Finance Act 2022 (c. 3)

SCHEDULES

SCHEDULE 1 U.K. Abolition of basis periods

PART 2 U.K. Other amendments of ITTOIA 2005

9 U.K. ITTOIA 2005 is amended as follows.

Part 2 (trading income) U.K.

10 (1) Section 17 (effect of becoming or ceasing to be a UK resident) is amended as follows.

(2) In subsection (1), for “otherwise than in partnership” substitute “(alone or in partnership)”.

(3) Omit subsection (5).

11 In section 47 (business gifts: exceptions), in subsection (3)(b), for “basis period” substitute “tax year”.

12 In section 133 (meaning of “relevant period” for purposes of Chapter 9), in paragraph (b) omit “the basis period for”.

13 (1) Section 154A (certain non-UK residents with interest on 3.5% War Loan 1952 Or After) is amended as follows.

(2) In subsection (3)—

(a) in Step 1, omit “the basis period for”;

(b) in each of Steps 3, 4 and 5, for “basis period” substitute “tax year”.

(3) In subsection (4)—

(a) for “basis period”, in each place those words occur, substitute “tax year”;

(b) for “that period” substitute “that tax year”.

(4) In subsection (5), for “basis period” substitute “tax year”.

14 (1) Section 225ZD (compensation for compulsory slaughter of animals: effect of claim for spreading profits) is amended as follows.

(2) In subsection (1), in each of Steps 2 and 3, for “whose basis period”, in each place those words occur, substitute “which”.

(3) Omit subsection (2).

15 In section 240B (“entering the cash basis”), in paragraph (b), omit “the basis period for”.

16 In section 240C (unrelieved qualifying expenditure: Parts 2, 7 and 8 of CAA 2001), in subsection (1)(b)—

(a) omit “the basis period for”;

(b) for “with that basis period” substitute “in that tax year”.

17 In section 240D (assets not fully paid for), in subsection (1)(b), omit “the basis period for”.

18 In section 240E (effect of election where predecessor and successor are connected persons), in subsection (1)(c), omit “the basis period for”.

19 In section 246 (basic meaning of “post-cessation receipt”), in subsection (3)—

(a) at the end of paragraph (a), insert “and”;

(b) omit paragraph (c) and the “and” before it.

Part 5 (miscellaneous income) U.K.

20 In section 613 (films and sound recordings: application of trading income rules to non-trade businesses), omit paragraph (a) and the “and” at the end of that paragraph.

Part 6A (income charged under ITTOIA 2005: trading and property allowances) U.K.

21 (1) Section 783AI (partial relief: alternative calculation of trade profits) is amended as follows.

(2) In subsection (2), omit Step 3.

(3) Omit subsection (4).

Part 7 (rent-a-room and qualifying care relief) U.K.

22 (1) Section 786 (meaning of “rent-a-room receipts”) is amended as follows.

(2) In subsection (1)(b), for “subsections (3) and (4)” substitute “subsection (4)”.

(3) Omit subsection (3).

(4) In subsection (4), in the words before paragraph (a), omit “Otherwise”.

23 (1) Section 805 (meaning of “qualifying care receipts”) is amended as follows.

(2) In subsection (1)(b), for “subsections (2) and (3)” substitute “subsection (3)”.

(3) Omit subsection (2).

(4) In subsection (3), omit “Otherwise”.

24 Omit section 828 (overlap profit).

Part 9 (partnerships) U.K.

25 Omit sections 852 to 856 (firms with trading income).

26 In section 857 (partners to whom the remittance basis applies), in subsection (2), for “856” substitute “851”.

27 In section 860 (adjustment income), in subsection (7), for “856” substitute “851”.

Part 10 (general provisions) U.K.

28 In section 867 (business entertainment and gifts: non-trades and non-property businesses), in subsection (5), omit “(but as if the reference to a basis period were to a tax year)”.

Schedule (abbreviations and defined expressions) U.K.

29 Part 2 of Schedule 4 (index of defined expressions) is amended as follows—

(a) omit the entry for “accounting date”;

(b) omit the entry for “overlap period”;

(c) omit the entry for “overlap profit”.