Income Tax Act 2007
Section 151: Losses on disposal of shares: interpretation of Chapter
3427.This amendment provides a stand alone definition of “investment company” in place of the definition by cross–reference to and modification of the definition in section 130 of ICTA. References to savings banks and banks for savings are omitted. The amended definition is the same as that in section 90(1) of this Act. See Change 21in Annex 1.
Sections 346, 348(7), 356, 361, 363, 365, 368, 369 and 373: Community investment tax relief
3428.These provisions amend sections 346, 348(7), 356, 361, 363, 365, 368, 369 and 373 of ITA to conform those provisions to the corresponding provisions of this Act (see the commentary on sections 227, 229, 238, 244, 246, 248, 251, 252 and 260).
Sections 340 and 341: Application and criteria for accreditation and terms and conditions of accreditation
3429.Section 219(1)(a) of this Act provides that accreditation under the powers in Chapter 2 of Part 7 of ITA has effect for the purposes of Part 7 of this Act. The new subsections introduced by these amendments complete the picture by clarifying in ITA that the powers in Chapter 2 of Part 7 of that Act can be exercised for corporation tax purposes as well as income tax purposes. They make explicit something that is already implicit.
Section 355: Securities or shares: no claim after disposal or excessive receipts of value
3430.This minor textual amendment corrects a typographical error in the description of section 364(1) of that Act.
Section 364: Value received by investor during 6 year period: securities or shares
3431.This minor textual amendment removes words from section 364(1)(d) of ITA which are unnecessary and have, accordingly, not been included in the corresponding section 247(1)(d) of this Act.
Chapter 6 of Part 13: Avoidance involving leases of plant and machinery
3432.These amendments amend sections 809ZA and 809ZC and replace section 809ZB with new sections 809ZE and 809ZF. The effect of these amendments is to conform the structure of Chapter 6 of Part 13 of ITA with that of Chapter 2 of Part 20 of this Act. That Chapter of this Act is based on sections 785B to 785E of ICTA which correspond for corporation tax purposes to sections 809ZA to 809ZD of ITA.
Section 991: Meaning of “bank”
3433.This provision amends the definition of “bank” to bring the income tax and corporation tax rewrite of the source legislation into line. See Change 65 in Annex 1.
Section 999: Meaning of “local authority”
3434.This provision amends the definition of “local authority”, in relation to Northern Ireland, to bring the income tax and corporation tax rewrite of the source legislation into line. See Change 60 in Annex 1.
Section 1000: Meaning of “local authority association”
3435.This provision amends the definition of “local authority association” to bring the income tax and corporation tax rewrite of the source legislation into line.
Schedule 2 Part 6: Transitionals and savings: losses on disposal of shares
3436.New paragraph 57A inserted in Schedule 2 to ITA clarifies the application of the transitional provisions in Part 6 of that Schedule (losses on disposal of shares) in cases where bonus shares have been issued. It ensures that the provisions in the form that they apply to the original shares also apply in the same form to the corresponding bonus shares whenever issued. Part 5 of Schedule 2 to this Act (losses on disposals of shares) contains a paragraph in the same terms. See Change 20 in Annex 1.
