(1)The first of the conditions mentioned in section 349A(1) is that the person beneficially entitled to the income in respect of which the payment is made is—
(a)a company resident in the United Kingdom, F2. . .
(b)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)The second of those conditions is that—
(a)the person beneficially entitled to the income in respect of which the payment is made is a company not resident in the United Kingdom (“the non-resident company”),
(b)the non-resident company carries on a trade in the United Kingdom through a [F3permanent establishment], and
(c)the payment falls to be brought into account in computing the chargeable profits (within the meaning given by section 11(2)) of the non-resident company.
[F4(3)The third of those conditions is that the payment is made to [F5, or to the nominee of]—
(a)a local authority;
(b)a health service body within the meaning of section 519A(2);
(c)a public office or department of the Crown to which section 829(1) applies;
(d)a charity (within the meaning of section 506(1));
(e)a body for the time being mentioned in section 507(1) (bodies that are allowed the same exemption from tax as charities the whole income of which is applied to charitable purposes);
(f)an Association of a description specified in section 508 (scientific research organisations);
(g)F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(h)F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F7(i)the scheme administrator of a registered pension scheme;
(ia)the sub-scheme administrator of a sub-scheme which forms part of a split scheme pursuant to the Registered Pensions (Splitting of Schemes) Regulations 2006;]
(j)the trustees of a scheme entitled to exemption under section 613(4) (Parliamentary pension funds);[F8 or]
(k)the persons entitled to receive the income of a fund entitled to exemption under section 614(3) (certain colonial, etc pension funds);
(l)F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(m)F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)The fourth of those conditions is that—
(a)the person to whom the payment is made is, or is the nominee of, the plan manager of a plan [F10of a kind to which regulations under Chapter 3 of Part 6 of ITTOIA 2005 (income from individual investment plans) apply],
(b)F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)the plan manager receives the payment in respect of investments under the plan.
(5)F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)The sixth of those conditions is that the person beneficially entitled to the income in respect of which the payment is made is a partnership each member of which is—
(a)a person or body mentioned in subsection (3) above, or
(b)a person or body mentioned in subsection (7) below.
(7)The persons and bodies referred to in subsection (6)(b) above are—
(a)a company resident in the United Kingdom;
(b)a company that—
(i)is not resident in the United Kingdom,
(ii)carries on a trade there through a [F3permanent establishment], and
(iii)is required to bring into account, in computing its chargeable profits (within the meaning of section 11(2)), the whole of any share of that payment that falls to it by reason of sections 114 and 115;
(c)the European Investment Fund.
(8)The Treasury may by order amend—
(a)subsection (3) above;
(b)subsection (7) above;
so as to add to, restrict or otherwise alter the persons and bodies falling within that subsection.]]
Textual Amendments
F1Ss. 349A-349D inserted (with application in accordance with s. 85(4) of the amending Act) by Finance Act 2001 (c. 9), s. 85(1)
F2S. 349B(1)(b) and preceding word repealed (with effect in accordance with s. 94(7) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 40 Pt. 3(14), Note
F3Words in s. 349B(2)(b)(7)(b)(ii) substituted (with effect in accordance with s. 153(4) of the amending Act) by Finance Act 2003 (c. 14), s. 153(1)(a)
F4S. 349B(3)-(8) inserted (with effect in accordance with s. 94(7) of the amending Act) by Finance Act 2002 (c. 23), s. 94(2)
F5Words in s. 349B(3) inserted (1.12.2002) by The Income and Corporation Taxes Act 1988, Section 349B(3) Order 2002 (S.I. 2002/2931), art. 2
F6S. 349B(3)(g)(h) repealed (with effect in accordance with s. 46(4)(a)(b) of the repealing Act) by Finance (No. 2) Act 2005 (c. 22), s. 46(2)(a)(b), Sch. 11 Pt. 2(12), Note (with s. 46(6)(7))
F7S. 349B(3)(i)(ia) substituted for s. 349B(3)(i) (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 16(2) (as amended by The Registered Pension Schemes (Splitting of Schemes) Regulations 2006 (S.I. 2006/569), regs 1(1), 5(4)(5)) (with Sch. 36)
F8Word after s. 349B(3)(j) inserted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 16(3) (with Sch. 36)
F9S. 349B(3)(l)(m) repealed (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 16(4), Sch. 42 Pt. 3, Note (with Sch. 36)
F10Words in s. 349B(4)(a) inserted (with effect in accordance with s. 22(4) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), s. 22(2)
F11S. 349B(4)(b) repealed (with effect in accordance with ss. 19(1), 22(4) of the repealing Act) by Finance (No. 2) Act 2005 (c. 22), s. 22(3), Sch. 11 Pt. 2(3), Note 2; S.I. 2006/982, art. 2
F12S. 349B(5) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 151(3), Sch. 3 (with Sch. 2)
Modifications etc. (not altering text)
C1S. 349B(4) applied (with modifications) (6.4.2005) by The Child Trust Funds Regulations 2004 (S.I. 2004/1450), regs. 1, 24(c) (as amended (27.12.2005) by The Child Trust Funds (Amendment No. 3) Regulations 2005 (S.I. 2005/3349), regs. 1, 7(b)); S.I. 2004/3369, art. 2(1)
C2Amendment to earlier affecting provision S.I. 2004/1450 reg. 24(c) (27.12.2005) by The Child Trust Funds (Amendment No. 3) Regulations 2005 (S.I. 2005/3349), regs. 1, 7(b)