Income Tax Act 2007

Supplementary

825 Meaning of “disregarded savings and investment income”

(1) For the purposes of this Chapter income is “disregarded savings and investment income” if—

(a) it is chargeable under Chapter 3 or 5 of Part 4 of ITTOIA 2005 (dividends etc from UK resident companies and stock dividends from UK resident companies), or

(b) it is within subsection (2) and is not relevant foreign income.

(2) Income is within this subsection if it is chargeable under—

(a) Chapter 2 of Part 4 of ITTOIA 2005 (interest),

(b) Chapter 7 of that Part (purchased life annuity payments),

(c) Chapter 8 of that Part (profits from deeply discounted securities),

(d) Chapter 10 of that Part (distributions from unauthorised unit trusts), or

(e) Chapter 11 of that Part (transactions in deposits).

826 Meaning of “disregarded annual payments”

For the purposes of this Chapter income is “disregarded annual payments” if it is not relevant foreign income and is chargeable under—

(a) section 579 of ITTOIA 2005, so far as it relates to annual payments (royalties etc from intellectual property),

(b) Chapter 4 of Part 5 of that Act, so far as it relates to annual payments (certain telecommunication rights: non-trading income), or

(c) Chapter 7 of Part 5 of that Act (annual payments not otherwise charged).

827 Meaning of “investment manager” and “investment transaction”

(1) In this Chapter “investment manager” means a person who provides investment management services.

(2) In this Chapter “investment transaction” means—

(a) transactions in shares, stock, futures contracts, options contracts or securities of any description not mentioned in this paragraph, but excluding futures contracts or options contracts relating to land,

(b) transactions consisting in the buying or selling of any foreign currency or in the placing of money at interest, and

(c) such other transactions as the Treasury may by regulations designate for the purposes of this section.

(3) For the purposes of subsection (2) a contract is not prevented from being a futures contract or an options contract by the fact that a party is or may be entitled to receive or liable to make, or entitled to receive and liable to make, only a payment of a sum (as opposed to a transfer of assets other than money) in full settlement of all obligations.

828 Transactions through brokers and investment managers

(1) For the purposes of this Chapter a person is regarded as carrying out a transaction on behalf of another if the person—

(a) undertakes the transaction, whether on behalf of or to the account of the other, or

(b) gives instructions for it to be so carried out by another.

(2) In the case of a person who acts as a broker or investment manager as part only of a business, this Chapter has effect as if that part were a separate business.