Income Tax (Trading and Other Income) Act 2005 Explanatory Notes

  • Explanatory Notes Table of contents

  1. Summary

  2. Background

    1. The Tax Law Rewrite Project

    2. Steering Committee

    3. Consultative Committee

    4. Consultation

  3. This Act - the End of the Schedules for Income Tax

    1. Features of the Act

  4. The Act

    1. Glossary

  5. Commentary on Sections

    1. Part 1: Overview

      1. Section 1: Overview of Act

      2. Section 2: Overview of priority rules

    2. Part 2: Trading income

      1. Overview

      2. Chapter 1: Introduction

        1. Section 3: Overview of Part 2

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

      3. Chapter 2: Income taxed as trade profits

        1. Overview

        2. Section 5: Charge to tax on trade profits

        3. Section 6: Territorial scope of charge to tax

        4. Section 7: Income charged

        5. Section 8: Person liable

        6. Section 9: Farming and market gardening

        7. Section 10: Commercial occupation of land other than woodlands

        8. Section 11: Commercial occupation of woodlands

        9. Section 12: Profits of mines, quarries and other concerns

        10. Section 13: Visiting performers

        11. Section 14: Visiting performers: supplementary

        12. Section 15: Divers and diving supervisors

        13. Section 16: Oil extraction and related activities

        14. Section 17: Effect of becoming or ceasing to be a UK resident

        15. Section 18: Effect of company starting or ceasing to be within charge to income tax

        16. Section 19: Tied premises

        17. Section 20: Caravan sites where trade carried on

        18. Section 21: Surplus business accommodation

        19. Section 22: Payments for wayleaves

        20. Section 23: Rent-a-room and foster-care relief

      4. Chapter 3: Trade profits: basic rules

        1. Section 24: Professions and vocations

        2. Section 25: Generally accepted accounting practice

        3. Section 26: Losses calculated on same basis as profits

        4. Section 27: Receipts and expenses

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

        6. Section 29: Interest

        7. Section 30: Animals kept for trade purposes

        8. Section 31: Relationship between rules prohibiting and allowing deductions

      5. Chapter 4: Trade profits: rules restricting deductions

        1. Overview

        2. Section 32: Professions and vocations

        3. Section 33: Capital expenditure

        4. Section 34: Expenses not wholly and exclusively for trade and unconnected losses

        5. Section 35: Bad and doubtful debts

        6. Section 36: Unpaid remuneration

        7. Section 37: Unpaid remuneration: supplementary

        8. Employee benefit contributions

          1. Overview

          2. Section 38: Restriction of deductions

          3. Section 39: Making of “employee benefit contributions”

          4. Section 40: Provision of qualifying benefits

          5. Section 41: Timing and amount of certain qualifying benefits

          6. Section 42: Provision or payment out of employee benefit contributions

          7. Section 43: Profits calculated before end of 9 month period

          8. Section 44: Interpretation of sections 38 to 44

          9. Section 45: Business entertainment and gifts: general rule

          10. Section 46: Business entertainment: exceptions

          11. Section 47: Business gifts: exceptions

          12. Section 48: Car or motor cycle hire

          13. Section 49: Car or motor cycle hire: supplementary

          14. Section 50: Hiring cars (but not motor cycles) with low carbon dioxide emissions

          15. Section 51: Patent royalties

          16. Section 52: Exclusion of double relief for interest

          17. Section 53: Social security contributions

          18. Section 54: Penalties, interest and VAT surcharges

          19. Section 55: Crime-related payments

      6. Chapter 5: Trade profits: rules allowing deductions

        1. Overview

        2. Section 56: Professions and vocations

        3. Section 57: Pre-trading expenses

        4. Section 58: Incidental costs of obtaining finance

        5. Section 59: Convertible loans and loan stock etc.

        6. Section 60: Tenants under taxed leases: introduction

        7. Section 61: Tenants occupying land for purposes of trade treated as incurring expenses

        8. Section 62: Limit on deductions if tenant entitled to mineral extraction allowance

        9. Section 63: Tenants dealing with land as property employed for purposes of trade

        10. Section 64: Restrictions on section 61 expenses: lease premium receipts

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

        12. Section 66: Corporation tax receipts treated as taxed receipts

        13. Section 67: Restrictions on section 61 expenses: corporation tax receipts

        14. Section 68: Replacement and alteration of trade tools

        15. Section 69: Payments for restrictive undertakings

        16. Section 70: Employees seconded to charities and educational establishments

        17. Section 71: Educational establishments

        18. Section 72: Payroll deduction schemes: contributions to agents’ expenses

        19. Section 73: Counselling and other outplacement services

        20. Section 74: Retraining courses

        21. Section 75: Retraining courses: recovery of tax

        22. Sections 76 to 80: Redundancy payments etc

          1. Overview

        23. Section 76: Redundancy payments and approved contractual payments

        24. Section 77: Payments in respect of employment wholly in employer’s trade

        25. Section 78: Payments in respect of employment in more than one capacity

        26. Section 79: Additional payments

        27. Section 80: Payments made by the Government

        28. Section 81: Personal security expenses

        29. Section 82: Contributions to local enterprise organisations or urban regeneration companies

        30. Section 83: Meaning of “local enterprise organisation”

        31. Section 84: Approval of local enterprise agencies

        32. Section 85: Supplementary provisions with respect to approvals

        33. Section 86: Meaning of “urban regeneration company”

        34. Section 87: Expenses of research and development

        35. Section 88: Payments to research associations, universities etc

        36. Section 89: Expenses connected with patents

        37. Section 90: Expenses connected with designs or trade marks

        38. Section 91: Payments to Export Credits Guarantee Department

        39. Section 92: Expenses connected with foreign trades

        40. Section 93: Allocation of expenses

        41. Section 94: Family expenses

      7. Chapter 6: Trade Profits: Receipts

        1. Overview

        2. Section 95: Profession and vocations

        3. Section 96: Capital receipts

        4. Section 97: Debts incurred and later released

        5. Section 98: Acquisition of trade: receipts from transferor’s trade

        6. Section 99: Reverse premiums

        7. Section 100: Excluded cases

        8. Section 101: Tax treatment of reverse premiums

        9. Section 102: Arrangements not at arm’s length

        10. Section 103: Connected persons and property arrangements

        11. Section 104: Distribution of assets of mutual concerns

        12. Section 105: Industrial development grants

        13. Section 106: Sums recovered under insurance policies etc.

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

        1. Section 107: Professions and vocations

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

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

        4. Section 110: Meaning of “designated educational establishment”

      9. Chapter 8: Trade profits: Herd basis rules

        1. Overview

        2. Section 111: Election for application of herd basis rules

        3. Section 112: Meaning of “animal”, “herd”, “production herd” etc.

        4. Section 113: Other interpretative provisions

        5. Section 114: Initial cost of herd and value of herd

        6. Section 115: Addition of animals to herd

        7. Section 116: Replacement of animals in herd

        8. Section 117: Amount of receipt if old animal slaughtered under disease control order

        9. Section 118: Sale of animals from herd

        10. Section 119: Sale of whole or substantial part of herd

        11. Section 120: Acquisition of new herd begun within 5 years of sale

        12. Section 121: Section 120: sale outside farmer's control

        13. Section 122: Replacement of part sold begun within 5 years of sale

        14. Section 123: Section 122: sale outside farmer's control

        15. Section 124: Herd basis elections

        16. Section 125: Five year gap in which no production herd kept

        17. Section 126: Slaughter under disease control order

        18. Section 127: Preventing abuse of the herd basis rules

        19. Section 128: Information if election made

        20. Section 129: Further assessment etc. if herd basis rules apply

      10. Chapter 9: Trade profits: films and sound recordings

        1. Overview

        2. Section 130: Expenditure to which this Chapter applies

        3. Section 131: Meaning of “film” and related expressions

        4. Section 132: Meaning of “original master version” and “certified master version”

        5. Section 133: Meaning of “relevant period”

        6. Section 134: Expenditure treated as revenue in nature

        7. Section 135: Films and sound recordings: production or acquisition expenditure

        8. Section 136: Application of provisions about certified master versions

        9. Section 137: Certified master versions: preliminary expenditure

        10. Section 138: Certified master versions: production or acquisition expenditure

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

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

        13. Section 141: Meaning of “total production expenditure”

        14. Section 142: When expenditure is incurred

        15. Section 143: Election for sections 134 to 140 not to apply

        16. Section 144: Meaning of “genuinely intended for theatrical release”

      11. Chapter 10: Trade profits: certain telecommunication rights

        1. Overview

        2. Section 145: Professions and vocations

        3. Section 146: Meaning of “relevant telecommunication right”

        4. Section 147: Expenditure and receipts treated as revenue in nature

        5. Section 148: Credits or debits arising from revaluation

      12. Chapter 11: Trade Profits: Other specific trades

        1. Overview

        2. Section 149:Taxation of amounts taken to reserves

        3. Section 150: Conversion etc. of securities held as circulating capital

        4. Section 151: Exchanges of gilts for gilts strips

        5. Section 152: Consolidation of gilt strips

        6. Section 153: Meaning of “gilt-edged security” and “strip”

        7. Section 154: Regulations for determining market value of securities or strips

        8. Section 155: Levies and repayments under FISMA 2000

        9. Section 156: Purchase or sale of woodlands

        10. Section 157: Relief in respect of mineral royalties

        11. Section 158: Lease premiums etc.: reduction of receipts

        12. Section 159: Ministers of religion

        13. Section 160: Alternative basis of calculation in early years of practice

        14. Section 161: Mineral exploration and access

        15. Section 162: Payments by persons liable to pool betting duty

        16. Section 163: Deduction for deemed employment payment

        17. Section 164: Special rules for partnerships

        18. Section 165: Deduction for site preparation expenditure

        19. Section 166: Allocation of site preparation expenditure

        20. Section 167: Site preparation expenditure: supplementary

        21. Section 168: Site restoration payments

        22. Section 169: Cemeteries and crematoria: introduction

        23. Section 170: Deduction for capital expenditure

        24. Section 171: Allocation of ancillary capital expenditure

        25. Section 172: Exclusion of expenditure met by subsidies

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

        1. Overview

        2. Section 173: Valuation of trading stock on cessation

        3. Section 174: Meaning of “trading stock”

        4. Section 175: Basis of valuation of trading stock

        5. Section 176: Sale basis of valuation: sale to unconnected person

        6. Section 177: Sale basis of valuation: sale to connected person

        7. Section 178: Sale basis of valuation: election by connected persons

        8. Section 179: Connected persons

        9. Section 180: Cost to buyer of stock valued on sale basis of valuation

        10. Section 181: Meaning of “sale” and related expressions

        11. Section 182:Valuation of work in progress on cessation

        12. Section 183: Meaning of “work in progress”

        13. Section 184: Basis of valuation of work in progress

        14. Section 185: Election for valuation at cost

        15. Section 186: Determination of questions by Commissioners

      14. Chapter 13: Deductions from profits: unremittable amounts

        1. Overview

        2. Section 187: Professions and vocations

        3. Section 188: Application of Chapter

        4. Section 189: Relief for unremittable amounts

        5. Section 190: Restrictions on relief

        6. Section 191: Withdrawal of relief

      15. Chapter 14: Disposal and acquisition of know-how

        1. Overview

        2. Section 192: Meaning of “know-how” etc.

        3. Section 193: Disposal of know-how if trade continues to be carried on

        4. Section 194: Disposal of know-how as part of disposal of all or part of a trade

        5. Section 195: Seller controlled by buyer etc.

      16. Chapter 15: Basis periods

        1. Overview

        2. Section 196: Professions and vocations

        3. Section 197: Meaning of “accounting date”

        4. Section 198: General rule

        5. Section 199: First tax year

        6. Section 200: Second tax year

        7. Section 201: Tax year in which there is no accounting date

        8. Section 202: Final tax year

        9. Section 203: Apportionment etc. of profits to basis periods

        10. Section 204: Meaning of “overlap period” and “overlap profit”

        11. Section 205: Deduction for overlap profit in final tax year

        12. Section 206: Restriction on bringing losses into account twice

        13. Section 207: Treatment of business start-up payments received in an overlap period

        14. Section 208: When the late accounting date rules apply

        15. Section 209: Rule if there is an accounting date

        16. Section 210: Rules if there is no accounting date

        17. Section 211: Treating middle date as accounting date

        18. Section 212: Consequence of treating middle date as accounting date

        19. Section 213: Circumstances in which middle date not treated as accounting date

        20. Section 214: When a change of accounting date occurs

        21. Section 215: Change of accounting date in third tax year

        22. Section 216: Change of accounting date in later tax year

        23. Section 217: Conditions for basis period to end with new accounting date

        24. Section 218: Commercial reasons for change of accounting date

        25. Section 219: The year after an ineffective change of accounting date

        26. Section 220: Deduction for overlap profit on change of accounting date

      17. Chapter 16: Averaging profits of farmers and creative artists

        1. Overview

        2. Section 221: Claim for averaging of fluctuating profits

        3. Section 222: Circumstances in which claim may be made

        4. Section 223: Adjustment of profits

        5. Section 224: Effect of adjustment

        6. Section 225: Effect of later adjustment of profits

      18. Chapter 17: Adjustment income

        1. Overview

        2. Section 226: Professions and vocations

        3. Section 227: Application of Chapter

        4. Section 228: Adjustment income and adjustment expense

        5. Section 229: Income charged

        6. Section 230: Person liable

        7. Section 231: Calculation of the adjustment

        8. Section 232: Treatment of adjustment income

        9. Section 233: Treatment of adjustment expense

        10. Section 234: No adjustment for certain expenses previously brought into account

        11. Section 235: Cases where adjustment not required until assets realised or written off

        12. Section 236: Change from realisation basis to mark to market

        13. Section 237: Election for spreading if section 236 applies

        14. Section 238: Spreading on ending of exemption for barristers and advocates

        15. Section 239: Election to accelerate charge under section 238

        16. Section 240: Liability of personal representatives if person liable dies

      19. Chapter 18: Post-cessation receipts

        1. Overview

        2. Section 241: Professions and vocations

        3. Section 242: Charge to tax on post-cessation receipts

        4. Section 243: Extent of charge to tax

        5. Section 244: Income charged

        6. Section 245: Person liable

        7. Section 246: Basic meaning of “post-cessation receipt”

        8. Section 247: Other rules about what counts as post-cessation receipts

        9. Section 248: Debts paid after cessation

        10. Section 249: Debts released after cessation

        11. Section 250: Receipts relating to post-cessation expenditure

        12. Section 251: Transfer of rights if transferee does not carry on trade

        13. Section 252: Transfer of trading stock or work in progress

        14. Section 253: Lump sums paid to personal representatives for copyright etc.

        15. Section 254: Allowable deductions

        16. Section 255: Further rules about allowable deductions

        17. Section 256: Treatment of post-cessation receipts

        18. Section 257: Election to carry back

      20. Chapter 19: Miscellaneous and supplementary

        1. Section 258: Changes in trustees and personal representatives

        2. Section 259: Meaning of “statutory insolvency arrangement”

    3. Part 3: Property income

      1. Overview

      2. Chapter 1: Introduction

        1. Section 260: Overview of Part 3

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

        3. Section 262: Priority between Chapters within Part 3

      3. Chapter 2: Property businesses

        1. Section 263: Introduction

        2. Section 264: UK property business

        3. Section 265: Overseas property business

        4. Section 266: Meaning of “generating income from land”

        5. Section 267: Activities not for generating income from land

      4. Chapter 3: Profits of property businesses: basic rules

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

        2. Section 269: Territorial scope of charge to tax

        3. Section 270: Income charged

        4. Section 271: Person liable

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

        6. Section 273: Amounts not brought into account as part of a property business

        7. Section 274: Relationship between rules restricting and permitting deductions

        8. Section 275: Apportionment of profits to tax year

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

        1. Overview

        2. Section 276: Introduction

        3. Section 277: Lease premiums

        4. Section 278: Amount treated as lease premium where work required

        5. Section 279: Sums payable instead of rent

        6. Section 280: Sums payable for surrender of lease

        7. Section 281: Sums payable for variation or waiver of term of lease

        8. Section 282: Assignments for profit of lease granted at undervalue

        9. Section 283: Provisions supplementary to section 282

        10. Section 284: Sales with right to reconveyance

        11. Section 285: Sale and leaseback transactions

        12. Section 286: Provisions supplementary to sections 284 and 285

        13. Section 287: Circumstances in which additional calculation rule applies

        14. Section 288: The additional calculation rule

        15. Section 289: The additional calculation rule: special cases

        16. Section 290: Meaning of “unused amount” and “unreduced amount”

        17. Section 291: Deductions for expenses under section 292

        18. Section 292: Tenants under taxed leases treated as incurring expenses

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

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

        21. Section 295: Limit on reductions and deductions

        22. Section 296: Corporation tax receipts treated as taxed receipts

        23. Section 297: Taking account of reductions in corporation tax receipts

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

        25. Section 299: Payment of tax by instalments

        26. Section 300: Statement of accuracy for purposes of section 282

        27. Section 301: Claim for repayment of tax payable by virtue of section 284

        28. Section 302: Claim for repayment of tax payable by virtue of section 285

        29. Section 303: Rules for determining effective duration of lease

        30. Section 304: Applying the rules in section 303

        31. Section 305: Information about effective duration of lease

        32. Section 306: Provisions about premiums

        33. Section 307: Interpretation

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

        1. Overview

        2. Section 308: Furnished lettings

        3. Section 309: Rent-a-room relief

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

        5. Section 311: Reverse premiums

        6. Section 312: Deduction for expenditure on energy saving items

        7. Section 313: Restrictions on relief

        8. Section 314: Regulations

        9. Section 315: Deduction for expenditure on sea walls

        10. Section 316: Transfer of interest in premises

        11. Section 317: Ending of lease of premises

        12. Section 318: Transfer involving company within the charge to corporation tax

        13. Section 319: Relief in respect of mineral royalties

        14. Section 320: Nature of item apportioned on sale of estate or interest in land

        15. Section 321: Mutual business

      7. Chapter 6: Commercial letting of furnished holiday accommodation

        1. Overview

        2. Section 322: Introduction

        3. Section 323: Meaning of “commercial letting of furnished holiday accommodation”

        4. Section 324: Meaning of “relevant period” in sections 325 and 326

        5. Section 325: Meaning of “qualifying holiday accommodation”

        6. Section 326: Under-used holiday accommodation: averaging elections

        7. Section 327: Capital allowances and loss relief

        8. Section 328: Earned income and relevant UK earnings for pension purposes

      8. Chapter 7: Adjustment income

        1. Overview

        2. Section 329: Application of Chapter

        3. Section 330: Adjustment income and adjustment expense

        4. Section 331: Income charged

        5. Section 332: Person liable

        6. Section 333: Treatment of adjustment income

        7. Section 334: Treatment of adjustment expense

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

        1. Overview

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

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

        4. Section 337: Income charged

        5. Section 338: Person liable

        6. Section 339: Deduction for management expenses of owner of mineral rights

        7. Section 340: Relief in respect of mineral royalties

        8. Section 341: Meaning of “mineral lease or agreement” and “mineral royalties”

        9. Section 342: Extended meaning of “mineral royalties” etc. in Northern Ireland

        10. Section 343: Power of Board to determine what counts as “mineral royalties”

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

        1. Overview

        2. Section 344: Charge to tax on rent receivable for a UK electric-line wayleave

        3. Section 345: Meaning of “rent receivable for a UK electric-line wayleave”

        4. Section 346: Extent of charge to tax

        5. Section 347: Income charged

        6. Section 348: Person liable

      11. Chapter 10: Post-cessation receipts

        1. Overview

        2. Section 349: Charge to tax on post-cessation receipts

        3. Section 350: Extent of charge to tax

        4. Section 351: Income charged

        5. Section 352: Person liable

        6. Section 353: Basic meaning of “post-cessation receipt”

        7. Section 354: Other rules about what counts as a “post-cessation receipt”

        8. Section 355: Transfer of rights if transferee does not carry on UK property business

        9. Section 356: Application to Schedule A businesses

      12. Chapter 11: Overseas property income

        1. Section 357: Charge to tax on overseas property income

        2. Section 358: Meaning of “overseas property income”

        3. Section 359: Income charged

        4. Section 360: Person liable

      13. Chapter 12: Supplementary

        1. Section 361: Changes in trustees and personal representatives

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

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

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

    4. Part 4: Savings and investment income

      1. Overview

      2. Structure of Chapters

      3. Chapter 1: Introduction

        1. Section 365: Overview of Part 4

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

        3. Section 367:Priority between Chapters within Part 4

        4. Section 368: Territorial scope of Part 4 charges

      4. Chapter 2: Interest

        1. Overview

        2. Section 369: Charge to tax on interest

          1. Building Societies

          2. Open-ended Investment Companies

          3. Authorised Unit Trusts

          4. Industrial and Provident Societies

        3. Section 370: Income charged

        4. Section 371: Person liable

        5. Section 372: Building society dividends

        6. Section 373: Open-ended investment company interest distributions

        7. Section 374: Date when interest payments under section 373 made

        8. Section 375: Interpretation of sections 373 and 374

        9. Section 376: Authorised unit trust interest distributions

        10. Section 377: Date when interest payments under section 376 made

        11. Section 378: Interpretation of sections 376 and 377

        12. Section 379: Industrial and provident society payments

        13. Section 380: Funding bonds

        14. Section 381: Discounts

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

        Introduction

        1. Section 382: Contents of Chapter

        2. Section 383: Charge to tax on dividends and other distributions

        3. Section 384: Income charged

        4. Section 385: Person liable

        5. Section 386: Open-ended investment company dividend distributions

        6. Section 387: Date when dividends paid under section 386

        7. Section 388: Interpretation of sections 386 and 387

        8. Section 389: Authorised unit trust dividend distributions

        9. Section 390: Date when dividends paid under section 389

        10. Section 391: Interpretation of sections 389 and 390

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

          1. Overview

          2. Section 392: SIP shares: introduction

          3. Section 393: Later charge where cash dividends retained in SIPs are paid over

          4. Section 394: Distribution when dividend shares cease to be subject to SIP

          5. Section 395: Reduction in tax due in cases within section 394

        12. Section 396: Interpretation of sections 392 to 395

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

        14. Section 398: Increase in amount or value of dividends where tax credit available

        15. Section 399: Qualifying distributions received by persons not entitled to tax credits

        16. Section 400: Non-qualifying distributions

        17. Section 401: Relief: qualifying distribution after linked non-qualifying distribution

      6. Chapter 4: Dividends from non-UK resident companies

        1. Overview

        2. Section 402: Charge to tax on dividends from non-UK resident companies

        3. Section 403: Income charged

        4. Section 404: Person liable

        5. Section 405: SIP shares: introduction

        6. Section 406: Later charge where cash dividends retained in SIPs are paid over

        7. Section 407: Dividend payment when dividend shares cease to be subject to SIP

        8. Section 408: Reduction in tax due in cases within 407

      7. Chapter 5: Stock dividends from UK resident companies

        1. Overview

        2. Section 409: Charge to tax on stock dividend income

        3. Section 410: When stock dividend income arises

        4. Section 411: Income charged

        5. Section 412: Cash equivalent of share capital

        6. Section 413: Person liable

        7. Section 414: Income tax treated as paid

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

        1. Section 415: Charge to tax under Chapter 6

        2. Section 416: Income charged

        3. Section 417: Person liable

        4. Section 418: Relief where borrowers liable as settlors

        5. Section 419: Loans and advances to persons who die

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

        7. Section 421: Income tax treated as paid

      9. Chapter 7: Purchased Life Annuity Payments

        1. Overview

        2. Section 422: Charge to tax on purchased life annuity payments

        3. Section 423: Meaning of “purchased life annuity”

        4. Section 424: Income charged

        5. Section 425Person liable

        6. Section 426: Annuity payments received after deduction of tax

      10. Chapter 8: Profits from deeply discounted securities

        1. Overview

        2. Section 427: Charge to tax on profits from deeply discounted securities

        3. Section 428: Income charged

        4. Section 429: Person liable

        5. Section 430: Meaning of “deeply discounted security”

        6. Section 431: Excluded occasions of redemption

        7. Section 432: Securities which are not deeply discounted securities

        8. Section 433: Meaning of “excluded indexed security”

        9. Section 434: Securities issued in separate tranches: preliminary

        10. Section 435: Securities issued in separate tranches: basic rule

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

        12. Section 437: Transactions which are disposals

        13. Section 438: Timing of transfers and acquisitions

        14. Section 439: Calculating the profit from disposals

        15. Section 440: Market value disposals

        16. Section 441: Market value acquisitions

        17. Section 442: Securities issued in accordance with qualifying earn-out right

        18. Section 443: Application of this Chapter to strips of government securities

        19. Section 444: Meaning of “strip” in Chapter 8

        20. Section 445: Strips of government securities: acquisitions and disposals

        21. Section 446: Strips of government securities: relief for losses

        22. Section 447: Restriction of profits on strips by reference to original acquisition cost

        23. Section 448: Restriction of losses on strips by reference to original acquisition cost

        24. Section 449: Strips of government securities: manipulation of acquisition, sale or redemption payments

        25. Section 450: Market value of strips etc.

        26. Section 451: Market value of strips etc. quoted in foreign stock exchange lists

        27. Section 452: Power to modify this Chapter for strips

        28. Section 453: Application of sections 454 to 456

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

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

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

        32. Section 457: Trustees

        33. Section 458: Non-UK resident trustees

        34. Section 459: Transfer of assets abroad

        35. Section 460: Minor definitions

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

        1. Overview

        2. Section 461: Charge to tax under Chapter 9

        3. Section 462: When gains arise from policies and contracts

        4. Section 463: Income charged

        5. Section 464: Person liable for tax: introduction

        6. Section 465: Person liable: individuals

        7. Section 466: Person liable: personal representatives

        8. Section 467: Person liable: UK resident trustees

        9. Section 468: Non-UK resident trustees and foreign institutions

        10. Section 469: Two or more persons interested in policy or contract

        11. Section 470: Interests in rights under a policy or contract for section 469

        12. Section 471: Determination of shares etc.

        13. Section 472: Trusts created by two or more persons

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

        15. Section 474: Special rules: qualifying policies

        16. Section 475: Special rules: personal portfolio bonds

        17. Section 476: Special rules: foreign policies

        18. Section 477: Special rules: certain older policies and contracts

        19. Section 478: Exclusion of mortgage repayment policies

        20. Section 479: Exclusion of pension policies

        21. Section 480: Exclusion of excepted group life policies

        22. Section 481: Excepted group life policies: conditions about benefits

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

        24. Section 483: Exclusion of credit union group life policies

        25. Section 484: When chargeable events occur

        26. Section 485: Disregard of certain events in relation to qualifying policies

        27. Section 486: Exclusion of maturity of capital redemption policies in certain circumstances

        28. Section 487: Disregard of certain assignments

        29. Section 488: Disregard of some events after alterations of life insurance policy terms

        30. Section 489: Conditions applicable to alterations of life insurance policy terms

        31. Section 490: Last payment under guaranteed income bonds etc. treated as total surrender

        32. Calculating gains: general

          1. Overview

          2. Section 491: Calculating gains: general rules

          3. Section 492: The total benefit value of a policy or contract

          4. Section 493: The value of a policy or contract

          5. Section 494: The total allowable deductions for a policy or contract

          6. Section 495: Disregard of certain amounts in calculating gains under section 491

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

          8. Section 497: Disregard of trivial inducement benefits

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

          1. Overview

          2. Section 498: Requirement for periodic calculations in part surrender or assignment cases

          3. Section 499: Meaning of “insurance year” and “final insurance year”

          4. Section 500: Events treated as part surrenders

          5. Section 501: Part surrenders: loans

          6. Section 502: Exception from section 501 for loans to buy life annuities

          7. Section 503: Exception from section 501 for certain loans under qualifying policies

          8. Section 504: Part surrenders: payments under guaranteed income bonds etc.

          9. Section 505: Assignments etc. involving co-ownership

          10. Section 506: Assignments occurring when there is a co-ownership transaction

          11. Section 507: Method for making periodic calculations under section 498

          12. Section 508: The value of rights partially surrendered or assigned

          13. Section 509: Chargeable events in certain cases where periodic calculations show gains

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

          1. Overview

          2. Section 510: Requirement for transaction-related calculations in certain part surrender and assignment cases

          3. Section 511: Method for making transaction-related calculations under section 510

          4. Section 512: Available premium left for relevant transaction

          5. Section 513: Special rules for part surrenders and assignments in final insurance year

          6. Section 514: Chargeable events where transaction-related calculations show gains

        35. Section 515: Requirement for annual calculations in relation to personal portfolio bonds

        36. Section 516: Meaning of “personal portfolio bond”

        37. Section 517: Policies and contracts which are not personal portfolio bonds

        38. Section 518: The index categories

        39. Section 519: The index selection conditions

        40. Section 520: The property categories

        41. Section 521: The property selection conditions

        42. Section 522: Method for making annual calculations under section 515

        43. Section 523: The total amount of personal portfolio bond excesses

        44. Section 524: The total amount of part surrender gains

        45. Section 525: Chargeable events where annual calculations show gains

        46. Section 526: Power to make regulations about personal portfolio bonds

        47. Section 527: Reduction for sums taken into account otherwise than under Chapter 9

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

        49. Section 529: Exceptions to section 528

        50. Section 530: Income tax treated as paid etc.

        51. Section 531: Exceptions to section 530

        52. Section 532: Relief for policies and contracts with European Economic Area insurers

        53. Section 533: Meaning of “comparable EEA tax charge”

        54. Section 534: Regulations providing for relief in other cases where foreign tax chargeable

        55. Section 535: Top slicing relief

        56. Section 536: Top slicing relieved liability: one chargeable event

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

        58. Section 538: Recovery of tax from trustees

        59. Section 539: Relief for deficiencies

        60. Section 540: When deficiencies arise: events following calculation events

        61. Section 541: Calculation of deficiencies

        62. Section 542: Replacement of qualifying policies

        63. Section 543: Issue time of qualifying policy replacing foreign policy

        64. Section 544: Application of Chapter to policies and contracts in which companies interested

        65. Section 545: Minor definitions

        66. Section 546: Table of provisions subject to special rules for older policies and contracts

      12. Chapter 10: Distributions from unauthorised unit trusts

        1. Section 547: Charge to tax under Chapter 10

        2. Section 548: Income charged

        3. Section 549: Person liable

        4. Section 550: Income tax treated as paid

      13. Chapter 11: Transactions in deposits

        1. Overview

        2. Section 551: Charge to tax on profits from disposal of deposit rights

        3. Section 552: Meaning of “deposit rights”

        4. Section 553: Income charged

        5. Section 554: Person liable

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

        1. Overview

        2. Section 555: Charge to tax under Chapter 12

        3. Section 556: Income charged

        4. Section 557: Person liable

        5. Section 558: Meaning of “future”, “option” etc.

        6. Section 559: When disposals involve guaranteed returns

        7. Section 560: Production of guaranteed returns

        8. Section 561: The return from one or more disposals

        9. Section 562: When disposal of futures or options occur: general

        10. Section 563: Timing of certain grants of options where related disposals occur later

        11. Section 564: Deemed disposal where futures run to delivery or options are exercised

        12. Section 565: Interpretation of section 564

        13. Section 566: When transactions are related

        14. Section 567: Losses

        15. Section 568: Special rule for certain income of trustees

        16. Section 569: Anti-avoidance: transfer of assets abroad

      15. Chapter 13: Sales of foreign dividend coupons

        1. Overview

        2. Section 570: Charge to tax under Chapter 13

        3. Section 571: Meaning of “foreign holdings” etc

        4. Section 572: Income charged

        5. Section 573: Person liable

    5. Part 5: Miscellaneous income

      1. Overview

      2. Structure of Chapters

      3. Part 5: Chapter 1: Introduction

        1. Section 574: Overview of Part 5

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

        3. Section 576: Priority between Chapters within Part 5

        4. Section 577: Territorial scope of Part 5 charges

      4. Chapter 2: Receipts from intellectual property

        1. Overview

        2. Section 578: Contents of Chapter

        3. Section 579: Charge to tax on royalties and other income from intellectual property

        4. Section 580: Income charged under section 579

        5. Section 581: Person liable for tax under section 579

        6. Section 582: Deductions in calculating certain income charged under section 579

        7. Section 583: Charge to tax on income from disposals of know-how

        8. Section 584: Exceptions to charge under section 583

        9. Section 585: Income charged under section 583

        10. Section 586: Person liable for tax under section 583

        11. Section 587: Charge to tax on income from sales of patent rights

        12. Section 588: Income charged under section 587

        13. Section 589: Person liable for tax under section 587

        14. Section 590: UK resident sellers: spreading rules

        15. Section 591: Non-UK resident sellers: election for spreading

        16. Section 592: Further provision about elections for spreading: instalments

        17. Section 593: Death of seller

        18. Section 594: Winding up of a body corporate

        19. Section 595: Deduction of tax from payments to non-UK residents

        20. Section 596: Adjustments where tax has been deducted

        21. Section 597: Licences connected with patents

        22. Section 598: Rights to acquire future patent rights

        23. Section 599: Sums paid for Crown use etc. treated as paid under licence

        24. Section 600: Relief for expenses: patent income

        25. Section 601: How relief is given under section 600

        26. Section 602: Payments received after deduction of tax

        27. Section 603: Contributions to expenditure

        28. Section 604: Contributions not made by public bodies nor eligible for tax relief

        29. Section 605: Exchanges

        30. Section 606: Apportionment where property sold together

        31. Section 607: Questions about apportionments affecting two or more persons

        32. Section 608: Meaning of “capital sums” etc.

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

        1. Overview

        2. Section 609: Charge to tax on films and sound recordings businesses

        3. Section 610: Income charged

        4. Section 611: Person liable

        5. Section 612: Calculation of income

        6. Section 613: Application of trading income rules to non-trade businesses

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

        1. Overview

        2. Section 614: Charge to tax on certain telecommunication rights of a non-trader

        3. Section 615: Income charged

        4. Section 616: Person liable

        5. Section 617: Deductions in calculating certain income charged

        6. Section 618: Payments received after deduction of tax

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

        1. Overview

        2. Section 619: Charge to tax under Chapter 5

        3. Section 620: Meaning of “settlement” and “settlor”

        4. Section 621: Income charged

        5. Section 622: Person liable

        6. Section 623: Calculation of income

        7. Section 624: Income where settlor retains an interest

        8. Section 625: Settlor’s retained interest

        9. Section 626: Exception for outright gifts between spouses

        10. Section 627: Exceptions for certain types of income

        11. Section 628: Exception for gifts to charities

        12. Section 629: Income paid to unmarried minor children of settlor

        13. Section 630: Exceptions for gifts to charities

        14. Section 631: Retained and accumulated income

        15. Section 632: Offshore income gains

        16. Section 633: Capital sums paid to settlor by trustees of settlement

        17. Section 634: Meaning of “capital sum” and “sums paid to settlor”

        18. Section 635: Amount of available income

        19. Section 636: Calculation of undistributed income

        20. Section 637: Qualifications to section 636

        21. Section 638: Capital sums paid by way of loan or repayment of loan

        22. Section 639: Loans to participators in close companies

        23. Section 640: Grossing-up of deemed income

        24. Section 641: Capital sum paid to settlor by body connected with settlement

        25. Section 642: Exception for certain loans or repayments of loans

        26. Section 643: Interpretation of sections 641 and 642

        27. Section 644: Application to settlements by two or more settlors

        28. Section 645: Property or income originating from settlor

        29. Section 646: Adjustments between settlor and trustees etc.

        30. Section 647: Power to obtain information

        31. Section 648: Income arising under a settlement

      8. Chapter 6: Beneficiaries’ income from estates in administration

        1. Overview

        2. Section 649: Charge to tax on estate income

        3. Section 650: Absolute, limited and discretionary interests

        4. Section 651: Meaning of “UK estate” and “foreign estate”

        5. Section 652: Estate income: absolute interests in residue

        6. Section 653: Meaning of “the administration period” and “the final tax year”

        7. Section 654: Estate income: limited interests in residue

        8. Section 655: Estate income: discretionary interests in residue

        9. Section 656: Income charged: UK estates

        10. Section 657: Income charged: foreign estates

        11. Section 658: Special rules for foreign income

        12. Section 659: Person liable

        13. Section 660: Basic amount of estate income: absolute interests

        14. Section 661: Basic amount of estate income: limited interests

        15. Section 662: Basic amount of estate income: discretionary interests

        16. Section 663: The applicable rate for grossing up basic amounts of estate income

        17. Section 664: The aggregate income of the estate

        18. Section 665: Assumed income entitlement

        19. Section 666: The residuary income of the estate

        20. Section 667: Shares of residuary income of estate

        21. Section 668: Reduction in share of residuary income of estate

        22. Section 669: Reduction in residuary income: inheritance tax on accrued income

        23. Section 670: Applicable rate for determining assumed income entitlement (UK estates)

        24. Section 671: Successive absolute interests

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

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

        27. Section 674: Successive interests: holders of limited interests

        28. Section 675: Basic amount of estate income: successive limited interests

        29. Section 676: Apportionments

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

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

        32. Section 679: Income from which basic amounts are treated as paid

        33. Section 680: Income treated as bearing income tax

        34. Section 681: Transfers of assets etc. treated as payments

        35. Section 682: Assessments, adjustments and claims after the administration period

      9. Chapter 7: Annual payments not otherwise charged

        1. Overview

        2. Section 683: Charge to tax on annual payments not otherwise charged

        3. Section 684: Income charged

        4. Section 685Person liable

        5. Section 686: Payments received after deduction of tax

      10. Chapter 8: Income not otherwise charged

        1. Overview

        2. Section 687: Charge to tax on income not otherwise charged

        3. Section 688: Income charged

        4. Section 689: Person liable

    6. Part 6: Exempt income

      1. Overview

      2. Chapter 1: Introduction

        1. Section 690: Overview of Part 6

      3. Chapter 2: National savings income

        1. Overview

        2. Section 691: National Savings Bank ordinary account interest

        3. Section 692: Income from savings certificates

        4. Section 693: Income from Ulster Savings Certificates

      4. Chapter 3: Income from individual investment plans

        1. Overview

        2. Section 694: Income from individual investment plans

        3. Section 695: Investment plans

        4. Section 696: Plan managers

        5. Section 697: Special requirements for certain foreign managers

        6. Section 698: Requirements for discharge of foreign institution’s duties

        7. Section 699: Non-entitlement to exemption

        8. Section 700: Information

        9. Section 701: General and supplementary powers

      5. Chapter 4: SAYE interest

        1. Overview

        2. Section 702: Interest under certified SAYE savings arrangements

        3. Section 703: Meaning of “certified SAYE savings arrangement”

        4. Section 704: Types of arrangements and providers

        5. Section 705: Certification of arrangements

        6. Section 706: Withdrawal and variation of certifications and connected requirements

        7. Section 707: Authorisation of providers

        8. Section 708: Withdrawal and variation of authorisations

      6. Chapter 5: Venture capital trust dividends

        1. Overview

        2. Section 709: Venture capital trust dividends

        3. Section 710: Treatment of shares where annual acquisition limit exceeded

        4. Section 711: Identification of shares after disposals

        5. Section 712: Identification of shares after reorganisations etc.

      7. Chapter 6: Income from FOTRA securities

        1. Overview

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

        3. Section 714: Exemption of profits from FOTRA securities

        4. Section 715: Interest from FOTRA securities held on trust

        5. Section 716: Restriction on deductions etc. relating to FOTRA securities

      8. Chapter 7: Purchased life annuity payments

        1. Overview

        2. Section 717: Exemption for part of purchased life annuity payments

        3. Section 718: Excluded annuities

        4. Section 719: Extent of exemption under section 717

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

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

        7. Section 722: Consideration for the grant of annuities

        8. Section 723: Determinations

        9. Section 724: Regulations

        10. Section 725: Annual payments under immediate needs annuities

        11. Section 726: Meaning of “care provider”

      9. Chapter 8: Other Annual Payments

        1. Overview

        2. Section 727: Certain annual payments by individuals

        3. Section 728: Commercial payments

        4. Section 729: Payments for non-taxable consideration

        5. Section 730: Foreign maintenance payments

        6. Section 731: Periodical payments of personal injury damages

        7. Section 732: Compensation awards

        8. Section 733: Persons entitled to exemptions for personal injury payments etc.

        9. Section 734: Payments from trusts for injured persons

        10. Section 735: Health and employment insurance payments

        11. Section 736: Health and employment risks and benefits

        12. Section 737: Period for which payments may be made

        13. Section 738: Risk of significant loss

        14. Section 739: Conditions to be met by policies also providing other benefits

        15. Section 740: Conditions to be met where policies are linked

        16. Section 741: Aggregation of policies where employment ends for health reasons

        17. Section 742: Meaning of “the insured”

        18. Section 743: Policies for the benefit of others who contribute to premiums

        19. Section 744: Payments to adopters: England and Wales

        20. Section 745: Payments to adopters: Scotland

        21. Section 746: Payments to adopters: Northern Ireland

        22. Section 747: Power to amend sections 744 to 746

        23. Section 748: Payments by persons liable to pool betting duty

      10. Chapter 9: Other income

        1. Overview

        2. Section 749: Interest paid under repayment supplements

        3. Section 750: Interest from tax reserve certificates

        4. Section 751: Interest on damages for personal injury

        5. Section 752: Interest under employees’ share schemes

        6. Section 753: Interest on repayment of student loan

        7. Section 754: Redemption of funding bonds

        8. Section 755: Interest on foreign currency securities etc. owned by non-UK residents

        9. Section 756: Which securities and loans are foreign currency ones for section 755

        10. Section 757: Interest and royalty payments: introduction

        11. Section 758: Exemption for certain interest and royalty payments

        12. Section 759: The person making the payment

        13. Section 760: The person beneficially entitled to the payment

        14. Section 761: Meaning of “25% associates”

        15. Section 762: Interest payments: exemption notices

        16. Section 763: Special relationships

        17. Section 764: Application of ICTA provisions about special relationships

        18. Section 765: Anti-avoidance

        19. Section 766: Interest and royalty payments: interpretation

        20. Section 767: Power to amend references to the Directive by Order

        21. Section 768: Commercial occupation of woodlands

        22. Section 769: Housing grants

        23. Section 770: Amounts applied by SIP trustees acquiring dividend shares or retained for reinvestment

        24. Section 771: Relevant foreign income of consular officers and employees

        25. Section 772: Further provisions about Orders under section 771

        26. Section 773: Income from Inter-American Development Bank securities

        27. Section 774: Income from securities issued by designated international organisations

        28. Section 775: Income towards reducing the national debt

        29. Section 776: Scholarship income

        30. Section 777: VAT repayment supplements

        31. Section 778: Incentives to use electronic communications

        32. Section 779: Gains on commodity and financial futures

        33. Section 780: Disabled person’s vehicle maintenance grant

        34. Section 781: Payments under New Deal 50plus

        35. Section 782: Payments under employment zone programme

      11. Chapter 10: General

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

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

      1. Chapter 1: Rent-a-room relief

        1. Overview

        2. Section 784: Overview of Chapter 1

        3. Section 785: Person who qualifies for relief

        4. Section 786: Meaning of “rent-a-room receipts”

        5. Section 787: Meaning of “residence”

        6. Section 788: Meaning of “total rent-a-room amount”

        7. Section 789: The individual’s limit

        8. Section 790: Exclusive receipts condition

        9. Section 791: Full rent-a-room relief: introduction

        10. Section 792: Full rent-a-room relief: trading income

        11. Section 793: Full rent-a-room relief: property income

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

        13. Section 795: Alternative calculation of profits: introduction

        14. Section 796: Alternative calculation of profits: trading income

        15. Section 797: Alternative calculation of profits: property income

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

        17. Section 799: Election not to apply full relief

        18. Section 800: Election for alternative method of calculating profits

        19. Section 801: Time limit on adjustment of assessment

        20. Section 802: Minor definitions

      2. Chapter 2: Foster-care relief

        1. Overview

        2. Section 803: Overview of Chapter 2

        3. Section 804: Person who qualifies for relief

        4. Section 805: Meaning of “foster-care receipts”

        5. Section 806: Meaning of providing foster care

        6. Section 807: Calculation of “total foster-care receipts”

        7. Section 808: The individual’s limit

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

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

        10. Section 811: The amount per child

        11. Section 812: Full foster-care relief: introduction

        12. Section 813: Full foster-care relief: trading income

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

        14. Section 815: Alternative calculation of profits: introduction

        15. Section 816: Alternative calculation of profits: trading income

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

        17. Section 818: Election for alternative method of calculating profits

        18. Section 819: Adjustment of assessment

        19. Section 820: Periods of account not ending on 5th April

        20. Section 821: Meaning of “relevant limit”

        21. Section 822: Full relief

        22. Section 823: Alternative method of calculating profits

        23. Section 824: Capital allowances: introduction

        24. Section 825: Carried forward unrelieved qualifying expenditure

        25. Section 826: Excluded capital expenditure

        26. Section 827: Excluded capital expenditure: subsequent treatment of asset

        27. Section 828: Overlap profit

    8. Part 8: Foreign income: special rules

      1. Overview

      2. Chapter 1: Introduction

        1. Overview

        2. Section 829: Overview of Part 8

        3. Section 830: Meaning of “relevant foreign income”

      3. Chapter 2: Relevant foreign income charged on remittance basis

        1. Overview

        2. Section 831: Claims for relevant foreign income to be charged on the remittance basis

        3. Section 832: Relevant foreign income charged on the remittance basis

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

        5. Section 834: Arrangements treated as repayment of UK-linked debts

        6. Section 835: Relief for delayed remittances

        7. Section 836: Relief for delayed remittances: backdated pensions

        8. Section 837: Claims for relief on delayed remittances

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

        1. Overview

        2. Section 838: Expenses attributable to collection or payment of relevant foreign income

        3. Section 839: Annual payments payable out of relevant foreign income

        4. Section 840: Relief for backdated pensions charged on the arising basis

      5. Chapter 4: Unremittable income

        1. Overview

        2. Section 841: Unremittable income: introduction

        3. Section 842: Claim for relief for unremittable income

        4. Section 843: Withdrawal of relief

        5. Section 844: Income charged on withdrawal of relief after source ceases

        6. Section 845: Valuing unremittable income

    9. Part 9: Partnerships

      1. Overview

      2. Section 846: Overview of Part 9

      3. Section 847: General provisions

      4. Section 848: Assessment of partnerships

      5. Section 849: Calculation of firm’s profits or losses

      6. Section 850: Allocation of firm’s profits or losses between partners

      7. Section 851: Calculations etc. where firm has other income or losses

      8. Section 852: Carrying on by partner of notional trade

      9. Section 853: Basis periods for partners’ notional trades

      10. Section 854: Carrying on by partner of notional business

      11. Section 855: Basis periods for partners’ notional businesses

      12. Section 856: Overlap profits from partners’ notional businesses

      13. Section 857: Partners to whom the remittance basis may apply

      14. Section 858: Resident partners and double taxation agreements

      15. Section 859: Special provisions about farming and property income

      16. Section 860: Adjustment income

      17. Section 861: Sale of patent rights: effect of partnership changes

      18. Section 862: Sale of patent rights: effect of later cessation of trade

      19. Section 863: Limited liability partnerships

    10. Part 10: General provisions

      1. Chapter 1: Introduction

        1. Section 864: Overview of Part 10

      2. Chapter 2: General calculation rules etc.

        1. Overview

        2. Section 865: Unpaid remuneration: non-trades and non-property businesses

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

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

        5. Section 868: Social security contributions: non-trades etc.

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

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

        8. Section 871: Apportionment etc. of miscellaneous profits to tax year

        9. Section 872: Losses calculated on same basis as miscellaneous income

      3. Chapter 3: Supplementary and general provisions

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

        2. Section 874: Activities in UK sector of continental shelf

        3. Section 875: Meaning of “caravan”

        4. Section 876: Meaning of “farming” and related expressions

        5. Section 877: Meaning of grossing up

        6. Section 878: Other definitions

        7. Section 879: Interpretation: Scotland

        8. Section 880: Interpretation: Northern Ireland

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

        10. Section 882: Consequential amendments

        11. Section 883: Commencement and transitional provisions etc.

        12. Section 884: Repeals and revocations

        13. Section 885: Abbreviations and general index in Schedule 4

    11. Schedule 1: Consequential Amendments

      1. Part 1: Income and Corporation Taxes Act 1988

        1. Paragraph 3: section 1A of ICTA

        2. Paragraph 7: section 9 of ICTA

        3. Paragraph 9: section 18 of ICTA

          1. Cases I and II

          2. Case III

          3. Cases IV and V

          4. Case VI

        4. Paragraph 10: section 20 of ICTA

          1. Section 20(1) paragraph 1 of ICTA – the Schedule F charging provision

          2. Section 20(1) paragraph 2 of ICTA – the income chargeable

          3. Section 20(2) of ICTA –priority provision

          4. Section 20(3) of ICTA - signpost

          5. Replacement expressions for special tax rates

        5. Paragraph 36: section 60 of ICTA

        6. Paragraph 43: section 71 of ICTA

        7. Paragraph 45: section 74 of ICTA

        8. Paragraph 53: section 82 of ICTA

        9. Paragraph 60: section 86 of ICTA

        10. Paragraph 65: section 89 of ICTA

        11. Section 92 of ICTA (no paragraph in Schedule 1)

        12. Paragraph 94: section 113 of ICTA

        13. Paragraph 106: section 122 of ICTA

        14. Paragraph 141: section 333 of ICTA

        15. Paragraph 146: section 347A of ICTA

        16. Paragraph 147: section 348 of ICTA

        17. Paragraph 148: section 349 of ICTA

        18. Paragraph 167: section 391 of ICTA

        19. Paragraph 168: section 392 of ICTA

        20. Section 443 of ICTA (no paragraph in Schedule 1)

        21. Paragraphs 209 to 228: sections 539 to 554 of ICTA

        22. Paragraph 247 and 248: sections 586 and 587 of ICTA

        23. Paragraphs 284 and 285: sections 695 and 696 of ICTA

        24. Paragraph 327: section 817 of ICTA

        25. Paragraph 333: section 827A of ICTA

        26. Paragraph 338: section 833 of ICTA

        27. Paragraph 348(3): paragraph 7A of Schedule 22 to ICTA

        28. Paragraph 352(2): paragraph 5 of Schedule 30 to ICTA

        29. Paragraph 352(3): paragraph 18 of Schedule 30 to ICTA

      2. Part 2: Other Enactments

        1. Taxes Management Act 1970

          1. Paragraphs 362, 365 and 371: sections 9D, 12AE(2) and 31(3) of TMA

        2. Taxation of Chargeable Gains Act 1992

          1. Paragraph 435: sections 148A, 148B and 148C of TCGA

          2. Section 148A Futures and options involving guaranteed returns

          3. Section 148B Deemed disposals at a gain under section 564(4) of ITTOIA 2005

          4. Section 148C Deemed disposals at a loss under section 564(4) of ITTOIA 2005

          5. Paragraph 438: section 151C of TCGA

          6. Paragraph 443: section 254(1)(c) of TCGA

        3. Finance Act 1993

          1. Paragraph 464: section 171(2) of FA 1993

        4. Income Tax (Earnings and Pensions) Act 2003

          1. Paragraph 592: section 325A of ITEPA

          2. Paragraph 594: section 360A of ITEPA

          3. Paragraph 606: section 575 of ITEPA

          4. Paragraph 607: section 613 of ITEPA

          5. Paragraph 608: section 631 of ITEPA

          6. Paragraph 609: section 635 of ITEPA

          7. Paragraph 610: section 644A of ITEPA

          8. Paragraph 611: section 646A of ITEPA

          9. Paragraph 613: section 679 of ITEPA

          10. Paragraph 614: section 681A of ITEPA

    12. Schedule 2: Transitionals and savings etc.

      1. Part 1: General provisions – continuity of the law

      2. Part 2: Changes in the law

      3. Part 3: Trading income

        1. Paragraphs 22 and 23: Training courses for employees

        2. Paragraph 48: Apportionment of profits or losses to tax years before tax year 2005-06 – basis periods

        3. Paragraph 50: Profits or losses of a trade, profession or vocation previously chargeable in accordance with section 65(1) of ICTA

        4. Paragraph 51: Profits of mines, quarries and other concerns not chargeable by reference to a basis period

        5. Paragraph 55: Averaging profits of farmers and creative artists

        6. Paragraph 58: Adjustment on change of basis: paragraph 12 of Schedule 22 to FA 2002

        7. Paragraph 59: Adjustment on change of basis: section 104 of ICTA

      4. Part 4: Property income

        1. Paragraph 62: Apportionment of profits or losses to tax years before tax year 2005-06

      5. Part 5: Savings and investment income: general

        1. Paragraph 78: Open-ended investment companies: saving for powers to make provision corresponding to provisions applicable to unit trusts

        2. Paragraph 80: Deeply discounted securities: deemed transfers of strips on 5th April

        3. Paragraphs 82 and 83: Profits from deeply discounted securities: saving for charities’ losses Profits from deeply discounted securities: saving for pension trustees’ losses

        4. Paragraph 84: Exclusion of deeply discounted securities from section 711 to 718 of ICTA (accrued income profits)

        5. Paragraph 85: Gains from contracts for life insurance etc: foreign policies of life insurance

        6. Paragraph 86: Gains from contracts for life insurance etc: exclusion of pension policies

        7. Paragraphs 87 and 88: Gains from contracts for life insurance etc: rights partially assigned

        8. Paragraph 89: Gains from contracts for life insurance etc: regulations providing for relief where foreign tax chargeable

        9. Paragraph 90: Gains from contracts for life insurance etc: pure protection group life policies

        10. Paragraph 91: Gains from contracts for life insurance etc: assessment of trustees etc

        11. Paragraphs 92 and 93: Transactions in deposits

        12. Paragraph 94: Disposals of futures and options involving guaranteed returns: certain pre-6th February 1998 transactions

        13. Paragraph 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. Overview

        2. Paragraph 96: Pre-20th March 1968 policies and contracts excluded from Chapter 9 of Part 4

        3. Paragraph 97: Pre-27th March 1974 policies and contracts: disapplication of section 500(c)

        4. Paragraph 98: Pre-27th March 1974 contracts: disapplication of section 531(3)(c)

        5. Paragraph 99: Pre-10th December 1974 contracts for a life annuity: disapplication of section 484(1)(d)

        6. Paragraph 100: Pre-14th March 1975 policies and contracts: calculation of gains under section 507

        7. Paragraph 101: Pre-25th March 1982 replacement policies: disapplication of section 542

        8. Paragraph 102: Certain pre-26th June 1982 policies and contracts excluded from Chapter 9 of Part 4

        9. Paragraph 103: Certain pre-18th November 1983 policies not foreign policies of life insurance

        10. Paragraph 104: Certain pre-23rd February 1984 policies not foreign capital redemption policies

        11. Paragraph 105: Pre-14th March 1984 policies: disregard of amounts deducted and repaid after tax relief by deduction from premiums abolished

        12. Paragraph 106: Certain pre-20th March 1985 policies: application of section 529(1)

        13. Paragraph 107: Pre-14th March 1989 qualifying policies: application of section 485(2)(b) and (3)(b)

        14. Paragraph 108: Pre-14th March 1989 policies and contracts: application of section 501

        15. Paragraph 109: Contracts in accounting periods beginning before 1st January 1992: disapplication of sections 530and 539(3)

        16. Paragraph 110: Certain pre-17th March 1998 policies: application of section 529(1)

        17. Paragraph 111: Certain pre-17th March 1998 policies not foreign policies of life insurance

        18. Paragraph 112: Pre-17th March 1998 policy or contract: UK resident trustees

        19. Paragraph 113: Certain pre-23rd March 1999 policies not foreign capital redemption policies

        20. Paragraph 114: Pre-9th April 2003 contract or policy: UK resident trustees

        21. Paragraph 115: Pre-9th April 2003 contract or policy: loans to trustees

        22. Paragraph 116: Pre-9th April 2003 contract or policy: excepted group life policies

        23. Paragraph 117: Pre-3rd March 2004 contract or policy: calculation of deficiencies

        24. Paragraph 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. Overview

        2. Paragraph 119: Pre-17th March 1998 contract or policy: conditions to be met for contract or policy not to be a personal portfolio bond

        3. Paragraph 120: The date condition

        4. Paragraph 121: The non-variation condition

        5. Paragraph 122: The first selection condition

        6. Paragraph 123: The second selection condition

        7. Paragraph 124: Policy holders becoming UK resident after 17th March 1998

        8. Paragraph 125: Policy holders becoming permanently UK resident after 17th March 1998

        9. Paragraph 126: Meaning of “permitted index”

        10. Paragraph 127: Meaning of “permitted property”

        11. Paragraph 128: Other definitions

      8. Part 8: Miscellaneous income

        1. Paragraph 132: Income treated as income of settlor: exception for pension income

        2. Paragraph 133: Amounts treated as income of settlor: income paid to unmarried minor child of settlor

        3. Paragraph 134: Amounts treated as income of settlor: capital sums paid to settlor by trustees of settlement

      9. Part 9: Exempt income

        1. Paragraph 143: Purchased life annuity payments: old determinations concerning capital elements

        2. Paragraph 144: Purchased life annuity payments: carry forward of excess capital elements

        3. Paragraph 145: Purchased life annuity payments: penalty for false statements

        4. Paragraph 146: Certain annual payments by individuals

        5. Paragraph 147: Annuity payments for non-taxable consideration

        6. Paragraph 148: Periodical payments of personal injury damages etc.

      10. Part 11: Foreign income: special rules

        1. Paragraph 150: Relevant foreign income charged on remittance basis: income arising before the tax year 2005-06

        2. Paragraph 151: Relevant foreign income charged on remittance basis: delayed remittances

        3. Paragraph 152: Relief for back-dated pensions charged on arising basis

        4. Paragraph 153: Unremittable income that arose before the tax year 2005-06

      11. Part 12: Other provisions

        1. Paragraph 158: Apportionment of profits or losses to tax years before tax year 2005-06

        2. Paragraph 159: General deduction rules

    13. Schedule 3: Repeals and revocations

    14. Schedule 4: Abbreviations and defined expressions

      1. Part 1: Abbreviations of Acts

      2. Part 2: Index of expressions defined in this Act etc.

  6. Commencement

  7. Hansard References

  8. Annex 1: Minor changes in the law made by the Act

  9. ANNEX 2: DESTINATION OF REWRITTEN EXTRA-STATUTORY CONCESSIONS

  • Explanatory Notes Table of contents

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