SCHEDULES

SCHEDULE 1Consequential amendments

Part 2Other enactments

Finance Act 2004 (c. 12)

629

The Finance Act 2004 is amended as follows.

F7630

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

631

Omit section 97 (exemption from income tax for certain interest and royalty payments: introductory).

632

Omit section 98 (exemption from income tax for certain interest and royalty payments).

633

Omit section 99 (permanent establishments and “25% associates”).

634

Omit section 100 (interest payments: exemption notices).

635

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

636

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

637

Omit section 103 (special relationships).

638

Omit section 104 (anti-avoidance).

639

Omit section 106 (transitional provision).

640

F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

641

F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

642

F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

643

F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

644

In section 186(1)(b) (scheme investments: income) for “which would” to the end substitute “ which are not relevant foreign income and which would otherwise be chargeable to income tax under Chapter 8 of Part 5 of ITTOIA 2005 (income not otherwise charged). ”

645

1

Amend section 189(2) (meaning of “relevant UK earnings”) as follows.

2

In paragraph (b) for “Schedule D” substitute “ Part 2 of ITTOIA 2005 ”.

3

For paragraph (c) substitute—

c

income to which section 833(5B) of ICTA (patent income) applies.

646

In section 196(2) (relief for employers in respect of contributions paid) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

647

In section 197(10)(a) (spreading relief) after “charged under” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

F8648

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649

In section 200(a) (no other relief for employers in connection with contributions) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

650

1

Amend section 246 (restriction of deduction for non-contributory provision) as follows.

2

In subsection (2)(a) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

3

In subsection (3)(a) after “charged under” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

651

1

Amend section 249 of FA 2004 (amendments of ITEPA 2003) as follows.

2

In subsection (3), in subsection (4) of the inserted section 393B—

a

for paragraph (a) substitute—

a

an excepted group life policy as defined in section 480 of ITTOIA 2005,

b

in paragraph (b) for the words from “condition 1” to the end of the paragraph substitute

—

i

condition A in section 481 of that Act would be met if paragraph (a) in that condition referred to the death, in any circumstances or except in specified circumstances, of that individual (rather than the death in any circumstances of each of the individuals insured under the policy) and if the condition did not include paragraph (b), and

ii

conditions C and D in that section and conditions A and C in section 482 of that Act are met, or

3

In subsection (8), in the inserted section 395 of ITEPA 2003, for “Case VI of Schedule D” substitute “ subsection (2) of that section ”.

652

In section 280(1) (abbreviations and general index for Part 4) omit the “and” before the definition of “ITEPA 2003” and after that definition insert

and

“ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005.

653

1

Amend Schedule 15 (charge to income tax on benefit received by former owner of property) as follows.

2

In paragraph 1 (introductory) insert in the appropriate place—

“ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005;

3

In paragraph 8 (intangible property comprised in settlement where settlor retains an interest)—

a

in sub-paragraph (1)(a)—

i

for “section 660A of the Taxes Act 1988” substitute “ section 624 of ITTOIA 2005 ”, and

ii

for “Part 15” substitute “ Chapter 5 of Part 5 ”, and

b

in sub-paragraph (1)(b) for “subsection (2) of that section” substitute “ section 625(1) of ITTOIA 2005 (settlor's retained interest) ”.

4

In paragraph 9(1) (intangible property comprised in settlement where settlor retains an interest), in the definition of “T”—

a

in paragraph (a), for “section 547 of the Taxes Act 1988” substitute “ section 461 of ITTOIA 2005 ”,

b

in paragraph (b) for “section 660A of that Act” substitute “ section 624 of that Act ”, and

c

in paragraph (c) for “that Act” substitute “ the Taxes Act 1988 ”.

5

In paragraph 22(3)(b) (election for application of inheritance tax provisions) for “section 660A of the Taxes Act 1988” substitute “ section 624 of ITTOIA 2005 ”.

654

In paragraph 1(4) and (6) of Schedule 24, for the words from “(and” to “have” substitute “ has ”.

655

In paragraph 12 of Schedule 35 (pension schemes etc: minor and consequential amendments) for the words from “for” to the end substitute

for the words from the beginning to “, if the claimant” substitute

Subject to subsection (2) below, section 274 of this Act and sections 192 to 194 of the Finance Act 2004, if the claimant

.

656

1

Amend Schedule 36 (pension schemes etc: transitional provisions and savings) as follows.

2

In paragraph 41(a) (employers' contributions relieved before 6th April 2006) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

3

In paragraph 53(2)(b) (benefits taxable under Chapter 2 of Part 6 of ITEPA 2003: contributions taxed pre-commencement) for “to tax under Case VI of Schedule D by virtue of” substitute “ to income tax under subsection (2) of ”.