Income Tax (Trading and Other Income) Act 2005

Finance Act 2004 (c. 12) U.K.

629 U.K. The Finance Act 2004 is amended as follows.

F1 630 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 1 para. 630 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

631 U.K. Omit section 97 (exemption from income tax for certain interest and royalty payments: introductory).

632 U.K. Omit section 98 (exemption from income tax for certain interest and royalty payments).

633 U.K. Omit section 99 (permanent establishments and “25% associates”).

634 U.K. Omit section 100 (interest payments: exemption notices).

635 U.K. F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Sch. 1 para. 635 repealed (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1031, 1034, Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)

636 U.K. F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Sch. 1 para. 636 repealed (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1031, 1034, Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)

637 U.K. Omit section 103 (special relationships).

638 U.K. Omit section 104 (anti-avoidance).

639 U.K. Omit section 106 (transitional provision).

640 U.K. F4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 1 para. 640-643 repealed (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1031, 1034, Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)

641 U.K. F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 1 para. 640-643 repealed (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1031, 1034, Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)

642 U.K. F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 1 para. 640-643 repealed (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1031, 1034, Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)

643 U.K. F7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7 Sch. 1 para. 640-643 repealed (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1031, 1034, Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)

644 U.K. In section 186(1)(b) (scheme investments: income) for “which would” to the end substitute “ which are not relevant foreign income and which would otherwise be chargeable to income tax under Chapter 8 of Part 5 of ITTOIA 2005 (income not otherwise charged). ”

645 (1) Amend section 189(2) (meaning of “relevant UK earnings”) as follows. U.K.

(2) In paragraph (b) for “Schedule D” substitute “ Part 2 of ITTOIA 2005 ”.

(3) For paragraph (c) substitute—

“(c) income to which section 833(5B) of ICTA (patent income) applies.”

646 U.K. In section 196(2) (relief for employers in respect of contributions paid) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

647 U.K. In section 197(10)(a) (spreading relief) after “charged under” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

F8 648 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8 Sch. 1 para. 648 omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), Sch. 29 para. 14(4)

649 U.K. In section 200(a) (no other relief for employers in connection with contributions) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

650 (1) Amend section 246 (restriction of deduction for non-contributory provision) as follows. U.K.

(2) In subsection (2)(a) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

(3) In subsection (3)(a) after “charged under” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

651 (1) Amend section 249 of FA 2004 (amendments of ITEPA 2003) as follows. U.K.

(2) In subsection (3), in subsection (4) of the inserted section 393B—

(a) for paragraph (a) substitute—

“(a) an excepted group life policy as defined in section 480 of ITTOIA 2005,”, and

(b) in paragraph (b) for the words from “condition 1” to the end of the paragraph substitute “—

(i) condition A in section 481 of that Act would be met if paragraph (a) in that condition referred to the death, in any circumstances or except in specified circumstances, of that individual (rather than the death in any circumstances of each of the individuals insured under the policy) and if the condition did not include paragraph (b), and

(ii) conditions C and D in that section and conditions A and C in section 482 of that Act are met, or”.

(3) In subsection (8), in the inserted section 395 of ITEPA 2003, for “Case VI of Schedule D” substitute “ subsection (2) of that section ”.

652 U.K. In section 280(1) (abbreviations and general index for Part 4) omit the “and” before the definition of “ITEPA 2003” and after that definition insert “and

“ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005.”

653 (1) Amend Schedule 15 (charge to income tax on benefit received by former owner of property) as follows. U.K.

(2) In paragraph 1 (introductory) insert in the appropriate place—

““ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005;”.

(3) In paragraph 8 (intangible property comprised in settlement where settlor retains an interest)—

(a) in sub-paragraph (1)(a)—

(i) for “section 660A of the Taxes Act 1988” substitute “ section 624 of ITTOIA 2005 ”, and

(ii) for “Part 15” substitute “ Chapter 5 of Part 5 ”, and

(b) in sub-paragraph (1)(b) for “subsection (2) of that section” substitute “ section 625(1) of ITTOIA 2005 (settlor's retained interest) ”.

(4) In paragraph 9(1) (intangible property comprised in settlement where settlor retains an interest), in the definition of “T”—

(a) in paragraph (a), for “section 547 of the Taxes Act 1988” substitute “ section 461 of ITTOIA 2005 ”,

(b) in paragraph (b) for “section 660A of that Act” substitute “ section 624 of that Act ”, and

(c) in paragraph (c) for “that Act” substitute “ the Taxes Act 1988 ”.

(5) In paragraph 22(3)(b) (election for application of inheritance tax provisions) for “section 660A of the Taxes Act 1988” substitute “ section 624 of ITTOIA 2005 ”.

654 U.K. In paragraph 1(4) and (6) of Schedule 24, for the words from “(and” to “have” substitute “ has ”.

655 U.K. In paragraph 12 of Schedule 35 (pension schemes etc: minor and consequential amendments) for the words from “for” to the end substitute “for the words from the beginning to “, if the claimant” substitute

. ”

656 (1) Amend Schedule 36 (pension schemes etc: transitional provisions and savings) as follows. U.K.

(2) In paragraph 41(a) (employers' contributions relieved before 6th April 2006) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.

(3) In paragraph 53(2)(b) (benefits taxable under Chapter 2 of Part 6 of ITEPA 2003: contributions taxed pre-commencement) for “to tax under Case VI of Schedule D by virtue of” substitute “ to income tax under subsection (2) of ”.