Section HR 5 — Income Tax Act 2007: Airport operators: general

HR 5 Airport operators: general When this section applies (1) This section and sections HR 6 and HR 7 apply to determine for this Act certain aspects of the treatment of an airport operator that is a joint venture between the Crown and a local authority. Company (2) The airport operator is treated as a company. Shares in company (3) Each joint venturer is treated as holding shares in the company in proportion to their share of the profits of the joint venture, as determined under the joint venture agreement (after allowing for adjustments for earlier income years). Separate from joint ventures (4) The airport operator is treated as a person separate from— (a) the Crown; and (b) each airport authority; and (c) each other person. Neither public nor local authority (5) The airport operator is treated as neither a public authority nor a local authority. Not subject to mutual association rules (6) The airport operator is not treated as a mutual association for the purposes of subpart HE (Mutual associations). Interest-bearing funding (7) Subsection (8) applies to the extent to which— (a) a joint venturer provides funds for the airport operator’s activities; and (b) the joint venturers expressly agree that the funds are to be provided for the airport operator’s activities; and (c) the funds are provided for consideration in the nature of interest payable by the airport operator. Funding (8) The funds are treated as money borrowed by the airport operator and the consideration is treated as interest. Defined in this Act: airport authority , airport operator , airport operator’s activities , association , company , interest , local authority , public authority , share , Compare: 2004 No 35 s OC 1(2)