ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL Background
Section 842AA(11)(c) of ICTA provides that:
“without prejudice to their application in relation to provisions applied by paragraph (a) or (b) above, subsections (3) and (4) of [section 842] shall apply in relation to any reference in [section 842AA] to a holding or an addition to a holding as they apply in relation to any such reference in [section 842].”
That provision is very compressed and therefore difficult to follow.
The definition of “company” in section 288(1) of TCGA (the TCGA definition), as provided for by section 842(4) of ICTA, differs from that in section 832(1) and (2) of ICTA (the ICTA definition). In broad terms the TCGA definition’s treatment of most unit trusts as companies (see section 99(1) of that Act) means that it is wider in one sense than the ICTA definition. The ICTA definition does not automatically apply for the whole of ICTA since section 832(2) provides that it does not apply where:
“the context otherwise requires because some other definition of “company” applies”
The definition of “shares” in section 288(1) of TCGA and the treatment of rights of unit holders as shares in section 99(1) of TCGA has no counterpart in section 832 of ICTA. Individual provisions of ICTA give whatever meaning of “shares” is appropriate to the provision in question (section 842(4) is an example of that in relation to investment trusts).