Income Tax (Trading and Other Income) Act 2005

569 (1) Amend section 529 (giving effect to allowances and charges) as follows. U.K.

(2) In subsection (1) for “a Schedule A business” substitute “ a UK property business, or a Schedule A business, ”.

(3) After that subsection insert—

“(1A) If the person entitled or liable to an allowance or charge for a chargeable period is within the charge to income tax in respect of the allowance or charge and he was not carrying on a UK property business at any time in that period, the allowance or charge is to be given effect by treating him as if he had been carrying on such a business in that period and as if—

(a) the allowance were an expense of that business, and

(b) the charge were a receipt of that business.”

(4) In subsection (2)—

(a) for the words from the beginning to “chargeable period” substitute “ If the person entitled or liable to an allowance or charge for a chargeable period is a company within the charge to corporation tax in respect of the allowance or charge and it ”,

(b) for “him” substitute “ the company ”, and

(c) for “he” substitute “ it ”.