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Income and Corporation Taxes Act 1988

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Income and Corporation Taxes Act 1988 is up to date with all changes known to be in force on or before 08 December 2019. There are changes that may be brought into force at a future date. Help about Changes to Legislation

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Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the affected provisions when you open the content using the Table of Contents below.

  1. Introductory Text

  2. PART I THE CHARGE TO TAX

    1. Income tax

      1. 1. The charge to income tax.

      2. 1A. Application of lower rate to income from savings and distributions.

      3. 1B. Rates of tax applicable to distribution income etc.

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

      5. 3. Certain income charged at basic rate.

      6. 4. Construction of references in Income Tax Acts to deduction of tax.

      7. 5. Date for payment.

    2. Corporation tax

      1. 6. The charge to corporation tax and exclusion of income tax and capital gains tax.

      2. 7. Treatment of certain payments and repayment of income tax.

      3. 8. General scheme of corporation tax.

      4. 8A. Resolutions to reduce corporation tax.

      5. 9. Computation of income: application of income tax principles.

      6. 10. Time for payment of tax.

      7. 11. Companies not resident in United Kingdom.

      8. 11AA.Determination of profits attributable to permanent establishment

      9. 12. Basis of, and periods for, assessment.

    3. Small companies’ rate

      1. 13. Small companies’ relief.

      2. 13ZA. Interpretation of section 13(7)

      3. 13AA. Corporation tax starting rate.

      4. 13AB.The non-corporate distribution rate

      5. 13A. Close investment-holding companies.

    4. Advance corporation tax

      1. 14. Advance corporation tax and qualifying distributions.

    5. The six Schedules

      1. 15. Schedule A.

      2. 16. Schedule B.

      3. 17. Schedule C.

      4. 18. Schedule D.

      5. 19. Schedule E.

      6. 20. Schedule F.

  3. PART II PROVISIONS RELATING TO THE SCHEDULE A CHARGE

    1. General

      1. 21. Persons chargeable and basis of assessment.

      2. 21A. Computation of amount chargeable.

      3. 21B. Application of other rules applicable to Case I of Schedule D.

      4. 21C. The Schedule A charge and mutual business.

      5. 22. Assessments.

      6. 23. Collection from lessees and agents.

      7. 24. Construction of Part II.

    2. Deductions and other allowances

      1. 25. Deductions from rent: general rules.

      2. 26. Deductions from rent: land managed as one estate.

      3. 27. Deductions from rent: maintenance funds for historic buildings.

      4. 28. Deductions from receipts other than rent.

      5. 29. Sporting rights.

      6. 30. Expenditure on making sea walls.

      7. 31. Provisions supplementary to sections 25 to 30.

      8. 31ZA.Deduction for expenditure on energy-saving items

      9. 31ZB.Restrictions on relief

      10. 31ZC.Regulations

      11. 31A.Deductions for expenditure by landlords on energy-saving items

      12. 31B.Provisions supplementary to section 31A

      13. 32. Capital allowances for machinery and plant used in estate management.

      14. 33. Agricultural land: allowance for excess expenditure on maintenance.

    3. Connected persons

      1. 33A. Rents or receipts payable by a connected person.

      2. 33B. Rents or receipts relating to land in respect of which a connected person makes payments to a third party.

    4. Premiums, leases at undervalue etc

      1. 34.Treatment of premiums, etc. as rent.

      2. 35.Charge on assignment of lease granted at an undervalue.

      3. 36.Charge on sale of land with right to reconveyance.

      4. 37. Premiums paid etc: deductions from premiums and rent received.

      5. 37A.Section 37(4) and reductions in receipts under ITTOIA 2005

      6. 38. Rules for ascertaining duration of leases.

      7. 39. Saving for pre-1963 leases, and special relief for individuals.

    5. Supplementary provisions

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

      2. 41. Relief for rent etc. not paid.

      3. 42. Appeals against determinations under . . . Chapter 4 of Part 3 of ITTOIA 2005.

      4. 42A. Non-residents and their representatives.

      5. 43. Non-residents.

    6. Rent factoring

      1. 43A. Finance agreement: interpretation.

      2. 43B. Transfer of rent.

      3. 43C. Transfer of rent: exceptions, &c.

      4. 43D. Interposed lease.

      5. 43E. Interposed lease: exceptions, &c.

      6. 43F. Insurance business.

      7. 43G. Interpretation.

  4. PART III GOVERNMENT SECURITIES

    1. General

      1. 44. Income tax: mode of charge.

      2. 45. Interpretation of Part III.

    2. Government securities: exemptions from tax

      1. 46. Savings certificates and tax reserve certificates.

      2. 47. United Kingdom government securities held by non-residents.

      3. 48. Securities of foreign states.

      4. 49. Stock and dividends in name of Treasury etc.

    3. Government securities: interest payable without deduction of tax

      1. 50.United Kingdom securities: Treasury directions for payment without deduction of tax.

      2. 51. Treasury directions as respects Northern Ireland securities.

      3. 51AA. Commencement of direction under section 50 or 51.

      4. 51A. Gilt-edged securities held under authorised arrangements.

      5. 51B. Periodic accounting for tax on interest on gilt-edged securities.

      6. 52. Taxation of interest on converted government securities and interest which becomes subject to deduction.

  5. PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE

    1. CHAPTER I SUPPLEMENTARY CHARGING PROVISIONS

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

      2. 54. Woodlands managed on a commercial basis.

      3. 55. Mines, quarries and other concerns.

      4. 56. Transactions in deposits with and without certificates or in debts.

      5. 56A. Disposal or exercise of rights in pursuance of deposits.

      6. 57. Deep discount securities.

      7. 58. Foreign pensions.

      8. 59. Persons chargeable.

    2. CHAPTER II INCOME TAX: BASIS OF ASSESSMENT ETC.

      1. Cases I and II

        1. 60. Assessment on current year basis.

        2. 61. Basis of assessment at commencement.

        3. 62. Change of basis period.

        4. 62A. Conditions for such a change.

        5. 63. Basis of assessment on discontinuance.

        6. 63A. Overlap profits and overlap losses.

      2. Cases III, IV and V

        1. 64. Case III assessments.

        2. 65. Cases IV and V assessments: general.

        3. 65A. Case V income from land outside UK: income tax.

        4. 66. Special rules for fresh income.

        5. 67. Special rules where source of income disposed of or yield ceases.

        6. 68. Special rules where property etc. situated in Republic of Ireland.

        7. 68A.Share incentive plans: application of section 68B

        8. 68B.Share incentive plans: cash dividends and dividend shares

        9. 68C.Share incentive plans: interpretation

      3. Case VI

        1. 69. Case VI assessments.

    3. CHAPTER III CORPORATION TAX: BASIS OF ASSESSMENT ETC

      1. 70. Basis of assessment etc.

      2. 70A. Case V income from land outside UK: corporation tax.

    4. CHAPTER IV PROVISIONS SUPPLEMENTARY TO CHAPTERS II AND III

      1. 71. Computation of income tax where no profits in year of assessment.

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

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

    5. CHAPTER V COMPUTATIONAL PROVISIONS

      1. Deductions

        1. 74. General rules as to deductions not allowable.

        2. 75.Expenses of management: companies with investment business

        3. 75A.Accounting period to which expenses of management are referable

        4. 75B.Amounts reversing expenses of management deducted: charge to tax

        5. 76.Expenses of insurance companies

      2. Payments for restrictive undertakings

        1. 76ZA.Payments for restrictive undertakings

      3. Seconded employees

        1. 76ZB.Employees seconded to charities and educational establishments

      4. Counselling and retraining expenses

        1. 76ZC.Counselling and other outplacement services

        2. 76ZD.Retraining courses

        3. 76ZE.Retraining courses: recovery of tax

      5. Redundancy payments etc

        1. 76ZF.Redundancy payments and approved contractual payments

        2. 76ZG.Payments in respect of employment wholly in employer's business

        3. 76ZH.Payments in respect of employment in more than one capacity

        4. 76ZI.Additional payments

        5. 76ZJ.Payments by the Government

      6. Contributions to local enterprise organisations or urban regeneration companies

        1. 76ZK.Contributions to local enterprise organisations or urban regeneration companies

      7. Unpaid remuneration

        1. 76ZL.Unpaid remuneration

        2. 76ZM.Unpaid remuneration: supplementary

      8. Car or motor cycle hire

        1. 76ZN.Car or motor cycle hire

        2. 76ZO.Hiring cars (but not motor cycles) with low CO2 emissions before 1 April 2013

        3. 76A. Levies and repayments under the Financial Services and Markets Act 2000.

        4. 76B. Levies and repayments under the Financial Services and Markets Act 2000: investment companies.

        5. 77. Incidental costs of obtaining loan finance.

        6. 78. Discounted bills of exchange.

        7. 79. Contributions to local enterprise agencies.

        8. 79A. Contributions to training and enterprise councils and local enterprise companies.

        9. 79B.Contributions to urban regeneration companies

        10. 80. Expenses connected with foreign trades etc.

        11. 81. Travel between trades etc.

        12. 82. Interest paid to non-residents.

        13. 82A. Expenditure on research and development.

        14. 82B. Payments to research associations, universities etc.

        15. 83. Patent fees etc. and expenses.

        16. 83A. Gifts in kind to charities etc.

        17. 84. Gifts to educational establishments.

        18. 84A. Costs of establishing share option or profit sharing schemes: relief.

        19. 85. Payments to trustees of approved profit sharing schemes.

        20. 85A. Costs of establishing employee share ownership trusts: relief.

        21. 85B.Approved share incentive plans

        22. 86. Employees seconded to charities and educational establishments.

        23. 86A. Charitable donations: contributions to agent’s expenses.

        24. 87. Taxable premiums etc.

        25. 87A.Section 87(2) and (3) and reductions in receipts under ITTOIA 2005

        26. 88. Payments to Export Credit Guarantee Department.

        27. 88A. Debts of overseas governments etc.

        28. 88B. Section 88A debts: restriction on deductions under section 74(j).

        29. 88C. Section 88A debts: restriction on other deductions.

        30. 88D.Restriction of deductions in respect of certain debts

        31. 89.Debts proving to be irrecoverable after discontinuance etc

        32. 90. Additional payments to redundant employees.

        33. 91. Cemeteries.

        34. 91A. Waste disposal: restoration payments.

        35. 91B. Waste disposal: preparation expenditure.

        36. 91BA. Waste disposal: entitlement of successor to allowances.

        37. 91C. Mineral exploration and access.

      9. Treatment of regional development and other grants and debts released etc.

        1. 92. Regional development grants.

        2. 93. Other grants under Industrial Development Act 1982 etc.

        3. 94. Debts deducted and subsequently released.

        4. 95.Taxation of dealers in respect of distributions etc.

        5. 95ZA.Taxation of UK distributions received by insurance companies

      10. Special provisions

        1. 95A. Creative artists: relief for fluctuating profits

        2. 96. Farming and market gardening: relief for fluctuating profits.

        3. 97. Treatment of farm animals etc.

        4. 98. Tied premises: receipts and expenses treated as those of trade.

        5. 99. Dealers in land.

    6. CHAPTER VI DISCONTINUANCE . . .

      1. Valuation of trading stock etc.

        1. 100. Valuation of trading stock at discontinuance of trade.

        2. 101. Valuation of work in progress at discontinuance of profession or vocation.

        3. 102. Provisions supplementary to sections 100 and 101.

      2. Case VI charges on receipts

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

        2. 104. Conventional basis: general charge on receipts after discontinuance . . . .

        3. 105. Allowable deductions.

        4. 106. Application of charges where rights to payments transferred.

      3. Reliefs

        1. 107. Treatment of receipts as earned income.

        2. 108. Election for carry-back.

        3. 109. Charge under section 104: relief for individuals born before 6th April 1917.

      4. Relief for post-cessation expenditure

        1. 109A. Relief for post-cessation expenditure.

      5. Supplemental

        1. 110. Interpretation etc.

      6. Change of residence

        1. 110A. Change of residence.

    7. CHAPTER VII PARTNERSHIPS AND SUCCESSIONS

      1. General

        1. 111. Treatment of partnerships.

        2. 112. Partnerships controlled abroad.

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

      2. Partnerships involving companies

        1. 114. Special rules for computing profits and losses.

        2. 115. Provisions supplementary to section 114.

        3. 116. Arrangements for transferring relief.

      3. Limited partners

        1. 117. Restriction on relief: individuals.

        2. 118. Restriction on relief: companies.

      4. Limited liability partnerships

        1. 118ZA. Treatment of limited liability partnerships.

        2. 118ZB.Restriction on relief: companies

        3. 118ZC. Member’s contribution to trade.

        4. 118ZD. Carry forward of unrelieved losses.

      5. Non-active general partners and non-active members of limited liability partnerships

        1. 118ZE.Restriction on relief for non-active partners

        2. 118ZF.Meaning of “the aggregate amount”

        3. 118ZG.“The individual’s contribution to the trade”

        4. 118ZH.“A significant amount of time”

        5. 118ZI.Carry forward of unrelieved losses of non-active partners

        6. 18ZJ.Commencement: the first restricted year

        7. 118ZK.Transitional provision for years after the first restricted year

      6. Partnerships exploiting films

        1. 118ZL.Partnerships exploiting films

        2. 118ZM.Partnerships exploiting films: supplementary

      7. Partners: meaning of “contribution to the trade”

        1. 118ZN.Partners: meaning of “contribution to the trade”

        2. 118ZO.Meaning of “relevant loss” in section 118ZN

    8. Chapter VIIA Paying and collecting agents

      1. 118A. Definitions.

      2. 118B. Paying agents.

      3. 118C. Collecting agents.

      4. 118D. Chargeable payments and chargeable receipts.

      5. 118E. Deduction of tax from chargeable payments and chargeable receipts.

      6. 118F. Accounting for tax on chargeable payments and chargeable receipts.

      7. 118G. Relevant securities of eligible persons.

      8. 118H. Relevant securities of eligible persons: administration.

      9. 118I. Deduction of tax at reduced rate.

      10. 118J. Prevention of double accounting.

      11. 118K. Regulations.

    9. CHAPTER VIII MISCELLANEOUS AND SUPPLEMENTAL

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

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

      3. 121. Management expenses of owner of mineral rights.

      4. 122. Relief in respect of mineral royalties.

      5. 123. Foreign dividends.

      6. 124. Interest on quoted Eurobonds.

      7. 125.Annual payments for dividends or non-taxable consideration

      8. 126. Treasury securities issued at a discount.

      9. 126A. Charge to tax on appropriation of securities and bonds.

      10. 127. Enterprise allowance.

      11. 127A. Futures and options: transactions with guaranteed returns.

      12. 128. Commodity and financial futures etc.: losses and gains.

      13. 129. Stock lending.

      14. 129A. Stock lending: interest on cash collateral.

      15. 129B. Stock lending fees.

      16. 130.Meaning of “investment company” in Part 4

  6. PART V PROVISIONS RELATING TO THE SCHEDULE E CHARGE

    1. CHAPTER I SUPPLEMENTARY CHARGING PROVISIONS OF GENERAL APPLICATION

      1. Miscellaneous provisions

        1. 131. Chargeable emoluments.

        2. 132. Place of performance, and meaning of emoluments received in the U.K.

        3. 133. Voluntary pensions.

        4. 134. Workers supplied by agencies.

      2. Shareholdings, loans etc.

        1. 135. Gains by directors and employees from share options.

        2. 136. Provisions supplementary to section 135.

        3. 137. Payment of tax under section 135 by instalments.

        4. 138. Share acquisitions by directors and employees.

        5. 139. Provisions supplementary to section 138.

        6. 140. Further interpretation of sections 135 to 139.

        7. 140A. Conditional acquisition of shares.

        8. 140B. Consideration for shares conditionally acquired.

        9. 140C. Cases where interest to be treated as only conditional.

        10. 140D. Convertible shares.

        11. 140E. Consideration for convertible shares.

        12. 140F. Supplemental provision with respect to convertible shares.

        13. 140G. Information for the purposes of sections 140A to 140F.

        14. 140H. Construction of sections 140A to 140G.

      3. Vouchers etc.

        1. 141. Non-cash vouchers.

        2. 142. Credit-tokens.

        3. 143. Cash vouchers taxable under P.A.Y.E.

        4. 144. Supplementary provisions.

        5. 144A. Payments etc. received free of tax.

      4. Living accommodation

        1. 145. Living accommodation provided for employee.

        2. 146. Additional charge in respect of certain living accommodation.

        3. 146A. Priority of rules applying to living accommodation.

        4. 147. Occupation of Chevening House.

      5. Payments on retirement, sick pay etc.

        1. 148. Payments and other benefits in connection with termination of employment, etc.

        2. 149. Sick pay.

        3. 150. Job release scheme allowances, maternity pay and statutory sick pay.

        4. 151. Income support etc.

        5. 151A. Jobseeker’s allowance.

        6. 152.Notification of taxable amount of certain benefits.

    2. CHAPTER II EMPLOYEES EARNING £8,500 OR MORE AND DIRECTORS

      1. Expenses

        1. 153. Payments in respect of expenses.

      2. Benefits in kind

        1. 154. General charging provision.

        2. 155. Exceptions from the general charge.

        3. 155ZA. Accommodation, supplies or services used in performing duties of employment.

        4. 155ZB. Power to provide for exemption of minor benefits.

        5. 155AA. Mobile telephones.

        6. 155A. Care for children.

        7. 156. Cash equivalent of benefits charged under section 154.

        8. 156A. Limited exemption for computer equipment.

        9. 157. Cars available for private use.

        10. 157A. Cars available for private use: cash alternative, etc.

        11. 158. Car fuel.

        12. 159. Pooled cars.

        13. 159AA. Vans available for private use.

        14. 159AB. Pooled vans.

        15. 159AC. Heavier commercial vehicles available for private use.

        16. 159A. Mobile telephones.

        17. 160. Beneficial loan arrangements.

        18. 161. Exceptions from section 160.

        19. 161A. Treatment of qualifying loans.

        20. 161B. Beneficial loans: loans on ordinary commercial terms.

        21. 162. Employee shareholdings.

        22. 163. Expenses connected with living accommodation.

        23. 164. Director’s tax paid by employer.

        24. 165. Scholarships.

      3. General supplementary provisions

        1. 166. Notice of nil liability under this Chapter.

        2. 167. Employment to which this Chapter applies.

        3. 168. Other interpretative provisions.

        4. 168A. Price of a car as regards a year.

        5. 168AA. Equipment to enable disabled person to use car.

        6. 168AB. Equipment etc. to enable car to run on road fuel gas.

        7. 168B. Price of a car: accessories not included in list price.

        8. 168C. Price of a car: accessories available after car first made available.

        9. 168D. Price of a car: capital contributions.

        10. 168E. Price of a car: replacement accessories.

        11. 168F. Price of a car: classic cars.

        12. 168G. Price of a car: cap for expensive car.

    3. CHAPTER III PROFIT-RELATED PAY

      1. Preliminary

        1. 169. Interpretation.

        2. 170. Taxation of profit-related pay.

      2. The relief

        1. 171. Relief from tax.

        2. 172. Exceptions from tax.

      3. Registration

        1. 173. Persons who may apply for registration.

        2. 174. Excluded employments.

        3. 175. Applications for registration.

        4. 176. Registration.

        5. 177. Change of scheme employer.

        6. 177A. Death of scheme employer.

        7. 177B. Alteration of scheme’s terms.

        8. 178. Cancellation of registration.

      4. Administration

        1. 179. Recovery of tax from scheme employer.

        2. 180. Annual returns etc.

        3. 181. Other information.

        4. 182. Appeals.

      5. Supplementary

        1. 183. Partnerships.

        2. 184. Independent accountants.

    4. CHAPTER IV OTHER EXEMPTIONS AND RELIEFS

      1. Share option and profit sharing schemes

        1. 185. Approved share option schemes.

        2. 186. Approved profit sharing schemes.

        3. 187. Interpretation of sections 185 and 186 and Schedules 9 and 10.

      2. Contributions in respect of share option gains

        1. 187A. Relief for contributions in respect of share option gains.

      3. Retirement benefits etc.

        1. 188. Exemptions from section 148.

        2. 189. Lump sum benefits on retirement.

        3. 190.Payments to MPs and others.

        4. 191. Job release scheme allowances not to be treated as income.

      4. Removal expenses and benefits

        1. 191A. Removal expenses and benefits.

        2. 191B. Removal benefits: beneficial loan arrangements.

      5. Foreign emoluments and earnings, pensions and certain travel facilities

        1. 192. Relief from tax for foreign emoluments.

        2. 192A. Foreign earnings deduction for seafarers.

        3. 193. Foreign earnings and travel expenses.

        4. 194. Other foreign travel expenses.

        5. 195. Travel expenses of employees not domiciled in the United Kingdom.

        6. 196. Foreign pensions.

        7. 197. Leave travel facilities for the armed forces.

        8. 197A. Car parking facilities

        9. 197AA. Works bus services.

        10. 197AB. Support for public transport road services.

        11. 197AC. Provision of cycle or cyclist’s safety equipment.

      6. Mileage allowances

        1. 197AD. Mileage allowance payments

        2. 197AE. Passenger payments

        3. 197AF. Mileage allowance relief

        4. 197AG. Giving effect to mileage allowance relief

        5. 197AH. Interpretation of sections 197AD to 197AG

      7. Mileage allowances

        1. 197B. Limit on chargeable mileage profit.

        2. 197C. Definition of mileage profit.

        3. 197D. Definition of taxed mileage profit.

        4. 197E. Exception from section 197B.

        5. 197F. Other interpretative provisions.

      8. Sporting and recreational facilities

        1. 197G.Sporting and recreational facilities.

      9. Other expenses, subscriptions etc.

        1. 198. Relief for necessary expenses.

        2. 198A. Interpretation of section 198.

        3. 199. Expenses necessarily incurred and defrayed from official emoluments.

        4. 200. Expenses of Members of Parliament.

        5. 200ZA. Expenses of members of Scottish Parliament, National Assembly for Wales or Northern Ireland Assembly.

        6. 200AA. Incidental benefits for holders of certain offices etc.

        7. 200A. Incidental overnight expenses.

        8. 200B. Work-related training provided by employers.

        9. 200C. Expenditure excluded from section 200B.

        10. 200D. Other work-related training.

        11. 200E. Education and training funded by employers.

        12. 200F. Section 200E: exclusion of expenditure not directly related to training.

        13. 200G. Section 200E: exclusion of expenditure if contributions not generally available to staff.

        14. 200H. Section 200E: exclusion of expenditure otherwise relieved.

        15. 200J. Education or training funded by third parties.

        16. 201. Fees and subscriptions to professional bodies, learned societies etc.

        17. 201AA. Employee liabilities and indemnity insurance.

        18. 201A. Expense of entertainers.

        19. 202. Donations to charity: payroll deduction scheme.

    5. CHAPTER V ASSESSMENT, COLLECTION, RECOVERY AND APPEALS

      1. 202A. Assessment on receipts basis.

      2. 202B. Receipts basis: meaning of receipt.

      3. 203. Pay as you earn.

      4. 203A. P.A.Y.E.: meaning of payment.

      5. 203B. PAYE: payment by intermediary.

      6. 203C. PAYE: employee of non-UK employer.

      7. 203D. PAYE: employee non-resident, etc.

      8. 203E. PAYE: mobile UK workforce.

      9. 203F. PAYE: tradeable assets.

      10. 203FA. PAYE: enhancing the value of an asset.

      11. 203FB. PAYE: gains from share options etc.

      12. 203G. PAYE: non-cash vouchers.

      13. 203H. PAYE: credit-tokens.

      14. 203I. PAYE: cash vouchers.

      15. 203J. S.203B to s.203I: accounting for tax.

      16. 203K. Trading arrangements.

      17. 203L. S.203B to s.203K: interpretation, etc.

      18. 204. P.A.Y.E repayments.

      19. 205. Assessments unnecessary in certain circumstances.

      20. 206. Additional provision for certain assessments.

      21. 206A. PAYE settlement agreements.

      22. 207. Disputes as to domicile or ordinary residence.

  7. PART VI COMPANY DISTRIBUTIONS, TAX CREDITS ETC

    1. CHAPTER I TAXATION OF COMPANY DISTRIBUTIONS

      1. 207A. Application of lower rate to company distributions.

      2. 208. U.K. company distributions not generally chargeable to corporation tax.

    2. CHAPTER II MATTERS WHICH ARE DISTRIBUTIONS FOR THE PURPOSES OF THE CORPORATION TAX ACTS

      1. 209. Meaning of “distribution”.

      2. 209A. Section 209(3AA): link to shares of company or associated company

      3. 209B. Section 209(3AA): hedging arrangements

      4. 210. Bonus issue following repayment of share capital.

      5. 211. Matters to be treated or not to be treated as repayments of share capital.

    3. CHAPTER III MATTERS WHICH ARE NOT DISTRIBUTIONS FOR THE PURPOSES OF THE CORPORATION TAX ACTS

      1. Payments of interest

        1. 212. Interest etc. paid in respect of certain securities.

      2. Demergers

        1. 213. Exempt distributions.

        2. 213A.Exempt distributions: division of business

        3. 214. Chargeable payments connected with exempt distributions.

        4. 215. Advance clearance by Board of distributions and payments.

        5. 216. Returns.

        6. 217. Information.

        7. 218. Interpretation of sections 213 to 217.

      3. Purchase of own shares

        1. 219. Purchase by unquoted trading company of own shares.

        2. 220. Conditions as to residence and period of ownership.

        3. 221. Reduction of vendor’s interest as shareholder.

        4. 222. Conditions applicable where purchasing company is member of group.

        5. 223. Other conditions.

        6. 224. Relaxation of conditions in certain cases.

        7. 225. Advance clearance of payments by Board.

        8. 226. Returns and information.

        9. 227. Associated persons.

        10. 228. Connected persons.

        11. 229. Other interpretative provisions.

      4. Stock dividends

        1. 230. Stock dividends: distributions.

      5. Industrial and provident society dividends etc

        1. 230A.Dividend or bonus granted by industrial and provident society

    4. CHAPTER IV TAX CREDITS

      1. 231. Tax credits for certain recipients of qualifying distributions.

      2. 231A. Restrictions on the use of tax credits by pension funds.

      3. 231AA. No tax credit for borrower under stock lending arrangement or interim holder under repurchase agreement.

      4. 231AB. No tax credit for original owner under repurchase agreement in respect of certain manufactured dividends.

      5. 231B. Consequences of certain arrangements to pass on the value of a tax credit.

      6. 232. Tax credits for non-U.K. residents.

      7. 233. Taxation of certain recipients of distributions and in respect of non-qualifying distributions.

      8. 234. Information relating to distributions.

      9. 234A. Information relating to distributions: further provisions.

      10. 235. Distributions of exempt funds etc.

      11. 236. Provisions supplementary to section 235.

      12. 237. Disallowance of reliefs in respect of bonus issues.

    5. CHAPTER V ADVANCE CORPORATION TAX AND FRANKED INVESTMENT INCOME

      1. 238. Interpretation of terms and collection of ACT.

      2. 239. Set-off of ACT against liability to corporation tax.

      3. 240. Set-off of company’s surplus ACT against subsidiary’s liability to corporation tax.

      4. 241. Calculation of ACT where company receives franked investment income.

      5. 242. Set-off of losses etc. against surplus of franked investment income.

      6. 243. Set-off of loss brought forward, or terminal loss.

      7. 244. Further provisions relating to claims under section 242 or 243.

      8. 245. Calculation etc. of ACT on change of ownership of company.

      9. 245A. Restriction on application of section 240 in certain circumstances.

      10. 245B. Restriction on set-off where asset transferred after change in ownership of company.

      11. 246. Charge of ACT at previous rate until new rate fixed, and changes of rate.

    6. Chapter VA Foreign Income Dividends

      1. Election by company paying dividend

        1. 246A. Election by company paying dividend.

        2. 246B. Procedure for making election.

      2. Recipient of foreign income dividend

        1. 246C. No tax credit for recipient.

        2. 246D. Individuals etc.

      3. Companies: payments and receipts

        1. 246E. Foreign income dividend not franked payment.

        2. 246F. Calculation of ACT where company receives foreign income dividend.

        3. 246G. Information relating to foreign income dividends.

        4. 246H. Power of inspector to require information.

      4. Foreign source profit and distributable foreign profit

        1. 246I. Foreign source profit and distributable foreign profit.

      5. Matching of dividend with distributable foreign profit

        1. 246J. Matching of dividend with distributable foreign profit.

        2. 246K. Matching: subsidiaries.

        3. 246L. Requirement as to subsidiaries.

        4. 246M. Matching: further provisions.

      6. Repayment or set-off of advance corporation tax

        1. 246N. ACT to be repaid or set off against corporation tax liability.

        2. 246P. Notional foreign source advance corporation tax.

        3. 246Q. Repayment or set-off: supplementary.

        4. 246R. Supplementary claims.

      7. International headquarters companies

        1. 246S. International headquarters companies.

        2. 246T. Liability to pay ACT displaced.

        3. 246U. Settlement of liability by IHC as to ACT.

        4. 246V. Settlement of liability by non-IHC as to ACT.

        5. 246W. Payments and repayments where further matching takes place.

      8. Adjustments

        1. 246X. Adjustments where profits or foreign tax altered.

      9. Application of this Chapter

        1. 246Y. Application of this Chapter.

    7. CHAPTER VI MISCELLANEOUS AND SUPPLEMENTAL

      1. Group income

        1. 247. Dividends etc. paid by one member of a group to another.

        2. 248. Provisions supplementary to section 247.

      2. Stock dividends

        1. 249. Stock dividends treated as income.

        2. 250. Returns.

        3. 251. Interpretation of sections 249 and 250.

      3. Approved share incentive plans

        1. 251A.Application of sections 251B and 251C

        2. 251B.Treatment of cash dividend retained and then later paid out

        3. 251C.Charge on dividend shares ceasing to be subject to plan

        4. 251D.Interpretation of sections 251A to 251C

      4. Supplemental

        1. 252.—. Rectification of excessive set-off etc. of ACT or tax credit.

        2. 253. Power to modify or replace section 234(5) to (9) and Schedule 13.

        3. 254. Interpretation of Part VI.

        4. 255.“Gross rate” and “gross amount” of distributions to include ACT.

  8. PART VII GENERAL PROVISIONS RELATING TO TAXATION OF INCOME OF INDIVIDUALS

    1. CHAPTER I PERSONAL RELIEFS

      1. The reliefs

        1. 256. General.

        2. 256A.Meaning of “adjusted net income”

        3. 256B.Meaning of “the minimum amount”

        4. 257. Personal allowance.

        5. 257AA. Children’s tax credit.

        6. 257A. Married couple’s allowance.

        7. 257AB.Married couple's allowance (post-5th December 2005 marriages and civil partnerships etc.)

        8. 257BA. Elections as to transfer of relief under section 257A or 257AB.

        9. 257BB. Transfer of relief under section 257A where relief exceeds income or 257AB.

        10. 257B. Transfer of relief under section 257A.

        11. 257C. Indexation of amounts in sections 256B, 257, 257A and 257AB.

        12. 257D. Transitional relief: husband with excess allowances.

        13. 257E. Transitional relief: the elderly.

        14. 257F. Transitional relief: separated couples.

        15. 258. Widower’s or widow’s housekeeper.

        16. 259. Additional relief in respect of children.

        17. 260. Apportionment of relief under section 259.

        18. 261. Claims under section 259 for year of marriage.

        19. 261A. Additional relief in respect of children for year of separation.

        20. 262. Widow’s bereavement allowance.

        21. 263. Dependent relatives.

        22. 264. Claimant depending on services of a son or daughter.

        23. 265. Blind person’s allowance.

        24. 266. Life assurance premiums.

        25. 266A.Life assurance premiums paid by employer

        26. 267. Qualifying policies.

        27. 268. Early conversion or surrender of life policies.

        28. 269. Surrender etc. of policies after four years.

        29. 270. Provisions supplementary to sections 268 and 269.

        30. 271. Deemed surrender in cases of certain loans.

        31. 272. Collection of sums payable under sections 268 and 269.

        32. 273. Payments securing annuities.

        33. 274. Limits on relief under section 266.

      2. Supplemental

        1. 275. Meaning of “relative”.

        2. 276. Effect on relief of charges on income.

        3. 277. Partners.

        4. 278. Non-residents.

    2. CHAPTER II TAXATION OF INCOME OF SPOUSES AND CIVIL PARTNERS

      1. General rules

        1. 279. Aggregation of wife’s income with husband’s.

        2. 280. Transfer of reliefs.

        3. 281. Tax repayments to wives.

        4. 282. Construction of references to spouses or civil partners living together.

        5. 282A. Jointly held property.

        6. 282B. Jointly held property: declarations.

      2. Separate assessments

        1. 283. Option for separate assessment.

        2. 284. Effect of separate assessment on personal reliefs.

        3. 285. Collection from wife of tax assessed on husband but attributable to her income.

        4. 286. Right of husband to disclaim liability for tax on deceased wife’s income.

      3. Separate taxation

        1. 287. Separate taxation of wife’s earnings.

        2. 288. Elections under section 287.

    3. CHAPTER III ENTERPRISE INVESTMENT SCHEME

      1. 289. Eligibility for relief.

      2. 289A. Form of relief.

      3. 289B. Attribution of relief to shares.

      4. 290. Minimum and maximum subscriptions.

      5. 290A. Restriction of relief where amounts raised exceed permitted maximum.

      6. 291. Individuals qualifying for relief.

      7. 291A. Connected persons: directors.

      8. 291B. Connected persons: persons interested in capital etc. of company.

      9. 292. Parallel trades.

      10. 293. Qualifying companies.

      11. 294. Companies with interests in land.

      12. 295. Valuation of interests in land for purposes of section 294(1)(b).

      13. 296. Section 294 disapplied where amounts raised total £50,000 or less.

      14. 297. Qualifying trades.

      15. 298. Provisions supplementary to sections 293 and 297.

      16. 299. Disposal of shares.

      17. 299A. Loan linked investments.

      18. 299B. Pre-arranged exits.

      19. 300. Value received from company.

      20. 300A. Receipt of replacement value

      21. 301. Provisions supplementary to section 300.

      22. 301A. Receipts of insignificant value: supplementary provision

      23. 302. Replacement capital.

      24. 303. Value received by persons other than claimants.

      25. 303AA. Insignificant repayments disregarded for purposes of s.303(1)

      26. 303A. Restriction on withdrawal of relief under section 303.

      27. 304.Spouses and civil partners.

      28. 304A. Acquisition of share capital by new company.

      29. 305. Reorganisation of share capital.

      30. 305A. Relief for loss on disposal of shares.

      31. 306. Claims.

      32. 307. Withdrawal of relief.

      33. 308. Application to subsidiaries.

      34. 309. Further provisions as to subsidiaries.

      35. 310. Information.

      36. 311. Nominees, bare trustees and approved investment funds.

      37. 312. Interpretation of Chapter III.

    4. CHAPTER IV SPECIAL PROVISIONS

      1. 313. Taxation of consideration for certain restrictive undertakings.

      2. 314. Divers and diving supervisors.

      3. 315. Wounds and disability pensions.

      4. 316. Allowances, bounties and gratuities.

      5. 317. Victoria Cross and other awards.

      6. 318. Other pensions in respect of death due to war service etc.

      7. 319. Crown servants: foreign service allowance.

      8. 320. Commonwealth Agents-General and official agents etc.

      9. 321. Consuls and other official agents.

      10. 322. Consular officers and employees.

      11. 323. Visiting forces.

      12. 324. Designated international organisations.

      13. 325. Interest on deposits with National Savings Bank.

      14. 326. Interest etc. under contractual savings schemes.

      15. 326A. Tax-exempt special savings accounts.

      16. 326B. Loss of exemption for special savings accounts.

      17. 326BB. Follow-up TESSAs.

      18. 326C. Tax-exempt special savings accounts: supplementary.

      19. 326D. Tax-exempt special savings accounts: tax representatives.

      20. 327. Disabled person’s vehicle maintenance grant.

      21. 327A.Payments to adopters

      22. 328. Funds in court.

      23. 329. Interest on damages for personal injuries.

      24. 329AA. Personal injury damages in the form of periodical payments.

      25. 329AB. Compensation for personal injury under statutory or other schemes.

      26. 329A. Annuities purchased for certain persons.

      27. 329B. Annuities assigned in favour of certain persons.

      28. 329C. Annuities: criminal injuries.

      29. 330. Compensation for National-Socialist persecution.

      30. 331. Scholarship income.

      31. 331A. Student loans: certain interest to be disregarded.

      32. 332. Expenditure and houses of ministers of religion.

      33. 332A. Venture capital trusts: relief.

      34. 333.Investment plan regulations

      35. 333A. Personal equity plans: tax representatives.

      36. 333B. Involvement of insurance companies with plans and accounts.

    5. CHAPTER V RESIDENCE OF INDIVIDUALS

      1. 334. Commonwealth citizens and others temporarily abroad.

      2. 335. Residence of persons working abroad.

      3. 336. Temporary residents in the United Kingdom.

  9. PART VIII TAXATION OF INCOME AND CHARGEABLE GAINS OF COMPANIES

    1. Taxation of income

      1. 337. Company beginning or ceasing to carry on trade

      2. 337A. Computation of company’s profits or income: exclusion of general deductions

      3. 338. Charges on income deducted from total profits

      4. 338A. Meaning of “charges on income"

      5. 338B. Charges on income: annuities or other annual payments

      6. 339. Charges on income: donations to charity.

      7. 339A. Maximum qualifying donations.

      8. 340. Charges on income: interest payable to non-residents.

      9. 341. Payments of interest etc. between related companies.

      10. 342. Tax on company in liquidation.

      11. 342A.Tax on companies in administration

      12. 343. Company reconstructions without a change of ownership.

      13. 343ZA.Transfers of trade to obtain balancing allowances

      14. 343A.Company reconstructions involving business of leasing plant or machinery

      15. 344. Company reconstructions: supplemental.

    2. Chargeable gains

      1. 345. Computation of chargeable gains.

      2. 346. Capital distribution of chargeable gains: recovery of tax from shareholder.

      3. 347. Tax on one member of group recoverable from another member.

  10. PART IX ANNUAL PAYMENTS AND INTEREST

    1. Annual payments

      1. 347A. General rule.

      2. 347B. Qualifying maintenance payments.

      3. 348. Payments out of profits or gains brought into charge to income tax: deduction of tax.

      4. 349. Payments not out of profits or gains brought into charge to income tax, and annual interest.

      5. 349ZA.Extension of section 349: proceeds of sale of UK patent rights

      6. 349A. Exceptions to section 349 for payments between companies etc

      7. 349B. The conditions mentioned in section 349A(1)

      8. 349C. Directions disapplying section 349A(1)

      9. 349D. Section 349A(1): consequences of reasonable but incorrect belief

      10. 349E. Deductions under section 349(1): payment of royalties overseas

      11. 350. Charge to tax where payments made under section 349.

      12. 350A. UK public revenue dividends: deduction of tax.

      13. 351. Small maintenance payments.

      14. 352. Certificates of deduction of tax.

    2. Relief for payments of interest (excluding MIRAS)

      1. 353. General provision.

      2. 354. Loans to buy land etc.

      3. 355. Matters excluded from section 354.

      4. 356. Job-related accommodation.

      5. 356A. Limit on relief for home loans: residence basis.

      6. 356B. Residence basis: married couples.

      7. 356C. Payments to which sections 356A and 356B apply.

      8. 356D. Provisions supplementary to sections 356A to 356C.

      9. 357. Limit on amount of loan eligible for relief by virtue of section 354.

      10. 357A. Substitution of security.

      11. 357B.Treatment of loans following security substitution.

      12. 357C.Substitution of security: supplemental.

      13. 358. Relief where borrower deceased.

      14. 359. Loan to buy machinery or plant.

      15. 360. Loan to buy interest in close company.

      16. 360A. Meaning of “material interest” in section 360.

      17. 361. Loan to buy interest in co-operative or employee-controlled company.

      18. 362. Loan to buy into partnership.

      19. 363. Provisions supplementary to sections 360 to 362.

      20. 364. Loan to pay inheritance tax.

      21. 365. Loan to buy life annuity.

      22. 366. Information.

      23. 367. Provisions supplementary to sections 354 to 366.

      24. 367A.Alternative finance arrangements

      25. 368. Exclusion of double relief etc.

    3. Mortgage interest relief at source

      1. 369. Mortgage interest payable under deduction of tax.

      2. 370. Relevant loan interest.

      3. 371. Second loans.

      4. 372. Home improvement loans.

      5. 373. Loans in excess of the qualifying maximum, and joint borrowers.

      6. 374. Conditions for application of section 369.

      7. 374A. Interest which never has been relevant loan interest etc.

      8. 375. Interest ceasing to be relevant loan interest, etc.

      9. 375A. Option to deduct interest for the purposes of Schedule A.

      10. 376. Qualifying borrowers and qualifying lenders.

      11. 376A. The register of qualifying lenders.

      12. 377. Variation of terms of repayment of certain loans.

      13. 378. Supplementary regulations.

      14. 379.In sections 369 to 378— “contracts of general insurance” means...

  11. PART X LOSS RELIEF AND GROUP RELIEF

    1. CHAPTER I LOSS RELIEF: INCOME TAX

      1. Losses from UK property business or overseas property business

        1. 379A.Losses from UK property business.

        2. 379B. Losses from overseas property business.

      2. Trade etc. losses

        1. 380. Set-off against general income.

        2. 381. Further relief for individuals for losses in early years of trade.

        3. 382. Provisions supplementary to sections 380 and 381.

        4. 383. Extension of right of set-off to capital allowances.

        5. 384. Restrictions on right of set-off.

        6. 384A. Restriction of set-off of allowances against general income

        7. 385. Carry-forward against subsequent profits.

        8. 386. Carry-forward where business transferred to a company.

        9. 387. Carry-forward as losses of amounts taxed under section 350.

        10. 388. Carry-back of terminal losses.

        11. 389. Supplementary provisions relating to carry-back of terminal losses.

        12. 390. Treatment of interest as a loss for purposes of carry-forward and carry-back.

        13. 391. Losses from trade etc. carried on abroad

      3. Case VI losses

        1. 392.Losses from miscellaneous transactions

    2. CHAPTER II LOSS RELIEF: CORPORATION TAX

      1. Losses from UK property business or overseas property business

        1. 392A.UK property business losses

        2. 392B. Losses from overseas property business.

      2. Trade etc. losses

        1. 393. Losses other than terminal losses.

        2. 393A. Losses: set off against profits of the same, or an earlier, accounting period.

        3. 393B.Losses of ring fence trade: set off against profits of an earlier accounting period

        4. 394. Terminal losses.

        5. 395. Leasing contracts and company reconstructions.

      3. Case VI losses

        1. 396.Losses from miscellaneous transactions

    3. CHAPTER III LOSS RELIEF: MISCELLANEOUS PROVISIONS

      1. 397. Restriction of relief in case of farming and market gardening.

      2. 398. Transactions in deposits with and without certificates or in debts.

      3. 399. Dealings in commodity futures etc: withdrawal of loss relief.

      4. 400. Write-off of government investment.

      5. 401. Relief for pre-trading expenditure.

    4. CHAPTER IV GROUP RELIEF

      1. 402. Surrender of relief between members of groups and consortia.

      2. 403. Losses etc. which may be surrendered by way of group relief.

      3. 403ZA. Amounts eligible for group relief: trading losses.

      4. 403ZB. Amounts eligible for group relief: excess capital allowances.

      5. 403ZC. Amounts eligible for group relief: non-trading deficit on loan relationships.

      6. 403ZD. Other amounts available by way of group relief.

      7. 403ZE. Computation of gross profits.

      8. 403A. Limits on group relief.

      9. 403B. Apportionments under section 403A.

      10. 403C. Amount of relief in consortium cases.

      11. 403D.Relief for or in respect of UK losses of non-resident companies

      12. 403E. Relief for overseas losses of UK resident companies.

      13. 403F.Relief in respect of overseas losses of non-resident companies

      14. 403G.Unallowable overseas losses of non-resident companies

      15. 404. Limitation of group relief in relation to certain dual resident companies.

      16. 405. Claims relating to losses etc. of members of both group and consortium.

      17. 406. Claims relating to losses etc. of consortium company or group member.

      18. 407. Relationship between group relief and other relief.

      19. 408. Corresponding accounting periods.

      20. 409. Companies joining or leaving group or consortium.

      21. 410. Arrangements for transfer of company to another group or consortium.

      22. 411. Exclusion of double allowances.

      23. 411ZA.No relief where deduction of relevant return under alternative finance arrangements disallowed

      24. 411A. Group relief by way of substitution for loss relief.

      25. 412. Claims and adjustments.

      26. 413. Interpretation of Chapter IV.

  12. PART XI CLOSE COMPANIES

    1. CHAPTER I INTERPRETATIVE PROVISIONS

      1. 414. Close companies.

      2. 415. Certain quoted companies not to be close companies.

      3. 416. Meaning of “associated company” and “control”.

      4. 417. Meaning of “participator”, “associate”, “director” and “loan creditor”.

      5. Additional matters to be treated as distributions

        1. 418.“Distribution” to include certain expenses of close companies.

    2. CHAPTER II CHARGES TO TAX IN CONNECTION WITH LOANS

      1. 419. Loans to participators etc.

      2. 420. Exceptions from section 419.

      3. 421.Taxation of borrower when loan under section 419 released etc

      4. 422. Extension of section 419 to loans by companies controlled by close companies.

    3. CHAPTER III APPORTIONMENT OF UNDISTRIBUTED INCOME ETC.

      1. 423. Apportionment of certain income, deductions and interest.

      2. 424. Exclusions from section 423.

      3. 425. Manner of apportionment.

      4. 426. Charge to income tax where apportionment is to an individual.

      5. 427. Reduction of charge under section 426 in certain cases.

      6. 428. Increase of apportioned sum etc. by reference to ACT.

      7. 429. Payment and collection of income tax.

      8. 430. Consequences of apportionment: ACT.

  13. PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES

    1. CHAPTER I INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS

      1. Insurance companies: general

        1. 431. Interpretative provisions relating to insurance companies.

        2. 431ZA.Election that assets not be foreign business assets

        3. 431A. Amendment of Chapter etc

        4. 431AA. Relevant benefits for purposes of section 431(4)(d) and (e).

      2. Classes of life assurance business

        1. 431B. Meaning of “pension business”.

        2. 431BA.Meaning of “child trust fund business”

        3. 431BB.Meaning of “individual savings account business”

        4. 431C. Meaning of “life reinsurance business”.

        5. 431D. Meaning of “overseas life assurance business”.

        6. 431E. Overseas life assurance business: regulations.

        7. 431EA.Meaning of “gross roll-up business”

        8. 431F. Meaning of “basic life assurance and general annuity business”.

      3. Basis of taxation etc

        1. 431G.Company carrying on life assurance business

        2. 431H.Company carrying on life assurance business and other insurance business

        3. 432. Separation of different categories of business.

        4. 432YA.PHI business other than life assurance business — adjustment consequent on change in Insurance Prudential Sourcebook

        5. 432ZA. Linked assets.

        6. 432A. Apportionment of income and gains.

        7. 432AA.UK property business or overseas property business

        8. 432AB. Losses from UK property business or overseas property business.

        9. 432B. Apportionment of receipts brought into account.

        10. 432C.Section 432B apportionment: non-participating funds

        11. 432CA.Apportionment of asset value increase where line 51 amount decreases

        12. 432CB.Transfers of business involving excess assets

        13. 432D. Section 432B apportionment: value of non-participating funds.

        14. 432E.Section 432B apportionment: participating funds.

        15. 432F. Section 432B apportionment: supplementary provisions.

        16. 432G.Section 432B apportionment: business transfers-in

        17. 433. Profits reserved for policy holders and annuitants.

      4. Miscellaneous provisions relating to life assurance business

        1. 434. Franked investment income etc.

        2. 434A. Computation of losses and limitation on relief.

        3. 434AZA.Reduced loss relief for additions to non-profit funds

        4. 434AZB.Additions to non-profit funds: amount of loss reduction

        5. 434AZC.Sections 434AZA and 434AZB: supplementary

        6. 434B. Treatment of interest and annuities.

        7. 434C. Interest on repayment of advance corporation tax.

        8. 434D. Capital allowances: management assets.

        9. 434E. Capital allowances: investment assets.

        10. 435. Taxation of gains reserved for policy holders and annuitants.

        11. 436.Pension business: separate charge on profits.

        12. 436A.Gross roll-up business: separate charge on profits

        13. 436B.Gains referable to gross roll-up business not to be chargeable gains

        14. 437. General annuity business.

        15. 437A. Meaning of “steep-reduction annuity” etc.

        16. 438. Pension business: exemption from tax.

        17. 438A.Pension business: payments on account of tax credits and deducted tax.

        18. 438B. Income or gains arising from property investment LLP

        19. 438C. Determination of policy holders’ share for purposes of s.438B

        20. 439. Restricted government securities.

        21. 439A. Taxation of pure reinsurance business.

        22. 439B. Life reinsurance business: separate charge on profits.

        23. 440. Transfers of assets etc.

        24. 440A. Securities.

        25. 440B. Modifications where tax charged under section 35 of CTA 2009.

        26. 440C.Modifications for change of tax basis

        27. 440D.Modifications in relation to BLAGAB group reinsurers

        28. 441. Overseas life assurance business.

        29. 441A.Section 441: distributions.

        30. 441B. Treatment of UK land.

        31. 442. Overseas business of U.K. companies.

        32. 442A. Taxation of investment return where risk reinsured.

        33. 443. Life policies carrying rights not in money.

        34. 444. Life policies issued before 5th August 1965.

        35. 444A. Transfers of business.

        36. 444AZA.Transfers of life assurance business: gross roll-up business losses of the transferor

        37. 444AZB.Transfers of life assurance business: trade losses of the transferor

        38. 444AA.Transfers of business: deemed periodical returns

        39. 444AB.Transfer schemes: transferor

        40. 444ABA.Non long-term fund transferred assets

        41. 444ABAA.Non-profit fund transferred assets

        42. 444ABB.Retained assets

        43. 444ABBA.Transfers of business: election for transferee to pay tax of transferor

        44. 444ABC.Transfer scheme transferring part of business: transferor

        45. 444ABD.Transferor's period of account including transfer

        46. 444AC.Transfer schemes: reduction of income of transferee

        47. 444ACZA.Transfer schemes transferring part of business: reduction in income of transferee

        48. 444ACA.Transfers of business: transferor shares are assets of transferee's long-term insurance fund etc

        49. 444AD.Transfers of business: modification of s.83(2B) FA 1989

        50. 444AE.Transfers of business: FAFTS

        51. 444AEA.Transfer schemes: anti-avoidance rule

        52. 444AEB.Life assurance trade profits advantage: transferor

        53. 444AEC.Life assurance trade profits advantage: transferee

        54. 444AECA.Parts of transfer scheme arrangements: anti-avoidance rule

        55. 444AECB.Parts of transfer scheme arrangements: life assurance trade profits advantage transferor

        56. 444AECC.Parts of transfer scheme arrangements: life assurance trade profits advantage transferee

        57. 444AED.Clearance: no avoidance or group advantage

      5. Surpluses of mutual and former mutual businesses

        1. 444AF.Demutualisation surplus: life assurance business

        2. 444AG.Section 444AF: “demutualisation transfer surplus”

        3. 444AH.Modification of section 444AG etc for gross roll-up businesses

        4. 444AI.Section 444AF: “reduction in company's unappropriated surplus”

        5. 444AJ.Sections 444AF and 444AK: “relevant receipts reduction”

        6. 444AK.Mutual surplus: gross roll-up business

        7. 444AL.Interpretation of sections 444AF to 444AK

      6. Provisions applying in relation to overseas life insurance companies

        1. 444B. Modification of Act in relation to overseas life insurance companies.

      7. Equalisation reserves

        1. 444BA. Equalisation reserves for general business.

        2. 444BB. Modification of s. 444BA for mutual or overseas business and for non-resident companies.

        3. 444BC. Modification of s. 444BA for non-annual accounting etc.

        4. 444BD. Application of s. 444BA rules to other equalisation reserves.

        5. 444C. Modification of section 440.

        6. 444D. Qualifying distributions, tax credits, etc.

        7. 444E. Income from investments attributable to BLAGAB, etc.

      8. Provisions applying only to overseas life insurance companies

        1. 445. Charge to tax on investment income.

        2. 446. Annuity business.

        3. 447. Set-off of income tax and tax credits against corporation tax.

        4. 448. Qualifying distributions and tax credits.

        5. 449. Double taxation agreements.

      9. Underwriters

        1. 450. Assessment, set-off of losses and reinsurance.

        2. 451. Regulations.

        3. 452. Special reserve funds.

        4. 453. Payments into premiums trust fund on account of losses.

        5. 454. Income tax consequences on payments into and out of special reserve fund.

        6. 455. Income tax consequences on death of underwriter.

        7. 456. Unearned income, variation of arrangements and cancellation of approval etc.

        8. 457. Interpretation of sections 450 to 456.

      10. Capital redemption business

        1. 458. Capital redemption business.

        2. 458A. Capital redemption business: power to apply life assurance provisions.

    2. CHAPTER II FRIENDLY SOCIETIES, TRADE UNIONS AND EMPLOYERS’ ASSOCIATIONS

      1. Unregistered friendly societies

        1. 459. Exemption from tax.

      2. Registered friendly societies

        1. 460. Exemption from tax in respect of life or endowment business.

        2. 461. Taxation in respect of other business.

        3. 461A.Taxation in respect of other business: incorporated friendly societies qualifying for exemption.

        4. 461B. Taxation in respect of other business: incorporated friendly societies etc.

        5. 461C. Taxation in respect of other business: withdrawal of “qualifying” status from incorporated friendly society.

        6. 461D.Transfers of other business

        7. 462. Conditions for tax exempt business.

        8. 462A. Election as to tax exempt business.

        9. 463.Long-term business: application of the Corporation Tax Acts.

        10. 464. Maximum benefits payable to members.

        11. 465. Old societies.

        12. 465A.Assets of branch of registered friendly society to be treated as assets of society after incorporation.

        13. 466. Interpretation of Chapter II.

      3. Trade unions and employers’ associations

        1. 467. Exemption for trade unions and employers’ associations.

    3. CHAPTER III UNIT TRUST SCHEMES, DEALERS IN SECURITIES ETC.

      1. Unit trust schemes

        1. 468. Authorised unit trusts.

        2. 468AA. Authorised unit trusts: futures and options.

        3. 468A. Certified unit trusts.

        4. 468A.Open-ended investment companies

        5. 468B. Certified unit trusts: corporation tax.

        6. 468C. Certified unit trusts: distributions.

        7. 468D. Funds of funds: distributions.

        8. 468E. Authorised unit trusts: corporation tax.

        9. 468EE. Corporation tax: cases where lower rate applies.

        10. 468F.Authorised unit trusts: distributions.

        11. 468G. [Dividends paid to investment trusts.

      2. Distributions of authorised unit trusts: general

        1. 468H. Interpretation.

        2. 468I. Distribution accounts.

      3. Dividend and foreign income distributions

        1. 468J. Dividend distributions.

        2. 468K. Foreign income distributions.

      4. Interest distributions

        1. 468L. Interest distributions.

        2. 468M. Cases where no obligation to deduct tax

        3. 468N. Deduction of tax (mixed funds).

        4. 468O. Residence condition and reputable intermediary condition.

        5. 468P. Residence declarations.

        6. 468PA.Section 468O(1A): consequences of reasonable but incorrect belief

        7. 468PB.Regulations supplementing sections 468M to 468PA

      5. Distributions to corporate unit holder

        1. 468Q. Dividend distribution to corporate unit holder.

        2. 468R. Foreign income distribution to corporate unit holder.

        3. 469. Other unit trusts.

        4. 469A. Court common investment funds.

        5. 470. Transitional provisions relating to unit trusts.

      6. Dealers in securities, banks and insurance businesses

        1. 471. Exchange of securities in connection with conversion operations, nationalisation etc.

        2. 472. Distribution of securities issued in connection with nationalisation etc.

        3. 472A.Trading profits etc. from securities: taxation of amounts taken to reserves

        4. 473. Conversion etc. of securities held as circulating capital.

        5. 474. Treatment of tax-free income.

        6. 475. Tax-free Treasury securities: exclusion of interest on borrowed money.

    4. CHAPTER IV BUILDING SOCIETIES, BANKS, SAVINGS BANKS, INDUSTRIAL AND PROVIDENT SOCIETIES AND OTHERS

      1. 476. Building societies: regulations for payment of tax.

      2. 477. Investments becoming or ceasing to be relevant building society investments.

      3. 477A. Building societies: regulations for deduction of tax.

      4. 477B. Building societies: incidental costs of issuing qualifying shares.

      5. 478. Building societies: time for payment of tax.

      6. 479. Interest paid on deposits with banks etc.

      7. 480. Deposits becoming or ceasing to be composite rate deposits.

      8. 480A. Relevant deposits: deduction of tax from interest payments.

      9. 480B. Relevant deposits: exception from section 480A.

      10. 480C. Relevant deposits: computation of tax on interest.

      11. 481.“Deposit-taker”, “deposit” and “relevant deposit”.

      12. 482. Supplementary provisions.

      13. 482A. Audit powers in relation to non-residents.

      14. 483. Determination of reduced rate for building societies and composite rate for banks etc.

      15. 484. Savings banks: exemption from tax.

      16. 485. Savings banks: supplemental.

      17. 486. Industrial and provident societies and co-operative associations.

      18. 487. Credit unions.

      19. 488. Co-operative housing associations.

      20. 489. Self-build societies.

      21. 490. Companies carrying on a mutual business or not carrying on a business.

      22. 491. Distribution of assets of body corporate carrying on mutual business.

    5. CHAPTER V

      1. PETROLEUM EXTRACTION ACTIVITIES

        1. 492. Treatment of oil extraction activities etc. for tax purposes.

        2. 493. Valuation of oil disposed of or appropriated in certain circumstances.

        3. 494.Loan relationships etc.

        4. 494AA. Sale and lease-back.

        5. 494A. Computation of amount available for surrender by way of group relief.

        6. 495. Regional development grants.

        7. 496.Tariff receipts and tax-exempt tariffing receipts

        8. 496A.Exploration expenditure supplement

        9. 496B.Ring fence expenditure supplement

        10. 497. Restriction on setting ACT against income from oil extraction activities etc.

        11. 498. Limited right to carry back surrendered ACT.

        12. 499. Surrender of ACT where oil extraction company etc. owned by a consortium.

        13. 500. Deduction of PRT in computing income for corporation tax purposes.

        14. 501. Interest on repayment of PRT.

        15. 501A. Supplementary charge in respect of ring fence trades

        16. 501B. Assessment, recovery and postponement of supplementary charge

        17. 502. Interpretation of Chapter V.

    6. Chapter 5A Special rules for long funding leases of plant or machinery: corporation tax

      1. Introductory

        1. 502A.Scope of Chapter 5A

      2. Lessors under long funding finance leases

        1. 502B.Lessor under long funding finance lease: rental earnings

        2. 502C.Lessor under long funding finance lease: exceptional items

        3. 502D.Lessor under long funding finance lease making termination payment

      3. Lessors under long funding operating leases

        1. 502E.Lessor under long funding operating lease: periodic deduction

        2. 502F.Long funding operating lease: lessor's additional expenditure

        3. 502G.Lessor under long funding operating lease: termination of lease

      4. Lessors under long funding finance or operating leases: avoidance etc

        1. 502GA.Cases where ss. 502B to 502G do not apply: plant or machinery held as trading stock

        2. 502GB.Cases where ss. 502B to 502G do not apply: lessor also lessee under non-long funding lease

        3. 502GC.Cases where ss. 502B to 502G do not apply: other avoidance

        4. 502GD.Cases where ss 502B to 502G do not apply: films

      5. Insurance company as lessor

        1. 502H.Insurance company as lessor

      6. Lessees under long funding finance leases

        1. 502I.Lessee under long funding finance lease: limit on deductions

        2. 502J.Lessee under long funding finance lease: termination

      7. Lessees under long funding operating leases

        1. 502K.Lessee under long funding operating lease

      8. Interpretation of Chapter

        1. 502L.Interpretation of this Chapter

    7. CHAPTER VI MISCELLANEOUS BUSINESSES AND BODIES

      1. 503. Letting of furnished holiday accommodation treated as a trade for certain corporation tax purposes.

      2. 504. Supplementary provisions.

      3. 504A.Letting of furnished holiday accommodation treated as trade for certain income tax purposes

      4. 505.Charitable companies: general.

      5. 506.Charitable and non-charitable expenditure

      6. 506A.Transactions with substantial donors

      7. 506B.Section 506A: exceptions

      8. 506C.Sections 506A and 506B: supplemental

      9. 507. The National Heritage Memorial Fund, the Historic Buildings and Monuments Commission for England and the British Museum.

      10. 508. Scientific research organisations.

      11. 508A. Investment trusts investing in housing.

      12. 508B. Interpretation of section 508A.

      13. 508A.Contemplative religious communities: profits exempt from corporation tax

      14. 508B.Contemplative religious communities: gains exempt from corporation tax

      15. 509. Reserves of marketing boards and certain other statutory bodies.

      16. 510. Agricultural societies.

      17. 510A. European economic interest groupings.

      18. 511. The Electricity Council and Boards, the Northern Ireland Electricity Service and the Gas Council.

      19. 512. Atomic Energy Authority and National Radiological Protection Board.

      20. 513. British Airways Board and National Freight Corporation.

      21. 514. Funds for reducing the National Debt.

      22. 515. Signatories to Operating Agreement for INMARSAT.

      23. 516. Government securities held by non-resident central banks.

      24. 517. Issue departments of the Reserve Bank of India and the State Bank of Pakistan.

      25. 518. Harbour reorganisation schemes.

      26. 519. Local authorities.

      27. 519A. Health service bodies.

  14. PART XIII MISCELLANEOUS SPECIAL PROVISIONS

    1. CHAPTER I INTELLECTUAL PROPERTY

      1. Patents and know-how

        1. 520. Allowances for expenditure on purchase of patent rights: post-31st March 1986 expenditure.

        2. 521. Provisions supplementary to section 520.

        3. 522. Allowances for expenditure on purchase of patent rights: pre-1st April 1986 expenditure.

        4. 523. Lapses of patent rights, sales etc.

        5. 524. Taxation of receipts from sale of patent rights.

        6. 525. Capital sums: . . . winding up or partnership change.

        7. 526. Relief for expenses.

        8. 527. Spreading of royalties over several years.

        9. 528. Manner of making allowances and charges.

        10. 529. Patent income to be earned income in certain cases.

        11. 530. Disposal of know-how.

        12. 531. Provisions supplementary to section 530.

        13. 532. Application of Capital Allowances Act

        14. 533. Interpretation of sections 520 to 532.

      2. Copyright and public lending right

        1. 534. Relief for copyright payments etc.

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

        3. 536. Taxation of royalties where owner abroad.

        4. 537. Public lending right.

      3. Designs

        1. 537A. Relief for payments in respect of designs.

        2. 537B. Taxation of design royalties where owner abroad.

      4. Artists’ receipts

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

    2. CHAPTER II LIFE POLICIES, LIFE ANNUITIES AND CAPITAL REDEMPTION POLICIES

      1. 539. Introductory.

      2. 539ZA.Application of this Chapter etc. to policies and contracts in which persons other than companies are interested

      3. 539A.The conditions for being an excepted group life policy

      4. 540. Life policies: chargeable events.

      5. 541. Life policies: computation of gain.

      6. 542. Life annuity contracts: chargeable events.

      7. 543. Life annuity contracts: computation of gain.

      8. 544. Second and subsequent assignment of life policies and contracts.

      9. 545. Capital redemption policies.

      10. 546. Calculation of certain amounts for purposes of sections 540, 542 and 545.

      11. 546A. Treatment of certain assignments etc involving co-ownership

      12. 546B. Special provision in respect of certain section 546 excesses

      13. 546C. Charging the section 546 excess to tax where section 546B applies

      14. 546D. Modifications of s.546C for final year ending with terminal chargeable event

      15. 547. Method of charging gain to tax.

      16. 547A. Method of charging gain to tax: multiple interests.

      17. 548. Deemed surrender of certain loans.

      18. 548A.Effect of rebated or reinvested commission in certain cases

      19. 548B.Section 548A: further definitions

      20. 549. Certain deficiencies allowable as deductions.

      21. 550. Relief where gain charged at a higher rate.

      22. 551. Right of individual to recover tax from trustees.

      23. 551A. Right of company to recover tax from trustees.

      24. 552. Information: duty of insurers.

      25. 552ZA. Information: supplementary provisions

      26. 552ZB.Regulations in relation to qualifying policies

      27. 552A. Tax representatives.

      28. 552B. Duties of overseas insurers’ tax representatives.

      29. 553. Non-resident policies and off-shore capital redemption policies.

      30. 553A. Overseas life assurance business: life policies.

      31. 553B. Overseas life assurance business: capital redemption policies.

      32. 553C. Personal portfolio bonds.

      33. 554. Borrowings on life policies to be treated as income in certain cases.

    3. CHAPTER III ENTERTAINERS AND SPORTSMEN

      1. 555. Payment of tax.

      2. 556. Activity treated as trade etc. and attribution of income.

      3. 557. Charge on profits.

      4. 558. Supplementary provisions.

    4. CHAPTER IV SUB-CONTRACTORS IN THE CONSTRUCTION INDUSTRY

      1. 559. Deductions on account of tax etc. from payments to certain sub-contractors.

      2. 559A. Treatment of sums deducted under s.559

      3. 560. Persons who are sub-contractors or contractors for purposes of Chapter IV.

      4. 561. Exceptions from section 559.

      5. 562. Conditions to be satisfied by individuals.

      6. 563. Conditions to be satisfied by partners who are individuals.

      7. 564. Conditions to be satisfied by firms.

      8. 565. Conditions to be satisfied by companies.

      9. 566. General powers to make regulations under Chapter IV.

      10. 567. Meaning of “construction operations”.

    5. CHAPTER V SCHEMES FOR RATIONALIZING INDUSTRY

      1. 568. Deductions from profits of contributions paid under certified schemes.

      2. 569. Repayment of contributions.

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

      4. 571. Cancellation of certificates.

      5. 572. Application to statutory redundancy schemes.

    6. Chapter 5A Share loss relief

      1. Relief for losses on unquoted shares in trading companies

        1. 573. Relief for companies.

        2. 575. Exclusion of relief under section 573 . . . in certain cases.

        3. 576. Provisions supplementary to sections 573 and 575.

        4. 576A.Qualifying trading companies

      2. Qualifying trading companies: the requirements

        1. 576B.The trading requirement

        2. 576C.Ceasing to meet the trading requirement because of administration or receivership

        3. 576D.The control and independence requirement

        4. 576E.The qualifying subsidiaries requirement

        5. 576F.The property managing subsidiaries requirement

        6. 576G.The gross assets requirement

        7. 576H.The unquoted status requirement

        8. 576I.Power to amend requirements by Treasury order

      3. Qualifying trading companies: supplementary provisions

        1. 576J.Relief after an exchange of shares for shares in another company

        2. 576K.Substitution of new shares for old shares

      4. Supplemental

        1. 576L.Interpretation of Chapter

    7. CHAPTER VI OTHER PROVISIONS

      1. Relief for losses on unquoted shares in trading companies

        1. 574. Relief for individuals.

      2. Miscellaneous

        1. 577. Business entertaining expenses.

        2. 577A. Expenditure involving crime.

        3. 578. Housing grants.

        4. 578A. Expenditure on car hire

        5. 578B. Expenditure on car hire: supplementary

        6. 579. Statutory redundancy payments.

        7. 580. Provisions supplementary to section 579.

        8. 580A. Relief from tax on annual payments under certain insurance policies.

        9. 580B. Meaning of “self-contained” for the purposes of s.580A.

        10. 580C.Relief from tax on annual payments under immediate needs annuities

        11. 581. Borrowing in foreign currency by local authorities and statutory corporations.

        12. 581A.Interest on foreign currency securities etc.

        13. 582. Funding bonds issued in respect of interest on certain debts.

        14. 582A. Designated international organisations: miscellaneous exemptions.

        15. 583. Inter-American Development Bank.

        16. 584. Relief for unremittable overseas income

        17. 585. Relief from tax on delayed remittances.

        18. 586. Disallowance of deductions for war risk premiums.

        19. 587. Disallowance of certain payments in respect of war injuries to employees.

        20. 587A. New issues of securities: extra return.

        21. 587B.Gifts of shares, securities and real property to charities etc

        22. 587BA.Qualifying interests in land held jointly

        23. 587C. Supplementary provision for gifts of real property

        24. 588. Training courses for employees.

        25. 589. Qualifying courses of training etc.

        26. 589A. Counselling services for employees.

        27. 589B.Qualifying counselling services etc.

  15. PART XIV PENSION SCHEMES, SOCIAL SECURITY BENEFITS, LIFE ANNUITIES ETC.

    1. CHAPTER I RETIREMENT BENEFIT SCHEMES

      1. Approval of schemes

        1. 590. Conditions for approval of retirement benefit schemes.

        2. 590A. Section 590: supplementary provisions.

        3. 590B. Section 590: further supplementary provisions.

        4. 590C. Earnings cap.

        5. 591. Discretionary approval.

        6. 591A.Effect on approved schemes of regulations under section 591.

        7. 591B.Cessation of approval: general provisions.

        8. 591C. Cessation of approval: tax on certain schemes.

        9. 591D. Section 591C: supplementary.

      2. Tax reliefs

        1. 592. Exempt approved schemes.

        2. 593. Relief by way of deductions from contributions.

        3. 594. Exempt statutory schemes.

      3. Charge to tax in certain cases

        1. 595. Charge to tax in respect of certain sums paid by employer etc.

        2. 596. Exceptions from section 595.

        3. 596A. Charge to tax: benefits under non-approved schemes.

        4. 596B. Section 596A: supplementary provisions.

        5. 596C. Notional interest treated as paid if amount charged in respect of beneficial loan.

        6. 597. Charge to tax: pensions.

        7. 598. Charge to tax: repayment of employee’s contributions.

        8. 599. Charge to tax: commutation of entire pension in special circumstances.

        9. 599A. Charge to tax: payments out of surplus funds.

        10. 600. Charge to tax: unauthorised payments to or for employees.

        11. 601. Charge to tax: payments to employers.

        12. 602. Regulations relating to pension fund surpluses.

        13. 603. Reduction of surpluses.

      4. Supplementary provisions

        1. 604. Application for approval of a scheme.

        2. 605. Information.

        3. 605A. False statements etc.

        4. 606. Default of administrator etc.

        5. 606A. Recourse to scheme members.

        6. 607. Pilots’ benefit fund.

        7. 608. Superannuation funds approved before 6th April 1980.

        8. 609. Schemes approved before 23rd July 1987.

        9. 610. Amendments of schemes.

        10. 611. Definition of “retirement benefits scheme”.

        11. 611A. Definition of relevant statutory scheme.

        12. 611AA. Definition of the administrator.

        13. 611A. Definition of relevant statutory scheme.

        14. 612. Other interpretative provisions, and regulations for purposes of this Chapter.

    2. CHAPTER II OTHER PENSION FUNDS AND SOCIAL SECURITY BENEFITS AND CONTRIBUTIONS

      1. 613. Parliamentary pension funds.

      2. 614. Exemptions and reliefs in respect of income from investments etc. of certain pension schemes.

      3. 615. Exemption from tax in respect of certain pensions.

      4. 616. Other overseas pensions.

      5. 617. Social security benefits and contributions.

      6. 617A. Tax credits under Part 1 of Tax Credits Act 2002

    3. CHAPTER III RETIREMENT ANNUITIES

      1. 618. Termination of relief under this Chapter, and transitional provisions.

      2. 619. Exemption from tax in respect of qualifying premiums.

      3. 620. Qualifying premiums.

      4. 621. Other approved contracts.

      5. 622. Substituted retirement annuity contracts.

      6. 623. Relevant earnings.

      7. 624. Sponsored superannuation schemes and controlling directors.

      8. 625. Carry-forward of unused relief under section 619.

      9. 626. Modification of section 619 in relation to persons over 50.

      10. 627. Lloyd’s underwriters.

      11. 628. Partnership retirement annuities.

      12. 629. Annuity premiums of Ministers and other officers.

    4. CHAPTER IV PERSONAL PENSION SCHEMES

      1. Preliminary

        1. 630. Interpretation.

        2. 631. Approval of schemes.

        3. 631A. Conversion of certain approved retirement benefits schemes.

      2. Restrictions on approval

        1. 632. Establishment of schemes.

        2. 632A. Eligibility to make contributions.

        3. 632B. Eligibility to make contributions: concurrent membership.

        4. 633. Scope of benefits.

        5. 634. Annuity to member.

        6. 634A. Income withdrawals by member.

        7. 635. Lump sum to member.

        8. 636. Annuity after death of member.

        9. 636A. Income withdrawals after death of member.

        10. 637. Death benefit.

        11. 637A. Return of contributions on or after death of member.

        12. 638. Other restrictions on approval.

        13. 638ZA. Personal pension arrangements with more than one pension date etc.

        14. 638A. Power to prescribe restrictions on approval.

      3. Tax reliefs

        1. 639. Member’s contributions.

        2. 640. Maximum amount of deductions.

        3. 640A. Earnings cap.

        4. 641. Carry-back of contributions.

        5. 641A. Election for contributions to be treated as paid in previous year.

        6. 642. Carry-forward of relief.

        7. 643. Employer’s contributions and personal pension income etc.

        8. 644. Meaning of “relevant earnings”.

        9. 645. Earnings from pensionable employment.

        10. 646. Meaning of “net relevant earnings”.

        11. 646A. Earnings from associated employments.

        12. 646B. Presumption of same level of relevant earnings etc for 5 years.

        13. 646C. Provisions supplementary to section 646B.

        14. 646D. Higher level contributions after cessation of actual relevant earnings: modification of section 646B.

      4. Charge to tax

        1. 647. Unauthorised payments.

        2. 648. Contributions under unapproved arrangements.

      5. 648A. Annuities: charge under Schedule E.

      6. 648B. Return of contributions after pension date.

      7. Miscellaneous

        1. 649. Minimum contributions under Social Security Act 1986.

        2. 650. Withdrawal of approval.

        3. 650A. Charge on withdrawal of approval from arrangements.

        4. 651. Appeals.

        5. 651A. Information powers.

        6. 652. Information about payments.

        7. 653. Information: penalties.

        8. 653A. Notices to be given to scheme administrator.

        9. 654. Remuneration of Ministers and other officers.

        10. 655. Transitional provisions.

    5. CHAPTER V PURCHASED LIFE ANNUITIES

      1. 656. Purchased life annuities other than retirement annuities.

      2. 657. Purchased life annuities to which section 656 applies.

      3. 658. Supplementary.

    6. CHAPTER VI MISCELLANEOUS

      1. 658A. Charges and assessments on administrators.

      2. 659. Financial futures and traded options.

      3. 659A. Futures and options.

      4. 659B. Definition of insurance company.

      5. 659C. Effect of appointment or arrangements under section 659B.

      6. 659D. Interpretation of provisions about pension sharing.

      7. 659E. Treatment of income from property investment LLPs

  16. PART XV SETTLEMENTS

    1. Chapter IA Liability of settlor

      1. Main provisions

        1. 660A. Income arising under settlement where settlor retains an interest.

        2. 660B. Payments to unmarried minor children of settlor.

        3. 660C. Nature of charge on settlor.

        4. 660D. Adjustments between settlor and trustees, &c.

      2. Supplementary provisions

        1. 660E. Application to settlements by two or more settlors.

        2. 660F. Power to obtain information.

        3. 660G. Meaning of “settlement” and related expressions.

    2. CHAPTER I DISPOSITIONS FOR SHORT PERIODS

      1. 660. Dispositions for period which cannot exceed six years.

      2. 661. Adjustments between disponor and trustees.

      3. 662. Application of Chapter I to dispositions by two or more disponors.

    3. CHAPTER II SETTLEMENTS ON CHILDREN

      1. 663. The general rule.

      2. 664. Accumulation settlements.

      3. 665. Meaning of “irrevocable”.

      4. 666. Interest paid by trustees.

      5. 667. Adjustments between disponor and trustees.

      6. 668. Application of Chapter II to settlements by two or more settlors.

      7. 669. Power to obtain information under Chapter II.

      8. 670. Interpretation of Chapter II.

    4. CHAPTER 1B PROVISIONS AS TO CAPITAL SUMS PAID TO SETTLOR

      1. 671. Revocable settlements allowing release of obligation.

      2. 672. Revocable settlements allowing reversion of property.

      3. 673. Settlements where settlor retains an interest.

      4. 674. Settlements: discretionary power for benefit of settlor etc.

      5. 674A. Other settlements where settlor retains interest in settled property.

      6. 675. Provisions supplementary to sections 671 to 674.

      7. 676. Disallowance of deduction from total income of certain sums paid by settlor.

      8. 677. Sums paid to settlor otherwise than as income.

      9. 678. Capital sums paid by body connected with settlement.

      10. 679. Application of Chapter III to settlements by two or more settlors.

      11. 680. Power to obtain information for purposes of Chapter III.

      12. 681. Interpretation of Chapter III.

      13. 682. Ascertainment of undistributed income.

      14. 682A. Supplementary provisions.

    5. CHAPTER 1C LIABILITY OF TRUSTEES

      1. Liability of settlors

        1. 683. Settlements made after 6th April 1965.

        2. 684. Settlements made before 7th April 1965 but after 9th April 1946.

        3. 685. Provisions supplementary to sections 683 and 684.

      2. Liability of trustees

        1. 685A.Meaning of “settled property”

        2. 685B.Meaning of “settlor”

        3. 685C.Transfer between settlements: identification of settlor

        4. 685D.Variation of will or intestacy, etc: identification of settlor

        5. 685E.Trustees of settlements

        6. 685F.Application of section 739 and 740

        7. 685G.Sub-funds

        8. 686.Accumulation and discretionary trusts: special rates of tax.

        9. 686A. Receipts to be treated as income to which section 686 applies

        10. 686B.Share incentive plans: distributions in respect of unappropriated shares

        11. 686C.Interpretation of section 686B

        12. 686D.Special trust rates not to apply to first slice of trust income

        13. 686E.Application of section 686D where settlor has made more than one settlement

        14. 687. Payments under discretionary trusts.

        15. 687A.Discretionary payments by trustees to companies.

        16. 688. Schemes for employees and directors to acquire shares.

        17. 689. Recovery from trustees of discretionary trusts of higher rate tax due from beneficiaries.

    6. Chapter ID Trust management expenses

      1. 689A. Disregard of expenses where beneficiary non-resident.

      2. 689B. Order in which expenses to be set against income.

    7. CHAPTER V MAINTENANCE FUNDS FOR HISTORIC BUILDINGS

      1. 690. Schedule 4 directions.

      2. 691. Certain income not to be income of settlor etc.

      3. 692. Reimbursement of settlor.

      4. 693. Severance of settled property for certain purposes.

      5. 694.Trustees chargeable to income tax in certain cases at higher rate reduced by rate applicable to trusts

  17. PART XVI ESTATES OF DECEASED PERSONS IN COURSE OF ADMINISTRATION

    1. 695. Limited interests in residue.

    2. 696. Absolute interests in residue.

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

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

    5. 698A. Taxation of income of beneficiaries at lower rate or at rates applicable to distribution income.

    6. 699. Relief from higher rate tax for inheritance tax on accrued income.

    7. 699A. Untaxed sums comprised in the income of the estate.

    8. 700. Adjustments and information.

    9. 701. Interpretation.

    10. 702. Application to Scotland.

  18. PART XVII TAX AVOIDANCE

    1. CHAPTER I CANCELLATION OF CORPORATION TAX ADVANTAGES FROM CERTAIN TRANSACTIONS IN SECURITIES

      1. 703. Cancellation of corporation tax advantage.

      2. 704. The prescribed circumstances.

      3. 705. Appeals against Board’s notices under section 703.

      4. 705A. Statement of case by tribunal for opinion of High Court.

      5. 705B. Proceedings in Northern Ireland.

      6. 706. The tribunal.

      7. 707. Procedure for clearance in advance.

      8. 708. Power to obtain information.

      9. 709. Meaning of “corporation tax advantage” and other expressions.

    2. CHAPTER II TRANSFERS OF SECURITIES

      1. Transfers with or without accrued interest: introductory

        1. 710. Meaning of “securities”, “transfer” etc. for purposes of sections 711 to 728.

        2. 711. Meaning of “interest”, “transfers with or without accrued interest” etc.

        3. 712. Meaning of “settlement day” for purposes of sections 711 to 728.

      2. Transfers with or without accrued interest: charge to tax and reliefs

        1. 713. Deemed sums and reliefs.

        2. 714. Treatment of deemed sums and reliefs.

        3. 715. Exceptions from sections 713 and 714

        4. 716. Transfer of unrealised interest.

        5. 717. Variable interest rate.

        6. 718. Interest in default.

        7. 719. Unrealised interest in default

      3. Transfers with or without accrued interest: supplemental

        1. 720. Nominees, trustees etc.

        2. 721. Death.

        3. 722. Trading stock.

        4. 722A. Gilt strips: deemed transfer.

        5. 723. Foreign securities: delayed remittances

        6. 724. Insurance companies.

        7. 725. Lloyd’s underwriters.

        8. 726. Building societies.

        9. 726A.New issues of securities.

        10. 727. Stock lending.

        11. 727A. Exception for sale and repurchase of securities.

        12. 728. Information.

      4. Other transfers of securities

        1. 729. Sale and repurchase of securities.

        2. 730.Transfers of rights to receive distributions in respect of shares

        3. 730A. Treatment of price differential on sale and repurchase of securities.

        4. 730B. Interpretation of section 730A.

        5. 730BB.Exchange gains and losses on sale and repurchase of securities

        6. 730C. Exchanges of gilts: traders etc.

      5. Purchase and sale of securities

        1. 731. Application and interpretation of sections 732 to 734.

        2. 732. Dealers in securities.

        3. 733. Persons entitled to exemptions.

        4. 734. Persons other than dealers in securities.

        5. 735. Meaning of “appropriate amount in respect of” interest.

      6. Miscellaneous provisions relating to securities

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

        2. 736A. Manufactured dividends and interest.

        3. 736B. Deemed manufactured payments in the case of stock lending arrangements.

        4. 736C.Deemed interest: cash collateral under stock lending arrangements

        5. 736D.Quasi-stock lending arrangements and quasi-cash collateral

        6. 737. Manufactured dividends: treatment of tax deducted.

        7. 737A. Sale and repurchase of securities: deemed manufactured payments.

        8. 737B. Interpretation of section 737A.

        9. 737C. Deemed manufactured payments: further provisions.

      7. Supplemental

        1. 737D. Power to provide for manufactured payments to be eligible for relief.

        2. 737E.Power to modify sections . . . 730A, 730BB and 737A to 737C

        3. 738. Power to amend sections 732, 735 and 737.

    3. CHAPTER III TRANSFER OF ASSETS ABROAD

      1. 739. Prevention of avoidance of income tax.

      2. 740. Liability of non-transferors.

      3. 741.Exemption from sections 739 and 740 (transactions before 5th December 2005)

      4. 741A.Exemption from sections 739 and 740 (transactions on or after 5th December 2005)

      5. 741B.Application of sections 741 and 741A

      6. 741C.Cases where there are both old transactions and new transactions

      7. 741D.Section 739: just and reasonable apportionment in certain cases

      8. 742.Interpretation of this Chapter

      9. 743. Supplemental provisions.

      10. 744. No duplication of charge.

      11. 745. Power to obtain information.

      12. 746. Persons resident in the Republic of Ireland.

    4. CHAPTER IV CONTROLLED FOREIGN COMPANIES

      1. 747. Imputation of chargeable profits and creditable tax of controlled foreign companies

      2. 747A. Special rule for computing chargeable profits.

      3. 748.Cases where section 747(3) does not apply.

      4. 748ZA.Exclusion of small profits exemptions

      5. 748A.Territorial exclusions from exemption under section 748

      6. 749. Residence.

      7. 749A. Elections and designations under section 749: supplementary provisions.

      8. 749B. Interests in companies.

      9. 750. Territories with a lower level of taxation.

      10. 750A. Deemed lower level of taxation: designer rate tax provisions.

      11. 751. Accounting periods and creditable tax

      12. 751A.Reduction in chargeable profits for certain activities of EEA business establishments

      13. 751AA.Reduction in chargeable profits for certain financing income

      14. 751AB.Reduction in chargeable profits: failure to qualify for exemptions

      15. 751AC.Reduction in chargeable profits following an exempt period

      16. 751B.Sections 751A to 751AC: supplementary

      17. 752. Apportionment of chargeable profits and creditable tax

      18. 752A. Relevant interests.

      19. 752B. Section 752(3): the percentage of shares which a relevant interest represents.

      20. 752C. Interpretation of apportionment provisions.

      21. 753. Notices and appeals.

      22. 754. Assessment, recovery and postponement of tax.

      23. 754A. Returns where it is not established whether acceptable distribution policy applies.

      24. 754B. Determinations requiring the sanction of the Board.

      25. 755. Information relating to controlled foreign companies

      26. 755A. Treatment of chargeable profits and creditable tax apportioned to company carrying on life assurance business.

      27. 755B. Amendment of return where general insurance business of foreign company accounted for on non-annual basis.

      28. 755C. Application of Chapter where general insurance business of foreign company accounted for on non-annual basis.

      29. 755D.“Control" and the two “40 per cent" tests.

      30. 756. Interpretation and construction of Chapter IV.

    5. CHAPTER V OFFSHORE FUNDS

      1. Meaning of offshore fund

        1. 756A.General definition of offshore fund

      2. Treatment of umbrella funds

        1. 756B.Treatment of umbrella funds

      3. Treatment of funds comprising more than one class of interest

        1. 756C.Treatment of funds comprising more than one class of interest

      4. Material interests in non-qualifying offshore funds

        1. 757. Disposal of material interests in non-qualifying offshore funds

        2. 758. Offshore funds operating equalisation arrangements

        3. 759. Material interests in offshore funds

        4. 760. Non-qualifying offshore funds

      5. Charge to tax of offshore income gains

        1. 761. Charge to income tax or corporation tax of offshore income gain.

        2. 762. Offshore income gains accruing to persons resident or domiciled abroad.

        3. 762ZA.Offshore income gains: application of transfer of assets abroad provisions

        4. 762ZB.Income treated as arising under section 761(1): remittance basis

        5. 762A.Exchange of interests of different classes

        6. 763. Deduction of offshore income gain in determining capital gain.

        7. 764. Offshore income gains of trustees.

    6. CHAPTER VI MISCELLANEOUS

      1. Migration etc. of company

        1. 765. Migration etc. of companies.

        2. 765A. Movements of capital between residents of member States.

        3. 766. Offences under section 765.

        4. 767. Interpretation and commencement of sections 765 and 766.

      2. Change in ownership of company

        1. 767A. Change in company ownership: corporation tax.

        2. 767AA. Change in company ownership: postponed corporation tax.

        3. 767B. Change of company ownership: supplementary.

        4. 767C. Change in company ownership: information.

        5. 768. Change in ownership of company: disallowance of trading losses.

        6. 768A.Change in ownership: disallowance of carry back of trading losses.

        7. 768B.Change in ownership of company with investment business: deductions generally

        8. 768C. Deductions: asset transferred within group.

        9. 768D. Change in ownership of company carrying on property business.

        10. 768E. Change in ownership of company with unused non-trading loss on intangible fixed assets

        11. 769. Rules for ascertaining change in ownership of company.

      3. Transactions between associated persons

        1. 770A. Provision not at arm’s length.

        2. 770. Sales etc. at an undervalue or overvalue.

        3. 771.Transactions by petroleum companies.

        4. 772. Information for purposes of section 770, and appeals.

        5. 773. Interpretation of sections 770 and 771.

        6. 774. Transactions between dealing company and associated company.

      4. Factoring of income receipts etc

        1. 774A.Meaning of “structured finance arrangement” for purposes of s.774B

        2. 774B.Disregard of intended effects of arrangement involving disposals of assets

        3. 774C.Meaning of “structured finance arrangement” for purposes of s.774D

        4. 774D.Disregard of intended effects of arrangement involving change in relation to a partnership

        5. 774E.Sections 774B and 774D: exceptions

        6. 774F.Sections 774B and 774D: power to provide further exceptions

        7. 774G.Sections 774A to 774D: minor definitions etc

      5. Other provisions

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

        2. 775A.Transfers of rights to receive annual payments

        3. 776. Transactions in land: taxation of capital gains.

        4. 777. Provisions supplementary to section 776.

        5. 778. Power to obtain information.

        6. 779. Sale and leaseback: limitation on tax reliefs.

        7. 780. Sale and leaseback: taxation of consideration received.

        8. 781. Assets leased to traders and others.

        9. 782. Leased assets: special cases.

        10. 783. Leased assets: supplemental.

        11. 784. Leased assets subject to hire-purchase agreements.

        12. 785. Meaning of “asset”, “capital sum” and “lease” for purposes of sections 781 to 784.

        13. 785ZA.Restrictions on use of losses: leasing partnerships

        14. 785ZB.Section 785ZA: definitions

        15. 785A.Rent factoring of leases of plant or machinery

        16. 785B.Plant and machinery leases: capital receipts to be treated as income

        17. 785C.Section 785B: interpretation

        18. 785D.Section 785B: lease of plant and machinery and other property

        19. 785E.Section 785B: expectation that relevant capital payment will not be paid

        20. 786. Transactions associated with loans or credit.

        21. 787. Restriction of relief for payments of interest.

  19. PART XVIII DOUBLE TAXATION RELIEF

    1. CHAPTER I THE PRINCIPAL RELIEFS

      1. 788. Relief by agreement with other territories.

      2. 789. Arrangements made under old law.

      3. 790. Unilateral relief.

      4. 791. Power to make regulations for carrying out section 788.

    2. CHAPTER II RULES GOVERNING RELIEF BY WAY OF CREDIT

      1. General

        1. 792. Interpretation of credit code.

        2. 793. Reduction of United Kingdom taxes by amount of credit due.

        3. 793A. No double relief etc.

        4. 794. Requirement as to residence.

        5. 795. Computation of income subject to foreign tax.

        6. 795A. Limits on credit: minimisation of the foreign tax.

        7. 796. Limits on credit: income tax.

        8. 797. Limits on credit: corporation tax.

        9. 797A. Foreign tax on items giving rise to a non-trading credit : loan relationships.

        10. 797B. Foreign tax on items giving rise to a non-trading credit: intangible fixed assets

        11. 798.Section 796: trade income

        12. 798A. Section 797: trade income

        13. 798B. Section 798A: special cases

        14. 798C.Disallowed credit: use as deduction

      2. Tax underlying dividends

        1. 799. Computation of underlying tax.

        2. 800. Dividends paid between related companies but not covered by arrangements.

        3. 801. Dividends paid between related companies: relief for U.K. and third country taxes.

        4. 801A. Restriction of relief for underlying tax.

        5. 801B. Dividends paid out of transferred profits.

        6. 801C. Separate streaming of dividend so far as representing an ADP dividend of a CFC.

        7. 802. U.K. insurance companies trading overseas.

        8. 803. Underlying tax reflecting interest on loans.

        9. 803A. Foreign taxation of group as a single entity.

      3. Miscellaneous rules

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

        2. 804ZA.Schemes and arrangements designed to increase relief

        3. 804ZB.Effect of notice under section 804ZA

        4. 804ZC.Notices under section 804ZA: further provision

        5. 804A.Life assurance companies with overseas branches etc: restriction of credit.

        6. 804B. Insurance companies carrying on more than one category of business: restriction of credit.

        7. 804C. Insurance companies: allocation of expenses etc in computations under section 35 of CTA 2009.

        8. 804D. Interpretation of section 804C in relation to life assurance business etc.

        9. 804E. Interpretation of section 804C in relation to other insurance business.

        10. 804F. Interpretation of sections 804A to 804E.

        11. 804G.Reduction in credit: payment by reference to foreign tax

        12. 805. Elections against credit.

        13. 806. Time limit for claims etc.

      4. Foreign dividends: onshore pooling and utilisation of eligible unrelieved foreign tax

        1. 806A. Eligible unrelieved foreign tax on dividends: introductory.

        2. 806B. The amounts that are eligible unrelieved foreign tax.

        3. 806C. Onshore pooling.

        4. 806D. Utilisation of eligible unrelieved foreign tax.

        5. 806E. Rules for carry back of relievable tax under section 806D.

        6. 806F. Credit to be given for underlying tax before other foreign tax etc.

        7. 806G. Claims for the purposes of section 806D(4) or (5).

        8. 806H. Surrender of relievable tax by one company in a group to another.

        9. 806J. Interpretation of foreign dividend provisions of this Chapter.

      5. Application of foreign dividend provisions to branches or agencies in the UK of persons resident elsewhere

        1. 806K. Application of foreign dividend provisions to branches or agencies in the UK of persons resident elsewhere.

      6. Unrelieved foreign tax: profits of overseas branch or agency

        1. 806L. Carry forward or carry back of unrelieved foreign tax.

        2. 806M. Provisions supplemental to section 806L.

    3. CHAPTER III MISCELLANEOUS PROVISIONS

      1. 807. Sale of securities with or without accrued interest.

      2. 807A. Disposals and acquisitions of company loan relationships with or without interest.

      3. European cross-border transfers of business

        1. 807B.Introduction to section 807C

        2. 807C.Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets

      4. European cross-border mergers

        1. 807D.Introduction to section 807E

        2. 807E.Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets

      5. Transparent entities involved in cross-border transfers and mergers

        1. 807F.Introduction to section 807G

        2. 807G.Tax treated as chargeable in respect of relevant transactions

      6. 808. Restriction on deduction of interest or dividends from trading income.

      7. 808A. Interest: special relationship.

      8. 808B. Royalties: special relationship.

      9. 809. Relief in respect of discretionary trusts.

      10. 810. Postponement of capital allowances to secure double taxation relief.

      11. 811. Deduction for foreign tax where no credit allowable.

      12. 812. Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.

      13. 813. Recovery of tax credits incorrectly paid.

      14. 814. Arrangements to avoid section 812.

      15. 815. Power to inspect documents.

      16. 815A. Transfer of a non-UK trade.

      17. 815AZA.UK residents and foreign enterprises

      18. 815AA. Mutual agreement procedure and presentation of cases under arrangements.

      19. 815B. The Arbitration Convention.

      20. 815C. Exchange of information with other territories.

      21. 816. Disclosure of information.

  20. PART XIX SUPPLEMENTAL

    1. Miscellaneous

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

      2. 818. Arrangements for payments of interest less tax or of fixed net amount.

      3. 819. Old references to standard rate tax.

      4. 820. Application of Income Tax Acts from year to year.

      5. 821. Under-deductions from payments made before passing of annual Act.

      6. 822. Over-deductions from interest on loan capital etc. made before passing of annual Act.

      7. 823. Adjustments of reliefs where given at different times.

      8. 824. Repayment supplements: individuals and others.

      9. 825. Repayment supplements: companies.

      10. 826. Interest on tax overpaid.

      11. 826A. Interest on payments in respect of corporation tax and meaning of “the material date".

      12. 827. VAT penalties etc.

      13. 827A.Territorial scope of charges under certain provisions to which section 836B applies

      14. 828. Orders and regulations made by the Treasury or the Board.

      15. 829. Application of Income Tax Acts to public departments and avoidance of exempting provisions.

      16. 830. Territorial sea . . . .

    2. Interpretation

      1. 831. Interpretation of this Act.

      2. 832. Interpretation of the Corporation Tax Acts etc.

      3. 833. Interpretation of Income Tax Acts.

      4. 834. Interpretation of the Corporation Tax Acts.

      5. 834A.Miscellaneous charges (list for the purposes of certain provisions that formerly referred to Case VI of Schedule D)

      6. 834B.Meaning of “UK property business” and “overseas property business”

      7. 834C.Total profits

      8. 835.“Total income” in the Income Tax Acts.

      9. 836. Returns of total income.

      10. 836A. Generally accepted accounting practice

      11. 836B.Table of provisions to which this section applies

      12. 837.“Annual value” of land.

      13. 837A. Meaning of “research and development”.

      14. 837B. Meaning of “oil and gas exploration and appraisal”.

      15. 837C.Meaning of “offshore installation”

      16. 838. Subsidiaries.

      17. 839. Connected persons.

      18. 840. Meaning of “control” in certain contexts.

      19. 840ZA.Meaning of “tax advantage”

      20. 840A. Banks.

      21. 841.Meaning of “recognised stock exchange” etc

      22. 841A. Recognised clearing systems.

      23. 842. Investment trusts.

      24. 842AA. Venture capital trusts.

      25. 842A. Local authorities.

      26. 842B. Meaning of . . . “property investment LLP”

    3. Commencement, savings, repeals etc.

      1. 843. Commencement.

      2. 844. Savings, transitional provisions, consequential amendments and repeals.

      3. 845. Short title.

  21. SCHEDULES

    1. SCHEDULE A1

      Determination of profits attributable to permanent establishment: supplementary provisions

      1. Part 1 Introduction

        1. Introduction

          1. 1.(1) The provisions of this Schedule have effect for supplementing...

      2. Part 2 General provisions

        1. Transactions treated as taking place at arm’s length

          1. 2.In accordance with the separate enterprise principle, transactions between the...

        2. Application of general provision as to allowable deductions

          1. 3.(1) Section 11AA(4) (general provision as to allowable deductions) applies...

        3. Prohibition of deductions for payments in respect of intangible assets

          1. 4.(1) No deduction is allowed in respect of royalties paid,...

        4. Prohibition of deductions for interest or other financing costs

          1. 5.(1) No deduction is allowed in respect of payments of...

        5. Provision of goods or services for permanent establishment

          1. 6.(1) This paragraph applies where the non-resident company provides the...

      3. Part 3 Provisions applicable to non-resident banks

        1. Application of this Part

          1. 7.(1) The provisions of this Part of this Schedule have...

        2. Non-resident banks: transfer of financial assets

          1. 8.(1) In accordance with the separate enterprise principle, transfers of...

        3. Loans by non-resident banks: attribution of financial assets and profits arising

          1. 9.(1) In accordance with the separate enterprise principle, loans and...

        4. Borrowing by non-resident banks: permanent establishment acting as agent or intermediary

          1. 10.(1) This paragraph applies where a permanent establishment—

    2. SCHEDULE A2

      Corporation tax: the non-corporate distribution rate: supplementary provisions

      1. Part 1 General provisions

        1. Introduction

          1. 1.The provisions of this Schedule supplement section 13AB (corporation tax:...

        2. Meaning of “non-corporate distribution”

          1. 2.(1) A “non-corporate distribution” means a distribution made by a...

        3. Calculation of company’s “underlying rate of corporation tax”

          1. 3.(1) A company’s underlying rate of corporation tax for an...

        4. Matching: distributions not exceeding basic profits

          1. 4.Where in an accounting period the total amount of the...

        5. Matching: distributions exceeding basic profits

          1. 5.Where in an accounting period the total amount of the...

      2. Part 2 Allocation of excess NCDs to other companies

        1. Allocation of excess NCDs to other companies

          1. 6.(1) This Part of this Schedule provides for the allocation...

        2. Allocation of excess NCDs to other group companies

          1. 7.(1) If at the end of the distribution period the...

        3. Allocation of excess NCDs: period or periods to which amount to be allocated

          1. 8.(1) Excess NCDs falling to be allocated to another company...

        4. Allocation of excess NCDs: degrouping

          1. 9.(1) This paragraph applies where a company (“company A”) ceases...

        5. Allocation of excess NCDs: procedure

          1. 10.(1) The basic rule is that the allocation of excess...

        6. Allocation of excess NCDs: amounts proving to be excessive

          1. 11.(1) This paragraph applies where an amount of excess NCDs...

        7. Allocation of excess NCDs to companies not resident in the United Kingdom

          1. 12.(1) The provisions of this Part of this Schedule as...

      3. Part 3 Other supplementary provisions

        1. Carry forward of excess NCDs

          1. 13.(1) Any excess NCDs not allocated to another company under...

        2. Definition of a group

          1. 14.(1) For the purposes of section 13AB and this Schedule...

        3. Accounting period treated as ending if company ceases to be a member of a group

          1. 15.(1) Section 13AB and this Schedule apply in relation to...

        4. Treatment of distributions made otherwise than in an accounting period

          1. 16.For the purposes of section 13AB and this Schedule, a...

        5. Holding companies treated as carrying on a business

          1. 17.(1) For the purposes of section 13AB and this Schedule...

        6. Interpretation

          1. 18.In section 13AB and this Schedule— “basic profits” means the...

    3. SCHEDULE 1

      1. Expenditure before 1964-65: deductions from rents

        1. 1.(1) Except as provided by sub-paragraphs (2) and (3) below,...

      2. Expenditure before 1964-65: deductions from other receipts

        1. 2.(1) Subject to sub-paragraph (2) below, no payment shall be...

      3. Expenditure on sea walls before 1964-65

        1. 3.(1) Section 30 shall not apply in relation to expenditure...

    4. SCHEDULE 2

    5. SCHEDULE 3

      1. PART I PUBLIC REVENUE DIVIDENDS ETC. PAYABLE TO THE BANK OF ENGLAND OR THE BANK OF IRELAND OR ENTRUSTED FOR PAYMENT TO THE BANK OF ENGLAND, THE BANK OF IRELAND OR THE NATIONAL DEBT COMMISSIONERS

        1. 1.The Bank of England and the Bank of Ireland as...

        2. 2.(1) In the case of dividends and profits attached thereto...

        3. 3.Money set apart or retained under paragraph 2 above, and...

        4. 4.No deduction of income tax under this Part of this...

      2. PART II PUBLIC REVENUE DIVIDENDS PAYABLE BY PUBLIC OFFICES AND DEPARTMENTS

        1. 5.Where any payment is made of public revenue dividends payable...

      3. PART III OTHER PUBLIC REVENUE DIVIDENDS, FOREIGN DIVIDENDS AND PROCEEDS OF COUPONS

        1. 6.(1) The following persons are chargeable persons for the purposes...

        2. 6A.(1) On the fourteenth day following the month in which...

        3. 6B.Any tax due under paragraph 6A above shall carry interest,...

        4. 6C.(1) For each quarter in which a person effects a...

        5. 6D.(1) Any income tax which has become due under paragraph...

        6. 6E.(1) None of the provisions of section 29 of the...

        7. 6F.If a person has made a payment purporting to be...

        8. 7.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        9. 8.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        10. 9.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        11. 10.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        12. 11.Nothing in paragraphs 6 to 6F above shall impose on...

        13. 12.Where income tax in respect of the proceeds of the...

        14. 13.(1) . . . ,the Board may, by notice served...

        15. 14.In this Part of this Schedule— “dividends” includes foreign dividends,...

      4. PART IV INTEREST PAYABLE OUT OF THE PUBLIC REVENUE OF THE REPUBLIC OF IRELAND ETC.

        1. 15.(1) Any person who is entrusted with the payment of...

    6. SCHEDULE 4

      1. Interpretation

        1. 1.(1) For the purposes of this Schedule—

      2. Charge to tax after acquisition of certain securities

        1. 2.(1) This sub-paragraph applies to deep discount securities issued by...

        2. 3.(1) Where a person acquires a chargeable security, the chargeable...

      3. Charge to tax on disposal of securities

        1. 4.(1) On the disposal by any person of any deep...

      4. Deduction of income element from total profits of company and allowance as charge on income

        1. 5.(1) In computing the corporation tax chargeable for any accounting...

        2. 6.(1) Section 494 shall apply in relation to income elements...

      5. Disposals

        1. 7.(1) Subject to sub-paragraphs (2) and (3) below, there is...

        2. 8.(1) Where any deep discount security is disposed of and...

      6. Securities issued and owned by associated companies or group companies

        1. 9.(1) Where a deep discount security issued by a company...

      7. Close companies

        1. 10.(1) Where a deep discount security issued by a close...

      8. Early redemption

        1. 11.(1) Where any deep discount security issued by a company...

        2. 11A.Where any deep discount security issued by a public body...

      9. Issue price

        1. 11B.(1) This paragraph applies where— (a) securities (old securities) of...

      10. Identification of securities disposed of

        1. 12.The rules contained in section 108 of the 1992 Act...

      11. Information

        1. 13.(1) Every company which issues deep discount securities shall cause...

      12. Charities

        1. 14.A charity shall be exempt from income tax in respect...

      13. Retirement benefit schemes

        1. 15.(1) In a case where— (a) paragraph 4 above would...

      14. Stock lending

        1. 16.(1) In a case where— (a) a security is the...

      15. Trustees

        1. 17.(1) Where on the disposal by trustees of a deep...

      16. Underwriters

        1. 18.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      17. Gilts: special rules

        1. 19.(1) In a case where— (a) securities have been issued...

      18. Non-gilts: special rules

        1. 20.(1) In a case where— (a) all the securities issued...

      19. Convertible securities: special rules

        1. 21.In a case where— (a) a security is a qualifying...

    7. SCHEDULE 4AA

      1. Introductory

        1. 1.(1) This Schedule forms part of the SIP code (see...

      2. Deduction for providing free or matching shares

        1. 2.(1) Where, under an approved share incentive plan, shares are...

      3. Deduction for additional expenses in providing partnership shares

        1. 3.(1) Where under an approved share incentive plan—

      4. Cases in which no deduction is allowed

        1. 4.(1) No deduction is allowed under paragraph 2 or 3...

      5. No deduction for expenses in providing dividend shares

        1. 5.(1) No deduction is allowed for expenses in providing shares...

      6. Treatment of forfeited shares

        1. 6.(1) This paragraph applies if any of a participant’s plan...

      7. Deduction for costs of setting up the plan

        1. 7.(1) A deduction is allowed under this paragraph for expenses...

      8. Deductions for contributions to running expenses of plan

        1. 8.(1) Nothing in this Schedule affects any deduction for expenses...

      9. Deduction for contribution to plan trust

        1. 9.(1) A deduction is allowed to a company under this...

      10. Withdrawal of deduction under paragraph 9

        1. 10.(1) The Inland Revenue may by notice direct that the...

      11. Withdrawal of deductions on withdrawal of approval

        1. 11.(1) If approval of a share incentive plan is withdrawn...

      12. Termination of plan: shares acquired as mentioned in paragraph 9 but not yet awarded

        1. 12.(1) This paragraph applies where the company has issued a...

      13. Application of provisions to expenses of management of companies with investment business etc

        1. 13.(1) The provisions of this Schedule apply in relation to—...

    8. SCHEDULE 4A

      CREATIVE ARTISTS: RELIEF FOR FLUCTUATING PROFITS

      1. 1.Introduction

      2. 2.Qualifying trade, profession or vocation

      3. 3.Circumstances in which claim may be made

      4. 4.Years in respect of which claim may be made

      5. 5.Time limit for claim

      6. 6.Adjustment of profits on averaging claim

      7. 7.How averaging claim is given effect

      8. 8.Extension of time for making other claims

      9. 9.Giving effect to late claim for other relief

      10. 10.Effect of later adjustment of profits

      11. 11.Interpretation of references to profits

      12. 12.Interpretation of references to amount chargeable to tax

      13. 13.Meaning of “claim” and “associated claim”

      14. 14.Meaning of “tax year”

    9. SCHEDULE 5

      1. Farming: the general rule

        1. 1.(1) Subject to the provisions of this Schedule, in computing...

      2. Farming: election for the herd basis

        1. 2.(1) An election for the herd basis shall apply to...

        2. 3.(1) Where an election for the herd basis has effect,...

      3. Farming: provisions applicable to special cases

        1. 4.A farmer who, having kept a production herd of a...

        2. 5.(1) Where a farmer transfers to another person all or...

        3. 6.(1) Where the whole or a substantial part of a...

      4. Exclusion of working animals, and interpretation of preceding provisions

        1. 7.Nothing in this Schedule applies to any animals kept wholly...

        2. 8.(1) In this Schedule “herd” includes a flock, and any...

      5. Application of preceding provisions to trades other than farming, creatures other than animals, and animals and creatures kept singly

        1. 9.(1) The preceding provisions of this Schedule shall, with the...

      6. Supplemental and saving

        1. 10.Where an election for the herd basis is made, every...

        2. 11.Where an election for the herd basis has effect for...

        3. 12.The validity of an election for the herd basis in...

    10. SCHEDULE 5AA

      1. Charge to tax etc.

        1. 1.(1) Subject to sub-paragraph (2) below, profits and gains arising...

      2. Transactions to which Schedule applies

        1. 2.(1) This Schedule applies to a transaction if—

      3. Production of guaranteed return

        1. 3.(1) For the purposes of this Schedule a guaranteed return...

      4. Disposals of futures or options

        1. 4.(1) For the purposes of this Schedule a disposal is...

      5. Futures running to delivery and options exercised

        1. 4A.(1) This paragraph applies where for the purposes of this...

      6. The return from one or more disposals

        1. 5.(1) In this Schedule references to the return from one...

      7. Related transactions

        1. 6.(1) For the purposes of this Schedule two or more...

      8. Special rule for trusts

        1. 7.(1) Where any profits or gains are treated, in accordance...

      9. Transfer of assets abroad

        1. 8.For the purpose of determining whether an individual ordinarily resident...

      10. Apportionment in the case of insurance companies

        1. 9.(1) This paragraph applies where— (a) any determination falls to...

    11. SCHEDULE 5A

      Stock lending: interest on cash collateral

      1. Introductory

        1. 1.(1) In this Schedule— (a) “approved stock lending arrangement” means...

      2. Treatment of interest earned on cash collateral

        1. 2.(1) This paragraph applies where in connection with an approved...

      3. Application of paragraph 2 in case of chain of arrangements

        1. 3.(1) Where the lender under one or more approved stock...

      4. Interpretation

        1. 4.In this Schedule— “relief” means relief by way of— deduction...

    12. SCHEDULE 6

      1. Part I Tables of Flat Rate Cash Equivalents

      2. PART II SUPPLEMENTARY PROVISIONS

      3. Cash equivalent

        1. 1.(1) The cash equivalent of the benefit is the appropriate...

      4. The appropriate percentage

        1. 2.The appropriate percentage for the year is determined in accordance...

      5. Car with CO2 emissions figure

        1. 3.(1) This paragraph applies where— (a) the car—

      6. The lower threshold

        1. 4.(1) For the purposes of paragraph 3 above the lower...

      7. Bi-fuel cars

        1. 5.Where the car— (a) is first registered on or after...

      8. Automatic cars made available to disabled drivers

        1. 5A.(1) Sub-paragraph (2) below applies where— (a) paragraph 3 above...

      9. “EC certificate of conformity", “EC type-approval certificate" and “UK approval certificate"

        1. 5B.In this Schedule— “EC certificate of conformity” means a certificate...

      10. Car with no CO2 emissions figure

        1. 5C.(1) This paragraph applies where— (a) the car is first...

      11. Diesel car supplement

        1. 5D.(1) This paragraph applies where the car—

      12. Discounts

        1. 5E.The Treasury may by regulations provide for the value of...

      13. Car registered before 1st January 1998

        1. 5F.(1) This paragraph applies where the car was first registered...

      14. Electrically propelled vehicle

        1. 5G.For the purposes of this Schedule, a vehicle is not...

      15. Reduction for periods when car unavailable

        1. 6.Subject to paragraph 7 below, where for any part of...

      16. Reduction for payments for use of car

        1. 7.(1) Where in the year concerned the employee is required,...

      17. Replacement cars

        1. 8.The Treasury may by regulations provide that where—

      18. Meaning of “unavailable”

        1. 9.For the purposes of this Schedule a car is to...

      19. General

        1. 10.For the purposes of this Schedule a car is available...

    13. Schedule 6A

      1. Part I Basic Case

        1. Cash equivalent

          1. 1.(1) This paragraph applies where the van mentioned in section...

        2. Reductions for periods where van unavailable

          1. 2.(1) Subject to paragraph 3 below, where paragraph 1 above...

        3. Reduction for payments for use of van

          1. 3.(1) Where paragraph 1 above applies and in the year...

      2. Part II SHARED VANS

        1. Introduction

          1. 4.(1) This Part of this Schedule applies to a van...

        2. Benefit to employee

          1. 5.(1) This paragraph applies where for any year this Part...

        3. Basic value

          1. 6.(1) Subject to sub-paragraph (2) below, the basic value of...

        4. Limit of benefit

          1. 7.Where (apart from this paragraph) the figure found under paragraph...

        5. Alternative calculation

          1. 8.(1) In a case where— (a) a figure is found...

        6. Reduction for payments for use

          1. 9.(1) Where this Part of this Schedule applies and in...

      3. Part III GENERAL

        1. Interaction of Parts I and II

          1. 10.(1) This paragraph applies where— (a) a cash equivalent of...

        2. Limit of cash equivalent

          1. 11.In a case where— (a) the cash equivalent of the...

        3. Interpretation

          1. 12.For the purposes of this Schedule a van is available...

    14. SCHEDULE 7

      1. PART I MEANING OF “OBTAINED BY REASON OF EMPLOYMENT”

        1. 1.(1) Subject to sub-paragraph (5) below, the benefit of a...

        2. 2.In paragraph 1 above— (a) references to a loan being...

      2. PART II CALCULATION OF CASH EQUIVALENT OF LOAN BENEFIT

        1. General

          1. 3.(1) The cash equivalent for any year of the benefit...

        2. Normal method of calculation (averaging)

          1. 4.(1) In the absence of a requirement or election that...

        3. Election for alternative method of calculation

          1. 5.(1) For any year of assessment (“the relevant year”) the...

        4. Apportionment of cash equivalent in case of joint loan etc.

          1. 5A.(1) Where in any year there are two or more...

      3. PART III EXCEPTIONS WHERE INTEREST ELIGIBLE FOR RELIEF

        1. 6.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        2. 7.Section 160(1) does not apply to a loan in any...

        3. 8.Where for any year interest is paid on a loan...

        4. 9.(1) Where for any year— (a) no interest is paid...

        5. 10.(1) If— (a) a person has a loan on which...

        6. 11.(1) Where in any year a person has, alone or...

        7. 12.References in paragraphs 10 and 11 above to a husband...

        8. 13.This Part of this Schedule is subject to the provisions...

      4. PART IV INTEREST ELIGIBLE FOR TAX RELIEF: CONSEQUENCES OF RESTRICTION OF RELIEF TO TAX AT THE BASIC RATE ONLY

        1. 14.This Part of this Schedule applies in relation to the...

        2. 15.Where this Part of this Schedule applies in relation to...

        3. 16.(1) Where, by virtue only of paragraph 15 above, paragraph...

        4. 17.Paragraph 15 above shall not prevent paragraph 7, 8 or...

        5. 18.If, in the case of the employee, there is a...

      5. PART V INTERPRETATION

        1. 19.(1) In this Schedule— “eligible for relief” shall be construed...

    15. SCHEDULE 7A

      Beneficial loans: loans on ordinary commercial terms

      1. Introduction

        1. 1.For the purposes of section 161B(1) a loan “on ordinary...

      2. Requirements relating to original loan

        1. 2.(1) This paragraph applies to any loan and the relevant...

      3. Requirements relating to loan varied before 6th April 2000

        1. 3.(1) This paragraph applies to a loan that has been...

      4. Requirements relating to loan varied on or after 6th April 2000

        1. 4.(1) The requirements of this paragraph apply to a loan...

      5. Disregard of certain penalties, fees, etc.

        1. 5.Amounts incurred by the person to whom a loan is...

      6. Meaning of 'member of the public’

        1. 6.For the purposes of this Schedule a “member of the...

    16. SCHEDULE 8

      1. Form

        1. 1.The terms of the scheme must be set out in...

      2. Employer and employment unit

        1. 2.The scheme must identify the scheme employer.

        2. 3.If the scheme employer does not pay the emoluments of...

        3. 4.(1) The scheme must identify the undertaking to which the...

      3. Employees

        1. 5.The scheme must contain provisions by reference to which the...

        2. 6.The scheme must contain provisions ensuring that no payments are...

        3. 7.(1) The scheme must contain provisions ensuring that no payments...

        4. 8.The persons within this paragraph are any of the following...

      4. Profit periods

        1. 9.The scheme must identify the accounting period or periods by...

        2. 10.(1) Subject to sub-paragraphs (2) and (3) below, any such...

      5. Distributable pool

        1. 11.The scheme must contain provisions by reference to which the...

        2. 12.Except where the scheme is a replacement scheme (within the...

        3. 13.(1) Method A is that the distributable pool is equal...

        4. 13A.(1) Where a scheme includes provision by virtue of paragraph...

        5. 14.(1) Method B is that the distributable pool is—

        6. 14A.(1) Where a scheme includes provision to give effect to...

        7. 15.If the scheme is a replacement scheme (within the meaning...

      6. Payment from distributable pool etc.

        1. 16.The scheme must provide for the whole of the distributable...

        2. 17.The scheme must make provision as to when payments will...

        3. 18.(1) The provisions of the scheme must be such that...

      7. Ascertainment of profits

        1. 19.(1) The scheme must provide for the preparation of a...

        2. 19A.(1) The Treasury may by order amend paragraph 19 above...

        3. 20.(1) The scheme must provide that, in preparing a profit...

      8. Parts of undertakings

        1. 21.(1) This paragraph shall apply to a scheme if the...

        2. 22.(1) Where paragraph 21 above applies to a scheme, the...

        3. 23.(1) In a case where— (a) paragraph 21 above applies...

        4. 24.(1) In a case where— (a) paragraph 21 above applies...

    17. SCHEDULE 9

      APPROVED SHARE OPTION SCHEMES AND PROFIT SHARING SCHEMES

      1. PART I GENERAL

        1. 1.(1) Subject to the provisions of this Schedule, on the...

        2. 2.(1) The Board shall not approve a scheme under this...

        3. 3.(1) If, at any time after the Board have approved...

        4. 4.If an alteration is made in the scheme at any...

        5. 5.If aggrieved— (a) in any case, by the failure of...

        6. 6.The Board may by notice require any person to furnish...

      2. PART II REQUIREMENTS GENERALLY APPLICABLE

        1. 7.The provisions of this Part apply in relation to all...

        2. 8.The scheme must not provide for any person to be...

        3. 8A.(1) In the case of a savings-related share option scheme...

        4. 9.(1) A share option scheme must provide for directors and...

        5. 10.Scheme shares must form part of the ordinary share capital...

        6. 11.Scheme shares must be— (a) shares of a class listed...

        7. 11A.(1) In the case of a profit sharing scheme, scheme...

        8. 12.(1) Scheme shares must be— (a) fully paid up;

        9. 13.(1) In determining, in the case of a share option...

        10. 14.(1) Except where scheme shares are shares in a company...

        11. 15.(1) Except in the case of a profit sharing scheme,...

      3. PART III REQUIREMENTS APPLICABLE TO SAVINGS-RELATED SHARE OPTION SCHEMES

        1. 16.(1) The scheme must provide for the scheme shares to...

        2. 17.Subject to paragraphs 18 to 21 below, the rights obtained...

        3. 18.The scheme must provide that if a person who has...

        4. 19.The scheme must provide that if a person who has...

        5. 20.The scheme must provide that where a person who has...

        6. 21.(1) The scheme may provide that— (a) if any person...

        7. 22.Except as provided in paragraph 18 above, rights obtained by...

        8. 23.No person shall be treated for the purposes of paragraph...

        9. 24.(1) The scheme must provide for a person’s contributions under...

        10. 25.The price at which scheme shares may be acquired by...

        11. 26.(1) Subject to paragraph 8 above, every person who—

      4. PART IV REQUIREMENTS APPLICABLE TO OTHER SHARE OPTION SCHEMES

        1. 27.(1) A person must not be eligible to obtain rights...

        2. 28.(1) The scheme must provide that no person shall obtain...

        3. 29.(1) The price at which scheme shares may be acquired...

      5. PART V REQUIREMENTS APPLICABLE TO PROFIT SHARING SCHEMES

        1. 30.(1) The scheme must provide for the establishment of a...

        2. 31.The trust instrument shall provide that, as soon as practicable...

        3. 32.(1) The trust instrument must contain a provision prohibiting the...

        4. 33.The trust instrument must contain a provision requiring the trustees—...

        5. 34.The trust instrument must impose an obligation on the trustees—...

        6. 35.(1) An individual shall not be eligible to have shares...

        7. 36.(1) Subject to paragraphs 8 and 35 above, every person...

      6. PART VI MATERIAL INTEREST TEST

        1. Interests under trusts

          1. 37.(1) This paragraph applies in a case where—

        2. Options etc.

          1. 38.(1) For the purposes of section 187(3)(a) a right to...

        3. Shares held by trustees of approved profit sharing schemes

          1. 39.In applying section 187(3), as respects any time before or...

        4. Shares subject to an employee benefit trust

          1. 40.(1) Where an individual has an interest in shares or...

    18. SCHEDULE 10

      FURTHER PROVISIONS RELATING TO PROFIT SHARING SCHEMES

      1. Limitations on contractual obligations of participants

        1. 1.(1) Any obligation placed on the participant by virtue of...

      2. The period of retention

        1. 2.For the purposes of any of the relevant provisions, “the...

      3. The appropriate percentage

        1. 3.(1) For the purposes of any of the relevant provisions...

        2. 3A.(1) In paragraph 3 above the reference to the relevant...

      4. Capital receipts

        1. 4.(1) Money or money’s worth is not a capital receipt...

      5. Company reconstructions

        1. 5.(1) This paragraph applies where there occurs in relation to...

        2. 5A.(1) Paragraph 5(2) to (6) above apply where there occurs...

      6. Excess or unauthorised shares

        1. 6.(1) This paragraph applies in any case where—

      7. P.A.Y.E. deduction of tax

        1. 7.(1) Subject to sub-paragraphs (4) and (5) below, where the...

    19. Schedule 11

      1. Introductory

        1. 1.The provisions of this Schedule supplement the provisions of section...

      2. Payments and other benefits to which section 148 applies

        1. 2.(1) Section 148 applies to all payments and other benefits...

      3. Payments and other benefits excluded from charge under section 148

        1. 3.Tax is not charged under section 148 on a payment...

        2. 4.(1) Tax is not charged under section 148 on a...

        3. 5.Tax is not charged under section 148 on a payment...

        4. 6.(1) Tax is not charged under section 148 on—

      4. Application of £30,000 threshold

        1. 7.(1) This pargraph specifies how the £30,000 threshold in section...

        2. 8.(1) For the purposes of paragraph 7(2)(b) employers are associated...

      5. Exclusion or reduction of charge in case of foreign service

        1. 9.(1) If the employee’s service in the employment in respect...

        2. 10.Tax is not charged under section 148 if foreign service...

        3. 11.(1) Where there is foreign service and paragraph 10 does...

      6. Valuation of benefits

        1. 12.(1) For the purposes of section 148, the amount of...

      7. Notional interest treated as paid if amount charged in respect of beneficial loan

        1. 13.(1) This paragraph applies where a person is chargeable to...

      8. Giving effect to the charge to tax

        1. 14.(1) Tax under section 148 is charged on the employee...

      9. Reporting requirements

        1. 15.Provision may be made by regulations under section 203(2) requiring...

      10. Interpretation

        1. 16.In this Schedule— “the relevant date” means the date of...

    20. SCHEDULE 11A

      1. Part I TAX RELIEF

        1. 1.(1) Where by reason of a person’s employment—

        2. 2.(1) This paragraph applies where— (a) any payment or benefit...

      2. Part II QUALIFYING EXPENSES AND QUALIFYING BENEFITS

        1. Qualifying removal expenses

          1. 3.(1) Expenses are not qualifying removal expenses unless they are...

        2. Qualifying removal benefits

          1. 4.(1) A benefit is not a qualifying removal benefit unless...

        3. Connection with employment

          1. 5.(1) The change of residence mentioned in paragraphs 3(2) and...

        4. The relevant day

          1. 6.(1) Subject to sub-paragraph (2) below, the relevant day, in...

      3. Part III ELIGIBLE REMOVAL EXPENSES

        1. Introduction

          1. 7.Expenses are eligible removal expenses if they fall into one...

        2. Expenses of disposal

          1. 8.(1) Expenses fall within paragraph 7(a) above if (and only...

        3. Expenses of acquisition

          1. 9.(1) Expenses fall within paragraph 7(b) above if (and only...

        4. Expenses of abortive acquisition

          1. 10.Expenses fall within paragraph 7(c) above if (and only if)—...

        5. Expenses of transporting belongings

          1. 11.(1) Expenses fall within paragraph 7(d) above if (and only...

        6. Travelling and subsistence expenses

          1. 12.(1) Expenses fall within paragraph 7(e) above if (and only...

        7. Bridging loan expenses

          1. 13.(1) Expenses fall within paragraph 7(f) above if (and only...

        8. Duplicate expenses

          1. 14.(1) Expenses fall within paragraph 7(g) above if (and only...

        9. Power to amend

          1. 15.(1) The Treasury may make regulations amending the preceding provisions...

      4. Part IV ELIGIBLE REMOVAL BENEFITS

        1. Introduction

          1. 16.Benefits are eligible removal benefits if they fall into one...

        2. Benefits in respect of disposal

          1. 17.(1) A benefit falls within paragraph 16(a) above if (and...

        3. Benefits in respect of acquisition

          1. 18.(1) A benefit falls within paragraph 16(b) above if (and...

        4. Benefits in respect of abortive acquisition

          1. 19.A benefit falls within paragraph 16(c) above if (and only...

        5. Benefits in respect of the transporting of belongings

          1. 20.(1) A benefit falls within paragraph 16(d) above if (and...

        6. Travelling and subsistence benefits

          1. 21.(1) A benefit falls within paragraph 16(e) above if (and...

        7. Benefits in respect of new residence

          1. 22.(1) A benefit falls within paragraph 16(f) above if (and...

        8. Power to amend

          1. 23.(1) The Treasury may make regulations amending the preceding provisions...

      5. Part V THE QUALIFYING LIMIT

        1. 24.(1) In a case where, by reason of the employee’s...

      6. Part VI GENERAL

        1. Interpretation

          1. 25.In this Schedule— (a) references to the residence of the...

          2. 26.For the purposes of this Schedule a person is not...

          3. 27.In this Schedule references to employment include references to any...

          4. 28.References in this Schedule to subsistence are to food, drink...

        2. Commencement

          1. 29.This Schedule applies to any payment made, or any benefit...

    21. SCHEDULE 12

      1. 1.This Schedule shall have effect for the purpose of supplementing...

      2. Amount of emoluments

        1. 1A.For the purposes of section 192A and this Schedule the...

      3. Emoluments eligible for relief

        1. 2.(1) This paragraph has effect where a deduction falls to...

      4. Qualifying periods

        1. 3.(1) For the purposes of section 192A a qualifying period...

      5. Supplementary

        1. 4.For the purposes of this Schedule a person shall not...

        2. 5.Notwithstanding section 132(4)(b), there shall be treated for the purposes...

        3. 6.Where an employment is in substance one the duties of...

        4. 7.In this Schedule references to an employment include references to...

    22. SCHEDULE 12AA

      MILEAGE ALLOWANCES: INTERPRETATION

      1. 1.Introduction

      2. 2.Business travel

      3. 3.Qualifying vehicles

      4. 4.The approved amount: mileage allowance payments

      5. One employment is associated with another if— the employer is...

      6. 5.The approved amount: passenger payments

      7. 6.Company vehicles

      8. 7.Employment

      9. 8.Tax year

    23. Schedule 12A

      Ordinary commuting and private travel

      1. Introduction

        1. 1.(1) The provisions of this Schedule apply for the purposes...

      2. Ordinary commuting and private travel

        1. 2.(1) “Ordinary commuting” means travel between— (a) the employee’s home,...

        2. 3.Travel between any two places that is for practical purposes...

      3. Permanent and temporary workplaces

        1. 4.For the purposes of paragraph 2, subject to the following...

      4. The 24 month rule and fixed term appointments

        1. 5.(1) A place is not regarded as a temporary workplace...

      5. Depots and bases

        1. 6.A place which the employee regularly attends in the performance...

      6. Area-based employees

        1. 7.(1) An employee is treated as having a permanent workplace...

    24. SCHEDULE 13

      1. Duty to make returns

        1. 1.(1) A company shall for each of its accounting periods...

      2. Contents of return

        1. 2.(1) Subject to paragraph 7(2) below, the return made by...

      3. Payment of tax

        1. 3.(1) Subject to paragraph 7(2) below, advance corporation tax in...

      4. International headquarters companies

        1. 3A.(1) This paragraph and paragraph 3B below apply where—

        2. 3B.(1) Without prejudice to paragraph 3 above, if at any...

      5. Receipt of franked investment income after payment of advance corporation tax

        1. 4.(1) This paragraph shall have effect where—

      6. Receipt of foreign income dividends after payment of advance corporation tax

        1. 4A.(1) This paragraph shall have effect where—

      7. Claims for set-off in respect of franked investment income received by a company

        1. 5.Where under paragraph 2 or 4 above franked investment income...

        2. 6.(1) Where a claim has been made under paragraph 5...

      8. Claims for set-off in respect of foreign income dividends received by a company

        1. 6A.(1) Where under paragraph 2 or 4A above foreign income...

      9. Qualifying distributions which are not payments and payments of uncertain nature

        1. 7.(1) This paragraph applies to— (a) any qualifying distribution which...

      10. Amended return where company becomes aware of an error

        1. 7A.(1) If a company becomes aware— (a) that anything which...

      11. Items included in error

        1. 8.Where any item has been included in a return under...

      12. Qualifying distribution made otherwise than in an accounting period

        1. 9.Where a company makes a qualifying distribution on a date...

      13. Manufactured foreign income dividends

        1. 9A.(1) This paragraph applies in any case where, by virtue...

      14. Assessments and due date of tax

        1. 10.(1) All the provisions of the Corporation Tax Acts as...

    25. SCHEDULE 13A

      Surrenders of advance corporation tax

      1. General

        1. 1.(1) In this Schedule any reference to a claim is...

      2. Multiple claims

        1. 2.(1) Surrenders to different subsidiaries or to the same subsidiary...

      3. Content of claims etc.

        1. 3.(1) A claim must specify— (a) the amount the benefit...

      4. Time limit for claims

        1. 4.A claim by the surrendering company must be made within...

      5. Claim to be included in return where possible

        1. 5.(1) Where a claim could be made by being included...

        2. 6.(1) A claim not included in a return or an...

      6. Contents of notices of withdrawal, etc.

        1. 7.(1) A claim shall not be withdrawn except by a...

      7. Simultaneous claims and withdrawals of claims

        1. 8.Where— (a) a claim (“claim A”) is withdrawn, and

      8. Time limit for withdrawing claims

        1. 9.(1) Subject to sub-paragraph (3) below, a claim shall not...

      9. No amendment of claims

        1. 10.Nothing in the Management Act shall be read as allowing...

      10. Further self-assessments by the surrendering company

        1. 11.(1) Where— (a) a claim is made after an assessment...

        2. 12.(1) Where— (a) by virtue of section 239(4), advance corporation...

      11. Further self-assessments by subsidiary

        1. 13.(1) Sub-paragraph (3) below applies where— (a) under section 239(1),...

      12. Standard provisions about enquiries into self-assessments

        1. 14.(1) The standard provisions about enquiries into self-assessments . ....

      13. Repayments

        1. 15.(1) Where— (a) a claim is withdrawn after an assessment...

    26. Schedule 13B

      Children’s Tax Credit

      1. Child living with more than one adult: married and unmarried couples

        1. 1.(1) Paragraphs 2 to 5 below apply where at any...

        2. 2.Subject to paragraph 3 below, the lower-earning partner shall not...

        3. 3.(1) This paragraph applies if no part of either partner’s...

        4. 4.(1) This paragraph applies where— (a) a partner is entitled...

        5. 5.(1) This paragraph applies to elections under paragraph 3 above....

      2. Child living with more than one adult: other cases

        1. 6.(1) This paragraph applies to a child for a year...

      3. Combined cases

        1. 7.(1) This paragraph applies where a child is a relevant...

      4. Change of circumstances

        1. 8.(1) For the purposes of this paragraph a change of...

    27. SCHEDULE 14

      PROVISIONS ANCILLARY TO SECTION 266

      1. PART I MODIFICATION OF SECTION 266 IN CERTAIN CASES

        1. Spouses and civil partners

          1. 1.(1) In section 266— (a) references to an individual's spouse...

        2. Premiums payable to friendly societies and industrial assurance companies

          1. 2.(1) This paragraph applies to— (a) a policy issued in...

          2. 3.(1) Where a policy is issued or a contract is...

      2. PART II SUPPLEMENTARY PROVISIONS AS TO RELIEF UNDER SECTION 266

        1. 4.(1) Where it appears to the Board that the relief...

        2. 5.Where a person is entitled to relief under section 266...

        3. 6.(1) Where in any year of assessment the relief to...

        4. 7.(1) The Board may make regulations for carrying into effect...

        5. 8.(1) A policy of life insurance issued in respect of...

    28. SCHEDULE 15

      QUALIFYING POLICIES

      1. PART A1 Premium limit for qualifying policies

        1. Premium limit for qualifying policies to apply from 6 April 2013

          1. A1.(1) Sub-paragraph (2) applies if— (a) an event falling within...

        2. Restricted relief qualifying policies

          1. A2.(1) Sub-paragraph (2) applies if— (a) an event falling within...

        3. The premium limit for qualifying policies

          1. A3.(1) For the purposes of paragraphs A1(1)(c) and A2(1)(c) above...

        4. Protected policies

          1. A4.(1) This paragraph applies for the purposes of this Part...

        5. How to determine if an individual is a beneficiary under a policy

          1. A5.(1) This paragraph applies for the purposes of this Part...

        6. Further definitions

          1. A6.(1) In this Part of this Schedule—

      2. PART I QUALIFYING CONDITIONS

        1. RULES FOR QUALIFYING POLICIES

          1. Rights to be beneficially owned by individuals only

            1. B1.(1) Sub-paragraph (2) applies in relation to a policy issued...

          2. Assignments

            1. B2.(1) Sub-paragraph (2) applies if any rights under a qualifying...

          3. Required statements

            1. B3.(1) Sub-paragraph (2) applies if any of the following events...

        2. General rules applicable to whole life and term assurances

          1. 1.(1) Subject to the following provisions of this Part of...

        3. General rules applicable to endowment assurances

          1. 2.(1) Subject to the following provisions of this Part of...

        4. Special types of policy

          1. (i)Friendly Society policies

            1. 3.(1) Paragraphs 1 and 2 above do not apply to...

            2. 4.(1) The provisions of this paragraph have effect notwithstanding anything...

            3. 5.Section 466 shall apply for the interpretation of paragraphs 3...

            4. 6.(1) A policy which was issued by any registered friendly...

            5. 6A.Any expression— (a) which is used in any provision made...

          2. (ii) Industrial assurance policies

            1. 7.(1) A policy issued in the course of an industrial...

            2. 8.Where a policy issued in respect of an insurance made...

            3. 8A.(1) Paragraphs 7 and 8 above shall have effect in...

          3. (iii) Family income policies and mortgage protection

            1. 9.(1) The following provisions apply to any policy which is...

        5. Other special provisions

          1. (i) Short-term assurances

            1. 10.A policy which secures a capital sum payable only on...

          2. (ii) Personal accident insurance

            1. 11.(1) A policy which evidences a contract of insurance to...

          3. (iii) Exceptional risk of death or disability

            1. 12.For the purpose of determining whether any policy is a...

          4. (iv) Connected policies

            1. 13.Subject to paragraph 14 below, where the terms of any...

            2. 14.(1) A policy shall not be a qualifying policy if...

          5. (v) Premiums paid out of sums due under previous policies

            1. 15.(1) Where, in the case of a policy under which...

          6. (vi) Additional premiums under section 72(9) of the Ginance Act 1984

            1. 16.In determining whether a policy is a qualifying policy, no...

          7. (viii) Substituitions and variations

            1. 17.(1) Subject to paragraph 19 below, where one policy (“the...

            2. 18.(1) Subject to paragraph 19 below and to the provisions...

            3. 19.(1) The following provisions of this paragraph shall have effect...

            4. 20.(1) Where, as a result of a variation in the...

          8. (viii) Policy reinstated after non-payment of premium

            1. 20ZA.(1) This paragraph applies to a qualifying policy (“the original...

        6. Meaning of “industrial assurance business”

          1. 20A.In this Part of this Schedule “ industrial assurance business...

      3. PART II CERTIFICATION OF QUALIFYING POLICIES

        1. Policies issued in respect of insurances made on or after 1st April 1976 or varied on or after that date

          1. 21.(1) A policy of life insurance issued in respect of...

          2. 22.(1) A body which issues or which, after 5th April...

      4. PART III POLICIES ISSUED BY NON-RESIDENT COMPANIES

        1. 23.In this Part— (a) any reference to a paragraph is...

        2. 24.(1) This paragraph applies to a policy of life insurance—...

        3. 25.(1) In the application of paragraph 17 in any case...

        4. 26.If, in the case of a substitution of policies falling...

        5. 27.(1) For the purposes of Part I and paragraph 24,...

    29. SCHEDULE 15A

      CONTRACTUAL SAVINGS SCHEMES

      1. Introduction

        1. 1.This Schedule shall have effect for the purposes of section...

      2. Share option linked schemes

        1. 2.(1) A share option linked scheme is a scheme under...

      3. Relevant European institutions

        1. 3.A relevant European institution is an EEA firm of the...

      4. Treasury specifications

        1. 4.(1) The requirements which may be specified under section 326(3)(b),...

        2. 5.(1) Where a specification has been made under section 326(3)(b),...

        3. 6.(1) Where a specification has been made under section 326(3)(b),...

      5. Treasury authorisation

        1. 7.(1) The Treasury may authorise a society or institution under...

        2. 8.(1) Where an authorisation has been given under section 326(7)...

        3. 9.(1) Where an authorisation has been given under section 326(7)...

        4. 10.(1) Where an authorisation has been given under section 326(8)...

        5. 11.(1) Where an authorisation has been given under section 326(8)...

        6. 12.(1) If the Treasury act as regards an authorisation under...

    30. SCHEDULE 15B

      Venture Capital Trusts: Relief from Income Tax

      1. Part I Relief on investment

        1. Entitlement to claim relief

          1. 1.(1) Subject to the following provisions of this Schedule, an...

        2. Loan-linked investments

          1. 2.(1) An individual shall not be entitled to relief under...

        3. Loss of investment relief

          1. 3.(1) This paragraph applies, subject to sub-paragraph (5) below, where—...

        4. Assessment on withdrawal or reduction of relief

          1. 4.(1) Any relief given under this Part of this Schedule...

        5. Provision of information

          1. 5.(1) Where an event occurs by reason of which any...

        6. Interpretation of Part I

          1. 6.(1) In this Part of this Schedule “eligible shares”, in...

      2. Part II Relief on distributions

        1. 7.(1) A relevant distribution of a venture capital trust shall...

        2. Meaning of “permitted maximum”

          1. 8.(1) For the purposes of this Part of this Schedule...

        3. Interpretation of Part II

          1. 9.(1) In this Part of this Schedule “ordinary shares”, in...

    31. SCHEDULE 16

      1. Interpretation

        1. 1.In this Schedule “relevant payment” means any payment to which...

      2. Duty to make returns

        1. 2.(1) A company shall for each of its accounting periods...

      3. Contents of returns

        1. 3.The return made by a company for any period shall...

      4. Payment of tax

        1. 4.(1) . . . Income tax in respect of any...

      5. Set-off of income tax borne on company income against tax payable

        1. 5.(1) Where in any accounting period a company receives any...

        2. 6.(1) Where a claim has been made under paragraph 5...

        3. 7.Income tax set against other tax under paragraph 5 above...

      6. Amended return where company becomes aware of an error

        1. 7A.(1) If a company becomes aware— (a) that anything which...

      7. Items included in error

        1. 8.Where any item has been included in a return or...

      8. Relevant payment made otherwise than in accounting period

        1. 9.Where a company makes a relevant payment on a date...

      9. Assessments and due date of tax

        1. 10.(1) All the provisions of the Income Tax Acts as...

      10. Saving

        1. 11.Nothing in paragraphs 1 to 10 above shall be taken...

    32. SCHEDULE 17

      1. PART I DIVISION OF ACCOUNTING PERIODS COVERING 1st APRIL 1987

        1. 1.(1) This Part of this Schedule has effect in the...

        2. 2.Subject to paragraph 5 below, for the purposes referred to...

        3. 3.If, in the straddling period of a dual resident investing...

      2. PART II EARLY PAYMENTS OF INTEREST ETC. AND CHARGES ON INCOME

        1. Interpretation

          1. 4.In this Part of this Schedule— (a) a “1986 accounting...

        2. Early payment of interest etc.

          1. 5.(1) If the conditions in sub-paragraph (2) or (3) below...

        3. Early payment of charges on income

          1. 6.(1) If, in the case of a dual resident investing...

        4. Appeals

          1. 7.Notice of the giving of a direction under paragraph 5...

      3. PART III GENERAL

        1. 8.(1) Parts I and II of this Schedule have effect...

    33. Schedule 17A

      1. Introductory

        1. 1.(1) This Schedule has effect as respects claims for group...

      2. Time limits

        1. 2.(1) No claim for an accounting period of a company...

        2. 3.(1) No claim for an accounting period of a company...

        3. 4.Where under paragraph 2 or 3 above a claim may...

        4. 5.(1) A claim for an accounting period of a company...

      3. Method of making claim

        1. 6.(1) A claim shall be made by being included in...

      4. Nature of claim

        1. 7.A claim may be made for less than the full...

        2. 8.A claim, other than one under paragraph 5 above, shall...

        3. 9.(1) A claim under paragraph 5 above shall be expressed...

      5. Consent to surrender

        1. 10.(1) A claim shall require the consent of the surrendering...

        2. 11.(1) This paragraph applies in relation to claims under paragraph...

      6. Adjustments

        1. 12.(1) All such assessments or adjustments of assessments shall be...

    34. SCHEDULE 18

      1. 1.(1) For the purposes of sections 403C and 413(7) and...

      2. 1A.(1) This paragraph applies to a right to dividends carried...

      3. 2.(1) Subject to the following provisions of this Schedule, for...

      4. 3.(1) Subject to the following provisions of this Schedule, for...

      5. 4.(1) This paragraph applies if any of the equity holders—...

      6. 5.(1) This paragraph applies if, at any time in the...

      7. 5A.(1) In a case where paragraphs 4 and 5 above...

      8. 5B.(1) This paragraph applies if, at any time in the...

      9. 5C.(1) In a case where paragraphs 4 and 5B above...

      10. 5D.(1) In a case where paragraphs 5 and 5B above...

      11. 5E.(1) In a case where paragraphs 4 and 5 and...

      12. 5F.(1) This paragraph has effect, in the cases specified in...

      13. 6.For the purposes of sections 403C and 413(7) and paragraphs...

      14. 7.(1) In this Schedule “the relevant accounting period” means (subject...

    35. SCHEDULE 18A

      1. Part 1 Meaning of conditions for the purposes of section 403F

        1. Introduction

          1. 1.This Part of this Schedule applies, in the case of...

        2. The equivalence condition

          1. 2.An amount meets the equivalence condition if it corresponds (in...

        3. The EEA tax loss condition: companies resident in EEA territory

          1. 3.(1) In the case of a non-resident company which is...

        4. The EEA tax loss condition: companies not resident in EEA territory

          1. 4.(1) In the case of a non-resident company which is...

        5. The qualifying loss condition

          1. 5.(1) This paragraph applies in the case of a non-resident...

        6. Qualifying relief for current period and previous periods

          1. 6.(1) For the purposes of paragraph 5, an amount cannot...

        7. Qualifying relief for future periods

          1. 7.(1) For the purposes of paragraph 5, an amount cannot...

        8. Amount not given other qualifying relief under law of territory outside UK

          1. 8.(1) For the purposes of paragraph 5, an amount has...

        9. Precedence condition

          1. 9.(1) This paragraph applies in the case of a non-resident...

      2. Part 2 Application of UK rules to non-resident company

        1. Introduction

          1. 10.(1) This Part of this Schedule applies in the case...

        2. Basic rules

          1. 11.(1) The EEA amount must, on the relevant assumptions (see...

        3. Assumptions as to UK residence

          1. 12.(1) It is to be assumed that the EEA company...

        4. Assumptions as to places in which activities carried out

          1. 13.(1) In the case of any trade carried on by...

        5. Deemed accounting period

          1. 14.(1) It is to be assumed that an accounting period...

        6. Capital allowances

          1. 15.(1) This paragraph applies if, before the beginning of the...

        7. Applicable UK tax rules

          1. 16.(1) For the purposes of this Part of this Schedule...

      3. Part 3 Definitions for the purposes of this Schedule

        1. Charge to tax under the law of any territory outside the United Kingdom

          1. 17.(1) This paragraph applies for the purposes of this Schedule....

    36. SCHEDULE 19

      1. PART I DETERMINATION OF RELEVANT INCOME AND DISTRIBUTIONS

        1. Relevant income

          1. 1.(1) Subject to the provisions of this Part of this...

        2. Maximum amount of relevant income

          1. 2.(1) Subject to paragraphs 10and 12below, the relevant income of...

        3. Distributions

          1. 3.(1) For the purposes of this Chapter the distributions of...

        4. Distributable income and estate or trading income

          1. 4.(1) For the purposes of this Chapter, the distributable income...

          2. 5.(1) For the purposes of this Chapter, “estate or trading...

          3. 6.(1) The amount for part of an accounting period of...

        5. Meaning of “trading company” and “member of a trading group”

          1. 7.(1) For the purposes of this Chapter, a “trading company”...

        6. Requirements of a company’s business

          1. 8.(1) For the purposes of paragraph 1(2)above there shall be...

          2. 9.(1) Paragraph 1(3)above shall not apply to—

        7. Cessations and liquidations

          1. 10.(1) Where a close company ceases to carry on the...

        8. Legal restrictions on distributions

          1. 11.(1) Subject to paragraph 12below, where a company is subject...

        9. Stock dividends

          1. 12.(1) Where a company issues to a close company any...

      2. PART II PROCEDURE

        1. Notice of amount to be apportioned

          1. 13.(1) Where in the case of any company the inspector...

        2. Notice of manner of apportionment

          1. 14.(1) Where notice has been served on a company under...

        3. Revision of apportionment

          1. 15.(1) If the inspector discovers that the amount apportioned in...

        4. Protection by transmission of accounts

          1. 16.(1) A close company may, at any time after the...

        5. Information

          1. 17.(1) The inspector may, by notice, require any company which...

        6. Exercise of functions by the Board

          1. 18.(1) Any functions conferred by this Chapter on the inspector...

    37. SCHEDULE 19AA

      1. 1.(1) This Schedule shall have effect for determining for the...

      2. 2.(1) Assets of a company at the end of a...

      3. 3.(1) Where the value of the assets mentioned in paragraph...

      4. 4.(1) The amount referred to in paragraph 3 above shall...

      5. 5.(1) Any designation of assets required for the purposes of...

    38. Schedule 19AB

      1. Entitlement to certain payments on account

        1. 1.(1) An insurance company carrying on pension business shall for...

      2. Changes in the provisional fraction

        1. 2.(1) This paragraph applies in any case where—

      3. Repayment, with interest, of excessive provisional repayments

        1. 3.(1) In any case where— (a) an insurance company’s self-assessment...

      4. Reduced entitlement during transitional period

        1. 4.(1) The Board may by regulations make provision for the...

      5. Transitional application of pay and file provisions

        1. 5.(1) This paragraph applies in relation to an accounting period...

      6. Interpretation

        1. 6.(1) In this Schedule— “ provisional fraction ” shall be...

    39. SCHEDULE 19ABA

      1. Part 1 INTRODUCTORY

        1. 1.(1) In their application to a BLAGAB group reinsurer the...

      2. Part 2 MODIFICATIONS OF THIS ACT

        1. 2.This Act shall have effect with the following modifications.

        2. Modification of section 76 (expenses of insurance companies)

          1. 3.(1) Modify section 76 (expenses of insurance companies) as follows....

        3. Modification of section 431 (interpretative provisions relating to insurance companies)

          1. 4.(1) Modify section 431(2) (interpretative provisions relating to insurance companies)...

        4. Modification of section 432B (apportionment of receipts brought into account)

          1. 5.(1) Modify section 432B (apportionment of receipts brought into account)...

        5. Modification of section 432E (section 432B apportionment: participating funds)

          1. 6.Omit section 432E (section 432B apportionment: participating funds).

        6. Modification of section 432F (section 432B apportionment: supplementary provisions)

          1. 7.Omit section 432F (section 432B apportionment: supplementary provisions).

        7. Modification of section 444AA (transfers of business: deemed periodic return)

          1. 8.In section 444AA (transfers of business: deemed periodical returns) in...

        8. Modification of section 444ABA (relevant non-transferred assets)

          1. 8A.In section 444ABA (relevant non-transferred assets) in subsection (1) for...

        9. Modification of section 444ABB (retained assets)

          1. 8B.(1) Modify section 444ABB (retained assets) as follows.

        10. Modification of section 444ABD (transferor's period of account including transfer)

          1. 8C.(1) Modify section 444ABD (transferor's period of account including transfer)...

        11. Modification of section 444AC (transfer schemes: reduction of income of transferee)

          1. 8D.(1) Modify section 444AC (transfer schemes: reduction of income of...

        12. Modification of section 444AE (transfers of business: FAFTS)

          1. 8E.(1) In a case where the transferor or the transferee...

        13. Modification of section 444AEA (transfer schemes: anti-avoidance rule)

          1. 8F.In section 444AEA (transfer schemes: anti-avoidance rule), in subsection (6),...

        14. . . .

          1. 9.In section 804C (insurance companies: allocation of expenses etc in...

        15. . . .

          1. 10.Omit section 804D (interpretation of section 804C in relation to...

        16. . . .

          1. 11.In section 804E (interpretation of section 804C in relation to...

      3. Part 3 MODIFICATION OF THE FINANCE ACT 1989

        1. Modification of the Finance Act 1989

          1. 12.The Finance Act 1989 shall have effect with the following...

        2. Modification of section 82B (unappropriated surplus on valuation)

          1. 13.Omit section 82B (unappropriated surplus on valuation).

        3. Modification of section 82D (treatment of profits: life assurance—adjustment consequent on change in Insurance Prudential Sourcebook)

          1. 14.Omit section 82D (treatment of profits: life assurance—adjustment consequent on...

        4. Modification of section 82E (section 82D: treatment of transferors under insurance business transfer schemes)

          1. 15.Omit section 82E (section 82D: treatment of transferors under insurance...

        5. Modification of section 82 (section 82D: treatment of transferees under insurance business transfer schemes)

          1. 16.Omit section 82F (section 82D: treatment of transferees under insurance...

        6. Modification of section 83 (receipts to be taken into account)

          1. 17.In section 83 (receipts to be taken into account)—

        7. Modification of section 83XA (structural assets)

          1. 18.In section 83XA (structural assets) in subsection (3)) for the...

        8. Modification of section 83YA (changes in value of assets brought into account: non-profit companies)

          1. 19.Omit section 83YA (changes in value of assets brought into...

        9. Modification of section 83YB (meaning of “appropriate line 51” amount for purposes of section 83YA)

          1. 20.Omit section 83YB (meaning of “appropriate line 51” amount for...

        10. Modification of section 83YC to 83YF (financing-arrangement-funded transfers)

          1. 20A.Omit sections 83YC to 83YF (financing-arrangement-funded transfers).

        11. Modification of section 83A (meaning of brought into account)

          1. 21.(1) Modify section 83A (meaning of “brought into account”) as...

        12. Modification of section 83B (changes in recognised accounts: attribution of amounts carried forward under section 432F of Taxes Act 1988)

          1. 22.Omit section 83B (changes in recognised accounts: attribution of amounts...

        13. Modification of section 85A (excess adjusted life assurance trade profits)

          1. 23.In section 85A (excess adjusted life assurance trade profits) in...

        14. Modification of section 86 (spreading of relief for acquisition expenses)

          1. 24.Omit section 86 (spreading of relief for acquisition expenses).

        15. Modification of section 89 (policy holders' share of profits)

          1. 25.In section 89 (policy holders' share of profits) omit subsection...

      4. Part 4 Modification of Part 2 of TIOPA 2010 (double taxation relief)

        1. 26.TIOPA 2010 shall have effect with the following modifications.

        2. Modification of section 102 (interpreting sections 99 to 101 for life assurance or gross roll-up business)

          1. 27.Omit section 102.

        3. Modification of section 103 (interpreting sections 99 to 101 for other insurance business)

          1. 28.In section 103(1) omit the words from “if” to the...

    40. SCHEDULE 19AC

      1. 1.In its application to an overseas life insurance company this...

      2. 2.(1) In section 6(4), the words “ and paragraph 5B...

      3. 3.(1) In subsection (2) of section 11, the following paragraphs...

      4. 4.(1) The following sections shall be treated as inserted after...

      5. 4A.(1) In section 12(7A), the reference to an insurance business...

      6. 5.After subsection (3) of section 76 there shall be treated...

      7. 5ZA.After subsection (11) there shall be treated as inserted the...

      8. 5A.(1) Where an overseas life insurance company receives a qualifying...

      9. 5B.(1) An overseas life insurance company may, on making a...

      10. 5C.(1) This paragraph applies to income from the investments of...

      11. 6.(1) In subsection (2) of section 431, the following definition...

      12. 6A.In section 431D(1), the words “carried on through a branch...

      13. 7.(1) Section 432A has effect as if the references in...

      14. 8.(1) In subsection (1) of section 432B, the words “or...

      15. 9.(1) In section 434, the following subsections shall be treated...

      16. 9A.In section 434A(1)— (a) the words “UK distribution income” shall...

      17. 9B.The following section shall be treated as inserted after section...

      18. 9C.In its application to an overseas life insurance company section...

      19. 10.(1) In section 438, the following subsection shall be treated...

      20. 10A.In section 439B the following subsection shall be treated as...

      21. 10AA.In section 440(2)(a), the reference to an insurance business transfer...

      22. 10B.(1) Where the company mentioned in section 440(1) is an...

      23. 10C.(1) In section 440B the following subsection shall be treated...

      24. 11.(1) In section 440A(2), in paragraph (a) the words “UK...

      25. 11A.(1) In section 441A, the following subsection shall be treated...

      26. 11B.In section 442A the following subsection shall be treated as...

      27. 11C.In sections 444A(1) and 460(10A), the references to an insurance...

      28. 12.(1) In paragraph A of section 704, in sub-paragraph (e)...

      29. 13.(1) In subsection (2) of section 794, the following shall...

      30. 14.(1) In subsection (1) of section 811, the words “subsections...

      31. 14A.(1) In Schedule 19AA, paragraph 5(5)(c) (and the reference to...

      32. 15.(1) In paragraph 1(8) of Schedule 19AB, the words “UK...

    41. SCHEDULE 19A

      UNDERWRITERS: ASSESSMENT AND COLLECTION OF TAX

      1. Preliminary

        1. 1.(1) In this Schedule— “agent”, in relation to a syndicate...

      2. Returns by managing agent

        1. 2.(1) An inspector may, at any time after the end...

      3. Repayment claims by managing agent

        1. 2A.(1) In relation to an underwriting year a managing agent...

      4. Returns by members’ agent

        1. 2B.(1) An inspector may, at any time after the end...

      5. Payments on account of tax

        1. 3.(1) In the case of a member’s profit for a...

      6. Assessments on members’ agent

        1. 3A.(1) If the members’ agent delivers a return in accordance...

      7. Determinations by inspector

        1. 4.(1) If the inspector is satisfied that a return under...

      8. Appeals

        1. 5.(1) The [managing ] agent may appeal against a determination...

      9. Modification of determinations pending appeal

        1. 6.(1) Where the [managing ] agent appeals against a determination...

      10. Apportionments of syndicate profit or loss

        1. 7.(1) Where a determination of a syndicate profit or loss...

      11. Individual members: effect of determinations

        1. 8.(1) A determination of a syndicate profit or loss for...

      12. Assessment of individual members: time limits

        1. 9.For the purposes of sections 36, of the Taxes Management...

      13. Supplemental: penalties

        1. 10.(1) If it appears to an inspector or the Board...

      14. Supplemental: interest

        1. 11.(1) Interest charged under paragraph 3(4)above shall be treated for...

    42. SCHEDULE 19B

      Petroleum extraction activities: exploration expenditure supplement

      1. Part 1 Introductory

        1. 1.About this Schedule

      2. Part 2 Application and interpretation

        1. 2.Qualifying companies

        2. 3.Accounting periods

        3. 4.The relevant percentage

        4. 5.Limit on number of accounting periods for which supplement may be claimed

        5. 6.Qualifying E&A expenditure

        6. 7.Unrelieved group ring fence profits for accounting periods

        7. 8.Taxable ring fence profits of an accounting period

      3. Part 3 Pre-commencement supplement

        1. 9.Supplement in respect of a pre-commencement accounting period

        2. 10.The mixed pool of qualifying E&A expenditure and supplement previously allowed

        3. 11.Treatment of disposal value on disposal of oil licence with exploitation value

        4. 12.Reduction in respect of unrelieved group ring fence profits

        5. 13.The reference amount for a pre-commencement period

        6. 14.Claims for pre-commencement supplement

      4. Part 4 Post-commencement supplement

        1. 15.Supplement in respect of a post-commencement period

        2. 16.Amount of post-commencement supplement for a post-commencement period

        3. 17.Ring fence losses and qualifying E&A losses

        4. 18.Ring fence losses and non-qualifying losses

        5. 18A. Special rule for straddling periods

        6. 19.The pool of qualifying E&A losses and the pool of non-qualifying losses

        7. 20.The non-qualifying pool

        8. 21.The qualifying pool

        9. 22.Reductions in respect of utilised ring fence losses

        10. 23.Reductions in respect of unrelieved group ring fence profits

        11. 24.The reference amount for a post-commencement period

    43. SCHEDULE 19C

      1. Part 1 Introductory

        1. About this Schedule

          1. 1.(1) This Schedule entitles a company carrying on a ring...

      2. Part 2 Application and interpretation

        1. Qualifying companies

          1. 2.This Schedule applies in relation to any company which—

        2. Accounting periods

          1. 3.(1) In this Schedule, in the case of any qualifying...

        3. The relevant percentage

          1. 4.(1) For the purposes of this Schedule, the relevant percentage...

        4. Limit on number of accounting periods for which supplement may be claimed

          1. 5.(1) A company may claim supplement under this Schedule in...

        5. Qualifying pre-commencement expenditure

          1. 6.(1) For the purposes of this Schedule, expenditure is “qualifying...

        6. Unrelieved group ring fence profits for accounting periods

          1. 7.(1) There is an amount of unrelieved group ring fence...

        7. Taxable ring fence profits of an accounting period

          1. 8.For the purposes of this Schedule, a company has taxable...

      3. Part 3 Pre-commencement supplement

        1. Supplement in respect of a pre-commencement accounting period

          1. 9.(1) If— (a) a qualifying company incurs qualifying pre-commencement expenditure...

        2. The mixed pool of qualifying pre-commencement expenditure and supplement previously allowed

          1. 10.(1) For the purpose of determining the amount of any...

        3. Reduction in respect of disposal receipts under the Capital Allowances Act

          1. 11.(1) This paragraph applies in the case of the qualifying...

        4. Reduction in respect of unrelieved group ring fence profits

          1. 12.(1) This paragraph applies if there is an amount of...

        5. The reference amount for a pre-commencement period

          1. 13.For the purposes of this Part of this Schedule, the...

        6. Claims for pre-commencement supplement

          1. 14.(1) Any claim for pre-commencement supplement in respect of a...

      4. Part 4 Post-commencement supplement

        1. Supplement in respect of a post-commencement period

          1. 15.(1) A qualifying company which incurs a ring fence loss...

        2. Amount of post-commencement supplement for a post-commencement period

          1. 16.(1) The amount of the post-commencement supplement for any post-commencement...

        3. Ring fence losses

          1. 17.(1) If— (a) in any post-commencement period (“the period of...

        4. Special rule for straddling periods

          1. 18.(1) This paragraph applies if the period of the loss...

        5. The pool of ring fence losses and the pool of non-qualifying Schedule 19B losses

          1. 19.(1) For the purpose of determining the amount of any...

        6. The ring fence pool

          1. 20.(1) The ring fence pool consists of—

        7. Reductions in respect of utilised ring fence losses

          1. 21.(1) If one or more ring fence losses are set...

        8. Reductions in respect of unrelieved group ring fence profits

          1. 22.(1) If there is an amount of unrelieved group ring...

        9. The reference amount for a post-commencement period

          1. 23.For the purposes of this Part of this Schedule the...

    44. SCHEDULE 20

      1. PART I QUALIFYING INVESTMENTS

        1. 1.Investments specified in any of the following paragraphs of this...

        2. 2.Any investment falling within Part I, Part II, apart from...

        3. 3.Any investment in a common investment fund established under section...

        4. 3A.Any investment in a common deposit fund established under section...

        5. 4.Any interest in land, other than an interest held as...

        6. 5.Shares in, or securities of, a company which are listed...

        7. 6.Units, or other shares of the investments subject to the...

        8. 6A.Shares in an open-ended investment company.

        9. 7.(1) Deposits with a bank in respect of which interest...

        10. 7A.Uncertificated eligible debt security units as defined in section 552(2)...

        11. 8.Certificates of deposit as defined in section 56(5).

        12. 9.(1) Any loan or other investment as to which the...

      2. PART II QUALIFYING LOANS

        1. 10.(1) For the purposes of section 506, a loan which...

      3. PART III ATTRIBUTION OF EXCESS NON-QUALIFYING EXPENDITURE TO EARLIER CHARGEABLE PERIODS

        1. 11.This Part of this Schedule applies in the circumstances specified...

        2. 12.(1) So much of the unapplied non-qualifying expenditure as is...

        3. 13.(1) Where, in accordance with paragraph 12 above, an amount...

        4. 14.All such adjustments shall be made, whether by way of...

    45. SCHEDULE 21

      TAX RELIEF IN CONNECTION WITH SCHEMES FOR RATIONALIZING INDUSTRY AND OTHER REDUNDANCY SCHEMES

      1. PART I PRELIMINARY

        1. 1.(1) In this Schedule— “scheme” means a scheme which is...

      2. PART II RELIEF IN RESPECT OF CERTAIN PAYMENTS

        1. 2.The question whether any, and if so, what, relief is...

        2. 3.No relief shall be given in respect of the payment...

        3. 4.No relief shall be given in respect of the payment...

        4. 5.The amount of the reduction to be made in respect...

        5. 6.(1) For the purposes of this Schedule, and subject to...

      3. PART III EXCLUSION OF RELIEF IN RESPECT OF CONTRIBUTIONS PAID AFTER RELIEF HAS BEEN GIVEN UNDER PART II

        1. 7.The provisions of this Part of this Schedule shall have...

        2. 8.There shall be ascertained— (a) the total amount of those...

        3. 9.For the purpose of determining what deduction is to be...

        4. 10.When two or more contributions are paid at the same...

    46. SCHEDULE 22

      1. 1.(1) The Board may make regulations providing for this Schedule...

      2. 2.(1) The administrator of a scheme in relation to which...

      3. 3.(1) Subject to paragraph 4(4) below, where a valuation produced...

      4. 4.(1) Where a valuation has been produced under paragraph 2...

      5. 5.(1) Where particulars have been furnished under paragraph 4 above,...

      6. 6.(1) Where proposals are submitted to the Board under paragraph...

      7. 7.(1) Where this paragraph applies the Board may specify a...

      8. 7A.(1) This paragraph applies if a calculation falls to be...

      9. 8.(1) The Board may make regulations providing that an appeal...

    47. SCHEDULE 23

      1. Preliminary

        1. 1.(1) This Schedule shall be deemed to have come into...

      2. Accelerated accrual

        1. 2.(1) This paragraph applies where an employee becomes a member...

        2. 3.(1) This paragraph applies where an employee becomes a member...

        3. 4.(1) This paragraph applies where an employee becomes a member...

      3. Final remuneration

        1. 5.(1) his paragraph applies where an employee who is a...

      4. Lump sums

        1. 6.(1) This paragraph applies where an employee becomes a member...

      5. Additional voluntary contributions

        1. 7.(1) This paragraph applies where— (a) the rules of the...

        2. 8.(1) This paragraph applies where an employee who is a...

      6. Supplementary

        1. 9.In this Schedule “relevant annual remuneration” means final remuneration or,...

    48. SCHEDULE 23ZA

      1. Interpretation

        1. 1.(1) In this Schedule— “the date of the change” shall...

      2. Eligible schemes

        1. 2.(1) This Schedule applies to any retirement benefits scheme which...

      3. Approval of eligible schemes as approved personal pension schemes

        1. 3.(1) The trustees of an eligible scheme may at any...

      4. Excessive funding of certain individual members

        1. 4.(1) The Board may refuse or withhold approval under paragraph...

      5. Directions as to contributions between valuation and date of change etc.

        1. 5.(1) The Board may give directions for or in connection...

      6. Scheme rules to allow changes for purpose of conversion

        1. 6.An approved retirement benefits scheme shall be taken to include...

    49. Schedule 23A

      1. Interpretation

        1. 1.(1) In this Schedule— . . . . . ....

      2. Manufactured dividends on UK equities: general

        1. 2.(1) This paragraph applies in any case where, under a...

      3. Deductibility of manufactured payment in the case of the manufacturer

        1. 2A.(1) Where, in the case of a manufactured dividend, the...

      4. Manufactured dividends representative of foreign income dividends

        1. 2B.(1) Where a manufactured dividend to which paragraph 2(2) above...

      5. Manufactured interest on UK securities: general

        1. 3.(1) This paragraph applies (subject to paragraph 3A below) in...

      6. Manufactured interest on gilt-edged securities etc.

        1. 3A.(1) Where any manufactured interest is representative of interest on...

      7. Manufactured overseas dividends

        1. 4.(1) This paragraph applies in any case where, under a...

        2. 4A.(1) A reference in paragraph 4(4)(a) or (b) to the...

      8. Dividends and interest passing through the market

        1. 5.(1) Sub-paragraph (2) below applies in any case where, under...

      9. Unapproved manufactured payments

        1. 6.(1) This paragraph applies where a person makes an unapproved...

      10. Irregular manufactured payments

        1. 7.(1) . . . In any case where (apart from...

      11. Manufactured payments under arrangements having an unallowable purpose

        1. 7A.(1) This paragraph applies in any case where—

      12. Dividend manufacturing regulations: general

        1. 8.(1) Dividend manufacturing regulations may make provision for—

    50. SCHEDULE 24

      ASSUMPTIONS FOR CALCULATING CHARGEABLE PROFITS, CREDITABLE TAX AND CORRESPONDING UNITED KINGDOM TAX OF FOREIGN COMPANIES

      1. General

        1. 1.(1) The company shall be assumed to be resident in...

        2. 2.(1) The company shall be assumed to have become resident...

        3. 3.The company shall be assumed not to be a close...

        4. 4.(1) Subject to sub-paragraph (2) below, where any relief under...

        5. 4A.. . . . . . . . . ....

      2. Group relief etc.

        1. 5.(1) The company shall be assumed to be neither a...

        2. 6.(1) In relation to section 247 it shall be assumed—...

        3. 7.The company shall be assumed not to be a subsidiary...

      3. Company reconstructions

        1. 8.Without prejudice to the operation of Chapter 1 of Part...

      4. Losses in pre-direction accounting periods

        1. 9.(1) . . . This paragraph applies in any case...

      5. Capital allowances and expenditure on car hire

        1. 10.(1) Subject to paragraph 12 below, if, in an accounting...

        2. 11.(1) This paragraph applies in any case where it appears...

        3. 11A.(1) This paragraph applies where by virtue of section 747A...

      6. Unremittable overseas income

        1. 12.For the purposes of the application of Part 18 of...

      7. Exchange gains and losses

        1. 13.Paragraphs 14 to 19 below apply for the purposes of...

        2. 14.(1) This paragraph applies where— (a) by virtue of section...

        3. 15.Where the accounting period mentioned in section 139(1) of the...

        4. 16.(1) This paragraph applies where the last relevant accounting period...

        5. 17.Where by virtue of section 747A the company’s chargeable profits...

        6. 18.(1) This paragraph applies where the accounting period mentioned in...

        7. 19.(1) This paragraph applies where— (a) Chapter II of Part...

      8. Transfer pricing

        1. 20.(1) Sub-paragraph (2) of paragraph 5 of Schedule 28AA (no...

    51. SCHEDULE 25

      Cases where section 747(3) does not apply

      1. PART I ACCEPTABLE DISTRIBUTION POLICY

        1. 1.The provisions of this Part of this Schedule have effect...

        2. 2.(1) Subject to paragraph 2A below, a controlled foreign company...

        3. 2A.(1) Paragraph 2 above shall have effect in accordance with...

        4. 2B.(1) This paragraph has effect for the purposes of paragraph...

        5. 3.(1) Subject to sub-paragraphs (2) and (5) below, for the...

        6. 4.(1) For the purposes of this Part of this Schedule,...

        7. 4A.(1) This paragraph has effect for the purposes of paragraph...

      2. PART II EXEMPT ACTIVITIES

        1. 5.(1) The provisions of this Part of this Schedule have...

        2. 6.(1) Throughout an accounting period a controlled foreign company is...

        3. 7.(1) For the purposes of paragraph 6(1)(a) above, a “business...

        4. 8.(1) Subject to sub-paragraph (4) below, the condition in paragraph...

        5. 9.(1) Subject to sub-paragraph (3) below, for the purposes of...

        6. 10.Goods which are actually delivered into the territory in which...

        7. 11.(1) For the purposes of paragraph 6(2)(b) above, each of...

        8. 11A.(1) This paragraph has effect for the interpretation of paragraph...

        9. 11B.(1) In paragraph 11A above “ large risks ” means—...

        10. 12.(1) Subject to sub-paragraph (2) below, in paragraphs 6 and...

        11. 12A.(1) In paragraphs 6, 8(3) and 12(5) above and this...

      3. Part 2A Trading Companies with Limited UK Connection

        1. Introductory

          1. 12B.(1) For the purposes of section 748(1)(ba), a controlled foreign...

        2. Business establishment

          1. 12C.(1) The requirement of this paragraph is that throughout the...

        3. Business activities

          1. 12D.(1) The requirement of this paragraph is that—

        4. UK connection

          1. 12E.(1) The requirement of this paragraph is that C does...

        5. Finance income and relevant IP income

          1. 12F.(1) The requirement of this paragraph is that not more...

        6. Gross income

          1. 12G.(1) References in this Part of this Schedule to C's...

      4. Part 2B Companies Exploiting Intellectual Property with Limited UK Connection

        1. Introductory

          1. 12H.(1) For the purposes of section 748(1)(bb), a company (“C”)...

        2. Business establishment

          1. 12I.(1) The requirement of this paragraph is that throughout the...

        3. Intellectual property business

          1. 12J.(1) The requirement of this paragraph is that C's main...

        4. Other business activities

          1. 12K.(1) The requirement of this paragraph is that—

        5. UK connection

          1. 12L.(1) The requirement of this paragraph is that C does...

        6. Finance income

          1. 12M.The requirement of this paragraph is that not more than...

        7. Interpretation of Part 2B

          1. 12N.(1) For the purpose of this Part of this Schedule—...

      5. PART III THE PUBLIC QUOTATION CONDITION

        1. 13.(1) The provisions of this Part of this Schedule have...

        2. 14.(1) The condition in paragraph 13(2) above is not fulfilled...

        3. 15.(1) References in this Part of this Schedule to shares...

      6. Part 3A Exempt Periods

        1. Introductory

          1. 15A.The provisions of this Part of this Schedule have effect...

        2. Beginning of exempt period

          1. 15B.(1) An exempt period begins in relation to a company...

          2. 15C.(1) The requirements of this paragraph are that—

          3. 15D.(1) The requirements of this paragraph are that—

        3. Disqualifying relevant transactions

          1. 15E.(1) This paragraph applies for the purposes of paragraph 15C...

        4. Ending of exempt period

          1. 15F.(1) An exempt period ends on the expiry of the...

        5. Interpretation of Part 3A

          1. 15G.(1) In this Part of this Schedule— “ group ”...

      7. PART IV REDUCTIONS IN UNITED KINGDOM TAX AND DIVERSION OF PROFITS

        1. 16.(1) The provisions of this Part of this Schedule have...

        2. 17.(1) A transaction achieves a reduction in United Kingdom tax...

        3. 18.It is the main purpose or one of the main...

        4. 19.(1) The existence of a controlled foreign company achieves a...

    52. SCHEDULE 26

      RELIEFS AGAINST LIABILITY FOR TAX IN RESPECT OF CHARGEABLE PROFITS

      1. Trading losses and group relief etc.

        1. 1.(1) In any case where— (a) an amount of chargeable...

      2. Advance corporation tax

        1. 2.(1) In any case where— (a) an amount of chargeable...

      3. Gains on disposal of shares in controlled foreign companies

        1. 3.(1) This paragraph applies in any case where—

      4. Dividends from the controlled foreign company

        1. 4.(1) This paragraph applies in any case where—

        2. 5.(1) In so far as any provision of—

        3. 6.(1) In any case where— (a) on a claim for...

    53. SCHEDULE 27

      1. PART I THE DISTRIBUTION TEST

        1. Requirements as to distributions

          1. 1.(1) For the purposes of this Chapter, an offshore fund...

        2. Funds operating equalisation arrangements

          1. 2.(1) In the case of an offshore fund which throughout...

        3. Certain foreign income

          1. 3.(1) Sub-paragraph (2) below applies if any sums which form...

        4. Commodity income

          1. 4.(1) To the extent that the income of an offshore...

        5. United Kingdom equivalent profits

          1. 5.(1) Any reference in this Schedule to the United Kingdom...

      2. PART II MODIFICATIONS OF CONDITIONS FOR CERTIFICATION IN CERTAIN CASES

        1. Exclusion of investments in distributing offshore funds

          1. 6.(1) In any case where— (a) in an account period...

          2. 7.The modification referred to in paragraph 6(3)(a) above is that,...

          3. 8.(1) The modification referred to in paragraph 6(3)(b) above is...

          4. 9.(1) The references in paragraphs 7 and 8(1) above to...

        2. Offshore funds investing in trading companies

          1. 10.(1) In any case where the assets of an offshore...

        3. Offshore funds with wholly-owned subsidiaries

          1. 11.(1) In relation to an offshore fund which has a...

        4. Offshore funds with interests in dealing and management companies

          1. 12.(1) Section 760(3)(c) shall not apply to so much of...

        5. Disregard of certain investments forming less than 5 per cent. of a fund

          1. 13.(1) In any case where— (a) in any account period...

        6. Power of Board to disregard certain breaches of conditions

          1. 14.If, in the case of any account period of an...

      3. PART III CERTIFICATION PROCEDURE

        1. Application for certification

          1. 15.(1) The Board shall, in such manner as they think...

        2. Appeals

          1. 16.(1) An appeal . . . —

      4. PART IV SUPPLEMENTARY

        1. Assessment: effect of non-certification

          1. 17.No appeal may be brought against an assessment to tax...

          2. 18.(1) Without prejudice to paragraph 17 above, in any case...

        2. Postponement of tax pending determination of question as to certification

          1. 19.(1) This paragraph applies where— (a) an application has been...

        3. Information as to decisions on certification etc.

          1. 20.No obligation as to secrecy imposed by statute or otherwise...

        4. Application of this Schedule in relation to umbrella funds and funds comprising more than one class of interest

          1. 21.(1) The Treasury may make provision by regulations as to...

    54. SCHEDULE 28

      1. PART I DISPOSALS OF INTERESTS IN NON-QUALIFYING FUNDS

        1. Interpretation

          1. 1.In this Part of this Schedule “material disposal” means a...

        2. Calculation of unindexed gain

          1. 2.(1) Where there is a material disposal, there shall first...

          2. 3.(1) If the amount of any chargeable gain or allowable...

        3. Gains since 1st January 1984

          1. 4.(1) This paragraph applies where— (a) the interest in the...

        4. The offshore income gain

          1. 5.(1) Subject to sub-paragraph (2) below, a material disposal gives...

      2. PART II DISPOSALS INVOLVING AN EQUALISATION ELEMENT

        1. 6.(1) Subject to paragraph 7 below, a disposal to which...

        2. 7.(1) For the purposes of this Part of this Schedule,...

        3. 8.(1) On a disposal involving an equalisation element, the Part...

      3. Part 3 Supplementary

        1. Application of this Schedule in relation to umbrella funds and funds comprising more than one class of interest

          1. 9.(1) The Treasury may make provision by regulations as to...

    55. Schedule 28A

      Change in ownership of company with investment business: deductions

      1. Part I Significant increase in company capital

        1. General

          1. 1.The provisions referred to in section 768B(2) for determining whether...

        2. The basic rule

          1. 2.There is a significant increase in the amount of a...

        3. Amount A

          1. 3.(1) Amount A is the lower of—

        4. Amount B

          1. 4.(1) Amount B is the highest 60 day minimum amount...

        5. Capital and amounts of capital

          1. 5.(1) The capital of a company consists of the aggregate...

      2. Part II Amounts in issue for purposes of section 768B

        1. 6.The amounts in issue referred to in section 768B(4)(c) are—...

        2. 6A.For the purposes of paragraph 6(da) above, the amount for...

      3. Part III Apportionment for purposes of section 768B

        1. 7.(1) Subject to paragraph 8 below, the apportionment required by...

        2. 8.If it appears that any method of apportionment given by...

      4. Part IV Excess overdue interest

      5. Part IV Disallowed debits and non-trading deficits

        1. 9.(1) This paragraph has effect in a case to which...

        2. 9A.(1) This paragraph has effect in any case to which...

        3. 10.(1) This paragraph has effect in a case to which...

        4. 10A.(1) This paragraph has effect in any case to which...

        5. 11.(1) A debit falls within this paragraph if it is...

        6. 12.Expressions used both in this Part of this Schedule and...

      6. Part V Amounts in issue for purposes of section 768C

        1. 13.(1) The amounts in issue referred to in section 768C(3)(c)...

        2. 13A.Paragraph 6A above shall apply for the purposes of paragraph...

      7. Part VI Apportionment for purposes of section 768C

        1. 14.The apportionment required by section 768C(3)(c) shall be made as...

        2. 15.In the case of the amount mentioned in paragraph 13(1)(a)...

        3. 16.(1) Subject to paragraph 17 below, the apportionment shall be...

        4. 17.If it appears that any method of apportionment given by...

    56. SCHEDULE 28AA

      Provision not at arm’s length

      1. Basic rule on transfer pricing etc.

        1. 1.(1) This Schedule applies where— (a) provision (“the actual provision")...

      2. Provision in relation to securities: determination of arm’s length provision

        1. 1A.(1) This paragraph applies where— (a) both of the affected...

      3. Guarantees etc

        1. 1B.(1) This paragraph applies where the actual provision is made...

      4. Principles for construing rules in accordance with OECD principles

        1. 2.(1) This Schedule shall be construed (subject to paragraphs 9...

      5. Meaning of “transaction" and “series of transactions"

        1. 3.(1) In this Schedule “transaction” includes arrangements, understandings and mutual...

      6. Participation in the management, control or capital of a person

        1. 4.(1) For the purposes of this Schedule a person is...

      7. Persons acting together in relation to financing arrangements

        1. 4A.(1) A person (“P”) shall be treated for the purposes...

      8. Financing arrangements: anticipatory provision

        1. 4B.(1) To the extent that it applies to provision relating...

      9. Advantage in relation to United Kingdom taxation

        1. 5.(1) For the purposes of this Schedule . . ....

      10. Exemption for dormant companies

        1. 5A.(1) Paragraph 1(2) above does not apply in computing for...

      11. Exemption for small or medium-sized enterprises

        1. 5B.(1) Paragraph 1(2) above does not apply in computing for...

      12. Additional provisions for medium-sized enterprises

        1. 5C.(1) Paragraph 5B(1) above does not apply as respects any...

      13. Meaning of “small enterprise” and “medium-sized enterprise”

        1. 5D.(1) In this Schedule— (a) “small enterprise” means a small...

      14. Meaning of “qualifying territory” and “non-qualifying territory”

        1. 5E.(1) In this Schedule— “non-qualifying territory” means any territory which...

      15. Elimination of double counting

        1. 6.(1) This paragraph applies where— (a) only one of the...

      16. Application of paragraph 6 in relation to transfers of trading stock etc

        1. 6A.(1) Paragraph 6(2)(a) above does not affect the credits to...

      17. Compensating adjustment where advantaged person is a controlled foreign company

        1. 6B.(1) This paragraph applies in any case where—

      18. Claims under paragraph 6 where paragraph 1A applies

        1. 6C.(1) Where paragraph 1A above applies in relation to any...

      19. Compensating adjustment for guarantor company etc where paragraph 1B applies

        1. 6D.(1) This paragraph applies in any case where—

      20. Certain interest not to be regarded as chargeable

        1. 6E.Where— (a) interest is paid by any person under the...

      21. Adjustment of disadvantaged person’s double taxation relief

        1. 7.(1) Subject to sub-paragraph (4) below, where—

      22. Balancing payments between affected persons: no charge to, or relief from, tax

        1. 7A.(1) This paragraph applies where— (a) the circumstances are as...

      23. Securities: election to discharge tax liability instead of making balancing payments

        1. 7B.(1) This paragraph applies in any case where—

      24. Balancing payments by guarantor to issuer: no charge to, or relief from, tax

        1. 7C.(1) This paragraph applies in any case where—

      25. Guarantees: election to discharge tax liability instead of making balancing payments

        1. 7D.(1) This paragraph applies where the following conditions are satisfied—...

      26. Foreign exchange gains and losses and financial instruments

        1. 8.(1) Subject to sub-paragraph (3)and sub-paragraph (4) below, this Schedule...

      27. Special rules for sales etc. of oil

        1. 9.(1) Subject to paragraph 10 below, this paragraph applies to...

      28. Transactions and deemed transactions involving oil

        1. 10.This Schedule does not apply in relation to provision made...

      29. Special provision for companies carrying on ring fence trades

        1. 11.(1) This paragraph applies where any person (“the taxpayer") carries...

      30. Appeals

        1. 12.(1) Sub-paragraph (4) applies in so far as—

      31. Saving for the provisions relating to capital allowances and capital gains

        1. 13.(1) Nothing in this Schedule shall be construed as affecting—...

      32. General interpretation etc.

        1. 14.(1) In this Schedule— “the actual provision” and “the affected...

    57. SCHEDULE 28AB

      Section 804ZA: prescribed schemes and arrangements

      1. Introductory

        1. 1.(1) A scheme or arrangement, other than a scheme or...

      2. Attribution of foreign tax

        1. 2.This paragraph applies to a scheme or arrangement if the...

      3. Effect of paying foreign tax

        1. 3.(1) This paragraph applies to a scheme or arrangement if,...

      4. Effect of claim, election or other arrangement

        1. 4.(1) This paragraph applies to a scheme or arrangement if...

      5. Effect attributable to scheme or arrangement

        1. 5.(1) This paragraph applies to a scheme or arrangement if,...

      6. Tax deductible payments

        1. 6.(1) This paragraph applies to a scheme or arrangement if...

    58. SCHEDULE 28B

      Venture Capital Trusts: Meaning of “qualifying holdings”

      1. Introductory

        1. 1.(1) This Schedule applies, where any shares in or securities...

      2. Requirement that company must be unquoted company

        1. 2.(1) The requirement of this paragraph is that the relevant...

      3. Requirements as to company’s business

        1. 3.(1) The requirements of this paragraph are as follows.

      4. Meaning of “qualifying trade”

        1. 4.(1) For the purposes of this Schedule—

      5. Provisions supplemental to paragraph 4

        1. 5.(1) In paragraph 4 above— “film” means an original master...

      6. Meaning of “relevant qualifying subsidiary”

        1. 5A.(1) For the purposes of this Schedule, a company (“the...

      7. Requirements as to the money raised by the investment in question

        1. 6.(1) The requirements of this paragraph are that either—

      8. Requirement imposing a maximum on qualifying investments in the relevant company

        1. 7.(1) The requirement of this paragraph is that the relevant...

      9. Requirement as to the assets of the relevant company

        1. 8.(1) The requirement of this paragraph is that the value...

      10. Requirements as to the subsidiaries etc. of the relevant company

        1. 9.(1) The requirements of this paragraph are that . ....

      11. Meaning of “qualifying subsidiary”

        1. 10.(1) Subject to the following provisions of this paragraph, a...

      12. Requirement as to property managing subsidiaries

        1. 10ZA.(1) The requirement of this paragraph is that the relevant...

      13. Requirement that securities should not relate to a guaranteed loan

        1. 10A.(1) The requirement of this paragraph is that there are...

      14. Requirement that a proportion of the holding in each company must be eligible shares

        1. 10B.(1) The requirement of this paragraph is that eligible shares...

      15. Acquisitions for restructuring purposes

        1. 10C.(1) This paragraph applies where— (a) arrangements are made for...

      16. Conversion of convertible shares and securities

        1. 10D.(1) This paragraph applies where— (a) shares have been issued...

      17. Winding up of the relevant company

        1. 11.None of the requirements of this Schedule shall be regarded,...

      18. Company in administration or receivership

        1. 11A.(1) A company which is in administration or receivership shall...

      19. Company reorganisations etc. involving exchange of shares

        1. 11B.(1) The Treasury may by regulations make provision for cases...

      20. Power to amend Schedule

        1. 12.The Treasury may by order amend this Schedule for any...

      21. General interpretation

        1. 13.(1) Subject to paragraph 10C(15) above, in this Schedule— “debenture”...

    59. SCHEDULE 29

      CONSEQUENTIAL AMENDMENTS

      1. THE CAPITAL ALLOWANCES ACTS

        1. 1 and 2.. . . . . . . . . ....

      2. TAXES MANAGEMENT ACT 1970 c.9

        1. 3.The Taxes Management Act 1970 shall have effect subject to...

        2. 4.. . . . . . . . . ....

        3. 5.. . . . . . . . . ....

        4. 6.The following section shall be inserted after section 16—[for text...

        5. 7.(1) . . . . . . . . ....

        6. 8.(1) In subsection (1) of section 55 (recovery of tax...

        7. 9.The following Table shall be substituted for the Table in...

        8. 10.(1) The Taxes Management Act 1970, as amended by the...

      3. THE FRIENDLY SOCIETIES ACT (NORTHERN IRELAND) 1970 c.31 (N.I.)

        1. 11.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      4. THE FINANCE ACT 1973 c.51

        1. 12.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      5. FRIENDLY SOCIETIES ACT 1974 c.46

        1. 13.In section 7 of the Friendly Societies Act 1974 at...

      6. THE SOCIAL SECURITY ACTS

        1. 14.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      7. CAPITAL GAINS TAX ACT 1979 c.14

        1. 15.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        2. 16.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        3. 17.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        4. 18.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        5. 19.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        6. 20.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        7. 21.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        8. 22.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        9. 23.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        10. 24.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        11. 25.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        12. 26.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        13. 27.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        14. 28.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      8. ADMINISTRATION OF JUSTICE ACT 1985 c.61

        1. 30.In paragraph 36(3) of Schedule 2 to the Administration of...

      9. LAW REFORM (MISCELLANEOUS PROVISIONS) (SCOTLAND) ACT 1985 c.73

        1. 31.In Schedule 1 to the Law Reform (Miscellaneous Provisions) (Scotland)...

      10. TRANSLATION OF REFERENCES TO ENACTMENTS REPEALED AND RE-ENACTED

        1. 32.In the enactments specified in Column 1 of the following...

    60. SCHEDULE 30

      TRANSITIONAL PROVISIONS AND SAVINGS

      1. Corporation tax payment dates

        1. 1.(1) In this paragraph, an “old company” means a company...

      2. Duration of leases

        1. 2.(1) Subject to sub-paragraph (2) and paragraph 3 below, section...

        2. 3.(1) Sections 24 and 38 shall have effect subject to...

        3. 4.(1) Where section 38 does not have effect, the following...

      3. Repeal of section 136 of the Income Tax Act 1952: allowance of annual value of land as a business expense

        1. 5.(1) This paragraph has effect for allowing deductions by reference...

      4. Loss relief etc.

        1. 6.(1) The substitution of this Act for the corresponding enactments...

        2. 7.(1) This paragraph shall apply with respect to claims for...

      5. Capital allowances

        1. 8.Without prejudice to paragraphs 6 and 7 above, where a...

      6. Social security benefits

        1. 9.(1) In relation to any period before regulations containing the...

      7. Children's settlements: irrevocable dispositions made before 22nd April 1936

        1. 10.(1) Sub-paragraph (2) below applies to any disposition which —...

      8. Pre-1959 settlements

        1. 11.(1) Where, in the case of any settlement made before...

        2. 12.Where, in the case of any settlement made before 9th...

      9. General powers of amendment in Acts relating to overseas countries

        1. 13.Where under any Act passed before this Act and relating...

      10. Double taxation agreements

        1. 14.The repeal by this Act of section 16 of the...

      11. Securities

        1. 15.The repeal by this Act of Schedule 22 to the...

      12. Building societies

        1. 16.Any enactment relating to building societies contained in this Act...

      13. Pension business

        1. 17.Any reference to pension business in any enactment (other than...

      14. Stock relief

        1. 18.Schedule 9 to the Finance Act 1981 shall continue to...

        2. 18A.(1) This paragraph applies in any case where a person...

      15. Schedule E emoluments

        1. 19.The repeal by this Act of section 21 of the...

      16. Unitary states

        1. 20.The repeal by this Act of section 54 of and...

      17. Continuity and construction of references to old and new law

        1. 21.(1) The continuity of the operation of the Tax Acts...

    61. SCHEDULE 31

      REPEALS

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