Finance (No. 2) Act 2023

Part 3 Rate of tax charged on trustees’ first slice of trust rate income: income tax

13 (1) ITA 2007 is amended as follows.

(2) Omit Chapter 6 of Part 9 (trustees’ first slice of trust rate income).

(3) In consequence of the amendment made by sub-paragraph (2)—

(a) in section 2(9)(b) (overview of Act), for “4, 5 and 6” substitute “4 and 5”;

(b) in section 11(2) (income charged at the default basic rate: non- individuals), for “6” substitute “5”;

(c) in section 14(2) (income charged at the dividend ordinary rate: other persons), for “6” substitute “5”;

(d) in section 15 (income charged at the trust rate and the dividend trust rate), for “6” substitute “5”;

(e) in section 16(2) (savings and dividend income to be treated as highest part of total income) omit paragraph (a) (and the “and” after it);

(f) in section 23 (the calculation of income tax liability), in Step 4, for “6” substitute “5”;

(g) in section 462 (overview of Part 9) omit subsection (6);

(h) in section 484 (trustees’ expenses to be set against trustees’ trust rate income) omit subsection (3);

(i) in section 498 (types of income tax for the purposes of section 497) omit Type 4.