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Explanatory Notes to Income Tax Act
2007 Chapter 3 |
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© Crown Copyright 2007 Explanatory Notes to Acts of the UK Parliament are subject to Crown Copyright protection. They may be reproduced free of charge provided that they are reproduced accurately and that the source and copyright status of the material is made evident to users. It should be noted that the right to reproduce the text of these Explanatory Notes does not extend to the Queen's Printer imprints which should be removed from any copies of the Explanatory Notes which are issued or made available to the public. This includes reproduction of the Notes on the internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document. The text of this internet version of the Explanatory Notes which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text in printed form and as published by The Stationery Office Limited as the Income Tax Act, ISBN 9780105603078. The print version may be purchased by clicking here. Braille copies of the Explanatory Notes can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail: customer.services@tso.co.uk.
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These notes refer to the Income Tax Act 2007 (c.3) which received Royal Assent on 20 March 2007 INCOME TAX ACT 2007 EXPLANATORY NOTES TABLE OF CONTENTS INTRODUCTION 1 Summary 1 Background 2 Income Tax Act 2007 5 COMMENTARY ON SECTIONS 7 Part 1: Overview 7 Section 1: Overview of Income Tax Acts 7 Section 2: Overview of Act 7 Part 2: Basic provisions 7 Chapter 1: Charges to income tax 7 Section 3: Overview of charges to income tax 7 Section 4: Income tax an annual tax 7 Section 5: Income tax and companies 8 Chapter 2: Rates at which income tax is charged 8 Section 6: The starting rate, basic rate and higher rate 8 Section 7: The savings rate 8 Section 8: The dividend ordinary rate and dividend upper rate 8 Section 9: The trust rate and dividend trust rate 9 Section 10: Income charged at the starting, basic and higher rates: individuals 9 Section 11: Income charged at the basic rate: other persons 9 Section 12: Income charged at the savings rate 9 Section 13: Income charged at the dividend ordinary and dividend upper rates: individuals 9 Section 14: Income charged at the dividend ordinary rate: other persons 10 Section 15: Income charged at the trust rate and the dividend trust rate 10 Section 16: Savings and dividend income to be treated as highest part of total income 10 Section 17: Repayment: tax paid at basic rate instead of starting or savings rate 10 Section 18: Meaning of "savings income" 10 Section 19: Meaning of "dividend income" 10 Section 20: The starting rate limit and the basic rate limit 11 Section 21: Indexation of the starting rate limit and the basic rate limit 11 Chapter 3: Calculation of income tax liability 11 Section 22: Overview of Chapter 11 Section 23: The calculation of income tax liability 12 Section 24: Reliefs deductible at Step 2 12 Section 25: Reliefs and allowances deductible at Steps 2 and 3: supplementary 13 Section 26: Tax reductions 13 Section 27: Order of deducting tax reductions: individuals 14 Section 28: Order of deducting tax reductions: other persons 14 Section 29: Tax reductions: supplementary 14 Section 30: Additional tax 15 Section 31: Total income: supplementary 15 Section 32: Liability not dealt with in the calculation 15 Part 3: Personal reliefs 15 Chapter 1: Introduction 16 Section 33: Overview of Part 16 Chapter 2: Personal allowance and blind person's allowance 16 Section 34: Allowances under Chapter 16 Section 35: Personal allowance for those aged under 65 16 Section 36: Personal allowance for those aged 65 to 74 17 Section 37: Personal allowance for those aged 75 and over 17 Section 38: Blind person's allowance 17 Section 39: Transfer of part of blind person's allowance to a spouse or civil partner 17 Section 40: Election for transfer of allowance under section 39 18 Section 41: Allowances in year of death 18 Chapter 3: Tax reductions for married couples and civil partners 18 Section 42: Tax reductions under Chapter 18 Section 43: Meaning of "the minimum amount" 19 Section 44: Election for new rules to apply 19 Section 45: Marriages before 5 December 2005 19 Section 46: Marriages and civil partnerships on or after 5 December 2005 19 Section 47: Election by individual to transfer relief under section 45 or 46 20 Section 48: Joint election to transfer relief under section 45 or 46 20 Section 49: Election for partial transfer back of relief 20 Section 50: Procedure for making and withdrawing elections under sections 47 to 49 21 Section 51: Transfer of unused relief 21 Section 52: Transfer back of unused relief 21 Section 53: Transfer of unused relief: general 21 Section 54: Tax reductions in the year of marriage or entry into civil partnership 22 Section 55: Sections 45 to 53: supplementary 22 Chapter 4: General 22 Section 56: Residence etc of claimants 22 Section 57: Indexation of allowances 23 Section 58: Meaning of "adjusted net income" 23 Part 4: Loss relief 24 Chapter 1: Introduction 24 Section 59: Overview of Part 24 Chapter 2: Trade losses 24 Section 60: Overview of Chapter 24 Section 61: Non-partners: losses of a tax year 25 Section 62: Partners: losses of a tax year etc 25 Section 63: Prohibition against double counting 25 Section 64: Deduction of losses from general income 25 Section 65: How relief works 26 Section 66: Restriction on relief unless trade is commercial 26 Section 67: Restriction on relief in case of farming or market gardening 26 Section 68: Reasonable expectation of profit 26 Section 69: Whether trade is the same trade 27 Section 70: Determining losses in previous tax years 27 Section 71: Treating trade losses as CGT losses 27 Section 72: Relief for individuals for losses in first 4 years of trade 27 Section 73: How relief works 27 Section 74: Restrictions on relief unless trade is commercial etc 27 Section 75: Trade leasing allowances given to individuals 28 Section 76: First-year allowances: introduction 28 Section 77: First-year allowances: partnerships with companies 28 Section 78: First-year allowances: arrangements to reduce tax liabilities 28 Section 79: Capital allowances restrictions: supplementary 29 Section 80: Ring fence income 29 Section 81: Dealings in commodity futures 29 Section 82: Exploitation of films 29 Section 83: Carry forward against subsequent trade profits 29 Section 84: How relief works 29 Section 85: Use of trade-related interest and dividends if trade profits insufficient 29 Section 86: Trade transferred to a company 30 Section 87: Ring fence trades 30 Section 88: Carry forward of certain interest as loss 30 Section 89: Carry back of losses on a permanent cessation of a trade 30 Section 90: Losses that are "terminal losses" 30 Section 91: How relief works 31 Section 92: Use of trade-related interest and dividends if trade profits insufficient 31 Section 93: Mineral extraction trade and carry back of balancing allowances 31 Section 94: Carry back of certain interest as loss 31 Section 95: Foreign trades etc: reliefs only against foreign income 31 Section 96: Post-cessation trade relief 31 Section 97: Meaning of "qualifying payment" 32 Section 98: Meaning of "qualifying event" etc 32 Section 99: Reduction of relief for unpaid trade expenses 32 Section 100: Prohibition against double counting 32 Section 101: Treating excess post-cessation trade relief as CGT loss 32 Chapter 3: Restrictions on trade loss relief for certain partners 32 Section 102: Overview of Chapter 33 Section 103: Meaning of "sideways relief", "capital gains relief" and "firm" 33 Section 104: Restriction on reliefs for limited partners 33 Section 105: Meaning of "contribution to the firm" 33 Section 106: Meaning of "limited partner" 34 Section 107: Restriction on reliefs for members of LLPs 34 Section 108: Meaning of "contribution to the LLP" 34 Section 109: Unrelieved losses brought forward 35 Section 110: Restriction on reliefs for non-active partners in early tax years 35 Section 111: Meaning of "contribution to the firm" 35 Section 112: Meaning of "non-active partner" and "early tax year" etc 36 Section 113: Unrelieved losses brought forward 36 Section 114: Exclusion of amounts in calculating contribution to the firm or LLP 36 Section 115: Restrictions on reliefs for firms exploiting films 37 Section 116: Exclusion from restrictions under section 115: certain film expenditure 37 Chapter 4: Losses from property businesses 37 Section 117: Overview of Chapter 37 Section 118: Carry forward against subsequent property business profits 37 Section 119: How relief works 37 Section 120: Deduction of property losses from general income 38 Section 121: How relief works 38 Section 122: Meaning of "the applicable amount of the loss" 38 Section 123: Meaning of "the loss has a capital allowances connection" and "the business has a relevant agricultural connection" 38 Section 124: Supplementary 38 Section 125: Post-cessation property relief 38 Section 126: Treating excess post-cessation property relief as CGT loss 38 Section 127: UK furnished holiday lettings business treated as trade 38 Chapter 5: Losses in an employment or office 39 Section 128: Employment loss relief against general income 39 Section 129: How relief works 39 Section 130: Treating loss in employment or office as CGT loss 39 Chapter 6: Losses on disposal of shares 39 Section 131: Share loss relief 40 Section 132: Entitlement to claim 40 Section 133: How relief works 41 Section 134: Qualifying trading companies 41 Section 135: Subscriptions for shares 42 Section 136: Disposals of new shares 42 Section 137: The trading requirement 42 Section 138: Ceasing to meet trading requirement because of administration or receivership 43 Section 139: The control and independence requirement 43 Section 140: The qualifying subsidiaries requirement 44 Section 141: The property managing subsidiaries requirement 44 Section 142: The gross assets requirement 44 Section 143: The unquoted status requirement 44 Section 144: Power to amend requirements by Treasury order 44 Section 145: Relief after an exchange of shares for shares in another company 44 Section 146: Substitution of new shares for old shares 45 Section 147: Limits on share loss relief 46 Section 148: Disposal of shares forming part of mixed holding 46 Section 149: Section 148: supplementary 47 Section 150: Deemed time of issue for certain shares 48 Section 151: Interpretation of Chapter 48 Chapter 7: Losses from miscellaneous transactions 48 Section 152: Losses from miscellaneous transactions 48 Section 153: How relief works 49 Section 154: Transactions in deposit rights 49 Section 155: Time limit for claiming relief 49 Part 5: Enterprise investment scheme 49 Chapter 1: Introduction 50 Section 156: Meaning of "EIS relief" and commencement 50 Section 157: Eligibility for EIS relief 50 Section 158: Form and amount of EIS relief 50 Section 159: Periods A, B and C 50 Section 160: Overview of other Chapters of Part 50 Section 161: Other tax reliefs relating to EIS 51 Chapter 2: The investor 51 Section 162: Overview of Chapter 51 Section 163: The no connection with the issuing company requirement 51 Section 164: The no linked loans requirement 51 Section 165: The no tax avoidance requirement 51 Section 166: Connection with issuing company 51 Section 167: Employees, directors and partners 52 Section 168: Directors excluded from connection 52 Section 169: Directors qualifying for relief despite connection 52 Section 170: Persons interested in capital etc of company 53 Section 171: Persons subscribing for shares under certain arrangements 53 Chapter 3: General requirements 53 Section 172: Overview of Chapter 53 Section 173: The shares requirement 53 Section 174: The purpose of the issue requirement 54 Section 175: The use of the money raised requirement 54 Section 176: The minimum period requirement 54 Section 177: The no pre-arranged exits requirement 54 Section 178: The no tax avoidance requirement 54 Section 179: Meaning of "qualifying business activity" 55 Chapter 4: The issuing company 55 Section 180: Overview of Chapter 55 Section 181: The trading requirement 55 Section 182: Ceasing to meet trading requirement because of administration or receivership 56 Section 183: The issuing company to carry on the qualifying business activity requirement 56 Section 184: The unquoted status requirement 56 Section 185: The control and independence requirement 57 Section 186: The gross assets requirement 57 Section 187: The qualifying subsidiaries requirement 57 Section 188: The property managing subsidiaries requirement 58 Section 189: Meaning of "qualifying trade" 58 Section 190: Meaning of "qualifying 90% subsidiary" 58 Section 191: Meaning of "qualifying subsidiary" 58 Section 192: Meaning of "excluded activities" 58 Section 193: Excluded activities: wholesale and retail distribution 58 Section 194: Excluded activities: leasing of ships 59 Section 195: Excluded activities: receipt of royalties and licence fees 59 Section 196: Excluded activities: property development 59 Section 197: Excluded activities: hotels and comparable establishments 59 Section 198: Excluded activities: nursing homes and residential care homes 59 Section 199: Excluded activities: provision of services or facilities for another business 59 Section 200: Power to amend by Treasury order 59 Chapter 5: Attribution of and claims for EIS relief 60 Section 201: Attribution of EIS relief to shares 60 Section 202: Time for making claims for EIS relief 60 Section 203: Entitlement to claim 60 Section 204: Compliance certificates 60 Section 205: Compliance statements 61 Section 206: Appeal against refusal to authorise compliance certificate 61 Section 207: Penalties for fraudulent certificate or statement etc 61 Chapter 6: Withdrawal or reduction of EIS relief 61 Section 208: Overview of Chapter 61 Section 209: Disposal of shares 61 Section 210: Cases where maximum EIS relief not obtained 61 Section 211: Call options 62 Section 212: Put options 62 Section 213: Value received by the investor 62 Section 214: Value received: receipts of insignificant value 62 Section 215: Meaning of "receipts of insignificant value" 62 Section 216: When value is received 62 Section 217: The amount of value received 63 Section 218: Value received where there is more than one issue of shares 63 Section 219: Value received where part of share issue treated as made in previous tax year 63 Section 220: Cases where maximum EIS relief not obtained 63 Section 221: Receipts of value by and from connected persons etc 64 Section 222: Receipt of replacement value 64 Section 223: Section 222: supplementary 64 Section 224: Repayments etc of share capital to other persons 64 Section 225: Insignificant repayments ignored for purposes of section 224 65 Section 226: Amount of repayments etc where there is more than one issue of shares 65 Section 227: Single issue affecting more than one individual 65 Section 228: Single issue treated as made partly in previous tax year 65 Section 229: Maximum relief not obtained for share issue 65 Section 230: Repayment of authorised minimum within 12 months 66 Section 231: Restriction on withdrawal of relief under section 224 66 Section 232: Acquisition of a trade or trading assets 66 Section 233: Acquisition of share capital 66 Section 234: Relief subsequently found not to have been due 66 Chapter 7: Withdrawal or reduction of EIS relief: procedure 66 Section 235: Assessments for the withdrawal or reduction of EIS relief 66 Section 236: Appeals against section 234(3)(b) notices 67 Section 237: Time limits for assessments 67 Section 238: Cases where assessment not to be made 67 Section 239: Date from which interest is chargeable 67 Section 240: Information to be provided by the investor 67 Section 241: Information to be provided by the issuing company etc 67 Section 242: Power to require information where section 240 or 241 applies or could have applied 68 Section 243: Power to require information in other cases 68 Section 244: Obligations of secrecy 68 Chapter 8: Supplementary and general 68 Section 245: Transfers between spouses or civil partners 68 Section 246: Identification of shares on a disposal 68 Section 247: Continuity of EIS relief where issuing company is acquired by new company 68 Section 248: Carry over of obligations etc where EIS relief attributed to new shares 68 Section 249: Substitution of new shares for old shares 69 Section 250: Nominees and bare trustees 69 Section 251: Approved investment fund as nominee 69 Section 252: Meaning of a company being "in administration" or "in receivership" 69 Section 253: Meaning of "associate" 69 Section 254: Meaning of "disposal of shares" 69 Section 255: Meaning of "issue of shares" 70 Section 256: Meaning of "the termination date" 70 Section 257: Minor definitions etc 70 Part 6: Venture capital trusts 71 Chapter 1: Introduction 71 Section 258: Overview of Part 71 Section 259: Venture capital trusts and VCT approvals 72 Section 260: Other tax reliefs relating to VCTs 72 Chapter 3: VCT approvals 74 Section 274: Requirements for the giving of approval 74 Section 275: Alternative requirements for the giving of approval 74 Section 276: Conditions relating to income 75 Section 277: The 15% holding limit condition 75 Section 278: Conditions relating to value of investments: general 75 Section 279: Conditions relating to value of investments: qualifying holdings 75 Section 280: Conditions relating to qualifying holdings and eligible shares 76 Section 281: Withdrawal of VCT approval of a company 76 Section 282: Withdrawal of VCT approval in cases for which provision made under section 280(3) 76 Section 283: Time as from which VCT approval has effect 76 Section 284: Power to make regulations as to procedure 77 Section 285: Interpretation of Chapter 77 Chapter 4: Qualifying holdings 77 Section 286: Qualifying holdings: introduction 77 Section 287: The maximum qualifying investment requirement 77 Section 288: The no guaranteed loan requirement 78 Section 289: The proportion of eligible shares requirement 78 Section 290: The trading requirement 78 Section 291: The carrying on of a qualifying activity requirement 79 Section 292: Ceasing to meet requirements because of administration or receivership 79 Section 293: The use of the money raised requirement 79 Section 294: The relevant company to carry on the relevant qualifying activity requirement 79 Section 295: The unquoted status requirement 79 Section 296: The control and independence requirement 80 Section 297: The gross assets requirement 80 Section 298: The qualifying subsidiaries requirement 80 Section 299: The property managing subsidiaries requirement 80 Section 300: Meaning of "qualifying trade" 80 Section 301: Meaning of "qualifying 90% subsidiary" 81 Section 302: Meaning of "qualifying subsidiary" 81 Section 303: Meaning of "excluded activities" 81 Section 304: Excluded activities: wholesale and retail distribution 81 Section 305: Excluded activities: leasing of ships 81 Section 306: Excluded activities: receipt of royalties and licence fees 82 Section 307: Excluded activities: property development 82 Section 308: Excluded activities: hotels and comparable establishments 82 Section 309: Excluded activities: nursing homes and residential care homes 82 Section 310: Excluded activities: provision of services or facilities for another business 82 Section 311: Power to amend Chapter 82 Section 312: Winding up of the relevant company 82 Section 313: Interpretation of Chapter 82 Chapter 5: Powers: winding up and mergers of VCTs 83 Section 314: Power to treat VCT-in-liquidation as VCT 83 Section 315: Power to treat conditions for VCT approval as met with respect to VCT-in-liquidation 83 Section 316: Power to make provision about distributions by VCT-in-liquidation 83 Section 317: Power to facilitate disposal to VCT by VCT-in-liquidation 83 Section 318: Power in respect of periods before and after winding up 83 Section 319: Sections 314 to 318: supplementary 83 Section 320: Meaning of "VCT-in-liquidation" 83 Section 321: Power to facilitate mergers of VCTs 83 Section 322: Provision that may be made by regulations under section 321 83 Section 323: Meaning of "merger" and "successor company" 84 Section 324: Regulations under Chapter 84 Section 325: Interpretation of Chapter 84 Chapter 6: Supplementary and general 84 Section 326: Restructuring to which section 327 applies 84 Section 327: Certain requirements of Chapter 4 to be treated as met 84 Section 328: Supplementary 84 Section 329: Conversion of convertible shares and securities 85 Section 330: Power to facilitate company reorganisations etc involving exchange of shares 85 Section 331: Meaning of a company being "in administration" or "in receivership" 85 Section 332: Minor definitions etc 85 Part 7: Community investment tax relief 85 Chapter 1: Introduction 86 Section 333: Meaning of "CITR" 86 Section 334: Eligibility for CITR 86 Section 335: Form and amount of CITR 86 Section 336: Meaning of "making an investment" 86 Section 337: Determination of "the invested amount" 86 Section 338: Meaning of "the 5 year period" and "the investment date" 87 Section 339: Overview of other Chapters of Part 87 Chapter 2: Accredited community development finance institutions 87 Section 340: Application and criteria for accreditation 87 Section 341: Terms and conditions of accreditation 87 Section 342: Period of accreditation 88 Section 343: Delegation of Secretary of State's functions 88 Chapter 3: Qualifying investments 88 Section 344: Qualifying investments: introduction 88 Section 345: Conditions to be met in relation to loans 88 Section 346: Conditions to be met in relation to securities 88 Section 347: Conditions to be met in relation to shares 88 Section 348: Tax relief certificates 89 Section 349: No pre-arranged protection against risks 89 Chapter 4: General conditions 89 Section 350: No control of CDFI by investor 89 Section 351: Investor must have beneficial ownership 89 Section 352: No acquisition of share in partnership 89 Section 353: No tax avoidance purpose 90 Chapter 5: Claims for and attribution of CITR 90 Section 354: Loans: no claim after disposal or excessive repayments or receipts of value 90 Section 355: Securities or shares: no claim after disposal or excessive receipts of value 90 Section 356: No claim after loss of accreditation by the CDFI 90 Section 357: Attribution: general 90 Section 358: Attribution: bonus shares 90 Chapter 6: Withdrawal or reduction of CITR 91 Section 359: Overview of Chapter 91 Section 360: Disposal of loan during 5 year period 91 Section 361: Disposal of securities or shares during 5 year period 91 Section 362: Repayment of loan capital during 5 year period 92 Section 363: Value received by investor during 6 year period: loans 92 Section 364: Value received by investor during 6 year period: securities or shares 92 Section 365: Receipts of insignificant value to be added together 92 Section 366: When value is received 92 Section 367: The amount of value received 92 Section 368: Value received if there is more than one investment 92 Section 369: Effect of receipt of value on future claims for CITR 93 Section 370: Receipts of value by or from connected persons 93 Section 371: CITR subsequently found not to have been due 93 Section 372: Manner of withdrawal or reduction of CITR 93 Chapter 7: Supplementary and general 93 Section 373: Information to be provided by the investor 93 Section 374: Disclosure 93 Section 375: Nominees 93 Section 376: Application for postponement of tax pending appeal 94 Section 377: Identification of securities or shares on a disposal 94 Section 378: Meaning of "issue of securities or shares" 94 Section 379: Meaning of "disposal" 94 Section 380: Construction of references to being "held continuously" 94 Section 381: Meaning of "associate" 95 Section 382: Minor definitions etc 95 Part 8: Other reliefs 95 Chapter 1: Interest payments 95 Section 383: Relief for interest payments 95 Section 384: General restrictions on relief under Chapter 96 Section 385: General provisions about loans 96 Section 386: Loans partly meeting requirements 96 Section 387: Exclusion of double relief etc 96 Section 388: Loan to buy plant or machinery for partnership use 97 Section 389: Eligibility requirements for interest on loans within section 388 97 Section 390: Loan to buy plant or machinery for employment use 97 Section 391: Eligibility requirements for interest on loans within section 390 98 Section 392: Loan to buy interest in close company 98 Section 393: Eligibility requirements for interest on loans within section 392 98 Section 394: Meaning of "material interest" in section 393 99 Section 395: Meaning of "associate" in section 394 99 Section 396: Loan to buy interest in employee-controlled company 99 Section 397: Eligibility requirements for interest on loans within section 396 99 Section 398: Loan to invest in partnership 100 Section 399: Eligibility requirements for interest on loans within section 398 100 Section 400: Film partnerships 100 Section 401: Loan to invest in co-operative 101 Section 402: Eligibility requirements for interest on loans within section 401 101 Section 403: Loan to pay inheritance tax 101 Section 404: Eligibility requirements for interest on loans within section 403 101 Section 405: Carry back and forward of relief for interest on loans within section 403 102 Section 406: Effect of recovery of capital in the case of some loans 102 Section 407: Events counting as recovery of capital for section 406 102 Section 408: Replacement loans 102 Section 409: Business successions between partnerships 102 Section 410: Other business successions and reorganisations 103 Section 411: Ineligibility of interest where business is occupation of commercial woodlands 103 Section 412: Information 103 Chapter 2: Gift aid 104 Section 413: Overview of Chapter 104 Section 414: Relief for gifts to charity 104 Section 415: Meaning of "grossed up amount" 104 Section 416: Meaning of "qualifying donation" 105 Section 417: Meaning of "benefits associated with a gift" 105 Section 418: Restrictions on associated benefits 105 Section 419: Gifts and benefits linked to periods of less than 12 months 105 Section 420: Disregard of certain admission rights 106 Section 421: Admission rights: supplementary 106 Section 422: Disqualified overseas gifts 106 Section 423: Restriction of certain reliefs 106 Section 424: Charge to tax 107 Section 425: Total amount of income tax to which individual charged for a tax year 107 Section 426: Election by donor: gift treated as made in previous tax year 107 Section 427: Meaning of "charged amount" 108 Section 428: Meaning of "gift aid declaration" 108 Section 429: Giving through self-assessment return 108 Section 430: "Charity" to include exempt bodies 109 Chapter 3: Gifts of shares, securities and real property to charities etc 109 Section 431: Relief for gifts of shares, securities and real property to charities etc 109 Section 432: Meaning of "qualifying investment" 109 Section 433: Meaning of "qualifying interest in land" 109 Section 434: The relievable amount 110 Section 435: Incidental costs of making disposal 110 Section 436: Consideration 110 Section 437: Value of net benefit to charity 111 Section 438: Market value of qualifying investments 111 Section 439: Meaning of "disposal-related obligation" 111 Section 440: Meaning and amount of "disposal-related liability" 111 Section 441: Certificate required from charity 111 Section 442: Qualifying interests in land held jointly 111 Section 443: Calculation of relievable amount where joint disposal of interest in land 112 Section 444: Disqualifying events 112 Section 445: Prohibition against double relief 112 Section 446: "Charity" to include exempt bodies 112 Chapter 4: Annual payments and patent royalties 113 Section 447: Overview of Chapter 113 Section 448: Relief for individuals 113 Section 449: Relief for other persons 113 Section 450: Other persons: payments ineligible for relief 114 Section 451: Special rule for persons affected by section 733 of ICTA 114 Section 452: The gross amount of a payment 115 Chapter 5: Qualifying maintenance payments 115 Section 453: Tax reduction for qualifying maintenance payments 115 Section 454: Meaning of "qualifying maintenance payment" 115 Section 455: Child support maintenance payments 116 Section 456: Payments under orders for recovery of benefit etc 116 Chapter 6: Miscellaneous other reliefs 117 Section 457: Payments to trade unions 117 Section 458: Payments to police organisations 117 Section 459: Payments for benefit of family members 117 Section 460: Residence etc of claimants 118 Section 461: Spreading of patent royalty receipts 118 Part 9: Special rules about settlements and trustees 118 Chapter 1: Introduction 119 Section 462: Overview of Part 119 Section 463: Interpretation of Part 119 Section 464: Scottish trusts 119 Chapter 2: General provision about settlements and trustees 119 Section 465: Overview of Chapter and interpretation 120 Section 466: Meaning of "settled property" etc 120 Section 467: Meaning of "settlor" etc 120 Section 468: Meaning of "disposable property" 120 Section 469: Person ceasing to be a settlor 120 Section 470: Transfers between settlements 120 Section 471: Identification of settlor following transfer covered by section 470 120 Section 472: Settlor where property becomes settled because of variation of will etc 120 Section 473: Deceased person as settlor where variation of will etc 121 Section 474: Trustees of settlement to be treated as a single and distinct person 121 Section 475: Residence of trustees 121 Section 476: How to work out whether settlor meets condition C 121 Section 477: Sub-fund elections under Schedule 4ZA to TCGA 1992 122 Section 478: References to settled property etc in regulations 122 Chapter 3: Special rates for trustees' income 122 Section 479: Trustees' accumulated or discretionary income to be charged at special rates 122 Section 480: Meaning of "accumulated or discretionary income" 122 Section 481: Other amounts to be charged at special rates for trustees 123 Section 482: Types of amount to be charged at special rates for trustees 123 Section 483: Sums paid by personal representatives to trustees 123 Chapter 4: Trustees' expenses and special rates for trustees 124 Section 484: Trustees' expenses to be set against trustees' trust rate income 124 Section 485: Carry forward of unused expenses 124 Section 486: How allowable expenses are to be set against trust rate income 124 Section 487: Non-UK resident trustees 125 Chapter 5: Share incentive plans 125 Section 488: Application of section 479 to trustees of approved share incentive plans 125 Section 489: "The applicable period" in relation to shares 125 Section 490: Interpretation of Chapter 126 Chapter 6: Trustees' first slice of trust rate income 126 Section 491: Special rates not to apply to first slice of trustees' trust rate income 126 Section 492: Cases where settlor has made more than one settlement 126 Chapter 7: Discretionary payments 126 Section 493: Discretionary payments by trustees 127 Section 494: Grossing up of discretionary payment and payment of income tax 127 Section 495: Statement about deduction of income tax 127 Section 496: Income tax charged on trustees 127 Section 497: Calculation of trustees' tax pool 128 Section 498: Types of income tax for the purposes of section 497 128 Chapter 8: Trustees' expenses and beneficiary's income 128 Section 499: Application of Chapter 128 Section 500: Restrictions on use of trustees' expenses to reduce the beneficiary's income 129 Section 501: Non-UK resident beneficiaries 129 Section 502: Meaning of "untaxed income" in section 501 129 Section 503: How beneficiary's income is reduced 129 Chapter 9: Unauthorised unit trusts 129 Section 504: Treatment of income of unauthorised unit trust 130 Section 505: Relief for trustees of unauthorised unit trust 130 Section 506: Special rules for trustees affected by section 733 of ICTA 130 Chapter 10: Heritage maintenance settlements 131 Section 507: Overview of Chapter 132 Section 508: Election by trustees 133 Section 509: Change of circumstances during a tax year 133 Section 510: Sums applied for property maintenance purposes 133 Section 511: Prevention of double taxation: reimbursement of settlor 134 Section 512: Charge to tax on some settlements 134 Section 513: Income charged 134 Section 514: Persons liable 134 Section 515: Rate of tax 135 Section 516: Transfer of property between settlements 135 Section 517: Exemption for income treated as income of settlor 136 Part 10: Special rules about charitable trusts etc 136 Section 518: Overview of Part 136 Section 519: Meaning of "charitable trust" 136 Section 520: Gifts entitling donor to gift aid relief: income tax treated as paid 136 Section 521: Gifts entitling donor to gift aid relief: income tax liability and exemption 137 Section 522: Gifts of money from companies: income tax liability and exemption 137 Section 523: Payments from other charities: income tax liability and exemption 137 Section 524: Exemption for profits etc of charitable trades 137 Section 525: Meaning of "charitable trade" 138 Section 526: Exemption for profits etc of small-scale trades 138 Section 527: Exemption from charges under provisions to which section 1016 applies 138 Section 528: Condition as to trading and miscellaneous incoming resources 139 Section 529: Exemption for profits from fund-raising events 139 Section 530: Exemption for profits from lotteries 140 Section 531: Exemption for property income etc 140 Section 532: Exemption for savings and investment income 140 Section 533: Exemption for public revenue dividends 141 Section 534: Exemption for transactions in deposits 141 Section 535: Exemption for offshore income gains 141 Section 536: Exemption for certain miscellaneous income 141 Section 537: Exemption for income from estates in administration 142 Section 538: Requirement to make claim 142 Section 539: Restrictions on exemptions 142 Section 540: The non-exempt amount 142 Section 541: Attributing income to the non-exempt amount 143 Section 542: How income is attributed to the non-exempt amount 143 Section 543: Meaning of "non-charitable expenditure" 143 Section 544: Section 543: supplementary 143 Section 545: Section 543(1)(f): meaning of expenditure 143 Section 546: Section 543(1)(f): tax year in which certain expenditure treated as incurred 144 Section 547: Section 543(1)(f): payment to body outside the UK 144 Section 548: Section 543(1)(i) and (j): investments and loans 144 Section 549: Transactions with substantial donors 144 Section 550: Meaning of "relievable gift" 144 Section 551: Non-charitable expenditure in substantial donor transactions 145 Section 552: Adjustment if section 551(1) and (2) applied to single transaction 145 Section 553: Section 551: certain payments and benefits to be ignored 145 Section 554: Transactions: exceptions 145 Section 555: Donors: exceptions 145 Section 556: Connected charities 145 Section 557: Substantial donor transactions: supplementary 145 Section 558: Approved charitable investments 146 Section 559: Securities which are approved charitable investments 146 Section 560: Conditions to be met for some securities 146 Section 561: Approved charitable loans 147 Section 562: Excess expenditure treated as non-charitable expenditure of earlier years 147 Section 563: Rules for attributing excess expenditure to earlier years 147 Section 564: Adjustments in consequence of section 562 147 Part 11: Manufactured payments and repos 147 Chapter 1: Introduction 148 Section 565: Overview of Part 148 Section 566: Meaning of "UK shares" and "UK securities" 148 Section 567: Meaning of "overseas securities" and "overseas dividend" 148 Section 568: Meaning of "stock lending arrangement" 148 Section 569: Meaning of "repo" 148 Section 570: Meaning of "buying back" securities etc. 148 Section 571: Meaning of "related" agreements 148 Chapter 2: Manufactured payments 148 Section 572: Overview of Chapter 149 Section 573: Manufactured dividends on UK shares 149 Section 574: Allowable deductions: matching 149 Section 575: Allowable deductions: restriction on double-counting 150 Section 576: Manufactured dividends on UK shares: Real Estate Investment Trusts 150 Section 577: Statements about manufactured dividends 150 Section 578: Manufactured interest on UK securities 150 Section 579: Allowable deductions: matching 151 Section 580: Allowable deductions: restriction on double counting 151 Section 581: Manufactured overseas dividends 151 Section 582: Powers about manufactured overseas dividends 151 Section 583: Manufactured payments exceeding underlying payments 151 Section 584: Manufactured payments less than underlying payments 152 Section 585: Power to deal with other special cases 152 Section 586: Powers about administrative provisions 152 Section 587: Power for manufactured payments to be eligible for relief 152 Section 588: Regulation-making powers: general 152 Section 589: Meaning of "gross amount": interest and manufactured overseas dividends 152 Section 590: Meaning of "relevant withholding tax" 152 Section 591: Interpretation of other terms used in Chapter 153 Chapter 3: Tax credits: stock lending arrangements and repos 153 Section 592: No tax credits for borrower under stock lending arrangement 153 Section 593: No tax credits for interim holder under repo 153 Section 594: No tax credits for original owner under repo 153 Section 595: Meaning of "manufactured dividend" 153 Chapter 4: Deemed manufactured payments 153 Section 596: Deemed manufactured payments: stock lending arrangements 153 Section 597: Deemed interest: cash collateral under stock lending arrangements 154 Section 598: Cash collateral under stock lending arrangements: supplementary 154 Section 599: Sections 597 and 598: quasi-stock lending arrangements and quasi-cash collateral 154 Section 600: Meaning of "quasi-stock lending arrangements" and "quasi-cash collateral" 154 Section 601: Repo cases in which deeming rules apply 154 Section 602: Deemed manufactured payments: repos 155 Section 603: Deemed deductions of tax 155 Section 604: Deemed increase in repurchase price: price differences under repos 155 Section 605: Deemed increase in repurchase price: other income tax purposes 155 Section 606: Interpretation of Chapter 155 Chapter 5: Price differences under repos 155 Section 607: Treatment of price differences under repos 156 Section 608: Exceptions to section 607 156 Section 609: Additional income tax consequences of price differences 156 Section 610: Repurchase price in deemed manufactured payment case 156 Section 611: Power to modify Chapter in non-arm's length case 156 Chapter 6: Powers to modify repo provisions 156 Section 612: Non-standard repo cases 156 Section 613: Redemption arrangements 157 Section 614: Sections 612 and 613: supplementary 157 Part 12: Accrued Income Profits 157 Chapter 1 Introduction 157 Section 615: Overview of Part 157 Chapter 2: Accrued income profits and losses 158 Section 616: Charge to tax on accrued income profits 158 Section 617: Income charged 158 Section 618: Person liable 159 Section 619: Meaning of "securities" and when securities are of the same kind 159 Section 620: Transactions which are transfers: general 159 Section 621: Transferors and transferees 159 Section 622: Application of Chapter to different kinds of transfer 160 Section 623: Transfers with accrued interest 160 Section 624: Transfers without accrued interest 160 Section 625: Transfers with unrealised interest 161 Section 626: Transfers of variable rate securities 161 Section 627: Meaning of "variable rate securities" 161 Section 628: Making accrued income profits and losses: general rules 161 Section 629: Calculating accrued income profits and losses where section 628 applies 162 Section 630: Making accrued income profits: settlement day outside interest period 162 Section 631: Amount of accrued income profits where section 630 applies 162 Section 632: Payment on transfer with accrued interest 162 Section 633: Payment on transfer without accrued interest 163 Section 634: Payment on transfer with unrealised interest 164 Section 635: Payment on transfer of variable rate securities 164 Section 636: Exception where there is a transfer to a legatee 165 Section 637: Accrued income losses treated as payments in next interest period 165 Section 638: Excluded persons: disregard of certain payments and transfers 166 Section 639: Small holdings: individuals 166 Section 640: Small holdings: personal representatives 166 Section 641: Small holdings: trustees of a disabled person's trusts 167 Section 642: Traders 167 Section 643: Non-residents 167 Section 644: Individuals to whom the remittance basis applies 167 Section 645: Charitable trusts etc 167 Section 646: Pension scheme trustees 167 Section 647: Makers of manufactured payments 168 Section 648: Strips of gilt-edged securities 168 Section 649: New securities issued with extra return 169 Section 650: Trading stock appropriations etc 169 Section 651: Owner becoming entitled to securities as trustee 170 Section 652: Securities ceasing to be held on charitable trusts 170 Section 653: Stock lending 170 Section 654: Sale and repurchase arrangements 170 Section 655: Transfers under sale and repurchase arrangements 171 Section 656: Power to modify: non-standard sale and repurchase arrangements 171 Section 657: Power to modify: redemption arrangements 171 Section 658: Powers to modify: supplementary 171 Section 659: Transfers with or without accrued interest: interest in default 171 Section 660: Transfers with unrealised interest: interest in default 172 Section 661: Successive transfers with unrealised interest in default 172 Section 662: New securities issued with extra return: special rules about payments 173 Section 663: Transfers without accrued interest to makers of manufactured payments 173 Section 664: Foreign currency securities: sterling equivalent of payments on transfers 173 Section 665: Foreign currency securities: unrealised interest payable in foreign currency 173 Section 666: Certain transfers by or to nominees or trustees treated as made by or to others 173 Section 667: Trustees' accrued income profits treated as settlement income 174 Section 668: Relief for unremittable transfer proceeds: general 174 Section 669: Relief for unremittable transfer proceeds: section 630 profits 175 Section 670: Withdrawal of relief 175 Section 671: Meaning of "interest" 175 Section 672: Meaning of "interest payment day" 175 Section 673: Meaning of "interest period" 175 Section 674: Meaning of "the settlement day" 176 Section 675: The holding of securities 176 Section 676: Nominal value of securities: general 176 Section 677: Nominal value: foreign currency securities 176 Chapter 3: Exemptions relating to interest on securities 176 Section 678: Exemptions relating to interest on securities: preliminary 176 Section 679: Interest on securities involving accrued income losses: general 176 Section 680: Interest on securities involving accrued income losses: foreign trustees 177 Section 681: Unrealised interest received by transferee after transfer 177 Part 13: Tax avoidance 178 Chapter 1: Transactions in securities 178 Section 682: Overview of Chapter 178 Section 683: Meaning of "income tax advantage" 179 Section 684: Person liable to counteraction of income tax advantage 179 Section 685: Exception where no tax avoidance object shown 179 Section 686: Abnormal dividends used for exemptions or reliefs (circumstance A) 180 Section 687: Deductions from profits obtained following distribution or dealings (circumstance B) 180 Section 688: Receipt of consideration representing company's assets, future receipts or trading stock (circumstance C) 180 Section 689: Receipt of consideration in connection with relevant company distribution (circumstance D) 181 Section 690: Receipt of assets of relevant company (circumstance E) 181 Section 691: Meaning of "relevant company" in sections 689 and 690 181 Section 692: Abnormal dividends: general 181 Section 693: Abnormal dividends: the excessive return condition 182 Section 694: Abnormal dividends: the excessive accrual condition 182 Section 695: Preliminary notification that section 684 may apply 182 Section 696: Opposed notifications: statutory declarations 182 Section 697: Opposed notifications: determinations by tribunal 182 Section 698: Counteraction notices 183 Section 699: Limit on amount assessed in section 689 and 690 cases 183 Section 700: Timing of assessments in section 690 cases 183 Section 701: Application for clearance of transactions 183 Section 702: Effect of clearance notification under section 701 184 Section 703: Power to obtain information 184 Section 704: The tribunal 184 Section 705: Appeals against counteraction notices 184 Section 706: Rehearing by tribunal of appeal against counteraction notice 184 Section 707: Statement of case by tribunal for opinion of High Court or Court of Session 185 Section 708: Cases before High Court or Court of Session 185 Section 709: Effect of appeals against tribunal's determination under section 706 185 Section 710: Appeals from High Court or Court of Session 185 Section 711: Proceedings in Northern Ireland 185 Section 712: Application of Chapter where individual within section 684 dies 186 Section 713: Interpretation of Chapter 186 Chapter 2: Transfer of assets abroad 186 Section 714: Overview of Chapter 187 Section 715: Meaning of "relevant transaction" 187 Section 716: Meaning of "relevant transfer" and "transfer" 187 Section 717: Meaning of "assets" etc 187 Section 718: Meaning of "person abroad" etc 187 Section 719: Meaning of "associated operation" 187 Section 720: Charge to tax on income treated as arising under section 721 187 Section 721: Individuals with power to enjoy income as a result of relevant transactions 188 Section 722: When an individual has power to enjoy income of person abroad 188 Section 723: The enjoyment conditions 188 Section 724: Special rules where benefit provided out of income of person abroad 188 Section 725: Reduction in amount charged where controlled foreign company involved 188 Section 726: Non-domiciled individuals 189 Section 727: Charge to tax on income treated as arising under section 728 189 Section 728: Individuals receiving capital sums as a result of relevant transactions 189 Section 729: The capital receipt conditions 189 Section 730: Non-domiciled individuals 189 Section 731: Charge to tax on income treated as arising under section 732 189 Section 732: Non-transferors receiving a benefit as a result of relevant transactions 190 Section 733: Income charged under section 731 190 Section 734: Reduction in amount charged: previous capital gains tax charge 190 Section 735: Non-domiciled individuals 190 Section 736: Exemptions: introduction 191 Section 737: Exemption: all relevant transactions post-4 December 2005 transactions 191 Section 738: Meaning of "commercial transaction" 191 Section 739: Exemption: all relevant transactions pre-5 December 2005 transactions 191 Section 740: Exemption: relevant transactions include both pre-5 December 2005 and post-4 December 2005 transactions 191 Section 741: Application of section 742 (partial exemption) 191 Section 742: Partial exemption where later associated operations fail conditions 192 Section 743: No duplication of charges 192 Section 744: Meaning of taking income into account in charging income tax for section 743 192 Section 745: Rates of tax applicable to income charged under sections 720 and 727 etc 192 Section 746: Deductions and reliefs where individual charged under section 720 or 727 192 Section 747: Amounts corresponding to accrued income scheme profits and related interest 192 Section 748: Power to obtain information 193 Section 749: Restrictions on particulars to be provided by solicitors 193 Section 750: Restrictions on particulars to be provided by banks 193 Section 751: Special Commissioners' jurisdiction on appeals 193 Chapter 3: Transactions in land 193 Section 752: Overview of Chapter 194 Section 753: Meaning of disposing of land 194 Section 754: Priority of other income tax provisions 194 Section 755: Charge to tax on gains from transactions in land 194 Section 756: Income treated as arising where gains obtained from some land disposals 194 Section 757: Person obtaining gain 195 Section 758: Income charged 196 Section 759: Person liable 196 Section 760: Method of calculating gain 196 Section 761: Transactions, arrangements, sales and realisations relevant for Chapter 196 Section 762: Tracing value 196 Section 763: Meaning of "another person" 196 Section 764: Valuations and apportionments 197 Section 765: Exemption: gain attributable to period before intention to develop formed 197 Section 766: Exemption: disposals of shares in companies holding land as trading stock 197 Section 767: Exemption: private residences 197 Section 768: Recovery of tax where consideration receivable by person not assessed 197 Section 769: Recovery of tax: certificates of tax paid etc 197 Section 770: Clearance procedure 197 Section 771: Power to obtain information 198 Section 772: Interpretation of Chapter 198 Chapter 4: Sales of occupation income 200 Section 773: Overview of Chapter 201 Section 774: Meaning of "occupation" 201 Section 775: Priority of other tax provisions 201 Section 776: Charge to tax on sale of occupation income 201 Section 777: Conditions for sections 778 and 779 to apply 201 Section 778: Income arising where capital amount other than derivative property or right obtained 201 Section 779: Income arising where derivative property or right obtained 202 Section 780: Transactions, arrangements, sales and realisations relevant for Chapter 203 Section 781: Tracing value 203 Section 782: Meaning of "other person" 203 Section 783: Valuations and apportionments 203 Section 784: Exemption for sales of going concerns 203 Section 785: Restriction on exemption: sales of future earnings 203 Section 786: Recovery of tax where consideration receivable by person not assessed 203 Section 787: Recovery of tax: certificates of tax paid etc 203 Section 788: Power to obtain information 204 Section 789: Minor definitions 204 Chapter 5: Avoidance involving trading losses 204 Section 790: Overview of Chapter 204 Section 791: Charge to tax on income treated as received under section 792 205 Section 792: Partners claiming excess sideways or capital gains relief 205 Section 793: Calculating the amount of income treated as received 205 Section 794: Meaning of "the total amount of trade losses claimed" etc 205 Section 795: Meaning of "post-1 December 2004 loss" 206 Section 796: Charge to tax on income treated as received under section 797 206 Section 797: Individuals claiming sideways or capital gains relief for film-related losses 206 Section 798: Meaning of "non-taxable consideration" etc 206 Section 799: Meaning of "disposal of a right of the individual to profits" etc 206 Section 800: Meaning of "film-related losses" etc 206 Section 801: Meaning of "capital contribution" 206 Section 802: Exclusion of amounts in calculating capital contribution by a partner 207 Section 803: Prohibition against double counting 207 Section 804: Charge to tax on income treated as received under section 805 207 Section 805: Partners claiming relief for licence-related trading losses 207 Section 806: Calculation of amount of income treated as received by the individual 208 Section 807: Supplementary provision relating to calculation in section 806 208 Section 808: Meaning of "disposal of the licence" etc 208 Section 809: Other definitions 208 Part 14: Income tax liability: miscellaneous rules 208 Chapter 1: Limits on liability to income tax of non-UK residents 208 Section 810: Overview of Chapter 209 Section 811: Limit on liability to income tax of non-UK residents 209 Section 812: Case where limit not to apply 209 Section 813: Meaning of "disregarded income" 209 Section 814: Meaning of "disregarded transaction income" 210 Section 815: Limit on liability to income tax of non-UK resident companies 210 Section 816: Meaning of "disregarded company income" 211 Section 817: The independent broker conditions 211 Section 818: The independent investment manager conditions 212 Section 819: Investment managers: the 20% rule 213 Section 820: Meaning of "qualifying period" 213 Section 821: Meaning of "relevant disregarded income" 213 Section 822: Meaning of "beneficial entitlement" 214 Section 823: Treatment of transactions where requirements of 20% rule not met 214 Section 824: Application of 20% rule to collective investment schemes 215 Section 825: Meaning of "disregarded savings and investment income" 215 Section 826: Meaning of "disregarded annual payments" 215 Section 827: Meaning of "investment manager" and "investment transaction" 215 Section 828: Transactions through brokers and investment managers 216 Chapter 2: Residence 216 Section 829: Residence of individuals temporarily abroad 216 Section 830: Residence of individuals working abroad 218 Section 831: Foreign income of individuals in the United Kingdom for temporary purpose 218 Section 832: Employment income of individuals in the United Kingdom for temporary purpose 219 Section 833: Visiting forces and staff of designated allied headquarters 220 Section 834: Residence of personal representatives 221 Section 835: Residence rules for trustees and companies 222 Chapter 3: Jointly held property 222 Section 836: Jointly held property 223 Section 837: Jointly held property: declarations of unequal beneficial interests 224 Chapter 4: Other miscellaneous rules 224 Section 838: Local authorities and local authority associations 224 Section 839: Issue departments of the Reserve Bank of India and the State Bank of Pakistan 224 Section 840: Government securities held by non-UK resident central banks 224 Section 841: Official agents of Commonwealth countries etc 224 Section 842: European Economic Interest Groupings 225 Section 843: Restriction of deductions for annual payments 225 Section 844: Letters patent etc: exempting provisions 225 Section 845: Extra return to be treated as interest etc 225 Section 846: Interpretation of section 845 226 Part 15: Deduction of income tax at source 226 Chapter 1: Introduction 226 Section 847: Overview of Part 226 Section 848: Income tax deducted at source treated as income tax paid by recipient 226 Section 849: Interaction with other Income Tax Acts provisions 227 Chapter 2: Deduction by deposit-takers and building societies 227 Section 850: Overview of Chapter 227 Section 851: Duty to deduct sums representing income tax 228 Section 852: Power to make regulations disapplying section 851 228 Section 853: Meaning of "deposit-taker" 228 Section 854: Power to prescribe persons as deposit-takers 229 Section 855: Meaning of "investment" and "deposit" 229 Section 856: Investments which are relevant investments 229 Section 857: Investments to be treated as being or as not being relevant investments 230 Section 858: Declarations of non-UK residence: individuals 230 Section 859: Declarations of non-UK residence: Scottish partnerships 230 Section 860: Declarations of non-UK residence: personal representatives 231 Section 861: Declarations of non-UK residence: settlements 231 Section 862: Inspection of declarations 231 Section 863: General client account deposits 231 Section 864: Qualifying uncertificated eligible debt security units 231 Section 865: Qualifying certificates of deposit 232 Section 866: Qualifying time deposits 232 Section 867: Lloyd's premium trust funds 232 Section 868: Investments held outside the United Kingdom 232 Section 869: Sale and repurchase of securities 232 Section 870: Other investments 233 Section 871: Power to make regulations to give effect to Chapter 233 Section 872: Power to make orders amending Chapter 233 Section 873: Discretionary or accumulation settlements 233 Chapter 3: Deduction from certain payments of yearly interest 234 Section 874: Duty to deduct from certain payments of yearly interest 234 Section 875: Interest paid by building societies 235 Section 876: Interest paid by deposit-takers 235 Section 877: UK public revenue dividends 235 Section 878: Interest paid by banks 235 Section 879: Interest paid on advances from banks 235 Section 880: Interest paid on advances from building societies 236 Section 881: National Savings Bank interest 236 Section 882: Quoted Eurobond interest 236 Section 883: Interest on loan to buy life annuity 236 Section 884: Relevant foreign income 236 Section 885: Authorised persons dealing in financial instruments 236 Section 886: Interest paid by recognised clearing houses etc 236 Section 887: Industrial and provident society payments 236 Section 888: Statutory interest 237 Chapter 4: Deduction from payments in respect of building society securities 237 Section 889: Payments in respect of building society securities 237 Chapter 5: Deduction from payments of UK public revenue dividends 237 Section 890: Overview of Chapter 237 Section 891: Meaning of "UK public revenue dividend" 238 Section 892: Duty to deduct from certain UK public revenue dividends 238 Section 893: Payments of UK public revenue dividends which are payable gross 238 Section 894: Treasury directions 238 Section 895: Deduction at source application 238 Section 896: Withdrawal of application 239 Section 897: Power to make regulations 239 Chapter 6: Deduction from annual payments and patent royalties 239 Section 898: Overview of Chapter 240 Section 899: Meaning of "qualifying annual payment" 240 Section 900: Deduction from commercial payments made by individuals 241 Section 901: Deduction from annual payments made by other persons 241 Section 902: Meaning of "applicable rate" in section 901 242 Section 903: Deduction from patent royalties 242 Section 904: Annual payments for dividends or non-taxable consideration 243 Section 905: Interpretation of Chapter 243 Chapter 7: Deduction from other payments connected with intellectual property 243 Section 906: Certain royalties etc where usual place of abode of owner is abroad 243 Section 907: Meaning of "relevant intellectual property right" 244 Section 908: Royalty payments etc made through UK resident agents 244 Section 909: Royalty payments: further provision 244 Section 910: Proceeds of a sale of patent rights: payments to non-UK residents 244 Chapter 8: Chapters 6 and 7: Special provision in relation to royalties 245 Section 911: Double taxation arrangements: deduction at treaty rate 245 Section 912: Power to make directions disapplying section 911 245 Section 913: Interpretation of sections 911 and 912 246 Section 914: EU companies: discretion to make payment gross 246 Section 915: Power to make directions disapplying section 914 246 Section 916: Duty of payee to notify if payment not exempt 246 Section 917: Supplementary 246 Chapter 9: Manufactured payments 246 Section 918: Manufactured dividends on UK shares: Real Estate Investment Trusts 247 Section 919: Manufactured interest on UK securities: payments by UK residents etc 247 Section 920: Foreign payers of manufactured interest: the reverse charge 248 Section 921: Cases where interest on underlying securities paid gross 249 Section 922: Manufactured overseas dividends: payments by UK residents etc 249 Section 923: Foreign payers of manufactured overseas dividends: the reverse charge 250 Section 924: Power to reduce section 923 liability 250 Section 925: Power to provide set-off entitlement 250 Section 926: Interpretation of Chapter 250 Section 927: Regulation-making powers: general 251 Chapter 10: Deduction from non-commercial payments by companies 251 Section 928: Chargeable payments connected with exempt distributions 251 Chapter 11: Payments between companies etc: exception from duties to deduct 251 Section 929: Overview of Chapter 251 Section 930: Exception from duties to deduct sums representing income tax 251 Section 931: Power to make directions disapplying section 930 251 Section 932: Meaning of "qualifying partnership" 251 Section 933: UK resident companies 252 Section 934: Non-UK resident companies 252 Section 935: PEP and ISA managers 252 Section 936: Recipients who are to be paid gross 252 Section 937: Partnerships 252 Section 938: Consequences of reasonable but incorrect belief 252 Chapter 12: Funding bonds 252 Section 939: Duty to retain bonds where issue treated as payment of interest 252 Section 940: Exception from duty to retain bonds 253 Chapter 13: Unauthorised unit trusts 253 Section 941: Deemed payments to unit holders and deemed deductions of income tax 253 Section 942: Income tax to be collected from trustees 254 Section 943: Calculation of trustees' income pool 254 Chapter 14: Tax avoidance: directions for duty to deduct to apply 255 Section 944: Directions for deduction from payments to non-UK residents 255 Chapter 15: Collection: deposit-takers, building societies and certain companies 256 Section 945: Overview of Chapter 256 Section 946: Payments within this section 256 Section 947: Return periods 256 Section 948: Meaning of "accounting period" 257 Section 949: Payments in an accounting period 257 Section 950: Payments otherwise than in an accounting period 257 Section 951: Collection and payment of income tax 257 Section 952: Conditions for a set-off claim 257 Section 953: How a set-off claim works 258 Section 954: Proceedings begun after a set-off claim is made 258 Section 955: Proceedings begun before a set-off claim is made 258 Section 956: Assessments where section 946 payment included in return 258 Section 957: Assessments in other cases 258 Section 958: Payer's duty to deliver amended return 259 Section 959: Application of Income Tax Acts provisions about time limits for assessments 259 Section 960: Further provisions about assessments 259 Section 961: Relationship between Chapter and Income Tax Acts powers 259 Section 962: Power to make regulations modifying Chapter 259 Chapter 16: Collection: certain payments by other persons 260 Section 963: Collection of income tax on certain payments by other persons 260 Chapter 17: Collection through self-assessment return 260 Section 964: Collection through self-assessment return 260 Chapter 18: Other regimes involving the deduction of income tax at source 260 Section 965: Overview of sections 966 to 970 261 Section 966: Duty to deduct and account for sums representing income tax 261 Section 967: Calculation of sums representing income tax 261 Section 968: Treatment of sums representing income tax 262 Section 969: Regulations 262 Section 970: Supplementary 262 Section 971: Income tax due in respect of income of non-resident landlords 262 Section 972: Regulations under section 971 263 Section 973: Income tax due in respect of distributions 263 Section 974: Regulations under section 973 263 Chapter 19: General 264 Section 975: Statements about deduction of income tax 264 Section 976: Arrangements for payments of interest less tax or at specified net rate 264 Section 977: Payments to companies 265 Section 978: Application to public departments 265 Section 979: Designated international organisations: exceptions from duties to deduct 265 Section 980: Derivative contracts: exception from duties to deduct 266 Section 981: Foreign currency securities etc: exception from duties to deduct 266 Section 982: Income tax is calculated by reference to gross amounts 266 Section 983: Meaning of "deposit" 266 Section 984: Meaning of "financial instrument" 266 Section 985: Meaning of "qualifying certificate of deposit" 266 Section 986: Meaning of "qualifying uncertificated eligible debt security unit" 267 Section 987: Meaning of "quoted Eurobond" 267 Part 16: Income Tax Acts definitions etc 267 Chapter 1: Definitions 267 Section 988: Overview of Chapter 268 Section 989: The definitions 268 Section 990: Meaning of "Act" 268 Section 991: Meaning of "bank" 268 Section 992: Meaning of "company" 269 Section 993: Meaning of "connected" persons 269 Section 994: Meaning of "connected" persons: supplementary 269 Section 995: Meaning of "control" 269 Section 996: Meaning of "farming" and related expressions 269 Section 997: Meaning of "generally accepted accounting practice" and related expressions 270 Section 998: Meaning of "grossing up" 270 Section 999: Meaning of "local authority" 270 Section 1000: Meaning of "local authority association" 270 Section 1001: Meaning of "offshore installation" 270 Section 1002: Regulations about the meaning of "offshore installation" 270 Section 1003: Meaning of "oil and gas exploration and appraisal" 270 Section 1004: Meaning of "property investment LLP" 270 Section 1005: Meaning of "recognised stock exchange" 270 Section 1006: Meaning of "research and development" 271 Section 1007: Meaning of "unit trust scheme" 271 Chapter 2: Other Income Tax Acts provisions 271 Section 1008: Scotland 271 Section 1009: Sources of income within the charge to income tax or corporation tax 271 Section 1010: Application of Income Tax Acts to recognised investment exchanges 271 Section 1011: References to married persons, or civil partners, living together 271 Section 1012: Relationship between rules on highest part of total income 271 Section 1013: Territorial sea of the United Kingdom 272 Section 1014: Orders and regulations 272 Section 1015: Territorial scope of charges under certain provisions to which section 1016 applies 272 Section 1016: Table of provisions to which this section applies 272 Part 17: Definitions for purposes of Act and final provisions 272 Section 1017: Abbreviated references to Acts 272 Section 1018: "Act" to include Scottish and Northern Ireland legislation in some cases 272 Section 1019: Meaning of "certificate of deposit" 273 Section 1020: Claims and elections 273 Section 1021: Application of definitions of "connected" persons and "control" 273 Section 1022: Meaning of "debenture" 273 Section 1023: Meaning of "double taxation arrangements" 273 Section 1024: Meaning of "gilt-edged securities" 273 Section 1025: Meaning of "modified net income" 273 Section 1026: Meaning of "non-qualifying income" for the purposes of section 1025 274 Section 1027: Minor and consequential amendments 274 Section 1028: Power to make consequential provision 274 Section 1029: Power to undo changes | |