Section 140L | Interpretation ^F1

(1)In sections 140A to 140K and this section, unless the contrary intention appears—^F2

(a)“the Mergers Directive” means Council Directive 2009/133/EC,^F3

(b)“company” means an entity listed as a company in Part A of Annex I to the Mergers Directive,^F4

(ba)“relevant state” means the United Kingdom or a member State, and^F5

(c)“transparent entity” means an entity which is resident in a member State ... and is listed as a company in Part A of Annex I to the Mergers Directive, but—^F6F4

(i)does not have an ordinary share capital (within the meaning given by section 1119 of CTA 2010), and^F7

(ii)if it were resident in the United Kingdom, would not be capable of being a company within the meaning given by the Companies Act 2006.

(2)For the purposes of those sections and subsection (1) above, a company is resident in a relevant state if—^F8

(a)it is within a charge to tax under the law of the relevant state as being resident for that purpose, and^F8

(b)it is not regarded, for the purposes of any double taxation relief arrangements to which the relevant state is a party, as resident in a territory not within a relevant state.^F8