Part 9: Sale and lease‑back etc
Sections 779(13)(f), 781(4)(e), 781(5)(a) and 785 of ICTA: References to “woodlands”
1425.Following the repeal of Schedule B in 1988, the references to woodlands in sections 779(13)(f), 781(4)(e), 781(5)(a) and 785 of ICTA are obsolete. They are repealed without replacement.
Section 781(5) of ICTA: Assets leased to traders and others: cessation of trade
1426.Following the introduction of Income Tax Self Assessment, section 781(5) of ICTA is spent. It catered for cases in which, under the superseded rules about a trade ceasing, there could be periods whose profits were not brought into account in assessing the amounts on which income tax was charged. It is repealed without replacement.
Broadcasting Act 1996, Greater London Authority Act 1999 and Transport Act 2000
1427.Schedule 7 to the Broadcasting Act 1996 contains taxation provisions relating to transfer schemes under section 131 of that Act. Paragraphs 22 to 24 of that Schedule relate to the sale and lease-back provisions of ICTA which are rewritten for corporation tax purposes in Part 19 of CTA 2010 and for income tax purposes in Part 12A of ITA by Schedule 4 to this Act. Although it appears that paragraphs 22 to 24 primarily relate to the sale and lease-back provisions as applying for corporation tax purposes, they are not expressly limited to corporation tax.
1428.As a result, and because Schedule 6 to the Broadcasting Act 1996 authorises the inclusion in a transfer scheme of a range of provision so wide as to make it difficult to conclude that paragraphs 22 to 24 could never be relevant for income tax purposes, this Part of this Schedule inserts into paragraphs 22 to 24 references to the sale and lease-back provisions as rewritten for income tax purposes in Part 12A of ITA by Schedule 4 to this Act. This complements the insertion of references to Part 19 of CTA 2010 by Schedule 1 to that Act and, although it may represent an unnecessarily cautious approach, has the merit of ensuring that taxpayers within the charge to income tax are not unintentionally disadvantaged.
1429.The position may be similar for the amendments made by this Part of this Schedule in the Greater London Authority Act 1999 and the Transport 2000, but those amendments give rise to no initial surprise since there is nothing in the statutory text to suggest that the provisions being amended may be limited to corporation tax.
