Commentary on Sections Overview Overview Section 989: The definitions
3031.This section sets out the definitions in alphabetical order. It is based on section 832 of ICTA and a variety of other provisions.
3032.Section 832 of ICTA, and other provisions, consequentially amended, continue to provide parallel definitions for corporation tax purposes.
3033.The definition of “capital allowance” no longer makes reference to allowances under enactments which under ICTA are treated as contained in CAA. This is because the only such enactment is section 532 of ICTA, and the only provision to which it remains potentially relevant (section 527 of ICTA) is rewritten in section 461 of this Act.
3034.The definition of “interest” (as including yearly interest and interest other than yearly interest) has been omitted, both from this section and from the amended section 832, as it adds nothing to the general meaning of “interest”. It was originally enacted in paragraph 20 of Schedule 13 to FA 1969.
3035.The definition of “personal representatives” is new. It follows the approach adopted in ITTOIA. See Change 150 in Annex 1.
3036.The definition of “trade” has been streamlined in line with the drafts included as clause 3.1.4 of ED1 (July 1997) and clause 3.1.5 in Exposure Draft No 10 (May 2000). Adopting this approach in this Act, rather than in ITTOIA, has enabled it to be done for all income tax purposes at the same time.
3037.Parallel definitions of “tax year” and “year of assessment” are provided, in order to support those provisions of the Income Tax Acts, including those in TMA, that have not been rewritten.
3038.Section 832(5) of ICTA is not rewritten in this Act, or retained in ICTA in relation to corporation tax, as this provision has been overtaken by the Adoption and Children Act 2002 (if it was not redundant before). See Change 151 in Annex 1.