SCHEDULES

SCHEDULE 1 U.K.Abolition of starting and savings rates and creation of starting rate for savings

Part 2 U.K.Other amendments

TMA 1970 U.K.

37 U.K.TMA 1970 is amended as follows.

38 U.K.In section 7(6) (notice of liability to income tax and capital gains tax), for “, the savings rate or the starting rate” substitute “ or the starting rate for savings ”.

39 U.K.In section 91(3)(c) (effect of interest on reliefs), for “, the savings rate or the starting rate” substitute “ or the starting rate for savings ”.

ICTA U.K.

40 U.K.ICTA is amended as follows.

41 U.K.In section 468(1A) (authorised unit trusts), for “savings rate” substitute “ basic rate ”.

42 U.K.In section 468A(1) (open-ended investment companies), for “savings rate” substitute “ basic rate ”.

43 U.K.In section 552(5)(f)(i) (information: duty of insurers), for “savings rate” substitute “ basic rate ”.

44 U.K.In section 699A(4)(b) (untaxed sums comprised in the income of the estate), for “savings rate” substitute “ basic rate ”.

45 U.K.In section 701(3A) (estates of deceased persons in administration), omit—

(a) “, the savings rate” (in both places),

(b) “at the savings rate or”, and

(c) sub-paragraph (ii) of paragraph (b) and the “and” before it.

46 U.K.Omit section 789(2) (double taxation arrangements made under old law: surtax).

FA 1989 U.K.

47 U.K.In section 88(1) of FA 1989 (insurance companies: policy holders' share of profits), for “savings rate” substitute “ basic rate ”.

TCGA 1992 U.K.

48 U.K.In section 150A(3)(b) of TCGA 1992 (enterprise investment schemes), for “savings rate” substitute “ basic rate ”.

FA 1996 U.K.

49 U.K.Omit paragraph 21 of Schedule 6 to FA 1996 (which amends section 789(2) of ICTA).

ITTOIA 2005 U.K.

50 U.K.ITTOIA 2005 is amended as follows.

51 U.K.In section 465A(1)(b) (gains from contracts for life insurance etc: amounts for which individuals liable to be treated as highest part of total income), for “savings rate” substitute “ basic rate ”.

52 U.K.In section 466(2) (gains from contracts for life insurance etc: personal representatives), for “savings rate” substitute “ basic rate ”.

53 U.K.In section 467(7) (gains from contracts for life insurance etc: UK resident trustees), for “savings rate” substitute “ basic rate ”.

54 (1) Section 530 (gains from contracts for life insurance etc: income tax treated as paid) is amended as follows. U.K.

(2) In subsection (1), for “savings rate” substitute “ basic rate ”.

(3) Omit subsection (6).

55 U.K.In section 535(3) (gains from contracts for life insurance etc: top slicing relief)—

(a) for “SRL” in both places substitute “ BRL ”, and

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

56 U.K.In section 536(1) (gains from contracts for life insurance etc: top slicing relieved liability-one chargeable event), for “savings rate” substitute “ basic rate ”.

57 U.K.In section 537 (gains from contracts for life insurance etc: top slicing relieved liability-two or more chargeable events), for “savings rate” substitute “ basic rate ”.

58 U.K.In section 539(5) (gains from contracts for life insurance etc: relief for deficiencies)—

(a) omit Step 2,

(b) in Step 3, for “2” substitute “ 1 ” and omit “other”, and

(c) in Step 5, omit the sentence relating to Step 2.

59 U.K.In section 669(3)(a)(i) (reduction in residuary income: inheritance tax on accrued income), for “, at the savings rate” substitute “ of an amount not exceeding the starting rate limit for savings, at the starting rate for savings ”.

60 U.K.In section 679(3) (income from which basic amounts are treated as paid), omit paragraph (b) (apart from the “and” at the end).

61 U.K.In section 680(4) (income treated as bearing income tax), for “savings rate” substitute “ basic rate ”.

62 (1) Section 680A (income treated as savings income or dividend income) is amended as follows. U.K.

(2) In subsection (1)—

(a) for “Subsections (2) and (3) apply” substitute “ Subsection (3) applies ”, and

(b) omit “the savings rate or”.

(3) Omit subsection (2).

(4) In subsection (3), for the words from the beginning to “it” substitute “ The income ”.

(5) In subsection (4)—

(a) for “Subsections (5) and (6) apply” substitute “ Subsection (6) applies ”, and

(b) omit “the savings rate or”.

(6) Omit subsection (5).

(7) In subsection (6), for the words from the beginning to “it” substitute “ The income ”.

(8) Accordingly, in the heading omit “savings income or”.

63 (1) Schedule 4 (index of defined expressions) is amended as follows. U.K.

(2) For the entry relating to “starting rate” substitute—

“starting rate for savings	section 7 of ITA 2007 (as applied by section 989 of that Act)
starting rate limit for savings	section 12 of ITA 2007 (as applied by section 989 of that Act)”.

(3) Omit the entry relating to “savings rate”.

F(No.2)A 2005 U.K.

64 U.K.In section 7(5) of F(No.2)A 2005 (charge to income tax on social security pension lump sum)—

(a) omit paragraph (b), and

(b) in paragraph (c), for “exceeds the starting rate limit” substitute “ is greater than nil ”.