Amendments to the Income Tax Act 20076
1
The Income Tax Act 200711 is amended as follows.
2
3
In section 58(2)14 (meaning of “adjusted net income”), omit the words after “by reference to the basic rate for the tax year”.
4
In section 414(2)15 (gift aid: relief for gifts to charity) —
a
in paragraph (a), for the words after “deduction of” substitute “income tax at the basic rate, and”, and
b
in paragraph (b) for “the Scottish basic rate limit and any other Scottish rate limit,” substitute “the upper limit for the Scottish basic rate and the limits for any Scottish rates above the Scottish basic rate,”.
5
In section 41516 (gift aid: meaning of “grossed up amount”) omit the words after “by reference to the basic rate for the tax year in which the gift is made”.
6
In section 74517 (rates of tax applicable to income charged under sections 720 and 727 etc)—
a
after subsection (1) insert—
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.
b
in subsection (2) for “Subsection (1) does” substitute “Subsections (1) and (1A) do”, and
c
in subsection (3) for “subsection (1) does not apply” substitute “neither of subsections (1) and (1A) applies”.
7
In section 828B(5)18 (conditions to be met)—
a
before “the Scottish basic rate” insert “a Scottish rate below the Scottish basic rate,”, and
b
after “the Scottish basic rate” insert “, the Scottish intermediate rate”.
8
In section 98919 (definitions for the purposes of the Income Tax Acts), before the definition of “Scottish rate” insert—
“Scottish intermediate rate”, in relation to a tax year, means any Scottish rate for that year which is named “intermediate” by the Scottish rate resolution setting it,
9
In Schedule 420 (index of defined expressions), before the definition of “Scottish rate” insert—
Scottish intermediate rate section 989