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Income Tax Act 2007

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Income Tax Act 2007. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

    1. Summary

    2. Background

      1. The Tax Law Rewrite project

      2. Steering Committee

      3. Consultative Committee

      4. Consultation

    3. Income Tax Act 2007

    4. Glossary

  2. Commentary on Sections

    1. Part 1: Overview

      1. Section 1: Overview of Income Tax Acts

      2. Section 2: Overview of Act

    2. Part 2: Basic provisions

      1. Overview

        1. Chapter 1: Charges to income tax

          1. Overview

            1. Section 3: Overview of charges to income tax

            2. Section 4: Income tax an annual tax

            3. Section 5: Income tax and companies

        2. Chapter 2: Rates at which income tax is charged

          1. Overview

            1. Section 6: The starting rate, basic rate and higher rate

            2. Section 7: The savings rate

            3. Section 8: The dividend ordinary rate and dividend upper rate

            4. Section 9: The trust rate and dividend trust rate

            5. Section 10: Income charged at the starting, basic and higher rates: individuals

            6. Section 11: Income charged at the basic rate: other persons

            7. Section 12: Income charged at the savings rate

            8. Section 13: Income charged at the dividend ordinary and dividend upper rates: individuals

            9. Section 14: Income charged at the dividend ordinary rate: other persons

            10. Section 15: Income charged at the trust rate and the dividend trust rate

            11. Section 16: Savings and dividend income to be treated as highest part of total income

            12. Section 17: Repayment: tax paid at basic rate instead of starting or savings rate

            13. Section 18: Meaning of “savings income”

            14. Section 19: Meaning of “dividend income”

            15. Section 20: The starting rate limit and the basic rate limit

            16. Section 21: Indexation of the starting rate limit and the basic rate limit

        3. Chapter 3: Calculation of income tax liability

          1. Overview

            1. Section 22: Overview of Chapter

            2. Section 23: The calculation of income tax liability

            3. Section 24: Reliefs deductible at Step 2

            4. Section 25: Reliefs and allowances deductible at Steps 2 and 3: supplementary

            5. Section 26: Tax reductions

            6. Section 27: Order of deducting tax reductions: individuals

            7. Section 28: Order of deducting tax reductions: other persons

            8. Section 29: Tax reductions: supplementary

            9. Section 30: Additional tax

            10. Section 31: Total income: supplementary

            11. Section 32: Liability not dealt with in the calculation

    3. Part 3: Personal reliefs

      1. Overview

        1. Chapter 1: Introduction

          1. Section 33: Overview of Part

        2. Chapter 2: Personal allowance and blind person’s allowance

          1. Overview

            1. Section 34: Allowances under Chapter

            2. Section 35: Personal allowance for those aged under 65

            3. Section 36: Personal allowance for those aged 65 to 74

            4. Section 37: Personal allowance for those aged 75 and over

            5. Section 38: Blind person’s allowance

            6. Section 39: Transfer of part of blind person’s allowance to a spouse or civil partner

            7. Section 40: Election for transfer of allowance under section 39

            8. Section 41: Allowances in year of death

        3. Chapter 3: Tax reductions for married couples and civil partners

          1. Overview

            1. Section 42: Tax reductions under Chapter

            2. Section 43: Meaning of “the minimum amount”

            3. Section 44: Election for new rules to apply

            4. Section 45: Marriages before 5 December 2005

            5. Section 46: Marriages and civil partnerships on or after 5 December 2005

            6. Section 47: Election by individual to transfer relief under section 45 or 46

            7. Section 48: Joint election to transfer relief under section 45 or 46

            8. Section 49: Election for partial transfer back of relief

            9. Section 50: Procedure for making and withdrawing elections under sections 47 to 49

            10. Section 51: Transfer of unused relief

            11. Section 52: Transfer back of unused relief

            12. Section 53: Transfer of unused relief: general

            13. Section 54: Tax reductions in the year of marriage or entry into civil partnership

            14. Section 55: Sections 45 to 53: supplementary

        4. Chapter 4: General

          1. Overview

            1. Section 56: Residence of claimants

            2. Section 57: Indexation of allowances

            3. Section 58: Meaning of “adjusted net income”

    4. Part 4: Loss relief

      1. Overview

        1. Chapter 1: Introduction

          1. Section 59: Overview of Part

        2. Chapter 2: Trade losses

          1. Overview

            1. Section 60: Overview of Chapter

            2. Section 61: Non-partners: losses of a tax year

            3. Section 62: Partners: losses of a tax year

            4. Section 63: Prohibition against double counting

            5. Section 64: Deduction of losses from general income

            6. Section 65: How relief works

            7. Section 66: Restriction on relief unless trade is commercial

            8. Section 67: Restriction on relief in case of farming or market gardening

            9. Section 68: Reasonable expectation of profit

            10. Section 69: Whether trade is the same trade

            11. Section 70: Determining losses in previous tax years

            12. Section 71: Treating trade losses as CGT losses

            13. Section 72: Relief for individuals for losses in first 4 years of trade

            14. Section 73: How relief works

            15. Section 74: Restrictions on relief unless trade is commercial

            16. Section 75: Trade leasing allowances given to individuals

            17. Section 76: First-year allowances: introduction

            18. Section 77: First-year allowances: partnerships with companies

            19.  Section 78: First-year allowances: arrangements to reduce tax liabilities

            20. Section 79: Capital allowances restrictions: supplementary

            21. Section 80: Ring fence income

            22. Section 81: Dealings in commodity futures

            23. Section 82: Exploitation of films

            24. Section 83: Carry forward against subsequent trade profits

            25. Section 84: How relief works

            26. Section 85: Use of trade-related interest and dividends if trade profits insufficient

            27. Section 86: Trade transferred to a company

            28. Section 87: Ring fence trades

            29. Section 88: Carry forward of certain interest as loss

            30. Section 89: Carry back of losses on a permanent cessation of a trade

            31. Section 90: Losses that are “terminal losses”

            32. Section 91: How relief works

            33. Section 92: Use of trade-related interest and dividends if trade profits insufficient

            34. Section 93: Mineral extraction trade and carry back of balancing allowances

            35. Section 94: Carry back of certain interest as loss

            36. Section 95: Foreign trades : reliefs only against foreign income

            37. Section 96: Post-cessation trade relief

            38. Section 97: Meaning of “qualifying payment”

            39. Section 98: Meaning of “qualifying event”

            40. Section 99: Reduction of relief for unpaid trade expenses

            41. Section 100: Prohibition against double counting

            42. Section 101: Treating excess post-cessation trade relief as CGT loss

        3. Chapter 3: Restrictions on trade loss relief for certain partners

          1. Overview

            1. Section 102: Overview of Chapter

            2. Section 103: Meaning of “sideways relief”, “capital gains relief” and “firm”

            3. Section 104: Restriction on reliefs for limited partners

            4. Section 105: Meaning of “contribution to the firm”

            5. Section 106: Meaning of “limited partner”

            6. Section 107: Restriction on reliefs for members of s

            7. Section 108: Meaning of “contribution to the ”

            8. Section 109: Unrelieved losses brought forward

            9. Section 110: Restriction on reliefs for non-active partners in early tax years

            10. Section 111: Meaning of “contribution to the firm”

            11. Section 112: Meaning of “non-active partner” and “early tax year”

            12. Section 113: Unrelieved losses brought forward

            13. Section 114: Exclusion of amounts in calculating contribution to the firm or

            14. Section 115: Restrictions on reliefs for firms exploiting films

            15. Section 116: Exclusion from restrictions under section 115: certain film expenditure

        4. Chapter 4: Losses from property businesses

          1. Overview

            1. Section 117: Overview of Chapter

            2. Section 118: Carry forward against subsequent property business profits

            3. Section 119: How relief works

            4. Section 120: Deduction of property losses from general income

            5. Section 121: How relief works

            6. Section 122: Meaning of “the applicable amount of the loss”

            7. Section 123: Meaning of “the loss has a capital allowances connection” and “the business has a relevant agricultural connection”

            8. Section 124: Supplementary

            9. Section 125: Post-cessation property relief

            10. Section 126: Treating excess post-cessation property relief as CGT loss

            11. Section 127: UK furnished holiday lettings business treated as trade

        5. Chapter 5: Losses in an employment or office

          1. Overview

            1. Section 128: Employment loss relief against general income

            2. Section 129: How relief works

            3. Section 130: Treating loss in employment or office as CGT loss

        6. Chapter 6: Losses on disposal of shares

          1. Overview

            1. Section 131: Share loss relief

            2. Section 132: Entitlement to claim

            3. Section 133: How relief works

            4. Section 134: Qualifying trading companies

            5. Section 135: Subscriptions for shares

            6. Section 136: Disposals of new shares

            7. Section 137: The trading requirement

            8. Section 138: Ceasing to meet trading requirement because of administration or receivership

            9. Section 139: The control and independence requirement

            10. Section 140: The qualifying subsidiaries requirement

            11. Section 141: The property managing subsidiaries requirement

            12. Section 142: The gross assets requirement

            13. Section 143: The unquoted status requirement

            14. Section 144: Power to amend requirements by Treasury order

            15. Section 145: Relief after an exchange of shares for shares in another company

            16. Section 146: Substitution of new shares for old shares

            17. Section 147: Limits on share loss relief

            18. Section 148: Disposal of shares forming part of mixed holding

            19. Section 149: Section 148: supplementary

            20. Section 150: Deemed time of issue for certain shares

            21. Section 151: Interpretation of Chapter

        7. Chapter 7: Losses from miscellaneous transactions

          1. Overview

            1. Section 152: Losses from miscellaneous transactions

            2. Section 153: How relief works

            3. Section 154: Transactions in deposit rights

            4. Section 155: Time limit for claiming relief

    5. Part 5: Enterprise investment scheme

      1. Overview

        1. Chapter 1: Introduction

          1. Overview

            1. Section 156: Meaning of “ relief” and commencement

            2. Section 157: Eligibility for relief

            3. Section 158: Form and amount of relief

            4. Section 159: Periods A, B and C

            5. Section 160: Overview of other Chapters of Part

            6. Section 161: Other tax reliefs relating to

        2. Chapter 2: The investor

          1. Overview

            1. Section 162: Overview of Chapter

            2. Section 163: The no connection with the issuing company requirement

            3. Section 164: The no linked loans requirement

            4. Section 165: The no tax avoidance requirement

            5. Section 166: Connection with issuing company

            6. Section 167: Employees, directors and partners

            7. Section 168: Directors excluded from connection

            8. Section 169: Directors qualifying for relief despite connection

            9. Section 170: Persons interested in capital of company

            10. Section 171: Persons subscribing for shares under certain arrangements

        3. Chapter 3: General requirements

          1. Overview

            1. Section 172: Overview of Chapter

            2. Section 173: The shares requirement

            3. Section 174: The purpose of the issue requirement

            4. Section 175: The use of the money raised requirement

            5. Section 176: The minimum period requirement

            6. Section 177: The no pre-arranged exits requirement

            7. Section 178: The no tax avoidance requirement

            8. Section 179: Meaning of “qualifying business activity”

        4. Chapter 4: The issuing company

          1. Overview

            1. Section 180: Overview of Chapter

            2. Section 181: The trading requirement

            3. Section 182: Ceasing to meet trading requirement because of administration or receivership

            4. Section 183: The issuing company to carry on the qualifying business activity requirement

            5. Section 184: The unquoted status requirement

            6. Section 185: The control and independence requirement

            7. Section 186: The gross assets requirement

            8. Section 187: The qualifying subsidiaries requirement

            9. Section 188: The property managing subsidiaries requirement

            10. Section 189: Meaning of “qualifying trade”

            11. Section 190: Meaning of “qualifying 90% subsidiary”

            12. Section 191: Meaning of “qualifying subsidiary”

            13. Section 192: Meaning of “excluded activities”

            14. Section 193: Excluded activities: wholesale and retail distribution

            15. Section 194: Excluded activities: leasing of ships

            16. Section 195: Excluded activities: receipt of royalties and licence fees

            17. Section 196: Excluded activities: property development

            18. Section 197: Excluded activities: hotels and comparable establishments

            19. Section 198: Excluded activities: nursing homes and residential care homes

            20. Section 199: Excluded activities: provision of services or facilities for another business

            21. Section 200: Power to amend by Treasury order

        5. Chapter 5: Attribution of and claims for relief

          1. Overview

            1. Section 201: Attribution of relief to shares

            2. Section 202: Time for making claims for relief

            3. Section 203: Entitlement to claim

            4. Section 204: Compliance certificates

            5. Section 205: Compliance statements

            6. Section 206: Appeal against refusal to authorise compliance certificate

            7. Section 207: Penalties for fraudulent certificate or statement

        6. Chapter 6: Withdrawal or reduction of relief

          1. Overview

            1. Section 208: Overview of Chapter

            2. Section 209: Disposal of shares

            3. Section 210: Cases where maximum relief not obtained

            4. Section 211: Call options

            5. Section 212: Put options

            6. Section 213: Value received by the investor

            7. Section 214: Value received: receipts of insignificant value

            8. Section 215: Meaning of “receipts of insignificant value”

            9. Section 216: When value is received

            10. Section 217: The amount of value received

            11. Section 218: Value received where there is more than one issue of shares

            12. Section 219: Value received where part of share issue treated as made in previous tax year

            13.  Section 220: Cases where maximum relief not obtained

            14. Section 221: Receipts of value by and from connected persons

            15. Section 222: Receipt of replacement value

            16. Section 223: Section 222: supplementary

            17. Section 224: Repayments of share capital to other persons

            18. Section 225: Insignificant repayments ignored for purposes of section 224

            19. Section 226: Amount of repayments where there is more than one issue of shares

            20. Section 227: Single issue affecting more than one individual

            21. Section 228: Single issue treated as made partly in previous tax year

            22. Section 229: Maximum relief not obtained for share issue

            23. Section 230: Repayment of authorised minimum within 12 months

            24. Section 231: Restriction on withdrawal of relief under section 224

            25. Section 232: Acquisition of a trade or trading assets

            26. Section 233: Acquisition of share capital

            27. Section 234: Relief subsequently found not to have been due

        7. Chapter 7: Withdrawal or reduction of relief: procedure

          1. Overview

            1. Section 235: Assessments for the withdrawal or reduction of relief

            2. Section 236: Appeals against section 234(3)(b) notices

            3. Section 237: Time limits for assessments

            4. Section 238: Cases where assessment not to be made

            5. Section 239: Date from which interest is chargeable

            6. Section 240: Information to be provided by the investor

            7. Section 241: Information to be provided by the issuing company

            8. Section 242: Power to require information where section 240 or 241 applies or could have applied

            9. Section 243: Power to require information in other cases

            10. Section 244: Obligations of secrecy

        8. Chapter 8: Supplementary and general

          1. Overview

            1. Section 245: Transfers between spouses or civil partners

            2. Section 246: Identification of shares on a disposal

            3. Section 247: Continuity of relief where issuing company is acquired by new company

            4. Section 248: Carry over of obligations where relief attributed to new shares

            5. Section 249: Substitution of new shares for old shares

            6. Section 250: Nominees and bare trustees

            7. Section 251: Approved investment fund as nominee

            8. Section 252: Meaning of a company being “in administration” or “in receivership”

            9. Section 253: Meaning of “associate”

            10. Section 254: Meaning of “disposal of shares”

            11. Section 255: Meaning of “issue of shares”

            12. Section 256: Meaning of “the termination date”

            13. Section 257: Minor definitions

    6. Part 6: Venture capital trusts

      1. Overview

        1. Chapter 1: Introduction

          1. Overview

            1. Section 258: Overview of Part

            2. Section 259: Venture capital trusts and approvals

            3. Section 260: Other tax reliefs relating to s

        2. Chapter 2: relief

          1. Overview

            1. Section 261: Eligibility for relief

            2. Section 262: Entitlement to claim relief

            3. Section 263: Form and amount of relief

            4. Section 264: No entitlement to relief if there is a linked loan

            5. Section 265: No entitlement to relief which would have been lost if it had already been obtained

            6. Section 266: Loss of relief if shares disposed of within 5 years

            7. Section 267: Transfers of shares between spouses or civil partners

            8. Section 268: Loss of relief if approval withdrawn

            9. Section 269: Loss of relief which is subsequently found not to have been due

            10. Section 270: Assessment on withdrawal or reduction of relief

            11. Section 271: Provision of information

            12. Section 272: Regulations as to procedure

            13. Section 273: Interpretation of Chapter

        3. Chapter 3: approvals

          1. Overview

            1. Section 274: Requirements for the giving of approval

            2. Section 275: Alternative requirements for the giving of approval

            3. Section 276: Conditions relating to income

            4. Section 277: The 15% holding limit condition

            5. Section 278: Conditions relating to value of investments: general

            6. Section 279: Conditions relating to value of investments: qualifying holdings

            7. Section 280: Conditions relating to qualifying holdings and eligible shares

            8. Section 281: Withdrawal of approval of a company

            9. Section 282: Withdrawal of approval in cases for which provision made under section 280(3)

            10. Section 283: Time as from which approval has effect

            11. Section 284: Power to make regulations as to procedure

            12. Section 285: Interpretation of Chapter

        4. Chapter 4: Qualifying holdings

          1. Overview

            1. Section 286: Qualifying holdings: introduction

            2. Section 287: The maximum qualifying investment requirement

            3. Section 288: The no guaranteed loan requirement

            4. Section 289: The proportion of eligible shares requirement

            5. Section 290: The trading requirement

            6. Section 291: The carrying on of a qualifying activity requirement

            7. Section 292: Ceasing to meet requirements because of administration or receivership

            8. Section 293: The use of the money raised requirement

            9. Section 294: The relevant company to carry on the relevant qualifying activity requirement

            10. Section 295: The unquoted status requirement

            11. Section 296: The control and independence requirement

            12. Section 297: The gross assets requirement

            13. Section 298: The qualifying subsidiaries requirement

            14. Section 299: The property managing subsidiaries requirement

            15. Section 300: Meaning of “qualifying trade”

            16. Section 301: Meaning of “qualifying 90% subsidiary”

            17. Section 302: Meaning of “qualifying subsidiary”

            18. Section 303: Meaning of “excluded activities”

            19. Section 304: Excluded activities: wholesale and retail distribution

            20. Section 305: Excluded activities: leasing of ships

            21. Section 306: Excluded activities: receipt of royalties and licence fees

            22. Section 307: Excluded activities: property development

            23. Section 308: Excluded activities: hotels and comparable establishments

            24. Section 309: Excluded activities: nursing homes and residential care homes

            25. Section 310: Excluded activities: provision of services or facilities for another business

            26. Section 311: Power to amend Chapter

            27. Section 312: Winding up of the relevant company

            28. Section 313: Interpretation of Chapter

        5. Chapter 5: Powers: winding up and mergers of s

          1. Overview

            1. Section 314: Power to treat -in-liquidation as

            2. Section 315: Power to treat conditions for approval as met with respect to -in-liquidation

            3. Section 316: Power to make provision about distributions by -in-liquidation

            4. Section 317: Power to facilitate disposal to by -in-liquidation

            5. Section 318: Power in respect of periods before and after winding up

            6. Section 319: Sections 314 to 318: supplementary

            7. Section 320: Meaning of “-in-liquidation”

            8. Section 321: Power to facilitate mergers of s

            9. Section 322: Provision that may be made by regulations under section 321

            10. Section 323: Meaning of “merger” and “successor company”

            11. Section 324: Regulations under Chapter

            12. Section 325: Interpretation of Chapter

        6. Chapter 6: Supplementary and general

          1. Overview

            1. Section 326: Restructuring to which section 327 applies

            2. Section 327: Certain requirements of Chapter 4 to be treated as met

            3. Section 328: Supplementary

            4. Section 329: Conversion of convertible shares and securities

            5. Section 330: Power to facilitate company reorganisations involving exchange of shares

            6. Section 331: Meaning of a company being “in administration” or “in receivership”

            7. Section 332: Minor definitions

    7. Part 7: Community investment tax relief

      1. Overview

        1. Chapter 1: Introduction

          1. Overview

            1. Section 333: Meaning of “”

            2. Section 334: Eligibility for

            3. Section 335: Form and amount of

            4. Section 336: Meaning of “making an investment”

            5. Section 337: Determination of “the invested amount”

            6. Section 338: Meaning of “the 5 year period” and “the investment date”

            7. Section 339: Overview of other Chapters of Part

        2. Chapter 2: Accredited community development finance institutions

          1. Overview

            1. Section 340: Application and criteria for accreditation

            2. Section 341: Terms and conditions of accreditation

            3. Section 342: Period of accreditation

            4. Section 343: Delegation of Secretary of State’s functions

        3. Chapter 3: Qualifying investments

          1. Overview

            1. Section 344: Qualifying investments: introduction

            2. Section 345: Conditions to be met in relation to loans

            3. Section 346: Conditions to be met in relation to securities

            4. Section 347: Conditions to be met in relation to shares

            5. Section 348: Tax relief certificates

            6. Section 349: No pre-arranged protection against risks

        4. Chapter 4: General conditions

          1. Overview

            1. Section 350: No control of CDFI by investor

            2. Section 351: Investor must have beneficial ownership

            3. Section 352: No acquisition of share in partnership

            4. Section 353: No tax avoidance purpose

        5. Chapter 5: Claims for and attribution of

          1. Overview

            1. Section 354: Loans: no claim after disposal or excessive repayments or receipts of value

            2. Section 355: Securities or shares: no claim after disposal or excessive receipts of value

            3. Section 356: No claim after loss of accreditation by the CDFI

            4. Section 357: Attribution: general

            5. Section 358: Attribution: bonus shares

        6. Chapter 6: Withdrawal or reduction of

          1. Overview

            1. Section 359: Overview of Chapter

            2. Section 360: Disposal of loan during 5 year period

            3. Section 361: Disposal of securities or shares during 5 year period

            4. Section 362: Repayment of loan capital during 5 year period

            5. Section 363: Value received by investor during 6 year period: loans

            6. Section 364: Value received by investor during 6 year period: securities or shares

            7. Section 365: Receipts of insignificant value to be added together

            8. Section 366: When value is received

            9. Section 367: The amount of value received

            10. Section 368: Value received if there is more than one investment

            11. Section 369: Effect of receipt of value on future claims for

            12. Section 370: Receipts of value by or from connected persons

            13. Section 371: subsequently found not to have been due

            14. Section 372: Manner of withdrawal or reduction of

        7. Chapter 7: Supplementary and general

          1. Overview

            1. Section 373: Information to be provided by the investor

            2. Section 374: Disclosure

            3. Section 375: Nominees

            4. Section 376: Application for postponement of tax pending appeal

            5. Section 377: Identification of securities or shares on a disposal

            6. Section 378: Meaning of “issue of securities or shares”

            7. Section 379: Meaning of “disposal”

            8. Section 380: Construction of references to being “held continuously”

            9. Section 381: Meaning of “associate”

            10. Section 382: Minor definitions

    8. Part 8: Other reliefs

      1. Overview

        1. Chapter 1: Interest payments

          1. Overview

            1. Section 383: Relief for interest payments

            2. Section 384: General restrictions on relief under Chapter

            3. Section 385: General provisions about loans

            4. Section 386: Loans partly meeting requirements

            5. Section 387: Exclusion of double relief

            6. Section 388: Loan to buy plant or machinery for partnership use

            7. Section 389: Eligibility requirements for interest on loans within section 388

            8. Section 390: Loan to buy plant or machinery for employment use

            9. Section 391: Eligibility requirements for interest on loans within section 390

            10. Section 392: Loan to buy interest in close company

            11. Section 393: Eligibility requirements for interest on loans within section 392

            12. Section 394: Meaning of “material interest” in section 393

            13. Section 395: Meaning of “associate” in section 394

            14. Section 396: Loan to buy interest in employee-controlled company

            15. Section 397: Eligibility requirements for interest on loans within section 396

            16. Section 398: Loan to invest in partnership

            17. Section 399: Eligibility requirements for interest on loans within section 398

            18. Section 400: Film partnerships

            19. Section 401: Loan to invest in co-operative

            20. Section 402: Eligibility requirements for interest on loans within section 401

            21. Section 403: Loan to pay inheritance tax

            22. Section 404: Eligibility requirements for interest on loans within section 403

            23. Section 405: Carry back and forward of relief for interest on loans within section 403

            24. Section 406: Effect of recovery of capital in the case of some loans

            25. Section 407: Events counting as recovery of capital for section 406

            26. Section 408: Replacement loans

            27. Section 409: Business successions between partnerships

            28. Section 410: Other business successions and reorganisations

            29. Section 411: Ineligibility of interest where business is occupation of commercial woodlands

            30. Section 412: Information

        2. Chapter 2: Gift aid

          1. Overview

            1. Section 413: Overview of Chapter

            2. Section 414: Relief for gifts to charity

            3. Section 415: Meaning of “grossed up amount”

            4. Section 416: Meaning of “qualifying donation”

            5. Section 417: Meaning of “benefits associated with a gift”

            6. Section 418: Restrictions on associated benefits

            7. Section 419: Gifts and benefits linked to periods of less than 12 months

            8. Section 420: Disregard of certain admission rights

            9. Section 421: Admission rights: supplementary

            10. Section 422: Disqualified overseas gifts

            11. Section 423: Restriction of certain reliefs

            12. Section 424: Charge to tax

            13. Section 425: Total amount of income tax to which individual charged for a tax year

            14. Section 426: Election by donor: gift treated as made in previous tax year

            15. Section 427: Meaning of “charged amount”

            16. Section 428: Meaning of “gift aid declaration”

            17. Section 429: Giving through self-assessment return

            18. Section 430: “Charity” to include exempt bodies

        3. Chapter 3: Gifts of shares, securities and real property to charities

          1. Overview

            1. Section 431: Relief for gifts of shares, securities and real property to charities

            2. Section 432: Meaning of “qualifying investment”

            3. Section 433: Meaning of “qualifying interest in land”

            4. Section 434: The relievable amount

            5. Section 435: Incidental costs of making disposal

            6. Section 436: Consideration

            7. Section 437: Value of net benefit to charity

            8. Section 438: Market value of qualifying investments

            9. Section 439: Meaning of “disposal-related obligation”

            10. Section 440: Meaning and amount of “disposal-related liability”

            11. Section 441: Certificate required from charity

            12. Section 442: Qualifying interests in land held jointly

            13. Section 443: Calculation of relievable amount where joint disposal of interest in land

            14. Section 444: Disqualifying events

            15. Section 445: Prohibition against double relief

            16. Section 446: “Charity” to include exempt bodies

        4. Chapter 4: Annual payments and patent royalties

          1. Overview

            1. Section 447: Overview of Chapter

            2. Section 448: Relief for individuals

            3. Section 449: Relief for other persons

            4. Section 450: Other persons: payments ineligible for relief

            5. Section 451: Special rule for persons affected by section 733 of

            6. Section 452: The gross amount of a payment

        5. Chapter 5: Qualifying maintenance payments

          1. Overview

            1. Section 453: Tax reduction for qualifying maintenance payments

            2. Section 454: Meaning of “qualifying maintenance payment”

            3. Section 455: Child support maintenance payments

            4. Section 456: Payments under orders for recovery of benefit

        6. Chapter 6: Miscellaneous other reliefs

          1. Overview

            1. Section 457: Payments to trade unions

            2. Section 458: Payments to police organisations

            3. Section 459: Payments for benefit of family members

            4. Section 460: Residence of claimants

            5. Section 461: Spreading of patent royalty receipts

    9. Part 9: Special rules about settlements and trustees

      1. Overview

        1. Chapter 1: Introduction

          1. Overview

            1. Section 462: Overview of Part

            2. Section 463: Interpretation of Part

            3. Section 464: Scottish trusts

        2. Chapter 2: General provision about settlements and trustees

          1. Overview

            1. Section 465: Overview of Chapter and interpretation

            2. Section 466: Meaning of “settled property”

            3. Section 467: Meaning of “settlor”

            4. Section 468: Meaning of “disposable property”

            5. Section 469: Person ceasing to be a settlor

            6. Section 470: Transfers between settlements

            7. Section 471: Identification of settlor following transfer covered by section 470

            8. Section 472: Settlor where property becomes settled because of variation of will

            9. Section 473: Deceased person as settlor where variation of will

            10. Section 474: Trustees of settlement to be treated as a single and distinct person

            11. Section 475: Residence of trustees

            12. Section 476: How to work out whether settlor meets condition C

            13. Section 477: Sub-fund elections under Schedule 4ZA to 1992

            14. Section 478: References to settled property in regulations

        3. Chapter 3: Special rates for trustees’ income

          1. Overview

            1. Section 479: Trustees’ accumulated or discretionary income to be charged at special rates

            2. Section 480: Meaning of “accumulated or discretionary income”

            3. Section 481: Other amounts to be charged at special rates for trustees

            4. Section 482: Types of amount to be charged at special rates for trustees

            5. Section 483: Sums paid by personal representatives to trustees

        4. Chapter 4: Trustees’ expenses and special rates for trustees

          1. Overview

            1. Section 484: Trustees’ expenses to be set against trustees’ trust rate income

            2. Section 485: Carry forward of unused expenses

            3. Section 486: How allowable expenses are to be set against trust rate income

            4. Section 487: Non-UK resident trustees

        5. Chapter 5: Share incentive plans

          1. Overview

            1. Section 488: Application of section 479 to trustees of approved share incentive plans

            2. Section 489: “The applicable period” in relation to shares

            3. Section 490: Interpretation of Chapter

        6. Chapter 6: Trustees’ first slice of trust rate income

          1. Overview

            1. Section 491: Special rates not to apply to first slice of trustees’ trust rate income

            2. Section 492: Cases where settlor has made more than one settlement

        7. Chapter 7: Discretionary payments

          1. Overview

            1. Section 493: Discretionary payments by trustees

            2. Section 494: Grossing up of discretionary payment and payment of income tax

            3. Section 495: Statement about deduction of income tax

            4. Section 496: Income tax charged on trustees

            5. Section 497: Calculation of trustees’ tax pool

            6. Section 498: Types of income tax for the purposes of section 497

        8. Chapter 8: Trustees’ expenses and beneficiary’s income

          1. Overview

            1. Section 499: Application of Chapter

            2. Section 500: Restrictions on use of trustees’ expenses to reduce the beneficiary’s income

            3. Section 501: Non-UK resident beneficiaries

            4. Section 502: Meaning of “untaxed income” in section 501

            5. Section 503: How beneficiary’s income is reduced

        9. Chapter 9: Unauthorised unit trusts

          1. Overview

            1. Section 504: Treatment of income of unauthorised unit trust

            2. Section 505: Relief for trustees of unauthorised unit trust

            3. Section 506: Special rules for trustees affected by section 733 of

        10. Chapter 10: Heritage maintenance settlements

          1. Overview

            1. Section 507: Overview of Chapter

            2. Section 508: Election by trustees

            3. Section 509: Change of circumstances during a tax year

            4. Section 510: Sums applied for property maintenance purposes

            5. Section 511: Prevention of double taxation: reimbursement of settlor

            6. Section 512: Charge to tax on some settlements

            7. Section 513: Income charged

            8. Section 514: Persons liable

            9. Section 515: Rate of tax

            10. Section 516: Transfer of property between settlements

            11. Section 517: Exemption for income treated as income of settlor

    10. Part 10: Special rules about charitable trusts

      1. Overview

        1. Section 518: Overview of Part

        2. Section 519: Meaning of “charitable trust”

        3. Section 520: Gifts entitling donor to gift aid relief: income tax treated as paid

        4. Section 521: Gifts entitling donor to gift aid relief: income tax liability and exemption

        5. Section 522: Gifts of money from companies: income tax liability and exemption

        6. Section 523: Payments from other charities: income tax liability and exemption

        7. Section 524: Exemption for profits of charitable trades

        8. Section 525: Meaning of “charitable trade”

        9. Section 526: Exemption for profits of small-scale trades

        10. Section 527: Exemption from charges under provisions to which section 1016 applies

        11. Section 528: Condition as to trading and miscellaneous incoming resources

        12. Section 529: Exemption for profits from fund-raising events

        13. Section 530: Exemption for profits from lotteries

        14. Section 531: Exemption for property income

        15. Section 532: Exemption for savings and investment income

        16. Section 533: Exemption for public revenue dividends

        17. Section 534: Exemption for transactions in deposits

        18. Section 535: Exemption for offshore income gains

        19. Section 536: Exemption for certain miscellaneous income

        20. Section 537: Exemption for income from estates in administration

        21. Section 538: Requirement to make claim

        22. Section 539: Restrictions on exemptions

        23. Section 540: The non-exempt amount

        24. Section 541: Attributing income to the non-exempt amount

        25. Section 542: How income is attributed to the non-exempt amount

        26. Section 543: Meaning of “non-charitable expenditure”

        27. Section 544: Section 543: supplementary

        28. Section 545: Section 543(1)(f): meaning of expenditure

        29. Section 546: Section 543(1)(f): tax year in which certain expenditure treated as incurred

        30. Section 547: Section 543(1)(f): payment to body outside the UK

        31. Section 548: Section 543(1)(i) and (j): investments and loans

        32. Section 549: Transactions with substantial donors

        33. Section 550: Meaning of “relievable gift”

        34. Section 551: Non-charitable expenditure in substantial donor transactions

        35. Section 552: Adjustment if section 551(1) and (2) applied to single transaction

        36. Section 553: Section 551: certain payments and benefits to be ignored

        37. Section 554: Transactions: exceptions

        38. Section 555: Donors: exceptions

        39. Section 556: Connected charities

        40. Section 557: Substantial donor transactions: supplementary

        41. Section 558: Approved charitable investments

        42. Section 559: Securities which are approved charitable investments

        43. Section 560: Conditions to be met for some securities

        44. Section 561: Approved charitable loans

        45. Section 562: Excess expenditure treated as non-charitable expenditure of earlier years

        46. Section 563: Rules for attributing excess expenditure to earlier years

        47. Section 564: Adjustments in consequence of section 562

    11. Part 11: Manufactured payments and repos

      1. Overview

        1. Chapter 1: Introduction

          1. Section 565: Overview of Part

          2. Section 566: Meaning of “UK shares” and “UK securities”

          3. Section 567: Meaning of “overseas securities” and “overseas dividend”

          4. Section 568: Meaning of “stock lending arrangement”

          5. Section 569: Meaning of “repo”

          6. Section 570: Meaning of “buying back” securities

          7. Section 571: Meaning of “related” agreements

        2. Chapter 2: Manufactured payments

          1. Overview

            1. Section 572: Overview of Chapter

            2. Section 573: Manufactured dividends on UK shares

            3. Section 574: Allowable deductions: matching

            4. Section 575: Allowable deductions: restriction on double-counting

            5. Section 576: Manufactured dividends on UK shares: Real Estate Investment Trusts

            6. Section 577: Statements about manufactured dividends

            7. Section 578: Manufactured interest on UK securities

            8. Section 579: Allowable deductions: matching

            9. Section 580: Allowable deductions: restriction on double counting

            10. Section 581: Manufactured overseas dividends

            11. Section 582: Powers about manufactured overseas dividends

            12. Section 583: Manufactured payments exceeding underlying payments

            13. Section 584: Manufactured payments less than underlying payments

            14. Section 585: Power to deal with other special cases

            15. Section 586: Powers about administrative provisions

            16. Section 587: Power for manufactured payments to be eligible for relief

            17. Section 588: Regulation-making powers: general

            18. Section 589: Meaning of “gross amount”: interest and manufactured overseas dividends

            19. Section 590: Meaning of “relevant withholding tax”

            20. Section 591: Interpretation of other terms used in Chapter

        3. Chapter 3: Tax credits: stock lending arrangements and repos

          1. Overview

            1. Section 592: No tax credits for borrower under stock lending arrangement

            2. Section 593: No tax credits for interim holder under repo

            3. Section 594: No tax credits for original owner under repo

            4. Section 595: Meaning of “manufactured dividend”

        4. Chapter 4: Deemed manufactured payments

          1. Overview

            1. Section 596: Deemed manufactured payments: stock lending arrangements

            2. Section 597: Deemed interest: cash collateral under stock lending arrangements

            3. Section 598: Cash collateral under stock lending arrangements: supplementary

            4. Section 599: Sections 597 and 598: quasi-stock lending arrangements and quasi-cash collateral

            5. Section 600: Meaning of “quasi-stock lending arrangements” and “quasi-cash collateral”

            6. Section 601: Repo cases in which deeming rules apply

            7. Section 602: Deemed manufactured payments: repos

            8. Section 603: Deemed deductions of tax

            9. Section 604: Deemed increase in repurchase price: price differences under repos

            10. Section 605: Deemed increase in repurchase price: other income tax purposes

            11. Section 606: Interpretation of Chapter

        5. Chapter 5: Price differences under repos

          1. Overview

            1. Section 607: Treatment of price differences under repos

            2. Section 608: Exceptions to section 607

            3. Section 609: Additional income tax consequences of price differences

            4. Section 610: Repurchase price in deemed manufactured payment case

            5. Section 611: Power to modify Chapter in non-arm’s length case

        6. Chapter 6: Powers to modify repo provisions

          1. Overview

            1. Section 612: Non-standard repo cases

            2. Section 613: Redemption arrangements

            3. Section 614: Sections 612 and 613: supplementary

    12. Part 12: Accrued Income Profits

      1. Overview

        1. Chapter 1 Introduction

          1. Section 615: Overview of Part

        2. Chapter 2: Accrued income profits and losses

          1. Section 616: Charge to tax on accrued income profits

          2. Section 617: Income charged

          3. Section 618: Person liable

          4. Section 619: Meaning of “securities” and when securities are of the same kind

          5. Section 620: Transactions which are transfers: general

          6. Section 621: Transferors and transferees

          7. Section 622: Application of Chapter to different kinds of transfer

          8. Section 623: Transfers with accrued interest

          9. Section 624: Transfers without accrued interest

          10. Section 625: Transfers with unrealised interest

          11. Section 626: Transfers of variable rate securities

          12. Section 627: Meaning of “variable rate securities”

          13. Section 628: Making accrued income profits and losses: general rules

          14. Section 629: Calculating accrued income profits and losses where section 628 applies

          15. Section 630: Making accrued income profits: settlement day outside interest period

          16. Section 631: Amount of accrued income profits where section 630 applies

          17. Section 632: Payment on transfer with accrued interest

          18. Section 633: Payment on transfer without accrued interest

          19. Section 634: Payment on transfer with unrealised interest

          20. Section 635: Payment on transfer of variable rate securities

          21. Section 636: Exception where there is a transfer to a legatee

          22. Section 637: Accrued income losses treated as payments in next interest period

          23. Section 638: Excluded persons: disregard of certain payments and transfers

          24. Section 639: Small holdings: individuals

          25. Section 640: Small holdings: personal representatives

          26. Section 641: Small holdings: trustees of a disabled person’s trusts

          27. Section 642: Traders

          28. Section 643: Non-residents

          29. Section 644: Individuals to whom the remittance basis applies

          30. Section 645: Charitable trusts

          31. Section 646: Pension scheme trustees

          32. Section 647: Makers of manufactured payments

          33. Section 648: Strips of gilt-edged securities

          34. Section 649: New securities issued with extra return

          35. Section 650: Trading stock appropriations

          36. Section 651: Owner becoming entitled to securities as trustee

          37. Section 652: Securities ceasing to be held on charitable trusts

          38. Section 653: Stock lending

          39. Section 654: Sale and repurchase arrangements

          40. Section 655: Transfers under sale and repurchase arrangements

          41. Section 656: Power to modify: non-standard sale and repurchase arrangements

          42. Section 657: Power to modify: redemption arrangements

          43. Section 658: Powers to modify: supplementary

          44. Section 659: Transfers with or without accrued interest: interest in default

          45. Section 660: Transfers with unrealised interest: interest in default

          46. Section 661: Successive transfers with unrealised interest in default

          47. Section 662: New securities issued with extra return: special rules about payments

          48. Section 663: Transfers without accrued interest to makers of manufactured payments

          49. Section 664: Foreign currency securities: sterling equivalent of payments on transfers

          50. Section 665: Foreign currency securities: unrealised interest payable in foreign currency

          51. Section 666: Certain transfers by or to nominees or trustees treated as made by or to others

          52. Section 667: Trustees’ accrued income profits treated as settlement income

          53. Section 668: Relief for unremittable transfer proceeds: general

          54. Section 669: Relief for unremittable transfer proceeds: section 630 profits

          55. Section 670: Withdrawal of relief

          56. Section 671: Meaning of “interest”

          57. Section 672: Meaning of “interest payment day”

          58. Section 673: Meaning of “interest period”

          59. Section 674: Meaning of “the settlement day”

          60. Section 675: The holding of securities

          61. Section 676: Nominal value of securities: general

          62. Section 677: Nominal value: foreign currency securities

        3. Chapter 3: Exemptions relating to interest on securities

          1. Section 678: Exemptions relating to interest on securities: preliminary

          2. Section 679: Interest on securities involving accrued income losses: general

          3. Section 680: Interest on securities involving accrued income losses: foreign trustees

          4. Section 681: Unrealised interest received by transferee after transfer

    13. Part 13: Tax avoidance

      1. Overview

        1. Chapter 1: Transactions in securities

          1. Overview

            1. Section 682: Overview of Chapter

            2. Section 683: Meaning of “income tax advantage”

            3. Section 684: Person liable to counteraction of income tax advantage

            4. Section 685: Exception where no tax avoidance object shown

            5. Section 686: Abnormal dividends used for exemptions or reliefs (circumstance A)

            6. Section 687: Deductions from profits obtained following distribution or dealings (circumstance B)

            7. Section 688: Receipt of consideration representing company’s assets, future receipts or trading stock (circumstance C)

            8. Section 689: Receipt of consideration in connection with relevant company distribution (circumstance D)

            9. Section 690: Receipt of assets of relevant company (circumstance E)

            10. Section 691: Meaning of “relevant company” in sections 689 and 690

            11. Section 692: Abnormal dividends: general

            12. Section 693: Abnormal dividends: the excessive return condition

            13. Section 694: Abnormal dividends: the excessive accrual condition

            14. Section 695: Preliminary notification that section 684 may apply

            15. Section 696: Opposed notifications: statutory declarations

            16. Section 697: Opposed notifications: determinations by tribunal

            17. Section 698: Counteraction notices

            18. Section 699: Limit on amount assessed in section 689 and 690 cases

            19. Section 700: Timing of assessments in section 690 cases

            20. Section 701: Application for clearance of transactions

            21. Section 702: Effect of clearance notification under section 701

            22. Section 703: Power to obtain information

            23. Section 704: The tribunal

            24. Section 705: Appeals against counteraction notices

            25. Section 706: Rehearing by tribunal of appeal against counteraction notice

            26. Section 707: Statement of case by tribunal for opinion of High Court or Court of Session

            27. Section 708: Cases before High Court or Court of Session

            28. Section 709: Effect of appeals against tribunal’s determination under section 706

            29. Section 710: Appeals from High Court or Court of Session

            30. Section 711: Proceedings in Northern Ireland

            31. Section 712: Application of Chapter where individual within section 684 dies

            32. Section 713: Interpretation of Chapter

        2. Chapter 2: Transfer of assets abroad

          1. Overview

            1. Section 714: Overview of Chapter

            2. Section 715: Meaning of “relevant transaction”

            3. Section 716: Meaning of “relevant transfer” and “transfer”

            4. Section 717: Meaning of “assets”

            5. Section 718: Meaning of “person abroad”

            6. Section 719: Meaning of “associated operation”

            7. Section 720: Charge to tax on income treated as arising under section 721

            8. Section 721: Individuals with power to enjoy income as a result of relevant transactions

            9. Section 722: When an individual has power to enjoy income of person abroad

            10. Section 723: The enjoyment conditions

            11. Section 724: Special rules where benefit provided out of income of person abroad

            12. Section 725: Reduction in amount charged where controlled foreign company involved

            13. Section 726: Non-domiciled individuals

            14. Section 727: Charge to tax on income treated as arising under section 728

            15. Section 728: Individuals receiving capital sums as a result of relevant transactions

            16. Section 729: The capital receipt conditions

            17. Section 730: Non-domiciled individuals

            18. Section 731: Charge to tax on income treated as arising under section 732

            19. Section 732: Non-transferors receiving a benefit as a result of relevant transactions

            20. Section 733: Income charged under section 731

            21. Section 734: Reduction in amount charged: previous capital gains tax charge

            22. Section 735: Non-domiciled individuals

            23. Section 736: Exemptions: introduction

            24. Section 737: Exemption: all relevant transactions post-4 December 2005 transactions

            25. Section 738: Meaning of “commercial transaction”

            26. Section 739: Exemption: all relevant transactions pre-5 December 2005 transactions

            27. Section 740: Exemption: relevant transactions include both pre-5 December 2005 and post-4 December 2005 transactions

            28. Section 741: Application of section 742 (partial exemption)

            29. Section 742: Partial exemption where later associated operations fail conditions

            30. Section 743: No duplication of charges

            31. Section 744: Meaning of taking income into account in charging income tax for section 743

            32. Section 745: Rates of tax applicable to income charged under sections 720 and 727

            33. Section 746: Deductions and reliefs where individual charged under section 720 or 727

            34. Section 747: Amounts corresponding to accrued income scheme profits and related interest

            35. Section 748: Power to obtain information

            36. Section 749: Restrictions on particulars to be provided by solicitors

            37. Section 750: Restrictions on particulars to be provided by banks

            38. Section 751: Special Commissioners’ jurisdiction on appeals

        3. Chapter 3: Transactions in land

          1. Overview

            1. Section 752: Overview of Chapter

            2. Section 753: Meaning of disposing of land

            3. Section 754: Priority of other income tax provisions

            4. Section 755: Charge to tax on gains from transactions in land

            5. Section 756: Income treated as arising where gains obtained from some land disposals

            6. Section 757: Person obtaining gain

            7. Section 758: Income charged

            8. Section 759: Person liable

            9. Section 760: Method of calculating gain

            10. Section 761: Transactions, arrangements, sales and realisations relevant for Chapter

            11. Section 762: Tracing value

            12. Section 763: Meaning of “another person”

            13. Section 764: Valuations and apportionments

            14. Section 765: Exemption: gain attributable to period before intention to develop formed

            15. Section 766: Exemption: disposals of shares in companies holding land as trading stock

            16. Section 767: Exemption: private residences

            17. Section 768: Recovery of tax where consideration receivable by person not assessed

            18. Section 769: Recovery of tax: certificates of tax paid

            19. Section 770: Clearance procedure

            20. Section 771: Power to obtain information

            21. Section 772: Interpretation of Chapter

            22. Section 776(13)(a) of : “land”

            23. Section 777(13) of : “receivable”

        4. Chapter 4: Sales of occupation income

          1. Overview

            1. Section 773: Overview of Chapter

            2. Section 774: Meaning of “occupation”

            3. Section 775: Priority of other tax provisions

            4. Section 776: Charge to tax on sale of occupation income

            5. Section 777: Conditions for sections 778 and 779 to apply

            6. Section 778: Income arising where capital amount other than derivative property or right obtained

            7. Section 779: Income arising where derivative property or right obtained

            8. Section 780: Transactions, arrangements, sales and realisations relevant for Chapter

            9. Section 781: Tracing value

            10. Section 782: Meaning of “other person”

            11. Section 783: Valuations and apportionments

            12. Section 784: Exemption for sales of going concerns

            13. Section 785: Restriction on exemption: sales of future earnings

            14. Section 786: Recovery of tax where consideration receivable by person not assessed

            15. Section 787: Recovery of tax: certificates of tax paid

            16. Section 788: Power to obtain information

            17. Section 789: Minor definitions

        5. Chapter 5: Avoidance involving trading losses

          1. Overview

            1. Section 790: Overview of Chapter

            2. Section 791: Charge to tax on income treated as received under section 792

            3. Section 792: Partners claiming excess sideways or capital gains relief

            4. Section 793: Calculating the amount of income treated as received

            5. Section 794: Meaning of “the total amount of trade losses claimed”

            6. Section 795: Meaning of “post-1 December 2004 loss”

            7. Section 796: Charge to tax on income treated as received under section 797

            8. Section 797: Individuals claiming sideways or capital gains relief for film-related losses

            9. Section 798: Meaning of “non-taxable consideration”

            10. Section 799: Meaning of “disposal of a right of the individual to profits”

            11. Section 800: Meaning of “film-related losses”

            12. Section 801: Meaning of “capital contribution”

            13. Section 802: Exclusion of amounts in calculating capital contribution by a partner

            14. Section 803: Prohibition against double counting

            15. Section 804: Charge to tax on income treated as received under section 805

            16. Section 805: Partners claiming relief for licence-related trading losses

            17. Section 806: Calculation of amount of income treated as received by the individual

            18. Section 807: Supplementary provision relating to calculation in section 806

            19. Section 808: Meaning of “disposal of the licence”

            20. Section 809: Other definitions

    14. Part 14: Income tax liability: miscellaneous rules

      1. Overview

        1. Chapter 1: Limits on liability to income tax of non‑UK residents

          1. Overview

            1. Section 810: Overview of Chapter

            2. Section 811: Limit on liability to income tax of non‑UK residents

            3. Section 812: Case where limit not to apply

            4. Section 813: Meaning of “disregarded income”

            5. Section 814: Meaning of “disregarded transaction income”

            6. Section 815: Limit on liability to income tax of non‑UK resident companies

            7. Section 816: Meaning of “disregarded company income”

            8. Section 817: The independent broker conditions

            9. Section 818: The independent investment manager conditions

            10. Section 819: Investment managers: the 20% rule

            11. Section 820: Meaning of “qualifying period”

            12. Section 821: Meaning of “relevant disregarded income”

            13. Section 822: Meaning of “beneficial entitlement”

            14. Section 823: Treatment of transactions where requirements of 20% rule not met

            15. Section 824: Application of 20% rule to collective investment schemes

            16. Section 825: Meaning of “disregarded savings and investment income”

            17. Section 826: Meaning of “disregarded annual payments”

            18. Section 827: Meaning of “investment manager” and “investment transaction”

            19. Section 828: Transactions through brokers and investment managers

        2. Chapter 2: Residence

          1. Overview

            1. Section 829: Residence of individuals temporarily abroad

            2. Section 830: Residence of individuals working abroad

            3. Section 831: Foreign income of individuals in the United Kingdom for temporary purpose

            4. Section 832: Employment income of individuals in the United Kingdom for temporary purpose

            5. Section 833: Visiting forces and staff of designated allied headquarters

            6. Section 834: Residence of personal representatives

            7. Section 835: Residence rules for trustees and companies

        3. Chapter 3: Jointly held property

          1. Overview

      2. Relevance of “earned income”

        1. Section 277 of

        2. Section 836: Jointly held property

        3. Section 837: Jointly held property: declarations of unequal beneficial interests

        4. Chapter 4: Other miscellaneous rules

          1. Overview

            1. Section 838: Local authorities and local authority associations

            2. Section 839: Issue departments of the Reserve Bank of India and the State Bank of Pakistan

            3. Section 840: Government securities held by non-UK resident central banks

            4. Section 841: Official agents of Commonwealth countries

            5. Section 842: European Economic Interest Groupings

            6. Section 843: Restriction of deductions for annual payments

            7. Section 844: Letters patent : exempting provisions

            8. Section 845: Extra return to be treated as interest

            9. Section 846: Interpretation of section 845

    15. Part 15: Deduction of income tax at source

      1. Overview

        1. Chapter 1: Introduction

          1. Section 847: Overview of Part

          2. Section 848: Income tax deducted at source treated as income tax paid by recipient

          3. Section 849: Interaction with other Income Tax Acts provisions

        2. Chapter 2: Deduction by deposit-takers and building societies

          1. Overview

            1. Section 850: Overview of Chapter

            2. Section 851: Duty to deduct sums representing income tax

            3. Section 852: Power to make regulations disapplying section 851

            4. Section 853: Meaning of “deposit-taker”

            5. Section 854: Power to prescribe persons as deposit-takers

            6. Section 855: Meaning of “investment” and “deposit”

            7. Section 856: Investments which are relevant investments

            8. Section 857: Investments to be treated as being or as not being relevant investments

            9. Section 858: Declarations of non-UK residence: individuals

            10. Section 859: Declarations of non-UK residence: Scottish partnerships

            11. Section 860: Declarations of non-UK residence: personal representatives

            12. Section 861: Declarations of non-UK residence: settlements

            13. Section 862: Inspection of declarations

            14. Section 863: General client account deposits

            15. Section 864: Qualifying uncertificated eligible debt security units

            16. Section 865: Qualifying certificates of deposit

            17. Section 866: Qualifying time deposits

            18. Section 867: Lloyd’s premium trust funds

            19. Section 868: Investments held outside the United Kingdom

            20. Section 869: Sale and repurchase of securities

            21. Section 870: Other investments

            22. Section 871: Power to make regulations to give effect to Chapter

            23. Section 872: Power to make orders amending Chapter

            24. Section 873: Discretionary or accumulation settlements

        3. Chapter 3: Deduction from certain payments of yearly interest

          1. Overview

            1. Section 874: Duty to deduct from certain payments of yearly interest

            2. Section 875: Interest paid by building societies

            3. Section 876: Interest paid by deposit-takers

            4. Section 877: UK public revenue dividends

            5. Section 878: Interest paid by banks

            6. Section 879: Interest paid on advances from banks

            7. Section 880: Interest paid on advances from building societies

            8. Section 881: National Savings Bank interest

            9. Section 882: Quoted Eurobond interest

            10. Section 883: Interest on loan to buy life annuity

            11. Section 884: Relevant foreign income

            12. Section 885: Authorised persons dealing in financial instruments

            13. Section 886: Interest paid by recognised clearing houses

            14. Section 887: Industrial and provident society payments

            15. Section 888: Statutory interest

        4. Chapter 4: Deduction from payments in respect of building society securities

          1. Overview

            1. Section 889: Payments in respect of building society securities

        5. Chapter 5: Deduction from payments of UK public revenue dividends

          1. Overview

            1. Section 890: Overview of Chapter

            2. Section 891: Meaning of “UK public revenue dividend”

            3. Section 892: Duty to deduct from certain UK public revenue dividends

            4. Section 893: Payments of UK public revenue dividends which are payable gross

            5. Section 894: Treasury directions

            6. Section 895: Deduction at source application

            7. Section 896: Withdrawal of application

            8. Section 897: Power to make regulations

        6. Chapter 6: Deduction from annual payments and patent royalties

          1. Overview

            1. Section 898: Overview of Chapter

            2. Section 899: Meaning of “qualifying annual payment”

            3. Section 900: Deduction from commercial payments made by individuals

            4. Section 901: Deduction from annual payments made by other persons

            5. Section 902: Meaning of “applicable rate” in section 901

            6. Section 903: Deduction from patent royalties

            7. Section 904: Annual payments for dividends or non-taxable consideration

            8. Section 905: Interpretation of Chapter

        7. Chapter 7: Deduction from other payments connected with intellectual property

          1. Overview

            1. Section 906: Certain royalties where usual place of abode of owner is abroad

            2. Section 907: Meaning of “relevant intellectual property right”

            3. Section 908: Royalty payments made through UK resident agents

            4. Section 909: Royalty payments: further provision

            5. Section 910: Proceeds of a sale of patent rights: payments to non-UK residents

        8. Chapter 8: Chapters 6 and 7: Special provision in relation to royalties

          1. Overview

            1. Section 911: Double taxation arrangements: deduction at treaty rate

            2. Section 912: Power to make directions disapplying section 911

            3. Section 913: Interpretation of sections 911 and 912

            4. Section 914: companies: discretion to make payment gross

            5. Section 915: Power to make directions disapplying section 914

            6. Section 916: Duty of payee to notify if payment not exempt

            7. Section 917: Supplementary

        9. Chapter 9: Manufactured payments

          1. Overview

            1. Section 918: Manufactured dividends on UK shares: Real Estate Investment Trusts

            2. Section 919: Manufactured interest on UK securities: payments by UK residents

            3. Section 920: Foreign payers of manufactured interest: the reverse charge

            4. Section 921: Cases where interest on underlying securities paid gross

            5. Section 922: Manufactured overseas dividends: payments by UK residents

            6. Section 923: Foreign payers of manufactured overseas dividends: the reverse charge

            7. Section 924: Power to reduce section 923 liability

            8. Section 925: Power to provide set-off entitlement

            9. Section 926: Interpretation of Chapter

            10. Section 927: Regulation-making powers: general

        10. Chapter 10: Deduction from non-commercial payments by companies

          1. Section 928: Chargeable payments connected with exempt distributions

        11. Chapter 11: Payments between companies : exception from duties to deduct

          1. Overview

            1. Section 929: Overview of Chapter

            2. Section 930: Exception from duties to deduct sums representing income tax

            3. Section 931: Power to make directions disapplying section 930

            4. Section 932: Meaning of “qualifying partnership”

            5. Section 933: UK resident companies

            6. Section 934: Non-UK resident companies

            7. Section 935: PEP and ISA managers

            8. Section 936: Recipients who are to be paid gross

            9. Section 937: Partnerships

            10. Section 938: Consequences of reasonable but incorrect belief

        12. Chapter 12: Funding bonds

          1. Overview

            1. Section 939: Duty to retain bonds where issue treated as payment of interest

            2. Section 940: Exception from duty to retain bonds

        13. Chapter 13: Unauthorised unit trusts

          1. Overview

            1. Section 941: Deemed payments to unit holders and deemed deductions of income tax

            2. Section 942: Income tax to be collected from trustees

            3. Section 943: Calculation of trustees’ income pool

        14. Chapter 14: Tax avoidance: directions for duty to deduct to apply

          1. Section 944: Directions for deduction from payments to non-UK residents

        15. Chapter 15: Collection: deposit-takers, building societies and certain companies

          1. Overview

            1. Section 945: Overview of Chapter

            2. Section 946: Payments within this section

            3. Section 947: Return periods

            4. Section 948: Meaning of “accounting period”

            5. Section 949: Payments in an accounting period

            6. Section 950: Payments otherwise than in an accounting period

            7. Section 951: Collection and payment of income tax

            8. Section 952: Conditions for a set-off claim

            9. Section 953: How a set-off claim works

            10. Section 954: Proceedings begun after a set-off claim is made

            11. Section 955: Proceedings begun before a set-off claim is made

            12. Section 956: Assessments where section 946 payment included in return

            13. Section 957: Assessments in other cases

            14. Section 958: Payer’s duty to deliver amended return

            15. Section 959: Application of Income Tax Acts provisions about time limits for assessments

            16. Section 960: Further provisions about assessments

            17. Section 961: Relationship between Chapter and Income Tax Acts powers

            18. Section 962: Power to make regulations modifying Chapter

        16. Chapter 16: Collection: certain payments by other persons

          1. Overview

            1. Section 963: Collection of income tax on certain payments by other persons

        17. Chapter 17: Collection through self-assessment return

          1. Overview

            1. Section 964: Collection through self-assessment return

        18. Chapter 18: Other regimes involving the deduction of income tax at source

          1. Overview

            1. Section 965: Overview of sections 966 to 970

            2. Section 966: Duty to deduct and account for sums representing income tax

            3. Section 967: Calculation of sums representing income tax

            4. Section 968: Treatment of sums representing income tax

            5. Section 969: Regulations

            6. Section 970: Supplementary

            7. Section 971: Income tax due in respect of income of non-resident landlords

            8. Section 972: Regulations under section 971

            9. Section 973: Income tax due in respect of distributions

            10. Section 974: Regulations under section 973

        19. Chapter 19: General

          1. Overview

            1. Section 975: Statements about deduction of income tax

            2. Section 976: Arrangements for payments of interest less tax or at specified net rate

            3. Section 977: Payments to companies

            4. Section 978: Application to public departments

            5. Section 979: Designated international organisations: exceptions from duties to deduct

            6. Section 980: Derivative contracts: exception from duties to deduct

            7. Section 981: Foreign currency securities : exception from duties to deduct

            8. Section 982: Income tax is calculated by reference to gross amounts

            9. Section 983: Meaning of “deposit”

            10. Section 984: Meaning of “financial instrument”

            11. Section 985: Meaning of “qualifying certificate of deposit”

            12. Section 986: Meaning of “qualifying uncertificated eligible debt security unit”

            13. Section 987: Meaning of “quoted Eurobond”

    16. Part 16: Income Tax Acts definitions

      1. Overview

        1. Chapter 1: Definitions

          1. Overview

            1. Section 988: Overview of Chapter

            2. Section 989: The definitions

            3. Section 990: Meaning of “Act”

            4. Section 991: Meaning of “bank”

            5. Section 992: Meaning of “company”

            6. Section 993: Meaning of “connected” persons

            7. Section 994: Meaning of “connected” persons: supplementary

            8. Section 995: Meaning of “control”

            9. Section 996: Meaning of “farming” and related expressions

            10. Section 997: Meaning of “generally accepted accounting practice” and related expressions

            11. Section 998: Meaning of “grossing up”

            12. Section 999: Meaning of “local authority”

            13. Section 1000: Meaning of “local authority association”

            14. Section 1001: Meaning of “offshore installation”

            15. Section 1002: Regulations about the meaning of “offshore installation”

            16. Section 1003: Meaning of “oil and gas exploration and appraisal”

            17. Section 1004: Meaning of “property investment ”

            18. Section 1005: Meaning of “recognised stock exchange”

            19. Section 1006: Meaning of “research and development”

            20. Section 1007: Meaning of “unit trust scheme”

        2. Chapter 2: Other Income Tax Acts provisions

          1. Overview

            1. Section 1008: Scotland

            2. Section 1009: Sources of income within the charge to income tax or corporation tax

            3. Section 1010: Application of Income Tax Acts to recognised investment exchanges

            4. Section 1011: References to married persons, or civil partners, living together

            5. Section 1012: Relationship between rules on highest part of total income

            6. Section 1013: Territorial sea of the United Kingdom

            7. Section 1014: Orders and regulations

            8. Section 1015: Territorial scope of charges under certain provisions to which section 1016 applies

            9. Section 1016: Table of provisions to which this section applies

    17. Part 17: Definitions for purposes of Act and final provisions

      1. Overview

        1. Section 1017: Abbreviated references to Acts

        2. Section 1018: “Act” to include Scottish and Northern Ireland legislation in some cases

        3. Section 1019: Meaning of “certificate of deposit”

        4. Section 1020: Claims and elections

        5. Section 1021: Application of definitions of “connected” persons and “control”

        6. Section 1022: Meaning of “debenture”

        7. Section 1023: Meaning of “double taxation arrangements”

        8. Section 1024: Meaning of “gilt-edged securities”

        9. Section 1025: Meaning of “modified net income”

        10. Section 1026: Meaning of “non-qualifying income” for the purposes of section 1025

        11. Section 1027: Minor and consequential amendments

        12. Section 1028: Power to make consequential provision

        13. Section 1029: Power to undo changes

        14. Section 1030: Transitional provisions and savings

        15. Section 1031: Repeals and revocations

        16. Section 1032: Index of defined expressions

        17. Section 1033: Extent

        18. Section 1034: Commencement

        19. Section 1035: Short title

    18. Schedule 1: Minor and consequential amendments

      1. Overview

      2. Part 1: Income and Corporation Taxes Act 1988

        1. Section 9

        2. Section 118

        3. Section 256

        4. Section 256A

        5. Section 256B

        6. Sections 257BA, 257BB, 257C and 265

        7. Section 266

        8. Section 278

        9. Section 312(2A)

        10. Section 349(3A) and (4)

        11. Section 353

        12. Section 368

        13. Sections 459 to 461B

        14. Section 467

        15. Section 469

        16. Section 477A

        17. Section 481(5A)

        18. Section 515

        19. Section 519A

        20. Section 556

        21. Section 571

        22. Section 573

        23. Section 575

        24. Section 576

        25. Section 576A

        26. Section 576B

        27. Section 576C

        28. Section 576D

        29. Section 576E to 576I

        30. Section 576J

        31. Section 576K

        32. Section 576L

        33. Sections 587B, 587BA and 587C

        34. Sections 710 to 727A

          Section 728

        35. Section 737E

        36. Section 742

        37. Section 746

        38. Section 780

        39. Section 781

        40. Section 789

        41. Section 798C

        42. Section 804

        43. Section 807

        44. Section 823

        45. Section 832

        46. Sections 835 and 836

        47. Section 840A

        48. Schedule 16

          1. Paragraph 8

          2. Paragraph 10(2)

      3. Part 2: Other enactments

        1. Taxes Management Act 1970

          1. Section 17

          2. Section 37A

          3. Section 55(1)(c)

          4. Section 87

          5. Section 98

          6. Section 99B

        2. Finance Act 1988

          1. Section 130

        3. Finance Act 1989

          1. Section 151

        4. Finance Act 1991

          1. Section 53

        5. Taxation of Chargeable Gains Act 1992

          1. Sections 4 and 6

          2. Section 11

          3. Section 105A

          4. Section 119

          5. Section 125A

          6. Sections 150A and 150B

          7. Sections 151BA to 151BC

          8. Section 151BA

          9. Section 151BB

          10. Section 151BC

          11. Section 231

          12. Sections 256 to 256B

          13. Section 257

          14. Sections 261B and 261C

          15. Sections 261D to 261E

          16. Section 263ZA

          17. Section 271

          18. Section 285A

          19. Schedule 5B

            1. Paragraph 13C

            2. Paragraph 19

          20. Schedule 5C

            1. Paragraph 3

        6. Finance Act 1994

          1. Schedule 20

            1. Paragraph 11

        7. Finance Act 1998

          1. Section 161

        8. Finance Act 2000

          1. Section 44

          2. Schedule 15

        9. Capital Allowances Act 2001

          1. Section 570B

          2. Sections 575 and 575A

        10. Finance Act 2002

          1. Schedule 16

          2. Paragraphs 4 to 7

          3. Paragraph 12

          4. Paragraphs 40 and 41

          5. Paragraph 47

          6. Paragraph 48

        11. Proceeds of Crime Act 2002

          1. Schedule 10

            1. Paragraph 4

        12. Income Tax (Earnings and Pensions) Act 2003

          1. Section 48

          2. Section 404A

          3. Section 476

          4. Schedule 5

            1. Paragraph 11(10)

        13. Finance Act 2004

          1. Section 102

          2. Section 189

        14. Income Tax (Trading and Other Income) Act 2005

          1. Section 13

          2. Section 51

          3. Section 108

          4. Section 272

          5. Section 457

          6. Section 465A

          7. Section 467

          8. Section 535

          9. Section 539

          10. Section 619A

          11. Section 620

          12. Section 624

          13. Section 628

          14. Section 646A

          15. Section 680A

          16. Section 682

          17. Schedule 2

            1. Paragraph 109

        15. Finance Act 2005

          1. Schedule 2

        16. Finance (No 2) Act 2005

          1. Section 7

      4. Part 3: Amendments having effect in relation to shares issued after 5 April 2007 Income and Corporation Taxes Act 1988

        1. Chapter 3 of Part 7

    19. Schedule 2: Transitionals and savings

      1. Overview

      2. Part 1: General provisions

      3. Part 2: Changes in the law

      4. Part 3: Rates at which income tax is charged

      5. Part 4: Personal reliefs

      6. Part 5: Losses (except losses on disposal of shares)

        1. Trade loss relief against general income

          Early trade losses relief

        2. Sideways relief: trade leasing allowances given to individuals

        3. Reliefs for limited partners not to exceed contribution to the firm

          Reliefs for members of s not to exceed contribution to the

          Members of s: carry-forward of losses

          Reliefs for non-active partners not to exceed contribution to the firm

          Non-active partners: carry-forward of losses

        4. Restrictions on reliefs for non-active partners: pre-10 February 2004 events

        5. Application of existing regulations under sections 114 and 802

        6. Loss relief against miscellaneous income: Case VI losses

      7. Part 6: Losses on disposal of shares

        1. Qualifying trading companies

        2. Disposals of new shares

        3. The trading requirement

        4. The control and independence requirement

        5. Relief after an exchange of shares for shares in another company

        6. Excluded activities: wholesale and retail distribution

        7. Excluded activities: leasing of ships

        8. Excluded activities: provision of services or facilities for another business

        9. Meaning of company being “in administration”

      8. Part 7: Enterprise investment scheme

        1. The gross assets requirement

      9. Part 8: Venture capital trusts

      10. Part 9: Other reliefs

        1. Interest: loans for investing in co-operatives

        2. Gift aid: restrictions on associated benefits

        3. Qualifying maintenance payments: maintenance assessments

      11. Part 10: Special rules about settlements and trustees

        1. Trustees’ expenses to be set against trustees’ trust rate income

        2. Discretionary payments: trustees’ tax pool

      12. Part 14: Tax avoidance

        1. Transfers of assets abroad: non-transferors receiving benefit- exclusion of income arising before 10 March 1981

        2. Individuals in partnership: recovery of excess relief

          Individuals claiming relief for film related trading losses

      13. Part 15: Deduction of income tax at source

        1. Deduction by deposit-takers: discretionary or accumulation settlements

        2. Deduction from certain UK public revenue dividends

    20. Schedule 3: Repeals and revocations

      1. Part 1: Repeals and revocations: general

      2. Part 2: Repeals having effect in relation to shares issued after 5 April 2007

    21. Schedule 4: Index of defined expressions

  3. Hansard References

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