Taxes Consolidation Act 1997 section 173

Interpretation (Chapter 9)

Section 173 defines the key terms used throughout the Chapter dealing with the tax treatment of share buybacks by companies.

• A trading company is one whose business consists wholly or mainly of carrying on a trade, but trade excludes dealing in shares, securities, land, futures, or traded options.
• A holding company primarily holds shares in its 51% subsidiaries, while a group means a company together with its 51% subsidiaries; an unquoted company is one that is neither listed nor a 51% subsidiary of a listed company.
• The beneficial owner of shares is treated as the true owner, except where shares are held on trust (other than a bare trust), in which case the trustees are the owners, or where shares form part of a deceased person's estate, in which case the personal representatives are the owners.
• References to a payment by a company include payments in kind, such as transfers of assets, which would otherwise be treated as distributions but for the relieving provisions in this Chapter.