Income Tax (Trading and Other Income) Act 2005

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

(2) In subsection (1) for “tax” substitute “corporation tax”.

(3) In subsection (2) for “tax”, in both places where it occurs, substitute “corporation tax”.

(4) In subsection (3)(a) for “tax”, in the first place where it occurs, substitute “corporation tax”.

(5) In subsection (4)—

(a) for “tax” substitute “corporation tax”,

(b) after paragraph (b) insert “or”,

(c) in paragraph (c) for the words from “person or body of persons” to the end of the paragraph substitute “company”, and

(d) omit paragraph (d) and the word “or” before it.

(6) After subsection (9) insert—

“(9A) The Treasury may by regulations make provision, in relation to any policy or contract to which this subsection applies, for—

(a) treating an event described in the regulations as if it were a chargeable event, and

(b) treating an amount determined in accordance with the regulations as if it were a gain treated as arising on the happening of a chargeable event.

(9B) Regulations under subsection (9A) may make such provision for the purposes only of enabling the gain to be taken into account in the application of this Chapter to the policy or contract on the later happening of a chargeable event.

(9C) Regulations under subsection (9A) may make any provision for the calculation of the amount of the gain which regulations under subsection (1) may make for the calculation of the amount charged to corporation tax by virtue of regulations under that subsection.

(9D) Subsections (6), (8) and (9) apply to regulations under subsection (9A).

(9E) Subsection (9A) applies to a policy or contract if—

(a) it is a personal portfolio bond, and

(b) liability in respect of a gain arising in relation to it would arise by virtue of any of sections 464 to 468 of ITTOIA 2005 (persons liable for tax under Chapter 9 of Part 4 of that Act).”