Income Tax (Trading and Other Income) Act 2005
Part 1Overview
1Overview of Act
2Overview of priority rules
Part 2Trading income
Chapter 1Introduction
3Overview of Part 2
4Provisions which must be given priority over Part 2
Chapter 2Income taxed as trade profits
Charge to tax on trade profits
5Charge to tax on trade profits
6Territorial scope of charge to tax
6AArrangements for avoiding tax
6BTrade of dealing in or developing UK land
7Income charged
8Person liable
Trades and trade profits
9Farming and market gardening
10Commercial occupation of land other than woodlands
11Commercial occupation of woodlands
12Profits of mines, quarries and other concerns
13Visiting performers
14Visiting performers: supplementary
15Divers and diving supervisors
16Oil extraction and related activities
16AVoluntary office-holders: compensation for lost profits
16BPayments to company directors
16CProfessionals in practice: incidental income from an office or employment
Starting and ceasing to trade
17Effect of becoming or ceasing to be a UK resident
18Effect of company starting or ceasing to be within charge to income tax
Trading income and property income
19Tied premises
20Caravan sites where trade carried on
21Surplus business accommodation
22Payments for wayleaves
Trading allowance
22ATrading allowance
Rent-a-room and qualifying care relief
23Rent-a-room and qualifying care relief
Trading income provided through third parties
23AApplication of section 23E: conditions
23BMeaning of “relevant benefit”
23CMeaning of “qualifying third party payment”
23DOther definitions
23ETax treatment of relevant benefits
23FRelevant benefits: persons other than T
23GAnti-avoidance
23HDouble taxation
Chapter 3Trade profits: basic rules
24Professions and vocations
25Generally accepted accounting practice
25ACash basis for small businesses
26Losses calculated on same basis as profits
27Receipts and expenses
28Items treated under CAA 2001 as receipts and expenses
28AMoney's worth
29Interest
30Animals kept for trade purposes
31Relationship between rules prohibiting and allowing deductions
Chapter 3ATrade profits: cash basis
Eligibility
31AConditions to be met for profits to be calculated on cash basis
31BRelevant maximum
31CExcluded persons
Elections under section 25A
31DEffect of election under section 25A
Calculation of profits on cash basis
31ECalculation of profits on cash basis
Overview of rest of Part 2
31FOverview of rest of Part 2 as it applies to cash basis
Chapter 4Trade profits: rules restricting deductions
Introduction
32Professions and vocations
Cash basis accounting
32AApplication of Chapter to the cash basis
Capital expenditure
33Capital expenditure
33ACash basis: capital expenditure
Wholly and exclusively and losses rules
34Expenses not wholly and exclusively for trade and unconnected losses
Bad and doubtful debts
35Bad and doubtful debts
Unpaid remuneration
36Unpaid remuneration
37Unpaid remuneration: supplementary
Employee benefit contributions
38Restriction of deductions
39Making of “employee benefit contributions”
40Provision of qualifying benefits
41Timing and amount of certain qualifying benefits
42Provision or payment out of employee benefit contributions
43Profits calculated before end of 9 month period
44Interpretation of sections 38 to 44
Business entertainment and gifts
45Business entertainment and gifts: general rule
46Business entertainment: exceptions
47Business gifts: exceptions
Car or motor cycle hire
48Car ... hire
49Car ... hire: supplementary
50Hiring cars (but not motor cycles) with low carbon dioxide emissions
50AShort-term hiring in and long-term hiring out
50BConnected persons: application of section 48
Patent royalties
51Patent royalties
Interest payments
51ACash basis: interest payments on loans
52Exclusion of double relief for interest
Social security contributions
53Social security contributions
Penalties and interest
54Penalties and interest
Crime-related payments
55Crime-related payments
Integral features
55AExpenditure on integral features
Rental rebates
55BRental rebates
Chapter 5Trade profits: rules allowing deductions
Introduction
56Professions and vocations
Cash basis accounting
56AApplication of Chapter to the cash basis
Pre-trading expenses
57Pre-trading expenses
Subsistence expenses
57AExpenses incurred by traders on food and drink
Cash basis: interest payments
57BCash basis: interest payments on loans
Incidental costs of obtaining finance
58Incidental costs of obtaining finance
59Convertible loans and loan stock etc.
Tenants under taxed leases
60Tenants under taxed leases: introduction
61Tenants occupying land for purposes of trade treated as incurring expenses
62Limit on deductions if tenant entitled to mineral extraction allowance
63Tenants dealing with land as property employed for purposes of trade
64Restrictions on section 61 expenses: lease premium receipts
65Restrictions on section 61 expenses: lease of part of premises
66Corporation tax receipts under ICTA treated as taxed receipts
67Restrictions on section 61 expenses: corporation tax receipts under ICTA
Renewals
68Replacement and alteration of trade tools
Payments for restrictive undertakings
69Payments for restrictive undertakings
Seconded employees
70Employees seconded to charities and educational establishments
71Educational establishments
Contributions to agents' expenses
72Payroll deduction schemes: contributions to agents' expenses
Counselling and retraining expenses
73Counselling and other outplacement services
74Retraining courses
75Retraining courses: recovery of tax
Redundancy payments etc.
76Redundancy payments and approved contractual payments
77Payments in respect of employment wholly in employer's trade
78Payments in respect of employment in more than one capacity
79Additional payments
79AAdditional payments: change in the persons carrying on the trade
80Payments made by the Government
Personal security expenses
81Personal security expenses
Contributions to local enterprise organisations or urban regeneration companies
82Contributions to local enterprise organisations or urban regeneration companies
83Meaning of “local enterprise organisation”
84Approval of local enterprise agencies
85Supplementary provisions with respect to approvals
86Meaning of “urban regeneration company”
Contributions to flood and coastal erosion risk management projects
86AContributions to flood and coastal erosion risk management projects
86BInterpretation of section 86A
Scientific research
87Expenses of research and development
88Payments to research associations, universities etc.
Expenses connected with patents, designs and trade marks
89Expenses connected with patents
90Expenses connected with designs or trade marks
Export Credits Guarantee Department
91Payments to Export Credits Guarantee Department
Expenses connected with foreign trades
92Expenses connected with foreign trades
93Allocation of expenses
94Family expenses
SAYE option schemes, CSOP schemes
94ACosts of setting up SAYE option scheme or CSOP scheme
Limited liability partnerships: salaried members
94AADeductions in relation to salaried members
CHAPTER 5ATrade profits: deductions allowable at a fixed rate
Introduction
94BProfessions and vocations
94CProvisions not applicable to certain firms
Expenditure on vehicles
94DExpenditure on vehicles
94EExcluded vehicles
94FThe appropriate mileage amount
94GDefinitions of types of vehicle
Use of home for business purposes
94HUse of home for business purposes
Premises used both as home and business premises
94IPremises used both as a home and as business premises
Chapter 6Trade profits: receipts
Introduction
95Professions and vocations
Cash basis accounting
95AApplication of Chapter to the cash basis
Capital receipts
96Capital receipts
96ACapital receipts under, or after leaving, cash basis
96BSection 96A: supplementary provision
Debts released
97Debts incurred and later released
Cash basis: value of stock and work in progress on cessation
97ACash basis: value of trading stock on cessation of trade
97BCash basis: value of work in progress on cessation of profession or vocation
Amounts received following earlier cessation
98Acquisition of trade: receipts from transferor's trade
Reverse premiums
99Reverse premiums
100Excluded cases
101Tax treatment of reverse premiums
102Arrangements not at arm's length
103Connected persons and property arrangements
Assets of mutual concerns
104Distribution of assets of mutual concerns
Industrial development grants
105Industrial development grants
Proceeds of insurance etc.
106Sums recovered under insurance policies etc.
Chapter 6ATrade profits: amounts not reflecting commercial transactions
106AProfessions and vocations
106BApplication of Chapter
106CAmounts not reflecting commercial transactions
106DCapital receipts
106EGifts to charities etc
Chapter 7Trade profits: gifts to charities etc.
107Professions and vocations
108Gifts of trading stock to charities etc.
109Receipt by donor or connected person of benefit attributable to certain gifts
110Meaning of “designated educational establishment”
Chapter 8Trade profits: herd basis rules
Introduction
111Election for application of herd basis rules
111AHerd basis rules not to apply where cash basis used
112Meaning of “animal”, “herd”, “production herd” etc.
113Other interpretative provisions
The herd basis rules
114Initial cost of herd and value of herd
115Addition of animals to herd
116Replacement of animals in herd
117Amount of receipt if old animal slaughtered under disease control order
118Sale of animals from herd
119Sale of whole or substantial part of herd
120Acquisition of new herd begun within 5 years of sale
121Section 120: sale for reasons outside farmer's control
122Replacement of part sold begun within 5 years of sale
123Section 122: sale for reasons outside farmer's control
Elections
124Herd basis elections
125Five year gap in which no production herd kept
126Slaughter under disease control order
Preventing abuse of the herd basis rules
127Preventing abuse of the herd basis rules
Supplementary
128Information if election made
129Further assessment etc. if herd basis rules apply
Chapter 9Trade profits: . . . sound recordings
Introduction
130Expenditure to which this Chapter applies
130AChapter not to apply where cash basis used
131Meaning of “film” and related expressions
132Meaning of “original master version” and “certified master version”
133Meaning of “relevant period”
Expenditure treated as revenue in nature
134Expenditure treated as revenue in nature
Rules for allocating expenditure
135Allocation of production or acquisition expenditure to relevant periods
Certified master versions: special rules for allocating expenditure
136Application of provisions about certified master versions
137Certified master versions: preliminary expenditure
138Certified master versions: production expenditure
138ACertified master versions: acquisition expenditure
Certified master versions: limited-budget films
139Certified master versions: production expenditure on limited-budget films
140Certified master versions: acquisition expenditure on limited-budget films
Interpretation of sections 138 to 140
140A“Disqualifying deduction”
141“Total production expenditure in respect of the original master version”
142When expenditure is incurred
Deferred income agreements
142ADeferred income agreements which exist when deduction made
142BMeaning of “deferred income agreement in respect of a film”
142CDeferred income agreements entered into after deduction made
142DMeaning of the “net excess relief”
142ESections 142A to 142D: time of entry into an agreement
Election for sections 134 to 140 not to apply
143Election for sections 134 to 140 not to apply
Supplementary
144Meaning of “genuinely intended for theatrical release”
Chapter 10Trade profits: certain telecommunication rights
144AChapter not to apply where cash basis used
145Professions and vocations
146Meaning of “relevant telecommunication right”
147Expenditure and receipts treated as revenue in nature
148Credits or debits arising from revaluation
Chapter 10ALeases of plant or machinery: special rules for long funding leases
Application of Chapter
148ZAChapter not to apply where cash basis used
Lessors under long funding finance leases
148ALessor under long funding finance lease: rental earnings
148BLessor under long funding finance lease: exceptional items
148CLessor under long funding finance lease making termination payment
Lessors under long funding operating leases
148DLessor under long funding operating lease: periodic deduction
148DA“Starting value”: general
148DB“Starting value” where plant or machinery originally unqualifying
148ELong funding operating lease: lessor's additional expenditure
148EADetermination of remaining residual value resulting from lessor's first additional expenditure
148EBDetermination of remaining residual value resulting from lessor's further additional expenditure
148FLessor under long funding operating lease: termination of lease
Lessors under long funding finance or operating leases: avoidance etc
148FACases where ss. 148A to 148F do not apply: plant or machinery held as trading stock
148FBCases where ss. 148A to 148F do not apply: lessor also lessee under non-long funding lease
148FCCases where ss. 148A to 148F do not apply: other avoidance
148FDCases where ss 148A to 148F do not apply: films
Lessees under long funding finance leases
148GLessee under long funding finance lease: limit on deductions
148GALessee under long funding finance leases: right-of-use leases
148HLessee under long funding finance lease: termination
Lessees under long funding operating leases
148ILessee under long funding operating lease
Interpretation of this Chapter
148JInterpretation of Chapter 10A
Chapter 11Trade profits: other specific trades
Cash basis accounting
148KApplication of Chapter to the cash basis
Dealers in securities etc.
149Taxation of amounts taken to reserves
150Conversion etc. of securities held as circulating capital
151Exchanges of gilts for gilt strips
152Consolidation of gilt strips
153Meaning of “gilt-edged security” and “strip”
154Regulations for determining market value of securities or strips
154ACertain non-UK residents with interest on 3½% War Loan 1952 Or After
Persons authorised for purposes of FISMA 2000
155Levies and repayments under FISMA 2000
Dealers in land etc.
156Purchase or sale of woodlands
157Relief in respect of mineral royalties
158Lease premiums etc: reduction of receipts
Ministers of religion
159Ministers of religion
Barristers and advocates
160Alternative basis of calculation in early years of practice
Mineral exploration and access
161Mineral exploration and access
Persons liable to pool betting duty
162Payments by persons liable to pool betting duty
Intermediaries treated as making employment payments
163Deduction for deemed employment payment
164Special rules for partnerships
Managed service companies
164ADeduction for deemed employment payments
Worker's services provided to public sector through intermediary
164BIntermediaries providing worker's services to public sector
Waste disposal
165Deduction for site preparation expenditure
166Allocation of site preparation expenditure
167Site preparation expenditure: supplementary
168Site restoration payments
Cemeteries and crematoria
169Cemeteries and crematoria: interests in land
170Deduction for capital expenditure
171Allocation of ancillary capital expenditure
172Exclusion of expenditure met by subsidies
Crematoria: niches, memorials and inscriptions
172ZANiches, memorials and inscriptions: introduction
172ZBAllowable deductions: niches
172ZCAllowable deductions: memorials
172ZDAllowable deductions: inscriptions
172ZECosts of the building
Chapter 11ATrade profits: changes in trading stock
Introduction
172AMeaning of “trading stock”
172AAChapter not to apply where cash basis used
Transfers of trading stock between trade and trader
172BTrading stock appropriated by trader
172CTrading stock supplied by trader
Other disposals not made in the course of trade
172DDisposals not made in the course of trade
172EAcquisitions not made in the course of trade
Relationship with transfer pricing rules
172FTransfer pricing rules to take precedence
Chapter 12Trade profits: valuation of stock and work in progress on cessation of trade
Valuation of trading stock
173Valuation of trading stock on cessation
174Meaning of “trading stock”
175Basis of valuation of trading stock
176Sale basis of valuation: sale to unconnected person
177Sale basis of valuation: sale to connected person
178Sale basis of valuation: election by connected persons
179Connected persons
180Cost to buyer of stock valued on sale basis of valuation
181Meaning of “sale” and related expressions
Valuation of work in progress
182Valuation of work in progress on cessation
183Meaning of “work in progress”
184Basis of valuation of work in progress
185Election for valuation at cost
Supplementary
186Determination of questions ...
Chapter 13Deductions from profits: unremittable amounts
187Professions and vocations
188Application of Chapter
188AChapter not to apply where cash basis used
189Relief for unremittable amounts
190Restrictions on relief
191Withdrawal of relief
Chapter 14Disposal and acquisition of know-how
191AChapter not to apply where cash basis used
192Meaning of “know-how” etc.
193Disposal of know-how if trade continues to be carried on
194Disposal of know-how as part of disposal of all or part of a trade
195Seller controlled by buyer etc.
Chapter 15Basis periods
Introduction
196Professions and vocations
Accounting date
197Meaning of “accounting date”
The normal rules
198General rule
199First tax year
200Second tax year
201Tax year in which there is no accounting date
202Final tax year
Apportionment of profits
203Apportionment etc. of profits to basis periods
Overlap profits and losses
204Meaning of “overlap period” and “overlap profit”
204AOverlap profit and trading allowance under Chapter 1 of Part 6A
205Deduction for overlap profit in final tax year
206Restriction on bringing losses into account twice
207Treatment of business start-up payments received in an overlap period
Rules where first accounting date shortly before end of tax year
208When the late accounting date rules apply
209Rule if there is an accounting date
210Rules if there is no accounting date
Slight variations in accounting date
211Treating middle date as accounting date
212Consequence of treating middle date as accounting date
213Circumstances in which middle date not treated as accounting date
Special rules if accounting date changes
214When a change of accounting date occurs
215Change of accounting date in third tax year
216Change of accounting date in later tax year
217Conditions for basis period to end with new accounting date
218Commercial reasons for change of accounting date
219The year after an ineffective change of accounting date
220Deduction for overlap profit on change of accounting date
Chapter 16Averaging profits of farmers and creative artists
221Claim for averaging of fluctuating profits
221AClaim not available where cash basis used
222Circumstances in which claim for two-year averaging may be made
222ACircumstances in which claim for five-year averaging may be made
223Adjustment of profits
224Effect of adjustment
225Effect of later adjustment of profits
CHAPTER 16ZACOMPENSATION FOR COMPULSORY SLAUGHTER OF ANIMALS
225ZAApplication of Chapter 16ZA
225ZAAChapter not to apply where cash basis used
225ZBRight to make claim
225ZCBook value
225ZDEffect of claim for spreading profits
225ZEAdjustment: cessation of trading
225ZFTime limits etc for spreading claim
225ZGInterpretation
Chapter 16AOil activities
Application of Chapter
225ZHChapter not to apply where cash basis used
Basic definitions
225AMeaning of “oil extraction activities”
225BMeaning of “oil rights”
225CMeaning of “ring fence income”
225DMeaning of “ring fence trade”
225EOther definitions
Oil valuation
225FValuation where market value taken into account under section 2 of OTA 1975
225GValuation where disposal not sale at arm's length
225HValuation where excess of nominated proceeds
225IValuation where relevant appropriation but no disposal
225JValuation where appropriation to refining etc
Regional development grants
225KReduction of expenditure by reference to regional development grant
225LAdjustment as a result of regional development grant
Tariff receipts etc
225MTariff receipts etc
Abandonment guarantees
225NExpenditure on abandonment guarantees
225ORelief for reimbursement expenditure under abandonment guarantees
225PPayment under abandonment guarantee not immediately applied
225QAmounts excluded from section 225O(1)
Abandonment expenditure
225RIntroduction to section 225S
225SRelief for expenditure incurred by a participator in meeting defaulter's abandonment expenditure
225TReimbursement by defaulter in respect of certain abandonment expenditure
Interest on repayment of APRT
225UInterest on repayment of APRT
Receipts arising from decommissioning
225VReceipts arising from decommissioning
Chapter 17Adjustment income
Introduction
226Professions and vocations
Adjustment on change of basis
227Application of Chapter
227AApplication of Chapter where cash basis used
227BCash basis treatment: full relief under Chapter 1 of Part 6A (trading allowance)
227CApplication of Chapter where section 227B applies
228Adjustment income and adjustment expense
229Income charged
230Person liable
231Calculation of the adjustment
Treatment of adjustment income and adjustment expense
232Treatment of adjustment income
233Treatment of adjustment expense
Expenses previously brought into account
234No adjustment for certain expenses previously brought into account
Realising or writing off assets
235Cases where adjustment not required until assets realised or written off
Mark to market
236Change from realisation basis to mark to market
237Election for spreading if section 236 applies
Spreading of adjustment income: barristers and advocates
238Spreading on ending of exemption for barristers and advocates
239Election to accelerate charge under section 238
Spreading of adjustment income on leaving cash basis
239ASpreading on leaving cash basis
239BElection to accelerate charge under section 239A
Supplementary
240Liability of personal representatives if person liable dies
Chapter 17ACash basis: adjustments for capital allowances
Introduction
240AProfessions and vocations
Adjustments on entering cash basis
240B“Entering the cash basis”
240CUnrelieved qualifying expenditure: Parts 2, 7 and 8 of CAA 2001
240CAUnrelieved qualifying expenditure: Part 5 of CAA 2001
240DAssets not fully paid for
Successions where predecessor and successor are connected persons
240EEffect of election where predecessor and successor are connected persons
Chapter 18Post-cessation receipts
Introduction
241Professions and vocations
Charge to tax on post-cessation receipts
242Charge to tax on post-cessation receipts
243Extent of charge to tax
244Income charged
245Person liable
Meaning of “post-cessation receipts”
246Basic meaning of “post-cessation receipt”
247Other rules about what counts as post-cessation receipts
Sums treated as post-cessation receipts
248Debts paid after cessation
249Debts released after cessation
250Receipts relating to post-cessation expenditure
251Transfer of rights if transferee does not carry on trade
Sums that are not post-cessation receipts
252Transfer of trading stock or work in progress
253Lump sums paid to personal representatives for copyright etc.
Deductions
254Allowable deductions
255Further rules about allowable deductions
Reliefs
256Treatment of post-cessation receipts
257Election to carry back
Chapter 19Supplementary
258Changes in trustees and personal representatives
259Meaning of “statutory insolvency arrangement”
Part 3Property income
Chapter 1Introduction
260Overview of Part 3
261Provisions which must be given priority over Part 3
262Priority between Chapters within Part 3
Chapter 2Property businesses
Introduction
263Introduction
Basic meaning of UK and overseas property business
264UK property business
265Overseas property business
Generating income from land
266Meaning of “generating income from land”
267Activities not for generating income from land
Chapter 3Profits of property businesses: basic rules
Charge to tax on profits of a property business
268Charge to tax on profits of a property business
269Territorial scope of charge to tax
270Income charged
271Person liable
Basis of calculation of profits
271ABasis of calculation of profits: GAAP required
271BCalculation of profits in accordance with GAAP
271CBasis of calculation of profits: cash basis required
271DCalculation of profits on the cash basis
Calculation of profits : application of trading income rules
271EProfits of a property business: application of trading income rules
272Application of trading income rules: GAAP
272ZAApplication of trading income rules: cash basis
Calculation of profits: other general rules
272ARestricting deductions for finance costs related to residential property
272BMeaning of “costs of a dwelling-related loan”
273Amounts not brought into account as part of a property business
274Relationship between rules prohibiting and allowing deductions
Tax reductions for non-deductible costs of a dwelling-related loan
274AReduction for individuals: entitlement
274AAReduction for individuals: calculation
274BReduction for accumulated or discretionary trust income: entitlement
274CReduction for accumulated or discretionary trust income: calculation
Apportionment of profits
275Apportionment etc. of profits to tax year
275ARule if person starts to carry on business after 31 March
275BRule if there is a late accounting date
275CElection to disapply late accounting date rules
Chapter 4Profits of property businesses: lease premiums etc.
Introduction
276Introduction
276AApplication of Chapter to property businesses using cash basis
Amounts treated as receipts: leases
277Lease premiums
278Amount treated as lease premium where work required
279Sums payable instead of rent
280Sums payable for surrender of lease
281Sums payable for variation or waiver of terms of lease
281ASums to which sections 277 to 281 do not apply
282Assignments for profit of lease granted at undervalue
283Provisions supplementary to section 282
Other amounts treated as receipts
284Sales with right to reconveyance
285Sale and leaseback transactions
286Provisions supplementary to sections 284 and 285
Additional calculation rule for reducing certain receipts
287Circumstances in which additional calculation rule applies
288The additional calculation rule
289The additional calculation rule: special cases
290Meaning of “unused amount” and “unreduced amount”
Deductions in relation to certain receipts
291Deductions for expenses under section 292
292Tenants under taxed leases treated as incurring expenses
293Restrictions on section 292 expenses: the additional calculation rule
294Restrictions on section 292 expenses: lease of part of premises
Limit on effect of additional calculation rule and deductions
295Limit on reductions and deductions
Relationship with ICTA
296Corporation tax receipts treated as taxed receipts
297Taking account of reductions in corporation tax receipts
298Taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA
Certain administrative provisions
299Payment of tax by instalments
300Statement of accuracy for purposes of section 282
301Claim for repayment of tax payable by virtue of section 284
302Claim for repayment of tax payable by virtue of section 285
Determinations affecting liability of more than one person
302AAppeals against proposed determinations
302BSection 302A: supplementary
302CDetermination by tribunal
Effective duration of lease
303Rules for determining effective duration of lease
304Applying the rules in section 303
305Information about effective duration of lease
Other interpretative provisions
306Provisions about premiums
307Interpretation
Chapter 5Profits of property businesses: other rules about receipts and deductions
Cash basis: application of Chapter
307ACash basis: application of Chapter
Property businesses using cash basis
307BCash basis: capital expenditure
307CCash basis: deduction for costs of loans
307DCash basis: modification of deduction for costs of loans
Property businesses that use, or have used, cash basis
307ECapital receipts under, or after leaving, cash basis
307FDeemed capital receipts under, or after leaving, cash basis
Property allowance
307GProperty allowance
Furnished accommodation: receipts and deductions
308Furnished lettings
...
Wear and tear allowance election
Meaning of “eligible” in relation to a dwelling-house
Effect of wear and tear allowance election
Furnished accommodation: rent-a-room relief
309Rent-a-room relief
Treatment of receipts on acquisition of business
310Acquisition of business: receipts from transferor's UK property business
Reverse premiums as receipts
311Reverse premiums
Deduction for replacement of domestic items
311AReplacement domestic items relief
Deductions for expenditure on energy-saving items
312Deduction for expenditure on energy-saving items
313Restrictions on relief
314Regulations
Deductions for expenditure on sea walls
315Deduction for expenditure on sea walls
316Transfer of interest in premises
317Ending of lease of premises
318Transfer involving company within the charge to corporation tax
Mineral royalties
319Relief in respect of mineral royalties
Apportionments on sale of land
320Nature of item apportioned on sale of estate or interest in land
Mutual business
321Mutual business
Chapter 6Commercial letting of furnished holiday accommodation
Introduction
322Introduction
Definition
323Meaning of “commercial letting of furnished holiday accommodation”
324Meaning of “relevant period” in sections 325 and 326
325Meaning of “qualifying holiday accommodation”
326Under-used holiday accommodation: averaging elections
326AUnder-used holiday accommodation: letting condition not met
Separate profit calculations
327 Relief: UK property business
328 Relevant UK earnings for pension purposes: UK property business
328ACapital allowances and loss relief: overseas property business
328BRelevant UK earnings for pension purposes: overseas property business
Chapter 7Adjustment income
Adjustment on change of basis
329Application of Chapter
329AApplication of Chapter where cash basis used
330Adjustment income and adjustment expense
331Income charged
332Person liable
Treatment of adjustment income and adjustment expense
333Treatment of adjustment income
334Treatment of adjustment expense
Spreading of adjustment income on leaving cash basis
334ASpreading on leaving cash basis and related election
CHAPTER 7ACash basis: adjustments for capital allowances
334B“Entering the cash basis”
334CUnrelieved qualifying expenditure
334DAssets not fully paid for
334EEffect of election where predecessor and successor are connected persons
Chapter 8Rent receivable in connection with a UK section 12(4) concern
Charge to tax on rent receivable in connection with a UK section 12(4) concern
335Charge to tax on rent receivable in connection with a UK section 12(4) concern
336Meaning of “rent receivable in connection with a UK section 12(4) concern”
337Income charged
338Person liable
Management expenses of owner of mineral rights
339Deduction for management expenses of owner of mineral rights
Mineral royalties
340Relief in respect of mineral royalties
341Meaning of “mineral lease or agreement” and “mineral royalties”
342Extended meaning of “mineral royalties” etc. in Northern Ireland
343Power of Commissioners to determine what counts as “mineral royalties”
Chapter 9Rent receivable for UK electric-line wayleaves
Charge to tax on rent receivable for UK electric-line wayleaves
344Charge to tax on rent receivable for a UK electric-line wayleave
345Meaning of “rent receivable for a UK electric-line wayleave”
346Extent of charge to tax
347Income charged
348Person liable
Chapter 10Post-cessation receipts
Charge to tax on post-cessation receipts
349Charge to tax on post-cessation receipts
350Extent of charge to tax
351Income charged
352Person liable
Meaning of “post-cessation receipts”
353Basic meaning of “post-cessation receipt”
354Other rules about what counts as a “post-cessation receipt”
355Transfer of rights if transferee does not carry on UK property business
Supplementary
356Application to businesses within the charge to corporation tax
Chapter 11Overseas property income
357Charge to tax on overseas property income
358Meaning of “overseas property income”
359Income charged
360Person liable
Chapter 12Supplementary
361Changes in trustees and personal representatives
362Effect of company starting or ceasing to be within charge to income tax
363Overseas property businesses and overseas land: adaptation of rules
364Meaning of “lease” and “premises”
Part 4Savings and investment income
Chapter 1Introduction
365Overview of Part 4
366Provisions which must be given priority over Part 4
367Priority between Chapters within Part 4
368Territorial scope of Part 4 charges
368AInterpretation of special rules for temporary non-residents
Chapter 2Interest
Charge to tax on interest
369Charge to tax on interest
370Income charged
370AValuation of interest not paid in cash
371Person liable
Other income taxed as interest
372Building society dividends
373Open-ended investment company interest distributions
374Date when interest payments under section 373 made
375Interpretation of sections 373 and 374
376Authorised unit trust interest distributions
377Date when interest payments under section 376 made
378Interpretation of sections 376 and 377
378AOffshore fund distributions
379Payments by registered societies or certain co-operatives
380Funding bonds
380AFSCS payments representing interest
381Discounts
Chapter 2ADisguised interest
381ACharge to tax on disguised interest
381BIncome charged
381CPerson liable
381DAvoidance of double taxation
381EException for returns from certain shares
Chapter 3Dividends etc. from UK resident companies and tax treated as paid in respect of certain distributions
Introduction
382Contents of Chapter
Charge to tax on dividends and other distributions
383Charge to tax on dividends and other distributions
384Income charged
385Person liable
Purchase by company of exempt employee shareholder shares
385ANo charge to tax on purchase by company of exempt employee shareholder shares
Amounts treated as dividends
386Open-ended investment company dividend distributions
387Date when dividends paid under section 386
388Interpretation of sections 386 and 387
389Authorised unit trust dividend distributions
390Date when dividends paid under section 389
391Interpretation of sections 389 and 390
Shares in Schedule 2 share incentive plans (“SIPs”)
392SIP shares: introduction
393Later charge where cash dividends retained in SIPs are paid over
394Distribution when dividend shares cease to be subject to SIP
395Reduction in tax due in cases within section 394
396Interpretation of sections 392 to 395
Other amounts treated as distributions
396AArrangements offering a choice of capital or income return
396BDistributions in a winding up
... Payment and deduction of tax
397Tax credits for qualifying distributions of UK resident companies : UK residents and eligible non-UK residents
397ATax credits for distributions of non-UK resident companies: UK residents and eligible non-UK residents
397AATax credit under section 397A: conditions
397BTax credits under section 397A: manufactured overseas dividends
397BAMeaning of “qualifying territory”
397CMeaning of “minority shareholder”
398Increase in amount or value of dividends where tax credit available
399Tax treated as paid on distributions received by non-UK resident persons
400Non-qualifying distributions
401Relief: distribution repaying shares or security issued in earlier distribution
401ARecovery of overpaid tax credit etc
401BPower to obtain information
Anti-avoidance
401CTemporary non-residents
Chapter 4Dividends from non-UK resident companies
Charge to tax on dividends from non-UK resident companies
402Charge to tax on dividends from non-UK resident companies
403Income charged
404Person liable
404ADistributions in a winding up
Shares in Schedule 2 share incentive plans (“SIPs”)
405SIP shares: introduction
406Later charge where cash dividends retained in SIPs are paid over
407Dividend payment when dividend shares cease to be subject to SIP
408Reduction in tax due in cases within section 407
Anti-avoidance
408ATemporary non-residents
Chapter 5Stock dividends from UK resident companies
409Charge to tax on stock dividend income
410When stock dividend income arises
410AConversion etc of bonus share capital
411Income charged
412Cash equivalent of share capital
413Person liable
413ATemporary non-residents
414Income tax treated as paid
414AInterpretation of Chapter
Chapter 6Release of loan to participator in close company
415Charge to tax under Chapter 6
416Income charged
417Person liable
418Relief where borrowers liable as settlors
419Loans and advances to persons who die
420Loans and advances to trustees of trusts that have ended
420ATemporary non-residents
421Income tax treated as paid
421APower to obtain information
Chapter 7Purchased life annuity payments
422Charge to tax on purchased life annuity payments
423Meaning of “purchased life annuity”
424Income charged
425Person liable
426Annuity payments received after deduction of tax
Chapter 8Profits from deeply discounted securities
Charge to tax under Chapter 8
427Charge to tax on profits from deeply discounted securities
428Income charged
429Person liable
Deeply discounted securities
430Meaning of “deeply discounted security”
431Excluded occasions of redemption
432Securities which are not deeply discounted securities
433Meaning of “excluded indexed security”
434Securities issued in separate tranches: preliminary
435Securities issued in separate tranches: basic rule
436Deeply discounted securities issued in separate tranches: nominal value rule
Disposals
437Transactions which are disposals
438Timing of transfers and acquisitions
Calculating profits
439Calculating the profit from disposals
440Market value disposals
441Market value acquisitions
442Securities issued in accordance with qualifying earn-out right
Special rules for strips of government securities
443Application of this Chapter to strips of government securities
444Meaning of “strip” in Chapter 8
445Strips of government securities: acquisitions and disposals
446Strips of government securities: relief for losses
447Restriction of profits on strips by reference to original acquisition cost
448Restriction of losses on strips by reference to original acquisition cost
449Strips of government securities: manipulation of acquisition, transfer or redemption payments
450Market value of strips etc.
451Market value of strips etc. quoted in foreign stock exchange lists
452Power to modify this Chapter for strips
Special rules for corporate strips
452AApplication of this Chapter to corporate strips
452BMeaning of “interest-bearing corporate security” in Chapter 8
452CConversion of interest-bearing corporate securities into corporate strips
452DConversion into corporate strips: lower level conversions
452EMeaning of “corporate strip” in Chapter 8
452FCorporate strips: acquisitions and disposals
452GCorporate strips: manipulation of acquisition, transfer or redemption payments
Special rules for listed securities held since 26th March 2003
453Application of sections 454 to 456
454Listed securities held since 26th March 2003: relief for losses
455Listed securities held since 26th March 2003: calculating the profit or loss on disposals
456Securities issued to connected persons etc. at excessive price: subsequent transfers to connected persons
Trustees
457Trustees
458Non-UK resident trustees
Miscellaneous and supplementary
459Transfer of assets abroad
460Minor definitions
Chapter 9Gains from contracts for life insurance etc.
Charge to tax under Chapter 9
461Charge to tax under Chapter 9
462When gains arise from policies and contracts
463Income charged
463ARestricted relief qualifying policies: disapplication of section 485 etc
463BRestricted relief qualifying policies: allowable premiums
463CRestricted relief qualifying policies: personal representatives and trustees with deceased settlors
463DRestricted relief qualifying policies: assignments and events following assignments etc
463ETransitional protection for policies issued in respect of insurances made on or after 21 March 2012 but before 6 April 2013
Person liable etc.
464Person liable for tax: introduction
465Person liable: individuals
465AAmounts for which individuals liable to be treated as highest part of total income
465BTemporary non-residents
466Person liable: personal representatives
467Person liable: UK resident trustees
468Non-UK resident trustees and foreign institutions
469Two or more persons interested in policy or contract
470Interests in rights under a policy or contract for section 469
471Determination of shares etc.
472Trusts created by two or more persons
Policies and contracts to which Chapter 9 applies
473Policies and contracts to which Chapter 9 applies: general
473AConnected policies or contracts treated as single policy or contract
474Special rules: qualifying policies
475Special rules: personal portfolio bonds
476Special rules: foreign policies
477Special rules: certain older policies and contracts
478Exclusion of mortgage repayment policies
479Exclusion of pension policies
480Exclusion of excepted group life policies
481Excepted group life policies: conditions about benefits
482Excepted group life policies: conditions about persons intended to benefit
483Exclusion of credit union group life policies
When chargeable events occur: general
484When chargeable events occur
485Disregard of certain events in relation to qualifying policies
486Exclusion of maturity of capital redemption policies in certain circumstances
487Disregard of certain assignments
488Disregard of some events after alterations of life insurance policy terms
489Conditions applicable to alterations of life insurance policy terms
490Last payment under guaranteed income bonds etc. treated as total surrender
Calculating gains: general
491Calculating gains: general rules
492The total benefit value of a policy or contract
493The value of a policy or contract
494The total allowable deductions for a policy or contract
495Disregard of certain amounts in calculating gains under section 491
496Modification of section 494: qualifying endowment policies held as security for company debts
497Disregard of trivial inducement benefits
Part surrenders and assignments: periodic calculations and excess events
498Requirement for periodic calculations in part surrender or assignment cases
499Meaning of “insurance year” and “final insurance year”
500Events treated as part surrenders
501Part surrenders: loans
502Exception from section 501 for loans to buy life annuities
503Exception from section 501 for certain loans under qualifying policies
504Part surrenders: payments under guaranteed income bonds etc.
505Assignments etc. involving co-ownership
506Assignments occurring when there is a co-ownership transaction
507Method for making periodic calculations under section 498
507ARecalculating gains under section 507
508The value of rights partially surrendered or assigned
509Chargeable events in certain cases where periodic calculations show gains
Transaction-related calculations and part surrender or assignment events
510Requirement for transaction-related calculations in certain part surrender and assignment cases
511Method for making transaction-related calculations under section 510
512Available premium left for relevant transaction
512ARecalculating gains under section 511
513Special rules for part surrenders and assignments in final insurance year
514Chargeable events where transaction-related calculations show gains
Personal portfolio bonds
515Requirement for annual calculations in relation to personal portfolio bonds 9
516Meaning of “personal portfolio bond”
517Policies and contracts which are not personal portfolio bonds
518The index categories
519The index selection conditions
520The property categories
521The property selection conditions
522Method for making annual calculations under section 515
523The total amount of personal portfolio bond excesses
524The total amount of part surrender gains
525Chargeable events where annual calculations show gains
526Power to make regulations about personal portfolio bonds
Reductions from gains
527Reduction for sums taken into account otherwise than under Chapter 9
528Reduction in amount charged on basis of non-UK residence where individual liable for tax
528AReduction in amount charged on basis of non-UK residence of deceased person
529Exceptions to section 528
Income tax treated as paid and reliefs
530Income tax treated as paid etc.
531Exceptions to section 530
532Relief for policies and contracts with European Economic Area insurers
533Meaning of “comparable EEA tax charge”
534Regulations providing for relief in other cases where foreign tax chargeable
535Top slicing relief
536Top slicing relieved liability: one chargeable event
537Top slicing relieved liability: two or more chargeable events
538Recovery of tax from trustees
Deficiencies
539Relief for deficiencies
540When deficiencies arise: events following calculation events
541Calculation of deficiencies
Rebated or reinvested commission
541AEffect of rebated or reinvested commission in certain cases
541BSection 541A: further definitions
Supplementary
542Replacement of qualifying policies
543Issue time of qualifying policy replacing foreign policy
544Application of Chapter to policies and contracts in which companies interested
545Minor definitions
546Table of provisions subject to special rules for older policies and contracts
Chapter 10...
Chapter 11Transactions in deposits
551Charge to tax on profits from disposal of deposit rights
552Meaning of “deposit rights”
553Income charged
554Person liable
Chapter 12Disposals of futures and options involving guaranteed returns
Charge to tax under Chapter 12
555Charge to tax under Chapter 12
556Income charged
557Person liable
558Meaning of “future”, “option” etc.
When disposals involve guaranteed returns
559When disposals involve guaranteed returns
560Production of guaranteed returns
561The return from one or more disposals
When disposals of futures and options occur
562When disposals of futures and options occur: general
563Timing of certain grants of options where related disposals occur later
564Deemed disposal where futures run to delivery or options are exercised
565Interpretation of section 564
566When transactions are related
Losses
567Losses
Trustees
568Special rule for certain income of trustees
Transfer of assets abroad
569Anti-avoidance: transfer of assets abroad
Chapter 13Sales of foreign dividend coupons
570Charge to tax under Chapter 13
571Meaning of “foreign holdings” etc.
572Income charged
573Person liable
Part 5Miscellaneous income
Chapter 1Introduction
574Overview of Part 5
575Provisions which must be given priority over Part 5
576Priority between Chapters within Part 5
577Territorial scope of Part 5 charges
577ATerritorial scope of Part 5 charges: receipts from intellectual property
Chapter 2Receipts from intellectual property
Introduction
578Contents of Chapter
Charge to tax on non-trading income from intellectual property
579Charge to tax on royalties and other income from intellectual property
580Income charged under section 579
581Person liable for tax under section 579
582Deductions in calculating certain income charged under section 579
Disposals of know-how
583Charge to tax on income from disposals of know-how
584Exceptions to charge under section 583
585Income charged under section 583
586Person liable for tax under section 583
Sales of patent rights
587Charge to tax on income from sales of patent rights
588Income charged under section 587
589Person liable for tax under section 587
590UK resident sellers: spreading rules
591Non-UK resident sellers: election for spreading
592Further provision about elections for spreading: instalments
593Death of seller
594Winding up of a body corporate
595Deduction of tax from payments to non-UK residents
596Adjustments where tax has been deducted
597Licences connected with patents
598Rights to acquire future patent rights
599Sums paid for Crown use etc. treated as paid under licence
Relief from income tax on patent income
600Relief for expenses: patent income
601How relief is given under section 600
Payments received after deduction of tax
602Payments received after deduction of tax
Supplementary
603Contributions to expenditure
604Contributions not made by public bodies nor eligible for tax relief
605Exchanges
606Apportionment where property sold together
607Questions about apportionments affecting two or more persons
608Meaning of “capital sums” etc.
CHAPTER 2AOffshore receipts in respect of intangible property
Charge to tax on offshore receipts in respect of intangible property
608ACharge to tax on UK-derived amounts
608BIncome charged under section 608A
608CPerson liable for tax under section 608A
608DMeaning of residence
608EMeaning of “full treaty territory”
608FMeaning of “UK-derived amount” and “UK sales”
608GSection 608F: apportionment of amounts
608GASection 608F: disregard for third party sales where intangible property makes insignificant contribution
608HMeaning of “intangible property”
608IApplication of Chapter to certain partnerships
Exemptions
608JExemption where limited UK sales
608JAExemption where company resident in specified territory
608KExemption where business undertaken within territory of residence
608LExemption where foreign tax at least half of UK tax
608MSection 608L: the local tax amount
608MAExemption where income of opaque partnership taxable in full treaty territory
608MBExemption for certain bodies corporate that are transparent in full treaty territory
608MCExemption for double taxation on amounts within same control group
608NExemptions: further provision
Recovery of tax from person in same control group
608ONotice requiring payment from person in same control group as taxpayer
608PPayment notice: effect
608QPayment notice: appeals
608RPayment notice: effect of making payment etc
Meaning of “control group” and “related person”
608SControl groups
608TRelated persons
608UMeaning of “51% investment” and “25% investment”
608VMeaning of direct or indirect participation in management, control or capital
General
608WAnti-avoidance
608XInteraction with other general provisions
608YAppeals against assessments
Interpretation: general
608ZInterpretation of Chapter: general
Chapter 3Films and sound recordings: non-trade businesses
609Charge to tax on films and sound recordings businesses
610 Income charged
611Person liable
612Calculation of income
613Application of trading income rules to non-trade businesses
Chapter 4Certain telecommunication rights: non-trading income
614Charge to tax on certain telecommunication rights of a non-trader
615Income charged
616Person liable
617Deductions in calculating certain income charged
618Payments received after deduction of tax
Chapter 5Settlements: amounts treated as income of settlor or family
Charge to tax under Chapter 5
619Charge to tax under Chapter 5
619AIncome treated as highest part of settlor's total income
620Meaning of “settlement” and “settlor”
Income charged and person liable
621Income charged
622Person liable
Rules for calculating income
623Calculation of income
Income treated as income of settlor: retained interests
624Income where settlor retains an interest
625Settlor's retained interest
626Exception for outright gifts between spouses or civil partners
627Exceptions for certain types of income
628Exception for gifts to charities
628AException for protected foreign-source income
628BSection 628A: tainting
628CForeign income arising before, but remitted on or after, 6 April 2017
Income treated as income of settlor: relevant children
629Income paid to relevant children of settlor
630Exception for gifts to charities
630AException for protected foreign-source income
631Retained and accumulated income
632Offshore income gains
Capital sums treated as income of settlor: trustees' payments
633Capital sums paid to settlor by trustees of settlement
634Meaning of “capital sum” and “sums paid to settlor”
635Amount of available income
636Calculation of undistributed income
637Qualifications to section 636
Trustees' payments: further provisions
638Capital sums paid by way of loan or repayment of loan
639Loans to participators in close companies
640Grossing-up of deemed income
Capital sums treated as income of settlor: connected bodies
641Capital sums paid to settlor by body connected with settlement
642Exception for certain loans or repayments of loans
643Interpretation of sections 641 and 642
Benefits matched with protected foreign-source income
643ADeemed income because of benefits for settlor or close family member
643BMeaning of “untaxed benefits total” in section 643A
643CMeaning of “available protected income” in section 643A
643DReduction in section 643A income: previous capital gains tax charge
643EReimbursement of tax paid by settlor because of section 643A
643FIncome attributed by section 643A to user of remittance basis
643GSection 643F(4): benefits and income “relating” to deemed income
643HMeaning of close member of settlor's family in sections 643B to 643M
643IRecipients of onward gifts
643JCases where income treated as arising to recipient of onward gift
643KCases where deemed income attributed to recipient of onward gift
643LCases where settlor liable following onward gift
643MOnward gift to settlor or close family member by other recipient
643NPerson liable under section 643J or 643L and remittance basis applies
Settlements by two or more settlors
644Application to settlements by two or more settlors
645Property or income originating from settlor
Other supplementary provisions
646Adjustments between settlor and trustees etc.
646ATrustees' expenses to be rateably apportioned
647Power to obtain information
648Income arising under a settlement
Chapter 6Beneficiaries' income from estates in administration
Charge to tax on estate income
649Charge to tax on estate income
650Absolute, limited and discretionary interests
651Meaning of “UK estate” and “foreign estate”
Types of estate income
652Estate income: absolute interests in residue
653Meaning of “the administration period” and “the final tax year”
654Estate income: limited interests in residue
655Estate income: discretionary interests in residue
Income charged and person liable
656Income charged: UK estates
657Income charged: foreign estates
658Special rules for foreign income
659Person liable
Basic amount of estate income: general calculation rules
660Basic amount of estate income: absolute interests
661Basic amount of estate income: limited interests
662Basic amount of estate income: discretionary interests
663The applicable rate for grossing up basic amounts of estate income
664The aggregate income of the estate
Further provisions for calculating estate income relating to absolute interests
665Assumed income entitlement
666The residuary income of the estate
667Shares of residuary income of estate
668Reduction in share of residuary income of estate
669Reduction in residuary income: inheritance tax on accrued income
670Applicable rate for determining assumed income entitlement (UK estates)
Special rules for successive interests
671Successive absolute interests
672Successive interests: assumed income entitlement of holder of absolute interest following limited interest
673Successive interests: payments in respect of limited interests followed by absolute interests
674Successive interests: holders of limited interests
675Basic amount of estate income: successive limited interests
676Apportionments
Relief where foreign estates have borne UK income tax
677Relief where UK income tax borne by foreign estate: absolute interests
678Relief where UK income tax borne by foreign estate: limited and discretionary interests
General
679Income from which basic amounts are treated as paid
679AIncome from which sums within section 668(1)(b) are treated as paid
680Income treated as bearing income tax
680AIncome treated as dividend income
680BIncome treated as savings income
681Transfers of assets etc. treated as payments
682Assessments, adjustments and claims after the administration period
682AStatements relating to estate income
Chapter 7Annual payments not otherwise charged
683Charge to tax on annual payments not otherwise charged
684Income charged
685Person liable
685ASettlor-interested settlements
686Payments received after deduction of tax
Chapter 8Income not otherwise charged
687Charge to tax on income not otherwise charged
688Income charged
689Person liable
689ATemporary non-residents
Part 6Exempt income
Chapter 1Introduction
690Overview of Part 6
Chapter 2National savings income
691National Savings Bank ordinary account interest
692Income from savings certificates
693Income from Ulster Savings Certificates
Chapter 3Income from individual investment plans
694Income from individual investment plans
694ADeceased investors
695Investment plans
695AInvestment plans for children
696Plan managers
697Special requirements for certain foreign managers
698Requirements for discharge of foreign institution's duties
699Non-entitlement to exemption
700Information
701General and supplementary powers
Chapter 4SAYE interest
702Interest under certified SAYE savings arrangements
703Meaning of “certified SAYE savings arrangement”
704Types of arrangements and providers
705Certification of arrangements
706Withdrawal and variation of certifications and connected requirements
707Authorisation of providers
708Withdrawal and variation of authorisations
Chapter 5Venture capital trust dividends
709Venture capital trust dividends
710Treatment of shares where annual acquisition limit exceeded
711Identification of shares after disposals
712Identification of shares after reorganisations etc.
Chapter 6Income from FOTRA securities
713Introduction: securities free of tax to residents abroad (“FOTRA securities”)
714Exemption of profits from FOTRA securities
715Interest from FOTRA securities held on trust
716Restriction on deductions etc. relating to FOTRA securities
Chapter 7Purchased life annuity payments
Partial exemption for purchased life annuity payments
717Exemption for part of purchased life annuity payments
718Excluded annuities
719Extent of exemption under section 717
720Exempt proportion: term dependent solely on duration of life
721Exempt sum: term dependent solely on duration of life
722Consideration for the grant of annuities
723Determinations
724Regulations
Immediate needs annuities
725Annual payments under immediate needs annuities
726Meaning of “care provider”
Chapter 8Other annual payments
Certain annual payments by individuals
727Certain annual payments by individuals
728Commercial payments
729Payments for non-taxable consideration
730Foreign maintenance payments
Periodical payments of personal injury damages etc.
731Periodical payments of personal injury damages
732Compensation awards
733Persons entitled to exemptions for personal injury payments etc.
734Payments from trusts for injured persons
Health and employment insurance payments
735Health and employment insurance payments
736Health and employment risks and benefits
737Period for which payments may be made
738Risk of significant loss
739Conditions to be met by policies also providing other benefits
740Conditions to be met where policies are linked
741Aggregation of policies where employment ends for health reasons
742Meaning of “the insured”
743Policies for the benefit of others who contribute to premiums
Payments to adopters
744Payments to adopters, etc: England and Wales
745Payments to adopters, etc: Scotland
746Payments to adopters, etc: Northern Ireland
747Power to amend sections 744 to 746
Payments by persons liable to pool betting duty
748Payments by persons liable to pool betting duty
Chapter 9Other income
Interest only income
749 Repayment interest, and interest paid under repayment supplements
749AInterest on tax overpaid
750Interest from tax reserve certificates
751Interest on damages for personal injury
752Interest under employees' share schemes
753Interest on repayment of student loan
753AInterest on unpaid relevant contributions
754Redemption of funding bonds
755Interest on foreign currency securities etc. owned by non-UK residents
756Which securities and loans are foreign currency ones for section 755
756AInterest on certain deposits of victims of National-Socialist persecution
...
757Interest and royalty payments: introduction
758Exemption for certain interest and royalty payments
759The person making the payment
760The person beneficially entitled to the payment
761Meaning of “25% associates”
762Interest payments: exemption notices
763Special relationships
764Application of ICTA provisions about special relationships
765Anti-avoidance
766Interest and royalty payments: interpretation
767Power to amend references to the Directive by order
Income from commercial occupation of woodlands
768Commercial occupation of woodlands
Housing grants
769Housing grants
Schedule 2 share incentive plan distributions
770Amounts applied by SIP trustees acquiring dividend shares or retained for reinvestment
Foreign income of consular officers and employees
771Relevant foreign income of consular officers and employees
772Further provisions about Orders under section 771
Income of non-UK residents from certain securities
773Income from Inter-American Development Bank securities
774Income from securities issued by designated international organisations
Other
775Income towards reducing the national debt
775AGovernment bonus for savings account or other investment plan
776Scholarship income
776APayments under Jobs Growth Wales Plus
777VAT repayment supplements
778Incentives to use electronic communications
779Gains on commodity and financial futures
780Disabled person's vehicle maintenance grant
781Payments under New Deal 50plus
782Payments under employment zone programme
782ADomestic microgeneration
782BRenewables obligation certificates for domestic microgeneration
782CVolunteers etc: compensation for lost employment income
Chapter 10General
783General disregard of exempt income for income tax purposes
PART 6AIncome charged under this Act: trading and property allowances
CHAPTER 1Trading allowance
Introduction
783ARelief under this Chapter
Basic definitions
783AA“Relevant trade” of an individual
783AB“Miscellaneous income”
783ACThe individual's “relevant income”
783ADThe individual's trading allowance
Full relief
783AEFull relief: introduction
783AFFull relief: trade profits
783AGFull relief: miscellaneous income
Partial relief
783AHPartial relief: alternative calculation of profits: introduction
783AIPartial relief: alternative calculation of trade profits
783AJPartial relief: alternative calculation of chargeable miscellaneous income
783AKDeductible amount: splitting of trading allowance
Elections
783ALElection for full relief not to be given
783AMElection for partial relief
Exclusions from relief
783ANExclusion from relief: expenses deducted against rent-a-room receipts
783AOExclusion from relief: payments by employer
783APExclusion from relief: payments by firm
783AQExclusion from relief: payments by close company
Interpretation
783ARInterpretation of this Chapter
CHAPTER 2Property allowance
Introduction
783BRelief under this Chapter
Basic definitions
783BA“Relevant property business” of an individual
783BB“Relievable receipts” of a property business
783BCThe individual's “relevant property income”
783BDThe individual's property allowance
Relief if relevant property income does not exceed property allowance
783BEFull relief: introduction
783BFFull relief: property profits
Relief if relevant property income exceeds property allowance
783BGPartial relief: alternative calculation of property profits: introduction
783BHPartial relief: alternative calculation of property profits
783BIDeductible amount: splitting of property allowance
Elections
783BJElection for full relief not to be given
783BKElection for partial relief
Exclusions from relief
783BLExclusion from relief: tax reduction under section 274A
783BMExclusion from relief: expenses deducted against rent-a-room receipts
783BNExclusion from relief: payments by employer
783BOExclusion from relief: payments by firm
783BPExclusion from relief: payments by close company
Interpretation
783BQInterpretation of this Chapter
Part 7Income charged under this Act: rent-a-room and qualifying care relief
Chapter 1Rent-a-room relief
Introduction
784Overview of Chapter 1
785Person who qualifies for relief
Basic definitions
786Meaning of “rent-a-room receipts”
787Meaning of “residence”
788Meaning of “total rent-a-room amount”
Individual's limit
789The individual's limit
790Exclusive receipts condition
Relief if amount does not exceed limit
791Full rent-a-room relief: introduction
792Full rent-a-room relief: trading income
793Full rent-a-room relief: property income
794Full rent-a-room relief: income chargeable under Chapter 8 of Part 5
Alternative calculation of profits if amount exceeds limit
795Alternative calculation of profits: introduction
796Alternative calculation of profits: trading income
797Alternative calculation of profits: property income
798Alternative calculation of profits: income chargeable under Chapter 8 of Part 5
Elections
799Election not to apply full relief
800Election for alternative methodof calculating profits
801Time limit on adjustment of assessment
Interpretation
802Minor definitions
Chapter 2qualifying care relief
Introduction
803Overview of Chapter 2
804Person who qualifies for relief
804AShared lives care: further condition for relief
Basic definitions
805Meaning of “qualifying care receipts”
805AMeaning of providing qualifying care
806Meaning of providing foster care
806AMeaning of providing shared lives care
806BMeaning of “residence”
807Calculation of “total qualifying care receipts”
Individual's limit
808The individual's limit
809Share of fixed amount: residence used by more than one carer
810Share of fixed amount: income period not a year
811The amount per adult or child
Relief if amount does not exceed limit
812Full qualifying care relief: introduction
813Full qualifying care relief: trading income
814Full qualifying care relief: income chargeable under Chapter 8 of Part 5
Alternative calculation of profits if amount exceeds limit
815Alternative calculation of profits: introduction
816Alternative calculation of profits: trading income
817Alternative calculation of profits: income chargeable under Chapter 8 of Part 5
818Election for alternative methodof calculating profits
819Adjustment of assessment
Periods of account not ending on 5th April
820Periods of account not ending on 5th April
821Meaning of “relevant limit”
822Full relief
823Alternative method of calculating profits
Capital allowances for foster carers carrying on trade
824Capital allowances: introduction
825Unallocated capital expenditure
825ADeemed disposal event
825BPlant or machinery used for care business
825CPlant or machinery used for other qualifying activities
825DSubsequent disposal events
826Excluded capital expenditure
827Excluded capital expenditure: subsequent treatment of asset
Overlap profit
828Overlap profit
828AIndexation of the fixed amount and the amount per adult and child
Part 8Foreign income: special rules
Chapter 1Introduction
829Overview of Part 8
830Meaning of “relevant foreign income”
Chapter 2Relevant foreign income charged on remittance basis
Remittance basis
831Claims for relevant foreign income to be charged on the remittance basis
832Relevant foreign income charged on remittance basis
832ASection 832: temporary non-residents
832BSection 832: deductions from remitted income
833Income treated as remitted: repayment of UK-linked debts
834Arrangements treated as repayment of UK-linked debts
Relief for delayed remittances
835Relief for delayed remittances
836Relief for delayed remittances: backdated pensions
837Claims for relief on delayed remittances
Chapter 3Relevant foreign income charged on arising basis: deductions and reliefs
838Expenses attributable to collection or payment of relevant foreign income
839Annual payments payable out of relevant foreign income
840Relief for backdated pensions charged on the arising basis
840AClaims under section 840
Chapter 4Unremittable income
841Unremittable income: introduction
842Claim for relief for unremittable income
843Withdrawal of relief
844Income charged on withdrawal of relief after source ceases
845Valuing unremittable income
Part 9Partnerships
Introduction
846Overview of Part 9
847General provisions
848Assessment of partnerships
848ABare trusts
Calculation of partners' shares
849Calculation of firm's profits or losses
850Allocation of firm's profits or losses between partners
850AProfit-making period in which some partners have losses
850BLoss-making period in which some partners have profits
850CExcess profit allocation to non-individual partners
850DExcess profit allocation: cases involving individuals who are not partners
850EPayments by B out of the excess part of B's profit share
851Calculations etc. where firm has other income or losses
Firms with trading income
852Carrying on by partner of notional trade
852ANotional trades: indirect partners
853Basis periods for partners' notional trades
Firms with trading and other source income
854Carrying on by partner of notional business
855Basis periods for partners' notional businesses
855ANotional business: indirect partners
856Overlap profits from partners' notional businesses
Firms with a foreign element
857Partners to whom the remittance basis applies
858Resident partners and double taxation agreements
Miscellaneous
859Special provisions about farming and property income
860Adjustment income
861Sale of patent rights: effect of partnership changes
862Sale of patent rights: effect of later cessation of trade
863Limited liability partnerships
863ALimited liability partnerships: salaried members
863BCondition A
863CCondition B
863DCondition C
863EM's contribution to the limited liability partnership: the basic calculation
863FM's contribution to the limited liability partnership: deemed contributions
863GAnti-avoidance
Alternative investment fund managers
863HElection for special provision for alternative investment fund managers to apply
863IAllocation of profit to the AIFM firm
863JVesting of remuneration represented by the allocated profit
863KVesting statements
863LThe AIFMD remuneration guidelines
Part 10General provisions
Chapter 1Introduction
864Overview of Part 10
Chapter 2General calculation rules etc.
Unpaid remuneration
865Unpaid remuneration: non-trades and non-property businesses
Employee benefit contributions
866Employee benefit contributions: non-trades and non-property businesses
Business entertainment and gifts
867Business entertainment and gifts: non-trades and non-property businesses
Social security contributions
868Social security contributions: non-trades etc.
Penalties and interest
869Penalties and interest : non-trades etc.
Crime-related payments
870Crime-related payments: non-trades and non-property businesses
Apportionment of profits
871Apportionment etc. of miscellaneous profits to tax year
Calculation of losses
872Losses calculated on same basis as miscellaneous income
Chapter 3Supplementary and general provisions
Orders and regulations
873Orders and regulations made by Treasury or Commissioners
Interpretation
874Activities in UK sector of continental shelf
875Meaning of “caravan”
876Meaning of “farming” and related expressions
877Meaning of grossing up
878Other definitions
879Interpretation: Scotland
880Interpretation: Northern Ireland
General and final
881Disapplication of corporation tax: section 9 of ICTA
882Consequential amendments
883Commencement and transitional provisions etc.
884Repeals and revocations
885Abbreviations and general index in Schedule 4
886Short title
SCHEDULES
SCHEDULE 1Consequential amendments
Part 1Income and Corporation Taxes Act 1988
1The Income and Corporation Taxes Act 1988 (c. 1) is...
2. . . . . . . . . ....
3. . . . . . . . . ....
4. . . . . . . . . ....
5In section 4 (construction of references in Income Tax Acts...
6. . . . . . . . . ....
7. . . . . . . . . ....
8(1) Amend section 15 (Schedule A) as follows.
9(1) Amend section 18 (Schedule D) as follows.
10Omit section 20 (Schedule F).
11Omit section 21 (persons chargeable and basis of assessment under...
12(1) Amend section 21A (computation of amount chargeable under Schedule...
13In section 21B (application of other rules applicable to Case...
14In section 21C (the Schedule A charge and mutual business)—...
15(1) Amend section 30 (expenditure on making sea walls) as...
16Omit sections 31A and 31B (deductions for expenditure by landlords...
17. . . . . . . . . ....
18. . . . . . . . . ....
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31. . . . . . . . . ....
32(1) Amend section 53 (farming and other commercial occupation of...
33In section 55(1) (mines, quarries and other concerns) after “charged...
34(1) Amend section 56 (transactions in deposits with and without...
35(1) Amend section 59 (persons chargeable: Schedule D) as follows....
36Omit sections 60 to 63A (basis of assessment for income...
37Omit section 64 (Case III assessments).
38Omit section 65 (Cases IV and V assessments: general).
39Omit section 65A (Case V income from land outside UK:...
40Omit section 68 (special rules where property etc. situated in...
41Omit sections 68A to 68C (share incentive plans).
42Omit section 69 (Case VI assessments).
43Omit section 71 (computation of income tax where no profits...
44. . . . . . . . . ....
45In section 74(1) (general rules as to deductions not allowable)—...
46. . . . . . . . . ....
47Omit section 77 (incidental costs of obtaining loan finance).
48. . . . . . . . . ....
49. . . . . . . . . ....
50. . . . . . . . . ....
51Omit section 80 (expenses connected with foreign trades etc).
52Omit section 81 (travel between trades etc).
53Omit section 82 (interest paid to non-residents).
54In section 82A(1) (expenditure on research and development)—
55In section 82B(1) (payments to research associations, universities etc.)—
56In section 83 (patent fees etc. and expenses) after “the...
57(1) Amend section 83A (gifts in kind to charities etc.)...
58(1) Amend section 84 (gifts to educational establishments) as follows....
59. . . . . . . . . ....
60. . . . . . . . . ....
61In section 86A (charitable donations: contributions to agent's expenses) —...
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72. . . . . . . . . ....
73. . . . . . . . . ....
74. . . . . . . . . ....
75Omit section 95A (creative artists: relief for fluctuating profits).
76Omit section 96 (farming and market gardening: relief for fluctuating...
77. . . . . . . . . ....
78. . . . . . . . . ....
79. . . . . . . . . ....
80. . . . . . . . . ....
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83. . . . . . . . . ....
84. . . . . . . . . ....
85. . . . . . . . . ....
86Omit section 107 (treatment of receipts as earned income).
87Omit section 108 (election for carry-back).
88Omit section 109 (charge under section 104: relief for individuals...
89(1) Amend section 109A (relief for post-cessation expenditure) as follows....
90. . . . . . . . . ....
91Omit section 110A (change of residence) and the italic cross-heading...
92. . . . . . . . . ....
93Omit section 112 (partnerships controlled abroad).
94Omit section 113 (effect for income tax of change in...
95. . . . . . . . . ....
96. . . . . . . . . ....
97. . . . . . . . . ....
98. . . . . . . . . ....
99. . . . . . . . . ....
100. . . . . . . . . ....
101. . . . . . . . . ....
102. . . . . . . . . ....
103In section 119(1) (rent etc. payable in connection with mines,...
104In section 120 (rent etc. payable in respect of electric...
105In section 121 (management expenses of owner or mineral rights)...
106(1) Amend section 122 (relief in respect of mineral royalties)...
107. . . . . . . . . ....
108Omit section 127 (enterprise allowance).
109Omit section 127A (futures and options: transactions with guaranteed returns)....
110In section 128 (commodity and financial futures etc: losses and...
111. . . . . . . . . ....
112. . . . . . . . . ....
113. . . . . . . . . ....
114. . . . . . . . . ....
115. . . . . . . . . ....
116In section 231B(4)(b) (consequences of certain arrangements to pass on...
117Omit section 232 (tax credits for non-UK residents).
118Omit section 233 (taxation of certain recipients of distributions and...
119. . . . . . . . . ....
120(1) Amend section 250 (returns) as follows.
121In section 251 (interpretation of sections 249 and 250), omit...
122Omit sections 251A to 251D (approved share incentive plans).
123In section 271(1)(a) (deemed surrender in cases of certain loans)...
124. . . . . . . . . ....
125. . . . . . . . . ....
126. . . . . . . . . ....
127. . . . . . . . . ....
128Omit section 314 (divers and diving supervisors).
129Omit section 322 (consular officers and employees).
130Omit section 324 (designated international organisations).
131Omit section 325 (interest on deposits with National Savings Bank)....
132Omit section 326 (interest etc. under contractual savings schemes).
133Omit sections 326A to 326D (tax-exempt special savings accounts).
134Omit section 327 (disabled person's vehicle maintenance grant).
135Omit section 327A (payments to adopters).
136Omit sections 329 to 329AB (exemption of interest on damages...
137Omit section 331 (scholarship income).
138Omit section 331A (student loans: certain interest to be disregarded)....
139Omit section 332(3) (expenditure and houses of ministers of religion)....
140In section 332A (venture capital trusts: reliefs) omit “and distributions...
141For section 333 substitute— Investment plan regulations Regulations under Chapter 3 of Part 6 of ITTOIA 2005...
142Omit section 333A (personal equity plans: tax representatives).
143. . . . . . . . . ....
144. . . . . . . . . ....
145(1) Amend section 337 (company beginning or ceasing to carry...
146(1) Amend section 347A (general rule: annual payments) as follows....
147. . . . . . . . . ....
148. . . . . . . . . ....
149. . . . . . . . . ....
150. . . . . . . . . ....
151. . . . . . . . . ....
152In section 353(1) (relief for payments of interest) after “sections...
153. . . . . . . . . ....
154. . . . . . . . . ....
155In section 370(2)(b) (relevant loan interest) for the words from...
156. . . . . . . . . ....
157. . . . . . . . . ....
158In section 382(3) (provisions supplementary to sections 380 and 381)...
159. . . . . . . . . ....
160. . . . . . . . . ....
161In section 385(4) (carry-forward against subsequent profits) omit “under Case...
162In section 386(1) (carry-forward where business transferred to a company)...
163. . . . . . . . . ....
164. . . . . . . . . ....
165. . . . . . . . . ....
166. . . . . . . . . ....
167. . . . . . . . . ....
168. . . . . . . . . ....
169. . . . . . . . . ....
170In section 398 (loss relief for transactions in deposits with...
171. . . . . . . . . ....
172. . . . . . . . . ....
173. . . . . . . . . ....
174. . . . . . . . . ....
175. . . . . . . . . ....
176In section 431D(3)(b) (meaning of “overseas life assurance business”) after...
177In section 434 (franked investment income etc.) omit subsection (1A)....
178(1) Amend section 437 (general annuity business) as follows.
179(1) Section 468J (dividend distributions of authorised unit trusts) is...
180(1) Section 468L (interest distributions of authorised unit trusts) is...
181. . . . . . . . . ....
182. . . . . . . . . ....
183. . . . . . . . . ....
184(1) Amend section 477A (building societies: regulations for deduction of...
185Omit section 480C (relevant deposits: computation of tax on interest)....
186. . . . . . . . . ....
187. . . . . . . . . ....
188(1) Section 486 (industrial and provident societies and co-operative associations)...
189. . . . . . . . . ....
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194. . . . . . . . . ....
195. . . . . . . . . ....
196(1) Amend section 504 (meaning of the “commercial letting of...
197. . . . . . . . . ....
198. . . . . . . . . ....
199. . . . . . . . . ....
200Omit section 514 (funds for reducing the national debt).
201. . . . . . . . . ....
202. . . . . . . . . ....
203. . . . . . . . . ....
204In section 527(4) (spreading of royalties over several years) at...
205. . . . . . . . . ....
206Omit section 529 (patent income to be earned income in...
207. . . . . . . . . ....
208. . . . . . . . . ....
209. . . . . . . . . ....
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219. . . . . . . . . ....
220. . . . . . . . . ....
221. . . . . . . . . ....
222(1) Amend section 552 (information: duty of insurers) as follows....
223In section 552ZA(3) (information: supplementary provisions) after “section 546C(7)(a)” insert...
224(1) Amend section 552A (tax representatives) as follows.
225In section 552B (duties of overseas insurers' tax representatives) after...
226. . . . . . . . . ....
227. . . . . . . . . ....
228. . . . . . . . . ....
229Omit section 554 (borrowings on life policies to be treated...
230. . . . . . . . . ....
231Omit section 557 (charge on profits).
232In section 568(1) (deductions from profits of contributions paid under...
233In section 570(4) (payments under certified schemes which are not...
234. . . . . . . . . ....
235. . . . . . . . . ....
236. . . . . . . . . ....
237In section 578(1) (housing grants) for “any tax purpose” substitute...
238. . . . . . . . . ....
239. . . . . . . . . ....
240Omit sections 580A to 580C (relief from tax on annual...
241Omit section 581 (borrowing in foreign currency by local authorities...
242. . . . . . . . . ....
243. . . . . . . . . ....
244Omit section 583 (Inter-American Development Bank).
245. . . . . . . . . ....
246Omit section 585 (relief from tax on delayed remittances).
247. . . . . . . . . ....
248. . . . . . . . . ....
249. . . . . . . . . ....
250. . . . . . . . . ....
251. . . . . . . . . ....
252(1) Amend section 591C (cessation of approval: tax on certain...
253(1) Amend section 592 (exempt approved schemes) as follows.
254(1) Amend section 598 (charge to tax: repayment of employee's...
255(1) Amend section 599 (charge to tax: commutation of entire...
256In section 599A (charge to tax: payments out of surplus...
257In section 601(5)(b) (charge to tax: payments to employers) for...
258In section 602(1)(a) (regulations relating to pension fund surpluses) omit...
259(1) Amend section 607 (pilots' benefit fund) as follows.
260In section 608(2) (superannuation funds approved before 6th April 1980)—...
261In section 614(2A) (exemptions and reliefs in respect of income...
262. . . . . . . . . ....
263(1) Amend section 623 (relevant earnings) as follows.
264In section 644(2) (meaning of “relevant earnings”)—
265In section 646(2) (meaning of “relevant net earnings”)—
266(1) Amend section 648B (return of contributions after pension date)...
267(1) Amend section 650A (charge on withdrawal of approval from...
268(1) . . . . . . . . ....
269. . . . . . . . . ....
270. . . . . . . . . ....
271Omit sections 660A and 660B (income arising under settlement where...
272(1) Amend section 660C (nature of charge on settlor) as...
273Omit sections 660D to 660G (settlements: supplementary provisions etc.).
274Omit section 677 (sums paid to settlor otherwise than as...
275Omit section 678 (capital sums paid by body connected with...
276Omit sections 682 and 682A (ascertainment of undistributed income and...
277. . . . . . . . . ....
278
279Omit section 688 (schemes for employees and directors to acquire...
280. . . . . . . . . ....
281
282. . . . . . . . . ....
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286. . . . . . . . . ....
287. . . . . . . . . ....
288. . . . . . . . . ....
289Omit section 699 (relief from higher rate tax for inheritance...
290. . . . . . . . . ....
291. . . . . . . . . ....
292. . . . . . . . . ....
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297. . . . . . . . . ....
298. . . . . . . . . ....
299. . . . . . . . . ....
300. . . . . . . . . ....
301Omit section 730C (exchanges of gilts: traders etc.).
302. . . . . . . . . ....
303. . . . . . . . . ....
304. . . . . . . . . ....
305. . . . . . . . . ....
306. . . . . . . . . ....
307. . . . . . . . . ....
308. . . . . . . . . ....
309. . . . . . . . . ....
310In section 774(1) (transactions between dealing company and associated company)—...
311. . . . . . . . . ....
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320. . . . . . . . . ....
321. . . . . . . . . ....
322. . . . . . . . . ....
323. . . . . . . . . ....
324In section 806K(2) (application of foreign dividend provisions to branches...
325. . . . . . . . . ....
326In section 812(1) (withdrawal of right to tax credit of...
327. . . . . . . . . ....
328. . . . . . . . . ....
329. . . . . . . . . ....
330In section 821(1) (under-deductions from payments made before passing of...
331(1) Section 824 (repayment supplements: individuals and others) is amended...
332. . . . . . . . . ....
333. . . . . . . . . ....
334(1) Amend section 828 (orders and regulations made by the...
335. . . . . . . . . ....
336In section 831(3) (interpretation of ICTA) after the entry relating...
337. . . . . . . . . ....
338. . . . . . . . . ....
339. . . . . . . . . ....
340. . . . . . . . . ....
341. . . . . . . . . ....
342Omit Schedule 4A (creative artists: relief for fluctuating profits).
343(1) Amend Schedule 5 (treatment of farm animals etc for...
344Omit Schedule 5AA (guaranteed returns on transactions in futures and...
345Omit Schedule 15A (contractual savings schemes).
346(1) Amend Schedule 15B (venture capital trusts: relief from income...
347. . . . . . . . . ....
348(1) Amend Schedule 22 (reduction of pension fund surpluses) as...
349In paragraph 11A(4) of Schedule 24 (assumptions for calculating chargeable...
350. . . . . . . . . ....
351. . . . . . . . . ....
352(1) Amend Schedule 30 (transitional provisions and savings) as follows....
Part 2Other enactments
Finance Act 1950 (c. 15)
353The Finance Act 1950 is amended as follows.
354In section 40(3) (modification of section 39 in case of...
Chevening Estate Act 1959 (c. 49)
355The Chevening Estate Act 1959 is amended as follows.
356(1) Amend section 2 (provisions as to income tax, estate...
Taxes Management Act 1970 (c. 9)
357The Taxes Management Act 1970 is amended as follows.
358(1) Amend section 7 (notice of liability to income tax...
359In section 8(1AA)(b) (personal returns) for “section 231 of the...
360In section 8A(1AA)(b) (trustee's returns) for “section 231 of the...
361In section 9(1) (returns to include self-assessment)—
362Omit section 9D (choice between different Cases of Schedule D)....
363In section 12AA(1A)(b) (partnership returns) for “section 231 of the...
364In section 12AB(5) (partnership return to include partnership statement) in...
365In section 12AE(2) (choice between different Cases of Schedule D)...
366(1) Amend section 18 (interest paid without deduction of income...
367(1) Amend section 19 (information for purposes of Schedule A)...
368In section 27(2) (settled property) for “section 660G(1) and (2)...
369In section 30 (recovery of overpayment of tax, etc.) omit...
370In section 30A(2) (assessing procedure) for “Schedule” substitute “ Part...
371In section 31(3) (appeals: right of appeal) omit “9D or”....
372In section 42(7) (procedure for making claims etc.) omit the...
373(1) Amend section 46B (questions to be determined by Special...
374In section 46C (jurisdiction of Special Commissioners over certain claims...
375In section 58(3)(b) (proceedings in tax cases in Northern Ireland)...
376In section 59A(8)(b) (payments on account of income tax) for...
377(1) Amend section 59B (payment of income tax and capital...
378In section 90(1)(b) (disallowance of relief for interest on tax)...
379(1) Amend section 98 (special returns, etc) as follows.
380In section 118(1) (interpretation) after the definition of “ITEPA 2003”...
381In Schedule 1A (claims etc. not included in returns), in...
382(1) Amend Schedule 1B (claims for relief involving two or...
383In paragraph 10 of Schedule 3 (rules for assigning proceedings...
384In paragraph 2(4) of Schedule 3A (electronic lodgement of tax...
Finance Act 1971 (c. 68)
385The Finance Act 1971 is amended as follows.
386In paragraph 8(2)(b) of Schedule 3 (taxation of refunds of...
Finance Act 1973 (c. 51)
387. . . . . . . . . ....
388. . . . . . . . . ....
Biological Standards Act 1975 (c. 4)
389The Biological Standards Act 1975 is amended as follows.
390(1) Amend section 2 (exemption of the National Biological Standards...
Oil Taxation Act 1975 (c. 22)
391The Oil Taxation Act 1975 is amended as follows.
392In section 3(2) (allowance of expenditure (other than expenditure on...
Inheritance Tax Act 1984 (c. 51)
393The Inheritance Tax Act 1984 is amended as follows.
394In section 6(3) (excluded property), in paragraph (e)—
395In section 21(3) (normal expenditure out of income)—
396In section 174(1) (liabilities for which allowance is to be...
Films Act 1985 (c. 21)
397The Films Act 1985 is amended as follows.
398In section 6(1) (certification of master negatives, tapes and discs)...
399(1) Amend Schedule 1 (certification in case of British films)...
Finance Act 1988 (c. 39)
400The Finance Act 1988 is amended as follows.
401(1) Amend section 38 (maintenance payments under existing obligations: 1989-90...
402In section 73(2) (consideration for certain restrictive undertakings)—
403In Schedule 6 (commercial woodlands) in paragraph 3(2) for “person”...
404In Schedule 12 (building societies: change of status) for paragraph...
Water Act 1989 (c. 15)
405In section 95(11) of the Water Act 1989 (vesting in...
Finance Act 1989 (c. 26)
406The Finance Act 1989 is amended as follows.
407In section 68(2) (principal charges to tax: employee share ownership...
408In section 71(4) (further charges to tax: borrowing)—
409(1) Amend section 76 (non-approved retirement benefits schemes) as follows....
410Omit sections 112 and 113 (security: trades etc.).
411In section 151(2) (assessment of trustees etc) in each of...
412In paragraph 1 of Schedule 12 (close companies: administrative provisions)—...
Electricity Act 1989 (c. 29)
413In paragraph 10 of Schedule 11 to the Electricity Act...
Finance Act 1990 (c. 29)
414The Finance Act 1990 is amended as follows.
415(1) Amend section 25 (donations to charity by individuals) as...
416(1) Amend section 126 (pools payments for football ground improvements)...
Finance Act 1991 (c. 31)
417The Finance Act 1991 is amended as follows.
418(1) Amend section 121 (pools payments to support games etc....
Social Security Contributions and Benefits Act 1992 (c. 4)
419The Social Security Contributions and Benefits Act 1992 is amended...
420(1) Amend section 15 (Class 4 contributions recoverable under the...
421In section 16(1) (application of Income Tax Acts and destination...
422(1) Amend Schedule 2 (levy of Class 4 contributions with...
Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)
423The Social Security Contributions and Benefits (Northern Ireland) Act 1992...
424(1) Amend section 15 (Class 4 contributions recoverable under the...
425(1) Amend Schedule 2 (Schedule 2 to the Social Security...
Taxation of Chargeable Gains Act 1992 (c. 12)
426The Taxation of Chargeable Gains Act 1992 is amended as...
427In section 4(2) and (3) (rates of capital gains tax)...
428(1) Amend section 6 (rates of capital gains tax: special...
429In section 12(2) (foreign assets of person with foreign domicile)...
430In section 41(4) (restriction of losses by reference to capital...
431(1) Amend section 59 (partnerships) as follows.
432In section 97(7) (supplementary provisions) for “section 660G(1) and (2)...
433(1) Amend section 117 (meaning of qualifying corporate bond) as...
434(1) Amend section 142 (capital gains on stock dividends) as...
435. . . . . . . . . ....
436In section 151 (personal equity plans) for subsections (2) and...
437In section 151A(6) (venture capital trusts: reliefs) for the words...
438After section 151B insert— Strips: manipulation of price: associated payment...
439In section 156(4) (assets of Class 1) after “Taxes Act”...
440In section 198(5)(b) (replacement of business assets used in connection...
441(1) Amend section 241 (furnished holiday lettings) as follows.
442In section 251(8)(b) (general provisions concerning debts) for “relevant discounted...
443In section 254(1)(c) (definition of “a qualifying loan” for relief...
444After section 261 insert— Know-how Disposal of know-how as part...
445(1) Amend section 271 (miscellaneous exemptions) as follows.
446In section 286(3) (connected persons: interpretation) for “Chapter 1A of...
447(1) Amend section 288 (interpretation) as follows.
448In Schedule A1 (application of taper relief), in paragraph 17(6),...
449In Schedule 1 (application of exempt amount and reporting limits...
450In paragraph 13(7)(h) of Schedule 5B (enterprise investment scheme: re-investment)—...
451(1) Amend Schedule 8 (leases) as follows.
Finance (No. 2) Act 1992 (c. 48)
452The Finance (No. 2) Act 1992 is amended as follows....
453(1) Amend section 40A (revenue nature of expenditure on master...
454(1) Amend section 40B (allocation of expenditure to periods) as...
455In section 40C(1) (cases where section 40B does not apply)...
456(1) Amend section 40D (election for sections 40A and 40B...
457(1) Amend section 41 (relief for preliminary expenditure) as follows....
458(1) Amend section 42 (relief for production or acquisition expenditure)...
459In section 43(1) after the definition of “expenditure of a...
460Omit section 59 (furnished accommodation).
461Omit Schedule 10 (furnished accommodation).
Finance Act 1993 (c. 34)
462The Finance Act 1993 is amended as follows.
463In section 112(7) (employers' pension contributions) in the definition of...
464(1) Amend section 171 (Lloyd's underwriters etc: taxation of income...
465In paragraph 13(4) of Schedule 19 (Lloyd's underwriters etc: repayment...
466(1) Amend Schedule 20A (Lloyd's underwriters: conversion to limited liability...
Pension Schemes Act 1993 (c. 48)
467The Pension Schemes Act 1993 is amended as follows.
468In section 158(4) (disclosure of information between government departments etc.)—...
Pension Schemes (Northern Ireland) Act 1993 (c. 49)
469The Pension Schemes (Northern Ireland) Act 1993 is amended as...
470In section 154(4) (disclosure of information between government departments etc.)—...
Finance Act 1994 (c. 9)
471The Finance Act 1994 is amended as follows.
472(1) Amend Schedule 20 (changes for facilitating self-assessment: transitional provisions...
473In paragraph 26 of Schedule 24 (vesting in successor company...
Coal Industry Act 1994 (c. 21)
474In paragraph 17(1) of Schedule 4 to the Coal Industry...
Finance Act 1995 (c. 4)
475The Finance Act 1995 is amended as follows.
476Omit section 56 (foreign life policies etc).
477In section 73(1)(a) (venture capital trusts: regulations) after “1992” insert...
478In section 123 (prevention of exploitation of transitional provisions) for...
479(1) Amend section 126 ( UK representatives of non-residents) as...
480In section 128(3) (limit on income chargeable on non-residents: income...
481(1) Amend section 154 (short rotation coppice) as follows.
482In section 157(7) (certificates of tax deposit) for “Case III...
483In paragraph 3(4) of Schedule 18 (deceased persons' estates) after...
484(1) Amend Schedule 22 (prevention of exploitation of transitional provisions...
Finance Act 1996 (c. 8)
485The Finance Act 1996 is amended as follows.
486In section 92(1) (convertible securities etc : creditor relationships) for...
487Omit section 102 (discounted securities: income tax provisions).
488(1) Amend section 154 ( FOTRA securities) as follows.
489(1) Amend Schedule 9 (loan provisions: special computational provisions) as...
490Omit Schedule 13 (discounted securities: income tax provisions).
491(1) Amend Schedule 15 (loan relationships: savings and transitional provisions)...
Finance Act 1997 (c. 16)
492The Finance Act 1997 is amended as follows.
493In section 79 (payments under certain life insurance policies)—
494. . . . . . . . . ....
Finance Act (No.2) 1997 (c. 58)
495The Finance (No.2) Act 1997 is amended as follows.
496In section 30 (tax credits)— (a) in subsection (9) after...
497In section 37(7) (interest to be paid gross) for “sections...
498In section 48(1) (relief for expenditure on production or acquisition...
Finance Act 1998 (c. 39)
499The Finance Act 1998 is amended as follows.
500In section 42 (computation of profits of trade, profession or...
501Omit section 43 (barristers and advocates in early years of...
502(1) Amend section 46 (minor and consequential provisions about computations)...
503In section 76(3) (power to make regulations for non-UK residents...
504In section 123(7)— (a) for “both” substitute “ more ”,...
Finance Act 1999 (c. 16)
505The Finance Act 1999 is amended as follows.
506In section 63(1) (treatment of transfer fees under existing contracts)...
507(1) Amend section 65 (relevant discounted securities) as follows.
508In section 85(7)(b) (advance pricing agreements etc. ) after “Taxes...
509(1) Amend Schedule 6 (tax treatment of receipts by way...
Commonwealth Development Corporation Act 1999 (c. 20)
510(1) Amend paragraph 6 of Schedule 3 to the Commonwealth...
Finance Act 2000 (c. 17)
511The Finance Act 2000 is amended as follows.
512(1) Amend section 44 (gifts to charity from certain trusts)...
513Omit section 45 (loans to charities).
514(1) Amend section 46 (exemption for small trades etc. )...
515Omit section 84 (exemption of payments under New Deal 50plus)....
516Omit section 85 (exemption of payments under Employment Zones programmes)....
517Omit section 87 (treatment of certain telecommunication rights).
518In section 143(2) (power to provide incentives to use electronic...
519In section 155 (interpretation) at the end insert “ and...
520In Schedule 12 (provision of services through an intermediary), in...
521In Schedule 15 (the corporate venturing scheme), in paragraph 99(3),...
522In Schedule 22 (tonnage tax), in paragraph 144(3), for “Chapter...
523Omit Schedule 23 (treatment of certain telecommunication rights).
Capital Allowances Act 2001 (c. 2)
524The Capital Allowances Act 2001 is amended as follows.
525In section 4 (capital expenditure) for subsection (5) substitute—
526(1) Amend section 15 (qualifying activities) as follows.
527(1) Amend section 16 (ordinary Schedule A businesses) as follows....
528(1) Amend section 17 (furnished holiday lettings businesses) as follows....
529In section 20(1) (employments and offices) for “section 314 of...
530In section 23(2) (expenditure unaffected by sections 21 and 22)...
531In section 28(2) (thermal insulation of industrial buildings) for “Schedule...
532In section 33(8)(b) (personal security) for “Schedule A” substitute “...
533In section 35(1)(a) (expenditure on plant or machinery for use...
534In section 38(a) (production of animals etc)—
535(1) Amend section 63 (cases in which disposal value is...
536(1) Amend section 106 (the designated period) as follows.
537(1) Amend section 108 (effect of disposal to connected person...
538(1) Amend section 112 (excess allowances: connected persons) as follows....
539(1) Amend section 115 (prohibited allowances: connected persons) as follows....
540(1) Amend section 122 (short-term leasing by buyer, lessee etc)...
541(1) Amend section 125 (other qualifying purposes) as follows.
542In section 154(3) (further registration requirement) for paragraph (b) substitute—...
543In section 155(1) (changes in the persons carrying on qualifying...
544In section 156 (connected persons) for subsection (2) substitute—
545In section 162(2) (ring fence trade a separate qualifying activity)—...
546In section 248 (ordinary Schedule A businesses)—
547In section 252 (mines, transport undertakings etc)—
548In section 258(4) (special leasing: income tax) for “taxed under...
549(1) Amend section 263 (qualifying activities carried on in partnership)...
550(1) Amend section 265 (successions: general) as follows.
551In 268(1) (successions by beneficiaries) for paragraph (b) and the...
552In section 282 (buildings outside the United Kingdom) for “applicable...
553In section 326(1) (interpretation of section 325) in the definition...
554In section 331(1)(b) (capital value provisions: interpretation)—
555(1) Amend section 353 (lessors and licensors) as follows.
556(1) Amend section 354 (buildings temporarily out of use) as...
557In section 390(1) (interpretation of section 389) in the definition...
558(1) Amend section 392 (Schedule A businesses) as follows.
559In section 393B(4) (meaning of “qualifying expenditure”) after “the profits...
560(1) Amend section 393T (giving effect to allowances and charges)...
561(1) Amend section 406 (reduction where premium relief previously allowed)...
562In section 454(1)(c) (qualifying expenditure) after “an election under” insert...
563In section 455(4) (excluded expenditure) after “goodwill under” insert “...
564In section 462(3) (disposal values) after “goodwill under” insert “...
565In section 479(4) (persons having qualifying non-trade expenditure: income tax)...
566In section 481(5)(b) (anti-avoidance: limit on qualifying expenditure) after “in...
567In section 483(c) (meaning of “income from patents”) after “payable...
568In section 488(3)(a) (balancing allowances) for “section 113(1)” to “to...
569(1) Amend section 529 (giving effect to allowances and charges)...
570In section 536(5)(a) (contributions not made by public bodies and...
571In section 558(1)(c) (effect of partnership changes) for the words...
572(1) Amend section 559 (effect of successions) as follows.
573In section 577(1) (definitions) in the definition of “property business”...
574(1) Amend Schedule 1 (abbreviations and defined expressions) as follows....
Finance Act 2002 (c. 23)
575The Finance Act 2002 is amended as follows.
576In section 64(1) (adjustment on change of basis) after “to...
577(1) Amend Schedule 16 (community investment tax relief) as follows....
578(1) Amend Schedule 22 (computation of profits: adjustment of change...
579(1) Amend paragraph 64 of Schedule 25 (transitional provisions concerning...
580In Schedule 29 (gains and losses of a company from...
Proceeds of Crime Act 2002 (c. 29)
581The Proceeds of Crime Act 2002 is amended as follows....
582In section 319(2) (source of income) for “Case 6 of...
583(1) Amend Schedule 10 (tax) as follows.
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
584The Income Tax (Earnings and Pensions) Act 2003 is amended...
585In section 6(5) (exception to charge to tax on employment...
586In section 61(1) (application of provisions to workers under arrangements...
587In section 178 (exception for loans where interest qualifies for...
588In section 180(5) (threshold for benefit of loan to be...
589In section 189(3)(a) (exception where double charge) for “section 677...
590In section 215 for “section 331(1) of ICTA” substitute “...
591In section 302(4) (exemption of consular employees' employment income), in...
592After section 325 insert— Health and employment insurance payments (1) No liability to income tax in respect of employment...
593In section 357(2) (business entertainment and gifts: exception where employer's...
594In Chapter 2 of Part 5, after section 360 insert—...
595In section 394(2) (charge on benefit to which Chapter 2...
596In section 397(1) (certain lump sums: calculation of amount taxed...
597In section 399(1)(b) (employment-related loans: interest treated as paid) omit...
598In section 476 (charge on occurrence of chargeable event) for...
599In section 477(7) (chargeable events) for “(charge under Case VI...
600(1) Amend section 493 (no charge on acquisition of dividend...
601For section 496 (no charge on cash dividend retained for...
602In section 497(3) (limitations on charges on shares ceasing to...
603In section 502(4)(a) (meaning of “capital receipt” in section 501)...
604(1) Amend section 515 (tax advantages and charges under other...
605In section 516(4) (approved SAYE option schemes), in the definition...
606(1) Amend section 575 (taxable pension income: foreign pensions) as...
607(1) Amend section 613 (taxable pension income: foreign annuities) as...
608(1) Amend section 631 (taxable pension income: pre-1973 pensions paid...
609(1) Amend section 635 (taxable pension income: foreign voluntary annual...
610After section 644 insert— Health and employment insurance payments (1) No liability to income tax arises in respect of...
611After section 646 insert— Foreign pensions of consular employees (1) No liability to income tax arises in respect of...
612In section 655(2) (structure of Part 10) for the entries...
613(1) Amend section 679 (taxable social security income: foreign benefits)...
614After section 681 insert— Foreign benefits of consular employees (1) No liability to income tax arises in respect of...
615After section 716 (alteration of amounts by Treasury order) insert—...
616(1) Amend Schedule 1 (abbreviations and defined expressions) as follows....
617(1) Amend Schedule 2 (approved share incentive plans) as follows....
618(1) Amend Schedule 3 (approved SAYE option schemes) as follows....
619In Schedule 4 (approved CSOP schemes), in paragraph 12(3), for...
620(1) Amend Schedule 5 (enterprise management incentives) as follows.
Finance Act 2003 (c. 14)
621The Finance Act 2003 is amended as follows.
622In section 151(2) (non-resident companies: extent of charge to income...
623Omit section 176 (foster carers).
624(1) Amend Schedule 24 (restriction of deductions for employee benefit...
625In Schedule 34 (policies of life insurance etc: miscellaneous amendments),...
626Omit Schedule 36 (foster carers).
Courts Act 2003 (c. 39)
627In section 101(4)(a) of the Courts Act 2003 (bankruptcy of...
Child Trust Funds Act 2004 (c. 6)
628In section 14(1) of the Child Trust Funds Act 2004...
Finance Act 2004 (c. 12)
629The Finance Act 2004 is amended as follows.
630In section 71(3)(b) (collection and recovery of sums to be...
631Omit section 97 (exemption from income tax for certain interest...
632Omit section 98 (exemption from income tax for certain interest...
633Omit section 99 (permanent establishments and “25% associates”).
634Omit section 100 (interest payments: exemption notices).
635(1) Amend section 101 (payment of royalties without deduction at...
636In section 102 (claim for tax deducted at source from...
637Omit section 103 (special relationships).
638Omit section 104 (anti-avoidance).
639Omit section 106 (transitional provision).
640In section 119(4) (individuals benefited by film relief) for “,...
641In section 123(1) (meaning of “film-related loss”) for “any of...
642In section 127(2) (losses derived from exploiting licence: individuals in...
643(1) Amend section 130 (“A significant amount of time”) as...
644In section 186(1)(b) (scheme investments: income) for “which would” to...
645(1) Amend section 189(2) (meaning of “relevant UK earnings”) as...
646In section 196(2) (relief for employers in respect of contributions...
647In section 197(10)(a) (spreading relief) after “charged under” insert “...
648In section 199(2)(a) (deemed contributions) at the beginning insert “...
649In section 200(a) (no other relief for employers in connection...
650(1) Amend section 246 (restriction of deduction for non-contributory provision)...
651(1) Amend section 249 of FA 2004 (amendments of ITEPA...
652In section 280(1) (abbreviations and general index for Part 4)...
653(1) Amend Schedule 15 (charge to income tax on benefit...
654In paragraph 1(4) and (6) of Schedule 24, for the...
655In paragraph 12 of Schedule 35 (pension schemes etc: minor...
656(1) Amend Schedule 36 (pension schemes etc: transitional provisions and...
Pensions Act 2004 (c. 35)
657The Pensions Act 2004 is amended as follows.
658In Schedule 3 (restricted information held by the Regulator: certain...
659In Schedule 8 (restricted information held by the Board: certain...
SCHEDULE 2Transitionals and savings etc.
Part 1General provisions
Continuity of the law: general
1The repeal of provisions and their enactment in a rewritten...
2Paragraph 1 does not apply to any change made by...
3Any subordinate legislation or other thing which—
4(1) Any reference (express or implied) in this Act, another...
5(1) Any reference (express or implied) in any enactment, instrument...
6(1) Paragraphs 1 to 5 have effect instead of section...
General saving for old transitional provisions and savings
7(1) The repeal by this Act of a transitional or...
General saving for section 9(5) of ICTA
8(1) Sub-paragraph (2) applies if— (a) as a result of...
Partnerships involving companies
9(1) References in this Act to any person are to...
Interpretation
10(1) In this Part— “enactment” includes an enactment comprised in...
Part 2Changes in the law
11(1) This paragraph applies if, in the case of any...
Part 3Trading income
Unpaid remuneration
12(1) This paragraph applies for the purposes of section 36....
Employee benefit contributions
13Sections 38 to 44 do not apply to deductions that...
14(1) In relation to any time before the coming into...
15(1) Subject to sub-paragraph (7), sections 38 to 44 apply...
Car or motor cycle hire
16In relation to expenditure incurred under a contract entered into...
17Section 50 does not apply to expenditure which is incurred—...
Crime-related payments
18Section 55(1)(b) does not apply to expenditure which was incurred...
Tenants under taxed leases
19(1) This paragraph relates to the operation of sections 60...
20(1) This paragraph provides for the application of section 61...
Seconded employees
21(1) This paragraph applies if— (a) the period of account...
Training courses for employees
22(1) This paragraph applies if, without the modifications to section...
23(1) This paragraph applies if— (a) at any time during...
Contributions to urban regeneration companies
24Section 82 does not apply to any contribution which was...
Local enterprise agencies
25To the extent that any function of the Scottish Ministers...
Expenses connected with patents, designs and trade marks
26(1) This paragraph applies if— (a) fees have been incurred,...
Payments to Export Credits Guarantee Department
27(1) This paragraph applies if— (a) a sum is payable,...
Reverse premiums
28(1) Sections 101 and 102 do not apply to a...
Sums recovered under insurance policies etc.
29(1) Section 106 does not apply if—
Meaning of “designated educational establishment”
30To the extent that the power of the National Assembly...
Films and sound recordings
31(1) This paragraph applies to— (a) production expenditure in respect...
32(1) Sections 134 and 135 do not apply in relation...
33Section 137 does not apply in relation to expenditure which...
34Sections 138 and 138A do not apply in relation to...
35(1) Any requirement in Chapter 9 of Part 2 for...
36Sections 139 and 140 do not apply if—
37Sections 139(4) and 141(3) do not apply to any film...
38The requirement in section 140 for the acquisition to be...
Certain telecommunication rights
39Chapter 10 of Part 2 does not apply to an...
40(1) That Chapter also does not apply to an IRU...
Dealers in securities etc: taxation of amounts taken to reserves
41(1) Section 149 does not apply in relation to periods...
Purchase or sale of woodlands
42Section 156 does not apply if the purchase mentioned in...
Ministers of religion
43(1) This paragraph applies if— (a) expenses have been incurred,...
Waste disposal
44If the predecessor ceased to carry on the trade carried...
45If the trade carried on by the trader was started...
46Section 167(2) does not apply for the purposes of sections...
Valuation of trading stock on cessation
47(1) This paragraph applies if— (a) a period of account...
Apportionment of profits or losses to tax years before tax year 2005-06
48(1) This paragraph applies if— (a) a period of account...
Treatment of business start-up payments received in an overlap period
49(1) There is an exception to the rule that, subject...
Profits or losses of a trade, profession or vocation previously chargeable in accordance with section 65(1) of ICTA
50(1) This paragraph applies if— (a) a person carries on...
Profits of mines, quarries and other concerns not chargeable by reference to a basis period
51(1) This paragraph applies if any profits or losses arising...
Overlap profit: pre-April 1994 trades, professions and vocations
52(1) This paragraph applies in the case of a trade,...
53(1) This paragraph applies in the case of income which—...
54The repeal by this Act of paragraphs 2, 6 and...
Averaging profits of farmers and creative artists
55(1) The first tax years which may be the subject...
Adjustment on change of basis
56(1) Chapter 17 of Part 2 applies to a change...
57(1) Subject to sub-paragraph (3), section 232 applies before 6th...
58If— (a) an individual has made an election under paragraph...
59Section 104(4) of ICTA (which, despite its repeal, applies in...
Post-cessation receipts
60(1) Subject to sub-paragraph (4), section 256 applies before 6th...
61Chapter 18 of Part 2 does not apply in relation...
Part 4Property income
Apportionment of profits or losses to tax years before tax year 2005-06
62(1) This paragraph applies if— (a) a period of account...
Lease premiums
63Section 277 does not apply in relation to a lease...
Lease premiums: sums payable instead of rent
64Section 279 does not apply in relation to a lease...
Lease premiums: sums payable for surrender of lease
65Section 280 does not apply in relation to a lease...
Lease premiums: assignments for profit of lease granted at undervalue
66Section 282 does not apply in relation to a lease...
Lease premiums: pre-commencement receipts treated as taxed receipts
67(1) This paragraph relates to the operation of sections 287...
Lease premiums: taking account of reductions in pre-commencement receipts
68(1) This paragraph applies if— (a) in calculating the amount...
Lease premiums: taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA
69(1) Sub-paragraph (2) applies if— (a) in calculating the profits...
Lease premiums: rules for determining effective duration of lease
70(1) In relation to a lease granted after 12th June...
71(1) In relation to a lease granted before 13th June...
Reverse premiums
72(1) Section 311 does not apply to a reverse premium—...
Deductions for expenditure on energy-saving items
73Sections 312 to 314 do not apply to expenditure incurred...
Commercial letting of furnished holiday accommodation
74(1) Subject to sub-paragraph (4), Chapter 6 of Part 3...
75(1) Subject to sub-paragraph (3), section 504A of ICTA (as...
Adjustment on change of basis
76(1) Chapter 7 of Part 3 applies to a change...
Meaning of “mineral royalties”
77The definition of “mineral royalties” in section 341(2) does not...
Part 5Savings and investment income: general
Open-ended investment companies: saving for powers to make provision corresponding to provisions applicable to unit trusts
78(1) Despite the enactment by this Act in the OEIC...
Stock dividends issued in respect of shares issued before 6 April 1975
78A(1) This paragraph applies if— (a) share capital is issued...
Deeply discounted securities issued in accordance with qualifying earn-out right
79Despite the repeal by this Act of section 104(4) of...
Deeply discounted securities: deemed transfers of strips on 5th April
80(1) Despite the repeal by this Act of paragraph 14(4)...
Deeply discounted securities: restriction of profits and losses on strips
81(1) Sections 447 and 448 (restriction of profits and losses...
Deeply discounted securities: saving for charities' losses
82The references in section 454(4) and (5) to trustees include...
Deeply discounted securities: saving for pension trustees' losses
83The references in section 454(4) and (5) to trustees include...
Exclusion of deeply discounted securities from section 711 to 728 of ICTA (accrued income profits)
84Securities only fall within paragraph (f) of section 710(3) of...
Gains from contracts for life insurance etc: foreign policies of life insurance
85(1) This paragraph modifies the application of—
Gains from contracts for life insurance etc: exclusion of pension policies
86(1) Subject to sub-paragraph (4), before 6th April 2006 Chapter...
Gains from contracts for life insurance etc: rights partially assigned
87Section 505 (assignments involving co-ownership) does not have effect in...
88(1) This paragraph applies if a calculation under section 507...
Gains from contracts for life insurance etc: regulations providing for relief where foreign tax chargeable
89Regulations made under section 534 by virtue of paragraph 4...
Gains from contracts for life insurance etc: pure protection group life policies
90(1) For the purposes of Chapter 9 of Part 4,...
Gains from contracts for life insurance etc: assessment of trustees etc
91Despite paragraph 4(1) of this Schedule, the references in section...
Transactions in deposits
92Section 551 (charge to income tax on profits from disposal...
93(1) This paragraph applies if— (a) a right falling within...
Disposals of futures and options involving guaranteed returns: certain pre-6th February 1998 transactions
94(1) A transaction consisting in the running of a future...
Disposals of futures and options involving guaranteed returns: rates of tax for pension trustees
95. . . . . . . . . ....
Part 6Savings and investment income: insurance contracts and policies made before certain dates
Pre-20th March 1968 policies and contracts excluded from Chapter 9 of Part 4
96(1) Chapter 9 of Part 4 does not apply to—...
Pre-27th March 1974 policies and contracts: disapplication of section 500(c)
97Section 500(c) (events treated as part surrenders: loan by insurer)...
Pre-27th March 1974 contracts: disapplication of section 531(3)(c)
98Section 531(3)(c) (certain contracts for life annuities excluded from section...
Pre-10th December 1974 contracts for a life annuity: disapplication of section 484(1)(d)
99Section 484(1)(d) (chargeable events: death in case of contract for...
Pre-14th March 1975 policies and contracts: calculation of gains under section 507
100(1) This paragraph applies to— (a) a policy in respect...
Pre-25th March 1982 replacement policies: disapplication of section 542
101Section 542 (replacement of qualifying policies) does not apply if...
Certain pre-26th June 1982 policies and contracts excluded from Chapter 9 of Part 4
102(1) Chapter 9 of Part 4 does not apply to...
Certain pre-18th November 1983 policies not foreign policies of life insurance
103(1) A policy of life insurance is not a “foreign...
Certain pre-23rd February 1984 policies not foreign capital redemption policies
104A capital redemption policy is not a “foreign capital redemption...
Pre-14th March 1984 policies: disregard of amounts deducted and repaid after tax relief by deduction from premiums abolished
105In the case of a policy issued in respect of...
Certain pre-20th March 1985 policies: application of section 529(1)
106(1) This paragraph makes provision for the application of section...
Pre-14th March 1989 qualifying policies: application of section 485(2)(b) and (3)(b)
107(1) In the case of a policy issued in respect...
Pre-14th March 1989 policies and contracts: application of section 501
108(1) In the case of a policy issued in respect...
Contracts in accounting periods beginning before 1st January 1992: disapplication of sections 530 and 539(3)
109(1) This paragraph applies to a contract for a life...
Certain pre-17th March 1998 policies: application of section 529(1)
110(1) This paragraph makes provision for the application of section...
Certain pre-17th March 1998 policies not foreign policies of life insurance
111(1) A policy of life insurance issued in respect of...
Pre-17th March 1998 policy or contract: UK resident trustees
112(1) In the case of a 1998 Act excluded policy...
Certain pre-23rd March 1999 policies not foreign capital redemption policies
113A capital redemption policy where the contract was made before...
Pre-9th April 2003 policy or contract: UK resident trustees
114(1) In the case of a 2003 Act excluded policy...
Pre-9th April 2003 policy or contract: loans to trustees
115(1) This paragraph makes provision for the application of section...
Pre-9th April 2003 policy: excepted group life policies
116(1) Sub-paragraph (2) applies to a policy if—
Pre-3rd March 2004 policy or contract: calculation of deficiencies
117(1) In the case of a 2004 Act excluded policy...
Pre-1st January 2005 contracts for immediate needs annuities: income tax treated as paid
118(1) A contract for a life annuity made before 1st...
Part 7Savings and investment income: gains from contracts for life insurance etc. (personal portfolio bonds)
Pre-17th March 1998 contract or policy: conditions to be met for contract or policy not to be a personal portfolio bond
119For the purposes of Chapter 9 of Part 4, a...
The date condition
120(1) A policy meets the date condition if it is...
The non-variation condition
121(1) A policy or contract meets the non-variation condition if...
The first selection condition
122A policy or contract meets the first selection condition at...
The second selection condition
123(1) A policy or contract meets the second selection condition...
Policy holders becoming UK resident after 17th March 1998
124(1) This paragraph applies to a policy or contract if—...
Policy holders becoming permanently UK resident after 17th March 1998
125(1) This paragraph applies to a policy or contract if—...
Meaning of “permitted index”
126In this Part of this Schedule “permitted index” means an...
Meaning of “permitted property”
127(1) In this Part of this Schedule “permitted property”, in...
Other definitions
128(1) In this Part of this Schedule “security” has the...
Part 8Miscellaneous income
Intellectual property: contributions to expenditure not made by public bodies nor eligible for tax relief
129Section 604 applies with the omission of subsection (3)(b) in...
Certain telecommunication rights
130Chapter 4 of Part 5 does not apply to an...
131(1) That Chapter also does not apply to an IRU...
Income treated as income of settlor: exception for pension income
132(1) Subject to sub-paragraph (4), section 627 applies before 6th...
Amounts treated as income of settlor: income paid to unmarried minor children of settlor
133(1) In relation to income which— (a) arises under a...
Amounts treated as income of settlor: capital sums paid to settlor by trustees of settlement
134(1) In relation to any case which involves any previous...
Amounts treated as income of settlor: capital sums paid to settlor by body connected with settlement
135In relation to any capital sum paid to the settlor...
Beneficiaries' income from estates in administration: basic amounts
136(1) Sub-paragraph (2) applies if any previous tax year to...
Beneficiaries' income from estates in administration: income treated as bearing income tax
137A sum treated as part of the aggregate income of...
Part 9Exempt income
Ulster savings certificates
138In the case of certificates acquired before 27th July 1981,...
SAYE interest
139Any scheme which was certified as mentioned in section 326(2)(c),...
140A European authorised institution arrangement is not an institutional arrangement...
141(1) Neither— (a) the Treasury specification rules, nor
Venture capital trust dividends: shares acquired before the tax year 2004-05
142In the case of dividends paid in respect of shares...
Purchased life annuity payments: old determinations concerning capital elements
143(1) Any determination in relation to an annuity as to...
Purchased life annuity payments: carry forward of excess capital elements
144(1) This paragraph applies if, in the case of an...
Purchased life annuity payments: penalty for false statements
145(1) Section 723(7) (liability to penalty for false statements and...
Certain annual payments by individuals
146(1) Sections 727 (exemption for certain annual payments by individuals)...
Annual payments for non-taxable consideration
147Section 729 (exemption for payments for non-taxable consideration) applies in...
Periodical payments of personal injury damages etc.
148(1) Subject to sub-paragraphs (4) and (5), sections 731, 733...
Part 10Foster-care relief
149(1) This paragraph applies if— (a) a disposal event is...
Part 11Foreign income: special rules
Relevant foreign income charged on remittance basis: income arising before the tax year 2005-06
150A claim may be made under section 831 (claim for...
Relevant foreign income charged on remittance basis: delayed remittances
151(1) The fact that income arose in a tax year...
Relief for backdated pensions charged on arising basis
152The fact that the earlier year referred to in subsections...
Unremittable income that arose before the tax year 2005-06
153(1) A claim may be made under section 842 (claim...
Part 12Other provisions
Unpaid remuneration: non-trades and non-property businesses
154(1) This paragraph applies for the purposes of section 865....
Employee benefit contributions: non-trades and non-property businesses
155Section 866 does not apply to deductions that would otherwise...
156(1) Subject to sub-paragraph (3), section 866 applies before 6th...
Crime-related payments: non-trades and non-property businesses
157Section 870(2)(b) does not apply to expenditure which was incurred...
Apportionment of miscellaneous profits or losses to tax years before tax year 2005-06
158(1) This paragraph applies if— (a) a relevant period of...
General deduction rules
159Neither— (a) the inclusion of rules in section 582 for...
Section 820 of ICTA
160Section 820 of ICTA (application of Income Tax Acts from...
Amendments of Part 4 of FA 2004 (pension schemes etc.)
161The amendments made by paragraphs 644 to 651 and 655...
SCHEDULE 3Repeals and revocations
SCHEDULE 4Abbreviations and defined expressions
Part 1Abbreviations of Acts
Part 2Index of expressions defined in this Act etc.

C6C1Income Tax (Trading and Other Income) Act 2005

2005 c. 5

An Act to restate, with minor changes, certain enactments relating to income tax on trading income, property income, savings and investment income and certain other income; and for connected purposes.

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C2C5C7C3C4

Annotations:
Modifications etc. (not altering text)
C6

Act modified (with effect as mentioned in reg. 1(2) of the amending S.I.) by The Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964), reg. 96 (as amended (1.9.2009) by S.I. 2009/2036, reg. 31)

C1

Ss. 23A-23H modified (16.11.2017) (with application in accordance with Sch. 12 para. 1(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 12 para. 1(1)

C8

Act applied in part (with modifications) (with effect as mentioned in reg. 1(2) of the amending S.I.) by The Corporation Tax (Taxation of Films) (Transitional Provisions) Regulations 2007 (S.I. 2007/1050), regs. 3-12 (as amended (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 2 para. 131 (with Sch. 2 Pts. 1, 2))

C2

Act modified (1.4.2010) by Income Tax Act 2007 (c. 3), s. 564M(1) (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), Sch. 2 para. 14(1) (with Sch. 9 paras. 1-9, 22))

C5

Act applied (1.4.2010) by Income Tax Act 2007 (c. 3), s. 681BD(3) (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 4 para. 3 (with Sch. 9 paras. 1-9, 22))

C7

Act applied (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), Sch. 9 para. 41(3) (with Sch. 9 paras. 1-9, 22)

C3

Act modified by 2016 c. 24, Sch. 22 para. 13(2A) (as inserted (with effect in accordance with Sch. 18 paras. 2-13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 18 para. 28(7))

C4

Act: power to amend conferred (26.10.2018) by Nuclear Safeguards Act 2018 (c. 15), ss. 2(1)(b), 6(2) (with ss. 2(6), 5(3)); S.I. 2018/1079, reg. 2(c)