Income Tax (Trading and Other Income) Act 2005

Finance Act 2000 (c. 17) U.K.

511 U.K. The Finance Act 2000 is amended as follows.

512 (1) Amend section 44 (gifts to charity from certain trusts) as follows. U.K.

(2) Omit subsections (1) to (3).

(3) In subsection (4)—

(a) for “UK trust” substitute “ trust the trustees of which are resident in the United Kingdom (a “UK trust”) ”, and

(b) for “subsection (1) above” substitute “ section 628(1) or 630(1) of ITTOIA 2005 ”.

(4) For subsection (5) substitute—

“(5) In this section—

• “qualifying income” has the same meaning as in section 628 of ITTOIA 2005; and

• “resident”, in relation to the trustees of a trust, shall be construed in accordance with section 110 of the Finance Act 1989.”

513 U.K. Omit section 45 (loans to charities).

514 (1) Amend section 46 (exemption for small trades etc.) as follows. U.K.

(2) In subsection (1) for the words from the beginning to “shall be granted,” substitute—

“(1) Subject to subsections (2) and (2A) below, exemption—

(a) from income tax—

(i) under Part 2 of ITTOIA 2005 in respect of a trade carried on wholly or partly in the United Kingdom, or

(ii) under or by virtue of any provision to which section 836B of the Taxes Act 1988 applies, or

(b) from corporation tax under Case I or VI of Schedule D,

shall be granted”.

(3) For subsection (2) substitute—

“(2) Exemption shall not be granted under subsection (1) above in respect of income which is chargeable to—

(a) income tax under or by virtue of any provision to which section 836B of the Taxes Act 1988 applies, or

(b) corporation tax under Case VI of Schedule D,

by virtue of any of the provisions mentioned in subsection (2A).

(2A) The provisions are—

(a) sections 214, 547(1)(b), 703, 776, 788, 790 or 804 of the Taxes Act 1988;

(b) paragraph 52(4) of Schedule 18 to the Finance Act 1998;

(c) Chapter 9 of Part 4, and Chapter 5 of Part 5, of ITTOIA 2005; and

(d) any other enactment specified in an order made by the Treasury.”

(4) In subsection (6), in the definition of “income”—

(a) after “means” insert “—

(a) any profits or other income or gains —

(i) which are chargeable to income tax under Part 2 of ITTOIA 2005 in respect of a trade carried on wholly or partly in the United Kingdom, or

(ii) which are chargeable to income tax under or by virtue of any provision to which section 836B of the Taxes Act 1988 applies,

and which (in either case) are not, apart from this section, exempted from income tax chargeable under or by virtue of that Part or provision, or

(b)  ”,

(b) after “chargeable to” insert “ corporation ”.

515 U.K. Omit section 84 (exemption of payments under New Deal 50plus).

516 U.K. Omit section 85 (exemption of payments under Employment Zones programmes).

517 U.K. Omit section 87 (treatment of certain telecommunication rights).

518 U.K. In section 143(2) (power to provide incentives to use electronic communications) for “purposes of the Tax Acts” substitute “ corporation tax purposes ”.

519 U.K. In section 155 (interpretation) at the end insert “ and “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005 ”.

F1 520 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 1 para. 520 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

521 U.K. In Schedule 15 (the corporate venturing scheme), in paragraph 99(3), for “Chapter 1A of Part XV of the Taxes Act 1988 (see section 660G(1) and (2))” substitute “ Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act) ”.

522 U.K. In Schedule 22 (tonnage tax), in paragraph 144(3), for “Chapter 1A of Part XV of the Taxes Act 1988 (see section 660G(1) and (2) of that Act)” substitute “ Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act) ”.

523 U.K. Omit Schedule 23 (treatment of certain telecommunication rights).