Chapter 2: Other Income Tax Acts provisions
Overview
3080.This Chapter contains provisions (other than definitions) which apply for the purposes of the Income Tax Acts.
Section 1008: Scotland
3081.This section is based on sections 363(3) and 832(1) of ICTA and section 879 of ITTOIA.
Section 1009: Sources of income within the charge to income tax or corporation tax
3082.This section is based on section 832(1) of ICTA.
Section 1010: Application of Income Tax Acts to recognised investment exchanges
3083.This section is based on section 841(3) of ICTA.
3084.Section 841(3) of ICTA, consequentially amended, continues to provide the definition for corporation tax purposes.
Section 1011: References to married persons, or civil partners, living together
3085.This section is based on section 282 of ICTA.
3086.It explains that married couples and civil partners are treated as living together unless they are separated under a court order, under a deed of separation or in fact separated in circumstances where the separation is likely to be permanent.
3087.This rule applies in particular in relation to married couple’s allowance (Chapter 3 of Part 3) and to jointly held property (Chapter 3 of Part 14).
Section 1012: Relationship between rules on highest part of total income
3088.This section brings together a number of provisions about the relationship between the rules about which particular income is to be treated as the highest part of a person’s total income. It is based on sections 1A(6) and 833(3) of ICTA.
3089.These rules affect section 16 and a number of provisions inserted by this Act including section 404A of ITEPA and section 465A of ITTOIA.
3090.The section remedies an omission in section 833(3) of ICTA by providing a rule as to which of section 404A of ITEPA and section 465A of ITTOIA takes the very highest slice in a case where both are present. In practice, if both arise it will be to the taxpayer’s advantage if the chargeable event gains are treated as the very top slice. Accordingly, section 404A of ITEPA defers to section 465A of ITTOIA. See Change 153 in Annex 1.
3091.Subsection (5) makes it clear that the rules in this section override any other provision that purports to treat a given type of income as the top slice. The effect is that the income concerned will simply form the top slice of income within its category of savings, dividend or other income.
Section 1013: Territorial sea of the United Kingdom
3092.This section is based on section 830(1) of ICTA.
Section 1014: Orders and regulations
3093.This section is based on section 828 of ICTA.
Section 1015: Territorial scope of charges under certain provisions to which section 1016 applies
3094.This section is based on section 827A of ICTA.
Section 1016: Table of provisions to which this section applies
3095.This section is based on section 836B of ICTA.
3096.The table in section 836B of ICTA includes two provisions (section 804(5B)(a) of ICTA and paragraph 11(3) of Schedule 20 to FA 1994) which are in substance about the recovery of double taxation credit relief that has been over-allowed, although both operate by converting the tax to be recovered to an amount charged to income tax at the basic rate.
3097.Amounts charged under those two provisions are not regarded as income for any other purpose and none of the other provisions which invoke the table (for example, to utilise losses under section 152 of this Act) could have any application in relation to these amounts. As it is misleading for them to be included in the table, they have been omitted.
3098.Amendments are made to both provisions by Schedule 1 so that they operate as charges to amounts of income tax.
