting period from the source.]]

Textual Amendments

F1 Pt. 10: the existing Pt. 10 renumbered as Pt. 11 (except for ss. 375, 376 which are repealed), the existing ss. 372-374, 377-382 renumbered as ss. 499-507 and a new Pt. 10 (ss. 372-498) inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1, 10(1)(2)(a)(3) (with Sch. 5 paras. 27, 32-34)

F2 Words in s. 433(1)(c) substituted (retrospectively) by Finance Act 2018 (c. 3), Sch. 8 paras. 7(2), 23(1)

F3 S. 433(5)(ca)(cb) inserted (retrospectively) by Finance Act 2019 (c. 1), Sch. 11 paras. 12, 24

F4 Words in s. 433(11)(a) substituted (retrospectively) by Finance Act 2018 (c. 3), Sch. 8 paras. 7(3), 23(1)

F5 S. 433(12) inserted (retrospectively) by Finance Act 2018 (c. 3), Sch. 8 paras. 7(4), 23(1)