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Income and Corporation Taxes Act 1970


This is the original version (as it was originally enacted).

  1. Introductory Text

  2. PART I Charge of Income Tax, and General Provisions relating only to Income Tax

  3. PART II Annual Payments and Interest

  4. PART III Schedule A, and Associated Charges under Schedule D

  5. PART IV Schedule B

  6. PART V Schedule C, and General Provisions about Government Securities

  7. PART VI Schedule D

  8. PART VII Loss Relief

  9. PART VIII Schedule E

  10. PART IX Pension Schemes, Life Annuities etc

  11. PART X Schedule F and Company Distributions

  12. PART XI Company Taxation

  13. PART XII Special Classes of Companies and Businesses

  14. PART XIII Special Exemptions

  15. PART XIV Miscellaneous Special Provisions

  16. PART XV Estates of Deceased Persons in Course of Administration

  17. PART XVI Settlements

  18. PART XVII Tax Avoidance

  19. PART XVIII Double Taxation Relief

  20. PART XIX Supplemental

  21. PART XX General


    1. PART I Charge of Income Tax, and General Provisions relating only to Income Tax

      1. CHAPTER I The Charge, and Dates for Payment

        1. 1.The charge

        2. 2.Fractions of a pound, and yearly assessments

        3. 3.Effect of charging at a standard rate, and at higher rates for larger incomes

        4. 4.Dates for payment

      2. CHAPTER II Personal Reliefs

        1. The reliefs

          1. 5.General

          2. 6.Relief for small incomes

          3. 7.Relief for persons over sixty-five with small incomes

          4. 8.Personal relief

          5. 9.Earned income and old age reliefs

          6. 10.Children

          7. 11.Double claim for children

          8. 12.Widower's or widow's housekeeper

          9. 13.Relative taking charge of unmarried person's young brother or sister

          10. 14.Additional relief for widows and others in respect of children

          11. 15.Claims under ss. 12 to 14 for year of marriage

          12. 16.Dependent relatives

          13. 17.Claimant depending on services of a daughter

          14. 18.Relief for blind persons

          15. 19.Premiums under post-1916 life policies etc

          16. 20.Premiums under pre-1916 life policies etc., and certain other payments

          17. 21.Limits on relief under ss. 19 and 20

          18. 22.Reduced rate relief

        2. Supplemental

          1. 23.Meaning of " relative "

          2. 24.Reduction in reliefs on account of family allowances

          3. 25.No relief to be given in respect of charges on income

          4. 26.Partners

          5. 27.Non-residents

      3. CHAPTER III Surtax

        1. General reliefs

          1. 28.Earned income and other personal reliefs

          2. 29.Relief on death in year for which rates increased

        2. Special provisions as to accrual of income

          1. 30.Provisions for preventing avoidance of surtax by sales cum dividend, etc

          2. 31.Relief where income attributable to a period exceeding a year is received in a year

          3. 32.Relief in case of purchases cum dividend

          4. 33.Supplemental

        3. Other special provisions

          1. 34.Surtax to be charged on consideration for certain restrictive covenants etc

          2. 35.Expenses of Crown servants abroad

          3. 36.Recovery of surtax due from beneficiary under discretionary trust

      4. CHAPTER IV Aggregation of Income-Husband and Wife

        1. 37.General rule for aggregation of wife's income

        2. 38.Options for separate assessment

        3. 39.Effect of separate assessment on personal reliefs (including those running for surtax)

        4. 40.Collection from wife of tax assessed on husband but attributable to her income

        5. 41.Right of husband to disclaim liability for tax on deceased wife's income

        6. 42.Construction of references to married women living with their husbands, etc

      5. CHAPTER V Aggregation of Income-Parent and Child

        1. 43.General rule for aggregation of investment etc. income of unmarried infants not regularly working

        2. 44.Detailed rules

        3. 45.Consequences of aggregation as respects certain payments involving tax reliefs

        4. 46.Right of parent to recover tax on aggregated income

        5. 47.Accountability of parent for tax repayments attributable to aggregation

        6. 48.Supplemental

      6. CHAPTER VI Residence

        1. 49.British subjects etc. temporarily abroad

        2. 50.Residence of persons working abroad

        3. 51.Temporary residents in United Kingdom

    2. PART II Annual Payments and Interest

      1. Deduction of income tax at standard rate

        1. 52.Payments out of profits or gains brought into charge to income tax

        2. 53.Payments not out of profits or gains brought into charge to income tax

        3. 54.Annual interest

        4. 55.Certificates of deduction

        5. 56.Construction of references to payments not out of profits or gains brought into charge

      2. Interest paid: relief from income tax

        1. 57.Loans for purchase or improvement of land

        2. 58.Loan applied in acquiring interest in close company

        3. 59.Loan applied in acquiring interest in a partnership

        4. 60.Loan to purchase machinery or plant used by a partnership

        5. 61.Loan to pay estate duty

        6. 62.Certain pre-1970 loans

        7. 63.Supplemental: overdrafts

        8. 64.Other supplemental provisions

      3. Special types of payment

        1. 65.Small maintenance payments

        2. 66.Tithe annuities

    3. PART III Schedule A, and Associated Charges under Schedule D

      1. The Schedule A charge

        1. 67.Schedule A

        2. 68.Persons chargeable

        3. 69.Assessment

        4. 70.Collection from lessees and agents

      2. Deductions and allowances

        1. 71.Deductions: introductory

        2. 72.Deductions from rents: general rules

        3. 73.Deductions from rents: land managed as one estate

        4. 74.Deductions from receipts other than rent

        5. 75.Sporting rights

        6. 76.Expenditure on making sea walls

        7. 77.Deductions: supplemental

        8. 78.Capital allowances for machinery and plant used in estate management

        9. 79.Agricultural land: allowance for excess maintenance etc expenditure

      3. Premiums, leases at undervalue etc. (Schedules A and D)

        1. 80.Treatment of premiums etc. as rent or Schedule D profits

        2. 81.Schedule D charge on assignment of lease granted at undervalue

        3. 82.Schedule D charge on sale of land with right to reconveyance

        4. 83.Premiums paid etc.: deduction from premiums and rents received

        5. 84.Rules for ascertaining duration of leases

        6. 85.Saving for pre-1963 leases, and special relief for individuals

      4. Supplemental (Schedules A and D)

        1. 86.Tax treatment of receipts and outgoings on sale of land

        2. 87.Relief for rent etc. not paid

        3. 88.Allowances for betterment levy

        4. 89.Non-residents

        5. 90.Interpretation

    4. PART IV Schedule B

      1. 91.Schedule B

      2. 92.Supplemental

    5. PART V Schedule C, and General Provisions about Government Securities

      1. The Schedule C charge

        1. 93.Schedule C

        2. 94.Income tax: mode of charge

      2. Government securities: exemptions from tax

        1. 95.United Kingdom savings certificates

        2. 96.Ulster savings certificates held by persons resident and domiciled in Northern Ireland

        3. 97.Ulster savings certificates issued to persons resident in Northern Ireland

        4. 98.Tax reserve certificates

        5. 99.United Kingdom government securities held by nonresidents

        6. 100.Securities of foreign states held by non-residents

      3. Government securities: payment of interest without deduction of income tax, and other provisions

        1. 101.United Kingdom securities: Treasury directions for payment without deduction

        2. 102.Treasury directions as respects Northern Ireland securities

        3. 103.Information to be given where interest paid without deduction

        4. 104.Taxation of interest on converted government securities, and interest which becomes subject to deduction

        5. 105.Subscriptions by banks to war loans

      4. Miscellaneous and supplemental

        1. 106.Exemption for stock and dividends in name of Treasury etc

        2. 107.Interpretation

    6. PART VI Schedule D

      1. CHAPTER I The Charge

        1. The Schedule, and the seven Cases

          1. 108.Schedule D

          2. 109.Tax to be charged under seven Cases

        2. Supplementary charging provisions

          1. 110.Farming, and other commercial occupation of land (except woodlands)

          2. 111.Woodlands managed on a commercial basis

          3. 112.Mines, quarries and other concerns

          4. 113.Foreign pensions

          5. 114.Persons chargeable

      2. CHAPTER II Cases I to VI: Income Tax:Basis of Assessment etc

        1. Cases I and II

          1. 115.Assessment on preceding year basis

          2. 116.Special basis at commencement of trade, profession or vocation

          3. 117.Special basis for two years following commencement

          4. 118.Special basis on discontinuance

        2. Case III

          1. 119.Assessment on preceding year basis

          2. 120.Special rules for fresh income

          3. 121.Special rules where source of income ceases

        3. Cases IV and V

          1. 122.Assessment on preceding year basis, but, in certain cases, only on sums received in United Kingdom

          2. 123.Special rules for fresh income

          3. 124.Special rules where source of income ceases

        4. Case VI

          1. 125.Assessment on current year basis unless otherwise directed

        5. Miscellaneous

          1. 126.Tax computed on profits of previous period to be charged though no profits in year of assessment

          2. 127.Apportionments etc. for purposes of Cases I, II and VI

          3. 128.Single assessments for purposes of Cases III, IV and V

      3. CHAPTER III Cases I to VI: Corporation Tax: Basis of Assessment etc

        1. 129.Basis of assessment, apportionments, single assessments, and miscellaneous special provisions

      4. CHAPTER IV Trades, Professions and Vocations: Computational Provisions

        1. General provisions

          1. 130.General rules as to deductions not allowable

          2. 131.Income tax: deduction of interest paid to non-residents

          3. 132.Deduction of patent etc. fees and expenses

          4. 133.Deduction of payments for technical education

          5. 134.Deductions where premiums etc. taxable

          6. 135.Deduction for debts proving irrecoverable after event treated as discontinuance

          7. 136.Debts set off against profits and subsequently released

          8. 137.Valuation of trading stock on discontinuance of trade

          9. 138.Valuation of work in progress at discontinuance of profession or vocation

        2. Special provisions

          1. 139.Treatment of farm animals etc

          2. 140.Tied premises

          3. 141.Cemeteries etc.: deduction of certain capital expenditure

          4. 142.Dealers in land: purchase and sale of woodlands, and special rules where premiums etc. taxable

      5. CHAPTER V Trades, Professions and Vocations: Post-cessation etc. Receipts

        1. Case VI charges on receipts after discontinuance or change in basis of computation

          1. 143.Receipts after discontinuance: earnings basis charge, and related charge affecting conventional basis

          2. 144.Conventional basis: general charge on receipts after discontinuance or change of basis

          3. 145.Allowable deductions

          4. 146.Application of charges on events treated as discontinuances

          5. 147.Application of charges where rights to payments transferred

        2. Reliefs

          1. 148.Treatment of receipts as earned income

          2. 149.Election for carry-back

          3. 150.Charge under s. 144: relief for individuals born before 6th April 1917

        3. Supplemental

          1. 151.Interpretation etc

      6. CHAPTER VI Partnerships and Successions

        1. 152.Partnership assessments to income tax

        2. 153.Partnerships controlled abroad

        3. 154.Effect, for income tax, of change in ownership of trade, profession or vocation

        4. 155.Special rules for partnerships involving companies

      7. CHAPTER VII Mining etc. Rents and Royalties: Foreign Dividends

        1. 156.Rent etc. payable in connection with mines, quarries and similar concerns

        2. 157.Rent etc. payable in respect of electric line wayleaves

        3. 158.Management expenses of owner of mineral rights

        4. 159.Foreign dividends

      8. CHAPTER VIII Case VII: Income Tax on Short Term Capital Gains

        1. 160.Scope of charge under Case VII

        2. 161.Chargeable assets

        3. 162.General operation of charge

        4. 163.Operation in special cases (trust assets, devolution on death, enforcement of securities etc.)

        5. 164.Computation of gains

        6. 165.Exemption for chattels sold for £1,000 or less, and marginal relief

        7. 166.Miscellaneous exemptions and reliefs

        8. 167.Interpretation, and other supplementary provisions

    7. PART VII Loss Relief

      1. CHAPTER I Income Tax

        1. Trade etc. losses

          1. 168.Set-off against general income

          2. 169.Extension of right of set-off, to capital allowances

          3. 170.Restrictions on right of set-off

          4. 171.Carry-forward against subsequent profits

          5. 172.Carry-forward where business transferred to a company

          6. 173.Carry-forward as losses of amounts taxed under s. 53

          7. 174.Carry-back of terminal losses

          8. 175.Treatment of interest as a loss for purposes of carry forward and carry-back

        2. Case VI losses

          1. 176.Case VI losses

      2. CHAPTER II Corporation Tax

        1. Trade etc. losses

          1. 177.Losses other than terminal losses

          2. 178.Terminal losses

        2. Case VI losses

          1. 179.Case VI losses

      3. CHAPTER III Income Tax and Corporation Tax

        1. 180.Restriction of relief under ss. 168 and 177 in case of farming and market gardening

    8. PART VIII Schedule E

      1. CHAPTER I The Charge

        1. The Schedule

          1. 181.Schedule E

        2. Supplementary charging provisions

          1. 182.Voluntary pensions

          2. 183.Offices and employments: scope of charge

          3. 184.Offices and employments: place of performance, and meaning of emoluments received in United Kingdom

          4. 185.Accommodation occupied by holder of office or employment

          5. 186.Directors and employees of companies granted rights to acquire shares

          6. 187.Payments on retirement or removal from office or employment

          7. 188.Exemptions and reliefs in respect of tax under s. 187

        3. Reliefs

          1. 189.Relief for necessary expenses

          2. 190.Interest on loans to purchase machinery or plant

          3. 191.Expenses necessarily incurred, and defrayed from official emoluments

          4. 192.Fees and subscriptions to professional bodies, learned societies etc

          5. 193.Travelling expenses due to war of 1939

          6. 194.Expenditure and houses of ministers of religion

      2. CHAPTER II Expenses Allowances to Directors and Others

        1. 195.Expenses allowances, etc

        2. 196.Benefits in kind to be taken into account

        3. 197.Valuation of benefits in kind

        4. 198.Meaning of " director ", " employment ", and " employment to which this Chapter applies "

        5. 199.Saving for certain payments and expenses

        6. 200.Additional information

        7. 201.Charities and non-trading bodies

        8. 202.Interpretation

        9. 203.Unincorporated bodies and partnerships

      3. CHAPTER III Assessment, Collection, Recovery and Appeals

        1. 204.Pay as you earn

        2. 205.Formal assessments to be unnecessary in certain cases

        3. 206.Additional provision for certain Schedule E assessments

        4. 207.Disputes as to domicile or ordinary residence

    9. PART IX Pension Schemes, Life Annuities etc

      1. CHAPTER I Pension Schemes Generally, and Social Security Benefits and Contributions

        1. 208.Approved superannuation funds

        2. 209.Contributions under statutory pension schemes

        3. 210.Disallowance of contributions for widows' and other pensions

        4. 211.Parliamentary pension funds

        5. 212.National insurance supplementary schemes etc

        6. 213.Indian family pension funds

        7. 214.Indian, Pakistan and colonial pensions and pension funds

        8. 215.Pensions under Overseas Service Act 1958

        9. 216.Central African Pension Fund

        10. 217.Overseas Service Pensions Fund

        11. 218.Pension funds for overseas employees

        12. 219.Social security benefits and contributions

      2. CHAPTER II Pension Rights of Directors and Employees

        1. 220.Taxation of provision for retirement benefits etc. for directors and employees of bodies corporate

        2. 221.Exemptions from charge to tax under s. 220

        3. 222.Approval of retirement benefits schemes

        4. 223.Aggregation and severance of schemes

        5. 224.Supplementary provisions

        6. 225.Application to unincorporated societies, etc

      3. CHAPTER III Retirement Annuities

        1. 226.Approval of retirement annuity contracts and trust schemes

        2. 227.Nature and amount of relief for qualifying premiums

        3. 228.Application of the proviso to s. 227(1) to holders of pensionable offices, etc. and persons born in or before 1915

        4. 229.Annuity premiums of Ministers and other officers

      4. CHAPTER IV Purchased Life Annuities

        1. 230.Purchased life annuities, other than retirement annuities

        2. 231.Supplementary

    10. PART X Schedule F and Company Distributions

      1. 232.Schedule F

      2. Meaning of "distributions"

        1. 233.Matters to be treated as distributions

        2. 234.Bonus issues following repayment of share capital

        3. 235.Matters to be treated or not treated as repayments of share capital

        4. 236.Stock dividend options

        5. 237.Distributions: supplemental

    11. PART XI Company Taxation

      1. CHAPTER I Main Provisions

        1. General system of taxation

          1. 238.Charge to corporation tax

          2. 239.U.K. company distributions not chargeable to corporation tax

          3. 240.Income tax on distributions, etc., received by U.K company

          4. 241.Claims for repayment of income tax deducted from receipts

          5. 242.Explanation of income tax deductions to be annexed to dividend warrants, etc

        2. Corporation tax

          1. 243.General scheme of corporation tax

          2. 244.Time for payment of corporation tax: companies trading before financial year 1965

          3. 245.Tax on company in liquidation

          4. 246.Companies not resident in United Kingdom

          5. 247.Basis of, and periods for, assessment

          6. 248.Allowance of charges on income

          7. 249.Charges on income: interest payable to non-residents

          8. 250.Computation of income: application of income tax principles

          9. 251.Computation of income: special rules

          10. 252.Company reconstructions without change of ownership

          11. 253.Company reconstructions: supplemental

        3. Franked investment income

          1. 254.Set-off of losses etc. against surplus of franked investment income

          2. 255.Set-off of loss brought forward, or terminal loss

        4. Group income

          1. 256.Group income, etc

          2. 257.Election for group income, etc

        5. Group relief

          1. 258.Group relief

          2. 259.Kinds of group relief

          3. 260.Relation of group relief to other relief

          4. 261.Corresponding accounting periods

          5. 262.Companies joining or leaving group or consortium

          6. 263.Exclusion of double allowances, etc

          7. 264.Claims and adjustments

      2. CHAPTER II Companies' Capital Gains

        1. General provisions

          1. 265.Computation of chargeable gains

          2. 266.Corporation tax attributable to chargeable gains: recovery from shareholder

          3. 267.Company reconstruction or amalgamation: transfer of assets

          4. 268.Postponement of charge on transfer of assets to nonresident company

          5. 269.Interest charged to capital

        2. Gilt-edged securities: restrictions on exemptions

          1. 270.Charge to tax on certain disposals of United Kingdom securities

          2. 271.Charge to tax on certain disposals of Guaranteed Stock issued at a discount

        3. Groups of companies

          1. 272.Groups of companies: definitions

          2. 273.Transfers within a group

          3. 274.Transfers within a group: trading stock

          4. 275.Disposal or acquisition outside a group

          5. 276.Replacement of business assets by members of a group

          6. 277.Tax on company recoverable from other members of group

          7. 278.Company ceasing to be member of a group

          8. 279.Shares in subsidiary member of a group

        4. Losses attributable to depreciatory transactions

          1. 280.Transactions in a group

          2. 281.Dividend stripping

      3. CHAPTER III Close Companies

        1. Meaning of close company

          1. 282.Meaning of close company

          2. 283.Certain companies with quoted shares not to be close companies

        2. Additional matters to be treated as distributions

          1. 284.Payments etc. to participators and associates

          2. 285.Interest paid to directors and directors' associates

        3. Charges to tax in connection with loans and covenants

          1. 286.Loans to participators etc

          2. 287.Effect of release, etc., of debt in respect of loan under s. 286

          3. 288.Covenants by participators

        4. Charges to tax in respect of shortfall

          1. 289.Shortfall in distributions

          2. 290.Determination of shortfall: required standard

          3. 291.Distributions to be taken into account, and meaning of " distributable income " etc

          4. 292.Meaning of "trading company" and "member of a trading group"

          5. 293.Requirements of the company's business

          6. 294.Cessations and liquidations

          7. 295.The shortfall charge: protection by transmission of accounts

        5. Surtax apportionments

          1. 296.Apportionment for surtax of close company's income

          2. 297.Consequences of apportionment under s. 296

          3. 298.Apportionment of income of non-trading companies

          4. 299.Supplementary provisions as to apportionment of income of non-trading companies

          5. 300.Apportionment of interest paid by certain non-trading companies

        6. Information

          1. 301.Powers of Board and inspectors to obtain information

        7. General definitions

          1. 302.Meaning of " associated company " and " control "

          2. 303.Meaning of "participator", "associate", "director" and "loan creditor"

    12. PART XII Special Classes of Companies and Businesses

      1. CHAPTER I Investment and Insurance Companies: Expenses of Management and Capital Allowances

        1. 304.Expenses of management of investment companies (including savings banks)

        2. 305.Expenses of management of insurance companies

        3. 306.Capital allowances for machinery and plant

      2. CHAPTER II Insurance Companies, etc

        1. Insurance Companies

          1. 307.Separation of different classes of business

          2. 308.Case I computation: investment income, etc

          3. 309.Case I computation: profits reserved for policy holders and annuitants

          4. 310.Rate relief: investment income reserved for policy holders

          5. 311.Rate relief: chargeable gains reserved for policy holders

          6. 312.Annuity business: separate charge on profits

          7. 313.General annuity business

          8. 314.Pension annuity business

          9. 315.Foreign life assurance funds

          10. 316.Overseas life insurance companies: charge on investment income

          11. 317.Management expenses of overseas life insurance companies

          12. 318.Overseas life insurance companies: annuity business

          13. 319.Set-off of income tax against corporation tax by overseas life insurance companies

          14. 320.Overseas life insurance companies: double taxation agreements

          15. 321.Life policies carrying rights not in money

          16. 322.Benefits from life policies issued before 5th August 1965: deduction for tax on chargeable gains

          17. 323.Interpretation

        2. Capital redemption business

          1. 324.Capital redemption business

        3. Dealers in securities: conversions

          1. 325.3J per cent. war loan

          2. 326.Exchange of securities in connection with conversion operations, nationalisation, etc

          3. 327.Other provisions as to issues of securities in connection with nationalisation, etc

        4. Non-resident banks, insurance companies and dealers in securities

          1. 328.Treatment of tax-free income

          2. 329.Tax-free Treasury securities: exclusion of interest on borrowed money

        5. Underwriters

          1. 330.Underwriters

      3. CHAPTER III Friendly Societies and Trade Unions

        1. Unregistered friendly societies

          1. 331.Unregistered friendly societies

        2. Registered friendly societies

          1. 332.Registered friendly societies

          2. 333.Life or endowment business: distinction between old and new societies

          3. 334.Conditions for tax exempt business

          4. 335.Life or endowment business: further provisions

          5. 336.Saving for contracts made not later than 3rd May 1966

          6. 337.Interpretation

        3. Trade unions

          1. 338.Exemption for trade unions

      4. CHAPTER IV Savings Banks, Industrial and Provident Societies, Building Societies and Mutual Business

        1. 339.Savings banks

        2. 340.Industrial and provident societies, etc

        3. 341.Co-operative housing associations

        4. 342.Disposals of land between the Housing Corporation and housing societies

        5. 343.Building societies

        6. 344.Building societies: time for payment of corporation tax

        7. 345.Companies trading with their members, and certain industrial and provident societies

        8. 346.Companies carrying on mutual business, or not carrying on a business

        9. 347.Distribution of assets of body corporate carrying on mutual business

      5. CHAPTER V Statutory Bodies

        1. 348.Reserves of marketing boards

        2. 349.Electricity Council and Boards

        3. 350.Gas Council and Area Boards

        4. 351.Atomic Energy Authority and National Radiological Protection Board

        5. 352.Harbour reorganisation schemes

        6. 353.Local authorities

      6. CHAPTER VI Unit Trusts and Investment Trusts

        1. Unit trusts

          1. 354.Authorised unit trusts

          2. 355.Cancellation and creation of units

        2. Unit trusts and investment trusts

          1. 356.Rate of tax on chargeable gains

          2. 357.Apportionment of chargeable gains

        3. Interpretation

          1. 358.Definitions of authorised unit trust and unit holder

          2. 359.Definition of investment trust

    13. PART XIII Special Exemptions

      1. 360.Charities

      2. 361.Agricultural societies

      3. 362.Scientific research associations

      4. 363.British Museum

      5. 364.Funds for reducing National Debt

      6. Armed forces and Victoria Cross and other awards

        1. 365.Wounds and disability pensions

        2. 366.Allowances, bounties and gratuities

        3. 367.Visiting forces

        4. 368.Victoria Cross and other awards

      7. Crown servants

        1. 369.Foreign service allowance

      8. Central banks

        1. 370.Government securities held by non-resident central banks

        2. 371.Issue departments of Reserve Bank of India and State Bank of Pakistan

      9. Commonwealth and foreign representatives

        1. 372.Commonwealth Agents-General and official agents, etc

        2. 373.Consuls and other official agents

        3. 374.Consular officers and employees

      10. Other exemptions

        1. 375.Scholarship income

        2. 376.Housing grants

        3. 377.Compensation for National-Socialist persecution

    14. PART XIV Miscellaneous Special Provisions

      1. CHAPTER I Patents and Know-How

        1. Patents

          1. 378.Writing-down allowances for capital expenditure on purchase of patent rights

          2. 379.Effect of lapses of patent rights, sales, etc

          3. 380.Taxation as income of capital sums received for sale of patent rights

          4. 381.Capital sums: death, winding-up or partnership change

          5. 382.Relief for expenses

          6. 383.Patent income to be earned income in certain cases

          7. 384.Spreading of patent royalties over several years

          8. 385.Manner of making allowances and charges

        2. Know-how (income tax, corporation tax and capital gains tax)

          1. 386.Dealings in know-how

        3. Supplemental

          1. 387.Application of Capital Allowances Act 1968

          2. 388.Interpretation of provisions about patents

      2. CHAPTER II Copyright and Artists' Receipts

        1. Copyright

          1. 389.Relief for copyright payments

          2. 390.Relief where copyright sold after ten years or more

          3. 391.Taxation of copyright royalties where owner's usual place of abode is abroad

        2. Artists' receipts

          1. 392.Relief for painters, sculptors and other artists

      3. CHAPTER III Life Policies, Life Annuities and Capital Redemption Policies

        1. 393.Introductory

        2. 394.Life policies: chargeable event

        3. 395.Life policies: computation of gain

        4. 396.Life annuity contracts: chargeable event

        5. 397.Life annuity contracts: computation of gain

        6. 398.Capital redemption policies

        7. 399.Method of charging gain to tax

        8. 400.Relief where gain charged directly to surtax

        9. 401.Right of individual to recover tax from trustees

        10. 402.Information: duty of insurers

      4. CHAPTER IV Insurance: Borrowing to Pay Premiums and Borrowing Against Life Policies

        1. 403.Interest on loans used for payment of premiums, etc.: disallowance as deduction for surtax

        2. 404.Exceptions from disallowance for surtax

        3. 405.Borrowings against life policies to be treated as income in certain cases

      5. CHAPTER V Schemes for Rationalizing Industry

        1. 406.Deduction from profits of contributions paid under certified schemes

        2. 407.Repayment of contributions

        3. 408.Payments under certified schemes which are not repayments of contributions

        4. 409.Cancellation of certificates of Board of Trade

        5. 410.Application to statutory redundancy schemes

      6. CHAPTER VI Other Provisions

        1. 411.Business entertaining expenses

        2. 412.Statutory redundancy payments

        3. 413.Funds in court

        4. 414.Relief from income tax on certain savings bank interest

        5. 415.Contractual savings schemes: income tax and capital gains tax

        6. 416.Local authority borrowing in foreign currency

        7. 417.Funding bonds issued in respect of interest on certain debts

        8. Unremittable overseas income

          1. 418.Relief for unremittable income

          2. 419.Relief from tax on delayed remittances

        9. War risks and war injuries

          1. 420.Disallowance of deductions for war risk premiums

          2. 421.Disallowance of certain payments in respect of war injuries to employees

        10. Pre-war provisions for tax free annuities, salaries, pensions, etc. Section

          1. 422.Modification of pre-war provisions for tax free annuities, etc

          2. 423.Modification of pre-war provisions for tax free salaries, pensions, etc

          3. 424.Interpretation of last two preceding sections

        11. Arrangements for payment of interest less tax or of fixed net amount

          1. 425.Application to interest payable without deduction of tax

    15. PART XV Estates of Deceased Persons in Course of Administration

      1. 426.Limited interests in residue

      2. 427.Absolute interests in residue

      3. 428.Supplementary provisions as to absolute interests in residue

      4. 429.Special provisions as to certain interests in residue

      5. 430.Relief from surtax for estate duty on accrued income

      6. 431.Adjustments and information

      7. 432.Interpretation

      8. 433.Application to Scotland

    16. PART XVI Settlements

      1. CHAPTER I Dispositions for Short Periods

        1. 434.Disposition for period which cannot exceed six years

        2. 435.Adjustments between disponor and trustees

        3. 436.Application of Chapter I to dispositions where there is more than one disponor

      2. CHAPTER II Settlements on Children

        1. 437.The general rule

        2. 438.Accumulation settlements

        3. 439.Meaning of "irrevocable"

        4. 440.Interest paid by trustees

        5. 441.Adjustments between disponor and trustees

        6. 442.Application of Chapter II to settlements with more than one settlor

        7. 443.Power to obtain information under Chapter II

        8. 444.Interpretation of Chapter II

      3. CHAPTER III Revocable Settlements, etc

        1. 445.Revocable settlements allowing release of obligation

        2. 446.Revocable settlements allowing reversion of property

        3. 447.Settlements where settlor retains an interest

        4. 448.Settlements: discretionary power for benefit of settlor, etc

        5. 449.Provisions supplemental to preceding provisions of Chapter III

        6. 450.Disallowance of deduction from total income of certain sums paid by settlor

        7. 451.Sums paid to settlor otherwise than as income

        8. 452.Application of Chapter III to settlements where there is more than one settlor

        9. 453.Power to obtain information for purposes of Chapter III

        10. 454.Interpretation of Chapter III

        11. 455.Ascertainment of undistributed income

        12. 456.Ascertainment of undistributed income: interest paid by trustees

      4. CHAPTER IV Surtax Liability of Settlors in Certain Cases

        1. 457.Settlements made on or after 7th April 1965

        2. 458.Settlements made before 7th April 1965, but on or after 10th April 1946

        3. 459.Supplemental provisions for Chapter IV

    17. PART XVII Tax Avoidance

      1. CHAPTER I Cancellation of Tax Advantages from certain Transactions in Securities

        1. 460.Cancellation of tax advantage

        2. 461.The prescribed circumstances

        3. 462.Appeal against Board's notice

        4. 463.The tribunal

        5. 464.Procedure for clearance in advance

        6. 465.Power to obtain information

        7. 466.Meaning of " tax advantage "

        8. 467.Further interpretation

        9. 468.Commencement and other transitory provisions

      2. CHAPTER II Other Provisions about Securities

        1. 469.Sale and repurchase of securities

        2. 470.Transfers of income arising from securities

        3. Purchase and sale of securities

          1. 471.Application of following sections

          2. 472.Dealers in securities

          3. 473.Persons entitled to exemptions

          4. 474.Persons other than dealers in securities

          5. 475.Meaning of " appropriate amount in respect of" interest

        4. Miscellaneous

          1. 476.Company dealing in securities: distribution materially reducing value of holding

          2. 477.Manufactured dividends: treatment of tax deducted

      3. CHAPTER III Transfer of Assets Abroad

        1. 478.Provisions for preventing avoidance of income tax by transactions resulting in the transfer of income to persons abroad

        2. 479.Persons resident in Republic of Ireland: application of Chapter III to premiums on leases, etc

        3. 480.Supplemental provisions

        4. 481.Power to obtain information

      4. CHAPTER IV Miscellaneous

        1. Companies

          1. 482.Migration, etc., of companies

          2. 483.Change in ownership of company: disallowance of trading losses

          3. 484.Rules for ascertaining change in ownership of company

        2. Transactions between associated persons

          1. 485.Sales, etc., at undervalue or overvalue

          2. 486.Transactions between dealing company and associated company

        3. Other provisions

          1. 487.Sale by individual of income derived from his personal activities

          2. 488.Artificial transactions in land

          3. 489.Sale of income and land transactions (sections 487 and 488): supplemental

          4. 490.Sale of income and land transactions (sections 487 and 488): power to obtain information

          5. 491.Land sold and leased back: limitation on tax reliefs

          6. 492.Assets leased to traders and others

          7. 493.Leased assets: special cases

          8. 494.Leased assets: supplemental

          9. 495.Leased assets subject to hire-purchase agreements

          10. 496.Transactions associated with loans or credit

    18. PART XVIII Double Taxation Relief

      1. CHAPTER I The Principal Reliefs

        1. 497.Relief by agreement with other countries

        2. 498.Unilateral relief

        3. 499.Application to corporation tax on chargeable gains

      2. CHAPTER II Rules Governing Relief By Way Of Credit

        1. General

          1. 500.Interpretation of credit code

          2. 501.Relief to be given by reducing U.K. taxes by amount of credit due

          3. 502.Requirement as to residence

          4. 503.Computation, for purposes of U.K. taxes, of income subject to foreign tax

          5. 504.Limits on credit: income tax

          6. 505.Limit on credit: corporation tax

        2. Underlying tax on dividends

          1. 506.Computation of underlying tax

          2. 507.Extension of relief to certain dividends not covered by arrangements where paid between related companies

          3. 508.Extension of relief to U.K. and third country taxes where dividends paid between related companies

          4. 509.U.K. insurance companies trading overseas

        3. Miscellaneous rules

          1. 510.Relief against income tax in respect of income arising in years of commencement

          2. 511.Elections against credit

          3. 512.Time limit for claims etc

      3. CHAPTER III Other Provisions

        1. 513.Relief under agreements with Republic of Ireland

        2. 514.Relief under agreements about shipping, air transport and agency profits

        3. 515.Postponement of capital allowances to secure double taxation relief

        4. 516.Deduction for foreign tax where no credit allowable

        5. 517.Power to make regulations for carrying out s. 497

        6. 518.Disclosure of information

    19. PART XIX Supplemental

      1. 519.Deductions not to be allowed in computing profits or gains

      2. Income tax provisions

        1. 520.Application of Income Tax Acts from year to year

        2. 521.Under-deductions from payments made before passing of annual Act

        3. 522.Over-deductions from interest on loan capital or preference dividends made before passing of annual Act

        4. 523.Adjustment of reliefs where reliefs not all given at the same time

        5. 524.Application of Income Tax Acts to public departments

        6. 525.No exemption from tax under letters patent or statutes

      3. Interpretation

        1. 526.Definitions for income tax and corporation tax

        2. 527.Interpretation of Corporation Tax Acts

        3. 528."Total income" in Income Tax Acts

        4. 529."Highest part of income": effect of top-slicing relief

        5. 530."Earned income" in Income Tax Acts

        6. 531."Annual value" of land

        7. 532.Subsidiaries

        8. 533.Connected persons

        9. 534.Meaning of "control" in certain contexts

        10. 535."Recognised stock exchange"

    20. PART XX General

      1. 536.Commencement

      2. 537.Savings, transitory provisions and consequential amendments

      3. 538.Repeals

      4. 539.Continuity and construction of references to old and new law

      5. 540.Short title and construction

    1. Schedule 1

      Life policies: qualification for relief on premiums

    2. Schedule 2

      Restrictions on Schedule A deductions

    3. Schedule 3

      Premiums etc. taxable under Schedules A and D: special relief for individuals

    4. Schedule 4

      Schedules A and D: allowances for betterment levy

    5. Schedule 5

      Machinery for assessment, charge and payment of income tax under Schedule C, and, in certain cases, Schedule D

    6. Schedule 6

      Schedule D, Case I: treatment of farm, etc. animals

    7. Schedule 7

      Schedule D, Case VII: miscellaneous rules

    8. Schedule 8

      Schedule E: relief as respects tax on payments on retirement or removal from office or employment

    9. Schedule 9

      Income tax payable by companies on distributions, etc

    10. Schedule 10


    11. Schedule 11

      Tax reliefs in connection with redundancy schemes

    12. Schedule 12

      Double taxation relief: Republic of Ireland

    13. Schedule 13

      Returns of total income

    14. Schedule 14

      Savings and transitory provisions

    15. Schedule 15

      Consequential amendments

    16. Schedule 16


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