Income Tax (Trading and Other Income) Act 2005

1. Introductory Text

2. Part 1 Overview

   1. 1. Overview of Act

   2. 2. Overview of priority rules

3. Part 2 Trading income

   1. Chapter 1 Introduction

      1. 3. Overview of Part 2

      2. 4. Provisions which must be given priority over Part 2

   2. Chapter 2 Income taxed as trade profits

      1. Charge to tax on trade profits

         1. 5. Charge to tax on trade profits

         2. 6. Territorial scope of charge to tax

         3. 7. Income charged

         4. 8. Person liable

      2. Trades and trade profits

         1. 9. Farming and market gardening

         2. 10. Commercial occupation of land other than woodlands

         3. 11. Commercial occupation of woodlands

         4. 12. Profits of mines, quarries and other concerns

         5. 13. Visiting performers

         6. 14. Visiting performers: supplementary

         7. 15. Divers and diving supervisors

         8. 16. Oil extraction and related activities

      3. Starting and ceasing to trade

         1. 17. Effect of becoming or ceasing to be a UK resident

         2. 18. Effect of company starting or ceasing to be within charge to income tax

      4. Trading income and property income

         1. 19. Tied premises

         2. 20. Caravan sites where trade carried on

         3. 21. Surplus business accommodation

         4. 22. Payments for wayleaves

      5. Rent-a-room and foster-care relief

         1. 23. Rent-a-room and foster-care relief

   3. Chapter 3 Trade profits: basic rules

      1. 24. Professions and vocations

      2. 25. Generally accepted accounting practice

      3. 26. Losses calculated on same basis as profits

      4. 27. Receipts and expenses

      5. 28. Items treated under CAA 2001 as receipts and expenses

      6. 29. Interest

      7. 30. Animals kept for trade purposes

      8. 31. Relationship between rules prohibiting and allowing deductions

   4. Chapter 4 Trade profits: rules restricting deductions

      1. Introduction

         1. 32. Professions and vocations

      2. Capital expenditure

         1. 33. Capital expenditure

      3. Wholly and exclusively and losses rules

         1. 34. Expenses not wholly and exclusively for trade and unconnected losses

      4. Bad and doubtful debts

         1. 35. Bad and doubtful debts

      5. Unpaid remuneration

         1. 36. Unpaid remuneration

         2. 37. Unpaid remuneration: supplementary

      6. Employee benefit contributions

         1. 38. Restriction of deductions

         2. 39. Making of “employee benefit contributions”

         3. 40. Provision of qualifying benefits

         4. 41. Timing and amount of certain qualifying benefits

         5. 42. Provision or payment out of employee benefit contributions

         6. 43. Profits calculated before end of 9 month period

         7. 44. Interpretation of sections 38 to 44

      7. Business entertainment and gifts

         1. 45. Business entertainment and gifts: general rule

         2. 46. Business entertainment: exceptions

         3. 47. Business gifts: exceptions

      8. Car or motor cycle hire

         1. 48. Car or motor cycle hire

         2. 49. Car or motor cycle hire: supplementary

         3. 50. Hiring cars (but not motor cycles) with low carbon dioxide emissions

      9. Patent royalties

         1. 51. Patent royalties

      10. Interest payments

          1. 52. Exclusion of double relief for interest

      11. Social security contributions

          1. 53. Social security contributions

      12. Penalties, interest and VAT surcharges

          1. 54. Penalties, interest and VAT surcharges

      13. Crime-related payments

          1. 55. Crime-related payments

   5. Chapter 5 Trade profits: rules allowing deductions

      1. Introduction

         1. 56. Professions and vocations

      2. Pre-trading expenses

         1. 57. Pre-trading expenses

      3. Incidental costs of obtaining finance

         1. 58. Incidental costs of obtaining finance

         2. 59. Convertible loans and loan stock etc.

      4. Tenants under taxed leases

         1. 60. Tenants under taxed leases: introduction

         2. 61. Tenants occupying land for purposes of trade treated as incurring expenses

         3. 62. Limit on deductions if tenant entitled to mineral extraction allowance

         4. 63. Tenants dealing with land as property employed for purposes of trade

         5. 64. Restrictions on section 61 expenses: lease premium receipts

         6. 65. Restrictions on section 61 expenses: lease of part of premises

         7. 66. Corporation tax receipts treated as taxed receipts

         8. 67. Restrictions on section 61 expenses: corporation tax receipts

      5. Renewals

         1. 68. Replacement and alteration of trade tools

      6. Payments for restrictive undertakings

         1. 69. Payments for restrictive undertakings

      7. Seconded employees

         1. 70. Employees seconded to charities and educational establishments

         2. 71. Educational establishments

      8. Contributions to agents' expenses

         1. 72. Payroll deduction schemes: contributions to agents' expenses

      9. Counselling and retraining expenses

         1. 73. Counselling and other outplacement services

         2. 74. Retraining courses

         3. 75. Retraining courses: recovery of tax

      10. Redundancy payments etc.

          1. 76. Redundancy payments and approved contractual payments

          2. 77. Payments in respect of employment wholly in employer’s trade

          3. 78. Payments in respect of employment in more than one capacity

          4. 79. Additional payments

          5. 80. Payments made by the Government

      11. Personal security expenses

          1. 81. Personal security expenses

      12. Contributions to local enterprise organisations or urban regeneration companies

          1. 82. Contributions to local enterprise organisations or urban regeneration companies

          2. 83. Meaning of “local enterprise organisation”

          3. 84. Approval of local enterprise agencies

          4. 85. Supplementary provisions with respect to approvals

          5. 86. Meaning of “urban regeneration company”

      13. Scientific research

          1. 87. Expenses of research and development

          2. 88. Payments to research associations, universities etc.

      14. Expenses connected with patents, designs and trade marks

          1. 89. Expenses connected with patents

          2. 90. Expenses connected with designs or trade marks

      15. Export Credits Guarantee Department

          1. 91. Payments to Export Credits Guarantee Department

      16. Expenses connected with foreign trades

          1. 92. Expenses connected with foreign trades

          2. 93. Allocation of expenses

          3. 94. Family expenses

   6. Chapter 6 Trade profits: receipts

      1. Introduction

         1. 95. Professions and vocations

      2. Capital receipts

         1. 96. Capital receipts

      3. Debts released

         1. 97. Debts incurred and later released

      4. Amounts received following earlier cessation

         1. 98. Acquisition of trade: receipts from transferor’s trade

      5. Reverse premiums

         1. 99. Reverse premiums

         2. 100. Excluded cases

         3. 101. Tax treatment of reverse premiums

         4. 102. Arrangements not at arm’s length

         5. 103. Connected persons and property arrangements

      6. Assets of mutual concerns

         1. 104. Distribution of assets of mutual concerns

      7. Industrial development grants

         1. 105. Industrial development grants

      8. Proceeds of insurance etc.

         1. 106. Sums recovered under insurance policies etc.

   7. Chapter 7 Trade profits: gifts to charities etc.

      1. 107. Professions and vocations

      2. 108. Gifts of trading stock to charities etc.

      3. 109. Receipt by donor or connected person of benefit attributable to certain gifts

      4. 110. Meaning of “designated educational establishment”

   8. Chapter 8 Trade profits: herd basis rules

      1. Introduction

         1. 111. Election for application of herd basis rules

         2. 112. Meaning of “animal”, “herd”, “production herd” etc.

         3. 113. Other interpretative provisions

      2. The herd basis rules

         1. 114. Initial cost of herd and value of herd

         2. 115. Addition of animals to herd

         3. 116. Replacement of animals in herd

         4. 117. Amount of receipt if old animal slaughtered under disease control order

         5. 118. Sale of animals from herd

         6. 119. Sale of whole or substantial part of herd

         7. 120. Acquisition of new herd begun within 5 years of sale

         8. 121. Section 120: sale for reasons outside farmer’s control

         9. 122. Replacement of part sold begun within 5 years of sale

         10. 123. Section 122: sale for reasons outside farmer’s control

      3. Elections

         1. 124. Herd basis elections

         2. 125. Five year gap in which no production herd kept

         3. 126. Slaughter under disease control order

      4. Preventing abuse of the herd basis rules

         1. 127. Preventing abuse of the herd basis rules

      5. Supplementary

         1. 128. Information if election made

         2. 129. Further assessment etc. if herd basis rules apply

   9. Chapter 9 Trade profits: films and sound recordings

      1. Introduction

         1. 130. Expenditure to which this Chapter applies

         2. 131. Meaning of “film” and related expressions

         3. 132. Meaning of “original master version” and “certified master version”

         4. 133. Meaning of “relevant period”

      2. Expenditure treated as revenue in nature

         1. 134. Expenditure treated as revenue in nature

      3. Films and sound recordings: normal rules for allocating expenditure

         1. 135. Films and sound recordings: production or acquisition expenditure

      4. Certified master versions: special rules for allocating expenditure

         1. 136. Application of provisions about certified master versions

         2. 137. Certified master versions: preliminary expenditure

         3. 138. Certified master versions: production or acquisition expenditure

      5. Certified master versions: limited-budget films

         1. 139. Certified master versions: production expenditure on limited-budget films

         2. 140. Certified master versions: acquisition expenditure on limited-budget films

         3. 141. “Total production expenditure in respect of the original master version”

         4. 142. When expenditure is incurred

      6. Election for sections 134 to 140 not to apply

         1. 143. Election for sections 134 to 140 not to apply

      7. Supplementary

         1. 144. Meaning of “genuinely intended for theatrical release”

   10. Chapter 10 Trade profits: certain telecommunication rights

       1. 145. Professions and vocations

       2. 146. Meaning of “relevant telecommunication right”

       3. 147. Expenditure and receipts treated as revenue in nature

       4. 148. Credits or debits arising from revaluation

   11. Chapter 11 Trade profits: other specific trades

       1. Dealers in securities etc.

          1. 149. Taxation of amounts taken to reserves

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

          3. 151. Exchanges of gilts for gilt strips

          4. 152. Consolidation of gilt strips

          5. 153. Meaning of “gilt-edged security” and “strip”

          6. 154. Regulations for determining market value of securities or strips

       2. Persons authorised for purposes of FISMA 2000

          1. 155. Levies and repayments under FISMA 2000

       3. Dealers in land etc.

          1. 156. Purchase or sale of woodlands

          2. 157. Relief in respect of mineral royalties

          3. 158. Lease premiums etc: reduction of receipts

       4. Ministers of religion

          1. 159. Ministers of religion

       5. Barristers and advocates

          1. 160. Alternative basis of calculation in early years of practice

       6. Mineral exploration and access

          1. 161. Mineral exploration and access

       7. Persons liable to pool betting duty

          1. 162. Payments by persons liable to pool betting duty

       8. Intermediaries treated as making employment payments

          1. 163. Deduction for deemed employment payment

          2. 164. Special rules for partnerships

       9. Waste disposal

          1. 165. Deduction for site preparation expenditure

          2. 166. Allocation of site preparation expenditure

          3. 167. Site preparation expenditure: supplementary

          4. 168. Site restoration payments

       10. Cemeteries and crematoria

           1. 169. Cemeteries and crematoria: introduction

           2. 170. Deduction for capital expenditure

           3. 171. Allocation of ancillary capital expenditure

           4. 172. Exclusion of expenditure met by subsidies

   12. Chapter 12 Trade profits: valuation of stock and work in progress

       1. Valuation of trading stock

          1. 173. Valuation of trading stock on cessation

          2. 174. Meaning of “trading stock”

          3. 175. Basis of valuation of trading stock

          4. 176. Sale basis of valuation: sale to unconnected person

          5. 177. Sale basis of valuation: sale to connected person

          6. 178. Sale basis of valuation: election by connected persons

          7. 179. Connected persons

          8. 180. Cost to buyer of stock valued on sale basis of valuation

          9. 181. Meaning of “sale” and related expressions

       2. Valuation of work in progress

          1. 182. Valuation of work in progress on cessation

          2. 183. Meaning of “work in progress”

          3. 184. Basis of valuation of work in progress

          4. 185. Election for valuation at cost

       3. Supplementary

          1. 186. Determination of questions by Commissioners

   13. Chapter 13 Deductions from profits: unremittable amounts

       1. 187. Professions and vocations

       2. 188. Application of Chapter

       3. 189. Relief for unremittable amounts

       4. 190. Restrictions on relief

       5. 191. Withdrawal of relief

   14. Chapter 14 Disposal and acquisition of know-how

       1. 192. Meaning of “know-how” etc.

       2. 193. Disposal of know-how if trade continues to be carried on

       3. 194. Disposal of know-how as part of disposal of all or part of a trade

       4. 195. Seller controlled by buyer etc.

   15. Chapter 15 Basis periods

       1. Introduction

          1. 196. Professions and vocations

       2. Accounting date

          1. 197. Meaning of “accounting date”

       3. The normal rules

          1. 198. General rule

          2. 199. First tax year

          3. 200. Second tax year

          4. 201. Tax year in which there is no accounting date

          5. 202. Final tax year

       4. Apportionment of profits

          1. 203. Apportionment etc. of profits to basis periods

       5. Overlap profits and losses

          1. 204. Meaning of “overlap period” and “overlap profit”

          2. 205. Deduction for overlap profit in final tax year

          3. 206. Restriction on bringing losses into account twice

          4. 207. Treatment of business start-up payments received in an overlap period

       6. Rules where first accounting date shortly before end of tax year

          1. 208. When the late accounting date rules apply

          2. 209. Rule if there is an accounting date

          3. 210. Rules if there is no accounting date

       7. Slight variations in accounting date

          1. 211. Treating middle date as accounting date

          2. 212. Consequence of treating middle date as accounting date

          3. 213. Circumstances in which middle date not treated as accounting date

       8. Special rules if accounting date changes

          1. 214. When a change of accounting date occurs

          2. 215. Change of accounting date in third tax year

          3. 216. Change of accounting date in later tax year

          4. 217. Conditions for basis period to end with new accounting date

          5. 218. Commercial reasons for change of accounting date

          6. 219. The year after an ineffective change of accounting date

          7. 220. Deduction for overlap profit on change of accounting date

   16. Chapter 16 Averaging profits of farmers and creative artists

       1. 221. Claim for averaging of fluctuating profits

       2. 222. Circumstances in which claim may be made

       3. 223. Adjustment of profits

       4. 224. Effect of adjustment

       5. 225. Effect of later adjustment of profits

   17. Chapter 17 Adjustment income

       1. Introduction

          1. 226. Professions and vocations

       2. Adjustment on change of basis

          1. 227. Application of Chapter

          2. 228. Adjustment income and adjustment expense

          3. 229. Income charged

          4. 230. Person liable

          5. 231. Calculation of the adjustment

       3. Treatment of adjustment income and adjustment expense

          1. 232. Treatment of adjustment income

          2. 233. Treatment of adjustment expense

       4. Expenses previously brought into account

          1. 234. No adjustment for certain expenses previously brought into account

       5. Realising or writing off assets

          1. 235. Cases where adjustment not required until assets realised or written off

       6. Mark to market

          1. 236. Change from realisation basis to mark to market

          2. 237. Election for spreading if section 236 applies

       7. Spreading of adjustment income: barristers and advocates

          1. 238. Spreading on ending of exemption for barristers and advocates

          2. 239. Election to accelerate charge under section 238

       8. Supplementary

          1. 240. Liability of personal representatives if person liable dies

   18. Chapter 18 Post-cessation receipts

       1. Introduction

          1. 241. Professions and vocations

       2. Charge to tax on post-cessation receipts

          1. 242. Charge to tax on post-cessation receipts

          2. 243. Extent of charge to tax

          3. 244. Income charged

          4. 245. Person liable

       3. Meaning of “post-cessation receipts”

          1. 246. Basic meaning of “post-cessation receipt”

          2. 247. Other rules about what counts as post-cessation receipts

       4. Sums treated as post-cessation receipts

          1. 248. Debts paid after cessation

          2. 249. Debts released after cessation

          3. 250. Receipts relating to post-cessation expenditure

          4. 251. Transfer of rights if transferee does not carry on trade

       5. Sums that are not post-cessation receipts

          1. 252. Transfer of trading stock or work in progress

          2. 253. Lump sums paid to personal representatives for copyright etc.

       6. Deductions

          1. 254. Allowable deductions

          2. 255. Further rules about allowable deductions

       7. Reliefs

          1. 256. Treatment of post-cessation receipts

          2. 257. Election to carry back

   19. Chapter 19 Supplementary

       1. 258. Changes in trustees and personal representatives

       2. 259. Meaning of “statutory insolvency arrangement”

4. Part 3 Property income

   1. Chapter 1 Introduction

      1. 260. Overview of Part 3

      2. 261. Provisions which must be given priority over Part 3

      3. 262. Priority between Chapters within Part 3

   2. Chapter 2 Property businesses

      1. Introduction

         1. 263. Introduction

      2. Basic meaning of UK and overseas property business

         1. 264. UK property business

         2. 265. Overseas property business

      3. Generating income from land

         1. 266. Meaning of “generating income from land”

         2. 267. Activities not for generating income from land

   3. Chapter 3 Profits of property businesses: basic rules

      1. Charge to tax on profits of a property business

         1. 268. Charge to tax on profits of a property business

         2. 269. Territorial scope of charge to tax

         3. 270. Income charged

         4. 271. Person liable

      2. Calculation of profits

         1. 272. Profits of a property business: application of trading income rules

         2. 273. Amounts not brought into account as part of a property business

         3. 274. Relationship between rules prohibiting and allowing deductions

      3. Apportionment of profits

         1. 275. Apportionment etc. of profits to tax year

   4. Chapter 4 Profits of property businesses: lease premiums etc.

      1. Introduction

         1. 276. Introduction

      2. Amounts treated as receipts: leases

         1. 277. Lease premiums

         2. 278. Amount treated as lease premium where work required

         3. 279. Sums payable instead of rent

         4. 280. Sums payable for surrender of lease

         5. 281. Sums payable for variation or waiver of term of lease

         6. 282. Assignments for profit of lease granted at undervalue

         7. 283. Provisions supplementary to section 282

      3. Other amounts treated as receipts

         1. 284. Sales with right to reconveyance

         2. 285. Sale and leaseback transactions

         3. 286. Provisions supplementary to sections 284 and 285

      4. Additional calculation rule for reducing certain receipts

         1. 287. Circumstances in which additional calculation rule applies

         2. 288. The additional calculation rule

         3. 289. The additional calculation rule: special cases

         4. 290. Meaning of “unused amount” and “unreduced amount”

      5. Deductions in relation to certain receipts

         1. 291. Deductions for expenses under section 292

         2. 292. Tenants under taxed leases treated as incurring expenses

         3. 293. Restrictions on section 292 expenses: the additional calculation rule

         4. 294. Restrictions on section 292 expenses: lease of part of premises

      6. Limit on effect of additional calculation rule and deductions

         1. 295. Limit on reductions and deductions

      7. Relationship with ICTA

         1. 296. Corporation tax receipts treated as taxed receipts

         2. 297. Taking account of reductions in corporation tax receipts

         3. 298. Taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA

      8. Certain administrative provisions

         1. 299. Payment of tax by instalments

         2. 300. Statement of accuracy for purposes of section 282

         3. 301. Claim for repayment of tax payable by virtue of section 284

         4. 302. Claim for repayment of tax payable by virtue of section 285

      9. Effective duration of lease

         1. 303. Rules for determining effective duration of lease

         2. 304. Applying the rules in section 303

         3. 305. Information about effective duration of lease

      10. Other interpretative provisions

          1. 306. Provisions about premiums

          2. 307. Interpretation

   5. Chapter 5 Profits of property businesses: other rules about receipts and deductions

      1. Furnished accommodation: receipts and deductions

         1. 308. Furnished lettings

         2. 309. Rent-a-room relief

      2. Treatment of receipts on acquisition of business

         1. 310. Acquisition of business: receipts from transferor’s UK property business

      3. Reverse premiums as receipts

         1. 311. Reverse premiums

      4. Deductions for expenditure on energy-saving items

         1. 312. Deduction for expenditure on energy-saving items

         2. 313. Restrictions on relief

         3. 314. Regulations

      5. Deductions for expenditure on sea walls

         1. 315. Deduction for expenditure on sea walls

         2. 316. Transfer of interest in premises

         3. 317. Ending of lease of premises

         4. 318. Transfer involving company within the charge to corporation tax

      6. Mineral royalties

         1. 319. Relief in respect of mineral royalties

      7. Apportionments on sale of land

         1. 320. Nature of item apportioned on sale of estate or interest in land

      8. Mutual business

         1. 321. Mutual business

   6. Chapter 6 Commercial letting of furnished holiday accommodation

      1. Introduction

         1. 322. Introduction

      2. Definition

         1. 323. Meaning of “commercial letting of furnished holiday accommodation”

         2. 324. Meaning of “relevant period” in sections 325 and 326

         3. 325. Meaning of “qualifying holiday accommodation”

         4. 326. Under-used holiday accommodation: averaging elections

      3. Separate profit calculations

         1. 327. Capital allowances and loss relief

         2. 328. Earned income and relevant UK earnings for pension purposes

   7. Chapter 7 Adjustment income

      1. Adjustment on change of basis

         1. 329. Application of Chapter

         2. 330. Adjustment income and adjustment expense

         3. 331. Income charged

         4. 332. Person liable

      2. Treatment of adjustment income and adjustment expense

         1. 333. Treatment of adjustment income

         2. 334. Treatment of adjustment expense

   8. Chapter 8 Rent receivable in connection with a UK section 12(4) concern

      1. Charge to tax on rent receivable in connection with a UK section 12(4) concern

         1. 335. Charge to tax on rent receivable in connection with a UK section 12(4) concern

         2. 336. Meaning of “rent receivable in connection with a UK section 12(4) concern”

         3. 337. Income charged

         4. 338. Person liable

      2. Management expenses of owner of mineral rights

         1. 339. Deduction for management expenses of owner of mineral rights

      3. Mineral royalties

         1. 340. Relief in respect of mineral royalties

         2. 341. Meaning of “mineral lease or agreement” and “mineral royalties”

         3. 342. Extended meaning of “mineral royalties” etc. in Northern Ireland

         4. 343. Power of Board to determine what counts as “mineral royalties”

   9. Chapter 9 Rent receivable for UK electric-line wayleaves

      1. Charge to tax on rent receivable for UK electric-line wayleaves

         1. 344. Charge to tax on rent receivable for a UK electric-line wayleave

         2. 345. Meaning of “rent receivable for a UK electric-line wayleave”

         3. 346. Extent of charge to tax

         4. 347. Income charged

         5. 348. Person liable

   10. Chapter 10 Post-cessation receipts

       1. Charge to tax on post-cessation receipts

          1. 349. Charge to tax on post-cessation receipts

          2. 350. Extent of charge to tax

          3. 351. Income charged

          4. 352. Person liable

       2. Meaning of “post-cessation receipts”

          1. 353. Basic meaning of “post-cessation receipt”

          2. 354. Other rules about what counts as a “post-cessation receipt”

          3. 355. Transfer of rights if transferee does not carry on UK property business

       3. Supplementary

          1. 356. Application to Schedule A businesses

   11. Chapter 11 Overseas property income

       1. 357. Charge to tax on overseas property income

       2. 358. Meaning of “overseas property income”

       3. 359. Income charged

       4. 360. Person liable

   12. Chapter 12 Supplementary

       1. 361. Changes in trustees and personal representatives

       2. 362. Effect of company starting or ceasing to be within charge to income tax

       3. 363. Overseas property businesses and overseas land: adaptation of rules

       4. 364. Meaning of “lease” and “premises”

5. Part 4 Savings and investment income

   1. Chapter 1 Introduction

      1. 365. Overview of Part 4

      2. 366. Provisions which must be given priority over Part 4

      3. 367. Priority between Chapters within Part 4

      4. 368. Territorial scope of Part 4 charges

   2. Chapter 2 Interest

      1. Charge to tax on interest

         1. 369. Charge to tax on interest

         2. 370. Income charged

         3. 371. Person liable

      2. Other income taxed as interest

         1. 372. Building society dividends

         2. 373. Open-ended investment company interest distributions

         3. 374. Date when interest payments under section 373 made

         4. 375. Interpretation of sections 373 and 374

         5. 376. Authorised unit trust interest distributions

         6. 377. Date when interest payments under section 376 made

         7. 378. Interpretation of sections 376 and 377

         8. 379. Industrial and provident society payments

         9. 380. Funding bonds

         10. 381. Discounts

   3. Chapter 3 Dividends etc. from UK resident companies etc.

      1. Introduction

         1. 382. Contents of Chapter

      2. Charge to tax on dividends and other distributions

         1. 383. Charge to tax on dividends and other distributions

         2. 384. Income charged

         3. 385. Person liable

      3. Amounts treated as dividends

         1. 386. Open-ended investment company dividend distributions

         2. 387. Date when dividends paid under section 386

         3. 388. Interpretation of sections 386 and 387

         4. 389. Authorised unit trust dividend distributions

         5. 390. Date when dividends paid under section 389

         6. 391. Interpretation of sections 389 and 390

      4. Shares in approved share incentive plans (“SIPs”)

         1. 392. SIP shares: introduction

         2. 393. Later charge where cash dividends retained in SIPs are paid over

         3. 394. Distribution when dividend shares cease to be subject to SIP

         4. 395. Reduction in tax due in cases within section 394

         5. 396. Interpretation of sections 392 to 395

      5. Tax credits and payment and deduction of tax

         1. 397. Tax credits for qualifying distributions: UK residents and eligible non-UK residents

         2. 398. Increase in amount or value of dividends where tax credit available

         3. 399. Qualifying distributions received by persons not entitled to tax credits

         4. 400. Non-qualifying distributions

         5. 401. Relief: qualifying distribution after linked non-qualifying distribution

   4. Chapter 4 Dividends from non-UK resident companies

      1. Charge to tax on dividends from non-UK resident companies

         1. 402. Charge to tax on dividends from non-UK resident companies

         2. 403. Income charged

         3. 404. Person liable

      2. Shares in approved share incentive plans (“SIPs”)

         1. 405. SIP shares: introduction

         2. 406. Later charge where cash dividends retained in SIPs are paid over

         3. 407. Dividend payment when dividend shares cease to be subject to SIP

         4. 408. Reduction in tax due in cases within section 407

   5. Chapter 5 Stock dividends from UK resident companies

      1. 409. Charge to tax on stock dividend income

      2. 410. When stock dividend income arises

      3. 411. Income charged

      4. 412. Cash equivalent of share capital

      5. 413. Person liable

      6. 414. Income tax treated as paid

   6. Chapter 6 Release of loan to participator in close company

      1. 415. Charge to tax under Chapter 6

      2. 416. Income charged

      3. 417. Person liable

      4. 418. Relief where borrowers liable as settlors

      5. 419. Loans and advances to persons who die

      6. 420. Loans and advances to trustees of trusts that have ended

      7. 421. Income tax treated as paid

   7. Chapter 7 Purchased life annuity payments

      1. 422. Charge to tax on purchased life annuity payments

      2. 423. Meaning of “purchased life annuity”

      3. 424. Income charged

      4. 425. Person liable

      5. 426. Annuity payments received after deduction of tax

   8. Chapter 8 Profits from deeply discounted securities

      1. Charge to tax under Chapter 8

         1. 427. Charge to tax on profits from deeply discounted securities

         2. 428. Income charged

         3. 429. Person liable

      2. Deeply discounted securities

         1. 430. Meaning of “deeply discounted security”

         2. 431. Excluded occasions of redemption

         3. 432. Securities which are not deeply discounted securities

         4. 433. Meaning of “excluded indexed security”

         5. 434. Securities issued in separate tranches: preliminary

         6. 435. Securities issued in separate tranches: basic rule

         7. 436. Deeply discounted securities issued in separate tranches: nominal value rule

      3. Disposals

         1. 437. Transactions which are disposals

         2. 438. Timing of transfers and acquisitions

      4. Calculating profits

         1. 439. Calculating the profit from disposals

         2. 440. Market value disposals

         3. 441. Market value acquisitions

         4. 442. Securities issued in accordance with qualifying earn-out right

      5. Special rules for strips of government securities

         1. 443. Application of this Chapter to strips of government securities

         2. 444. Meaning of “strip” in Chapter 8

         3. 445. Strips of government securities: acquisitions and disposals

         4. 446. Strips of government securities: relief for losses

         5. 447. Restriction of profits on strips by reference to original acquisition cost

         6. 448. Restriction of losses on strips by reference to original acquisition cost

         7. 449. Strips of government securities: manipulation of acquisition, transfer or redemption payments

         8. 450. Market value of strips etc.

         9. 451. Market value of strips etc. quoted in foreign stock exchange lists

         10. 452. Power to modify this Chapter for strips

      6. Special rules for listed securities held since 26th March 2003

         1. 453. Application of sections 454 to 456

         2. 454. Listed securities held since 26th March 2003: relief for losses

         3. 455. Listed securities held since 26th March 2003: calculating the profit or loss on disposals

         4. 456. Securities issued to connected persons etc. at excessive price: subsequent transfers to connected persons

      7. Trustees

         1. 457. Trustees

         2. 458. Non-UK resident trustees

      8. Miscellaneous and supplementary

         1. 459. Transfer of assets abroad

         2. 460. Minor definitions

   9. Chapter 9 Gains from contracts for life insurance etc.

      1. Charge to tax under Chapter 9

         1. 461. Charge to tax under Chapter 9

         2. 462. When gains arise from policies and contracts

         3. 463. Income charged

      2. Person liable etc.

         1. 464. Person liable for tax: introduction

         2. 465. Person liable: individuals

         3. 466. Person liable: personal representatives

         4. 467. Person liable: UK resident trustees

         5. 468. Non-UK resident trustees and foreign institutions

         6. 469. Two or more persons interested in policy or contract

         7. 470. Interests in rights under a policy or contract for section 469

         8. 471. Determination of shares etc.

         9. 472. Trusts created by two or more persons

      3. Policies and contracts to which Chapter 9 applies

         1. 473. Policies and contracts to which Chapter 9 applies: general

         2. 474. Special rules: qualifying policies

         3. 475. Special rules: personal portfolio bonds

         4. 476. Special rules: foreign policies

         5. 477. Special rules: certain older policies and contracts

         6. 478. Exclusion of mortgage repayment policies

         7. 479. Exclusion of pension policies

         8. 480. Exclusion of excepted group life policies

         9. 481. Excepted group life policies: conditions about benefits

         10. 482. Excepted group life policies: conditions about persons intended to benefit

         11. 483. Exclusion of credit union group life policies

      4. When chargeable events occur: general

         1. 484. When chargeable events occur

         2. 485. Disregard of certain events in relation to qualifying policies

         3. 486. Exclusion of maturity of capital redemption policies in certain circumstances

         4. 487. Disregard of certain assignments

         5. 488. Disregard of some events after alterations of life insurance policy terms

         6. 489. Conditions applicable to alterations of life insurance policy terms

         7. 490. Last payment under guaranteed income bonds etc. treated as total surrender

      5. Calculating gains: general

         1. 491. Calculating gains: general rules

         2. 492. The total benefit value of a policy or contract

         3. 493. The value of a policy or contract

         4. 494. The total allowable deductions for a policy or contract

         5. 495. Disregard of certain amounts in calculating gains under section 491

         6. 496. Modification of section 494: qualifying endowment policies held as security for company debts

         7. 497. Disregard of trivial inducement benefits

      6. Part surrenders and assignments: periodic calculations and excess events

         1. 498. Requirement for periodic calculations in part surrender or assignment cases

         2. 499. Meaning of “insurance year” and “final insurance year”

         3. 500. Events treated as part surrenders

         4. 501. Part surrenders: loans

         5. 502. Exception from section 501 for loans to buy life annuities

         6. 503. Exception from section 501 for certain loans under qualifying policies

         7. 504. Part surrenders: payments under guaranteed income bonds etc.

         8. 505. Assignments etc. involving co-ownership

         9. 506. Assignments occurring when there is a co-ownership transaction

         10. 507. Method for making periodic calculations under section 498

         11. 508. The value of rights partially surrendered or assigned

         12. 509. Chargeable events in certain cases where periodic calculations show gains

      7. Transaction-related calculations and part surrender or assignment events

         1. 510. Requirement for transaction-related calculations in certain part surrender and assignment cases

         2. 511. Method for making transaction-related calculations under section 510

         3. 512. Available premium left for relevant transaction

         4. 513. Special rules for part surrenders and assignments in final insurance year

         5. 514. Chargeable events where transaction-related calculations show gains

      8. Personal portfolio bonds

         1. 515. Requirement for annual calculations in relation to personal portfolio bonds 9

         2. 516. Meaning of “personal portfolio bond”

         3. 517. Policies and contracts which are not personal portfolio bonds

         4. 518. The index categories

         5. 519. The index selection conditions

         6. 520. The property categories

         7. 521. The property selection conditions

         8. 522. Method for making annual calculations under section 515

         9. 523. The total amount of personal portfolio bond excesses

         10. 524. The total amount of part surrender gains

         11. 525. Chargeable events where annual calculations show gains

         12. 526. Power to make regulations about personal portfolio bonds

      9. Reductions from gains

         1. 527. Reduction for sums taken into account otherwise than under Chapter 9

         2. 528. Reduction in amount charged: non-UK resident policy holders

         3. 529. Exceptions to section 528

      10. Income tax treated as paid and reliefs

          1. 530. Income tax treated as paid etc.

          2. 531. Exceptions to section 530

          3. 532. Relief for policies and contracts with European Economic Area insurers

          4. 533. Meaning of “comparable EEA tax charge”

          5. 534. Regulations providing for relief in other cases where foreign tax chargeable

          6. 535. Top slicing relief

          7. 536. Top slicing relieved liability: one chargeable event

          8. 537. Top slicing relieved liability: two or more chargeable events

          9. 538. Recovery of tax from trustees

      11. Deficiencies

          1. 539. Relief for deficiencies

          2. 540. When deficiencies arise: events following calculation events

          3. 541. Calculation of deficiencies

      12. Supplementary

          1. 542. Replacement of qualifying policies

          2. 543. Issue time of qualifying policy replacing foreign policy

          3. 544. Application of Chapter to policies and contracts in which companies interested

          4. 545. Minor definitions

          5. 546. Table of provisions subject to special rules for older policies and contracts

   10. Chapter 10 Distributions from unauthorised unit trusts

       1. 547. Charge to tax under Chapter 10

       2. 548. Income charged

       3. 549. Person liable

       4. 550. Income tax treated as paid

   11. Chapter 11 Transactions in deposits

       1. 551. Charge to tax on profits from disposal of deposit rights

       2. 552. Meaning of “deposit rights”

       3. 553. Income charged

       4. 554. Person liable

   12. Chapter 12 Disposals of futures and options involving guaranteed returns

       1. Charge to tax under Chapter 12

          1. 555. Charge to tax under Chapter 12

          2. 556. Income charged

          3. 557. Person liable

          4. 558. Meaning of “future”, “option” etc.

       2. When disposals involve guaranteed returns

          1. 559. When disposals involve guaranteed returns

          2. 560. Production of guaranteed returns

          3. 561. The return from one or more disposals

       3. When disposals of futures and options occur

          1. 562. When disposals of futures and options occur: general

          2. 563. Timing of certain grants of options where related disposals occur later

          3. 564. Deemed disposal where futures run to delivery or options are exercised

          4. 565. Interpretation of section 564

          5. 566. When transactions are related

       4. Losses

          1. 567. Losses

       5. Trustees

          1. 568. Special rule for certain income of trustees

       6. Transfer of assets abroad

          1. 569. Anti-avoidance: transfer of assets abroad

   13. Chapter 13 Sales of foreign dividend coupons

       1. 570. Charge to tax under Chapter 13

       2. 571. Meaning of “foreign holdings” etc.

       3. 572. Income charged

       4. 573. Person liable

6. Part 5 Miscellaneous income

   1. Chapter 1 Introduction

      1. 574. Overview of Part 5

      2. 575. Provisions which must be given priority over Part 5

      3. 576. Priority between Chapters within Part 5

      4. 577. Territorial scope of Part 5 charges

   2. Chapter 2 Receipts from intellectual property

      1. Introduction

         1. 578. Contents of Chapter

      2. Charge to tax on non-trading income from intellectual property

         1. 579. Charge to tax on royalties and other income from intellectual property

         2. 580. Income charged under section 579

         3. 581. Person liable for tax under section 579

         4. 582. Deductions in calculating certain income charged under section 579

      3. Disposals of know-how

         1. 583. Charge to tax on income from disposals of know-how

         2. 584. Exceptions to charge under section 583

         3. 585. Income charged under section 583

         4. 586. Person liable for tax under section 583

      4. Sales of patent rights

         1. 587. Charge to tax on income from sales of patent rights

         2. 588. Income charged under section 587

         3. 589. Person liable for tax under section 587

         4. 590. UK resident sellers: spreading rules

         5. 591. Non-UK resident sellers: election for spreading

         6. 592. Further provision about elections for spreading: instalments

         7. 593. Death of seller

         8. 594. Winding up of a body corporate

         9. 595. Deduction of tax from payments to non-UK residents

         10. 596. Adjustments where tax has been deducted

         11. 597. Licences connected with patents

         12. 598. Rights to acquire future patent rights

         13. 599. Sums paid for Crown use etc. treated as paid under licence

      5. Relief from income tax on patent income

         1. 600. Relief for expenses: patent income

         2. 601. How relief is given under section 600

      6. Payments received after deduction of tax

         1. 602. Payments received after deduction of tax

      7. Supplementary

         1. 603. Contributions to expenditure

         2. 604. Contributions not made by public bodies nor eligible for tax relief

         3. 605. Exchanges

         4. 606. Apportionment where property sold together

         5. 607. Questions about apportionments affecting two or more persons

         6. 608. Meaning of “capital sums” etc.

   3. Chapter 3 Films and sound recordings: non-trade businesses

      1. 609. Charge to tax on films and sound recordings businesses

      2. 610. Income charged

      3. 611. Person liable

      4. 612. Calculation of income

      5. 613. Application of trading income rules to non-trade businesses

   4. Chapter 4 Certain telecommunication rights: non-trading income

      1. 614. Charge to tax on certain telecommunication rights of a non-trader

      2. 615. Income charged

      3. 616. Person liable

      4. 617. Deductions in calculating certain income charged

      5. 618. Payments received after deduction of tax

   5. Chapter 5 Settlements: amounts treated as income of settlor

      1. Charge to tax under Chapter 5

         1. 619. Charge to tax under Chapter 5

         2. 620. Meaning of “settlement” and “settlor”

      2. Income charged and person liable

         1. 621. Income charged

         2. 622. Person liable

      3. Rules for calculating income

         1. 623. Calculation of income

      4. Income treated as income of settlor: retained interests

         1. 624. Income where settlor retains an interest

         2. 625. Settlor’s retained interest

         3. 626. Exception for outright gifts between spouses

         4. 627. Exceptions for certain types of income

         5. 628. Exception for gifts to charities

      5. Income treated as income of settlor: unmarried children

         1. 629. Income paid to unmarried minor children of settlor

         2. 630. Exception for gifts to charities

         3. 631. Retained and accumulated income

         4. 632. Offshore income gains

      6. Capital sums treated as income of settlor: trustees' payments

         1. 633. Capital sums paid to settlor by trustees of settlement

         2. 634. Meaning of “capital sum” and “sums paid to settlor”

         3. 635. Amount of available income

         4. 636. Calculation of undistributed income

         5. 637. Qualifications to section 636

      7. Trustees' payments: further provisions

         1. 638. Capital sums paid by way of loan or repayment of loan

         2. 639. Loans to participators in close companies

         3. 640. Grossing-up of deemed income

      8. Capital sums treated as income of settlor: connected bodies

         1. 641. Capital sums paid to settlor by body connected with settlement

         2. 642. Exception for certain loans or repayments of loans

         3. 643. Interpretation of sections 641 and 642

      9. Settlements by two or more settlors

         1. 644. Application to settlements by two or more settlors

         2. 645. Property or income originating from settlor

      10. Other supplementary provisions

          1. 646. Adjustments between settlor and trustees etc.

          2. 647. Power to obtain information

          3. 648. Income arising under a settlement

   6. Chapter 6 Beneficiaries' income from estates in administration

      1. Charge to tax on estate income

         1. 649. Charge to tax on estate income

         2. 650. Absolute, limited and discretionary interests

         3. 651. Meaning of “UK estate” and “foreign estate”

      2. Types of estate income

         1. 652. Estate income: absolute interests in residue

         2. 653. Meaning of “the administration period” and “the final tax year”

         3. 654. Estate income: limited interests in residue

         4. 655. Estate income: discretionary interests in residue

      3. Income charged and person liable

         1. 656. Income charged: UK estates

         2. 657. Income charged: foreign estates

         3. 658. Special rules for foreign income

         4. 659. Person liable

      4. Basic amount of estate income: general calculation rules

         1. 660. Basic amount of estate income: absolute interests

         2. 661. Basic amount of estate income: limited interests

         3. 662. Basic amount of estate income: discretionary interests

         4. 663. The applicable rate for grossing up basic amounts of estate income

         5. 664. The aggregate income of the estate

      5. Further provisions for calculating estate income relating to absolute interests

         1. 665. Assumed income entitlement

         2. 666. The residuary income of the estate

         3. 667. Shares of residuary income of estate

         4. 668. Reduction in share of residuary income of estate

         5. 669. Reduction in residuary income: inheritance tax on accrued income

         6. 670. Applicable rate for determining assumed income entitlement (UK estates)

      6. Special rules for successive interests

         1. 671. Successive absolute interests

         2. 672. Successive interests: assumed income entitlement of holder of absolute interest following limited interest

         3. 673. Successive interests: payments in respect of limited interests followed by absolute interests

         4. 674. Successive interests: holders of limited interests

         5. 675. Basic amount of estate income: successive limited interests

         6. 676. Apportionments

      7. Relief where foreign estates have borne UK income tax

         1. 677. Relief where UK income tax borne by foreign estate: absolute interests

         2. 678. Relief where UK income tax borne by foreign estate: limited and discretionary interests

      8. General

         1. 679. Income from which basic amounts are treated as paid

         2. 680. Income treated as bearing income tax

         3. 681. Transfers of assets etc. treated as payments

         4. 682. Assessments, adjustments and claims after the administration period

   7. Chapter 7 Annual payments not otherwise charged

      1. 683. Charge to tax on annual payments not otherwise charged

      2. 684. Income charged

      3. 685. Person liable

      4. 686. Payments received after deduction of tax

   8. Chapter 8 Income not otherwise charged

      1. 687. Charge to tax on income not otherwise charged

      2. 688. Income charged

      3. 689. Person liable

7. Part 6 Exempt income

   1. Chapter 1 Introduction

      1. 690. Overview of Part 6

   2. Chapter 2 National savings income

      1. 691. National Savings Bank ordinary account interest

      2. 692. Income from savings certificates

      3. 693. Income from Ulster Savings Certificates

   3. Chapter 3 Income from individual investment plans

      1. 694. Income from individual investment plans

      2. 695. Investment plans

      3. 696. Plan managers

      4. 697. Special requirements for certain foreign managers

      5. 698. Requirements for discharge of foreign institution’s duties

      6. 699. Non-entitlement to exemption

      7. 700. Information

      8. 701. General and supplementary powers

   4. Chapter 4 SAYE interest

      1. 702. Interest under certified SAYE savings arrangements

      2. 703. Meaning of “certified SAYE savings arrangement”

      3. 704. Types of arrangements and providers

      4. 705. Certification of arrangements

      5. 706. Withdrawal and variation of certifications and connected requirements

      6. 707. Authorisation of providers

      7. 708. Withdrawal and variation of authorisations

   5. Chapter 5 Venture capital trust dividends

      1. 709. Venture capital trust dividends

      2. 710. Treatment of shares where annual acquisition limit exceeded

      3. 711. Identification of shares after disposals

      4. 712. Identification of shares after reorganisations etc.

   6. Chapter 6 Income from FOTRA securities

      1. 713. Introduction: securities free of tax to residents abroad (“FOTRA securities”)

      2. 714. Exemption of profits from FOTRA securities

      3. 715. Interest from FOTRA securities held on trust

      4. 716. Restriction on deductions etc. relating to FOTRA securities

   7. Chapter 7 Purchased life annuity payments

      1. Partial exemption for purchased life annuity payments

         1. 717. Exemption for part of purchased life annuity payments

         2. 718. Excluded annuities

         3. 719. Extent of exemption under section 717

         4. 720. Exempt proportion: term dependent solely on duration of life

         5. 721. Exempt sum: term dependent solely on duration of life

         6. 722. Consideration for the grant of annuities

         7. 723. Determinations

         8. 724. Regulations

      2. Immediate needs annuities

         1. 725. Annual payments under immediate needs annuities

         2. 726. Meaning of “care provider”

   8. Chapter 8 Other annual payments

      1. Certain annual payments by individuals

         1. 727. Certain annual payments by individuals

         2. 728. Commercial payments

         3. 729. Payments for non-taxable consideration

         4. 730. Foreign maintenance payments

      2. Periodical payments of personal injury damages etc.

         1. 731. Periodical payments of personal injury damages

         2. 732. Compensation awards

         3. 733. Persons entitled to exemptions for personal injury payments etc.

         4. 734. Payments from trusts for injured persons

      3. Health and employment insurance payments

         1. 735. Health and employment insurance payments

         2. 736. Health and employment risks and benefits

         3. 737. Period for which payments may be made

         4. 738. Risk of significant loss

         5. 739. Conditions to be met by policies also providing other benefits

         6. 740. Conditions to be met where policies are linked

         7. 741. Aggregation of policies where employment ends for health reasons

         8. 742. Meaning of “the insured”

         9. 743. Policies for the benefit of others who contribute to premiums

      4. Payments to adopters

         1. 744. Payments to adopters: England and Wales

         2. 745. Payments to adopters: Scotland

         3. 746. Payments to adopters: Northern Ireland

         4. 747. Power to amend sections 744 to 746

      5. Payments by persons liable to pool betting duty

         1. 748. Payments by persons liable to pool betting duty

   9. Chapter 9 Other income

      1. Interest only income

         1. 749. Interest paid under repayment supplements

         2. 750. Interest from tax reserve certificates

         3. 751. Interest on damages for personal injury

         4. 752. Interest under employees' share schemes

         5. 753. Interest on repayment of student loan

         6. 754. Redemption of funding bonds

         7. 755. Interest on foreign currency securities etc. owned by non-UK residents

         8. 756. Which securities and loans are foreign currency ones for section 755

      2. Interest and royalty payments

         1. 757. Interest and royalty payments: introduction

         2. 758. Exemption for certain interest and royalty payments

         3. 759. The person making the payment

         4. 760. The person beneficially entitled to the payment

         5. 761. Meaning of “25% associates”

         6. 762. Interest payments: exemption notices

         7. 763. Special relationships

         8. 764. Application of ICTA provisions about special relationships

         9. 765. Anti-avoidance

         10. 766. Interest and royalty payments: interpretation

         11. 767. Power to amend references to the Directive by order

      3. Income from commercial occupation of woodlands

         1. 768. Commercial occupation of woodlands

      4. Housing grants

         1. 769. Housing grants

      5. Approved share incentive plan distributions

         1. 770. Amounts applied by SIP trustees acquiring dividend shares or retained for reinvestment

      6. Foreign income of consular officers and employees

         1. 771. Relevant foreign income of consular officers and employees

         2. 772. Further provisions about Orders under section 771

      7. Income of non-UK residents from certain securities

         1. 773. Income from Inter-American Development Bank securities

         2. 774. Income from securities issued by designated international organisations

      8. Other

         1. 775. Income towards reducing the national debt

         2. 776. Scholarship income

         3. 777. VAT repayment supplements

         4. 778. Incentives to use electronic communications

         5. 779. Gains on commodity and financial futures

         6. 780. Disabled person’s vehicle maintenance grant

         7. 781. Payments under New Deal 50plus

         8. 782. Payments under employment zone programme

   10. Chapter 10 General

       1. 783. General disregard of exempt income for income tax purposes

8. Part 7 Income charged under this Act: rent-a-room and foster-care relief

   1. Chapter 1 Rent-a-room relief

      1. Introduction

         1. 784. Overview of Chapter 1

         2. 785. Person who qualifies for relief

      2. Basic definitions

         1. 786. Meaning of “rent-a-room receipts”

         2. 787. Meaning of “residence”

         3. 788. Meaning of “total rent-a-room amount”

      3. Individual’s limit

         1. 789. The individual’s limit

         2. 790. Exclusive receipts condition

      4. Relief if amount does not exceed limit

         1. 791. Full rent-a-room relief: introduction

         2. 792. Full rent-a-room relief: trading income

         3. 793. Full rent-a-room relief: property income

         4. 794. Full rent-a-room relief: income chargeable under Chapter 8 of Part 5

      5. Alternative calculation of profits if amount exceeds limit

         1. 795. Alternative calculation of profits: introduction

         2. 796. Alternative calculation of profits: trading income

         3. 797. Alternative calculation of profits: property income

         4. 798. Alternative calculation of profits: income chargeable under Chapter 8 of Part 5

      6. Elections

         1. 799. Election not to apply full relief

         2. 800. Election for alternative methodof calculating profits

         3. 801. Time limit on adjustment of assessment

      7. Interpretation

         1. 802. Minor definitions

   2. Chapter 2 Foster-care relief

      1. Introduction

         1. 803. Overview of Chapter 2

         2. 804. Person who qualifies for relief

      2. Basic definitions

         1. 805. Meaning of “foster-care receipts”

         2. 806. Meaning of providing foster care

         3. 807. Calculation of “total foster-care receipts”

      3. Individual’s limit

         1. 808. The individual’s limit

         2. 809. Share of fixed amount: residence used by more than one foster carer

         3. 810. Share of fixed amount: income period not a year

         4. 811. The amount per child

      4. Relief if amount does not exceed limit

         1. 812. Full foster-care relief: introduction

         2. 813. Full foster-care relief: trading income

         3. 814. Full foster-care relief: income chargeable under Chapter 8 of Part 5

      5. Alternative calculation of profits if amount exceeds limit

         1. 815. Alternative calculation of profits: introduction

         2. 816. Alternative calculation of profits: trading income

         3. 817. Alternative calculation of profits: income chargeable under Chapter 8 of Part 5

         4. 818. Election for alternative methodof calculating profits

         5. 819. Adjustment of assessment

      6. Periods of account not ending on 5th April

         1. 820. Periods of account not ending on 5th April

         2. 821. Meaning of “relevant limit”

         3. 822. Full relief

         4. 823. Alternative method of calculating profits

      7. Capital allowances for foster carers carrying on trade

         1. 824. Capital allowances: introduction

         2. 825. Carried forward unrelieved qualifying expenditure

         3. 826. Excluded capital expenditure

         4. 827. Excluded capital expenditure: subsequent treatment of asset

      8. Overlap profit

         1. 828. Overlap profit

9. Part 8 Foreign income: special rules

   1. Chapter 1 Introduction

      1. 829. Overview of Part 8

      2. 830. Meaning of “relevant foreign income”

   2. Chapter 2 Relevant foreign income charged on remittance basis

      1. Remittance basis

         1. 831. Claims for relevant foreign income to be charged on the remittance basis

         2. 832. Relevant foreign income charged on the remittance basis

         3. 833. Income treated as remitted: repayment of UK-linked debts

         4. 834. Arrangements treated as repayment of UK-linked debts

      2. Relief for delayed remittances

         1. 835. Relief for delayed remittances

         2. 836. Relief for delayed remittances: backdated pensions

         3. 837. Claims for relief on delayed remittances

   3. Chapter 3 Relevant foreign income charged on arising basis: deductions and reliefs

      1. 838. Expenses attributable to collection or payment of relevant foreign income

      2. 839. Annual payments payable out of relevant foreign income

      3. 840. Relief for backdated pensions charged on the arising basis

   4. Chapter 4 Unremittable income

      1. 841. Unremittable income: introduction

      2. 842. Claim for relief for unremittable income

      3. 843. Withdrawal of relief

      4. 844. Income charged on withdrawal of relief after source ceases

      5. 845. Valuing unremittable income

10. Part 9 Partnerships

    1. Introduction

       1. 846. Overview of Part 9

       2. 847. General provisions

       3. 848. Assessment of partnerships

    2. Calculation of partners' shares

       1. 849. Calculation of firm’s profits or losses

       2. 850. Allocation of firm’s profits or losses between partners

       3. 851. Calculations etc. where firm has other income or losses

    3. Firms with trading income

       1. 852. Carrying on by partner of notional trade

       2. 853. Basis periods for partners' notional trades

    4. Firms with trading and other source income

       1. 854. Carrying on by partner of notional business

       2. 855. Basis periods for partners' notional businesses

       3. 856. Overlap profits from partners' notional businesses

    5. Firms with a foreign element

       1. 857. Partners to whom the remittance basis may apply

       2. 858. Resident partners and double taxation agreements

    6. Miscellaneous

       1. 859. Special provisions about farming and property income

       2. 860. Adjustment income

       3. 861. Sale of patent rights: effect of partnership changes

       4. 862. Sale of patent rights: effect of later cessation of trade

       5. 863. Limited liability partnerships

11. Part 10 General provisions

    1. Chapter 1 Introduction

       1. 864. Overview of Part 10

    2. Chapter 2 General calculation rules etc.

       1. Unpaid remuneration

          1. 865. Unpaid remuneration: non-trades and non-property businesses

       2. Employee benefit contributions

          1. 866. Employee benefit contributions: non-trades and non-property businesses

       3. Business entertainment and gifts

          1. 867. Business entertainment and gifts: non-trades and non-property businesses

       4. Social security contributions

          1. 868. Social security contributions: non-trades etc.

       5. Penalties, interest and VAT surcharges

          1. 869. Penalties, interest and VAT surcharges: non-trades etc.

       6. Crime-related payments

          1. 870. Crime-related payments: non-trades and non-property businesses

       7. Apportionment of profits

          1. 871. Apportionment etc. of miscellaneous profits to tax year

       8. Calculation of losses

          1. 872. Losses calculated on same basis as miscellaneous income

    3. Chapter 3 Supplementary and general provisions

       1. Orders and regulations

          1. 873. Orders and regulations made by Treasury or Board

       2. Interpretation

          1. 874. Activities in UK sector of continental shelf

          2. 875. Meaning of “caravan”

          3. 876. Meaning of “farming” and related expressions

          4. 877. Meaning of grossing up

          5. 878. Other definitions

          6. 879. Interpretation: Scotland

          7. 880. Interpretation: Northern Ireland

       3. General and final

          1. 881. Disapplication of corporation tax: section 9 of ICTA

          2. 882. Consequential amendments

          3. 883. Commencement and transitional provisions etc.

          4. 884. Repeals and revocations

          5. 885. Abbreviations and general index in Schedule 4

          6. 886. Short title

12. SCHEDULES

    1. SCHEDULE 1

       Consequential amendments

       1. Part 1 Income and Corporation Taxes Act 1988

          1. 1. The Income and Corporation Taxes Act 1988 (c. 1) is...

          2. 2. In section 1(1) (the charge to income tax)—

          3. 3. (1) Amend section 1A (application of lower rate to income...

          4. 4. (1) Amend section 1B (rates of tax applicable to Schedule...

          5. 5. In section 4 (construction of references in Income Tax Acts...

          6. 6. After section 6(4) (the charge to corporation tax and exclusion...

          7. 7. (1) Amend section 9 (computation of income: application of income...

          8. 8. (1) Amend section 15 (Schedule A) as follows.

          9. 9. (1) Amend section 18 (Schedule D) as follows.

          10. 10. Omit section 20 (Schedule F).

          11. 11. Omit section 21 (persons chargeable and basis of assessment under...

          12. 12. (1) Amend section 21A (computation of amount chargeable under Schedule...

          13. 13. In section 21B (application of other rules applicable to Case...

          14. 14. In section 21C (the Schedule A charge and mutual business)—...

          15. 15. (1) Amend section 30 (expenditure on making sea walls) as...

          16. 16. Omit sections 31A and 31B (deductions for expenditure by landlords...

          17. 17. (1) Amend section 34 (treatment of premiums etc. as rent)...

          18. 18. (1) Amend section 35 (charge on assignment of lease granted...

          19. 19. (1) Amend section 36 (charge on sale of land with...

          20. 20. (1) Amend section 37 (premiums paid etc: deductions from premiums...

          21. 21. After section 37 insert— Section 37(4) and reductions in receipts...

          22. 22. (1) Amend section 38 (rules for ascertaining duration of leases)...

          23. 23. In section 40 (tax treatment of receipts and outgoings on...

          24. 24. (1) Amend section 42 (appeals against determinations under sections 34...

          25. 25. (1) Amend section 42A (non-residents and their representatives) as follows....

          26. 26. In section 43B(2) (transfer of rent)— (a) after “paragraph 1(1)...

          27. 27. (1) Amend section 43C (transfer of rent: exceptions, etc.) as...

          28. 28. In section 43D(2) (interposed lease)— (a) after “paragraph 1(1) of...

          29. 29. (1) Amend section 43E (interposed lease: exceptions, etc.) as follows....

          30. 30. (1) Amend section 43G (interpretation) as follows.

          31. 31. (1) Amend section 46 (savings certificates and tax reserve certificates)...

          32. 32. (1) Amend section 53 (farming and other commercial occupation of...

          33. 33. In section 55(1) (mines, quarries and other concerns) after “charged...

          34. 34. (1) Amend section 56 (transactions in deposits with and without...

          35. 35. (1) Amend section 59 (persons chargeable: Schedule D) as follows....

          36. 36. Omit sections 60 to 63A (basis of assessment for income...

          37. 37. Omit section 64 (Case III assessments).

          38. 38. Omit section 65 (Cases IV and V assessments: general).

          39. 39. Omit section 65A (Case V income from land outside UK:...

          40. 40. Omit section 68 (special rules where property etc. situated in...

          41. 41. Omit sections 68A to 68C (share incentive plans).

          42. 42. Omit section 69 (Case VI assessments).

          43. 43. Omit section 71 (computation of income tax where no profits...

          44. 44. In section 72(1) (apportionments etc for purposes of Cases I,...

          45. 45. In section 74(1) (general rules as to deductions not allowable)—...

          46. 46. In section 76A(1) (levies and repayments under FISMA 2000) after...

          47. 47. Omit section 77 (incidental costs of obtaining loan finance).

          48. 48. (1) Amend section 79 (contributions to local enterprise agencies) as...

          49. 49. (1) Amend section 79A (contributions to training and enterprise councils...

          50. 50. (1) Amend section 79B (contributions to urban regeneration companies) as...

          51. 51. Omit section 80 (expenses connected with foreign trades etc).

          52. 52. Omit section 81 (travel between trades etc).

          53. 53. Omit section 82 (interest paid to non-residents).

          54. 54. In section 82A(1) (expenditure on research and development)—

          55. 55. In section 82B(1) (payments to research associations, universities etc.)—

          56. 56. In section 83 (patent fees etc. and expenses) after “the...

          57. 57. (1) Amend section 83A (gifts in kind to charities etc.)...

          58. 58. (1) Amend section 84 (gifts to educational establishments) as follows....

          59. 59. In section 84A(2)(a) (costs of establishing share option or profit...

          60. 60. (1) Amend section 86 (employees seconded to charities and educational...

          61. 61. In section 86A (charitable donations: contributions to agent’s expenses) —...

          62. 62. (1) Amend section 87 (taxable premiums etc.) as follows.

          63. 63. After section 87 insert— Section 87(2) and (3) and reductions...

          64. 64. In section 88 (payments to Export Credits Guarantee Department)—

          65. 65. For section 89 (debts proving irrecoverable after event treated as...

          66. 66. (1) Amend section 90 (additional payments to redundant employees) as...

          67. 67. (1) Amend section 91 (cemeteries) as follows.

          68. 68. In section 91A (waste disposal: restoration payments)—

          69. 69. In section 91B (waste: disposal: preparation expenditure)—

          70. 70. In section 91BA (waste disposal: entitlement of successor to allowances)—...

          71. 71. In section 91C (mineral exploration and access) for “person” substitute...

          72. 72. In section 93(1) (other grants under Industrial Development Act 1982...

          73. 73. In section 94(1) (debts deducted and subsequently released)—

          74. 74. (1) Amend section 95 (taxation of dealers in respect of...

          75. 75. Omit section 95A (creative artists: relief for fluctuating profits).

          76. 76. Omit section 96 (farming and market gardening: relief for fluctuating...

          77. 77. In section 98(1) (tied premises: receipts and expenses treated as...

          78. 78. (1) Amend section 99 (dealers in land) as follows.

          79. 79. (1) Amend section 100 (valuation of trading stock at discontinuance...

          80. 80. (1) Amend section 101 (valuation of work in progress at...

          81. 81. (1) Amend section 102 (provisions supplementary to sections 100 and...

          82. 82. (1) Amend section 103 (receipts after discontinuance: earnings basis charge...

          83. 83. (1) Amend section 104 (conventional basis: general charge on receipts...

          84. 84. (1) Amend section 105 (allowable deductions) as follows.

          85. 85. (1) Amend section 106 (application of charges where rights to...

          86. 86. Omit section 107 (treatment of receipts as earned income).

          87. 87. Omit section 108 (election for carry-back).

          88. 88. Omit section 109 (charge under section 104: relief for individuals...

          89. 89. (1) Amend section 109A (relief for post-cessation expenditure) as follows....

          90. 90. In section 110 (interpretation etc) for subsection (2) substitute—

          91. 91. Omit section 110A (change of residence) and the italic cross-heading...

          92. 92. (1) Amend section 111 (treatment of partnerships) as follows.

          93. 93. Omit section 112 (partnerships controlled abroad).

          94. 94. Omit section 113 (effect for income tax of change in...

          95. 95. (1) Amend section 115 (provisions supplementary to section 114) as...

          96. 96. In section 116(4) (arrangements for transferring relief) before “tax” insert...

          97. 97. In section 118ZA (treatment of limited liability partnerships)—

          98. 98. (1) Amend section 118ZE (restriction on relief for non-active partners)...

          99. 99. In section 118ZH(3) (“a significant amount of time”: recovery of...

          100. 100. In section 118ZK(2)(b) and (5) (transitional provision for years after...

          101. 101. In section 118ZL(6) (partnerships exploiting films)— (a) in paragraph (b)—...

          102. 102. In section 118ZM(4) (partnerships exploiting films: supplementary) for “the acquisition...

          103. 103. In section 119(1) (rent etc. payable in connection with mines,...

          104. 104. In section 120 (rent etc. payable in respect of electric...

          105. 105. In section 121 (management expenses of owner or mineral rights)...

          106. 106. (1) Amend section 122 (relief in respect of mineral royalties)...

          107. 107. (1) Amend section 125 (annual payments for non-taxable consideration) as...

          108. 108. Omit section 127 (enterprise allowance).

          109. 109. Omit section 127A (futures and options: transactions with guaranteed returns)....

          110. 110. In section 128 (commodity and financial futures etc: losses and...

          111. 111. (1) Amend section 214 (chargeable payments connected with exempt distributions)...

          112. 112. In section 230 (stock dividends: distributions) for the words from...

          113. 113. (1) Amend section 231 (tax credits for certain recipients of...

          114. 114. (1) Amend section 231AA (no tax credit for borrower under...

          115. 115. (1) Amend section 231AB (no tax credit for original owner...

          116. 116. In section 231B(4)(b) (consequences of certain arrangements to pass on...

          117. 117. Omit section 232 (tax credits for non-UK residents).

          118. 118. Omit section 233 (taxation of certain recipients of distributions and...

          119. 119. (1) Amend section 249 (stock dividends treated as income) as...

          120. 120. (1) Amend section 250 (returns) as follows.

          121. 121. In section 251 (interpretation of sections 249 and 250), omit...

          122. 122. Omit sections 251A to 251D (approved share incentive plans).

          123. 123. In section 271(1)(a) (deemed surrender in cases of certain loans)...

          124. 124. In section 273 (payments securing annuities)— (a) renumber the existing...

          125. 125. In section 282A(4)(b) (jointly held property) for “section 111” substitute...

          126. 126. In section 291A(3)(f) (connected persons: directors)— (a) in sub-paragraph (i)...

          127. 127. In section 307(1) (withdrawal of enterprise investment scheme relief) for...

          128. 128. Omit section 314 (divers and diving supervisors).

          129. 129. Omit section 322 (consular officers and employees).

          130. 130. Omit section 324 (designated international organisations).

          131. 131. Omit section 325 (interest on deposits with National Savings Bank)....

          132. 132. Omit section 326 (interest etc. under contractual savings schemes).

          133. 133. Omit sections 326A to 326D (tax-exempt special savings accounts).

          134. 134. Omit section 327 (disabled person’s vehicle maintenance grant).

          135. 135. Omit section 327A (payments to adopters).

          136. 136. Omit sections 329 to 329AB (exemption of interest on damages...

          137. 137. Omit section 331 (scholarship income).

          138. 138. Omit section 331A (student loans: certain interest to be disregarded)....

          139. 139. Omit section 332(3) (expenditure and houses of ministers of religion)....

          140. 140. In section 332A (venture capital trusts: reliefs) omit “and distributions...

          141. 141. For section 333 substitute— Investment plan regulations Regulations under Chapter 3 of Part 6 of ITTOIA 2005...

          142. 142. Omit section 333A (personal equity plans: tax representatives).

          143. 143. (1) Amend section 333B (involvement of insurance companies with plans...

          144. 144. In section 336(1A) (exception from certain charges for temporary residents...

          145. 145. (1) Amend section 337 (company beginning or ceasing to carry...

          146. 146. (1) Amend section 347A (general rule: annual payments) as follows....

          147. 147. (1) Amend section 348 (payments out of profits or gains...

          148. 148. (1) Amend section 349 (payments not out of profits or...

          149. 149. After section 349 insert— Extension of section 349: proceeds of...

          150. 150. In section 349A(3) (exceptions to section 349 for payments between...

          151. 151. (1) Amend section 349B (conditions mentioned in section 349A(1)) as...

          152. 152. In section 353(1) (relief for payments of interest) after “sections...

          153. 153. In section 360A(2)(b) (meaning of “material interest” in section 360)...

          154. 154. (1) Amend section 368 (exclusion of double relief etc) as...

          155. 155. In section 370(2)(b) (relevant loan interest) for the words from...

          156. 156. (1) Amend section 379A (Schedule A losses) as follows.

          157. 157. In section 379B (losses from overseas property business)—

          158. 158. In section 382(3) (provisions supplementary to sections 380 and 381)...

          159. 159. (1) Amend section 384 (restrictions on right of set-off for...

          160. 160. In section 384A(6) (restriction of set-off of allowances against general...

          161. 161. In section 385(4) (carry-forward against subsequent profits) omit “under Case...

          162. 162. In section 386(1) (carry-forward where business transferred to a company)...

          163. 163. In section 387(3)(d) (carry-forward as losses of amounts taxed under...

          164. 164. (1) Amend section 388 (carry-back of terminal losses) as follows....

          165. 165. In section 389 (supplementary provisions relating to carry-back of terminal...

          166. 166. In section 390(a) (treatment of interest as a loss for...

          167. 167. For section 391 (losses from trade etc carried on abroad)...

          168. 168. For section 392 (Case VI losses) substitute— Losses from miscellaneous...

          169. 169. (1) Amend section 397 (restriction of relief in case of...

          170. 170. In section 398 (loss relief for transactions in deposits with...

          171. 171. (1) Amend section 399 (dealings in commodity futures etc: withdrawal...

          172. 172. In section 401(1) (relief for pre-trading expenditure)—

          173. 173. In section 417(3)(b) (meaning of “associate” etc.) for “Chapter 1A...

          174. 174. (1) Amend section 421 (taxation of borrower where loan under...

          175. 175. In section 431(2) (interpretative provisions relating to insurance companies) in...

          176. 176. In section 431D(3)(b) (meaning of “overseas life assurance business”) after...

          177. 177. In section 434 (franked investment income etc.) omit subsection (1A)....

          178. 178. (1) Amend section 437 (general annuity business) as follows.

          179. 179. (1) Section 468J (dividend distributions of authorised unit trusts) is...

          180. 180. (1) Section 468L (interest distributions of authorised unit trusts) is...

          181. 181. (1) Amend section 469 (other unit trusts) as follows.

          182. 182. In section 472A (trading profits etc. from securities: taxation of...

          183. 183. In section 473(1) and (4) (conversion etc. of securities held...

          184. 184. (1) Amend section 477A (building societies: regulations for deduction of...

          185. 185. Omit section 480C (relevant deposits: computation of tax on interest)....

          186. 186. (1) Amend section 481 (“deposit-taker”, “deposit” and “relevant deposit”) as...

          187. 187. (1) Amend section 482 (supplementary provisions) as follows.

          188. 188. (1) Section 486 (industrial and provident societies and co-operative associations)...

          189. 189. (1) Amend section 491 (distribution of assets of body corporate...

          190. 190. (1) Amend section 492 (treatment of oil extraction activities etc...

          191. 191. In section 493(2)(a)(i) (valuation of oil disposed of or appropriated...

          192. 192. In section 495(2) (regional development grants) for “section 492(1)” substitute...

          193. 193. In section 496(1)(c) (tariff receipts and tax-exempt tariffing receipts) for...

          194. 194. In section 502(1) (interpretation of Chapter 5), in the definition...

          195. 195. (1) Amend section 503 (letting of furnished holiday accommodation treated...

          196. 196. (1) Amend section 504 (meaning of the “commercial letting of...

          197. 197. After section 504 insert— Letting of furnished holiday accommodation treated...

          198. 198. (1) Amend section 505 (charities: general) as follows.

          199. 199. In section 512(1) (exemptions for Atomic Energy Authority and National...

          200. 200. Omit section 514 (funds for reducing the national debt).

          201. 201. (1) Amend section 524 (taxation of receipts from sale of...

          202. 202. (1) Amend section 525 (receipts from sale of patent right:...

          203. 203. (1) Amend section 526 (relief for expenses) as follows.

          204. 204. In section 527(4) (spreading of royalties over several years) at...

          205. 205. (1) Amend section 528 (manner of making allowances under section...

          206. 206. Omit section 529 (patent income to be earned income in...

          207. 207. (1) Amend section 531 (disposals of know-how) as follows.

          208. 208. In section 532 (application of Capital Allowances Act) for “529”...

          209. 209. (1) Amend section 533 (interpretation of intellectual property provisions) as...

          210. 210. (1) Amend section 539 (life policies, life annuities and capital...

          211. 211. After that section insert— Application of this Chapter etc. to...

          212. 212. In section 543(1)(a)(i) (life annuity contracts: computation of gain) for...

          213. 213. In section 544(6)(a) (second and subsequent assignment of life policies...

          214. 214. In section 545(1)(a) (capital redemption policies) for “to tax” to...

          215. 215. In section 546C(8) (charging the section 546 excess to tax...

          216. 216. (1) Amend section 547 (method of charging gain to tax)...

          217. 217. (1) Amend section 547A (method of charging gain to tax:...

          218. 218. In section 548(1) (deemed surrender of certain loans) for paragraph...

          219. 219. Omit section 549 (certain deficiencies allowable as deductions).

          220. 220. Omit section 550 (relief where gain charged at a higher...

          221. 221. Omit section 551 (right of individual to recover tax from...

          222. 222. (1) Amend section 552 (information: duty of insurers) as follows....

          223. 223. In section 552ZA(3) (information: supplementary provisions) after “section 546C(7)(a)” insert...

          224. 224. (1) Amend section 552A (tax representatives) as follows.

          225. 225. In section 552B (duties of overseas insurers' tax representatives) after...

          226. 226. (1) Amend section 553 (non-resident policies and off-shore capital redemption...

          227. 227. (1) Amend section 553A (overseas life insurance business) as follows....

          228. 228. (1) Amend section 553C (personal portfolio bonds) as follows.

          229. 229. Omit section 554 (borrowings on life policies to be treated...

          230. 230. (1) Amend section 556 (activity treated as trade etc. and...

          231. 231. Omit section 557 (charge on profits).

          232. 232. In section 568(1) (deductions from profits of contributions paid under...

          233. 233. In section 570(4) (payments under certified schemes which are not...

          234. 234. In section 571(1) (cancellation of certificates) for “under Case VI...

          235. 235. (1) Amend section 577 (business entertaining expenses) as follows.

          236. 236. (1) Amend section 577A (expenditure involving crime) as follows.

          237. 237. In section 578(1) (housing grants) for “any tax purpose” substitute...

          238. 238. In section 578A(1) (expenditure on car hire) for “tax” substitute...

          239. 239. (1) Amend section 579 (statutory redundancy payments) as follows.

          240. 240. Omit sections 580A to 580C (relief from tax on annual...

          241. 241. Omit section 581 (borrowing in foreign currency by local authorities...

          242. 242. After section 581 insert— Interest on foreign currency securities etc....

          243. 243. (1) Section 582 (funding bonds issued in respect of interest...

          244. 244. Omit section 583 (Inter-American Development Bank).

          245. 245. (1) Section 584 (relief for unremittable overseas income) is amended...

          246. 246. Omit section 585 (relief from tax on delayed remittances).

          247. 247. In section 586(1) (disallowance of deductions for war risk premiums)...

          248. 248. (1) Amend section 587 (disallowance of certain payments in respect...

          249. 249. In section 587B(2) (gifts of shares, securities and real property...

          250. 250. (1) Amend section 588 (training courses for employees) as follows....

          251. 251. (1) Amend section 589A (counselling services for employees) as follows....

          252. 252. (1) Amend section 591C (cessation of approval: tax on certain...

          253. 253. (1) Amend section 592 (exempt approved schemes) as follows.

          254. 254. (1) Amend section 598 (charge to tax: repayment of employee’s...

          255. 255. (1) Amend section 599 (charge to tax: commutation of entire...

          256. 256. In section 599A (charge to tax: payments out of surplus...

          257. 257. In section 601(5)(b) (charge to tax: payments to employers) for...

          258. 258. In section 602(1)(a) (regulations relating to pension fund surpluses) omit...

          259. 259. (1) Amend section 607 (pilots' benefit fund) as follows.

          260. 260. In section 608(2) (superannuation funds approved before 6th April 1980)—...

          261. 261. In section 614(2A) (exemptions and reliefs in respect of income...

          262. 262. (1) Amend section 617 (social security benefits and contributions) as...

          263. 263. (1) Amend section 623 (relevant earnings) as follows.

          264. 264. In section 644(2) (meaning of “relevant earnings”)—

          265. 265. In section 646(2) (meaning of “relevant net earnings”)—

          266. 266. (1) Amend section 648B (return of contributions after pension date)...

          267. 267. (1) Amend section 650A (charge on withdrawal of approval from...

          268. 268. (1) Amend section 656 (purchased life annuities other than retirement...

          269. 269. In section 657(2)(a) (purchased life annuities to which section 656...

          270. 270. (1) Amend section 658 (supplementary provisions about purchased life annuities)...

          271. 271. Omit sections 660A and 660B (income arising under settlement where...

          272. 272. (1) Amend section 660C (nature of charge on settlor) as...

          273. 273. Omit sections 660D to 660G (settlements: supplementary provisions etc.).

          274. 274. Omit section 677 (sums paid to settlor otherwise than as...

          275. 275. Omit section 678 (capital sums paid by body connected with...

          276. 276. Omit sections 682 and 682A (ascertainment of undistributed income and...

          277. 277. (1) Amend section 686 (accumulation and discretionary trusts: special rates...

          278. 278. (1) Amend section 687 (payments under discretionary trusts) as follows....

          279. 279. Omit section 688 (schemes for employees and directors to acquire...

          280. 280. (1) Amend section 689B (order in which expenses to be...

          281. 281. In section 691(2)(b)(ii) (certain income not to be income of...

          282. 282. In section 692(1) (reimbursement of settlor) for “Schedule A business”...

          283. 283. In section 694(3) (trustees chargeable to income tax in certain...

          284. 284. (1) Amend section 695 (estates of deceased persons in course...

          285. 285. (1) Amend section 696 (absolute interests in residue) as follows....

          286. 286. (1) Amend section 697 (supplementary provisions as to absolute interests...

          287. 287. (1) Amend section 698 (special provisions as to certain interests...

          288. 288. (1) Amend section 698A (taxation of income of beneficiaries at...

          289. 289. Omit section 699 (relief from higher rate tax for inheritance...

          290. 290. (1) Amend section 699A (untaxed sums comprised in the income...

          291. 291. (1) Amend section 700 (adjustments and information) as follows.

          292. 292. (1) Amend section 701 (interpretation) as follows.

          293. 293. In section 703(3) (cancellation of tax advantage) after “being chargeable”...

          294. 294. (1) Amend section 710 (meaning of “securities”, transfer etc. for...

          295. 295. (1) Amend section 714 (treatment of deemed sums and reliefs)...

          296. 296. In section 715(1)(j) (exceptions from sections 713 and 714) for...

          297. 297. (1) Amend section 716 (transfer of unrealised interest) as follows....

          298. 298. (1) Amend section 720 (transfers of securities: nominees, trustees etc.)...

          299. 299. (1) Amend section 723 (foreign securities: delayed remittances) as follows....

          300. 300. (1) Amend section 730 (transfers of income arising from securities)...

          301. 301. Omit section 730C (exchanges of gilts: traders etc.).

          302. 302. In section 731 (application and interpretation of sections 732 to...

          303. 303. In section 732(1A) (dealers in securities) for the words from...

          304. 304. (1) Amend section 740 (liability of non-transferors) as follows.

          305. 305. (1) Amend section 743 (transfer of assets abroad: supplemental provision)...

          306. 306. In section 745(6) (transfer of assets abroad: information powers) for...

          307. 307. (1) Amend section 746 (persons resident in the Republic of...

          308. 308. (1) Amend section 761 (charge to income tax or corporation...

          309. 309. In section 762(6) (offshore income gains accruing to persons resident...

          310. 310. In section 774(1) (transactions between dealing company and associated company)—...

          311. 311. (1) Amend section 775 (sale by individual of income derived...

          312. 312. (1) Amend section 776 (transactions in land: taxation of capital...

          313. 313. (1) Amend section 777 (tax avoidance: provisions supplementary to sections...

          314. 314. (1) Amend section 779 (sale and lease-back: limitation on tax...

          315. 315. (1) Amend section 780 (sale and lease-back: taxation of consideration...

          316. 316. (1) Amend section 781 (assets leased to traders and others)...

          317. 317. In section 782(9) (leased assets: special cases) for “section 113...

          318. 318. In section 783(10)(b) (leased assets: supplemental) for “section 660G(1) and...

          319. 319. In section 785 (meaning of “asset”, “capital sum” and “lease”...

          320. 320. (1) Amend section 786 (transactions associated with loans or credit)...

          321. 321. (1) Amend section 788 (relief by agreement with other territories)...

          322. 322. In section 790(11) (unilateral relief) after “and, in the case...

          323. 323. (1) Amend section 804 (relief against income tax in respect...

          324. 324. In section 806K(2) (application of foreign dividend provisions to branches...

          325. 325. In section 807(1)(b) (sale of securities with or without accrued...

          326. 326. In section 812(1) (withdrawal of right to tax credit of...

          327. 327. (1) Amend section 817 (deductions not to be allowed in...

          328. 328. (1) Amend section 818 (arrangements for payments of interest less...

          329. 329. In section 819(2) (old references to standard rate tax) for...

          330. 330. In section 821(1) (under-deductions from payments made before passing of...

          331. 331. (1) Section 824 (repayment supplements: individuals and others) is amended...

          332. 332. In section 827 (VAT penalties etc.)— (a) for “for any...

          333. 333. After section 827 insert— Territorial scope of charges under certain...

          334. 334. (1) Amend section 828 (orders and regulations made by the...

          335. 335. In section 830(3) (territorial sea and designated areas) omit “income...

          336. 336. In section 831(3) (interpretation of ICTA) after the entry relating...

          337. 337. In section 832(1) (interpretation of the Tax Acts)—

          338. 338. (1) Amend section 833 (interpretation of Income Tax Acts) as...

          339. 339. In section 835(6)(a) (“total income” in the Income Tax Acts)...

          340. 340. After section 836A insert— Table of provisions to which this...

          341. 341. In section 839(3) (connected persons) for “Chapter 1A of Part...

          342. 342. Omit Schedule 4A (creative artists: relief for fluctuating profits).

          343. 343. (1) Amend Schedule 5 (treatment of farm animals etc for...

          344. 344. Omit Schedule 5AA (guaranteed returns on transactions in futures and...

          345. 345. Omit Schedule 15A (contractual savings schemes).

          346. 346. (1) Amend Schedule 15B (venture capital trusts: relief from income...

          347. 347. (1) Amend Schedule 20 (charities: qualifying investments and loans) as...

          348. 348. (1) Amend Schedule 22 (reduction of pension fund surpluses) as...

          349. 349. In paragraph 11A(4) of Schedule 24 (assumptions for calculating chargeable...

          350. 350. (1) Amend Schedule 27 (distributing funds) as follows.

          351. 351. (1) Amend Schedule 28AA (provision not at arm’s length) as...

          352. 352. (1) Amend Schedule 30 (transitional provisions and savings) as follows....

       2. Part 2 Other enactments

          1. 353. Finance Act 1950 (c. 15)

          2. 354. In section 40(3) (modification of section 39 in case of...

          3. 355. Chevening Estate Act 1959 (c. 49)

          4. 356. (1) Amend section 2 (provisions as to income tax, estate...

          5. 357. Taxes Management Act 1970 (c. 9)

          6. 358. (1) Amend section 7 (notice of liability to income tax...

          7. 359. In section 8(1AA)(b) (personal returns) for “section 231 of the...

          8. 360. In section 8A(1AA)(b) (trustee’s returns) for “section 231 of the...

          9. 361. In section 9(1) (returns to include self-assessment)—

          10. 362. Omit section 9D (choice between different Cases of Schedule D)....

          11. 363. In section 12AA(1A)(b) (partnership returns) for “section 231 of the...

          12. 364. In section 12AB(5) (partnership return to include partnership statement) in...

          13. 365. In section 12AE(2) (choice between different Cases of Schedule D)...

          14. 366. (1) Amend section 18 (interest paid without deduction of income...

          15. 367. (1) Amend section 19 (information for purposes of Schedule A)...

          16. 368. In section 27(2) (settled property) for “section 660G(1) and (2)...

          17. 369. In section 30 (recovery of overpayment of tax, etc.) omit...

          18. 370. In section 30A(2) (assessing procedure) for “Schedule” substitute “Part or...

          19. 371. In section 31(3) (appeals: right of appeal) omit “9D or”....

          20. 372. In section 42(7) (procedure for making claims etc.) omit the...

          21. 373. (1) Amend section 46B (questions to be determined by Special...

          22. 374. In section 46C (jurisdiction of Special Commissioners over certain claims...

          23. 375. In section 58(3)(b) (proceedings in tax cases in Northern Ireland)...

          24. 376. In section 59A(8)(b) (payments on account of income tax) for...

          25. 377. (1) Amend section 59B (payment of income tax and capital...

          26. 378. In section 90(1)(b) (disallowance of relief for interest on tax)...

          27. 379. (1) Amend section 98 (special returns, etc) as follows.

          28. 380. In section 118(1) (interpretation) after the definition of “ITEPA 2003”...

          29. 381. In Schedule 1A (claims etc. not included in returns), in...

          30. 382. (1) Amend Schedule 1B (claims for relief involving two or...

          31. 383. In paragraph 10 of Schedule 3 (rules for assigning proceedings...

          32. 384. In paragraph 2(4) of Schedule 3A (electronic lodgement of tax...

          33. 385. Finance Act 1971 (c. 68)

          34. 386. In paragraph 8(2)(b) of Schedule 3 (taxation of refunds of...

          35. 387. Finance Act 1973 (c. 51)

          36. 388. In Schedule 15 (territorial extension of charge to tax: supplementary...

          37. 389. Biological Standards Act 1975 (c. 4)

          38. 390. (1) Amend section 2 (exemption of the National Biological Standards...

          39. 391. Oil Taxation Act 1975 (c. 22)

          40. 392. In section 3(2) (allowance of expenditure (other than expenditure on...

          41. 393. Inheritance Tax Act 1984 (c. 51)

          42. 394. In section 6(3) (excluded property), in paragraph (e)—

          43. 395. In section 21(3) (normal expenditure out of income)—

          44. 396. In section 174(1) (liabilities for which allowance is to be...

          45. 397. Films Act 1985 (c. 21)

          46. 398. In section 6(1) (certification of master negatives, tapes and discs)...

          47. 399. (1) Amend Schedule 1 (certification in case of British films)...

          48. 400. Finance Act 1988 (c. 39)

          49. 401. (1) Amend section 38 (maintenance payments under existing obligations: 1989-90...

          50. 402. In section 73(2) (consideration for certain restrictive undertakings)—

          51. 403. In Schedule 6 (commercial woodlands) in paragraph 3(2) for “person”...

          52. 404. In Schedule 12 (building societies: change of status) for paragraph...

          53. 405. Water Act 1989 (c. 15)

          54. 406. Finance Act 1989 (c. 26)

          55. 407. In section 68(2) (principal charges to tax: employee share ownership...

          56. 408. In section 71(4) (further charges to tax: borrowing)—

          57. 409. (1) Amend section 76 (non-approved retirement benefits schemes) as follows....

          58. 410. Omit sections 112 and 113 (security: trades etc.).

          59. 411. In section 151(2) (assessment of trustees etc) in each of...

          60. 412. In paragraph 1 of Schedule 12 (close companies: administrative provisions)—...

          61. 413. Electricity Act 1989 (c. 29)

          62. 414. Finance Act 1990 (c. 29)

          63. 415. (1) Amend section 25 (donations to charity by individuals) as...

          64. 416. (1) Amend section 126 (pools payments for football ground improvements)...

          65. 417. Finance Act 1991 (c. 31)

          66. 418. (1) Amend section 121 (pools payments to support games etc.)...

          67. 419. Social Security Contributions and Benefits Act 1992 (c. 4)

          68. 420. (1) Amend section 15 (Class 4 contributions recoverable under the...

          69. 421. In section 16(1) (application of Income Tax Acts and destination...

          70. 422. (1) Amend Schedule 2 (levy of Class 4 contributions with...

          71. 423. Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

          72. 424. (1) Amend section 15 (Class 4 contributions recoverable under the...

          73. 425. (1) Amend Schedule 2 (Schedule 2 to the Social Security...

          74. 426. Taxation of Chargeable Gains Act 1992 (c. 12)

          75. 427. In section 4(2) and (3) (rates of capital gains tax)...

          76. 428. (1) Amend section 6 (rates of capital gains tax: special...

          77. 429. In section 12(2) (foreign assets of person with foreign domicile)...

          78. 430. In section 41(4) (restriction of losses by reference to capital...

          79. 431. (1) Amend section 59 (partnerships) as follows.

          80. 432. In section 97(7) (supplementary provisions) for “section 660G(1) and (2)...

          81. 433. (1) Amend section 117 (meaning of qualifying corporate bond) as...

          82. 434. (1) Amend section 142 (capital gains on stock dividends) as...

          83. 435. After section 148 insert— Futures and options involving guaranteed returns...

          84. 436. In section 151 (personal equity plans) for subsections (2) and...

          85. 437. In section 151A(6) (venture capital trusts: reliefs) for the words...

          86. 438. After section 151B insert— Strips: manipulation of price: associated payment...

          87. 439. In section 156(4) (assets of Class 1) after “Taxes Act”...

          88. 440. In section 198(5)(b) (replacement of business assets used in connection...

          89. 441. (1) Amend section 241 (furnished holiday lettings) as follows.

          90. 442. In section 251(8)(b) (general provisions concerning debts) for “relevant discounted...

          91. 443. In section 254(1)(c) (definition of “a qualifying loan” for relief...

          92. 444. After section 261 insert— Know-how Disposal of know-how as part...

          93. 445. (1) Amend section 271 (miscellaneous exemptions) as follows.

          94. 446. In section 286(3) (connected persons: interpretation) for “Chapter 1A of...

          95. 447. (1) Amend section 288 (interpretation) as follows.

          96. 448. In Schedule A1 (application of taper relief), in paragraph 17(6),...

          97. 449. In Schedule 1 (application of exempt amount and reporting limits...

          98. 450. In paragraph 13(7)(h) of Schedule 5B (enterprise investment scheme: re-investment)—...

          99. 451. (1) Amend Schedule 8 (leases) as follows.

          100. 452. Finance (No. 2) Act 1992 (c. 48)

          101. 453. (1) Amend section 40A (revenue nature of expenditure on master...

          102. 454. (1) Amend section 40B (allocation of expenditure to periods) as...

          103. 455. In section 40C(1) (cases where section 40B does not apply)...

          104. 456. (1) Amend section 40D (election for sections 40A and 40B...

          105. 457. (1) Amend section 41 (relief for preliminary expenditure) as follows....

          106. 458. (1) Amend section 42 (relief for production or acquisition expenditure)...

          107. 459. In section 43(1) after the definition of “expenditure of a...

          108. 460. Omit section 59 (furnished accommodation).

          109. 461. Omit Schedule 10 (furnished accommodation).

          110. 462. Finance Act 1993 (c. 34)

          111. 463. In section 112(7) (employers' pension contributions) in the definition of...

          112. 464. (1) Amend section 171 (Lloyd’s underwriters etc: taxation of income...

          113. 465. In paragraph 13(4) of Schedule 19 (Lloyd’s underwriters etc: repayment...

          114. 466. (1) Amend Schedule 20A (Lloyd’s underwriters: conversion to limited liability...

          115. 467. Pension Schemes Act 1993 (c. 48)

          116. 468. In section 158(4) (disclosure of information between government departments etc.)—...

          117. 469. Pension Schemes (Northern Ireland) Act 1993 (c. 49)

          118. 470. In section 154(4) (disclosure of information between government departments etc.)—...

          119. 471. Finance Act 1994 (c. 9)

          120. 472. (1) Amend Schedule 20 (changes for facilitating self-assessment: transitional provisions...

          121. 473. In paragraph 26 of Schedule 24 (vesting in successor company...

          122. 474. Coal Industry Act 1994 (c. 21)

          123. 475. Finance Act 1995 (c. 4)

          124. 476. Omit section 56 (foreign life policies etc).

          125. 477. In section 73(1)(a) (venture capital trusts: regulations) after “1992” insert...

          126. 478. In section 123 (prevention of exploitation of transitional provisions) for...

          127. 479. (1) Amend section 126 (UK representatives of non-residents) as follows....

          128. 480. In section 128(3) (limit on income chargeable on non-residents: income...

          129. 481. (1) Amend section 154 (short rotation coppice) as follows.

          130. 482. In section 157(7) (certificates of tax deposit) for “Case III...

          131. 483. In paragraph 3(4) of Schedule 18 (deceased persons' estates) after...

          132. 484. (1) Amend Schedule 22 (prevention of exploitation of transitional provisions...

          133. 485. Finance Act 1996 (c. 8)

          134. 486. In section 92(1) (convertible securities etc: creditor relationships) for paragraph...

          135. 487. Omit section 102 (discounted securities: income tax provisions).

          136. 488. (1) Amend section 154 (FOTRA securities) as follows.

          137. 489. (1) Amend Schedule 9 (loan provisions: special computational provisions) as...

          138. 490. Omit Schedule 13 (discounted securities: income tax provisions).

          139. 491. (1) Amend Schedule 15 (loan relationships: savings and transitional provisions)...

          140. 492. Finance Act 1997 (c. 16)

          141. 493. In section 79 (payments under certain life insurance policies)—

          142. 494. (1) Amend Schedule 12 (leasing arrangements: finance leases and loans)...

          143. 495. Finance Act (No.2) 1997 (c. 58)

          144. 496. In section 30 (tax credits)— (a) in subsection (9) after...

          145. 497. In section 37(7) (interest to be paid gross) for “sections...

          146. 498. In section 48(1) (relief for expenditure on production or acquisition...

          147. 499. Finance Act 1998 (c. 39)

          148. 500. In section 42 (computation of profits of trade, profession or...

          149. 501. Omit section 43 (barristers and advocates in early years of...

          150. 502. (1) Amend section 46 (minor and consequential provisions about computations)...

          151. 503. In section 76(3) (power to make regulations for non-UK residents...

          152. 504. In section 123(7)— (a) for “both” substitute “more”,

          153. 505. Finance Act 1999 (c. 16)

          154. 506. In section 63(1) (treatment of transfer fees under existing contracts)...

          155. 507. (1) Amend section 65 (relevant discounted securities) as follows.

          156. 508. In section 85(7)(b) (advance pricing agreements etc.) after “Taxes Act...

          157. 509. (1) Amend Schedule 6 (tax treatment of receipts by way...

          158. 510. Commonwealth Development Corporation Act 1999 (c. 20)

          159. 511. Finance Act 2000 (c. 17)

          160. 512. (1) Amend section 44 (gifts to charity from certain trusts)...

          161. 513. Omit section 45 (loans to charities).

          162. 514. (1) Amend section 46 (exemption for small trades etc.) as...

          163. 515. Omit section 84 (exemption of payments under New Deal 50plus)....

          164. 516. Omit section 85 (exemption of payments under Employment Zones programmes)....

          165. 517. Omit section 87 (treatment of certain telecommunication rights).

          166. 518. In section 143(2) (power to provide incentives to use electronic...

          167. 519. In section 155 (interpretation) at the end insert “and “ITTOIA...

          168. 520. In Schedule 12 (provision of services through an intermediary), in...

          169. 521. In Schedule 15 (the corporate venturing scheme), in paragraph 99(3),...

          170. 522. In Schedule 22 (tonnage tax), in paragraph 144(3), for “Chapter...

          171. 523. Omit Schedule 23 (treatment of certain telecommunication rights).

          172. 524. Capital Allowances Act 2001 (c. 2)

          173. 525. In section 4 (capital expenditure) for subsection (5) substitute—

          174. 526. (1) Amend section 15 (qualifying activities) as follows.

          175. 527. (1) Amend section 16 (ordinary Schedule A businesses) as follows....

          176. 528. (1) Amend section 17 (furnished holiday lettings businesses) as follows....

          177. 529. In section 20(1) (employments and offices) for “section 314 of...

          178. 530. In section 23(2) (expenditure unaffected by sections 21 and 22)...

          179. 531. In section 28(2) (thermal insulation of industrial buildings) for “Schedule...

          180. 532. In section 33(8)(b) (personal security) for “Schedule A” substitute “property”....

          181. 533. In section 35(1)(a) (expenditure on plant or machinery for use...

          182. 534. In section 38(a) (production of animals etc)—

          183. 535. (1) Amend section 63 (cases in which disposal value is...

          184. 536. (1) Amend section 106 (the designated period) as follows.

          185. 537. (1) Amend section 108 (effect of disposal to connected person...

          186. 538. (1) Amend section 112 (excess allowances: connected persons) as follows....

          187. 539. (1) Amend section 115 (prohibited allowances: connected persons) as follows....

          188. 540. (1) Amend section 122 (short-term leasing by buyer, lessee etc)...

          189. 541. (1) Amend section 125 (other qualifying purposes) as follows.

          190. 542. In section 154(3) (further registration requirement) for paragraph (b) substitute—...

          191. 543. In section 155(1) (changes in the persons carrying on qualifying...

          192. 544. In section 156 (connected persons) for subsection (2) substitute—

          193. 545. In section 162(2) (ring fence trade a separate qualifying activity)—...

          194. 546. In section 248 (ordinary Schedule A businesses)—

          195. 547. In section 252 (mines, transport undertakings etc)—

          196. 548. In section 258(4) (special leasing: income tax) for “taxed under...

          197. 549. (1) Amend section 263 (qualifying activities carried on in partnership)...

          198. 550. (1) Amend section 265 (successions: general) as follows.

          199. 551. In 268(1) (successions by beneficiaries) for paragraph (b) and the...

          200. 552. In section 282 (buildings outside the United Kingdom) for “applicable...

          201. 553. In section 326(1) (interpretation of section 325) in the definition...

          202. 554. In section 331(1)(b) (capital value provisions: interpretation)—

          203. 555. (1) Amend section 353 (lessors and licensors) as follows.

          204. 556. (1) Amend section 354 (buildings temporarily out of use) as...

          205. 557. In section 390(1) (interpretation of section 389) in the definition...

          206. 558. (1) Amend section 392 (Schedule A businesses) as follows.

          207. 559. In section 393B(4) (meaning of “qualifying expenditure”) after “the profits...

          208. 560. (1) Amend section 393T (giving effect to allowances and charges)...

          209. 561. (1) Amend section 406 (reduction where premium relief previously allowed)...

          210. 562. In section 454(1)(c) (qualifying expenditure) after “an election under” insert...

          211. 563. In section 455(4) (excluded expenditure) after “goodwill under” insert “section...

          212. 564. In section 462(3) (disposal values) after “goodwill under” insert “section...

          213. 565. In section 479(4) (persons having qualifying non-trade expenditure: income tax)...

          214. 566. In section 481(5)(b) (anti-avoidance: limit on qualifying expenditure) after “in...

          215. 567. In section 483(c) (meaning of “income from patents”) after “payable...

          216. 568. In section 488(3)(a) (balancing allowances) for “section 113(1)” to “to...

          217. 569. (1) Amend section 529 (giving effect to allowances and charges)...

          218. 570. In section 536(5)(a) (contributions not made by public bodies and...

          219. 571. In section 558(1)(c) (effect of partnership changes) for the words...

          220. 572. (1) Amend section 559 (effect of successions) as follows.

          221. 573. In section 577(1) (definitions) in the definition of “property business”...

          222. 574. (1) Amend Schedule 1 (abbreviations and defined expressions) as follows....

          223. 575. Finance Act 2002 (c. 23)

          224. 576. In section 64(1) (adjustment on change of basis) after “to...

          225. 577. (1) Amend Schedule 16 (community investment tax relief) as follows....

          226. 578. (1) Amend Schedule 22 (computation of profits: adjustment of change...

          227. 579. (1) Amend paragraph 64 of Schedule 25 (transitional provisions concerning...

          228. 580. In Schedule 29 (gains and losses of a company from...

          229. 581. Proceeds of Crime Act 2002 (c. 29)

          230. 582. In section 319(2) (source of income) for “Case 6 of...

          231. 583. (1) Amend Schedule 10 (tax) as follows.

          232. 584. Income Tax (Earnings and Pensions) Act 2003 (c. 1)

          233. 585. In section 6(5) (exception to charge to tax on employment...

          234. 586. In section 61(1) (application of provisions to workers under arrangements...

          235. 587. In section 178 (exception for loans where interest qualifies for...

          236. 588. In section 180(5) (threshold for benefit of loan to be...

          237. 589. In section 189(3)(a) (exception where double charge) for “section 677...

          238. 590. In section 215 for “section 331(1) of ICTA” substitute “section...

          239. 591. In section 302(4) (exemption of consular employees' employment income), in...

          240. 592. After section 325 insert— Health and employment insurance payments (1) No liability to income tax in respect of employment...

          241. 593. In section 357(2) (business entertainment and gifts: exception where employer’s...

          242. 594. In Chapter 2 of Part 5, after section 360 insert—...

          243. 595. In section 394(2) (charge on benefit to which Chapter 2...

          244. 596. In section 397(1) (certain lump sums: calculation of amount taxed...

          245. 597. In section 399(1)(b) (employment-related loans: interest treated as paid) omit...

          246. 598. In section 476 (charge on occurrence of chargeable event) for...

          247. 599. In section 477(7) (chargeable events) for “(charge under Case VI...

          248. 600. (1) Amend section 493 (no charge on acquisition of dividend...

          249. 601. For section 496 (no charge on cash dividend retained for...

          250. 602. In section 497(3) (limitations on charges on shares ceasing to...

          251. 603. In section 502(4)(a) (meaning of “capital receipt” in section 501)...

          252. 604. (1) Amend section 515 (tax advantages and charges under other...

          253. 605. In section 516(4) (approved SAYE option schemes), in the definition...

          254. 606. (1) Amend section 575 (taxable pension income: foreign pensions) as...

          255. 607. (1) Amend section 613 (taxable pension income: foreign annuities) as...

          256. 608. (1) Amend section 631 (taxable pension income: pre-1973 pensions paid...

          257. 609. (1) Amend section 635 (taxable pension income: foreign voluntary annual...

          258. 610. After section 644 insert— Health and employment insurance payments (1) No liability to income tax arises in respect of...

          259. 611. After section 646 insert— Foreign pensions of consular employees (1) No liability to income tax arises in respect of...

          260. 612. In section 655(2) (structure of Part 10) for the entries...

          261. 613. (1) Amend section 679 (taxable social security income: foreign benefits)...

          262. 614. After section 681 insert— Foreign benefits of consular employees (1) No liability to income tax arises in respect of...

          263. 615. After section 716 (alteration of amounts by Treasury order) insert—...

          264. 616. (1) Amend Schedule 1 (abbreviations and defined expressions) as follows....

          265. 617. (1) Amend Schedule 2 (approved share incentive plans) as follows....

          266. 618. (1) Amend Schedule 3 (approved SAYE option schemes) as follows....

          267. 619. In Schedule 4 (approved CSOP schemes), in paragraph 12(3), for...

          268. 620. (1) Amend Schedule 5 (enterprise management incentives) as follows.

          269. 621. Finance Act 2003 (c. 14)

          270. 622. In section 151(2) (non-resident companies: extent of charge to income...

          271. 623. Omit section 176 (foster carers).

          272. 624. (1) Amend Schedule 24 (restriction of deductions for employee benefit...

          273. 625. In Schedule 34 (policies of life insurance etc: miscellaneous amendments),...

          274. 626. Omit Schedule 36 (foster carers).

          275. 627. Courts Act 2003 (c. 39)

          276. 628. Child Trust Funds Act 2004 (c. 6)

          277. 629. Finance Act 2004 (c. 12)

          278. 630. In section 71(3)(b) (collection and recovery of sums to be...

          279. 631. Omit section 97 (exemption from income tax for certain interest...

          280. 632. Omit section 98 (exemption from income tax for certain interest...

          281. 633. Omit section 99 (permanent establishments and “25% associates”).

          282. 634. Omit section 100 (interest payments: exemption notices).

          283. 635. (1) Amend section 101 (payment of royalties without deduction at...

          284. 636. In section 102 (claim for tax deducted at source from...

          285. 637. Omit section 103 (special relationships).

          286. 638. Omit section 104 (anti-avoidance).

          287. 639. Omit section 106 (transitional provision).

          288. 640. In section 119(4) (individuals benefited by film relief) for “,...

          289. 641. In section 123(1) (meaning of “film-related loss”) for “any of...

          290. 642. In section 127(2) (losses derived from exploiting licence: individuals in...

          291. 643. (1) Amend section 130 (“A significant amount of time”) as...

          292. 644. In section 186(1)(b) (scheme investments: income) for “which would” to...

          293. 645. (1) Amend section 189(2) (meaning of “relevant UK earnings”) as...

          294. 646. In section 196(2) (relief for employers in respect of contributions...

          295. 647. In section 197(10)(a) (spreading relief) after “charged under” insert “Part...

          296. 648. In section 199(2)(a) (deemed contributions) at the beginning insert “Part...

          297. 649. In section 200(a) (no other relief for employers in connection...

          298. 650. (1) Amend section 246 (restriction of deduction for non-contributory provision)...

          299. 651. (1) Amend section 249 of FA 2004 (amendments of ITEPA...

          300. 652. In section 280(1) (abbreviations and general index for Part 4)...

          301. 653. (1) Amend Schedule 15 (charge to income tax on benefit...

          302. 654. In paragraph 1(4) and (6) of Schedule 24, for the...

          303. 655. In paragraph 12 of Schedule 35 (pension schemes etc: minor...

          304. 656. (1) Amend Schedule 36 (pension schemes etc: transitional provisions and...

          305. 657. Pensions Act 2004 (c. 35)

          306. 658. In Schedule 3 (restricted information held by the Regulator: certain...

          307. 659. In Schedule 8 (restricted information held by the Board: certain...

    2. SCHEDULE 2

       Transitionals and savings etc.

       1. Part 1 General provisions

          1. 1. Continuity of the law: general

          2. 2. Paragraph 1 does not apply to any change made by...

          3. 3. Any subordinate legislation or other thing which—

          4. 4. (1) Any reference (express or implied) in this Act, another...

          5. 5. (1) Any reference (express or implied) in any enactment, instrument...

          6. 6. (1) Paragraphs 1 to 5 have effect instead of section...

          7. 7. General saving for old transitional provisions and savings

          8. 8. General saving for section 9(5) of ICTA

          9. 9. Partnerships involving companies

          10. 10. Interpretation

       2. Part 2 Changes in the law

          1. 11. (1) This paragraph applies if, in the case of any...

       3. Part 3 Trading income

          1. 12. Unpaid remuneration

          2. 13. Employee benefit contributions

          3. 14. (1) In relation to any time before the coming into...

          4. 15. (1) Subject to sub-paragraph (7), sections 38 to 44 apply...

          5. 16. Car or motor cycle hire

          6. 17. Section 50 does not apply to expenditure which is incurred—...

          7. 18. Crime-related payments

          8. 19. Tenants under taxed leases

          9. 20. (1) This paragraph provides for the application of section 61...

          10. 21. Seconded employees

          11. 22. Training courses for employees

          12. 23. (1) This paragraph applies if— (a) at any time during...

          13. 24. Contributions to urban regeneration companies

          14. 25. Local enterprise agencies

          15. 26. Expenses connected with patents, designs and trade marks

          16. 27. Payments to Export Credits Guarantee Department

          17. 28. Reverse premiums

          18. 29. Sums recovered under insurance policies etc.

          19. 30. Meaning of “designated educational establishment”

          20. 31. Films and sound recordings

          21. 32. (1) Sections 134 and 135 do not apply in relation...

          22. 33. Section 137 does not apply in relation to expenditure which...

          23. 34. Section 138 does not apply in relation to production or...

          24. 35. (1) Any requirement in Chapter 9 of Part 2 for...

          25. 36. Sections 139 and 140 do not apply if—

          26. 37. Sections 139(4) and 141(3) do not apply to any film...

          27. 38. The requirement in section 140 for the acquisition to be...

          28. 39. Certain telecommunication rights

          29. 40. (1) That Chapter also does not apply to an IRU...

          30. 41. Dealers in securities etc: taxation of amounts taken to reserves

          31. 42. Purchase or sale of woodlands

          32. 43. Ministers of religion

          33. 44. Waste disposal

          34. 45. If the trade carried on by the trader was started...

          35. 46. Section 167(2) does not apply for the purposes of sections...

          36. 47. Valuation of trading stock on cessation

          37. 48. Apportionment of profits or losses to tax years before tax year 2005-06

          38. 49. Treatment of business start-up payments received in an overlap period

          39. 50. Profits or losses of a trade, profession or vocation previously chargeable in accordance with section 65(1) of ICTA

          40. 51. Profits of mines, quarries and other concerns not chargeable by reference to a basis period

          41. 52. Overlap profit: pre-April 1994 trades, professions and vocations

          42. 53. (1) This paragraph applies in the case of income which—...

          43. 54. The repeal by this Act of paragraphs 2, 6 and...

          44. 55. Averaging profits of farmers and creative artists

          45. 56. Adjustment on change of basis

          46. 57. (1) Subject to sub-paragraph (3), section 232 applies before 6th...

          47. 58. If— (a) an individual has made an election under paragraph...

          48. 59. Section 104(4) of ICTA (which, despite its repeal, applies in...

          49. 60. Post-cessation receipts

          50. 61. Chapter 18 of Part 2 does not apply in relation...

       4. Part 4 Property income

          1. 62. Apportionment of profits or losses to tax years before tax year 2005-06

          2. 63. Lease premiums

          3. 64. Lease premiums: sums payable instead of rent

          4. 65. Lease premiums: sums payable for surrender of lease

          5. 66. Lease premiums: assignments for profit of lease granted at undervalue

          6. 67. Lease premiums: pre-commencement receipts treated as taxed receipts

          7. 68. Lease premiums: taking account of reductions in pre-commencement receipts

          8. 69. Lease premiums: taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA

          9. 70. Lease premiums: rules for determining effective duration of lease

          10. 71. (1) In relation to a lease granted before 13th June...

          11. 72. Reverse premiums

          12. 73. Deductions for expenditure on energy-saving items

          13. 74. Commercial letting of furnished holiday accommodation

          14. 75. (1) Subject to sub-paragraph (3), section 504A of ICTA (as...

          15. 76. Adjustment on change of basis

          16. 77. Meaning of “mineral royalties”

       5. Part 5 Savings and investment income: general

          1. 78. Open-ended investment companies: saving for powers to make provision corresponding to provisions applicable to unit trusts

          2. 79. Deeply discounted securities issued in accordance with qualifying earn-out right

          3. 80. Deeply discounted securities: deemed transfers of strips on 5th April

          4. 81. Deeply discounted securities: restriction of profits and losses on strips

          5. 82. Deeply discounted securities: saving for charities' losses

          6. 83. Deeply discounted securities: saving for pension trustees' losses

          7. 84. Exclusion of deeply discounted securities from section 711 to 728 of ICTA (accrued income profits)

          8. 85. Gains from contracts for life insurance etc: foreign policies of life insurance

          9. 86. Gains from contracts for life insurance etc: exclusion of pension policies

          10. 87. Gains from contracts for life insurance etc: rights partially assigned

          11. 88. (1) This paragraph applies if a calculation under section 507...

          12. 89. Gains from contracts for life insurance etc: regulations providing for relief where foreign tax chargeable

          13. 90. Gains from contracts for life insurance etc: pure protection group life policies

          14. 91. Gains from contracts for life insurance etc: assessment of trustees etc

          15. 92. Transactions in deposits

          16. 93. (1) This paragraph applies if— (a) a right falling within...

          17. 94. Disposals of futures and options involving guaranteed returns: certain pre-6th February 1998 transactions

          18. 95. Disposals of futures and options involving guaranteed returns: rates of tax for pension trustees

       6. Part 6 Savings and investment income: insurance contracts and policies made before certain dates

          1. 96. Pre-20th March 1968 policies and contracts excluded from Chapter 9 of Part 4

          2. 97. Pre-27th March 1974 policies and contracts: disapplication of section 500(c)

          3. 98. Pre-27th March 1974 contracts: disapplication of section 531(3)(c)

          4. 99. Pre-10th December 1974 contracts for a life annuity: disapplication of section 484(1)(d)

          5. 100. Pre-14th March 1975 policies and contracts: calculation of gains under section 507

          6. 101. Pre-25th March 1982 replacement policies: disapplication of section 542

          7. 102. Certain pre-26th June 1982 policies and contracts excluded from Chapter 9 of Part 4

          8. 103. Certain pre-18th November 1983 policies not foreign policies of life insurance

          9. 104. Certain pre-23rd February 1984 policies not foreign capital redemption policies

          10. 105. Pre-14th March 1984 policies: disregard of amounts deducted and repaid after tax relief by deduction from premiums abolished

          11. 106. Certain pre-20th March 1985 policies: application of section 529(1)

          12. 107. Pre-14th March 1989 qualifying policies: application of section 485(2)(b) and (3)(b)

          13. 108. Pre-14th March 1989 policies and contracts: application of section 501

          14. 109. Contracts in accounting periods beginning before 1st January 1992: disapplication of sections 530 and 539(3)

          15. 110. Certain pre-17th March 1998 policies: application of section 529(1)

          16. 111. Certain pre-17th March 1998 policies not foreign policies of life insurance

          17. 112. Pre-17th March 1998 policy or contract: UK resident trustees

          18. 113. Certain pre-23rd March 1999 policies not foreign capital redemption policies

          19. 114. Pre-9th April 2003 policy or contract: UK resident trustees

          20. 115. Pre-9th April 2003 policy or contract: loans to trustees

          21. 116. Pre-9th April 2003 policy: excepted group life policies

          22. 117. Pre-3rd March 2004 policy or contract: calculation of deficiencies

          23. 118. Pre-1st January 2005 contracts for immediate needs annuities: income tax treated as paid

       7. Part 7 Savings and investment income: gains from contracts for life insurance etc. (personal portfolio bonds)

          1. 119. Pre-17th March 1998 contract or policy: conditions to be met for contract or policy not to be a personal portfolio bond

          2. 120. The date condition

          3. 121. The non-variation condition

          4. 122. The first selection condition

          5. 123. The second selection condition

          6. 124. Policy holders becoming UK resident after 17th March 1998

          7. 125. Policy holders becoming permanently UK resident after 17th March 1998

          8. 126. Meaning of “permitted index”

          9. 127. Meaning of “permitted property”

          10. 128. Other definitions

       8. Part 8 Miscellaneous income

          1. 129. Intellectual property: contributions to expenditure not made by public bodies nor eligible for tax relief

          2. 130. Certain telecommunication rights

          3. 131. (1) That Chapter also does not apply to an IRU...

          4. 132. Income treated as income of settlor: exception for pension income

          5. 133. Amounts treated as income of settlor: income paid to unmarried minor children of settlor

          6. 134. Amounts treated as income of settlor: capital sums paid to settlor by trustees of settlement

          7. 135. Amounts treated as income of settlor: capital sums paid to settlor by body connected with settlement

          8. 136. Beneficiaries' income from estates in administration: basic amounts

          9. 137. Beneficiaries' income from estates in administration: income treated as bearing income tax

       9. Part 9 Exempt income

          1. 138. Ulster savings certificates

          2. 139. SAYE interest

          3. 140. A European authorised institution arrangement is not an institutional arrangement...

          4. 141. (1) Neither— (a) the Treasury specification rules, nor

          5. 142. Venture capital trust dividends: shares acquired before the tax year 2004-05

          6. 143. Purchased life annuity payments: old determinations concerning capital elements

          7. 144. Purchased life annuity payments: carry forward of excess capital elements

          8. 145. Purchased life annuity payments: penalty for false statements

          9. 146. Certain annual payments by individuals

          10. 147. Annual payments for non-taxable consideration

          11. 148. Periodical payments of personal injury damages etc.

       10. Part 10 Foster-care relief

           1. 149. (1) This paragraph applies if— (a) a disposal event is...

       11. Part 11 Foreign income: special rules

           1. 150. Relevant foreign income charged on remittance basis: income arising before the tax year 2005-06

           2. 151. Relevant foreign income charged on remittance basis: delayed remittances

           3. 152. Relief for backdated pensions charged on arising basis

           4. 153. Unremittable income that arose before the tax year 2005-06

       12. Part 12 Other provisions

           1. 154. Unpaid remuneration: non-trades and non-property businesses

           2. 155. Employee benefit contributions: non-trades and non-property businesses

           3. 156. (1) Subject to sub-paragraph (3), section 866 applies before 6th...

           4. 157. Crime-related payments: non-trades and non-property businesses

           5. 158. Apportionment of miscellaneous profits or losses to tax years before tax year 2005-06

           6. 159. General deduction rules

           7. 160. Section 820 of ICTA

           8. 161. Amendments of Part 4 of FA 2004 (pension schemes etc.)

    3. SCHEDULE 3

       Repeals and revocations

    4. SCHEDULE 4

       Abbreviations and defined expressions

       1. Part 1 Abbreviations of Acts

       2. Part 2 Index of expressions defined in this Act etc.