Income Tax Act 2007

536 (1) Amend section 535 (top slicing relief) as follows. U.K.

(2) After subsection (2) insert—

“(2A) If the relief is given by a reduction in income tax, it is given effect at Step 6 of the calculation in section 23 of ITA 2007.”

(3) In subsection (3)—

(a) for “LRL”, in both places where it occurs, substitute “ SRL ”, and

(b) for “lower rate” substitute “ savings rate ”.

(4) After subsection (6) insert—

“(7) For the purposes of the calculations mentioned in subsection (1) any relief under Chapter 2 or 3 of Part 8 of ITA 2007 (which relate to gift aid and other gifts to charities) is ignored.”