Finance Act 2022

PART 3 U.K. Amendments of other Acts

Taxes Management Act 1970 U.K.

30 TMA 1970 is amended as follows.

31 In section 8 (personal return), in subsection (1C), omit “or its basis period”.

32 In Schedule A1 (as inserted by section 60(3) of F(No.2)A 2017), in paragraph 8 (end of period statement)—

(a) for sub-paragraph (2) substitute—

“(2) “Relevant period” means a tax year.”;

(b) omit sub-paragraph (6)(b).

Capital Allowances Act 2001 U.K.

33 CAA 2001 is amended as follows.

34 (1) Section 59 (unrelieved qualifying expenditure) is amended as follows.

(2) In subsection (4), for “with the basis period for the previous tax year” substitute “in the previous tax year (or, if there is more than one such period, the latest of them)”.

(3) In subsection (8)(b)—

(a) omit “the basis period for”;

(b) for “with that basis period” substitute “in that tax year (or, if there is more than one such period, the latest of them)”.

35 In section 419A (unrelieved qualifying expenditure: entry to cash basis), in subsection (1), for “with the basis period for the tax year”, in both places, substitute “in the tax year (or, if there is more than one such period, the latest of them)”.

36 In section 461A (unrelieved qualifying expenditure: entry to cash basis), in subsection (1), for “with the basis period for the previous tax year” substitute “in the previous tax year (or, if there is more than one such period, the latest of them)”.

37 In section 475A (unrelieved qualifying expenditure: entry to cash basis), in subsection (1), for “with the basis period for the previous tax year” substitute “in the previous tax year (or, if there is more than one such period, the latest of them)”.

Income Tax Act 2007 U.K.

38 ITA 2007 is amended as follows.

39 In section 24A (limit on Step 2 deductions), omit subsection (7)(c).

40 In section 60 (overview of Chapter), in subsection (3), omit paragraph (b) and the “and” before it.

41 Omit sections 61 and 62 (losses of a tax year of persons carrying on trades etc).

42 (1) Section 66 (restriction on relief unless trade is commercial) is amended as follows.

(2) In subsection (2), omit “the basis period for”.

(3) In subsection (5), for “basis period”, in each place, substitute “tax year”.

43 (1) Section 70 (determining losses in previous tax years) is amended as follows.

(2) Omit subsection (2).

(3) In subsection (3), in the words before paragraph (a), for “This loss” substitute “The loss”.

(4) In subsection (4), in the words after paragraph (b)—

(a) for “203(2)”, in both places, substitute “7A(2)”;

(b) omit “to basis periods are read as references to tax years and references”.

(5) In subsection (5), for “203(3) or (4)” substitute “7A(3) or (4)”.

44 In section 74 (restrictions on relief unless trade is commercial etc), in subsection (2)—

(a) in the words before paragraph (a), omit “the basis period for”;

(b) in paragraph (b), for “basis period” substitute “tax year”.

45 (1) Section 74C (meaning of “non-active capacity” for purposes of section 74A etc) is amended as follows.

(2) For subsection (3) substitute—

“(3) For this purpose “the relevant period” means—

(a) where the individual first started to carry on the trade less than six months before the end of the tax year, the period of six months beginning with the date on which the individual first started to carry on the trade;

(b) where the individual permanently ceased to carry on the trade less than six months after the start of the tax year, the period of six months ending with the date on which the individual permanently ceased to carry on the trade;

(c) in any other case, the tax year.”

(3) Omit subsection (4).

46 (1) Section 75 (trade leasing allowances given to individuals) is amended as follows.

(2) In subsection (5)—

(a) omit “the basis period for”;

(b) omit “(“the loss-making basis period”)”.

(3) In subsection (6), in each of paragraphs (a) and (b), for “loss-making basis period” substitute “tax year”.

47 In section 83 (carry forward against subsequent trade profits), in subsection (6)(f), for “sections 17(3) and 852(7)” substitute “section 17(3)”.

48 (1) Section 90 (losses that are “terminal losses”) is amended as follows.

(2) In subsection (4)—

(a) for “203(3) and (4)” substitute “7A(3) and (4)”;

(b) for “203(2)” substitute “7A(2)”.

(3) Omit subsection (5).

49 (1) Section 103B (meaning of “non-active partner” etc) is amended as follows.

(2) For subsection (3) substitute—

“(3) For this purpose “the relevant period” means—

(a) where the individual first started to carry on the trade less than six months before the end of the tax year, the period of six months beginning with the date on which the individual first started to carry on the trade;

(b) where the individual permanently ceased to carry on the trade less than six months after the start of the tax year, the period of six months ending with the date on which the individual permanently ceased to carry on the trade;

(c) in any other case, the tax year.”

(3) Omit subsection (4).

50 In section 104 (restriction on reliefs for limited partners), in subsection (4), in the words after paragraph (b), omit “the basis period for”.

51 In section 107 (restriction on reliefs for members of LLPs), in subsection (5), in the words after paragraph (b), omit “the basis period for”.

52 In section 110 (restriction on reliefs for non-active partners in early tax years), in subsection (4), in the words after paragraph (b), omit “the basis period for”.

53 In section 113 (unrelieved losses brought forward), in subsection (7), omit paragraph (b) and the “and” before it.

54 (1) Section 525 (meaning of “charitable trade”) is amended as follows.

(2) In subsection (1), in the words before paragraph (a), omit “the basis period for”.

(3) Omit subsection (5).

55 In section 528 (condition as to trading and miscellaneous incoming resources), in subsection (2)(a), omit “the basis period for”.

56 In section 544 (section 543: supplementary), omit subsection (4).

57 In section 681AD (relevant income tax relief: deduction not to exceed commercial rent), in subsection (2)(a)(ii), omit “the basis period of”.

58 In section 681CC (tax deduction not to exceed commercial rent), in subsection (2)(a)(ii), omit “the basis period of”.

59 (1) Section 795 (meaning of “post-1 December 2004 loss”) is amended as follows.

(2) In subsection (1), in each of paragraphs (a) and (b), omit “the basis period for”.

(3) In subsection (2)(b), omit “the basis period for”.

(4) Omit subsection (4).

Taxation (International and Other Provisions) Act 2010 U.K.

60 In TIOPA 2010, omit sections 22 to 24 (credit for foreign tax on overlap profit if credit for that tax already allowed).