This is a draft item of legislation. This draft has since been made as a UK Statutory Instrument: The Scottish Rates of Income Tax (Consequential Amendments) Order 2024 No. 1289
(This note is not part of the Order)
This Order amends section 539 of the Income Tax (Trading and Other Income) Act 2005 in consequence of the introduction by the Scottish Parliament of the Scottish advanced rate of income tax from 6th April 2024. Section 539 provides for a relief for deficiencies which have arisen on certain policies or contracts coming to an end where the taxpayer had incurred an earlier gain on the policy or contract. The amendments in this Order simplify the construction of the legislation with the effect that deficiency relief is calculated by reference to income liable to tax at the relevant rate, including the Scottish advanced rate.
Article 1(2) provides that the amendments made by this Order have effect for the tax year 2024-25 and subsequent tax years. Authority for the retrospective effect of these amendments is provided for in section 80G(4) of the Scotland Act 1998.
A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.
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