Modifications etc. (not altering text)
C1Pt. 13 Ch. 2 applied by 1988 c. 1, s. 762ZA (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)
C2Pt. 13 Ch. 2 applied (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 21
(1)No amount of income may be taken into account more than once in charging income tax under this Chapter.
(2)If there is a choice about the persons in relation to whom any amount of income may be taken into account in charging income tax under this Chapter, it is to be taken into account—
(a)in relation to such one or more of them as appears to an officer of Revenue and Customs to be just and reasonable, and
(b)if more than one, in such respective proportions as appears to the officer to be just and reasonable.
[F1(2A)Subsection (2B) applies if—
(a)in the case of an individual, an amount of income is taken into account in charging income tax under section 720 or 727, and
(b)the individual subsequently receives that income.
(2B)The income received is treated as not being the individual's income for income tax purposes.]
(3)For the meaning of references in [F2this section] to an amount of income taken into account in charging tax, see section 744.
F3(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1S. 743(2A)(2B) inserted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 16(2)
F2Words in s. 743(3) substituted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 16(3)
F3S. 743(4) omitted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 10 para. 16(4)
(1)References in section [F4743] (no duplication of charges) to an amount of income taken into account in charging income tax are to be read as follows.
(2)In the case of tax charged on income under section 720 (charge where income enjoyed as a result of relevant transactions)—
(a)if section 724(1) (benefit provided out of income of person abroad) applies, they are references to an amount of the income out of which the benefit is provided equal to the amount F5... charged, and
(b)otherwise they are references to the amount of [F6the income mentioned in section 721(2)].
(3)In the case of tax charged on income under section 727 (charge where capital sums received as a result of relevant transactions), they are references to the amount of [F7the income mentioned in section 728(1)(a)].
(4)In the case of tax charged under section 731 (charge to tax on income treated as arising to non-transferors where benefit received as a result of relevant transfers), they are references to the amount of relevant income taken into account under section 733 (income charged under section 731) in calculating the amount to be charged in respect of the benefit for the tax year in question.
Textual Amendments
F4Word in s. 744(1) substituted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 17(2)
F5Words in s. 744(2)(a) omitted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 10 para. 17(3)(a)
F6Words in s. 744(2)(b) substituted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 17(3)(b)
F7Words in s. 744(3) substituted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 17(4)
(1)Income tax at the basic rate, [F8or] the [F9starting rate for savings] [F10when that rate is more than 0%,] F11... is not charged under section 720 or 727 in respect of any income [F12if (and to the corresponding extent that) the income mentioned in section 721(2) or 728(1)(a)] has borne tax at that rate by deduction or otherwise.
[F13(1A)Income tax at a Scottish rate above 0% and below, or equal to, the basic rate is not charged under section 720 or 727 in respect of any income if (and to the corresponding extent that) the income mentioned in section 721(2) or 728(1)(a) has borne tax at the basic rate.]
[F14(1B)Income tax at the Welsh basic rate when that rate is above 0% and below, or equal to, the basic rate is not charged under section 720 or 727 in respect of any income if (and to the corresponding extent that) the income mentioned in section 721(2) or 728(1)(a) has borne tax at the basic rate.]
(2)[F15Subsections (1) [F16, (1A) and (1B)] do] not affect the tax charged if section 724(2) applies (benefit provided out of income of person abroad charged in year of receipt).
[F17(3)Subsection (4) applies to income treated as arising to an individual under section 721 or 728 so far as [F18none of subsections (1), (1A) and (1B)] applies to it.
(4)The charge to income tax under section 720 or 727 operates by treating the income as if it were income within section 19(2) (meaning of “dividend income”) if the income mentioned in section 721(2) or 728(1)(a) would be dividend income were it the income of the individual.]
Textual Amendments
F8Word in s. 745(1) inserted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 63(12)(a)
F9Words in s. 745(1) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 24
F10Words in s. 745(1) inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 4(9)(17)
F11Words in s. 745(1) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 63(12)(b)
F12Words in s. 745(1) substituted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 18(2)
F13S. 745(1A) inserted (6.4.2018) by The Scottish Rates of Income Tax (Consequential Amendments) Order 2018 (S.I. 2018/459), arts. 1(2), 6(6)(a)
F14S. 745(1B) inserted (with effect according to art. 1(2) of the amending S.I.) by The Devolved Income Tax Rates (Consequential Amendments) Order 2019 (S.I. 2019/201), arts. 1(1), 12(9)(a)
F15Words in s. 745(2) substituted (6.4.2018) by The Scottish Rates of Income Tax (Consequential Amendments) Order 2018 (S.I. 2018/459), arts. 1(2), 6(6)(b)
F16Words in s. 745(2) substituted (with effect according to art. 1(2) of the amending S.I.) by The Devolved Income Tax Rates (Consequential Amendments) Order 2019 (S.I. 2019/201), arts. 1(1), 12(9)(b)
F17S. 745(3)(4) substituted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 18(3)
F18Words in s. 745(3) substituted (with effect according to art. 1(2) of the amending S.I.) by The Devolved Income Tax Rates (Consequential Amendments) Order 2019 (S.I. 2019/201), arts. 1(1), 12(9)(c)
(1)This section applies for the purpose of calculating the liability to income tax of an individual charged under section 720 or 727.
[F19(2)For the purpose of determining the deductions and reliefs allowed to the individual, the individual is to be treated as if the individual had actually received the amount by reference to which the income treated as arising to the individual under section 721 or 728 is determined.]
Textual Amendments
F19S. 746(2) substituted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 19
(1)This subsection applies if a person—
(a)would have been treated as—
(i)making qualifying accrued income profits, or
(ii)making qualifying accrued income profits of a greater amount,
in an interest period, but
(b)is not so treated because of being resident or domiciled outside the United Kingdom throughout any tax year in which the interest period (or part of it) falls.
(2)If subsection (1) applies, this Chapter applies as if the amount which the person would be treated as making or, as the case may be, the additional amount were income becoming payable to the person.
(3)Accordingly, any reference in this Chapter to income of (or payable or arising to) a person abroad must be read as including a reference to such an amount.
(4)This subsection applies if income consisting of interest which falls due at the end of an interest period—
(a)would have been income as respects which a person is entitled to an exemption, or an exemption of a greater amount, from liability to income tax under section 679 (interest on securities involving accrued income losses: general), but
(b)is not such income because it is income of a person who is resident or domiciled outside the United Kingdom throughout any tax year in which the interest period (or part of it) falls.
(5)If subsection (4) applies, for the purposes of this Chapter the interest is treated as reduced by the amount of the exemption or, as the case may be, the additional exemption.
(6)In this section—
(a)expressions which are also used in Chapter 2 of Part 12 (accrued income profits) have the same meaning as in that Chapter (but see subsection (7)), and
(b)“qualifying accrued income profits” means accrued income profits which are treated as made—
(i)under section 628(5), or
(ii)under section 630(2) in respect of a transfer of variable rate securities.
(7)In the case of qualifying accrued income profits within sub-paragraph (ii) of the definition of that expression in subsection (6)(b)—
(a)references in subsection (1)(a) to making qualifying accrued income profits in an interest period are to be read as making them in the tax year in which the settlement day falls, and
(b)the reference in subsection (1)(b) to the interest period is to the period—
(i)beginning with the day after the last day of the only or last interest period of the securities, and
(ii)ending with the settlement day.