406U.K.The Finance Act 1989 is amended as follows.
407U.K.In section 68(2) (principal charges to tax: employee share ownership trusts)—
(a)in paragraph (a) for “annual profits or gains whose amount” substitute “ income of an amount that ”, and
(b)for paragraph (b) and the word “and” at the end of it substitute—
“(b)that income shall be chargeable to income tax for the year of assessment in which the event occurs,
(ba)the tax so chargeable shall be charged on the full amount of the income the trustees are treated as receiving in the year of assessment,
(bb)the trustees are liable for any tax so chargeable, and”.
408U.K.In section 71(4) (further charges to tax: borrowing)—
(a)in paragraph (a) for “annual profits or gains whose amount” substitute “ income of an amount that ”, and
(b)for paragraph (b) and the word “and” at the end of it substitute—
“(b)that income shall be chargeable to income tax for the year of assessment at the end of which the further event occurs,
(ba)the tax so chargeable shall be charged on the full amount of the income the trustees are treated as receiving in the year of assessment,
(bb)the trustees are liable for any tax so chargeable, and”.
409(1)Amend section 76 (non-approved retirement benefits schemes) as follows.U.K.
(2)In subsection (1) after “Schedule D” insert “ or under Part 2 of the Income Tax (Trading and Other Income) Act 2005 ”.
(3)In subsection (4)(a) after “Schedule D” insert “ or under Part 2 of the Income Tax (Trading and Other Income) Act 2005 ”.
(4)In subsection (6C)(a) omit “of the Taxes Act 1988”.
410U.K.Omit sections 112 and 113 (security: trades etc.).
411U.K.F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Sch. 1 para. 411 repealed (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1031, 1034, Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)
412U.K.In paragraph 1 of Schedule 12 (close companies: administrative provisions)—
(a)omit the word “and” at the end of paragraph (a), and
(b)after paragraph (b) insert—
“(c)section 397 of the Income Tax (Trading and Other Income) Act 2005, and
(d)Chapter 6 of Part 4 of that Act.”