Income Tax Act 2007
Part 1Overview
1Overview of Income Tax Acts
2Overview of Act
Part 2Basic provisions
Chapter 1Charges to income tax
3Overview of charges to income tax
4Income tax an annual tax
5Income tax and companies
Chapter 2Rates at which income tax is charged
The rates
6The ... basic rate , higher rate and additional rate
6AThe Scottish basic, higher and additional rates
6BThe Welsh basic, higher and additional rates
6C The default basic, higher and additional rates
7The starting rate for savings and savings nil rate
7A The savings basic, higher and additional rates
8The dividend nil rate, dividend ordinary rate, dividend upper rate and dividend additional rate
9The trust rate and dividend trust rate
Income charged at particular rates
10Income charged at the ... basic , higher and additional rates: individuals
11Income charged at the default basic rate: non-individuals
11AIncome charged at Scottish rates
11BIncome charged at the Welsh basic, higher and additional rates
11C Income charged at the default basic, higher and additional rates: non-UK resident individuals
11DIncome charged at the savings basic, higher and additional rates
12Income charged at the starting rate for savings
12ASavings income charged at the savings nil rate
12BIndividual's entitlement to a savings allowance
13Income charged at the dividend ordinary , dividend upper and dividend additional rates: individuals
13AIncome charged at the dividend nil rate
14Income charged at the dividend ordinary rate: other persons
15Income charged at the trust rate and the dividend trust rate
16Savings and dividend income to be treated as highest part of total income
17Repayment: tax paid at greater rate instead of starting rate for savings or savings nil rate
18Meaning of “savings income”
19Meaning of “dividend income”
Starting rate limit and basic rate limit
20The starting rate limit and the basic rate limit
21Indexation of the basic rate limit and starting rate limit for savings
Chapter 3Calculation of income tax liability
22Overview of Chapter
23The calculation of income tax liability
24Reliefs deductible at Step 2
24ALimit on Step 2 deductions
25Reliefs and allowances deductible at Steps 2 and 3: supplementary
26Tax reductions
27Order of deducting tax reductions: individuals
28Order of deducting tax reductions: other persons
29Tax reductions: supplementary
30Additional tax
31Total income: supplementary
32Liability not dealt with in the calculation
Part 3Personal reliefs
Chapter 1Introduction
33Overview of Part
Chapter 2Personal allowance and blind person's allowance
Introduction
34Allowances under Chapter
Personal allowances
35Personal allowance
36Personal allowance for those born after 5 April 1938 but before 6 April 1948
37Personal allowance for those born before 6 April 1938
Blind person's allowance
38Blind person's allowance
39Transfer of part of blind person's allowance to a spouse or civil partner
40Election for transfer of allowance under section 39
Supplementary
41Allowances in year of death
Chapter 3Tax reductions for married couples and civil partners: persons born before 6 April 1935
Introduction
42Tax reductions under Chapter
43Meaning of “the minimum amount”
43AMeaning of “relevant conversion”
44Election for new rules to apply
Married couple's allowance
45Marriages before 5 December 2005
46Marriages and civil partnerships on or after 5 December 2005
Elections to transfer relief
47Election by individual to transfer relief under section 45 or 46
48Joint election to transfer relief under section 45 or 46
49Election for partial transfer back of relief
50Procedure for making and withdrawing elections under sections 47 to 49
Transfer of unused relief
51Transfer of unused relief
52Transfer back of unused relief
53Transfer of unused relief: general
Supplementary
54Tax reductions in the year of marriage or entry into civil partnership
55Sections 45 to 53: supplementary
CHAPTER 3ATransferable tax allowance for married couples and civil partners
Introduction
55ATax reduction under Chapter
Tax reduction
55BTax reduction: entitlement
Election to reduce personal allowance
55CElection to reduce personal allowance
55DProcedure for elections under section 55C
Supplementary
55ELimitation on number of tax reductions and elections
Chapter 4General
56Residence etc of claimants
57Indexation of allowances
57APersonal allowance linked to national minimum wage
58Meaning of “adjusted net income”
Part 4Loss relief
Chapter 1Introduction
59Overview of Part
Chapter 2Trade losses
Introduction
60Overview of Chapter
61Non-partners: losses of a tax year
62Partners: losses of a tax year etc
63Prohibition against double counting
Trade loss relief against general income
64Deduction of losses from general income
65How relief works
Restriction on relief for uncommercial trades
66Restriction on relief unless trade is commercial
Restriction on relief for “hobby” farming or market gardening
67Restriction on relief in case of farming or market gardening
68Reasonable expectation of profit
69Whether trade is the same trade
70Determining losses in previous tax years
Use of trading loss as CGT loss
71Treating trade losses as CGT losses
Early trade losses relief
72Relief for individuals for losses in first 4 years of trade
73How relief works
74Restrictions on relief unless trade is commercial etc
General restrictions on sideways relief and capital gains relief
74ZANo relief for tax-generated losses
74AReliefs in any tax year not to exceed cap for tax year
74BNo relief for tax-generated losses
74CMeaning of “non-active capacity” for purposes of section 74A etc
74DMeaning of “qualifying film expenditure” for purposes of sections 74ZA and 74A
Restriction on sideways relief and capital gains relief where cash basis applies
74ENo relief where cash basis used to calculate losses
Restrictions on sideways relief for certain capital allowances
75Trade leasing allowances given to individuals
76First-year allowances and annual investment allowances: introduction
77First-year allowances: partnerships with companies
78First-year allowances and annual investment allowances: arrangements to reduce tax liabilities
79Capital allowances restrictions: supplementary
Restriction on sideways relief for specific trades
80Ring fence income
81Dealings in commodity futures
82Exploitation of films
Carry-forward trade loss relief
83Carry forward against subsequent trade profits
84How relief works
85Use of trade-related interest and dividends if trade profits insufficient
86Trade transferred to a company
87Ring fence trades
88Carry forward of certain interest as loss
Terminal trade loss relief
89Carry back of losses on a permanent cessation of a trade
90Losses that are “terminal losses”
91How relief works
92Use of trade-related interest and dividends if trade profits insufficient
93Mineral extraction trade and carry back of balancing allowances
94Carry back of certain interest as loss
Wholly foreign trades
95Foreign trades etc: reliefs only against foreign income
Post-cessation trade relief
96Post-cessation trade relief
97Meaning of “qualifying payment”
98Meaning of “qualifying event” etc
98ADenial of relief for tax-generated payments or events
99Reduction of relief for unpaid trade expenses
100Prohibition against double counting
101Treating excess post-cessation trade relief as CGT loss
Chapter 3Restrictions on trade loss relief for certain partners
Introduction
102Overview of Chapter
103Meaning of “sideways relief”, “capital gains relief” and “firm”
103AMeaning of “limited partner”
103B Meaning of “non-active partner” etc
Limit on amount of sideways relief and capital gains relief
103CLimit on reliefs in any tax year not to exceed cap for tax year
103DMeaning of “qualifying film expenditure”
Limited partners
104Restriction on reliefs for limited partners
105Meaning of “contribution to the firm”
106Meaning of “limited partner”
Members of LLPs
107Restriction on reliefs for members of LLPs
108Meaning of “contribution to the LLP”
109Unrelieved losses brought forward
Non-active members of LLPs or other partnerships (apart from limited partnerships)
110Restriction on reliefs for non-active partners in early tax years
111Meaning of “contribution to the firm”
112Meaning of “early tax year”
113Unrelieved losses brought forward
Exclusion of amounts in calculating contribution to the firm or LLP
113AExclusion of amounts contributed to access relief
...
114 Power to exclude other amounts
Restrictions for film trades carried on in partnership
115Restrictions on reliefs for firms exploiting films
116Exclusion from restrictions under section 115: certain film expenditure
Partnerships with mixed membership etc
116AExcess loss allocation to partners who are individuals
Chapter 4Losses from property businesses
Introduction
117Overview of Chapter
Carry-forward property loss relief
118Carry forward against subsequent property business profits
119How relief works
Property loss relief against general income
120Deduction of property losses from general income
121How relief works
122Meaning of “the applicable amount of the loss”
123Meaning of “the loss has a capital allowances connection” and “the business has a relevant agricultural connection”
124Supplementary
Post-cessation property relief
125Post-cessation property relief
126Treating excess post-cessation property relief as CGT loss
Furnished holiday accommodation
127UK furnished holiday lettings business treated as trade
127ZA EEA furnished holiday lettings business treated as trade
Restrictions on relief
127ANo relief for tax-generated losses attributable to annual investment allowance
127BNo relief for tax-generated agricultural expenses
127BARestriction of relief: cash basis
127CExcess loss allocation to partners who are individuals
Chapter 5Losses in an employment or office
128Employment loss relief against general income
129How relief works
130Treating loss in employment or office as CGT loss
Chapter 6Losses on disposal of shares
Share loss relief against general income
131Share loss relief
132Entitlement to claim
133How relief works
Shares to which EIS relief is not attributable
134Qualifying trading companies
135Subscriptions for shares
136Disposals of new shares
Qualifying trading companies: the requirements
137The trading requirement
138Ceasing to meet trading requirement because of administration or receivership
139The control and independence requirement
140The qualifying subsidiaries requirement
141The property managing subsidiaries requirement
142The gross assets requirement
143The unquoted status requirement
144Power to amend requirements by Treasury order
Qualifying trading companies: supplementary
145Relief after an exchange of shares for shares in another company
146Substitution of new shares for old shares
Limits on share loss relief and mixed holdings
147Limits on share loss relief
148Disposal of shares forming part of mixed holding
149Section 148: supplementary
Miscellaneous and supplementary
150Deemed time of issue for certain shares
151Interpretation of Chapter
Chapter 7Losses from miscellaneous transactions
Loss relief against miscellaneous income
152Losses from miscellaneous transactions
153How relief works
Deposit rights
154Transactions in deposit rights
Supplementary
154AAnti-avoidance
155Time limit for claiming relief
Part 5Enterprise investment scheme
Chapter 1Introduction
EIS relief
156Meaning of “EIS relief” and commencement
157Eligibility for EIS relief
157ARisk-to-capital condition
158Form and amount of EIS relief
Miscellaneous
159Periods A, B and C
160Overview of other Chapters of Part
161Other tax reliefs relating to EIS
Chapter 2The investor
Introduction
162Overview of Chapter
The requirements
163The no connection with the issuing company requirement
164The no linked loans requirement
164AThe existing shareholdings requirement
165The no tax avoidance requirement
Meaning of connection with issuing company
166Connection with issuing company
167Employees, directors and partners
168Directors excluded from connection
169Directors qualifying for relief despite connection
170Persons interested in capital etc of company
171Persons subscribing for shares under certain arrangements
Chapter 3General requirements
Introduction
172Overview of Chapter
The requirements
173The shares requirement
173AThe maximum amount raised annually through risk finance investments requirement
173AAMaximum risk finance investments at the issue date requirement
173ABMaximum risk finance investments during period B requirement
173BThe spending of money raised by SEIS investment requirement
174The purpose of the issue requirement
175The use of the money raised requirement
175AThe permitted maximum age requirement
176The minimum period requirement
177The no pre-arranged exits requirement
178The no tax avoidance requirement
178AThe no disqualifying arrangements requirement
Meaning of “qualifying business activity”
179Meaning of “qualifying business activity”
Chapter 4The issuing company
Introduction
180Overview of Chapter
The requirements
180AThe UK permanent establishment requirement
180BThe financial health requirement
181The trading requirement
182Ceasing to meet trading requirement because of administration or receivership
183The issuing company to carry on the qualifying business activity requirement
184The unquoted status requirement
185The control and independence requirement
186The gross assets requirement
186AThe number of employees requirement
187The qualifying subsidiaries requirement
188The property managing subsidiaries requirement
Definitions
189Meaning of “qualifying trade”
190Meaning of “qualifying 90% subsidiary”
191Meaning of “qualifying subsidiary”
191AMeaning of “permanent establishment”
Excluded activities
192Meaning of “excluded activities”
193Excluded activities: wholesale and retail distribution
194Excluded activities: leasing of ships
195Excluded activities: receipt of royalties and licence fees
196Excluded activities: property development
196AExcluded activities: shipbuilding
196BExcluded activities: producing coal
196CExcluded activities: producing steel
197Excluded activities: hotels and comparable establishments
198Excluded activities: nursing homes and residential care homes
198AExcluded activities: ... export of electricity
198BExcluded activities: subsidised generation of heat and subsidised production of gas or fuel
199Excluded activities: provision of services or facilities for another business
Supplementary
200Power to amend by Treasury order
Chapter 5Attribution of and claims for EIS relief
Attribution
201Attribution of EIS relief to shares
Claims: general
202Time for making claims for EIS relief
203Entitlement to claim
Claims: supporting documents
204Compliance certificates
205Compliance statements
206Appeal against refusal to authorise compliance certificate
207Penalties for fraudulent certificate or statement etc
Chapter 6Withdrawal or reduction of EIS relief
Introduction
208Overview of Chapter
Disposals
209Disposal of shares
210Cases where maximum EIS relief not obtained
211Call options
212Put options
Value received by investor
213Value received by the investor
214Value received: receipts of insignificant value
215Meaning of “receipts of insignificant value”
216When value is received
217The amount of value received
218Value received where there is more than one issue of shares
219Value received where part of share issue treated as made in previous tax year
220Cases where maximum EIS relief not obtained
221Receipts of value by and from connected persons etc
222Receipt of replacement value
223Section 222: supplementary
Repayments etc of share capital to other persons
224Repayments etc of share capital to other persons
225Insignificant repayments ignored for purposes of section 224
226Amount of repayments etc where there is more than one issue of shares
227Single issue affecting more than one individual
228Single issue treated as made partly in previous tax year
229Maximum relief not obtained for share issue
230Repayment of authorised minimum within 12 months
231Restriction on withdrawal of relief under section 224
Miscellaneous
232Acquisition of a trade or trading assets
233Acquisition of share capital
234Relief subsequently found not to have been due
Chapter 7Withdrawal or reduction of EIS relief: procedure
Assessments and appeals
235Assessments for the withdrawal or reduction of EIS relief
236Appeals against section 234(3)(b) notices
237Time limits for assessments
238Cases where assessment not to be made
Interest
239Date from which interest is chargeable
Information
240Information to be provided by the investor
241Information to be provided by the issuing company etc
242Power to require information where section 240 or 241 applies or could have applied
243Power to require information in other cases
244Obligations of secrecy
Chapter 8Supplementary and general
Disposals of shares
245Transfers between spouses or civil partners
246Identification of shares on a disposal
Acquisition of issuing company
247Continuity of EIS relief where issuing company is acquired by new company
248Carry over of obligations etc where EIS relief attributed to new shares
249Substitution of new shares for old shares
Nominees etc
250Nominees and bare trustees
251Approved knowledge-intensive fund as nominee
Powers to amend
251APowers to amend Chapters 2 to 4 by Treasury regulations
Interpretation
252Meaning of a company being “in administration” or “in receivership”
252AMeaning of “knowledge-intensive company”
252BKnowledge-intensive company reaching turnover of £200,000
253Meaning of “associate”
254Meaning of “disposal of shares”
255Meaning of “issue of shares”
256Meaning of “the termination date”
256AMeaning of “the EIS original rate”
257Minor definitions etc
PART 5ASeed enterprise investment scheme
CHAPTER 1Introduction
SEIS relief
257AMeaning of “SEIS relief” and commencement
257AAEligibility for SEIS relief
257AAARisk-to-capital condition
257ABForm and amount of SEIS relief
Miscellaneous
257ACMeaning of “period A” and “period B”
257ADOverview of other Chapters of Part
257AE CGT reliefs relating to SEIS
CHAPTER 2The investor
Introduction
257BOverview of Chapter
The requirements
257BAThe no employee investors requirement
257BBThe no substantial interest in the issuing company requirement
257BCThe no related investment arrangements requirement
257BDThe no linked loan requirement
257BEThe no tax avoidance requirement
Meaning of substantial interest in a company
257BFPersons with a substantial interest in a company
CHAPTER 3General requirements
Introduction
257COverview of Chapter
The requirements
257CAThe shares requirement
257CBThe purpose of the issue requirement
257CCThe spending of the money raised requirement
257CDThe no pre-arranged exits requirement
257CEThe no tax avoidance requirement
257CFThe no disqualifying arrangements requirement
CHAPTER 4The issuing company
Introduction
257DOverview of Chapter
The requirements
257DAThe trading requirement
257DBCeasing to meet trading requirement: administration etc
257DCThe issuing company to carry on the qualifying business activity
257DDThe UK permanent establishment requirement
257DEThe financial health requirement
257DFThe unquoted status requirement
257DGThe control and independence requirement
257DHThe no partnerships requirement
257DIThe gross assets requirement
257DJThe number of employees requirement
257DKNo previous other risk capital scheme investments
257DLThe amount raised through the SEIS
257DMThe qualifying subsidiaries requirement
257DNThe property managing subsidiaries requirement
CHAPTER 5Attribution and claims for SEIS relief
Attribution
257EAttribution of SEIS relief to shares
Claims: general
257EATime for making claims for SEIS relief
257EBEntitlement to claim
Claims: supporting documents
257ECCompliance certificates
257EDCompliance statements
257EEAppeal against refusal to authorise compliance certificate
257EFPenalties for fraudulent certificate or statement etc
257EGPower to amend sections 257EC and 257ED
CHAPTER 6Withdrawal or reduction of SEIS relief
Introduction
257FOverview of Chapter
257FADisposal of shares
257FBCases where maximum SEIS relief not obtained
257FCCall options
257FDPut options
Value received by investor
257FEValue received by the investor
257FFValue received: receipts of insignificant value
257FGMeaning of “a receipt of insignificant value”
257FHWhen value is received
257FIThe amount of value received
257FJValue received where there is more than one issue
257FKValue received where part of issue treated as made in previous tax year
257FLCases where maximum SEIS relief not obtained
257FMReceipts of value by and from connected persons etc
257FNReceipt of replacement value
257FOSection 257FN: supplementary
Miscellaneous
257FPAcquisition of trade or trading assets
257FQAcquisition of share capital
257FRRelief subsequently found not to have been due
CHAPTER 7Withdrawal or reduction of SEIS relief: procedure
Assessments and appeals
257GAssessments for the withdrawal or reduction of SEIS relief
257GAAppeals against section 257FR(3)(b) notices
257GBTime limits for assessments
257GCCases where assessments not to be made
Interest
257GDDate from which interest is chargeable
Information
257GEInformation to be provided by the investor
257GFInformation to be provided by the issuing company etc
257GGPower to require information where section 257GE or 257GF applies or could have applied
257GHPower to require information in other cases
257GIObligations of secrecy
CHAPTER 8Supplementary and general
Disposals of shares
257HTransfers between spouses or civil partners
257HAIdentification of shares on a disposal
Acquisition of issuing company
257HBContinuity of SEIS relief where issuing company is acquired by new company
257HCCarry over of obligations etc where SEIS relief attributed to new shares
257HDSubstitution of new shares for old shares
Nominees etc
257HENominees and bare trustees
Interpretation
257HFMeaning of “new qualifying trade”
257HGMeaning of “qualifying business activity”
257HHMeaning of “disposal of shares”
257HIMeaning of “issue of shares”
257HJMinor definitions
PART 5BTax relief for social investments
CHAPTER 1Introduction
257JMeaning of “SI relief” and “social enterprise”
257JAForm and amount of relief
257JBMeaning of “community benefit society”
257JCCharities that are trusts
257JDAccreditation as a social impact contractor
257JEMeaning of “social impact contract”
257JFAccreditations: supplementary provisions
257JGPeriod of accreditation as a social impact contractor
257JHFunctions of Ministers of the Crown under sections 257JD to 257JG
CHAPTER 2Eligibility for relief: basic rule and key definitions
Eligibility
257KEligibility for SI relief
Key definitions
257KAKey to reading the rest of the Part
257KBWhen investment is made, and “investment date”
257KC“Shorter applicable period” and “longer applicable period”
CHAPTER 3Eligibility: conditions relating to the investor and the investment
257LInvestment to be in new shares or new qualifying debt investments
257LACondition that the amount invested must have been paid over
257LBThe no pre-arranged exits requirements
257LCThe no risk avoidance requirement
257LDThe no linked loans requirement
257LDAThe existing investments requirement
257LEThe no tax avoidance requirement
257LEAThe no disqualifying arrangements requirement
257LFRestrictions on being an employee, partner or paid director
257LGThe requirement not to be interested in capital etc of social enterprise
257LHRequirement for no collusion with a non-qualifying investor
CHAPTER 4Eligibility: conditions relating to the social enterprise
Conditions relating to the social enterprise: general
257MThe continuing to be a social enterprise requirement
257MAThe amount raised from investments potentially eligible for relief
257MBPower to amend limits on amounts raised
257MCThe gross assets requirement
257MDThe unquoted status requirement
257METhe control and independence requirements
257MFThe qualifying subsidiaries requirement
257MGThe property-managing subsidiaries requirement
257MHThe number of employees requirement
257MIThe no partnership requirement
257MIAThe financial health requirement
257MJThe trading requirement
257MKCeasing to meet trading requirement: administration or receivership
257MLThe issue must be to raise money for chosen trade or preparing for it
257MMRequirement to use money raised and to trade for minimum period
257MNThe social enterprise must carry on the chosen trade
Limits on amounts that may be invested
257MNAMaximum amount where investment made in first 7 years
257MNBSection 257MNA: supplementary
257MNCMaximum amount for cases outside section 257MNA
257MNDLimit on investment in shorter applicable period
257MNEPower to amend limits on amounts that may be invested
Interpretation of conditions relating to the social enterprise
257MPMeaning of “qualifying trade”
257MQMeaning of “excluded activity”
257MQAExcluded activities: nursing homes and residential care homes
257MRExcluded activities: property development
257MSExcluded activity: subsidised generation or export of electricity
257MTExcluded activity: providing services or facilities for another business
257MUMeaning of “qualifying subsidiary”
257MVMeaning of “90% social subsidiary” of a social enterprise
257MWExcluded activities: power to amend
CHAPTER 5Attribution of relief
257NAttribution of SI relief to investments
CHAPTER 6Claims for relief
257PTime for making claims for SI relief
257PAEntitlement to claim
257PBCompliance statements
257PCCompliance certificates
257PDPenalties for fraudulent certificate or statement etc
257PEPower to amend Chapter
CHAPTER 7Withdrawal or reduction of SI relief
Value received by the investor
257QEffect of the investor receiving value from the social enterprise
257QAValue received: insignificant receipts
257QBValue received where there is more than one issue of investments
257QCValue received where part of investment treated as made in previous tax year
257QDCases where maximum SI relief not obtained
257QEWhen value is received
257QFThe amount of value received
257QGReceipts of value by and from connected persons etc
257QHReceipt of replacement value
257QISection 257QH: supplementary
Repayments etc of investments to other persons
257QJRepayments etc of share capital to other persons
257QKInsignificant payments ignored for the purposes of section 257QJ
257QLAmount of repayments etc if there is more than one issue of shares
257QMSingle issue affecting more than one individual
257QNSingle issue treated as made partly in previous tax year
257QOMaximum relief not obtained for share issue
257QPRepayment of authorised minimum within 12 months
Miscellaneous
257QQAcquisition of a trade or trading assets
257QRAcquisition of share capital
257QSRelief subsequently found not to have been due
Disposals
257RDisposal of whole or part of the investment
257RACases where maximum relief not obtained
257RBCall options
257RCPut options
CHAPTER 8Withdrawal or reduction of SI relief: procedure
Assessments and appeals
257SAssessments for the withdrawal or reduction of SI relief
257SAAppeals against section 257QS(3)(b) notices
257SBTime limits for assessments
257SCCases where assessment not to be made
Interest
257SDDate from which interest is chargeable
Information
257SEInformation to be provided by the investor
257SFInformation to be provided by the social enterprise etc
257SGPower to require information in section 257SE or 257SF cases
257SHPower to require information in other cases
257SIConfidentiality
CHAPTER 9Miscellaneous and supplementary provisions
257TTransfers between spouses or civil partners
257TAIdentification of investments on a disposal
257TBMeaning of a company being “in administration” or “in receivership”
257TCMeaning of “associate”
257TDMeaning of “control”
257TEMinor definitions etc
Part 6Venture capital trusts
Chapter 1Introduction
258Overview of Part
259Venture capital trusts and VCT approvals
260Other tax reliefs relating to VCTs
Chapter 2VCT relief
Entitlement to relief
261Eligibility for relief
262Entitlement to claim relief
263Form and amount of relief
264No entitlement to relief if there is a linked loan
264ARestricting relief where there is a linked sale
265No entitlement to relief which would have been lost if it had already been obtained
Loss of relief
266Loss of relief if shares disposed of within 5 years
267Transfers of shares between spouses or civil partners
268Loss of relief if VCT approval withdrawn
269Loss of relief which is subsequently found not to have been due
270Assessment on withdrawal or reduction of relief
Supplementary
271Provision of information
272Regulations as to procedure etc
273Interpretation of Chapter
Chapter 3VCT approvals
Giving of approval
274Requirements for the giving of approval
275Alternative requirements for the giving of approval
276Conditions relating to income
277The 15% holding limit condition
278Conditions relating to value of investments: general
279Conditions relating to value of investments: qualifying holdings
280Conditions relating to qualifying holdings and eligible shares
280AThe 80% qualifying holdings condition: disposal of holding
280BThe investment limits condition
280BAThe minimum investment on further issue condition
280CThe permitted maximum age condition
280DThe no business acquisition condition
Withdrawal of approval
281Withdrawal of VCT approval of a company
282Withdrawal of VCT approval in cases for which provision made under section 280(3)
Supplementary
283Time as from which VCT approval has effect
284Power to make regulations as to procedure
285Interpretation of Chapter
Chapter 4Qualifying holdings
Introduction
286Qualifying holdings: introduction
The requirements
286ZAThe risk-to-capital requirement
286AThe UK permanent establishment requirement
286BThe financial health requirement
287The maximum qualifying investment requirement
288The no guaranteed loan requirement
289The proportion of eligible shares requirement
290The trading requirement
291The carrying on of a qualifying activity requirement
292Ceasing to meet requirements because of administration or receivership
292AThe maximum amount raised annually through risk finance investments requirement
292AAMaximum risk finance investments when relevant holding is issued requirement
292ABMaximum risk finance investments during the 5-year post-investment period requirement
292BThe spending of money raised by SEIS investment requirement
293The use of the money raised requirement
294The relevant company to carry on the relevant qualifying activity requirement
294AThe permitted company age requirement
295The unquoted status requirement
296The control and independence requirement
297The gross assets requirement
297AThe number of employees requirement
297BThe proportion of skilled employees requirement
298The qualifying subsidiaries requirement
299The property managing subsidiaries requirement
299AThe no disqualifying arrangements requirement
Definitions
300Meaning of “qualifying trade”
301Meaning of “qualifying 90% subsidiary”
302Meaning of “qualifying subsidiary”
302AMeaning of “permanent establishment”
Excluded activities
303Meaning of “excluded activities”
304Excluded activities: wholesale and retail distribution
305Excluded activities: leasing of ships
306Excluded activities: receipt of royalties and licence fees
307Excluded activities: property development
307AExcluded activities: shipbuilding
307BExcluded activities: producing coal
307CExcluded activities: producing steel
308Excluded activities: hotels and comparable establishments
309Excluded activities: nursing homes and residential care homes
309AExcluded activities: ... export of electricity
309BExcluded activities: subsidised generation of heat and subsidised production of gas or fuel
310Excluded activities: provision of services or facilities for another business
Supplementary
311Power to amend Chapter
312Winding up of the relevant company
312APower to require information relating to disqualifying arrangements
313Interpretation of Chapter
Chapter 5Powers: winding up and mergers of VCTs
Winding up
314Power to treat VCT-in-liquidation as VCT
315Power to treat conditions for VCT approval as met with respect to VCT-in-liquidation
316Power to make provision about distributions by VCT-in-liquidation
317Power to facilitate disposal to VCT by VCT-in-liquidation
318Power in respect of periods before and after winding up
319Sections 314 to 318: supplementary
320Meaning of “VCT-in-liquidation”
Mergers
321Power to facilitate mergers of VCTs
322Provision that may be made by regulations under section 321
323Meaning of “merger” and “successor company”
Supplementary
324Regulations under Chapter
325Interpretation of Chapter
Chapter 6Supplementary and general
Acquisitions for restructuring purposes
326Restructuring to which sections 326A, 327 and 327A apply
326ACertain requirements of Chapter 3 to be treated as met
327Certain requirements of Chapter 4 to be treated as met
327AFollow-on funding
328Supplementary
Conversion of shares etc and company reorganisations
329Conversion of convertible shares and securities
330Power to facilitate company reorganisations etc involving exchange of shares
Nominees
330ANominees
Power to amend Part
330BPowers to amend Chapters 3 and 4 by Treasury regulations
Supplementary
331Meaning of a company being “in administration” or “in receivership”
331AMeaning of “knowledge-intensive company”
331BKnowledge-intensive company reaching turnover of £200,000
332Minor definitions etc
Part 7Community investment tax relief
Chapter 1Introduction
CITR
333Meaning of “CITR”
334Eligibility for CITR
335Form and amount of CITR
335ACarry forward of CITR
Miscellaneous
336Meaning of “making an investment”
337Determination of “the invested amount”
338Meaning of “the 5 year period” and “the investment date”
339Overview of other Chapters of Part
Chapter 2Accredited community development finance institutions
340Application and criteria for accreditation
341Terms and conditions of accreditation
342Period of accreditation
343Delegation of Secretary of State's functions
Chapter 3Qualifying investments
344Qualifying investments: introduction
345Conditions to be met in relation to loans
346Conditions to be met in relation to securities
347Conditions to be met in relation to shares
348Tax relief certificates
349No pre-arranged protection against risks
Chapter 4General conditions
350No control of CDFI by investor
351Investor must have beneficial ownership
352No acquisition of share in partnership
353No tax avoidance purpose
Chapter 5Claims for and attribution of CITR
Claims
354Loans: no claim after disposal or excessive repayments or receipts of value
355Securities or shares: no claim after disposal or excessive receipts of value
356No claim after loss of accreditation by the CDFI
Attribution
357Attribution: general
358Attribution: bonus shares
Chapter 6Withdrawal or reduction of CITR
Introduction
359Overview of Chapter
Disposals
360Disposal of loan during 5 year period
361Disposal of securities or shares during 5 year period
Repayment of loans
362Repayment of loan capital during 5 year period
Receipts of value
363Value received by investor during 6 year period: loans
364Value received by investor during 6 year period: securities or shares
365Receipts of insignificant value to be added together
366When value is received
367The amount of value received
368Value received if there is more than one investment
369Effect of receipt of value on future claims for CITR
370Receipts of value by or from connected persons
CITR not due
371CITR subsequently found not to have been due
Manner of withdrawal or reduction
372Manner of withdrawal or reduction of CITR
Chapter 7Supplementary and general
Alternative finance arrangements
372AMeaning of “loan” and “interest”
372BPurchase and resale arrangements
372CDeposit arrangements
372DProfit share agency arrangements
Miscellaneous
373Information to be provided by the investor
374Disclosure
375Nominees
376Application for postponement of tax pending appeal
377Identification of securities or shares on a disposal
Definitions
378Meaning of “issue of securities or shares”
379Meaning of “disposal”
380Construction of references to being “held continuously”
381Meaning of “associate”
382Minor definitions etc
Part 8Other reliefs
Chapter 1Interest payments
The relief: introduction
383Relief for interest payments
384General restrictions on relief under Chapter
384ARestriction on relief where arrangements minimise risk to borrower
384BRestriction on relief where cash basis applies
385General provisions about loans
386Loans partly meeting requirements
387Exclusion of double relief etc
Loans for plant or machinery
388Loan to buy plant or machinery for partnership use
389Eligibility requirements for interest on loans within section 388
390Loan to buy plant or machinery for employment use
391Eligibility requirements for interest on loans within section 390
Loans for interests in close companies etc
392Loan to buy interest in close company etc
393Eligibility requirements for interest on loans within section 392
393AClose investment-holding companies
394Meaning of “material interest” in section 393
395Meaning of “associate” in section 394
Loans for interests in employee-controlled companies
396Loan to buy interest in employee-controlled company
397Eligibility requirements for interest on loans within section 396
Loans for investing in partnerships
398Loan to invest in partnership
399Eligibility requirements for interest on loans within section 398
399AProperty partnerships: restriction of relief for investment loan interest
399BProperty partnerships: tax reduction for non-deductible loan interest
400Film partnerships
Loans for investing in co-operatives
401Loan to invest in co-operative
402Eligibility requirements for interest on loans within section 401
Loans for paying inheritance tax
403Loan to pay inheritance tax
404Eligibility requirements for interest on loans within section 403
405Carry back and forward of relief for interest on loans within section 403
General and supplementary
406Effect of recovery of capital in the case of some loans
407Events counting as recovery of capital for section 406
408Replacement loans
409Business successions between partnerships
410Other business successions and reorganisations
411Ineligibility of interest where business is occupation of commercial woodlands
412Information
CHAPTER 1AIrrecoverable peer-to-peer loans
The relief
412ARelief for irrecoverable peer-to-peer loans
412BClaims for additional relief: sideways relief
412CClaims for additional relief: carry-forward relief
412DHow carry-forward relief works
Supplementary provisions
412ESubsequent recovery of peer-to-peer loans
412FAssigned loans treated as made by the assignee etc
412GNominees etc
412HInteraction with other reliefs
Interpretation
412IMeaning of “loan”, “peer-to-peer loan” and related terms
412JMeaning of “operator” and related terms
Chapter 2Gift aid
The relief
413Overview of Chapter
414Relief for gifts to charity
414ATax reduction or charge if basic rate, and devolved basic rate, differ
415Meaning of “grossed up amount”
416Meaning of “qualifying donation”
417Meaning of “benefits associated with a gift”
Restrictions on associated benefits
418Restrictions on associated benefits
419Gifts and benefits linked to periods of less than 12 months
Admission rights
420Disregard of certain admission rights
421Admission rights: supplementary
Disqualified overseas gifts
422Disqualified overseas gifts
Measures to ensure donor's liability not less than tax treated as deducted
423Restriction of certain reliefs
424Charge to tax
425Total amount of income tax to which individual charged for a tax year
Election to carry back relief
426Election by donor: gift treated as made in previous tax year
Supplementary
427Meaning of “charged amount”
428Meaning of “gift aid declaration”
429Giving through self-assessment return
430“Charity” to include exempt bodies
Chapter 3Gifts of shares, securities and real property to charities etc
Entitlement to relief
431Relief for gifts of shares, securities and real property to charities etc
432Meaning of “qualifying investment”
433Meaning of “qualifying interest in land”
Amount of relief
434The relievable amount
435Incidental costs of making disposal
436Consideration
Value of net benefit to charity
437Value of net benefit to charity
438Market value of qualifying investments
438AAcquisition value of qualifying investments
439Meaning of “disposal-related obligation”
440Meaning and amount of “disposal-related liability”
Special provisions about qualifying interests in land
441Certificate required from charity
442Qualifying interests in land held jointly
443Calculation of relievable amount where joint disposal of interest in land
444Disqualifying events
Supplementary
445Prohibition against double relief
446“Charity” to include exempt bodies
Chapter 4Annual payments ...
447Overview of Chapter
448Relief for individuals
449Relief for other persons
450Other persons: payments ineligible for relief
451Special rule for persons affected by section 733 of ICTA
452The gross amount of a payment
Chapter 5Qualifying maintenance payments
453Tax reduction for qualifying maintenance payments
454Meaning of “qualifying maintenance payment”
455Child support maintenance payments
456Payments under orders for recovery of benefit etc
Chapter 6Miscellaneous other reliefs
Payments for life insurance etc
457Payments to trade unions
458Payments to police organisations
459Payments for benefit of family members
460Residence etc of claimants
Patent royalty receipts
461Spreading of patent royalty receipts
Part 9Special rules about settlements and trustees
Chapter 1Introduction
462Overview of Part
463Interpretation of Part
464Scottish trusts
Chapter 2General provision about settlements and trustees
Overview
465Overview of Chapter and interpretation
Settled property
466Meaning of “settled property” etc
Settlors
467Meaning of “settlor” etc
468Meaning of “disposable property”
469Person ceasing to be a settlor
470Transfers between settlements
471Identification of settlor following transfer covered by section 470
472Settlor where property becomes settled because of variation of will etc
473Deceased person as settlor where variation of will etc
Trustees
474Trustees of settlement to be treated as a single and distinct person
475Residence of trustees
476How to work out whether settlor meets condition C
Sub-funds
477Sub-fund elections under Schedule 4ZA to TCGA 1992
Regulations
478References to settled property etc in regulations
Chapter 3Special rates for trustees' income
479Trustees' accumulated or discretionary income to be charged at special rates
480Meaning of “accumulated or discretionary income”
481Other amounts to be charged at special rates for trustees
482Types of amount to be charged at special rates for trustees
483Sums paid by personal representatives to trustees
Chapter 4Trustees' expenses and special rates for trustees
484Trustees' expenses to be set against trustees' trust rate income
485Carry forward of unused expenses
486How allowable expenses are to be set against trust rate income
487Non-UK resident trustees
Chapter 5Share incentive plans
488Application of section 479 to trustees of Schedule 2 share incentive plans
489“The applicable period” in relation to shares
490Interpretation of Chapter
Chapter 6Trustees' first slice of trust rate income
491Special rates not to apply to first slice of trustees' trust rate income
492Cases where settlor has made more than one settlement
Chapter 7Discretionary payments
Payments constituting income of beneficiary (other than employment income)
493Discretionary payments by trustees
494Grossing up of discretionary payment and payment of income tax
495Statement about deduction of income tax
496Income tax charged on trustees
Payments constituting employment income of beneficiary
496ADiscretionary payments by trustees: employment income
496BRelief for trustees
Tax pool
497Calculation of trustees' tax pool
498Types of income tax for the purposes of section 497
Chapter 8Trustees' expenses and beneficiary's income
499Application of Chapter
500Restrictions on use of trustees' expenses to reduce the beneficiary's income
501Non-UK resident beneficiaries
502Meaning of “untaxed income” in section 501
503How beneficiary's income is reduced
Chapter 9Unauthorised unit trusts
504Treatment of income of unauthorised unit trust
504ATreatment of capital expenditure of unauthorised unit trust
505Relief for trustees of unauthorised unit trust
506Special rules for trustees affected by section 733 of ICTA
Chapter 10Heritage maintenance settlements
Introduction
507Overview of Chapter
Trustees' election in respect of income etc
508Election by trustees
509Change of circumstances during a tax year
Absence of election and income treated as income of settlor: special rules
510Sums applied for property maintenance purposes
511Prevention of double taxation: reimbursement of settlor
Application of property for non-heritage purposes: charge to tax
512Charge to tax on some settlements
513Income charged
514Persons liable
515Rate of tax
516Transfer of property between settlements
517Exemption for income treated as income of settlor
PART 9ATransactions in UK land
Introduction
517AOverview of Part
Amounts treated as profits of a trade
517BDisposals of land in the United Kingdom
517CDisposals of land: profits treated as trading profits
517DDisposals of property deriving its value from land in the United Kingdom
517EDisposals within section 517D: profits treated as trading profits
517FProfits and losses
Person to whom profits attributed
517GThe chargeable person
Anti-fragmentation
517HFragmented activities
Calculation of profit or gain on disposal
517ICalculation of surplus on a disposal of land
517JApportionments
Arrangements for avoiding tax
517KArrangements for avoiding tax
Exemptions
517LGain attributable to period before intention to develop formed
517MPrivate residences
Other supplementary provisions
517NTracing value
517ORelevance of transactions, arrangements, etc
Interpretation
517P“Another person”
517Q“Arrangement”
517R“Disposal”
517S“Land” and related expressions
517TReferences to realising a gain
517URelated parties
Part 10Special rules about charitable trusts etc
Introduction
518Overview of Part
519Meaning of “charitable trust”
Gifts and other payments
520Gifts entitling donor to gift aid relief: income tax treated as paid
521Gifts entitling donor to gift aid relief: income tax liability and exemption
521AGifts under payroll deduction schemes: income tax liability and exemption
522Gifts of money from companies: income tax liability and exemption
523Payments from other charities: income tax liability and exemption
Other exemptions
524Exemption for profits etc of charitable trades
525Meaning of “charitable trade”
526Exemption for profits etc of small-scale trades
527Exemption from charges under provisions to which section 1016 applies
528Condition as to trading and miscellaneous incoming resources
529Exemption for profits from fund-raising events
530Exemption for profits from lotteries
531Exemption for property income etc
532Exemption for savings and investment income
533Exemption for public revenue dividends
534Exemption for transactions in deposits
535Exemption for offshore income gains
536Exemption for certain miscellaneous income
537Exemption for income from estates in administration
Claims
538Requirement to make claim
538AClaims in relation to gift aid relief etc
Restrictions on exemptions
539Restrictions on exemptions
540The non-exempt amount
541Attributing income to the non-exempt amount
542How income is attributed to the non-exempt amount
Non-charitable expenditure
543Meaning of “non-charitable expenditure”
544Section 543: supplementary
545Section 543(1)(f): meaning of expenditure
546Section 543(1)(f): tax year in which certain expenditure treated as incurred
547Section 543(1)(f): payment to body outside the UK
548Section 543(1)(i) and (j): investments and loans
Substantial donor transactions
549Transactions with substantial donors
550Meaning of “relievable gift”
551Non-charitable expenditure in substantial donor transactions
552Adjustment if section 551(1) and (2) applied to single transaction
553Section 551: certain payments and benefits to be ignored
554Transactions: exceptions
555Donors: exceptions
556Connected charities
557Substantial donor transactions: supplementary
Approved charitable investments and loans
558Approved charitable investments
559Securities which are approved charitable investments
560Conditions to be met for some securities
561Approved charitable loans
Carry back of excess non-charitable expenditure
562Excess expenditure treated as non-charitable expenditure of earlier years
563Rules for attributing excess expenditure to earlier years
564Adjustments in consequence of section 562
Part 10AAlternative finance arrangements
Introduction
564AIntroduction
564B Meaning of “financial institution”
Arrangements that are alternative finance arrangements
564CPurchase and resale arrangements
564D Diminishing shared ownership arrangements
564E Deposit arrangements
564F Profit share agency arrangements
564G Investment bond arrangements
564H Provision not at arm's length: exclusion of arrangements from sections 564C to 564G
Meaning of “alternative finance return”
564IPurchase and resale arrangements
564J Purchase and resale arrangements where return in foreign currency
564K Diminishing shared ownership arrangements
564L Other arrangements
Treatment of alternative finance return as interest etc
564MTreatment of alternative finance return as interest for ITTOIA 2005
564N Alternative finance return under arrangements for trade or property business purposes
564O Relief for some alternative finance return under Chapter 1 of Part 8 etc
564P Tax relief schemes and arrangements
564Q Deduction of income tax at source under Part 15
Special rules for investment bond arrangements
564RTreatment of discount
564S Treatment of bond-holder and bond-issuer
564T Treatment as securities
564U Arrangements not unit trust scheme or offshore fund
Other rules
564VExclusion of alternative finance return from consideration for sale of assets
564W Diminishing shared ownership arrangements not partnerships
564X Treatment of principal under profit share agency arrangements
564Y Provision not at arm's length: relevant return
Part 11Manufactured payments and repos
Chapter 1Introduction
565Overview of Part
566Meaning of “UK shares” and “UK securities”
567Meaning of “overseas shares”, “overseas securities” and “overseas dividend”
568Meaning of “stock lending arrangement”
569Meaning of “repo”
570Meaning of “buying back” securities etc
571Meaning of “related” agreements
Chapter 2Manufactured payments
Introduction
572Overview of Chapter
572AMeaning of “avoidance arrangements”
Manufactured dividends on UK shares
573Manufactured dividends on UK shares
574Allowable deductions...
575Allowable deductions: restriction on double-counting
576Manufactured dividends on UK shares: Real Estate Investment Trusts
577Statements about manufactured dividends
Manufactured interest on UK securities
578Manufactured interest on UK securities
579Allowable deductions...
580Allowable deductions: restriction on double counting
Manufactured overseas dividends
581Manufactured overseas dividends
581AAvoidance arrangements
582Powers about manufactured overseas dividends
Special cases
583Manufactured payments exceeding underlying payments
584Manufactured payments less than underlying payments
585Power to deal with other special cases
General regulation-making powers
586Powers about administrative provisions
587Power for manufactured payments to be eligible for relief
588Regulation-making powers: general
Interpretation
589Meaning of “gross amount”: interest and manufactured overseas dividends
590Meaning of “relevant withholding tax”
591Interpretation of other terms used in Chapter
Chapter 3Tax credits: stock lending arrangements and repos
Stock lending arrangements
592No tax credits for borrower under stock lending arrangement
Repos
593No tax credits for interim holder under repo
594No tax credits for original owner under repo
Interpretation
595Meaning of “manufactured dividend”
Chapter 4Deemed manufactured payments
Stock lending arrangements
596Deemed manufactured payments: stock lending arrangements
597Deemed interest: cash collateral under stock lending arrangements
598Cash collateral under stock lending arrangements: supplementary
599Sections 597 and 598: quasi-stock lending arrangements and quasi-cash collateral
600Meaning of “quasi-stock lending arrangements” and “quasi-cash collateral”
Repos
601Repo cases in which deeming rules apply
602Deemed manufactured payments: repos
603Deemed deductions of tax
604Deemed increase in repurchase price: price differences under repos
605Deemed increase in repurchase price: other income tax purposes
Interpretation
606Interpretation of Chapter
Chapter 5Price differences under repos
Main tax treatment
607Treatment of price differences under repos
608Exceptions to section 607
Additional tax treatment
609Additional income tax consequences of price differences
Interpretation
610Repurchase price in deemed manufactured payment case
Power to modify
611Power to modify Chapter in non-arm's length case
Chapter 6Powers to modify repo provisions
612Non-standard repo cases
613Redemption arrangements
614Sections 612 and 613: supplementary
PART 11ZAManufactured payments
614ZAOverview of Part
614ZBKey definitions
614ZCTreatment of payer of manufactured payment
614ZDTreatment of recipient of manufactured payment
Part 11ALeasing arrangements: finance leases and loans
Chapter 1Introduction
Introduction
614AOverview of Part
Meaning of expressions about rent
614AANormal rent
614ABAccountancy rental earnings
614ACRental earnings
Chapter 2Finance leases with return in capital form
Introduction
614BArrangements to which this Chapter applies
614BAPurposes of this Chapter
Leases to which this Chapter applies
614BBApplication of this Chapter
614BCThe conditions referred to in section 614BB(1)
614BDProvisions supplementing section 614BC
614BEThe arrangements and circumstances referred to in section 614BC(8)
Current lessor taxed by reference to accountancy rental earnings
614BFCurrent lessor taxed by reference to accountancy rental earnings
Reduction of taxable rent by cumulative rental excesses
614BGReduction of taxable rent by cumulative rental excesses: introduction
614BHMeaning of “accountancy rental excess” and “cumulative accountancy rental excess”
614BIReduction of taxable rent by the cumulative accountancy rental excess
614BJMeaning of “normal rental excess” and “cumulative normal rental excess”
614BKReduction of taxable rent by the cumulative normal rental excess
Relief for bad debts by reduction of cumulative rental excesses
614BLRelief for bad debts: reduction of cumulative accountancy rental excess
614BMRecovery of bad debts following reduction under section 614BL
614BNRelief for bad debts: reduction of cumulative normal rental excess
614BORecovery of bad debts following reduction under section 614BN
Effect of disposals
614BPEffect of disposals of leases: general
614BQAssignments on which neither a gain nor a loss accrues
Capital allowances: claw-back of major lump sum
614BREffect of capital allowances: introduction
614BSCases where expenditure taken into account under Part 2, 5 or 8 of CAA 2001
614BTCases where expenditure taken into account under other provisions of CAA 2001
614BUCapital allowances deductions: waste disposal and cemeteries
614BVCapital allowances deductions: films and sound recordings
614BWContributors to capital expenditure
Schemes to which this Chapter does not at first apply
614BXPre-26 November 1996 schemes where this Chapter does not at first apply
614BYPost-25 November 1996 schemes to which Chapter 3 applied first
Chapter 3Other finance leases
Introduction
614CIntroduction to Chapter
614CAPurpose of this Chapter
Leases to which this Chapter applies
614CBLeases to which this Chapter applies
Current lessor taxed by reference to accountancy rental earnings
614CCCurrent lessor taxed by reference to accountancy rental earnings
Application of provisions of Chapter 2 for purposes of this Chapter
614CDApplication of provisions of Chapter 2 for purposes of this Chapter
Chapter 4Supplementary provisions
614DPre-26 November 1996 schemes and post-25 November 1996 schemes
614DATime apportionment where periods of account do not coincide
614DBPeriods of account and related periods of account and tax years
614DCConnected persons
614DDAssets which represent the leased asset
614DEParent undertakings and consolidated group accounts
614DFAssessments and adjustments
614DGInterpretation
Part 12Accrued income profits
Chapter 1Introduction
615Overview of Part
Chapter 2Accrued income profits and losses
Charge to tax
616Charge to tax on accrued income profits
617Income charged
618Person liable
Securities to which Chapter applies
619Meaning of “securities” and when securities are of the same kind
Transfers to which Chapter applies
620Transactions which are transfers: general
621Transferors and transferees
622Application of Chapter to different kinds of transfer
623Transfers with accrued interest
624Transfers without accrued interest
625Transfers with unrealised interest
626Transfers of variable rate securities
627Meaning of “variable rate securities”
Calculating accrued income profits and losses
628Making accrued income profits and losses: general rule
629Calculating accrued income profits and losses where section 628 applies
630Making accrued income profits: settlement day outside interest period
631Amount of accrued income profits where section 630 applies
The payments treated as made on transfers
632Payment on transfer with accrued interest
633Payment on transfer without accrued interest
634Payment on transfer with unrealised interest
635Payment on transfer of variable rate securities
Exception where there is a transfer to a legatee
636Exception where there is a transfer to a legatee
Relief for losses
637Accrued income losses treated as payments in next interest period
Excluded transferors and transferees
638Excluded persons: disregard of certain payments and transfers
639Small holdings: individuals
640Small holdings: personal representatives
641Small holdings: trustees of a disabled person's trusts
642Traders
643Non-residents
644Individuals to whom the remittance basis applies
645Charitable trusts etc
646Pension scheme trustees
647Makers of manufactured payments
Further transactions treated as transfers
648Strips of gilt-edged securities
649New securities issued with extra return
650Trading stock appropriations etc
651Owner becoming entitled to securities as trustee
652Securities ceasing to be held on charitable trusts
Excluded transfers
653Stock lending
654Sale and repurchase arrangements
655Transfers under sale and repurchase arrangements
656Power to modify: non-standard sale and repurchase arrangements
657Power to modify: redemption arrangements
658Powers to modify: supplementary
Special rules about some calculations
659Transfers with or without accrued interest: interest in default
660Transfers with unrealised interest: interest in default
661Successive transfers with unrealised interest in default
662New securities issued with extra return: special rules about payments
663Transfers without accrued interest to makers of manufactured payments
664Foreign currency securities: sterling equivalent of payments on transfers
665Foreign currency securities: unrealised interest payable in foreign currency
Nominees and trustees
666Certain transfers by or to nominees or trustees treated as made by or to others
667Trustees' accrued income profits treated as settlement income
Relief where transfer proceeds unremittable
668Relief for unremittable transfer proceeds: general
669Relief for unremittable transfer proceeds: section 630 profits
670Withdrawal of relief
Individuals to whom remittance basis applies
670AIndividuals to whom remittance basis applies
Interpretation
671Meaning of “interest”
672Meaning of “interest payment day”
673Meaning of “interest period”
674Meaning of “the settlement day”
675The holding of securities
676Nominal value of securities: general
677Nominal value: foreign currency securities
Chapter 3Exemptions relating to interest on securities
678Exemptions relating to interest on securities: preliminary
679Interest on securities involving accrued income losses: general
680Interest on securities involving accrued income losses: foreign trustees
681Unrealised interest received by transferee after transfer
Part 12ASale and lease-back etc
Chapter 1Payments connected with transferred land
Overview
681AOverview
Application of the Chapter
681AATransferor or associate becomes liable for payment of rent
681ABTransferor or associate becomes liable for payment other than rent
681ACRelevant income tax relief and relevant deduction from earnings
Relief: restriction and carrying forward
681ADRelevant income tax relief: deduction not to exceed commercial rent
Certain deductions from earnings: restriction and carrying forward of relief
681AEDeduction from earnings not to exceed commercial rent
681AFCarrying forward parts of payments
681AGAggregation and apportionment of payments
681AHPayments made for later periods
Interpretation etc
681AIExclusion of service charges etc
681AJCommercial rent: comparison with rent under a lease
681AKCommercial rent: comparison with payments other than rent
681ALLease and rent
681AMAssociated persons
681ANLand outside the UK
Chapter 2New lease of land after assignment or surrender
Overview
681BOverview
Application of the Chapter
681BANew lease after assignment or surrender
Taxation of consideration
681BBTaxation of consideration
681BCPosition where new lease does not include all original property
Relief for rent under new lease
681BDRelief for rent under new lease
New lease treated as ending
681BENew lease treated as ending
681BFPosition where rent reduces
681BGPosition where lease may be ended
681BHPosition where lease may be varied
681BILease treated as ending: rentcharge
Lease varied to provide for increased rent
681BJLease varied to provide for increased rent
Interpretation
681BKRelevant income tax relief
681BLLinked persons
681BMLease, lessee, lessor and rent
Chapter 3Leased trading assets
Overview
681COverview
Application of the Chapter
681CAProfessions and vocations
681CBLeased trading assets
Relief: restriction and carrying forward
681CCTax deduction not to exceed commercial rent
681CDLong funding finance leases
681CECommercial rent
Interpretation
681CFLease
681CGRelevant asset
Chapter 4Leased assets: capital sums
Overview
681DOverview
Application of the Chapter
681DAApplication of the Chapter
681DBPayment under lease
681DCSum obtained
Charge to income tax
681DDCharge to income tax
681DEHire-purchase agreements
681DFAdjustments where sum obtained before payment made
Obtaining of sum
681DGSum obtained in respect of interest
681DHSum obtained in respect of lessee's interest
681DIDisposal of interest to associate
Apportionment
681DJApportionment of payments made and of sums obtained
681DKManner of apportionment
Interpretation
681DLAssociates
681DMCapital sum
681DNLease
681DORelevant asset
681DPRelevant tax relief
Part 13Tax avoidance
Chapter 1Transactions in securities
Introduction
682Overview of Chapter
683Provisions of Chapter
Person liable to counteraction of income tax advantages
684Person liable to counteraction of income tax advantage
685Receipt of consideration in connection with distribution by or assets of close company
686Excluded circumstances: fundamental change of ownership
687Income tax advantage
688Receipt of consideration representing company's assets, future receipts or trading stock (circumstance C)
689Receipt of consideration in connection with relevant company distribution (circumstance D)
690Receipt of assets of relevant company (circumstance E)
691Meaning of “relevant company” in sections 689 and 690
692Abnormal dividends: general
693Abnormal dividends: the excessive return condition
694Abnormal dividends: the excessive accrual condition
Procedure for counteraction of income tax advantages
695Notice of enquiry
696Opposed notifications: statutory declarations
697Opposed notifications: determinations by tribunal
698Counteraction notices
698ANo-counteraction notices
699Limit on amount assessed in section 689 and 690 cases
700Timing of assessments ...
Clearance procedure ...
701Application for clearance of transactions
702Effect of clearance notification under section 701
703Power to obtain information
...
704The tribunal
Appeals
705Appeals against counteraction notices
706Rehearing by tribunal of appeal against counteraction notice
707Statement of case by tribunal for opinion of High Court or Court of Session
708Cases before High Court or Court of Session
709Effect of appeals against tribunal's determination under section 706
710Appeals from High Court or Court of Session
711Proceedings in Northern Ireland
Supplementary
712Application of Chapter where individual within section 684 dies
713Interpretation of Chapter
Chapter 2Transfer of assets abroad
Introduction
714Overview of Chapter
715Meaning of “relevant transaction”
716Meaning of “relevant transfer” and “transfer”
717Meaning of “assets” etc
718Meaning of “person abroad” etc
719Meaning of “associated operation”
Charge where power to enjoy income
720Charge to tax on income treated as arising under section 721
721Individuals with power to enjoy income as a result of relevant transactions
721AMeaning of “protected foreign-source income” in section 721
721BSection 721A: tainting
722When an individual has power to enjoy income of person abroad
723The enjoyment conditions
724Special rules where benefit provided out of income of person abroad
725Reduction in amount charged where controlled foreign company involved
726Non-UK domiciled individuals to whom remittance basis applies
Charge where capital sums received
727Charge to tax on income treated as arising under section 728
728Individuals receiving capital sums as a result of relevant transactions
729The capital receipt conditions
729AMeaning of “protected foreign-source income” in section 728
730Non-UK domiciled individuals to whom remittance basis applies
Charge where benefit received
731Charge to tax on income treated as arising under section 732
732 Individuals receiving a benefit as a result of relevant transactions
733Income charged under section 731
733ASettlor liable for section 731 charge on closely-related beneficiary
733BRecipients of onward gifts
733CCases where income treated as arising to recipient of onward gift
733DCases where deemed income attributed to recipient of onward gift
733ECases where settlor liable following onward gift
734Reduction in amount charged: previous capital gains tax charge
734AReduction in amount charged: previous settlements charge
735Non-UK domiciled individuals to whom remittance basis applies
735ASection 735: relevant income and benefits relating to foreign deemed income
735BSettlor liable under section 733A and remittance basis applies
735CPerson liable under section 733C or 733E and remittance basis applies
Exemptions: no tax avoidance purpose or genuine commercial transaction
736Exemptions: introduction
737Exemption: all relevant transactions post-4 December 2005 transactions
738Meaning of “commercial transaction”
739Exemption: all relevant transactions pre-5 December 2005 transactions
740Exemption: relevant transactions include both pre-5 December 2005 and post-4 December 2005 transactions
741Application of section 742 (partial exemption)
742Partial exemption where later associated operations fail conditions
742APost-5 April 2012 transactions: exemption for genuine transactions
Value of certain benefits
742BValue of certain benefits
742CValue of benefit provided by a payment by way of loan
742DValue of benefit provided by making movable property available
742EValue of benefit provided by making land available
General
743No duplication of charges
744Meaning of taking income into account in charging income tax for section 743
745Rates of tax applicable to income charged under sections 720 and 727 etc
746Deductions and reliefs where individual charged under section 720 or 727
747Amounts corresponding to accrued income profits and related interest
Supplementary
748Power to obtain information
749Restrictions on particulars to be provided by relevant lawyers
750Restrictions on particulars to be provided by banks
751 The tribunal’s jurisdiction on appeals
Chapter 3Transactions in land
Introduction
752Overview of Chapter
753Meaning of disposing of land
754Priority of other income tax provisions
Charge on gains from transactions in land
755Charge to tax on gains from transactions in land
756Income treated as arising when gains obtained from some land disposals
757Person obtaining gain
758Income charged
759Person liable
760Method of calculating gain
Further provisions relevant to the charge
761Transactions, arrangements, sales and realisations relevant for Chapter
762Tracing value
763Meaning of “another person”
764Valuations and apportionments
Exemptions
765Exemption: gain attributable to period before intention to develop formed
766Exemption: disposals of shares in companies holding land as trading stock
767Exemption: private residences
Recovery of tax
768Recovery of tax where consideration receivable by person not assessed
769Recovery of tax: certificates of tax paid etc
Clearances and power to obtain information
770Clearance procedure
771Power to obtain information
Interpretation
772Interpretation of Chapter
Chapter 4Sales of occupation income
Introduction
773Overview of Chapter
774Meaning of “occupation”
775Priority of other tax provisions
Charge on sale of occupation income
776Charge to tax on sale of occupation income
777Conditions for sections 778 and 779 to apply
778Income arising where capital amount other than derivative property or right obtained
779Income arising where derivative property or right obtained
Further provisions relevant to the charge
780Transactions, arrangements, sales and realisations relevant for Chapter
781Tracing value
782Meaning of “other person”
783Valuations and apportionments
Exemption for sales of going concerns
784Exemption for sales of going concerns
785Restriction on exemption: sales of future earnings
Recovery of tax
786Recovery of tax where consideration receivable by person not assessed
787Recovery of tax: certificates of tax paid etc
Power to obtain information
788Power to obtain information
Interpretation
789Minor definitions
Chapter 5Avoidance involving trading losses
Introduction
790Overview of Chapter
Individuals in partnership: recovery of excess relief
791Charge to tax on income treated as received under section 792
792Partners claiming excess sideways or capital gains relief
793Calculating the amount of income treated as received
794Meaning of “the total amount of trade losses claimed” etc
795Meaning of “post-1 December 2004 loss”
Individuals claiming relief for film-related trading losses
796Charge to tax on income treated as received under section 797
797Individuals claiming sideways or capital gains relief for film-related losses
798Meaning of “non-taxable consideration” etc
799Meaning of “disposal of a right of the individual to profits” etc
800Meaning of “film-related losses” etc
801Meaning of “capital contribution”
802Exclusion of amounts in calculating capital contribution by a partner
803Prohibition against double counting
Individuals in partnership claiming relief for licence-related trading losses
804Charge to tax on income treated as received under section 805
805Partners claiming relief for licence-related trading losses
806Calculation of amount of income treated as received by the individual
807Supplementary provision relating to calculation in section 806
808Meaning of “disposal of the licence” etc
809Other definitions
Chapter 5ATransfers of income streams
809AZAApplication of Chapter
809AZBValue of transferred income stream treated as income
809AZCException: amount otherwise taxed
809AZDException: certain annuities
809AZEException: transfer by way of security
809AZFPartnership shares
809AZGInterpretation
Chapter 5AADisposals of income streams through partnerships
809AAZAApplication of Chapter
809AAZBRelevant amount to be treated as income
Chapter 5BFinance arrangements
Type 1 arrangements
809BZAType 1 finance arrangement defined
809BZBCertain tax consequences not to have effect
809BZCPayments treated as borrower's income
809BZDDeemed interest if borrower is not a partnership
809BZEDeemed interest if borrower is a partnership
Type 2 arrangements
809BZFType 2 finance arrangement defined
809BZGRelevant change in relation to partnership
809BZHCertain tax consequences not to have effect
809BZIDeemed interest
Type 3 arrangements
809BZJType 3 finance arrangement defined
809BZKCertain tax consequences not to have effect
809BZLDeemed interest
Exceptions
809BZMExceptions: preliminary
809BZNExceptions
809BZOExceptions: relevant person
809BZPPower to make further exceptions
Supplementary
809BZQAccounts
809BZRArrangements
809BZSAssets
Chapter 5CLoan or credit transactions
809CZALoan or credit transaction defined
809CZBCertain payments treated as yearly interest
809CZCTax charged on income transferred
Chapter 5DDisposals of assets through partnerships
809DZAApplication of Chapter
809DZBRelevant amount to be treated as income
CHAPTER 5EDisguised investment management fees
809EZADisguised investment management fees: charge to income tax
809EZBMeaning of “management fee” in section 809EZA
809EZCMeaning of “carried interest” in section 809EZB
809EZDSums treated as “carried interest” for purposes of section 809EZB
809EZDASums arising to connected persons other than companies
809EZDBSums arising to connected company or unconnected person
809EZEInterpretation of Chapter
809EZFDisguised investment management fees: anti-avoidance
809EZGDisguised investment management fees: avoidance of double taxation
809EZHPowers to amend Chapter
CHAPTER 5FIncome-based carried interest
Income-based carried interest
809FZAOverview
809FZBIncome-based carried interest: general rule
Average holding period
809FZCAverage holding period
Average holding period: disposals
809FZDDisposals
809FZEPart disposals
809FZFUnwanted short-term investments
Average holding period: derivatives and hedging
809FZGDerivatives
809FZHHedging: exchange gains and losses
809FZIHedging: interest rates
Average holding period: aggregation of acquisitions and disposals
809FZJSignificant interests
809FZKVenture capital funds
809FZLSignificant equity stake funds
809FZMControlling equity stake funds
809FZNReal estate funds
809FZOFunds of funds
809FZPSecondary funds
Direct lending funds
809FZQDirect lending funds
809FZRDirect lending funds: exception
Conditionally exempt carried interest
809FZSConditionally exempt carried interest
809FZTCarried interest which ceases to be conditionally exempt
Supplementary
809FZUEmployment-related securities
809FZV“Loan to own” investments
809FZWAnti-avoidance
809FZXTreasury regulations
809FZY“Reasonable to suppose”
Interpretation
809FZZInterpretation of Chapter 5F
Chapter 6Avoidance involving leases of plant and machinery
809ZAPlant and machinery leases: capital receipts to be treated as income
809ZBSection 809ZA: interpretation
809ZCSection 809ZA: lease of plant and machinery and other property
809ZDSection 809ZA: expectation that relevant capital payment will not be paid
809ZECapital payment”, “relevant capital payment” etc
809ZFFurther interpretation of section 809ZA etc
809ZFAConsideration for taking over payment obligations as lessee treated as income
Chapter 7Avoidance involving obtaining tax relief for interest
809ZGTax relief schemes and arrangements
CHAPTER 8Tainted charity donations
Introduction
809ZHOverview of Chapter
809ZIRelievable charity donations
Tainted donations
809ZJTainted donations
809ZKCircumstances in which financial advantage deemed to be obtained
809ZLCertain financial advantages to be ignored
Removal of reliefs and imposition of charge to tax
809ZMRemoval of income tax relief in respect of tainted donations etc
809ZNIncome tax charge where gift aid is withdrawn
809ZOIncome tax charge where payment of trust income to charity
Supplementary
809ZPConnected charities
809ZQConnected persons
809ZRMinor definitions
Part 14Income tax liability: miscellaneous rules
Chapter A1Remittance basis
Introduction
809AOverview of Chapter
Application of remittance basis
809BClaim for remittance basis to apply
809CClaim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply
809DApplication of remittance basis without claim where unremitted foreign income and gains under £2,000
809EApplication of remittance basis without claim: other cases
Effect of section 809B, 809D or 809E applying
809FEffect on what is chargeable
809GClaim for remittance basis: effect on allowances etc
809HClaim for remittance basis by long-term UK resident: charge
809IRemittance basis charge: income and gains treated as remitted
809JSection 809I: order of remittances
Remittance of income and gains: introduction
809KSections 809L to 809Z6: introduction
Remittance of income and gains: meaning of “remitted to the United Kingdom”
809LMeaning of “remitted to the United Kingdom”
809MMeaning of “relevant person”
809NSection 809L: gift recipients, qualifying property and enjoyment
809OSection 809L: dealings where there is a connected operation
Remittance of income and gains: amount remitted
809PSection 809L: amount remitted
Remittance of income and gains: transfers from mixed funds
809QSections 809L and 809P: transfers from mixed funds
809RSection 809Q: composition of mixed fund
809RASpecial mixed fund rules for certain employment cases
809RBQualifying accounts
809RCBreaches of the deposit rule
809RDEffect where 30-day deadline is met
809SSection 809Q: anti-avoidance
Remittance of income and gains: supplementary
809TForeign chargeable gains accruing on disposal made otherwise than for full consideration
809UDeemed income or gains not to be regarded as remitted before time when they are treated as arising or accruing
Relief for money used to pay tax etc
809UAMoney used for payments on account
809VMoney paid to the Commissioners
Business investment relief
809VAMoney or other property used to make investments
809VBFailure to invest within 45 days
809VCQualifying investments
809VDCondition A
809VECommercial trades
809VFCondition B
809VGIncome or gains treated as remitted following certain events
809VHMeaning of “potentially chargeable event”
809VIThe appropriate mitigation steps
809VJThe grace period allowed for the appropriate mitigation steps
809VKRetention of funds to meet CGT liabilities
809VLEffect of taking appropriate mitigation steps within grace period
809VMCases involving tax deposits
809VNOrder of disposals etc
809VOInvestments made from mixed funds
Relief for certain UK services
809WConsideration for certain services
Exempt property relief
809XExempt property
809YProperty that ceases to be exempt property treated as remitted
809YAException to section 809Y: proceeds taken offshore or invested
809YBCondition E: supplementary
809YCEffect of disapplying section 809Y
809YDChargeable gains accruing on sales of exempt property
809YEException to section 809Y: gifts to the nation
809YFException to section 809Y: compensation taken offshore or invested
809ZPublic access rule: general
809Z1Public access rule: relevant VAT relief
809Z2Personal use rule
809Z3Repair rule
809Z4Temporary importation rule
809Z5Notional remitted amount
809Z6Exempt property: other interpretation
Interpretation of Chapter
809Z7Meaning of “foreign income and gains” etc
809Z8Meaning of “the disposal proceeds”
809Z9Taking proceeds etc offshore or investing them
809Z10General interpretation
Chapter 1Limits on liability to income tax of non-UK residents
Introduction
810Overview of Chapter
Limit for non-UK resident individuals, trustees etc
811Limit on liability to income tax of non-UK residents
812Case where limit not to apply
812ATemporary non-residents
813Meaning of “disregarded income”
814Meaning of “disregarded transaction income”
Limit for non-UK resident companies
815Limit on liability to income tax of non-UK resident companies
816Meaning of “disregarded company income”
The independent broker conditions
817The independent broker conditions
The independent investment manager conditions
818The independent investment manager conditions
819Investment managers: the 20% rule
820Meaning of “qualifying period”
821Meaning of “relevant disregarded income”
822Meaning of “beneficial entitlement”
823Treatment of transactions where requirements of 20% rule not met
824Application of 20% rule to collective investment schemes
Supplementary
825Meaning of “disregarded savings and investment income”
826Meaning of “disregarded annual payments”
827Meaning of “investment manager” and “investment transaction”
828Transactions through brokers and investment managers
Chapter 1AExemption for persons not domiciled in United Kingdom
828AIntroduction
828BConditions to be met
828CThe exemption
828DInterpretation of Chapter
Chapter 2Residence
829Residence of individuals temporarily abroad
830Residence of individuals working abroad
831Foreign income of individuals in the United Kingdom for temporary purpose
832Employment income of individuals in the United Kingdom for temporary purpose
833Visiting forces etc
834Residence of personal representatives
835Residence rules for trustees ...
835AResidence of companies
Chapter 2ADomicile
835BDomicile for income tax purposes of overseas electors
835BADeemed domicile
Chapter 2B UK representative of non-UK resident
Introduction
835COverview of Chapter
835DIncome tax chargeable on company's income: application
Branches and agencies
835EBranch or agency treated as UK representative
835FTrade or profession carried on in partnership
Persons who are not UK representatives
835GAgents
835HBrokers
835IInvestment managers
835JPersons acting under alternative finance arrangements
835KLloyd's agents
The independent broker conditions
835LThe independent broker conditions
The independent investment manager conditions
835MThe independent investment manager conditions
835NInvestment managers: the 20% rule
835OMeaning of “qualifying period”, “relevant disregarded income” and “beneficial entitlement”
835PTreatment of transactions where 20% rule not met
835QApplication of 20% rule to collective investment schemes
Supplementary
835RSupplementary provision
835SInterpretation of Chapter
Chapter 2CIncome tax obligations and liabilities imposed on UK representatives
835TIntroduction to Chapter
835UObligations and liabilities of UK representative
835VExceptions: notices and information
835WExceptions: criminal offences and penalties etc
835XIndemnities
835YMeaning of “independent agent”
Chapter 3Jointly held property
836Jointly held property
837Jointly held property: declarations of unequal beneficial interests
Chapter 3ABanks etc in compulsory liquidation
837AOverview of Chapter
837BApplication of Chapter
837CCharge to income tax on winding up receipts
837DTransfer of rights to payment
837EAllowable deductions
837FElection to carry back
837GRelationship of Chapter with other income tax provisions
837HInterpretation of Chapter
Chapter 4Other miscellaneous rules
838Local authorities and local authority associations
838AAsbestos compensation settlements
839Issue departments of the Reserve Bank of India and the State Bank of Pakistan
840Government securities held by non-UK resident central banks
841Official agents of Commonwealth countries etc
842 UK Economic Interest Groupings and European Economic Interest Groupings
843Restriction of deductions for annual payments
844Letters patent etc: exempting provisions
845Extra return to be treated as interest etc
846Interpretation of section 845
Part 15Deduction of income tax at source
Chapter 1Introduction
847Overview of Part
848Income tax deducted at source treated as income tax paid by recipient
849Interaction with other Income Tax Acts provisions
Chapter 2Meaning of “relevant investment” for purposes of section 876
Introduction
850Overview of Chapter
Duty to deduct sums representing income tax
851Duty to deduct sums representing income tax
852Power to make regulations disapplying section 851
Deposit-takers and relevant investments
853Meaning of “deposit-taker”
854Power to prescribe persons as deposit-takers
855Meaning of “investment” and “deposit”
856Investments which are relevant investments
857Investments to be treated as being or as not being relevant investments
Investments which are not relevant investments: non-UK resident beneficiaries
858Declarations of non-UK residence: individuals
859Declarations of non-UK residence: Scottish partnerships
860Declarations of non-UK residence: personal representatives
861Declarations of non-UK residence: settlements
862Inspection of declarations
Investments which are not relevant investments
863General client account deposits
864Qualifying uncertificated eligible debt security units
865Qualifying certificates of deposit
866Qualifying time deposits
867Lloyd's premium trust funds
868Investments held outside the United Kingdom
869Sale and repurchase of securities
870Other investments
Supplementary
871Power to make regulations to give effect to Chapter
872Power to make orders amending Chapter
873Discretionary or accumulation settlements
Chapter 3Deduction from certain payments of yearly interest
Duty to deduct sums representing income tax
874Duty to deduct from certain payments of yearly interest
Exceptions from duty to deduct
875Interest paid by building societies
876Interest paid by deposit-takers
877UK public revenue dividends
878Interest paid by banks
879Interest paid on advances from banks
880Interest paid on advances from building societies
881National Savings Bank interest
882Quoted Eurobond interest
883Interest on loan to buy life annuity
884Relevant foreign income
885Authorised persons dealing in financial instruments
886Interest paid by recognised clearing houses etc
887Payments made by registered societies
888Statutory interest
888AQualifying private placements
888BDesignated dividends of investment trusts
888CInterest distributions of certain open-ended investment companies
888DInterest distribution of certain authorised unit trusts
888DAPayments of interest by a QAHC
888EInterest on certain peer-to-peer lending
Chapter 4Deduction from payments in respect of building society securities
889Payments in respect of building society securities
Chapter 5Deduction from payments of UK public revenue dividends
Introduction
890Overview of Chapter
891Meaning of “UK public revenue dividend”
Duty to deduct sums representing income tax
892Duty to deduct from certain UK public revenue dividends
Payments which are payable gross
893Payments of UK public revenue dividends which are payable gross
894Treasury directions
Deduction at source applications
895Deduction at source application
896Withdrawal of application
Regulations
897Power to make regulations
Chapter 6Deduction from annual payments and patent royalties
Introduction
898Overview of Chapter
899Meaning of “qualifying annual payment”
Duty to deduct from annual payments
900Deduction from commercial payments made by individuals
901Deduction from annual payments made by other persons
902Meaning of “applicable rate” in section 901
Duty to deduct from patent royalties
903Deduction from patent royalties
Supplementary
904Annual payments for dividends or non-taxable consideration
905Interpretation of Chapter
Chapter 7Deduction from other payments connected with intellectual property
Certain royalties etc where usual place of abode of owner is abroad
906Certain royalties etc where usual place of abode of owner is abroad
907Meaning of “intellectual property”
908Royalty payments etc made through UK resident agents
909Royalty payments: further provision
Proceeds of a sale of patent rights
910Proceeds of a sale of patent rights: payments to non-UK residents
Chapter 8Chapters 6 and 7: special provision in relation to royalties
Deduction at special rates
911Double taxation arrangements: deduction at treaty rate
912Power to make directions disapplying section 911
913Interpretation of sections 911 and 912
Discretion to make payments gross
914European Union
915Power to make directions disapplying section 914
916Duty of payee to notify if payment not exempt
917Supplementary
Tax avoidance
917ATax avoidance arrangements
Chapter 9Manufactured payments
Manufactured dividends
918Manufactured dividends on UK shares: Real Estate Investment Trusts
Manufactured interest
919Manufactured interest on UK securities: payments by UK residents etc
920Foreign payers of manufactured interest: the reverse charge
921Cases where interest on underlying securities paid gross
Manufactured overseas dividends
922Manufactured overseas dividends: payments by UK residents etc
923Foreign payers of manufactured overseas dividends: the reverse charge
924Power to reduce section 923 liability
925Power to provide set-off entitlement
Repos
925ACreditor repos
925BDebtor repos
925CActual payments ignored if section 925A ... applies
925DPower to modify repo sections
925ECases where section 925D applies: non-standard repos
925FInterpretation of the repo sections
Supplementary
926Interpretation of Chapter
927Regulation-making powers: general
Chapter 10Deduction from non-commercial payments by companies
928Chargeable payments connected with exempt distributions
Chapter 11Payments between companies etc: exception from duties to deduct
Introduction
929Overview of Chapter
Exception from duties to deduct for excepted payments
930Exception from duties to deduct sums representing income tax
931Power to make directions disapplying section 930
932Meaning of “qualifying partnership”
Excepted payments
933UK resident companies
934Non-UK resident companies
935PEP and ISA managers
936Recipients who are to be paid gross
937Partnerships
Incorrect belief that payment is an excepted payment
938Consequences of reasonable but incorrect belief
Chapter 12Funding bonds
939Duty to retain bonds where issue treated as payment of interest
940Exception from duty to retain bonds
940ANo appropriate bond or combination of bonds
Chapter 13Unauthorised unit trusts
941Deemed payments to unit holders and deemed deductions of income tax
942Income tax to be collected from trustees
943Calculation of trustees' income pool
...Treatment of cases involving double tax relief
943BThe “foreign element” of a deemed deduction or deemed income
943CCalculation of trustees' double tax relief pool
943DAnnual statements
Chapter 14Tax avoidance: directions for duty to deduct to apply
944Directions for deduction from payments to non-UK residents
Chapter 15Collection: deposit-takers, building societies and certain companies
Introduction
945Overview of Chapter
946Payments within this section
947Return periods
948Meaning of “accounting period”
Returns of income tax
949Payments in an accounting period
950Payments otherwise than in an accounting period
Collection and payment of income tax
951Collection and payment of income tax
Set-off
952Conditions for a set-off claim
953How a set-off claim works
954Proceedings begun after a set-off claim is made
955Proceedings begun before a set-off claim is made
Assessments and errors
956Assessments where section 946 payment included in return
957Assessments in other cases
958Payer's duty to deliver amended return
959Application of Income Tax Acts provisions about time limits for assessments
960Further provisions about assessments
Supplementary
961Relationship between Chapter and Income Tax Acts powers
962Power to make regulations modifying Chapter
Chapter 16Collection: certain payments by other persons
963Collection of income tax on certain payments by other persons
963A Power to make regulations modifying section 963
Chapter 17Collection through self-assessment return
964Collection through self-assessment return
Chapter 18Other regimes involving the deduction of income tax at source
Visiting performers
965Overview of sections 966 to 970
966Duty to deduct and account for sums representing income tax
967Calculation of sums representing income tax
968Treatment of sums representing income tax
969Regulations
970Supplementary
Non-resident landlords
971Income tax due in respect of income of non-resident landlords
972Regulations under section 971
Real Estate Investment Trusts
973Income tax due in respect of distributions
974Regulations under section 973
Chapter 19General
Supplementary
975Statements about deduction of income tax
975AStatements about certain payments of interest
976Arrangements for payments of interest less tax or at specified net rate
977Payments to companies
978Application to public departments
979Designated international organisations: exceptions from duties to deduct
979AFSCS payments representing interest
980Derivative contracts: exception from duties to deduct
981Foreign currency securities etc: exception from duties to deduct
981AOffshore receipts in respect of intangible property: exception from duties to deduct
982Income tax is calculated by reference to gross amounts
Interpretation
983Meaning of “deposit”
984Meaning of “financial instrument”
985Meaning of “qualifying certificate of deposit”
986Meaning of “qualifying uncertificated eligible debt security unit”
987Meaning of “quoted Eurobond”
Part 16Income Tax Acts definitions etc
Chapter 1Definitions
988Overview of Chapter
989The definitions
990Meaning of “Act”
991Meaning of “bank”
992Meaning of “company”
993Meaning of “connected” persons
994Meaning of “connected” persons: supplementary
995Meaning of “control”
996Meaning of “farming” and related expressions
997Meaning of “generally accepted accounting practice” and related expressions
998Meaning of “grossing up”
998AMeaning of “hire-purchase agreement”
999Meaning of “local authority”
1000Meaning of “local authority association”
1001Meaning of “offshore installation”
1002Regulations about the meaning of “offshore installation”
1003Meaning of “oil and gas exploration and appraisal”
1004Meaning of “property investment LLP”
1005Meaning of “recognised stock exchange”etc
1006Meaning of “research and development”
1007Meaning of “unit trust scheme”
1007AMeaning of “permanent establishment”
Chapter 2Other Income Tax Acts provisions
1008Scotland
1009Sources of income within the charge to income tax or corporation tax
1010Application of Income Tax Acts to recognised investment exchanges
1011References to married persons, or civil partners, living together
1012Relationship between rules on highest part of total income
1013Territorial sea of the United Kingdom
1014Orders and regulations
1015Territorial scope of charges under certain provisions to which section 1016 applies
1016Table of provisions to which this section applies
Part 17Definitions for purposes of Act and final provisions
Definitions for the purposes of Act
1017Abbreviated references to Acts
1018“Act” to include Scottish and Northern Ireland legislation in some cases
1019Meaning of “certificate of deposit”
1020Claims and elections
1021Application of definitions of “connected” persons and “control”
1022Meaning of “debenture”
1023Meaning of “double taxation arrangements”
1024Meaning of “gilt-edged securities”
1025Meaning of “modified net income”
1026Meaning of “non-qualifying income” for the purposes of section 1025
Final provisions
1027Minor and consequential amendments
1028Power to make consequential provision
1029Power to undo changes
1030Transitional provisions and savings
1031Repeals and revocations
1032Index of defined expressions
1033Extent
1034Commencement
1035Short title
SCHEDULES
SCHEDULE 1Minor and consequential amendments
Part 1Income and Corporation Taxes Act 1988
1The Income and Corporation Taxes Act 1988 (c. 1) is...
2Omit sections 1 to 2 (the charge to income tax,...
3Omit section 3 (certain income charged at basic rate).
4Omit section 4 (construction of references in Income Tax Acts...
5Omit section 7(1) (deduction of income tax from payments to...
6Minor and consequential amendments
7Omit section 42A (non-resident landlords and their representatives).
8Omit sections 50, 51 and 51AA (United Kingdom securities: Treasury...
9In section 56(3)(c) (transactions in deposits with and without certificates...
10Minor and consequential amendments
11Omit section 109A (relief for post-cessation expenditure).
12Minor and consequential amendments
13Omit section 117 (restriction on relief for limited partners: individuals)....
14Minor and consequential amendments
15Minor and consequential amendments
16Minor and consequential amendments
17Minor and consequential amendments
18Omit sections 118ZE to 118ZK (restriction on reliefs for non-active...
19Omit sections 118ZL and 118ZM (restriction on reliefs for partnerships...
20Omit sections 118ZN and 118ZO (partners: meaning of “contribution to...
21Minor and consequential amendments
22In section 209A(4) (section 209(3AA): link to shares of company...
23Omit section 214(1)(b) (chargeable payments connected with exempt distributions: deduction...
24(1) Amend section 231AA (no tax credit for borrower under...
25(1) Amend section 231AB (no tax credit for original owner...
26In section 231B(12) (consequences of certain arrangements to pass on...
27Minor and consequential amendments
28Minor and consequential amendments
29Minor and consequential amendments
30Minor and consequential amendments
31Minor and consequential amendments
32Minor and consequential amendments
33Minor and consequential amendments
34Minor and consequential amendments
35Minor and consequential amendments
36(1) Amend section 266 (life assurance premiums) as follows.
37Minor and consequential amendments
38Omit section 276 (effect on relief of charges on income)....
39Omit section 277 (partners).
40(1) Amend section 278 (non-residents) as follows.
41Omit section 282 (construction of references to spouses or civil...
42Omit sections 282A and 282B (jointly held property).
43Omit section 305A (relief for loss on disposal of shares)....
44In section 312(2A) (interpretation of Chapter 3), as it applies...
45Omit section 320 (Commonwealth Agents-General and official agents etc).
46Omit section 323 (visiting forces).
47Omit section 332A (venture capital trusts: relief).
48Omit section 334 (Commonwealth and Irish citizens temporarily abroad).
49Omit section 335 (residence of persons working abroad).
50Omit section 336 (temporary residents in the United Kingdom).
51(1) Amend section 339 (charges on income: donations to charity)...
52Minor and consequential amendments
53Omit section 347B (qualifying maintenance payments).
54Omit section 348 (payments out of profits or gains brought...
55Omit section 349 (payments not out of profits or gains...
56Omit section 349ZA (extension of section 349: proceeds of sale...
57Omit sections 349A to 349D (exceptions to section 349 for...
58Omit section 349E (deductions under section 349(1): payment of royalties...
59Omit section 350 (charge to tax where payments made under...
60Omit section 350A (UK public revenue dividends: deduction of tax)....
61Omit section 352 (certificates of deduction of tax).
62(1) Amend section 353 (relief for payments of interest: general)...
63Omit section 359 (loan to buy machinery or plant).
64Omit section 360 (loan to buy interest in close company)....
65Omit section 360A (meaning of “material interest” in section 360)....
66Omit section 361 (loan to buy interest in co-operative or...
67Omit section 362 (loan to buy into partnership).
68Omit section 363 (provisions supplementary to sections 360 to 362)....
69Omit section 364 (loan to pay inheritance tax).
70In section 366(1)(c) (information) omit the words from “(or” to...
71In section 367 (provisions supplementary to sections 354 to 366)...
72Omit section 368 (exclusion of double relief etc).
73Omit Chapter 1 of Part 10 (loss relief: income tax)....
74(1) Amend section 397 (restriction of relief in case of...
75(1) Amend section 398 (transactions in deposits with and without...
76(1) Amend section 399 (dealings in commodity futures etc :...
77In section 414(1) (close companies) for “Tax Acts” substitute “...
78Minor and consequential amendments
79In section 459 (exemption for unregistered friendly societies) omit “income...
80In section 460(1) (exemption for registered friendly societies: life or...
81(1) Section 461 (exemption for registered friendly societies: other business)...
82(1) Amend section 461B (exemption for qualifying incorporated friendly societies:...
83Minor and consequential amendments
84(1) Amend section 467(1) (exemption for trade unions and employers'...
85Minor and consequential amendments
86Minor and consequential amendments
87Minor and consequential amendments
88(1) Amend section 477A (building societies: regulations for deduction of...
89Omit sections 480A to 482 (deduction of tax by deposit-takers)....
90(1) Amend section 486 (industrial and provident societies and co-operative...
91Minor and consequential amendments
92(1) Amend section 492 (treatment of oil extraction activities etc...
93Omit section 504A (letting of furnished holiday accommodation treated as...
94Minor and consequential amendments
95Minor and consequential amendments
96Minor and consequential amendments
97Minor and consequential amendments
98Minor and consequential amendments
99Minor and consequential amendments
100Minor and consequential amendments
101(1) Amend section 510A (tax treatment of European Economic Interest...
102Omit section 515 (exemption for signatories to Operating Agreement for...
103Omit section 516 (Government securities held by non-resident central banks)....
104Minor and consequential amendments
105Minor and consequential amendments
106Minor and consequential amendments
107Minor and consequential amendments
108(1) Amend section 527 (spreading of royalties over several years)...
109Minor and consequential amendments
110Omit sections 536 (taxation of royalties where owner abroad), 537...
111Minor and consequential amendments
112Minor and consequential amendments
113Omit section 555 (entertainers and sportsmen: payment of tax).
114Minor and consequential amendments
115In section 558 (supplementary provisions) omit subsections (1) to (4)....
116In section 571 (schemes for rationalising industry: cancellation of certificates)...
117(1) Amend section 573 (relief for companies) as follows.
118Omit section 574 (share loss relief for individuals).
119Minor and consequential amendments
120Minor and consequential amendments
121Minor and consequential amendments
122Minor and consequential amendments
123Minor and consequential amendments
124Minor and consequential amendments
125Minor and consequential amendments
126Minor and consequential amendments
127Minor and consequential amendments
128Minor and consequential amendments
129Minor and consequential amendments
130Minor and consequential amendments
131Minor and consequential amendments
132Minor and consequential amendments
133Omit section 581A (interest on foreign currency securities etc).
134Minor and consequential amendments
135Omit section 582A (designated international organisations: miscellaneous exemptions).
136Omit section 587A (new issues of securities: extra return).
137Minor and consequential amendments
138Minor and consequential amendments
139Minor and consequential amendments
140In section 615(3) (exemption from tax in respect of certain...
141Minor and consequential amendments
142In section 658(4)(b) (supplementary) omit “(notwithstanding anything in section 348)”....
143In section 659E(1) (treatment of income from property investment LLPs)...
144Omit section 660C(3) (nature of charge on settlor).
145Omit sections 685A to 687 (liability of trustees).
146(1) Amend section 687A (discretionary payments made by trustees to...
147Omit section 689A (disregard of trustees' expenses where beneficiary non-UK...
148(1) Amend section 689B (order in which trustees' expenses are...
149Omit sections 690 to 694.
150Omit section 698A.
151Minor and consequential amendments
152Minor and consequential amendments
153Minor and consequential amendments
154Minor and consequential amendments
155Minor and consequential amendments
156Minor and consequential amendments
157Minor and consequential amendments
158Minor and consequential amendments
159Minor and consequential amendments
160Minor and consequential amendments
161(1) Amend section 709 (meaning of “tax advantage” and other...
162Omit sections 710 to 727A (accrued income scheme).
163Minor and consequential amendments
164Minor and consequential amendments
165Minor and consequential amendments
166Minor and consequential amendments
167Minor and consequential amendments
168Minor and consequential amendments
169Minor and consequential amendments
170Minor and consequential amendments
171(1) Amend section 736B (deemed manufactured payments in the case...
172Minor and consequential amendments
173Minor and consequential amendments
174Minor and consequential amendments
175Minor and consequential amendments
176(1) Amend section 737E (power to modify sections 727A, 730A,...
177Omit sections 739 to 746 (transfer of assets abroad).
178In section 747(4) (imputation of chargeable profits and creditable tax...
179Minor and consequential amendments
180Minor and consequential amendments
181Minor and consequential amendments
182Omit section 775 (sale by individual of income derived from...
183Minor and consequential amendments
184Minor and consequential amendments
185Minor and consequential amendments
186Minor and consequential amendments
187Minor and consequential amendments
188Minor and consequential amendments
189Minor and consequential amendments
190Minor and consequential amendments
191Minor and consequential amendments
192In section 793 (reduction of United Kingdom taxes by amount...
193(1) Amend section 796 (limits on credit for foreign tax:...
194In section 798C (disallowed credit: use as deduction) for subsection...
195In section 801A (restriction of relief for underlying tax) for...
196In section 803(10) (underlying tax reflecting interest on loans) for...
197(1) Amend section 804 (relief against income tax in respect...
198(1) Amend section 807 (sale of securities with or without...
199In section 809(1)(a) (relief in respect of discretionary trusts) for...
200In section 811(2) (deduction for foreign tax where no credit...
201In section 812(5) (withdrawal of right to tax credit of...
202In section 816 (disclosure of information)— (a) in subsection (3)...
203Omit section 818 (arrangements for payments of interest less tax...
204Omit section 819 (old references to standard rate tax).
205In section 821(3) (under-deductions from payments made before passing of...
206Omit section 823 (adjustments of reliefs where given at different...
207Omit section 827A (territorial scope of charges under certain provisions...
208(1) Amend section 828 (orders and regulations made by the...
209Omit section 829 (application of Income Tax Acts to public...
210In section 830(1) (territorial sea) omit “income tax and”.
211In section 831(3) (interpretation of ICTA) after the definition of...
212(1) Amend section 832 (interpretation of the Tax Acts) as...
213Omit section 833 (interpretation of the Income Tax Acts).
214In section 834(1) (interpretation of the Corporation Tax Acts), at...
215Omit section 835 (“total income” in the Income Tax Acts)....
216Omit section 836 (returns of total income).
217Omit section 836B (table of provisions to which that section...
218Omit section 837 (“annual value” of land).
219(1) Amend section 837A (meaning of “research and development”) as...
220In section 837B(1) (meaning of “oil and gas exploration and...
221In section 837C(1) and (5) (meaning of “offshore installation”) for...
222In section 838(1) (subsidiaries) for “Tax Acts” substitute “ Corporation...
223(1) Amend section 839 (connected persons) as follows.
224In section 840 (meaning of “control” in certain contexts) for...
225After section 840 insert— Meaning of “tax advantage” (1) In any provision of the Corporation Tax Acts in...
226In section 840A(1) (banks)— (a) after “In any provision” insert...
227Minor and consequential amendments
228In section 842(1) (investment trusts) for “Tax Acts” substitute “...
229Omit section 842AA (venture capital trusts).
230In section 842A(1) (meaning of “local authority”) for “Tax Acts”...
231(1) Amend section 842B (meaning of “ investment LLP ”...
232(1) Amend Schedule 14 (provisions ancillary to section 266) as...
233In Part 1 of Schedule 15 (qualifying policies for the...
234Omit Part 1 of Schedule 15B (venture capital trusts: relief...
235Omit Schedule 16 (collection of income tax on company payments)....
236In paragraph 2(b) of Schedule 19B (petroleum extraction activities: exploration...
237(1) Amend Schedule 20 (charities: qualifying investments and loans) as...
238(1) Amend Schedule 23A (manufactured dividends and interest) as follows....
239In Schedule 28AA (provision not at arm's length) in paragraph...
240Omit Schedule 28B (venture capital trusts: meaning of “qualifying holding”)....
Part 2Other enactments
Chevening Estate Act 1959 (c. 49)
241In section 2(1A)(a) of the Chevening Estate Act 1959 (provisions...
Taxes Management Act 1970 (c. 9)
242The Taxes Management Act 1970 is amended as follows.
243Minor and consequential amendments
244Minor and consequential amendments
245(1) Amend section 12AB(1) (partnership return to include partnership statement)...
246In section 12B(4A)(a) (records to be kept for purposes of...
247(1) Amend section 17 (interest paid or credited by banks...
248In section 21(5A) (transactions in securities etc) for “Schedule 23A...
249In section 24(3A) (power to obtain information as to income...
250Minor and consequential amendments
251In section 36(3A) (fraudulent or negligent conduct)—
252(1) Amend section 37A (effect of assessment where allowances transferred)...
253In section 42(7) (procedure for making claims etc)—
254In section 43A(2A) (further assessments: claims etc)—
255Minor and consequential amendments
256Minor and consequential amendments
257In section 55(1) (recovery of tax not postponed)—
258For section 87 (interest on income tax on company payments)...
259Minor and consequential amendments
260(1) Amend section 98 (special returns etc) as follows.
261In section 99A (certificates of non-liability to income tax) for...
262After section 99A insert— Declarations under Chapter 2 of Part...
263In section 118(1) (interpretation)— (a) in the definition of “company”...
264In paragraph 9(2) of Schedule 1A (claims etc not included...
Finance Act 1971 (c. 68)
265Omit section 21 of, and Schedule 3 to, the Finance...
Biological Standards Act 1975 (c. 4)
266In section 2(4A)(a) of the Biological Standards Act 1975 (general...
House of Commons Disqualification Act 1975 (c. 24)
267Minor and consequential amendments
Inheritance Tax Act 1984 (c. 51)
268The Inheritance Tax Act 1984 is amended as follows.
269In section 157(6) (non-residents' bank accounts) for “section 840A of...
270In section 204(5) (limitation of liability) for “section 739 or...
271In section 272 (general interpretation) in the definition of “authorised...
Administration of Justice Act 1985 (c. 61)
272In paragraph 36(3) of Schedule 2 to the Administration of...
Building Societies Act 1986 (c. 53)
273In section 8(9) of the Building Societies Act 1986 (raising...
Finance Act 1988 (c. 39)
274The Finance Act 1988 is amended as follows.
275(1) Amend section 130 (provisions for securing payment by company...
276In Schedule 6 (commercial woodlands) omit paragraph 3(3) to (5)....
277In paragraph 6(1)(b) of Schedule 12 (building societies: change of...
Finance Act 1989 (c. 26)
278The Finance Act 1989 is amended as follows.
279Minor and consequential amendments
280In section 111 (residence of personal representatives)—
281(1) Amend section 151 (assessment of trustees and personal representatives)...
282In section 182(3) (disclosure of information) at the end of...
283(1) Amend Schedule 5 (employee share ownership trusts) as follows....
Finance Act 1990 (c. 29)
284(1) Amend section 25 of the Finance Act 1990 (c....
Finance Act 1991 (c. 31)
285The Finance Act 1991 (c. 31) is amended as follows....
286Omit section 53 (Income Tax (Building Society) Regulations 1986).
287Omit section 72 (deduction of trading losses).
Social Security Contributions and Benefits Act 1992 (c. 4)
288The Social Security Contributions and Benefits Act 1992 (c. 4)...
289In section 4A(3)(i)(i) (earnings of workers supplied by service companies...
290(1) Amend Schedule 2 (levy of Class 4 contributions with...
Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)
291The Social Security Contributions and Benefits (Northern Ireland) Act 1992...
292In section 4A(3)(i)(i) (earnings of workers supplied by service companies...
293(1) Amend Schedule 2 (Schedule 2 to the Social Security...
Taxation of Chargeable Gains Act 1992 (c. 12)
294The Taxation of Chargeable Gains Act 1992 is amended as...
295Minor and consequential amendments
296Minor and consequential amendments
297For section 11 (visiting forces, agents-general etc) substitute— Visiting forces...
298In section 16(1) (computation of losses) for “section 72 of...
299In section 37 (consideration chargeable to tax on income) at...
300In section 39 (exclusion of expenditure by reference to tax...
301Minor and consequential amendments
302. . . . . . . . . ....
303In section 98(2) (power to obtain information for purposes of...
304In section 101B(1)(a) (transfer of a company's assets to VCT),...
305In section 101C(7) (transfer within group to VCT), for “section...
306(1) Amend section 105A (shares acquired on the same day:...
307In section 108(1)(a) (identification of relevant securities) for “section 710...
308(1) Amend section 119 (transfer of securities subject to the...
309After section 125 insert— Share loss relief Effect of share...
310In section 148C(1) (deemed disposals at a loss under section...
311(1) Amend section 150A (enterprise investment schemes) as follows.
312(1) Amend section 150B (enterprise investment scheme: reduction of relief)...
313Minor and consequential amendments
314In section 151A(7) (venture capital trusts: reliefs) for “the meaning...
315(1) Amend section 151B (VCTs: supplementary) as follows.
316After section 151B insert— CITR: identification of securities or shares...
317After section 151BA insert— CITR: rights issues etc (1) If— (a) an individual or company (“the investor”) holds...
318After section 151BB insert— CITR: company reconstructions etc (1) If— (a) an individual or company (“the investor”) holds...
319In section 151C(5) (strips: manipulation of price: associated payment giving...
320In section 151D(5) (corporate strips: manipulation of price: associated payment...
321In section 161 (stock in trade: appropriations to and from...
322In section 169D(1) (gifts to settlor-interested settlements: exceptions) for “691(2)...
323In section 226B(1) (private residence relief: special cases) for “691(2)...
324In section 231(1) and (3) (shares: special provision) after “Taxes...
325In section 241(3)(a) (furnished holiday lettings) for the words from...
326(1) Amend section 256 (charities) as follows.
327After section 256 insert— Attributing gains to the non-exempt amount...
328In section 257 (gifts to charities etc) after subsection (2)...
329After section 261A insert— Deduction of trading losses or post-cessation...
330After section 261E insert— Repurchase price under repos Deemed manufactured...
331After section 261F insert— Price differences under repos: effect on...
332After section 261G insert— Power to modify section 261G in...
333(1) Amend section 263ZA (former employees: employment-related liabilities) as follows....
334Minor and consequential amendments
335(1) Amend section 263D (gains accruing to persons paying manufactured...
336After section 263E insert— Power to modify repo provisions: non-standard...
337After section 263F insert— Power to modify repo provisions: redemption...
338After section 263G insert— Sections 263F and 263G: supplementary provisions...
339After section 263H insert— Powers about manufactured overseas dividends (1) The Treasury may by regulations make provision as mentioned...
340(1) Amend section 271 (miscellaneous exemptions) as follows.
341After section 285 insert— European Economic Interest Groupings (1) The following rules about European Economic Interest Groupings apply...
342(1) Amend section 288 (interpretation) as follows.
343Minor and consequential amendments
344In paragraph 14 of Schedule 4A (deemed disposal of underlying...
345(1) Amend Schedule 5B (enterprise investment scheme: re-investment) as follows....
346In paragraph 1(1)(a) of Schedule 5BA (enterprise investment scheme: application...
347In paragraph 3(1)(f) of Schedule 5C (VCTs: deferred charge on...
348(1) Amend Schedule 7C (reliefs for transfers to approved share...
349In Schedule 8 (leases), in paragraph 5(6) for “any amount...
Finance (No. 2) Act 1992 (c. 48)
350In section 28(1)(a) of the Finance (No. 2) Act 1992...
Tribunals and Inquiries Act 1992 (c. 53)
351Minor and consequential amendments
Judicial Pensions and Retirement Act 1993 (c. 8)
352In section 3(6) of the Judicial Pensions and Retirement Act...
Charities Act 1993 (c. 10)
353In section 25A(1) and (2) of the Charities Act 1993...
Finance Act 1993 (c. 34)
354The Finance Act 1993 is amended as follows.
355Omit section 80 (transitional relief for charities etc).
356Omit section 118 (Scottish trusts).
357(1) Amend section 176 (ancillary trust funds) as follows.
358(1) Amend section 180 (underwriting profits to be earned income)...
359In section 182(1)(ca)(ii) (Lloyd's underwriters: regulations) for the words from...
360In section 212 (interpretation) at the end insert “ ,...
361(1) Amend Schedule 20A (Lloyd's underwriters: conversion to limited liability...
Agriculture Act 1993 (c. 37)
362In paragraph 22(2) of Schedule 2 to the Agriculture Act...
Finance Act 1994 (c. 9)
363(1) Amend paragraph 11 of Schedule 20 to the Finance...
Finance Act 1995 (c. 4)
364The Finance Act 1995 is amended as follows.
365Omit section 73 (venture capital trusts: regulations).
366Omit section 90 (relief for post-cessation expenditure).
367(1) Amend section 127 (persons not treated as UK representatives)...
368Omit section 128 (limit on income chargeable on non-residents: income...
369(1) Amend section 154 (short rotation coppice) as follows.
370(1) Amend Schedule 22 (prevention of exploitation of Schedule 2...
Finance Act 1996 (c. 8)
371Minor and consequential amendments
372Minor and consequential amendments
373Minor and consequential amendments
374Minor and consequential amendments
375Minor and consequential amendments
376Minor and consequential amendments
Finance (No.2) Act 1997 (c. 58)
377The Finance (No.2) Act 1997 is amended as follows.
378Omit section 29 (unauthorised unit trusts).
379In section 35(3)(a) (transitional relief for charities etc ) for...
Finance Act 1998 (c. 36)
380The Finance Act 1998 is amended as follows.
381In section 56(4) (transitional provision in connection with section 55...
382In section 134(5) (transfer of company's assets to VCT) for...
383In section 135(5) (transfer within group to VCT) for “section...
384In section 161(2)(a) (non-FOTRA securities) for the words from “sections...
385(1) Amend Schedule 18 (company tax returns, assessments and related...
Greater London Authority Act 1999 (c. 29)
386The Greater London Authority Act 1999 is amended as follows....
387In section 157(4) (restriction on exercise of certain powers except...
388In section 419(2) (taxation: certain bodies treated as a local...
Finance Act 2000 (c. 17)
389The Finance Act 2000 is amended as follows.
390In section 38(4) (payroll deduction scheme) in the definition of...
391In section 44 (which makes provision about expenses of trustees)...
392(1) Amend section 46 (exemption for small trades etc )...
393In section 155 (interpretation) at the end insert “ and...
394(1) Amend Schedule 15 (the corporate venturing scheme) as follows....
395In paragraph 41 of Schedule 22 (tonnage tax: the requirement...
Capital Allowances Act 2001 (c. 2)
396The Capital Allowances Act 2001 is amended as follows.
397(1) Amend section 4 (capital expenditure) as follows.
398In section 70V(4) (tax avoidance involving international leasing) for “Chapter...
399Omit section 70YI(4) (application of section 839 of ICTA).
400In section 138(2)(b) (limit on amount deferred) for “section 385...
401In section 156(1)(a) and (c) (connected persons) for “section 839...
402In section 220(8)(a) (allocation of expenditure to a chargeable period)...
403In section 232(1)(a) (meaning of connected person) for “section 839...
404In section 258 (special leasing: income tax) after subsection (3)...
405In section 266(5)(a) (election where predecessor and successor are connected...
406Minor and consequential amendments
407In section 437 (research and development allowances) for subsection (2)...
408In section 479 (persons having qualifying non-trade expenditure: income tax)...
409At the beginning of Chapter 6 of Part 12 insert—...
410In section 574(1) at the end insert “(but, for the...
411For section 575 (connected persons) substitute— Meaning of “connected” persons...
412In section 577(1) (other definitions)— (a) omit the definition of...
413(1) Amend Schedule 1 (abbreviations and defined expressions) as follows....
Finance Act 2002 (c. 23)
414The Finance Act 2002 is amended as follows.
415Omit section 98.
416In section 142 (interpretation) at the end insert “, and...
417In paragraph 19 of Schedule 12 (tax relief for expenditure...
418In paragraph 27 of Schedule 13 (tax relief for expenditure...
419(1) Amend Schedule 16 (community investment tax relief) as follows....
420(1) Amend Schedule 18 (relief for community amateur sports clubs)...
421In Schedule 25 (loan relationships), omit paragraph 57.
422Minor and consequential amendments
423Omit Schedule 33 (venture capital trusts).
Proceeds of Crime Act 2002 (c. 29)
424In paragraph 4 of Part 2 of Schedule 10 (tax)...
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
425The Income Tax (Earnings and Pensions) Act 2003 is amended...
426In section 1 (overview of contents of Act) omit subsection...
427In section 11(3) (calculation of “net taxable earnings”) for “section...
428In section 24(6)(a) (limit on chargeable overseas earnings where duties...
429In section 48(2) (scope of Chapter) for “subject to deduction...
430In section 69(1) (extended meaning of “control”) for “section 840...
431In section 178 (exception for loans where interest qualifies for...
432In section 180(5) (threshold for benefit of loan to be...
433In section 230(5)(a) (the approved amount for mileage allowance payments)...
434In section 329(6) (deductions from earnings not to exceed earnings)...
435In section 347(2) (payments made after leaving an employment) for...
436In section 357(2) after “section 505(1)(e) of ICTA” insert “...
437After section 404 insert— Amounts charged to be treated as...
438In section 476 (charge on occurrence of chargeable event) after...
439(1) Amend section 515 (tax advantages and charges relating to...
440(1) Amend section 555 (deduction for liabilities related to former...
441In section 609(1) after “section 273 of ICTA” insert “...
442In section 718 (connected persons) for “Section 839 of ICTA”...
443In section 719 (control in relation to a body corporate)—...
444(1) Amend section 721 (other definitions) as follows.
445In Part 1 of Schedule 1 (abbreviations) in the appropriate...
446(1) Amend Part 2 of Schedule 1 (defined expressions) as...
447(1) Amend Schedule 2 (approved share incentive plans) as follows....
448In paragraph 49 of Schedule 3 (approved SAYE Option Schemes)—...
449In paragraph 37 of Schedule 4 (approved CSOP Schemes)—
450(1) Amend Schedule 5 (enterprise management incentives) as follows.
Finance Act 2003 (c. 14)
451The Finance Act 2003 is amended as follows.
452Omit section 151 (non-resident companies: extent of charge to income...
453In section 152 (non-resident companies: transactions carried out through broker,...
454In section 153(2)(a) (general replacement of references to branch or...
455In paragraph 1(2) of Schedule 26 (non-resident companies: transactions through...
Finance Act 2004 (c. 12)
456The Finance Act 2004 is amended as follows.
457In section 50 (generally accepted accounting practice) for “the Tax...
458In section 51 (use of different accounting practices within a...
459In section 59 (construction industry scheme: contractors) after subsection (7)...
460In section 65 (change in control of company registered for...
461After section 73 (regulations under this Chapter: supplementary) insert— Designated...
462(1) Amend section 83 (giving through the self-assessment return) as...
463Omit sections 101 (payment of royalties without deduction at source)...
464Omit sections 119 to 123 (individuals benefited by film relief)....
465Omit sections 126 to 130 (individuals in partnership: exit charge)....
466In section 155(6)(a) and (b) (persons by whom scheme may...
467In section 161 (meaning of “payment” etc) for subsection (8)...
468(1) Amend section 162 (meaning of “loan”) as follows.
469In section 172A (surrender) for subsection (11) substitute—
470In section 172B (increase in rights of connected person on...
471In section 172C (allocation of unallocated employer contributions) for subsection...
472In section 172D (limit on increase in benefits) for subsection...
473(1) Amend section 189 (relevant UK individual) as follows.
474In section 192 (relief at source) omit subsection (5).
475In section 193(6) (relief under net pay arrangements)—
476In section 194(1) (relief on making of claim)—
477In section 266A (member's liability) for subsection (7) substitute—
478In section 273 (members liable as scheme administrator) for subsection...
479In section 278 (market value) for subsection (4) substitute—
480(1) Amend section 279 (other definitions) as follows.
481(1) Amend section 280 (abbreviations and general index) as follows....
482(1) Amend Schedule 15 (charge to income tax on benefits...
483In paragraph 4 of Schedule 27 (meaning of “offshore installation”)...
484In paragraph 4 of Schedule 29A (investment-regulated pension schemes) for...
485In paragraph 11D of Schedule 36 (transitional provisions) for sub-paragraph...
Pensions Act 2004 (c. 35)
486The Pensions Act 2004 is amended as follows.
487In Schedule 3 (restricted information held by the Regulator: certain...
488In Schedule 8 (restricted information held by the Board: certain...
Constitutional Reform Act 2005 (c. 4)
489The Constitutional Reform Act 2005 is amended as follows.
490In paragraph 4 of Schedule 7 (protected functions of the...
491In the table in Part 3 of Schedule 14 (appointments...
Income Tax (Trading and Other Income) Act 2005 (c. 5)
492The Income Tax (Trading and Other Income) Act 2005 is...
493In section 1 (overview of Act) omit subsection (2).
494In section 12(3) (profits of mines etc) for “Chapter 1...
495(1) Amend section 13 (visiting performers) as follows.
496In section 17(3) (effect of becoming or ceasing to be...
497Omit section 51 (patent royalties).
498(1) Amend section 52 (exclusion of double relief for interest)...
499In section 87(5) (expenses of research and development) for “section...
500In section 108(4) (gifts of trading stock etc to charities)...
501In section 179(a) (connected persons) for “section 839 of ICTA”...
502(1) Amend section 232 (treatment of trading adjustment income) as...
503In section 248(3) (debts paid after cessation)—
504(1) Amend section 250 (receipts relating to post-cessation expenditure) as...
505In section 254(3)(b) (allowable deductions) for “section 90(4) of FA...
506(1) Amend section 256 (treatment of post-cessation receipts) as follows....
507In section 272(2) (profits of a property business: application of...
508In section 322(2) (commercial letting of furnished holiday accommodation)—
509In section 327(2)(b) (capital allowances and loss relief) for “Chapter...
510(1) Amend section 328 (earned income and relevant UK earnings...
511In section 333(3) (treatment of property business adjustment income) for...
512In section 354(2) (other rules about what counts as a...
513In section 369(4) (charge to tax on interest) for the...
514In section 372(2) (building society dividends) for the words from...
515(1) Amend section 397 (tax credits for qualifying distributions: UK...
516(1) Amend section 399 (qualifying distributions received by persons not...
517(1) Amend section 400 (non-qualifying distributions) as follows.
518In section 401 (relief: qualifying distribution after linked non-qualifying distribution)...
519In section 410(3)(b) (stock dividend income arising to trustees) for...
520(1) Amend section 414 (stock dividends from UK resident companies:...
521In section 418(5) (loans to participator in close company: relief...
522In section 421(4) (loans to participator in close company: income...
523(1) Amend section 426 (annuity payments received after deduction of...
524In section 446 (strips of government securities: relief for losses)...
525In section 454 (listed securities held since 26th March 2003:...
526(1) Amend section 457 (disposal of deeply discounted securities by...
527In section 459(2) (profits from deeply discounted securities: transfer of...
528In section 460(2) (profits from deeply discounted securities: minor definitions)...
529After section 465 insert— Amounts for which individuals liable to...
530Minor and consequential amendments
531(1) Amend section 467 (liability of trustees for tax on...
532In section 468 (gains from contracts for life insurance etc:...
533In section 482 (excepted group life policies: conditions about persons...
534In section 520(4) (the property categories) after the definition of...
535(1) Amend section 530 (income tax treated as paid) as...
536(1) Amend section 535 (top slicing relief) as follows.
537Minor and consequential amendments
538Minor and consequential amendments
539For section 539 (relief for deficiencies) substitute— Relief for deficiencies...
540In section 546(4) (table of provisions subject to special rules...
541. . . . . . . . . ....
542For section 550 substitute— Income tax treated as paid In accordance with section 848 of ITA 2007, a sum...
543In section 567(2) (disposals of futures and options involving guaranteed...
544In section 569(2) (disposal of futures and options involving guaranteed...
545Minor and consequential amendments
546(1) Amend section 595 (deduction of tax from payments to...
547In section 601 (how relief for patent expenses is given)...
548(1) Amend section 602 (payments received after deduction of tax)...
549(1) Amend section 618 (payments received after deduction of tax)...
550In section 619(2) (charge to tax on settlor)—
551After section 619 insert— Income treated as highest part of...
552In section 620(5) (which contains various definitions) in the definition...
553In section 624 (income where settlor retains an interest in...
554In section 627(2) (income where settlor retains an interest: exceptions),...
555(1) Amend section 628 (exception for gifts to charities) as...
556In section 631(7) (retained and accumulated income) for “the total...
557In section 635(3)(d) (settlements: amounts treated as income of settlor:...
558(1) Amend section 636 (calculation of undistributed income) as follows....
559In section 640(1) and (3)(a) (settlements: amounts treated as income...
560After section 646 insert— Trustees' expenses to be rateably apportioned...
561In section 669(3)(a) (reduction in residuary income: inheritance tax on...
562In section 677 (relief where UK income tax borne by...
563In section 678 (relief where UK income tax borne by...
564Minor and consequential amendments
565Minor and consequential amendments
566After section 680 insert— Income treated as savings income or...
567In section 682 (assessments, adjustments and claims after the administration...
568In section 684(3) (Chapter 7 of Part 5 subject to...
569(1) Amend section 685A (discretionary payments under settlor-interested settlements) as...
570(1) Amend section 686 (payments received after deduction of tax)...
571In section 704(4)(a) (types of arrangements and providers) for “section...
572In section 714(6) (exemption of profits from FOTRA securities) for...
573In section 724 (regulations) omit subsection (3).
574In section 755(3) (exemption of interest on foreign currency securities...
575In section 756A(5) (interest on certain deposits of victims of...
576In section 757 (interest and royalty payments: introduction) at the...
577In section 767(2) (power to amend references to the Directive...
578In section 841 (unremittable income: introduction) for subsection (5) substitute—...
579In section 852(7) (carrying on by partner of notional trade)...
580In section 863(2) (limited liability partnerships)— (a) in paragraph (a)...
581In section 871 (apportionment etc of miscellaneous profits to tax...
582In section 872(3)(a) (losses calculated on same basis as miscellaneous...
583Omit section 876 (meaning of “farming” and related expressions).
584Omit section 877 (meaning of “grossing up”).
585(1) Amend section 878 (other definitions) as follows.
586In section 879 (interpretation: Scotland)— (a) in subsection (1) omit...
587In section 885(3)(c) (general index in Schedule 4) for “ICTA...
588In Schedule 2 (transitionals and savings etc) omit paragraph 50(3)....
589(1) Amend paragraph 82 of Schedule 2 (transitionals and savings...
590In paragraph 109(4) of Schedule 2 (transitional provision: contracts in...
591In Part 1 of Schedule 4 (abbreviations) in the appropriate...
592(1) Amend Part 2 of Schedule 4 (index of defined...
Finance Act 2005 (c. 7)
593The Finance Act 2005 is amended as follows.
594In section 26 (amount of relief for trustees of property...
595(1) Amend section 27 (tax liability of trustees of property...
596In section 41(1) (interpretation of Chapter 4 of Part 2)...
597(1) Amend section 47A (alternative finance arrangements: diminishing share ownership)...
598In section 51(2) (treatment of alternative finance arrangements)—
599(1) Amend section 52 (alternative finance arrangements: provision not at...
600Omit sections 74 to 78 (partners: recovery of excess relief)....
601In section 105 (interpretation) after the definition of “IHTA 1984”...
602(1) Amend Schedule 2 (alternative finance arrangements: further provisions) as...
Finance (No. 2) Act 2005 (c. 22)
603The Finance (No. 2) Act 2005 is amended as follows....
604(1) Amend section 7 (charge to income tax on social...
605In section 18(3)(b)(i) (authorised investment funds etc: section 17(3): specific...
606In section 71 (interpretation) after the definition of “ICTA” insert—...
Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))
607The Pensions (Northern Ireland) Order 2005 is amended as follows....
608In Schedule 3 (restricted information held by the Regulator: certain...
609In Schedule 7 (restricted information held by the Board: certain...
Finance Act 2006 (c. 25)
610The Finance Act 2006 is amended as follows.
611In section 34 (meaning of certain expressions for the purposes...
612In section 65(3) (London Organising Committee) for “Section 349(1) of...
613In section 67 (International Olympic Committee)— (a) in subsection (1)(c),...
614In section 68(1)(d) (competitors and staff) for “section 349(1) of...
615Omit section 75 (tax avoidance: interest relief and film partnerships)....
616In section 103(1)(b) (Real Estate Investment Trusts) for “, 121...
617Minor and consequential amendments
618In section 117(4) (cancellation of tax advantage) for “section 709”...
619In section 121(2)(c) (distributions: liability to tax) for “chargeable to...
620Omit section 122 (distributions: deduction of tax).
621(1) Amend section 139 (manufactured dividends) as follows.
622In section 179 (interpretation) after the definition of “IHTA 1984”...
623In Schedule 5 (film tax relief: further provisions) in paragraph...
624In paragraph 27(1) of Schedule 8 (long funding leases of...
625In Schedule 13 (settlements) omit paragraph 37.
626(1) Amend Schedule 17 (Group Real Estate Investment Trusts: modifications)...
Part 3Amendment having effect in relation to shares issued after 5 April 2007
Income and Corporation Taxes Act 1988 (c. 1)
627Omit Chapter 3 of Part 7 of the Income and...
SCHEDULE 2Transitionals and savings
Part 1General provisions
Continuity of the law: general
1The repeal of provisions and their enactment in a rewritten...
2Paragraph does not apply to any change made by this...
3Any subordinate legislation or other thing which—
4(1) Any reference (express or implied) in this Act, another...
5(1) Any reference (express or implied) in any enactment, instrument...
6(1) Paragraphs 1 to 5 have effect instead of section...
General saving for old transitional provisions and savings
7(1) The repeal by this Act of a transitional or...
Partnerships involving companies
8(1) References in this Act to any person are to...
Interpretation
9(1) In this Part— “enactment” includes subordinate legislation (within the...
Part 2Changes in the law
10(1) This paragraph applies if, in the case of any...
Part 3Rates at which income tax is charged
11In relation to a tax year before 2007-08—
12In relation to the tax year 2007-08 or any subsequent...
13In this Part “enactment” includes subordinate legislation (within the meaning...
Part 4Personal reliefs
14Transitionals and savings
15Transitionals and savings
16Transitionals and savings
17Transitionals and savings
Part 5Losses (except losses on disposal of shares)
General: carry forward loss reliefs
18(1) The repeal by this Act of the superseded carry...
Trade loss relief against general income
19(1) This paragraph applies for the purposes of section 64...
20(1) This paragraph applies if— (a) a person makes a...
Early trade losses relief
21(1) This paragraph applies for the purposes of section 72...
22(1) This paragraph applies if— (a) a person makes a...
Sideways relief: trade leasing allowances given to individuals
23(1) This paragraph applies if— (a) a person makes a...
Sideways relief: dealings in commodity futures
24Section 81 does not apply if the arrangements mentioned in...
Terminal trade loss relief
25(1) This paragraph applies for the purposes of section 89...
Post-cessation trade loss relief and post-cessation property relief
26The events covered by section 98(5) (including as applied by...
Reliefs for limited partners not to exceed contribution to the firm
27(1) The relief covered by section 104(5) includes—
Reliefs for members of LLPs not to exceed contribution to the LLP
28(1) The relief covered by section 107(6) includes—
Members of LLPs: carry-forward of losses
29(1) The amounts of loss covered by section 109(1)(b) include...
Reliefs for non-active partners not to exceed contribution to the firm
30(1) The relief covered by section 110(5) includes—
Non-active partners: carry-forward of losses
31(1) The amounts of loss covered by section 113(1)(b) include...
Restriction on reliefs for non-active partners: pre-10 February 2004 events
32In Chapter 3 of Part 4 any reference to an...
33(1) Sub-paragraphs (2) to (9) set out relief which is...
Regulations under section 114
34(1) The provision which may be made in regulations under...
Application of existing regulations under sections 114 and 802
35(1) After the commencement of sections 114 and 802, the...
Losses in an employment or office
36(1) This paragraph applies for the purposes of section 128...
Loss relief against miscellaneous income: Case VI losses
37(1) This paragraph applies if a person makes a loss...
Part 6Losses on disposal of shares
Qualifying trading companies
38(1) In relation to shares issued before 17 March 2004,...
Disposals of new shares
39(1) In relation to new shares issued before 6 April...
The trading requirement
40(1) In relation to shares issued before 6 April 2007,...
Ceasing to meet trading requirement because of administration or receivership
41(1) In relation to shares issued before 17 March 2004,...
The control and independence requirement
42(1) In relation to shares issued before 6 April 2007,...
The qualifying subsidiaries requirement
43(1) Section 140 does not apply in relation to shares...
The property managing subsidiaries requirement
44(1) Section 141 does not apply in relation to shares...
The gross assets requirement
45(1) In relation to shares issued before 6 April 2006,...
The unquoted status requirement
46(1) In relation to shares issued before 7 March 2001,...
Power to amend requirements by Treasury order
47(1) Section 144 does not apply in relation to shares...
Relief after an exchange of shares for shares in another company
48(1) In relation to new shares issued before 6 April...
Substitution of new shares for old shares
49(1) Section 146 does not apply in relation to shares...
Interpretation of Chapter
50(1) In relation to shares issued before 6 April 1998,...
Meaning of “qualifying subsidiary”
51(1) In relation to shares issued before 17 March 2004,...
Meaning of “excluded activities”
52(1) In relation to shares issued before 7 March 2001,...
Excluded activities: wholesale and retail distribution
53(1) In relation to shares issued before 6 April 2007,...
Excluded activities: leasing of ships
54(1) In relation to shares issued before 6 April 2007,...
Excluded activities: receipt of royalties and licence fees
55(1) In relation to shares issued before 6 April 2000,...
Excluded activities: provision of services or facilities for another business
56(1) In relation to shares issued before 6 April 2007,...
Meaning of a company being “in administration”
57(1) Sub-paragraph (2) applies in relation to—
Application in relation to corresponding bonus shares
57A(1) For the purposes of this Part of this Schedule,...
Part 7Enterprise investment scheme
The gross assets requirement
58(1) In relation to shares to which sub-paragraph (2) or...
Part 8Venture capital trusts
Eligibility for relief
59Section 261(4) does not apply in relation to shares acquired...
Form and amount of relief
60(1) In relation to shares issued before 6 April 2006,...
No entitlement to relief if there is a linked loan
61In relation to shares issued before 6 April 2006, section...
Loss of relief if shares disposed of within 5 years
62(1) In relation to shares issued before 6 April 2006—...
Interpretation of Chapter 2
63(1) In relation to shares issued before 6 April 2007,...
The 15% holding limit condition
64In relation to shares or securities issued before 17 April...
Conditions relating to value of investments
65(1) Sub-paragraph (2) applies if any question arises which—
Conditions relating to qualifying holdings and eligible shares: supplementary
66Section 280(3) does not apply in relation to shares issued...
Interpretation of Chapter 3
67Section 285 applies with the omission of subsections (4) to...
The maximum qualifying investment requirement
68For the purpose of determining whether shares or securities are...
The no guaranteed loan requirement
69For the purpose of determining whether shares or securities are...
The proportion of eligible shares requirement
70(1) If at any time the requirement of section 289—...
The trading requirement
71For the purpose of determining whether shares or securities are...
The carrying on of a qualifying activity requirement
72(1) For the purpose of determining whether shares or securities...
Ceasing to meet the requirement because of administration or receivership
73For the purpose of determining whether shares or securities are...
The use of the money raised requirement
74For the purpose of determining whether shares or securities are...
The relevant company to carry on the relevant qualifying activity requirement
75(1) For the purpose of determining whether shares or securities...
The gross assets requirement
76(1) For the purpose of determining whether shares or securities...
The property managing subsidiaries requirement
77For the purpose of determining whether shares or securities are...
Meaning of “qualifying trade”
78For the purpose of determining whether shares or securities are...
Meaning of “qualifying 90% subsidiary”
79For the purpose of determining whether shares or securities are...
Meaning of “qualifying subsidiary”
80For the purpose of determining whether shares or securities are...
Meaning of “excluded activities”
81For the purpose of determining whether shares or securities are...
Excluded activities: wholesale and retail distribution
82For the purpose of determining whether shares or securities are...
Excluded activities: leasing of ships
83(1) For the purpose of determining whether shares or securities...
Excluded activities: receipt of royalties and licence fees
84For the purpose of determining whether shares or securities are...
Excluded activities: provision of services or facilities for another business
85(1) For the purpose of determining whether shares or securities...
Winding up of the relevant company
86For the purpose of determining whether shares or securities are...
Acquisitions for restructuring purposes etc
87Sections 326 to 329 do not apply in relation to...
Power to facilitate company reorganisations
88Section 330 does not apply in relation to exchanges of...
Meaning of a company being “in administration”
89(1) Sub-paragraph (2) applies in relation to—
Meaning of “company”, “shares” and “research and development” in Part 6
90(1) This paragraph applies in relation to the meaning of...
Part 9Other reliefs
Interest: loans for interests in close companies
91Section 392(3)(a) does not apply if the shares were acquired...
92Section 392(3)(b) does not apply if the shares were acquired...
93(1) In relation to a loan made before 14 November...
94Section 395(2) does not apply in relation to a loan...
Interest: loans for interests in employee-controlled companies
95(1) In relation to a loan used before 6 April...
Interest relief: film partnerships
96Section 399(4) (restriction on relief for interest on loans for...
Interest: loans for investing in co-operatives
97Section 401 applies in relation to a loan used in...
Gift aid: gifts of money for relief in poor countries
98Despite the amendments made by this Act to section 25...
Gift aid: restrictions on associated benefits
99(1) This paragraph applies if— (a) a gift is made...
Gift aid: election to carry back relief
100(1) This paragraph applies if in the tax year 2007-08...
Qualifying maintenance payments: maintenance assessments
101(1) This paragraph applies for the purposes for which, on...
Part 10Special rules about settlements and trustees
Trustees' expenses to be set against trustees' trust rate income
102(1) This paragraph applies if the trustees of a settlement...
Share incentive plans: definition of “applicable period”
103(1) This paragraph applies for the purposes of section 489...
Discretionary payments: trustees' tax pool
104(1) Section 497 applies with the following modifications in relation...
Part 11Special rules about charitable trusts etc
Transactions with substantial donors
105Section 543(1)(g) and (h) and sections 549 to 557 (non-charitable...
106For the purposes of section 549 a person may meet...
Non-charitable expenditure
107(1) This paragraph applies if, as a result of sections...
......
...
108. . . . . . . . . ....
109. . . . . . . . . ....
110. . . . . . . . . ....
Deemed manufactured payments: stock lending arrangements
111Section 596 does not apply if the stock lending arrangement...
112. . . . . . . . . ....
113. . . . . . . . . ....
Deemed manufactured payments: repos
114. . . . . . . . . ....
115. . . . . . . . . ....
116. . . . . . . . . ....
117. . . . . . . . . ....
118. . . . . . . . . ....
Price differences under repos
119. . . . . . . . . ....
120. . . . . . . . . ....
121. . . . . . . . . ....
122. . . . . . . . . ....
123. . . . . . . . . ....
Powers to modify repo provisions
124. . . . . . . . . ....
Part 13Accrued income profits
Sale and repurchase arrangements
125(1) Section 655 applies only if— (a) in the case...
126(1) This paragraph applies if the agreement to sell the...
Successive transfers with unrealised interest in default
127Section 661 does not apply if the transferor's acquisition was...
Unrealised interest received by transferee after transfer within Chapter 2 of Part 12
128If the transfer of securities within section 681(1)(a) occurred before...
Part 14Tax avoidance
Transactions in securities: general
129(1) Despite anything in this Act, Chapter 1 of Part...
Transactions in securities: meaning of relevant companies for the purposes of sections 689 and 690
130(1) In its application to a transaction in securities that...
Transactions in securities: statement of case by tribunal for opinion of High Court or Court of Session
131If a tribunal has made a determination under section 705(3)...
Transactions in securities: appeals to House of Lords
132(1) This paragraph applies until paragraph 47 of Schedule 9...
Transfers of assets abroad: non-transferors receiving benefit- exclusion of income arising before 10 March 1981
133(1) Section 732 (non-transferors receiving a benefit as a result...
Transfers of assets abroad: whether trustees are “persons abroad”
134(1) This paragraph deals with whether section 475 (residence of...
135(1) Sub-paragraph (2) deals with whether section 474 (trustees of...
Transfers of assets abroad: whether personal representatives are “persons abroad”
136(1) This paragraph deals with whether section 834 (residence of...
137(1) Sub-paragraph (2) deals with whether section 834 (residence of...
Transfers of assets abroad: company residence for transfers between 20 March 1990 and 29 November 1993
138(1) In relation to transfers and associated operations on or...
Transfers of assets abroad: information powers concerning transfers between 20 March 1990 and 29 November 1993 involving companies
139(1) So far as section 749(6) (restrictions on information to...
Transfers of assets abroad: income arising before 26 November 1996
140Sections 721(5)(b) and (c) and 728(3)(b) and (c) do not...
Transfers of assets abroad: meaning of “associated operation” and consideration of associated operations alone
141(1) In relation to any time before 5 December 2005,...
Individuals in partnership: recovery of excess relief
142In section 792(1)— (a) the reference to the claiming of...
143(1) The losses covered by section 794(1) and (2) in...
Individuals claiming relief for film-related trading losses
144(1) The claims covered by section 797(1)(a) include claims within...
145(1) The losses covered by section 800(3)(a) include losses in...
146In section 801(3) the reference to the making of a...
147(1) In section 802(1) the reference to the making of...
148(1) After the commencement of section 802, the Partnerships (Restrictions...
149(1) In section 803 references to chargeable events include events...
Individuals in partnership: exit charge
150(1) The losses covered by section 805(1)(b) include losses in...
151(1) In section 806 at Step 4 non-taxable consideration received...
152(1) This paragraph applies for the purposes of sections 805...
153The losses covered by section 807(4) include losses in relation...
Part 15Deduction of income tax at source
Deduction by deposit-takers: discretionary or accumulation settlements
154(1) A deposit with a deposit-taker which meets the settlement...
155(1) A notification under paragraph 154(3) given by a trustee...
Deduction by deposit-takers and building societies: declarations of non-UK residence
156(1) Section 858(2)(c) (which requires a declaration of non-UK residence...
Deduction by deposit-takers: qualifying certificates of deposit
157(1) This paragraph applies to a certificate of deposit which...
Deduction by deposit-takers: qualifying time deposits
158(1) This paragraph applies to a deposit with a deposit-taker...
Deduction by deposit-takers and building societies: saving for regulations
159(1) This paragraph applies to regulations which—
160(1) This paragraph applies to regulations about the making of...
Deduction by deposit-takers, building societies etc: collection of tax
161Chapter 15 of Part 15 has effect for return periods...
162(1) This paragraph applies to a payment—
Deduction from certain payments of yearly interest: interest paid by banks
163(1) In the case of payments of interest to which...
Deduction from certain payments of yearly interest: interest paid on advances from banks
164(1) In the case of payments of interest to which...
Deduction from certain UK public revenue dividends
165(1) This paragraph applies if— (a) any person holds any...
166(1) This paragraph applies in relation to any gilt-edged securities...
Unauthorised unit trusts: calculation of trustees' income pool
167(1) This paragraph applies for the purposes of section 943....
168(1) This paragraph applies for the purposes of section 943...
Non-resident landlords
169(1) Sub-paragraph (2) applies to any references in the Taxation...
Interpretation
170Expressions used in this Part of this Schedule and in...
Part 16Other provisions
Old references to surtax and standard rate tax
171The repeal by this Act of section 819 of ICTA...
Section 820 of ICTA
172Section 820 of ICTA (application of Income Tax Acts from...
SCHEDULE 3Repeals and revocations
Part 1Repeals and revocations: general
Part 2Repeals having effect in relation to shares issued after 5 April 2007
SCHEDULE 4Index of defined expressions

Income Tax Act 2007

2007 c. 3

An Act to restate, with minor changes, certain enactments relating to income tax; and for connected purposes.

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Annotations:
Modifications etc. (not altering text)
C1

Act modified (21.2.2009) by The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order (S.I. 2009/317), art. 3, Sch.