Taxes Consolidation Act 1997 section 769A

Interpretation (Chapter 4)

Section 769A defines the key terms and interpretive rules used throughout the Chapter dealing with capital allowances for the purchase of transmission capacity rights.

• "Capacity rights" means the right to use wired, radio, or optical transmission paths for transferring voice, data, or information; "qualifying expenditure" means capital expenditure on purchasing such rights, but excludes licence fees paid on or after 6 February 2003 to the Commission for Communications Regulation.
• "Control" takes its meaning from section 432, broadly covering situations where a person controls a company's affairs, can obtain more than half its share capital or voting power, is entitled to more than half its distributable income, or would receive more than half its assets on a winding up.
• The sale of part of capacity rights includes the grant of a licence to use those rights, and the purchase of capacity rights includes the acquisition of such a licence.
• Where a licence is granted on terms that give the licensee exclusive use of the capacity rights for the entire remaining life of the rights, the grant is treated as a sale of the whole of the rights by the grantor.