Income and Corporation Taxes Act 1988

1. Introductory Text

2. PART I THE CHARGE TO TAX

   1. Income tax

      1. 1. The charge to income tax

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

      3. 3. Certain income charged at basic rate

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

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

      5. 10. Time for payment of tax

      6. 11. Companies not resident in United Kingdom

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

   3. Small companies' rate

      1. 13. Small companies' relief

   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 AND THE ASSOCIATED SCHEDULE D CHARGES

   1. General

      1. 21. Persons chargeable

      2. 22. Assessments

      3. 23. Collection from lessees and agents

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

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

   3. Premiums, leases at undervalue etc

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

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

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

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

      5. 38. Rules for ascertaining duration of leases

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

   4. Supplemental: Schedules A and D

      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 sections 34 to 36

      4. 43. Non-residents

4. PART III PROVISIONS RELATING TO THE SCHEDULE C CHARGE AND GENERAL PROVISIONS ABOUT 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. 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. 57. Deep discount securities

      6. 58. Foreign pensions

      7. 59. Persons chargeable

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

      1. Cases I and II

         1. 60. Assessment on preceding year basis

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

         3. 62. Special basis for early years following commencement

         4. 63. Special basis on discontinuance

      2. Cases III, IV and V

         1. 64. Case III assessments: general

         2. 65. Cases IV and V assessments: general

         3. 66. Special rules for fresh income

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

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

      3. Case VI

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

   3. CHAPTER III CORPORATION TAX: BASIS OF ASSESSMENT ETC

      1. 70. Basis of assessment etc

   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: investment companies

         3. 76. Expenses of management: insurance companies

         4. 77. Incidental costs of obtaining loan finance

         5. 78. Discounted bills of exchange

         6. 79. Contributions to local enterprise agencies

         7. 80. Expenses connected with foreign trades etc

         8. 81. Travel between trades etc

         9. 82. Interest paid to non-residents

         10. 83. Patent fees etc. and expenses

         11. 84. Payments for technical education

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

         13. 86. Employees seconded to charities and educational establishments

         14. 87. Taxable premiums etc

         15. 88. Payments to Export Credit Guarantee Department

         16. 89. Debts proving irrecoverable after event treated as discontinuance

         17. 90. Additional payments to redundant employees

         18. 91. Cemeteries

      2. 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 dealer’s receipts on purchase by company of own shares

      3. Special provisions

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

         2. 97. Treatment of farm animals etc

         3. 98. Tied premises

         4. 99. Dealers in land

   6. CHAPTER VI DISCONTINUANCE, AND CHANGE OF BASIS OF COMPUTATION

      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 or change of basis

         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. Supplemental

         1. 110. Interpretation etc

   7. CHAPTER VII PARTNERSHIPS AND SUCCESSIONS

      1. General

         1. 111. Partnership assessments to income tax

         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

   8. 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 non-taxable consideration

      8. 126. Treasury securities issued at a discount

      9. 127. Enterprise allowance

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

      11. 129. Stock lending

      12. 130. Meaning of “investment company” for purposes of Part IV

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

      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

      4. Living accommodation

         1. 145. Living accommodation provided for employee

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

         3. 147. Occupation of Chevening House

      5. Payments on retirement, sick pay etc.

         1. 148. Payments on retirement or removal from office or employment

         2. 149. Sick pay

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

         4. 151. Income support etc

         5. 152. Notification of amount taxable under section 151

   2. CHAPTER II SUPPLEMENTARY CHARGING PROVISIONS APPLICABLE TO DIRECTORS AND HIGHER-PAID EMPLOYEES AND OFFICE HOLDERS

      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. 156. Cash equivalents of benefits charged under section 154

         4. 157. Cars available for private use

         5. 158. Car fuel

         6. 159. Pooled cars

         7. 160. Beneficial loan arrangements

         8. 161. Exceptions from section 160

         9. 162. Employee shareholdings

         10. 163. Expenses connected with living accommodation

         11. 164. Director’s tax paid by employer

         12. 165. Scholarships

      3. General supplementary provisions

         1. 166. Notice of nil liability under this Chapter

         2. 167. Meaning of “director’s or higher-paid employment”

         3. 168. Other interpretative provisions

   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. 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. Retirement benefits etc.

         1. 188. Exemptions from section 148

         2. 189. Lump sum benefits on retirement

         3. 190. Payments to Members of Parliament, Representatives to the European Parliament and others

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

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

         1. 192. Relief from tax for foreign emoluments

         2. 193. Foreign earnings and travel expenses

         3. 194. Other foreign travel expenses

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

         5. 196. Foreign pensions

         6. 197. Leave travel facilities for the armed forces

      4. Other expenses, subscriptions etc.

         1. 198. Relief for necessary expenses

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

         3. 200. Expenses of Members of Parliament

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

         5. 202. Donations to charity: payroll deduction scheme

   5. CHAPTER V ASSESSMENT, COLLECTION, RECOVERY AND APPEALS

      1. 203. Pay as you earn

      2. 204. P.A.Y.E repayments

      3. 205. Assessments unnecessary in certain circumstances

      4. 206. Additional provision for certain assessments

      5. 207. Disputes as to domicile or ordinary residence

7. PART VI COMPANY DISTRIBUTIONS, TAX CREDITS ETC

   1. CHAPTER I TAXATION OF COMPANY DISTRIBUTIONS

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

      3. 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. 214. Chargeable payments connected with exempt distributions

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

         4. 216. Returns

         5. 217. Information

         6. 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

   4. CHAPTER IV TAX CREDITS

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

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

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

      4. 234. Information relating to distributions

      5. 235. Distributions of exempt funds etc

      6. 236. Provisions supplementary to section 235

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

   6. 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. 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. 257. Personal relief

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

         4. 259. Additional relief in respect of children

         5. 260. Apportionment of relief under section 259

         6. 261. Claims under sections 258 and 259 for year of marriage

         7. 262. Widows' bereavement allowance

         8. 263. Dependent relatives

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

         10. 265. Relief for blind persons

         11. 266. Life assurance premiums

         12. 267. Qualifying policies

         13. 268. Early conversion or surrender of life policies

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

         15. 270. Provisions supplementary to sections 268 and 269

         16. 271. Deemed surrender in cases of certain loans

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

         18. 273. Payments securing widows' and children’s annuities

         19. 274. Limits on relief under sections 266 and 273

      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

      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 married women living with their husbands

      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 RELIEF FOR INVESTMENT IN CORPORATE TRADES: THE BUSINESS EXPANSION SCHEME

      1. 289. The relief

      2. 290. Minimum and maximum subscriptions

      3. 291. Individuals qualifying for relief

      4. 292. Parallel trades

      5. 293. Qualifying companies

      6. 294. Companies with interests in land

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

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

      9. 297. Qualifying trades

      10. 298. Provisions supplementary to sections 293 and 297

      11. 299. Disposal of shares

      12. 300. Value received from company

      13. 301. Provisions supplementary to section 300

      14. 302. Replacement capital

      15. 303. Value received by persons other than claimants

      16. 304. Husband and wife

      17. 305. Reorganisation of share capital

      18. 306. Claims

      19. 307. Withdrawal of relief

      20. 308. Application to subsidiaries

      21. 309. Further provisions as to subsidiaries

      22. 310. Information

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

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

      16. 328. Funds in court

      17. 329. Interest on damages for personal injuries

      18. 330. Compensation for National-Socialist persecution

      19. 331. Scholarship income

      20. 332. Expenditure and houses of ministers of religion

      21. 333. Personal equity plans

   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. Companies beginning or ceasing to carry on a trade

      2. 338. Allowance of charges on income and capital

      3. 339. Charges on income: donations to charity

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

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

      6. 342. Tax on company in liquidation

      7. 343. Company reconstructions without a change of ownership

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

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

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

       4. 351. Small maintenance payments

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

       6. 358. Relief where borrower deceased

       7. 359. Loan to buy machinery or plant

       8. 360. Loan to buy interest in close company

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

       10. 362. Loan to buy into partnership

       11. 363. Provisions supplementary to sections 360 to 362

       12. 364. Loan to pay inheritance tax

       13. 365. Loan to buy life annuity

       14. 366. Information

       15. 367. Provisions supplementary to sections 354 to 366

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

       8. 376. Qualifying borrowers and qualifying lenders

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

       10. 378. Supplementary regulations

       11. 379. Interpretation of sections 369 to 378

11. PART X LOSS RELIEF AND GROUP RELIEF

    1. CHAPTER I LOSS RELIEF: INCOME TAX

       1. 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. 385. Carry-forward against subsequent profits

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

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

          9. 388. Carry-back of terminal losses

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

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

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

       2. Case VI losses

          1. 392. Case VI losses

    2. CHAPTER II LOSS RELIEF: CORPORATION TAX

       1. Trade etc. losses

          1. 393. Losses other than terminal losses

          2. 394. Terminal losses

          3. 395. Leasing contracts and company reconstructions

       2. Case VI losses

          1. 396. Case VI losses

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

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

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

       6. 407. Relationship between group relief and other relief

       7. 408. Corresponding accounting periods

       8. 409. Companies joining or leaving group or consortium

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

       10. 411. Exclusion of double allowances

       11. 412. Claims and adjustments

       12. 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. 432. Separation of different classes of business

          3. 433. Profits reserved for policy holders and annuitants

          4. 434. Franked investment income etc

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

          6. 436. Annuity business and pension business: separate charge on profits

          7. 437. General annuity business

          8. 438. Pension business: exemption from tax

          9. 439. Restricted government securities

          10. 440. Identification or exchange of long term assets

          11. 441. Foreign life assurance funds

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

          13. 443. Life policies carrying rights not in money

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

       2. 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

       3. 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

       4. Capital redemption business

          1. 458. Capital redemption business

    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. 462. Conditions for tax exempt business

          4. 463. Life or endowment business: application of the Corporation Tax Acts

          5. 464. Maximum benefits payable to members

          6. 465. Old societies

          7. 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. 469. Other unit trusts

          3. 470. Transitional provisions relating to unit trusts

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

          4. 474. Treatment of tax-free income

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

       4. 479. Interest paid on deposits with banks etc

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

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

       7. 482. Supplementary provisions

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

       9. 484. Savings banks: exemption from tax

       10. 485. Savings banks: supplemental

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

       12. 487. Credit unions

       13. 488. Co-operative housing associations

       14. 489. Self-build societies

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

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

    5. CHAPTER V 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. Charges on income

       4. 495. Regional development grants

       5. 496. Tariff receipts

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

       7. 498. Limited right to carry back surrendered ACT

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

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

       10. 501. Interest on repayment of PRT

       11. 502. Interpretation of Chapter V

    6. CHAPTER VI MISCELLANEOUS BUSINESSES AND BODIES

       1. 503. Letting of furnished holiday accommodation treated as a trade

       2. 504. Supplementary provisions

       3. 505. Charities: general

       4. 506. Qualifying expenditure and non-qualifying expenditure

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

       6. 508. Scientific research organisations

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

       8. 510. Agricultural societies

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

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

       11. 513. British Airways Board and National Freight Corporation

       12. 514. Funds for reducing the National Debt

       13. 515. Signatories to Operating Agreement for INMARSAT

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

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

       16. 518. Harbour reorganisation schemes

       17. 519. Local authorities

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: death, 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 the 1968 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. 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. 540. Life policies: chargeable events

       3. 541. Life policies: computation of gain

       4. 542. Life annuity contracts: chargeable events

       5. 543. Life annuity contracts: computation of gain

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

       7. 545. Capital redemption policies

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

       9. 547. Method of charging gain to tax

       10. 548. Deemed surrender of certain loans

       11. 549. Certain deficiencies allowable as deductions

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

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

       14. 552. Information: duty of insurers

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

       16. 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 or gains

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

       3. 561. Exceptions from section 559

       4. 562. Conditions to be satisfied by individuals

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

       6. 564. Conditions to be satisfied by firms

       7. 565. Conditions to be satisfied by companies

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

       9. 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 VI OTHER PROVISIONS

       1. Relief for losses on unquoted shares in trading companies

          1. 573. Relief for companies

          2. 574. Relief for individuals

          3. 575. Exclusion of relief under section 573 or 574 in certain cases

          4. 576. Provisions supplementary to sections 573 to 575

       2. Miscellaneous

          1. 577. Business entertaining expenses

          2. 578. Housing grants

          3. 579. Statutory redundancy payments

          4. 580. Provisions supplementary to section 579

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

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

          7. 583. Inter-American Development Bank

          8. 584. Relief for unremittable overseas income

          9. 585. Relief from tax on delayed remittances

          10. 586. Disallowance of deductions for war risk premiums

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

          12. 588. Training courses for employees

          13. 589. Qualifying courses of training 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. 591. Discretionary approval

       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. 597. Charge to tax: pensions

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

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

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

          7. 601. Charge to tax: payments to employers

          8. 602. Regulations relating to pension fund surpluses

          9. 603. Reduction of surpluses

       4. Supplementary provisions

          1. 604. Application for approval of a scheme

          2. 605. Information

          3. 606. Responsibilities of administrator of scheme, and employer

          4. 607. Pilots' benefit fund

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

          6. 609. Schemes approved before 23rd July 1987

          7. 610. Amendments of schemes

          8. 611. Definition of “retirement benefits scheme”

          9. 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

    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

       2. Restrictions on approval

          1. 632. Establishment of schemes

          2. 633. Scope of benefits

          3. 634. Annuity to member

          4. 635. Lump sum to member

          5. 636. Annuity after death of member

          6. 637. Lump sum on death of member

          7. 638. Other restrictions on approval

       3. Tax reliefs

          1. 639. Member’s contributions

          2. 640. Maximum amount of deductions

          3. 641. Carry-back of contributions

          4. 642. Carry-forward of relief

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

          6. 644. Meaning of “relevant earnings”

          7. 645. Earnings from pensionable employment

          8. 646. Meaning of “net relevant earnings”

       4. Charge to tax

          1. 647. Unauthorised payments

          2. 648. Contributions under unapproved arrangements

       5. Miscellaneous

          1. 649. Minimum contributions under Social Security Act 1986

          2. 650. Withdrawal of approval

          3. 651. Appeals

          4. 652. Information about payments

          5. 653. Information: penalties

          6. 654. Remuneration of Ministers and other officers

          7. 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. 659. Financial futures and traded options

16. PART XV SETTLEMENTS

    1. 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

    2. 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

    3. CHAPTER III REVOCABLE SETTLEMENTS ETC.

       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. 675. Provisions supplementary to sections 671 to 674

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

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

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

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

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

       11. 681. Interpretation of Chapter III

       12. 682. Ascertainment of undistributed income

    4. CHAPTER IV LIABILITY TO HIGHER RATE AND ADDITIONAL RATE TAX

       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. 686. Liability to additional rate tax of certain income of discretionary trusts

          2. 687. Payments under discretionary trusts

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

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

    5. 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 at 30 per cent. in certain cases

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

    6. 700. Adjustments and information

    7. 701. Interpretation

    8. 702. Application to Scotland

18. PART XVII TAX AVOIDANCE

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

       1. 703. Cancellation of tax advantage

       2. 704. The prescribed circumstances

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

       4. 706. The tribunal

       5. 707. Procedure for clearance in advance

       6. 708. Power to obtain information

       7. 709. Meaning of “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. 723. Foreign securities: delayed remittances

          5. 724. Insurance companies

          6. 725. Lloyd’s underwriters

          7. 726. Building societies

          8. 727. Stock lending

          9. 728. Information

       4. Other transfers of securities

          1. 729. Sale and repurchase of securities

          2. 730. Transfers of income arising from securities

       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. 737. Manufactured dividends: treatment of tax deducted

       7. Supplemental

          1. 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

       4. 742. Interpretation of sections 739 to 741

       5. 743. Supplemental provisions

       6. 744. No duplication of charge

       7. 745. Power to obtain information

       8. 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. 748. Limitations on direction-making power

       3. 749. Residence and interest

       4. 750. Territories with a lower level of taxation

       5. 751. Accounting periods and creditable tax

       6. 752. Apportionment of chargeable profits and creditable tax

       7. 753. Notices and appeals

       8. 754. Assessment, recovery and postponement of tax

       9. 755. Information relating to controlled foreign companies

       10. 756. Interpretation and construction of Chapter IV

    5. CHAPTER V OFFSHORE FUNDS

       1. 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

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

          4. 764. Offshore income gains of trustees

    6. CHAPTER VI MISCELLANEOUS

       1. Migration etc. of company

          1. 765. Migration etc.of companies

          2. 766. Offences under section 765

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

       2. Change in ownership of company

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

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

       3. Transactions between associated persons

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

          2. 771. Transactions by petroleum companies

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

          4. 773. Interpretation of sections 770 and 771

          5. 774. Transactions between dealing company and associated company

       4. Other provisions

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

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

          3. 777. Provisions supplementary to sections 775 and 776

          4. 778. Power to obtain information

          5. 779. Sale and lease-back: limitation on tax reliefs

          6. 780. Sale and lease-back: taxation of consideration received

          7. 781. Assets leased to traders and others

          8. 782. Leased assets: special cases

          9. 783. Leased assets: supplemental

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

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

          12. 786. Transactions associated with loans or credit

          13. 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 countries

       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. 794. Requirement as to residence

          4. 795. Computation of income subject to foreign tax

          5. 796. Limits on credit: income tax

          6. 797. Limits on credit: corporation tax

          7. 798. Interest on certain overseas loans

       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. 802. U.K. insurance companies trading overseas

          5. 803. Underlying tax reflecting interest on loans

       3. Miscellaneous rules

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

          2. 805. Elections against credit

          3. 806. Time limit for claims etc

    3. CHAPTER III MISCELLANEOUS PROVISIONS

       1. 807. Sale of securities with or without accrued interest

       2. 808. Restriction on deduction of interest or dividends from trading income

       3. 809. Relief in respect of discretionary trusts

       4. 810. Postponement of capital allowances to secure double taxation relief

       5. 811. Deduction for foreign tax where no credit allowable

       6. 812. Withdrawal of right to tax credit of certain non-resident companies connected with unitary states

       7. 813. Recovery of tax credits incorrectly paid

       8. 814. Arrangements to avoid section 812

       9. 815. Power to inspect documents

       10. 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. 827. VAT penalties etc

       12. 828. Orders and regulations made by the Treasury or the Board

       13. 829. Application of Income Tax Acts to public departments and avoidance of exempting provisions

       14. 830. Territorial sea and designated areas

    2. Interpretation

       1. 831. Interpretation of this Act

       2. 832. Interpretation of the Tax Acts

       3. 833. Interpretation of Income Tax Acts

       4. 834. Interpretation of the Corporation Tax Acts

       5. 835. “Total income” in the Income Tax Acts

       6. 836. Returns of total income

       7. 837. “Annual value” of land

       8. 838. Subsidiaries

       9. 839. Connected persons

       10. 840. Meaning of “control” in certain contexts

       11. 841. Recognised stock exchange and recognised investment exchanges

       12. 842. Investment trusts

    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 1

       RESTRICTIONS ON SCHEDULE A DEDUCTIONS

       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...

    2. SCHEDULE 2

       PREMIUMS ETC. TAXABLE UNDER SCHEDULES A AND D: SPECIAL RELIEF FOR INDIVIDUALS

       1. 1. A claim for relief under this Schedule shall be made...

       2. 2. The relief shall be computed in accordance with paragraphs 3...

       3. 3. There shall be computed— (a) the amount of the tax...

       4. 4. (1) Where the relief is to be given in respect...

       5. 5. A provision of paragraph 3 or 4 above requiring tax...

       6. 6. A provision of paragraph 3 or 4 above shall apply...

    3. SCHEDULE 3

       MACHINERY FOR ASSESSMENT, CHARGE AND PAYMENT OF INCOME TAX UNDER SCHEDULE C AND, IN CERTAIN CASES, SCHEDULE D

       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. 7. The Board shall have all necessary powers in relation to...

          3. 8. The chargeable person shall out of moneys in his hands...

          4. 9. The chargeable person shall pay the income tax into the...

          5. 10. (1) Subject to sub-paragraph (2) below, a chargeable person who...

          6. 11. Nothing in paragraphs 6 to 10 above shall impose on...

          7. 12. Where income tax in respect of the proceeds of the...

          8. 13. (1) Without prejudice to the generality of paragraph 7 above,...

          9. 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...

    4. SCHEDULE 4

       DEEP DISCOUNT SECURITIES

       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 is redeemed before the...

       9. Identification of securities disposed of

          1. 12. The rules contained in section 88 of the Finance Act...

       10. Information

           1. 13. (1) Every company which issues deep discount securities shall cause...

       11. Charities

           1. 14. A charity shall be exempt from income tax in respect...

    5. SCHEDULE 5

       TREATMENT OF FARM ANIMALS ETC. FOR PURPOSES OF CASE I OF SCHEDULE D

       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...

    6. SCHEDULE 6

       TAXATION OF DIRECTORS AND OTHERS IN RESPECT OF CARS

       1. PART I TABLES OF FLAT RATE CASH EQUIVALENTS

       2. PART II SUPPLEMENTARY PROVISIONS

          1. Application of Tables A and B

             1. 1. (1) In the case of cars with an original market...

          2. Reduction for periods when car not available for use

             1. 2. (1) If, for any part of the relevant year, the...

          3. Car used preponderantly for business purposes

             1. 3. (1) The cash equivalent derived from Table A, B or...

          4. Reduction for employee paying for use of car

             1. 4. If in the relevant year the employee was required, as...

          5. Cars with insubstantial business use and additional cars

             1. 5. (1) The cash equivalent derived from Table A, B or...

    7. SCHEDULE 7

       TAXATION OF BENEFIT FROM LOANS OBTAINED BY REASON OF EMPLOYMENT

       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. In the absence of a requirement or election that paragraph...

          3. Election for alternative method of calculation

             1. 5. (1) For any year of assessment (“the relevant year”) the...

       3. PART III EXCEPTIONS WHERE INTEREST ELIGIBLE FOR RELIEF

          1. 6. Interest is eligible for relief for the purposes of this...

          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. SCHEDULE 8

       PROFIT-RELATED PAY SCHEMES: CONDITIONS FOR REGISTRATION

       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. 14. (1) Method B is that the distributable pool is—

          5. 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. 20. (1) The scheme must provide that, in preparing a profit...

    9. 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. 9. (1) A share option scheme must provide for directors and...

          4. 10. Scheme shares must form part of the ordinary share capital...

          5. 11. Scheme shares must be— (a) shares of a class quoted...

          6. 12. (1) Scheme shares must be— (a) fully paid up;

          7. 13. (1) In determining, in the case of a share option...

          8. 14. (1) Except where scheme shares are shares in a company...

          9. 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. The price at which scheme shares may be acquired by...

       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...

    10. 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. Subject to paragraph 6(4) below, for the purposes of any...

        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...

        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...

    11. SCHEDULE 11

        RELIEF AS RESPECTS TAX ON PAYMENTS ON RETIREMENT OR REMOVAL FROM OFFICE OR EMPLOYMENT

        1. PART I GENERAL PROVISIONS

           1. Preliminary

              1. 1. Relief shall be allowed in accordance with the following provisions...

              2. 2. (1) A person shall not be entitled to relief under...

           2. Relief by reduction of sums chargeable

              1. 3. In computing the charge to tax in respect of a...

           3. Relief by reduction of tax

              1. 4. (1) Subject to sub-paragraph (2) below, in the case of...

              2. 5. (1) Subject to sub-paragraph (2) below, in the case of...

              3. 6. Where tax is chargeable under section 148 in respect of...

              4. 7. Where tax is chargeable under section 148 in respect of...

           4. Supplemental

              1. 8. Any reference in this Schedule to the emoluments of an...

              2. 9. In this Schedule “the relevant date” means, in relation to...

              3. 10. In this Schedule, “foreign service”, in relation to an office...

              4. 11. Any reference in this Schedule to the amount of tax...

        2. PART II PAYMENTS IN PURSUANCE OF PRE-10th MARCH 1981 OBLIGATIONS

           1. 12. Where a payment is made in pursuance of an obligation...

           2. 13. The following paragraphs shall be inserted immediately before paragraph 3—...

           3. 14. In paragraph 3, after the words “from the payment” there...

           4. 15. In paragraph 4(1), for the words following sub-pargraph (b) there...

           5. 16. The following paragraphs shall be inserted after paragraph 5— (1) Where the income of the holder or past holder...

           6. 17. The following proviso shall be added at the end of...

           7. 18. The following words shall be added at the end of...

           8. 19. The following paragraph shall be inserted after paragraph 8— In this Schedule “payment of compensation for loss of office”...

    12. SCHEDULE 12

        FOREIGN EARNINGS

        1. 1. This Schedule shall have effect for the purpose of supplementing...

        2. Emoluments eligible for relief

           1. 2. (1) This paragraph has effect where a deduction falls to...

        3. Qualifying periods

           1. 3. (1) For the purposes of section 193(1) a qualifying period...

        4. 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...

    13. SCHEDULE 13

        COLLECTION OF ADVANCE CORPORATION TAX

        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. Receipt of franked investment income after payment of advance corporation tax

           1. 4. (1) This paragraph shall have effect where—

        5. 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...

        6. Qualifying distributions which are not payments and payments of uncertain nature

           1. 7. (1) This paragraph applies to— (a) any qualifying distribution which...

        7. Items included in error

           1. 8. Where any item has been included in a return under...

        8. Qualifying distribution made otherwise than in an accounting period

           1. 9. Where a company makes a qualifying distribution on a date...

        9. Assessments and due date of tax

           1. 10. (1) All the provisions of the Corporation Tax Acts as...

    14. SCHEDULE 14

        PROVISIONS ANCILLARY TO SECTION 266

        1. PART I MODIFICATION OF SECTION 266 IN CERTAIN CASES

           1. Husband and wife

              1. 1. (1) The references in section 266 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...

    15. SCHEDULE 15

        QUALIFYING POLICIES

        1. PART I QUALIFYING CONDITIONS

           1. General rules applicable to whole life and term assurances

              1. 1. (1) Subject to the following provisions of this Part of...

           2. General rules applicable to endowment assurances

              1. 2. (1) Subject to the following provisions of this Part of...

           3. 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 friendly society,...

              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. (iii) Family income policies and mortgage protection policies

                 1. 9. (1) The following provisions apply to any policy which is...

           4. 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 mortality risk

                 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. (iv) Additional premiums under section 72(9) of the Finance Act 1984

                 1. 16. In determining whether a policy is a qualifying policy, no...

              7. (vii) Substitutions 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...

        2. 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...

        3. 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 paragraphs 21...

    16. SCHEDULE 16

        COLLECTION OF INCOME TAX ON COMPANY PAYMENTS WHICH ARE NOT DISTRIBUTIONS

        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) Subject to sub-paragraph (4) below, income tax in respect...

        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. Items included in error

           1. 8. Where any item has been included in a return or...

        7. Relevant payment made otherwise than in accounting period

           1. 9. Where a company makes a relevant payment on a date...

        8. Assessments and due date of tax

           1. 10. (1) All the provisions of the Income Tax Acts as...

        9. Saving

           1. 11. Nothing in paragraphs 1 to 10 above shall be taken...

    17. SCHEDULE 17

        DUAL RESIDENT INVESTING COMPANIES

        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...

    18. SCHEDULE 18

        GROUP RELIEF: EQUITY HOLDERS AND PROFITS OR ASSETS AVAILABLE FOR DISTRIBUTION

        1. 1. (1) For the purposes of section 413(7) to (9) and...

        2. 2. (1) Subject to the following provisions of this Schedule, for...

        3. 3. (1) Subject to the following provisions of this Schedule, for...

        4. 4. (1) This paragraph applies if any of the equity holders—...

        5. 5. (1) This paragraph applies if, at any time in the...

        6. 6. For the purposes of section 413(7) to (9) and paragraphs...

        7. 7. (1) In this Schedule “the relevant accounting period” means—

    19. SCHEDULE 19

        APPORTIONMENT OF INCOME OF CLOSE COMPANIES

        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 10 and 12 below, the relevant...

           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...

              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 12 below, where a company is...

           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...

    20. SCHEDULE 20

        CHARITIES: QUALIFYING INVESTMENTS AND LOANS

        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. 4. Any interest in land, other than an interest held as...

           5. 5. Shares in, or securities of, a company which are quoted...

           6. 6. Units, or other shares of the investments subject to the...

           7. 7. (1) Deposits with an institution authorised under the Banking Act...

           8. 8. Certificates of deposit as defined in section 56(5).

           9. 9. (1) Any loan or other investment as to which the...

        2. PART II QUALIFYING LOANS

           1. 10. For the purposes of section 506, a loan which is...

        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...

    21. 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...

    22. SCHEDULE 22

        REDUCTION OF PENSION FUND SURPLUSES

        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. 8. (1) The Board may make regulations providing that an appeal...

    23. SCHEDULE 23

        OCCUPATIONAL PENSION SCHEMES: SCHEMES APPROVED BEFORE 23rd JULY 1987

        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) This 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,...

    24. 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...

        2. Group relief etc.

           1. 5. The company shall be assumed to be neither a member...

           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 section 343 in a...

        4. Losses in pre-direction accounting periods

           1. 9. (1) Subject to sub-paragraph (2) below, this paragraph applies in...

        5. Capital allowances

           1. 10. (1) Subject to paragraphs 11 and 12 below, if, in...

           2. 11. (1) This paragraph applies in any case where it appears...

        6. Unremittable overseas income

           1. 12. For the purposes of the application of section 584 to...

    25. SCHEDULE 25

        CASES EXCLUDED FROM DIRECTION-MAKING POWERS

        1. PART I ACCEPTABLE DISTRIBUTION POLICY

           1. 1. The provisions of this Part of this Schedule have effect...

           2. 2. (1) Subject to sub-paragraph (2) below, a controlled foreign company...

           3. 3. (1) Subject to sub-paragraphs (2) and (5) below, for the...

           4. 4. (1) For the purposes of this Part of this Schedule,...

        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. 12. (1) Subject to sub-paragraph (2) below, in paragraphs 6 and...

        3. 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...

        4. 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...

    26. 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...

    27. SCHEDULE 27

        DISTRIBUTING FUNDS

        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. Income taxable under Case IV or Case V of Schedule D

              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 to the Special Commissioners—

        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) In any case 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...

    28. SCHEDULE 28

        COMPUTATION OF OFFSHORE INCOME GAINS

        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...

    29. SCHEDULE 29

        CONSEQUENTIAL AMENDMENTS

        1. THE CAPITAL ALLOWANCES ACTS

           1. 1. The Capital Allowances Act 1968 and Part III of the...

           2. 2. No allowance shall be made under Chapter I of Part...

        2. TAXES MANAGEMENT ACT 1970 c. 9

           1. 3. The Taxes Management Act 1970 shall have effect subject to...

           2. 4. The following subsections shall be inserted in section 8 after...

           3. 5. In section 16(1)(c) and (2)(b) after “copyright” there shall be...

           4. 6. The following section shall be inserted after section 16— Agency...

           5. 7. (1) In subsection (1) of section 18 after the words...

           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. In section 1 of the Friendly Societies Act (Northern Ireland)...

        4. THE FINANCE ACT 1973 c. 51

           1. 12. In section 38 of the Finance Act 1973 the following...

        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. In section 9(1) of the Social Security Act 1975 and...

        7. CAPITAL GAINS TAX ACT 1979 c. 14

           1. 15. In the Capital Gains Tax Act 1979—

           2. 16. In section 18 (residence etc.) the following subsections shall be...

           3. 17. In section 31 (consideration chargeable to tax on income) the...

           4. 18. The following section shall be inserted after section 32— Expenditure:...

           5. 19. In section 33 (exclusion of certain expenditure) the following subsection...

           6. 20. The following section shall be inserted after section 33— Transfer...

           7. 21. In section 101 the following subsection shall be inserted after...

           8. 22. The following section shall be inserted after section 123— Harbour...

           9. 23. The following section shall be inserted after section 132— Deep...

           10. 24. The following section shall be inserted after section 142— Disposal...

           11. 25. The following section shall be inserted after section 144— Profit...

           12. 26. The following sections shall be inserted after section 149— Building...

           13. 27. In section 155 (interpretation) after subsection (1) there shall be...

           14. 28. In section 157 (savings) after subsection (1) there shall be...

        8. FINANCE ACT 1982 c. 39

           1. 29. In section 134(1) after second “Act” there shall be inserted...

        9. ADMINISTRATION OF JUSTICE ACT 1985 c. 61

           1. 30. In paragraph 36(3) of Schedule 2 to the Administration of...

        10. LAW REFORM (MISCELLANEOUS PROVISIONS) (SCOTLAND) ACT 1985 c. 73

            1. 31. In Schedule 1 to the Law Reform (Miscellaneous Provisions) (Scotland)...

        11. TRANSLATION OF REFERENCES TO ENACTMENTS REPEALED AND RE-ENACTED

            1. 32. In the enactments specified in Column 1 of the following...

    30. 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...

        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...

    31. SCHEDULE 31

        REPEALS