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Income Tax (Trading and Other Income) Act 2005

Changes to legislation:

Income Tax (Trading and Other Income) Act 2005 is up to date with all changes known to be in force on or before 08 November 2024. There are changes that may be brought into force at a future date. Help about Changes to Legislation

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  1. Introductory Text

  2. Part 1 Overview

    1. 1.Overview of Act

    2. 2.Overview of priority rules

  3. Part 2 Trading income

    1. Chapter 1 Introduction

      1. 3.Overview of Part 2

      2. 4.Provisions which must be given priority over Part 2

    2. Chapter 2 Income taxed as trade profits

      1. Charge to tax on trade profits

        1. 5.Charge to tax on trade profits

        2. 6.Territorial scope of charge to tax

        3. 6A.Arrangements for avoiding tax

        4. 6B.Trade of dealing in or developing UK land

        5. 7.Income charged

        6. 7A.Apportionment etc of profits to tax year

        7. 7B.Rule if trader starts to carry on trade after 31 March

        8. 7C.Rule if there is a late accounting date

        9. 7D.Election to disapply late accounting date rules

        10. 8.Person liable

      2. Trades and trade profits

        1. 9.Farming and market gardening

        2. 10.Commercial occupation of land other than woodlands

        3. 11.Commercial occupation of woodlands

        4. 12.Profits of mines, quarries and other concerns

        5. 13.Visiting performers

        6. 14.Visiting performers: supplementary

        7. 15.Divers and diving supervisors

        8. 16.Oil extraction and related activities

        9. 16A.Voluntary office-holders: compensation for lost profits

        10. 16B.Payments to company directors

        11. 16C.Professionals in practice: incidental income from an office or employment

      3. Starting and ceasing to trade

        1. 17.Effect of becoming or ceasing to be a UK resident

        2. 18.Effect of company starting or ceasing to be within charge to income tax

      4. Trading income and property income

        1. 19.Tied premises

        2. 20.Caravan sites where trade carried on

        3. 21.Surplus business accommodation

        4. 22.Payments for wayleaves

      5. Trading allowance

        1. 22A.Trading allowance

      6. Rent-a-room and qualifying care relief

        1. 23.Rent-a-room and qualifying care relief

      7. Trading income provided through third parties

        1. 23A.Application of section 23E: conditions

        2. 23B.Meaning of “relevant benefit”

        3. 23C.Meaning of “qualifying third party payment”

        4. 23D.Other definitions

        5. 23E.Tax treatment of relevant benefits

        6. 23F.Relevant benefits: persons other than T

        7. 23G.Anti-avoidance

        8. 23H.Double taxation

    3. Chapter 3 Trade profits: basic rules

      1. Professions and vocations

        1. 24.Professions and vocations

      2. Basis of accounting

        1. 24A.Cash basis to apply by default

        2. 25.Generally accepted accounting practice

        3. 25A.Cash basis for small businesses

        4. 25B.Excluded trades

        5. 25C.Election for profits to be calculated in accordance with GAAP

        6. 26.Losses calculated on same basis as profits

      3. Rules relating to calculation of profits

        1. 27.Receipts and expenses

        2. 28.Items treated under CAA 2001 as receipts and expenses

        3. 28A.Money's worth

        4. 29.Interest

      4. Animals kept for trade purposes

        1. 30.Animals kept for trade purposes

      5. Rules relating to deductions

        1. 31.Relationship between rules prohibiting and allowing deductions

    4. Chapter 3A Trade profits: cash basis

      1. ...

        1. 31A.Conditions to be met for profits to be calculated on cash basis

        2. 31B.Relevant maximum

        3. 31C.Excluded persons

      2. ...

        1. 31D.Effect of election under section 25A

      3. Calculation of profits on cash basis

        1. 31E.Calculation of profits on cash basis

      4. Overview of rest of Part 2

        1. 31F.Overview of rest of Part 2 as it applies to cash basis

    5. Chapter 4 Trade profits: rules restricting deductions

      1. Introduction

        1. 32.Professions and vocations

      2. Cash basis accounting

        1. 32A.Application of Chapter to the cash basis

      3. Capital expenditure

        1. 33.Capital expenditure

        2. 33A.Cash basis: capital expenditure

      4. Wholly and exclusively and losses rules

        1. 34.Expenses not wholly and exclusively for trade and unconnected losses

      5. Bad and doubtful debts

        1. 35.Bad and doubtful debts

      6. Unpaid remuneration

        1. 36.Unpaid remuneration

        2. 37.Unpaid remuneration: supplementary

      7. Employee benefit contributions

        1. 38.Restriction of deductions

        2. 39.Making of “employee benefit contributions”

        3. 40.Provision of qualifying benefits

        4. 41.Timing and amount of certain qualifying benefits

        5. 42.Provision or payment out of employee benefit contributions

        6. 43.Profits calculated before end of 9 month period

        7. 44.Interpretation of sections 38 to 44

      8. Business entertainment and gifts

        1. 45.Business entertainment and gifts: general rule

        2. 46.Business entertainment: exceptions

        3. 47.Business gifts: exceptions

      9. Car or motor cycle hire

        1. 48.Car ... hire

        2. 49.Car ... hire: supplementary

        3. 50.Hiring cars (but not motor cycles) with low carbon dioxide emissions

        4. 50A.Short-term hiring in and long-term hiring out

        5. 50B.Connected persons: application of section 48

      10. Patent royalties

        1. 51.Patent royalties

      11. Interest payments

        1. 51A.Cash basis: interest payments on loans

        2. 52.Exclusion of double relief for interest

      12. Social security contributions

        1. 53.Social security contributions

      13. Penalties and interest

        1. 54.Penalties and interest

      14. Crime-related payments

        1. 55.Crime-related payments

      15. Integral features

        1. 55A.Expenditure on integral features

      16. Rental rebates

        1. 55B.Rental rebates

    6. Chapter 5 Trade profits: rules allowing deductions

      1. Introduction

        1. 56.Professions and vocations

      2. Cash basis accounting

        1. 56A.Application of Chapter to the cash basis

      3. Pre-trading expenses

        1. 57.Pre-trading expenses

      4. Subsistence expenses

        1. 57A.Expenses incurred by traders on food and drink

      5. ...

        1. 57B.Cash basis: interest payments on loans

      6. Incidental costs of obtaining finance

        1. 58.Incidental costs of obtaining finance

        2. 59.Convertible loans and loan stock etc.

      7. Tenants under taxed leases

        1. 60.Tenants under taxed leases: introduction

        2. 61.Tenants occupying land for purposes of trade treated as incurring expenses

        3. 62.Limit on deductions if tenant entitled to mineral extraction allowance

        4. 63.Tenants dealing with land as property employed for purposes of trade

        5. 64.Restrictions on section 61 expenses: lease premium receipts

        6. 65.Restrictions on section 61 expenses: lease of part of premises

        7. 66.Corporation tax receipts under ICTA treated as taxed receipts

        8. 67.Restrictions on section 61 expenses: corporation tax receipts under ICTA

      8. ...

        1. 68.Replacement and alteration of trade tools

      9. Payments for restrictive undertakings

        1. 69.Payments for restrictive undertakings

      10. Seconded employees

        1. 70.Employees seconded to charities and educational establishments

        2. 71.Educational establishments

      11. Contributions to agents' expenses

        1. 72.Payroll deduction schemes: contributions to agents' expenses

      12. Counselling and retraining expenses

        1. 73.Counselling and other outplacement services

        2. 74.Retraining courses

        3. 75.Retraining courses: recovery of tax

      13. Redundancy payments etc.

        1. 76.Redundancy payments and approved contractual payments

        2. 77.Payments in respect of employment wholly in employer's trade

        3. 78.Payments in respect of employment in more than one capacity

        4. 79.Additional payments

        5. 79A.Additional payments: change in the persons carrying on the trade

        6. 80.Payments made by the Government

      14. Personal security expenses

        1. 81.Personal security expenses

      15. Contributions to local enterprise organisations or urban regeneration companies

        1. 82.Contributions to local enterprise organisations or urban regeneration companies

        2. 83.Meaning of “local enterprise organisation”

        3. 84.Approval of local enterprise agencies

        4. 85.Supplementary provisions with respect to approvals

        5. 86.Meaning of “urban regeneration company”

      16. Contributions to flood and coastal erosion risk management projects

        1. 86A.Contributions to flood and coastal erosion risk management projects

        2. 86B.Interpretation of section 86A

      17. Scientific research

        1. 87.Expenses of research and development

        2. 88.Payments to research associations, universities etc.

      18. Expenses connected with patents, designs and trade marks

        1. 89.Expenses connected with patents

        2. 90.Expenses connected with designs or trade marks

      19. Export Credits Guarantee Department

        1. 91.Payments to Export Credits Guarantee Department

      20. Expenses connected with foreign trades

        1. 92.Expenses connected with foreign trades

        2. 93.Allocation of expenses

        3. 94.Family expenses

      21. SAYE option schemes, CSOP schemes

        1. 94A.Costs of setting up SAYE option scheme or CSOP scheme

      22. Limited liability partnerships: salaried members

        1. 94AA.Deductions in relation to salaried members

    7. CHAPTER 5A Trade profits: deductions allowable at a fixed rate

      1. Introduction

        1. 94B.Professions and vocations

        2. 94C.Provisions not applicable to certain firms

      2. Expenditure on vehicles

        1. 94D.Expenditure on vehicles

        2. 94E.Excluded vehicles

        3. 94F.The appropriate mileage amount

        4. 94G.Definitions of types of vehicle

      3. Use of home for business purposes

        1. 94H.Use of home for business purposes

      4. Premises used both as home and business premises

        1. 94I.Premises used both as a home and as business premises

    8. Chapter 6 Trade profits: receipts

      1. Introduction

        1. 95.Professions and vocations

      2. Cash basis accounting

        1. 95A.Application of Chapter to the cash basis

      3. Capital receipts

        1. 96.Capital receipts

        2. 96A.Capital receipts under, or after leaving, cash basis

        3. 96B.Section 96A: supplementary provision

      4. Debts released

        1. 97.Debts incurred and later released

      5. Cash basis: value of stock and work in progress on cessation

        1. 97A.Cash basis: value of trading stock on cessation of trade

        2. 97B.Cash basis: value of work in progress on cessation of profession or vocation

      6. Amounts received following earlier cessation

        1. 98.Acquisition of trade: receipts from transferor's trade

      7. Reverse premiums

        1. 99.Reverse premiums

        2. 100.Excluded cases

        3. 101.Tax treatment of reverse premiums

        4. 102.Arrangements not at arm's length

        5. 103.Connected persons and property arrangements

      8. Assets of mutual concerns

        1. 104.Distribution of assets of mutual concerns

      9. Industrial development grants

        1. 105.Industrial development grants

      10. Proceeds of insurance etc.

        1. 106.Sums recovered under insurance policies etc.

    9. Chapter 6A Trade profits: amounts not reflecting commercial transactions

      1. 106A.Professions and vocations

      2. 106B.Application of Chapter

      3. 106C.Amounts not reflecting commercial transactions

      4. 106D.Capital receipts

      5. 106E.Gifts to charities etc

    10. Chapter 7 Trade profits: gifts to charities etc.

      1. 107.Professions and vocations

      2. 108.Gifts of trading stock to charities etc.

      3. 109.Receipt by donor or connected person of benefit attributable to certain gifts

      4. 110.Meaning of “designated educational establishment”

    11. Chapter 8 Trade profits: herd basis rules

      1. Introduction

        1. 111.Election for application of herd basis rules

        2. 111A.Herd basis rules not to apply where cash basis used

        3. 112.Meaning of “animal”, “herd”, “production herd” etc.

        4. 113.Other interpretative provisions

      2. The herd basis rules

        1. 114.Initial cost of herd and value of herd

        2. 115.Addition of animals to herd

        3. 116.Replacement of animals in herd

        4. 117.Amount of receipt if old animal slaughtered under disease control order

        5. 118.Sale of animals from herd

        6. 119.Sale of whole or substantial part of herd

        7. 120.Acquisition of new herd begun within 5 years of sale

        8. 121.Section 120: sale for reasons outside farmer's control

        9. 122.Replacement of part sold begun within 5 years of sale

        10. 123.Section 122: sale for reasons outside farmer's control

      3. Elections

        1. 124.Herd basis elections

        2. 125.Five year gap in which no production herd kept

        3. 126.Slaughter under disease control order

      4. Preventing abuse of the herd basis rules

        1. 127.Preventing abuse of the herd basis rules

      5. Supplementary

        1. 128.Information if election made

        2. 129.Further assessment etc. if herd basis rules apply

    12. Chapter 9 Trade profits: . . . sound recordings

      1. Introduction

        1. 130.Expenditure to which this Chapter applies

        2. 130A.Chapter not to apply where cash basis used

        3. 131.Meaning of “film” and related expressions

        4. 132.Meaning of “original master version” and “certified master version”

        5. 133.Meaning of “relevant period”

      2. Expenditure treated as revenue in nature

        1. 134.Expenditure treated as revenue in nature

      3. Rules for allocating expenditure

        1. 135.Allocation of production or acquisition expenditure to relevant periods

      4. Certified master versions: special rules for allocating expenditure

        1. 136.Application of provisions about certified master versions

        2. 137.Certified master versions: preliminary expenditure

        3. 138.Certified master versions: production expenditure

        4. 138A.Certified master versions: acquisition expenditure

      5. Certified master versions: limited-budget films

        1. 139.Certified master versions: production expenditure on limited-budget films

        2. 140.Certified master versions: acquisition expenditure on limited-budget films

      6. Interpretation of sections 138 to 140

        1. 140A.“Disqualifying deduction”

        2. 141.“Total production expenditure in respect of the original master version”

        3. 142.When expenditure is incurred

      7. Deferred income agreements

        1. 142A.Deferred income agreements which exist when deduction made

        2. 142B.Meaning of “deferred income agreement in respect of a film”

        3. 142C.Deferred income agreements entered into after deduction made

        4. 142D.Meaning of the “net excess relief”

        5. 142E.Sections 142A to 142D: time of entry into an agreement

      8. Election for sections 134 to 140 not to apply

        1. 143.Election for sections 134 to 140 not to apply

      9. Supplementary

        1. 144.Meaning of “genuinely intended for theatrical release”

    13. Chapter 10 Trade profits: certain telecommunication rights

      1. 144A.Chapter not to apply where cash basis used

      2. 145.Professions and vocations

      3. 146.Meaning of “relevant telecommunication right”

      4. 147.Expenditure and receipts treated as revenue in nature

      5. 148.Credits or debits arising from revaluation

    14. Chapter 10A Leases of plant or machinery: special rules for long funding leases

      1. Application of Chapter

        1. 148ZA.Chapter not to apply where cash basis used

      2. Lessors under long funding finance leases

        1. 148A.Lessor under long funding finance lease: rental earnings

        2. 148B.Lessor under long funding finance lease: exceptional items

        3. 148C.Lessor under long funding finance lease making termination payment

      3. Lessors under long funding operating leases

        1. 148D.Lessor under long funding operating lease: periodic deduction

        2. 148DA.“Starting value”: general

        3. 148DB.“Starting value” where plant or machinery originally unqualifying

        4. 148E.Long funding operating lease: lessor's additional expenditure

        5. 148EA.Determination of remaining residual value resulting from lessor's first additional expenditure

        6. 148EB.Determination of remaining residual value resulting from lessor's further additional expenditure

        7. 148F.Lessor under long funding operating lease: termination of lease

      4. Lessors under long funding finance or operating leases: avoidance etc

        1. 148FA.Cases where ss. 148A to 148F do not apply: plant or machinery held as trading stock

        2. 148FB.Cases where ss. 148A to 148F do not apply: lessor also lessee under non-long funding lease

        3. 148FC.Cases where ss. 148A to 148F do not apply: other avoidance

        4. 148FD.Cases where ss 148A to 148F do not apply: films

      5. Lessees under long funding finance leases

        1. 148G.Lessee under long funding finance lease: limit on deductions

        2. 148GA.Lessee under long funding finance leases: right-of-use leases

        3. 148H.Lessee under long funding finance lease: termination

      6. Lessees under long funding operating leases

        1. 148I.Lessee under long funding operating lease

      7. Interpretation of this Chapter

        1. 148J.Interpretation of Chapter 10A

    15. Chapter 11 Trade profits: other specific trades

      1. Cash basis accounting

        1. 148K.Application of Chapter to the cash basis

      2. Dealers in securities etc.

        1. 149.Taxation of amounts taken to reserves

        2. 150.Conversion etc. of securities held as circulating capital

        3. 151.Exchanges of gilts for gilt strips

        4. 152.Consolidation of gilt strips

        5. 153.Meaning of “gilt-edged security” and “strip”

        6. 154.Regulations for determining market value of securities or strips

        7. 154A.Certain non-UK residents with interest on 3½% War Loan 1952 Or After

      3. Persons authorised for purposes of FISMA 2000

        1. 155.Levies and repayments under FISMA 2000

      4. Dealers in land etc.

        1. 156.Purchase or sale of woodlands

        2. 157.Relief in respect of mineral royalties

        3. 158.Lease premiums etc: reduction of receipts

      5. Ministers of religion

        1. 159.Ministers of religion

      6. Barristers and advocates

        1. 160.Alternative basis of calculation in early years of practice

      7. Mineral exploration and access

        1. 161.Mineral exploration and access

      8. Persons liable to pool betting duty

        1. 162.Payments by persons liable to pool betting duty

      9. Intermediaries treated as making employment payments

        1. 163.Deduction for deemed employment payment

        2. 164.Special rules for partnerships

      10. Managed service companies

        1. 164A.Deduction for deemed employment payments

      11. Worker's services provided to public sector through intermediary

        1. 164B.Intermediaries providing worker's services to public sector

      12. Waste disposal

        1. 165.Deduction for site preparation expenditure

        2. 166.Allocation of site preparation expenditure

        3. 167.Site preparation expenditure: supplementary

        4. 168.Site restoration payments

      13. Cemeteries and crematoria

        1. 169.Cemeteries and crematoria: interests in land

        2. 170.Deduction for capital expenditure

        3. 171.Allocation of ancillary capital expenditure

        4. 172.Exclusion of expenditure met by subsidies

      14. Crematoria: niches, memorials and inscriptions

        1. 172ZA.Niches, memorials and inscriptions: introduction

        2. 172ZB.Allowable deductions: niches

        3. 172ZC.Allowable deductions: memorials

        4. 172ZD.Allowable deductions: inscriptions

        5. 172ZE.Costs of the building

    16. Chapter 11A Trade profits: changes in trading stock

      1. Introduction

        1. 172A.Meaning of “trading stock”

        2. 172AA.Chapter not to apply where cash basis used

      2. Transfers of trading stock between trade and trader

        1. 172B.Trading stock appropriated by trader

        2. 172C.Trading stock supplied by trader

      3. Other disposals not made in the course of trade

        1. 172D.Disposals not made in the course of trade

        2. 172E.Acquisitions not made in the course of trade

      4. Relationship with transfer pricing rules

        1. 172F.Transfer pricing rules to take precedence

    17. Chapter 12 Trade profits: valuation of stock and work in progress on cessation of trade

      1. Valuation of trading stock

        1. 173.Valuation of trading stock on cessation

        2. 174.Meaning of “trading stock”

        3. 175.Basis of valuation of trading stock

        4. 176.Sale basis of valuation: sale to unconnected person

        5. 177.Sale basis of valuation: sale to connected person

        6. 178.Sale basis of valuation: election by connected persons

        7. 179.Connected persons

        8. 180.Cost to buyer of stock valued on sale basis of valuation

        9. 181.Meaning of “sale” and related expressions

      2. Valuation of work in progress

        1. 182.Valuation of work in progress on cessation

        2. 183.Meaning of “work in progress”

        3. 184.Basis of valuation of work in progress

        4. 185.Election for valuation at cost

      3. Supplementary

        1. 186.Determination of questions ...

    18. Chapter 13 Deductions from profits: unremittable amounts

      1. 187.Professions and vocations

      2. 188.Application of Chapter

      3. 188A.Chapter not to apply where cash basis used

      4. 189.Relief for unremittable amounts

      5. 190.Restrictions on relief

      6. 191.Withdrawal of relief

    19. Chapter 14 Disposal and acquisition of know-how

      1. 191A.Chapter not to apply where cash basis used

      2. 192.Meaning of “know-how” etc.

      3. 193.Disposal of know-how if trade continues to be carried on

      4. 194.Disposal of know-how as part of disposal of all or part of a trade

      5. 195.Seller controlled by buyer etc.

    20. Chapter 15 Basis periods

      1. Introduction

        1. 196.Professions and vocations

      2. Accounting date

        1. 197.Meaning of “accounting date”

      3. The normal rules

        1. 198.General rule

        2. 199.First tax year

        3. 200.Second tax year

        4. 201.Tax year in which there is no accounting date

        5. 202.Final tax year

      4. Apportionment of profits

        1. 203.Apportionment etc. of profits to basis periods

      5. Overlap profits and losses

        1. 204.Meaning of “overlap period” and “overlap profit”

        2. 204A.Overlap profit and trading allowance under Chapter 1 of Part 6A

        3. 205.Deduction for overlap profit in final tax year

        4. 206.Restriction on bringing losses into account twice

        5. 207.Treatment of business start-up payments received in an overlap period

      6. Rules where first accounting date shortly before end of tax year

        1. 208.When the late accounting date rules apply

        2. 209.Rule if there is an accounting date

        3. 210.Rules if there is no accounting date

      7. Slight variations in accounting date

        1. 211.Treating middle date as accounting date

        2. 212.Consequence of treating middle date as accounting date

        3. 213.Circumstances in which middle date not treated as accounting date

      8. Special rules if accounting date changes

        1. 214.When a change of accounting date occurs

        2. 215.Change of accounting date in third tax year

        3. 216.Change of accounting date in later tax year

        4. 217.Conditions for basis period to end with new accounting date

        5. 218.Commercial reasons for change of accounting date

        6. 219.The year after an ineffective change of accounting date

        7. 220.Deduction for overlap profit on change of accounting date

    21. Chapter 16 Averaging profits of farmers and creative artists

      1. 221.Claim for averaging of fluctuating profits

      2. 221A.Claim not available where cash basis used

      3. 222.Circumstances in which claim for two-year averaging may be made

      4. 222A.Circumstances in which claim for five-year averaging may be made

      5. 223.Adjustment of profits

      6. 224.Effect of adjustment

      7. 225.Effect of later adjustment of profits

    22. CHAPTER 16ZA COMPENSATION FOR COMPULSORY SLAUGHTER OF ANIMALS

      1. 225ZA.Application of Chapter 16ZA

      2. 225ZAA.Chapter not to apply where cash basis used

      3. 225ZB.Right to make claim

      4. 225ZC.Book value

      5. 225ZD.Effect of claim for spreading profits

      6. 225ZE.Adjustment: cessation of trading

      7. 225ZF.Time limits etc for spreading claim

      8. 225ZG.Interpretation

    23. Chapter 16A Oil activities

      1. Application of Chapter

        1. 225ZH.Chapter not to apply where cash basis used

      2. Basic definitions

        1. 225A.Meaning of “oil extraction activities”

        2. 225B.Meaning of “oil rights”

        3. 225C.Meaning of “ring fence income”

        4. 225D.Meaning of “ring fence trade”

        5. 225E.Other definitions

      3. Oil valuation

        1. 225F.Valuation where market value taken into account under section 2 of OTA 1975

        2. 225G.Valuation where disposal not sale at arm's length

        3. 225H.Valuation where excess of nominated proceeds

        4. 225I.Valuation where relevant appropriation but no disposal

        5. 225J.Valuation where appropriation to refining etc

      4. Regional development grants

        1. 225K.Reduction of expenditure by reference to regional development grant

        2. 225L.Adjustment as a result of regional development grant

      5. Tariff receipts etc

        1. 225M.Tariff receipts etc

      6. Abandonment guarantees

        1. 225N.Expenditure on abandonment guarantees

        2. 225O.Relief for reimbursement expenditure under abandonment guarantees

        3. 225P.Payment under abandonment guarantee not immediately applied

        4. 225Q.Amounts excluded from section 225O(1)

      7. Abandonment expenditure

        1. 225R.Introduction to section 225S

        2. 225S.Relief for expenditure incurred by a participator in meeting defaulter's abandonment expenditure

        3. 225T.Reimbursement by defaulter in respect of certain abandonment expenditure

      8. Interest on repayment of APRT

        1. 225U.Interest on repayment of APRT

      9. Receipts arising from decommissioning

        1. 225V.Receipts arising from decommissioning

    24. Chapter 17 Adjustment income

      1. Introduction

        1. 226.Professions and vocations

      2. Adjustment on change of basis

        1. 227.Application of Chapter

        2. 227A.Application of Chapter where cash basis used

        3. 227B.Cash basis treatment: full relief under Chapter 1 of Part 6A (trading allowance)

        4. 227C.Application of Chapter where section 227B applies

        5. 228.Adjustment income and adjustment expense

        6. 229.Income charged

        7. 230.Person liable

        8. 231.Calculation of the adjustment

      3. Treatment of adjustment income and adjustment expense

        1. 232.Treatment of adjustment income

        2. 233.Treatment of adjustment expense

      4. Expenses previously brought into account

        1. 234.No adjustment for certain expenses previously brought into account

      5. Realising or writing off assets

        1. 235.Cases where adjustment not required until assets realised or written off

      6. Mark to market

        1. 236.Change from realisation basis to mark to market

        2. 237.Election for spreading if section 236 applies

      7. Spreading of adjustment income: barristers and advocates

        1. 238.Spreading on ending of exemption for barristers and advocates

        2. 239.Election to accelerate charge under section 238

      8. Spreading of adjustment income on leaving cash basis

        1. 239A.Spreading on leaving cash basis

        2. 239B.Election to accelerate charge under section 239A

      9. Supplementary

        1. 240.Liability of personal representatives if person liable dies

    25. Chapter 17A Cash basis: adjustments for capital allowances

      1. Introduction

        1. 240A.Professions and vocations

      2. Adjustments on entering cash basis

        1. 240B.“Entering the cash basis”

        2. 240C.Unrelieved qualifying expenditure: Parts 2, 7 and 8 of CAA 2001

        3. 240CA.Unrelieved qualifying expenditure: Part 5 of CAA 2001

        4. 240D.Assets not fully paid for

      3. Successions where predecessor and successor are connected persons

        1. 240E.Effect of election where predecessor and successor are connected persons

    26. Chapter 18 Post-cessation receipts

      1. Introduction

        1. 241.Professions and vocations

      2. Charge to tax on post-cessation receipts

        1. 242.Charge to tax on post-cessation receipts

        2. 243.Extent of charge to tax

        3. 244.Income charged

        4. 245.Person liable

      3. Meaning of “post-cessation receipts”

        1. 246.Basic meaning of “post-cessation receipt”

        2. 247.Other rules about what counts as post-cessation receipts

      4. Sums treated as post-cessation receipts

        1. 248.Debts paid after cessation

        2. 249.Debts released after cessation

        3. 250.Receipts relating to post-cessation expenditure

        4. 251.Transfer of rights if transferee does not carry on trade

      5. Sums that are not post-cessation receipts

        1. 252.Transfer of trading stock or work in progress

        2. 253.Lump sums paid to personal representatives for copyright etc.

      6. Deductions

        1. 254.Allowable deductions

        2. 255.Further rules about allowable deductions

      7. Reliefs

        1. 256.Treatment of post-cessation receipts

        2. 257.Election to carry back

    27. Chapter 19 Supplementary

      1. 258.Changes in trustees and personal representatives

      2. 259.Meaning of “statutory insolvency arrangement”

  4. Part 3 Property income

    1. Chapter 1 Introduction

      1. 260.Overview of Part 3

      2. 261.Provisions which must be given priority over Part 3

      3. 262.Priority between Chapters within Part 3

    2. Chapter 2 Property businesses

      1. Introduction

        1. 263.Introduction

      2. Basic meaning of UK and overseas property business

        1. 264.UK property business

        2. 265.Overseas property business

      3. Generating income from land

        1. 266.Meaning of “generating income from land”

        2. 267.Activities not for generating income from land

    3. Chapter 3 Profits of property businesses: basic rules

      1. Charge to tax on profits of a property business

        1. 268.Charge to tax on profits of a property business

        2. 269.Territorial scope of charge to tax

        3. 270.Income charged

        4. 271.Person liable

      2. Basis of calculation of profits

        1. 271A.Basis of calculation of profits: GAAP required

        2. 271B.Calculation of profits in accordance with GAAP

        3. 271C.Basis of calculation of profits: cash basis required

        4. 271D.Calculation of profits on the cash basis

      3. Calculation of profits : application of trading income rules

        1. 271E.Profits of a property business: application of trading income rules

        2. 272.Application of trading income rules: GAAP

        3. 272ZA.Application of trading income rules: cash basis

      4. Calculation of profits: other general rules

        1. 272A.Restricting deductions for finance costs related to residential property

        2. 272B.Meaning of “costs of a dwelling-related loan”

        3. 273.Amounts not brought into account as part of a property business

        4. 274.Relationship between rules prohibiting and allowing deductions

      5. Tax reductions for non-deductible costs of a dwelling-related loan

        1. 274A.Reduction for individuals: entitlement

        2. 274AA.Reduction for individuals: calculation

        3. 274B.Reduction for accumulated or discretionary trust income: entitlement

        4. 274C.Reduction for accumulated or discretionary trust income: calculation

      6. Apportionment of profits

        1. 275.Apportionment etc. of profits to tax year

        2. 275A.Rule if person starts to carry on business after 31 March

        3. 275B.Rule if there is a late accounting date

        4. 275C.Election to disapply late accounting date rules

    4. Chapter 4 Profits of property businesses: lease premiums etc.

      1. Introduction

        1. 276.Introduction

        2. 276A.Application of Chapter to property businesses using cash basis

      2. Amounts treated as receipts: leases

        1. 277.Lease premiums

        2. 278.Amount treated as lease premium where work required

        3. 279.Sums payable instead of rent

        4. 280.Sums payable for surrender of lease

        5. 281.Sums payable for variation or waiver of terms of lease

        6. 281A.Sums to which sections 277 to 281 do not apply

        7. 282.Assignments for profit of lease granted at undervalue

        8. 283.Provisions supplementary to section 282

      3. Other amounts treated as receipts

        1. 284.Sales with right to reconveyance

        2. 285.Sale and leaseback transactions

        3. 286.Provisions supplementary to sections 284 and 285

      4. Additional calculation rule for reducing certain receipts

        1. 287.Circumstances in which additional calculation rule applies

        2. 288.The additional calculation rule

        3. 289.The additional calculation rule: special cases

        4. 290.Meaning of “unused amount” and “unreduced amount”

      5. Deductions in relation to certain receipts

        1. 291.Deductions for expenses under section 292

        2. 292.Tenants under taxed leases treated as incurring expenses

        3. 293.Restrictions on section 292 expenses: the additional calculation rule

        4. 294.Restrictions on section 292 expenses: lease of part of premises

      6. Limit on effect of additional calculation rule and deductions

        1. 295.Limit on reductions and deductions

      7. Relationship with ICTA

        1. 296.Corporation tax receipts treated as taxed receipts

        2. 297.Taking account of reductions in corporation tax receipts

        3. 298.Taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA

      8. Certain administrative provisions

        1. 299.Payment of tax by instalments

        2. 300.Statement of accuracy for purposes of section 282

        3. 301.Claim for repayment of tax payable by virtue of section 284

        4. 302.Claim for repayment of tax payable by virtue of section 285

      9. Determinations affecting liability of more than one person

        1. 302A.Appeals against proposed determinations

        2. 302B.Section 302A: supplementary

        3. 302C.Determination by tribunal

      10. Effective duration of lease

        1. 303.Rules for determining effective duration of lease

        2. 304.Applying the rules in section 303

        3. 305.Information about effective duration of lease

      11. Other interpretative provisions

        1. 306.Provisions about premiums

        2. 307.Interpretation

    5. Chapter 5 Profits of property businesses: other rules about receipts and deductions

      1. Cash basis: application of Chapter

        1. 307A.Cash basis: application of Chapter

      2. Property businesses using cash basis

        1. 307B.Cash basis: capital expenditure

        2. 307C.Cash basis: deduction for costs of loans

        3. 307D.Cash basis: modification of deduction for costs of loans

      3. Property businesses that use, or have used, cash basis

        1. 307E.Capital receipts under, or after leaving, cash basis

        2. 307F.Deemed capital receipts under, or after leaving, cash basis

      4. Property allowance

        1. 307G.Property allowance

      5. Furnished accommodation: receipts and deductions

        1. 308.Furnished lettings

      6. ...

        1. Wear and tear allowance election

        2. Meaning of “eligible” in relation to a dwelling-house

        3. Effect of wear and tear allowance election

      7. Furnished accommodation: rent-a-room relief

        1. 309.Rent-a-room relief

      8. Treatment of receipts on acquisition of business

        1. 310.Acquisition of business: receipts from transferor's UK property business

      9. Reverse premiums as receipts

        1. 311.Reverse premiums

      10. Deduction for replacement of domestic items

        1. 311A.Replacement domestic items relief

      11. Deductions for expenditure on energy-saving items

        1. 312.Deduction for expenditure on energy-saving items

        2. 313.Restrictions on relief

        3. 314.Regulations

      12. Deductions for expenditure on sea walls

        1. 315.Deduction for expenditure on sea walls

        2. 316.Transfer of interest in premises

        3. 317.Ending of lease of premises

        4. 318.Transfer involving company within the charge to corporation tax

      13. Mineral royalties

        1. 319.Relief in respect of mineral royalties

      14. Apportionments on sale of land

        1. 320.Nature of item apportioned on sale of estate or interest in land

      15. Mutual business

        1. 321.Mutual business

    6. Chapter 6 Commercial letting of furnished holiday accommodation

      1. Introduction

        1. 322.Introduction

      2. Definition

        1. 323.Meaning of “commercial letting of furnished holiday accommodation”

        2. 324.Meaning of “relevant period” in sections 325 and 326

        3. 325.Meaning of “qualifying holiday accommodation”

        4. 326.Under-used holiday accommodation: averaging elections

        5. 326A.Under-used holiday accommodation: letting condition not met

      3. Separate profit calculations

        1. 327. Relief: UK property business

        2. 328. Relevant UK earnings for pension purposes: UK property business

        3. 328A.Capital allowances and loss relief: overseas property business

        4. 328B.Relevant UK earnings for pension purposes: overseas property business

    7. Chapter 7 Adjustment income

      1. Adjustment on change of basis

        1. 329.Application of Chapter

        2. 329A.Application of Chapter where cash basis used

        3. 330.Adjustment income and adjustment expense

        4. 331.Income charged

        5. 332.Person liable

      2. Treatment of adjustment income and adjustment expense

        1. 333.Treatment of adjustment income

        2. 334.Treatment of adjustment expense

      3. Spreading of adjustment income on leaving cash basis

        1. 334A.Spreading on leaving cash basis and related election

    8. CHAPTER 7A Cash basis: adjustments for capital allowances

      1. 334B.“Entering the cash basis”

      2. 334C.Unrelieved qualifying expenditure

      3. 334D.Assets not fully paid for

      4. 334E.Effect of election where predecessor and successor are connected persons

    9. Chapter 8 Rent receivable in connection with a UK section 12(4) concern

      1. Charge to tax on rent receivable in connection with a UK section 12(4) concern

        1. 335.Charge to tax on rent receivable in connection with a UK section 12(4) concern

        2. 336.Meaning of “rent receivable in connection with a UK section 12(4) concern”

        3. 337.Income charged

        4. 338.Person liable

      2. Management expenses of owner of mineral rights

        1. 339.Deduction for management expenses of owner of mineral rights

      3. Mineral royalties

        1. 340.Relief in respect of mineral royalties

        2. 341.Meaning of “mineral lease or agreement” and “mineral royalties”

        3. 342.Extended meaning of “mineral royalties” etc. in Northern Ireland

        4. 343.Power of Commissioners to determine what counts as “mineral royalties”

    10. Chapter 9 Rent receivable for UK electric-line wayleaves

      1. Charge to tax on rent receivable for UK electric-line wayleaves

        1. 344.Charge to tax on rent receivable for a UK electric-line wayleave

        2. 345.Meaning of “rent receivable for a UK electric-line wayleave”

        3. 346.Extent of charge to tax

        4. 347.Income charged

        5. 348.Person liable

    11. Chapter 10 Post-cessation receipts

      1. Charge to tax on post-cessation receipts

        1. 349.Charge to tax on post-cessation receipts

        2. 350.Extent of charge to tax

        3. 351.Income charged

        4. 352.Person liable

      2. Meaning of “post-cessation receipts”

        1. 353.Basic meaning of “post-cessation receipt”

        2. 354.Other rules about what counts as a “post-cessation receipt”

        3. 355.Transfer of rights if transferee does not carry on UK property business

      3. Supplementary

        1. 356.Application to businesses within the charge to corporation tax

    12. Chapter 11 Overseas property income

      1. 357.Charge to tax on overseas property income

      2. 358.Meaning of “overseas property income”

      3. 359.Income charged

      4. 360.Person liable

    13. Chapter 12 Supplementary

      1. 361.Changes in trustees and personal representatives

      2. 362.Effect of company starting or ceasing to be within charge to income tax

      3. 363.Overseas property businesses and overseas land: adaptation of rules

      4. 364.Meaning of “lease” and “premises”

  5. Part 4 Savings and investment income

    1. Chapter 1 Introduction

      1. 365.Overview of Part 4

      2. 366.Provisions which must be given priority over Part 4

      3. 367.Priority between Chapters within Part 4

      4. 368.Territorial scope of Part 4 charges

      5. 368A.Interpretation of special rules for temporary non-residents

    2. Chapter 2 Interest

      1. Charge to tax on interest

        1. 369.Charge to tax on interest

        2. 370.Income charged

        3. 370A.Valuation of interest not paid in cash

        4. 371.Person liable

      2. Other income taxed as interest

        1. 372.Building society dividends

        2. 373.Open-ended investment company interest distributions

        3. 374.Date when interest payments under section 373 made

        4. 375.Interpretation of sections 373 and 374

        5. 376.Authorised unit trust interest distributions

        6. 377.Date when interest payments under section 376 made

        7. 378.Interpretation of sections 376 and 377

        8. 378A.Offshore fund distributions

        9. 379.Payments by registered societies or certain co-operatives

        10. 380.Funding bonds

        11. 380A.FSCS payments representing interest

        12. 381.Discounts

    3. Chapter 2A Disguised interest

      1. 381A.Charge to tax on disguised interest

      2. 381B.Income charged

      3. 381C.Person liable

      4. 381D.Avoidance of double taxation

      5. 381E.Exception for returns from certain shares

    4. Chapter 3 Dividends etc. from UK resident companies and tax treated as paid in respect of certain distributions

      1. Introduction

        1. 382.Contents of Chapter

      2. Charge to tax on dividends and other distributions

        1. 383.Charge to tax on dividends and other distributions

        2. 384.Income charged

        3. 385.Person liable

      3. Purchase by company of exempt employee shareholder shares

        1. 385A.No charge to tax on purchase by company of exempt employee shareholder shares

      4. Amounts treated as dividends

        1. 386.Open-ended investment company dividend distributions

        2. 387.Date when dividends paid under section 386

        3. 388.Interpretation of sections 386 and 387

        4. 389.Authorised unit trust dividend distributions

        5. 390.Date when dividends paid under section 389

        6. 391.Interpretation of sections 389 and 390

      5. Shares in Schedule 2 share incentive plans (“SIPs”)

        1. 392.SIP shares: introduction

        2. 393.Later charge where cash dividends retained in SIPs are paid over

        3. 394.Distribution when dividend shares cease to be subject to SIP

        4. 395.Reduction in tax due in cases within section 394

        5. 396.Interpretation of sections 392 to 395

      6. Other amounts treated as distributions

        1. 396A.Arrangements offering a choice of capital or income return

        2. 396B.Distributions in a winding up

      7. ... Payment and deduction of tax

        1. 397.Tax credits for qualifying distributions of UK resident companies : UK residents and eligible non-UK residents

        2. 397A.Tax credits for distributions of non-UK resident companies: UK residents and eligible non-UK residents

        3. 397AA.Tax credit under section 397A: conditions

        4. 397B.Tax credits under section 397A: manufactured overseas dividends

        5. 397BA.Meaning of “qualifying territory”

        6. 397C.Meaning of “minority shareholder”

        7. 398.Increase in amount or value of dividends where tax credit available

        8. 399.Tax treated as paid on distributions received by non-UK resident persons

        9. 400.Non-qualifying distributions

        10. 401.Relief: distribution repaying shares or security issued in earlier distribution

        11. 401A.Recovery of overpaid tax credit etc

        12. 401B.Power to obtain information

      8. Anti-avoidance

        1. 401C.Temporary non-residents

    5. Chapter 4 Dividends from non-UK resident companies

      1. Charge to tax on dividends from non-UK resident companies

        1. 402.Charge to tax on dividends from non-UK resident companies

        2. 403.Income charged

        3. 404.Person liable

        4. 404A.Distributions in a winding up

      2. Shares in Schedule 2 share incentive plans (“SIPs”)

        1. 405.SIP shares: introduction

        2. 406.Later charge where cash dividends retained in SIPs are paid over

        3. 407.Dividend payment when dividend shares cease to be subject to SIP

        4. 408.Reduction in tax due in cases within section 407

      3. Anti-avoidance

        1. 408A.Temporary non-residents

    6. Chapter 5 Stock dividends from UK resident companies

      1. 409.Charge to tax on stock dividend income

      2. 410.When stock dividend income arises

      3. 410A.Conversion etc of bonus share capital

      4. 411.Income charged

      5. 412.Cash equivalent of share capital

      6. 413.Person liable

      7. 413A.Temporary non-residents

      8. 414.Income tax treated as paid

      9. 414A.Interpretation of Chapter

    7. Chapter 6 Release of loan to participator in close company

      1. 415.Charge to tax under Chapter 6

      2. 416.Income charged

      3. 417.Person liable

      4. 418.Relief where borrowers liable as settlors

      5. 419.Loans and advances to persons who die

      6. 420.Loans and advances to trustees of trusts that have ended

      7. 420A.Temporary non-residents

      8. 421.Income tax treated as paid

      9. 421A.Power to obtain information

    8. Chapter 7 Purchased life annuity payments

      1. 422.Charge to tax on purchased life annuity payments

      2. 423.Meaning of “purchased life annuity”

      3. 424.Income charged

      4. 425.Person liable

      5. 426.Annuity payments received after deduction of tax

    9. Chapter 8 Profits from deeply discounted securities

      1. Charge to tax under Chapter 8

        1. 427.Charge to tax on profits from deeply discounted securities

        2. 428.Income charged

        3. 429.Person liable

      2. Deeply discounted securities

        1. 430.Meaning of “deeply discounted security”

        2. 431.Excluded occasions of redemption

        3. 432.Securities which are not deeply discounted securities

        4. 433.Meaning of “excluded indexed security”

        5. 434.Securities issued in separate tranches: preliminary

        6. 435.Securities issued in separate tranches: basic rule

        7. 436.Deeply discounted securities issued in separate tranches: nominal value rule

      3. Disposals

        1. 437.Transactions which are disposals

        2. 438.Timing of transfers and acquisitions

      4. Calculating profits

        1. 439.Calculating the profit from disposals

        2. 440.Market value disposals

        3. 441.Market value acquisitions

        4. 442.Securities issued in accordance with qualifying earn-out right

      5. Special rules for strips of government securities

        1. 443.Application of this Chapter to strips of government securities

        2. 444.Meaning of “strip” in Chapter 8

        3. 445.Strips of government securities: acquisitions and disposals

        4. 446.Strips of government securities: relief for losses

        5. 447.Restriction of profits on strips by reference to original acquisition cost

        6. 448.Restriction of losses on strips by reference to original acquisition cost

        7. 449.Strips of government securities: manipulation of acquisition, transfer or redemption payments

        8. 450.Market value of strips etc.

        9. 451.Market value of strips etc. quoted in foreign stock exchange lists

        10. 452.Power to modify this Chapter for strips

      6. Special rules for corporate strips

        1. 452A.Application of this Chapter to corporate strips

        2. 452B.Meaning of “interest-bearing corporate security” in Chapter 8

        3. 452C.Conversion of interest-bearing corporate securities into corporate strips

        4. 452D.Conversion into corporate strips: lower level conversions

        5. 452E.Meaning of “corporate strip” in Chapter 8

        6. 452F.Corporate strips: acquisitions and disposals

        7. 452G.Corporate strips: manipulation of acquisition, transfer or redemption payments

      7. Special rules for listed securities held since 26th March 2003

        1. 453.Application of sections 454 to 456

        2. 454.Listed securities held since 26th March 2003: relief for losses

        3. 455.Listed securities held since 26th March 2003: calculating the profit or loss on disposals

        4. 456.Securities issued to connected persons etc. at excessive price: subsequent transfers to connected persons

      8. Trustees

        1. 457.Trustees

        2. 458.Non-UK resident trustees

      9. Miscellaneous and supplementary

        1. 459.Transfer of assets abroad

        2. 460.Minor definitions

    10. Chapter 9 Gains from contracts for life insurance etc.

      1. Charge to tax under Chapter 9

        1. 461.Charge to tax under Chapter 9

        2. 462.When gains arise from policies and contracts

        3. 463.Income charged

        4. 463A.Restricted relief qualifying policies: disapplication of section 485 etc

        5. 463B.Restricted relief qualifying policies: allowable premiums

        6. 463C.Restricted relief qualifying policies: personal representatives and trustees with deceased settlors

        7. 463D.Restricted relief qualifying policies: assignments and events following assignments etc

        8. 463E.Transitional protection for policies issued in respect of insurances made on or after 21 March 2012 but before 6 April 2013

      2. Person liable etc.

        1. 464.Person liable for tax: introduction

        2. 465.Person liable: individuals

        3. 465A.Amounts for which individuals liable to be treated as highest part of total income

        4. 465B.Temporary non-residents

        5. 466.Person liable: personal representatives

        6. 467.Person liable: UK resident trustees

        7. 468.Non-UK resident trustees and foreign institutions

        8. 469.Two or more persons interested in policy or contract

        9. 470.Interests in rights under a policy or contract for section 469

        10. 471.Determination of shares etc.

        11. 472.Trusts created by two or more persons

      3. Policies and contracts to which Chapter 9 applies

        1. 473.Policies and contracts to which Chapter 9 applies: general

        2. 473A.Connected policies or contracts treated as single policy or contract

        3. 474.Special rules: qualifying policies

        4. 475.Special rules: personal portfolio bonds

        5. 476.Special rules: foreign policies

        6. 477.Special rules: certain older policies and contracts

        7. 478.Exclusion of mortgage repayment policies

        8. 479.Exclusion of pension policies

        9. 480.Exclusion of excepted group life policies

        10. 481.Excepted group life policies: conditions about benefits

        11. 482.Excepted group life policies: conditions about persons intended to benefit

        12. 483.Exclusion of credit union group life policies

      4. When chargeable events occur: general

        1. 484.When chargeable events occur

        2. 485.Disregard of certain events in relation to qualifying policies

        3. 486.Exclusion of maturity of capital redemption policies in certain circumstances

        4. 487.Disregard of certain assignments

        5. 488.Disregard of some events after alterations of life insurance policy terms

        6. 489.Conditions applicable to alterations of life insurance policy terms

        7. 490.Last payment under guaranteed income bonds etc. treated as total surrender

      5. Calculating gains: general

        1. 491.Calculating gains: general rules

        2. 492.The total benefit value of a policy or contract

        3. 493.The value of a policy or contract

        4. 494.The total allowable deductions for a policy or contract

        5. 495.Disregard of certain amounts in calculating gains under section 491

        6. 496.Modification of section 494: qualifying endowment policies held as security for company debts

        7. 497.Disregard of trivial inducement benefits

      6. Part surrenders and assignments: periodic calculations and excess events

        1. 498.Requirement for periodic calculations in part surrender or assignment cases

        2. 499.Meaning of “insurance year” and “final insurance year”

        3. 500.Events treated as part surrenders

        4. 501.Part surrenders: loans

        5. 502.Exception from section 501 for loans to buy life annuities

        6. 503.Exception from section 501 for certain loans under qualifying policies

        7. 504.Part surrenders: payments under guaranteed income bonds etc.

        8. 505.Assignments etc. involving co-ownership

        9. 506.Assignments occurring when there is a co-ownership transaction

        10. 507.Method for making periodic calculations under section 498

        11. 507A.Recalculating gains under section 507

        12. 508.The value of rights partially surrendered or assigned

        13. 509.Chargeable events in certain cases where periodic calculations show gains

      7. Transaction-related calculations and part surrender or assignment events

        1. 510.Requirement for transaction-related calculations in certain part surrender and assignment cases

        2. 511.Method for making transaction-related calculations under section 510

        3. 512.Available premium left for relevant transaction

        4. 512A.Recalculating gains under section 511

        5. 513.Special rules for part surrenders and assignments in final insurance year

        6. 514.Chargeable events where transaction-related calculations show gains

      8. Personal portfolio bonds

        1. 515.Requirement for annual calculations in relation to personal portfolio bonds 9

        2. 516.Meaning of “personal portfolio bond”

        3. 517.Policies and contracts which are not personal portfolio bonds

        4. 518.The index categories

        5. 519.The index selection conditions

        6. 520.The property categories

        7. 521.The property selection conditions

        8. 522.Method for making annual calculations under section 515

        9. 523.The total amount of personal portfolio bond excesses

        10. 524.The total amount of part surrender gains

        11. 525.Chargeable events where annual calculations show gains

        12. 526.Power to make regulations about personal portfolio bonds

      9. Reductions from gains

        1. 527.Reduction for sums taken into account otherwise than under Chapter 9

        2. 528.Reduction in amount charged on basis of non-UK residence where individual liable for tax

        3. 528A.Reduction in amount charged on basis of non-UK residence of deceased person

        4. 529.Exceptions to section 528

      10. Income tax treated as paid and reliefs

        1. 530.Income tax treated as paid etc.

        2. 531.Exceptions to section 530

        3. 532.Relief for policies and contracts with European Economic Area insurers

        4. 533.Meaning of “comparable EEA tax charge”

        5. 534.Regulations providing for relief in other cases where foreign tax chargeable

        6. 535.Top slicing relief

        7. 536.Top slicing relieved liability: one chargeable event

        8. 537.Top slicing relieved liability: two or more chargeable events

        9. 538.Recovery of tax from trustees

      11. Deficiencies

        1. 539.Relief for deficiencies

        2. 540.When deficiencies arise: events following calculation events

        3. 541.Calculation of deficiencies

      12. Rebated or reinvested commission

        1. 541A.Effect of rebated or reinvested commission in certain cases

        2. 541B.Section 541A: further definitions

      13. Supplementary

        1. 542.Replacement of qualifying policies

        2. 543.Issue time of qualifying policy replacing foreign policy

        3. 544.Application of Chapter to policies and contracts in which companies interested

        4. 545.Minor definitions

        5. 546.Table of provisions subject to special rules for older policies and contracts

    11. Chapter 10 ...

    12. Chapter 11 Transactions in deposits

      1. 551.Charge to tax on profits from disposal of deposit rights

      2. 552.Meaning of “deposit rights”

      3. 553.Income charged

      4. 554.Person liable

    13. Chapter 12 Disposals of futures and options involving guaranteed returns

      1. Charge to tax under Chapter 12

        1. 555.Charge to tax under Chapter 12

        2. 556.Income charged

        3. 557.Person liable

        4. 558.Meaning of “future”, “option” etc.

      2. When disposals involve guaranteed returns

        1. 559.When disposals involve guaranteed returns

        2. 560.Production of guaranteed returns

        3. 561.The return from one or more disposals

      3. When disposals of futures and options occur

        1. 562.When disposals of futures and options occur: general

        2. 563.Timing of certain grants of options where related disposals occur later

        3. 564.Deemed disposal where futures run to delivery or options are exercised

        4. 565.Interpretation of section 564

        5. 566.When transactions are related

      4. Losses

        1. 567.Losses

      5. Trustees

        1. 568.Special rule for certain income of trustees

      6. Transfer of assets abroad

        1. 569.Anti-avoidance: transfer of assets abroad

    14. Chapter 13 Sales of foreign dividend coupons

      1. 570.Charge to tax under Chapter 13

      2. 571.Meaning of “foreign holdings” etc.

      3. 572.Income charged

      4. 573.Person liable

  6. Part 5 Miscellaneous income

    1. Chapter 1 Introduction

      1. 574.Overview of Part 5

      2. 575.Provisions which must be given priority over Part 5

      3. 576.Priority between Chapters within Part 5

      4. 577.Territorial scope of Part 5 charges

      5. 577A.Territorial scope of Part 5 charges: receipts from intellectual property

    2. Chapter 2 Receipts from intellectual property

      1. Introduction

        1. 578.Contents of Chapter

      2. Charge to tax on non-trading income from intellectual property

        1. 579.Charge to tax on royalties and other income from intellectual property

        2. 580.Income charged under section 579

        3. 581.Person liable for tax under section 579

        4. 582.Deductions in calculating certain income charged under section 579

      3. Disposals of know-how

        1. 583.Charge to tax on income from disposals of know-how

        2. 584.Exceptions to charge under section 583

        3. 585.Income charged under section 583

        4. 586.Person liable for tax under section 583

      4. Sales of patent rights

        1. 587.Charge to tax on income from sales of patent rights

        2. 588.Income charged under section 587

        3. 589.Person liable for tax under section 587

        4. 590.UK resident sellers: spreading rules

        5. 591.Non-UK resident sellers: election for spreading

        6. 592.Further provision about elections for spreading: instalments

        7. 593.Death of seller

        8. 594.Winding up of a body corporate

        9. 595.Deduction of tax from payments to non-UK residents

        10. 596.Adjustments where tax has been deducted

        11. 597.Licences connected with patents

        12. 598.Rights to acquire future patent rights

        13. 599.Sums paid for Crown use etc. treated as paid under licence

      5. Relief from income tax on patent income

        1. 600.Relief for expenses: patent income

        2. 601.How relief is given under section 600

      6. Payments received after deduction of tax

        1. 602.Payments received after deduction of tax

      7. Supplementary

        1. 603.Contributions to expenditure

        2. 604.Contributions not made by public bodies nor eligible for tax relief

        3. 605.Exchanges

        4. 606.Apportionment where property sold together

        5. 607.Questions about apportionments affecting two or more persons

        6. 608.Meaning of “capital sums” etc.

    3. CHAPTER 2A Offshore receipts in respect of intangible property

      1. Charge to tax on offshore receipts in respect of intangible property

        1. 608A.Charge to tax on UK-derived amounts

        2. 608B.Income charged under section 608A

        3. 608C.Person liable for tax under section 608A

        4. 608D.Meaning of residence

        5. 608E.Meaning of “full treaty territory”

        6. 608F.Meaning of “UK-derived amount” and “UK sales”

        7. 608G.Section 608F: apportionment of amounts

        8. 608GA.Section 608F: disregard for third party sales where intangible property makes insignificant contribution

        9. 608H.Meaning of “intangible property”

        10. 608I.Application of Chapter to certain partnerships

      2. Exemptions

        1. 608J.Exemption where limited UK sales

        2. 608JA.Exemption where company resident in specified territory

        3. 608K.Exemption where business undertaken within territory of residence

        4. 608L.Exemption where foreign tax at least half of UK tax

        5. 608M.Section 608L: the local tax amount

        6. 608MA.Exemption where income of opaque partnership taxable in full treaty territory

        7. 608MB.Exemption for certain bodies corporate that are transparent in full treaty territory

        8. 608MC.Exemption for double taxation on amounts within same control group

        9. 608N.Exemptions: further provision

      3. Recovery of tax from person in same control group

        1. 608O.Notice requiring payment from person in same control group as taxpayer

        2. 608P.Payment notice: effect

        3. 608Q.Payment notice: appeals

        4. 608R.Payment notice: effect of making payment etc

      4. Meaning of “control group” and “related person”

        1. 608S.Control groups

        2. 608T.Related persons

        3. 608U.Meaning of “51% investment” and “25% investment”

        4. 608V.Meaning of direct or indirect participation in management, control or capital

      5. General

        1. 608W.Anti-avoidance

        2. 608X.Interaction with other general provisions

        3. 608Y.Appeals against assessments

      6. Interpretation: general

        1. 608Z.Interpretation of Chapter: general

    4. Chapter 3 Films and sound recordings: non-trade businesses

      1. 609.Charge to tax on films and sound recordings businesses

      2. 610. Income charged

      3. 611.Person liable

      4. 612.Calculation of income

      5. 613.Application of trading income rules to non-trade businesses

    5. Chapter 4 Certain telecommunication rights: non-trading income

      1. 614.Charge to tax on certain telecommunication rights of a non-trader

      2. 615.Income charged

      3. 616.Person liable

      4. 617.Deductions in calculating certain income charged

      5. 618.Payments received after deduction of tax

    6. Chapter 5 Settlements: amounts treated as income of settlor or family

      1. Charge to tax under Chapter 5

        1. 619.Charge to tax under Chapter 5

        2. 619A.Income treated as highest part of settlor's total income

        3. 620.Meaning of “settlement” and “settlor”

      2. Income charged and person liable

        1. 621.Income charged

        2. 622.Person liable

      3. Rules for calculating income

        1. 623.Calculation of income

      4. Income treated as income of settlor: retained interests

        1. 624.Income where settlor retains an interest

        2. 625.Settlor's retained interest

        3. 626.Exception for outright gifts between spouses or civil partners

        4. 627.Exceptions for certain types of income

        5. 628.Exception for gifts to charities

        6. 628A.Exception for protected foreign-source income

        7. 628B.Section 628A: tainting

        8. 628C.Foreign income arising before, but remitted on or after, 6 April 2017

      5. Income treated as income of settlor: relevant children

        1. 629.Income paid to relevant children of settlor

        2. 630.Exception for gifts to charities

        3. 630A.Exception for protected foreign-source income

        4. 631.Retained and accumulated income

        5. 632.Offshore income gains

      6. Capital sums treated as income of settlor: trustees' payments

        1. 633.Capital sums paid to settlor by trustees of settlement

        2. 634.Meaning of “capital sum” and “sums paid to settlor”

        3. 635.Amount of available income

        4. 636.Calculation of undistributed income

        5. 637.Qualifications to section 636

      7. Trustees' payments: further provisions

        1. 638.Capital sums paid by way of loan or repayment of loan

        2. 639.Loans to participators in close companies

        3. 640.Grossing-up of deemed income

      8. Capital sums treated as income of settlor: connected bodies

        1. 641.Capital sums paid to settlor by body connected with settlement

        2. 642.Exception for certain loans or repayments of loans

        3. 643.Interpretation of sections 641 and 642

      9. Benefits matched with protected foreign-source income

        1. 643A.Deemed income because of benefits for settlor or close family member

        2. 643B.Meaning of “untaxed benefits total” in section 643A

        3. 643C.Meaning of “available protected income” in section 643A

        4. 643D.Reduction in section 643A income: previous capital gains tax charge

        5. 643E.Reimbursement of tax paid by settlor because of section 643A

        6. 643F.Income attributed by section 643A to user of remittance basis

        7. 643G.Section 643F(4): benefits and income “relating” to deemed income

        8. 643H.Meaning of close member of settlor's family in sections 643B to 643M

        9. 643I.Recipients of onward gifts

        10. 643J.Cases where income treated as arising to recipient of onward gift

        11. 643K.Cases where deemed income attributed to recipient of onward gift

        12. 643L.Cases where settlor liable following onward gift

        13. 643M.Onward gift to settlor or close family member by other recipient

        14. 643N.Person liable under section 643J or 643L and remittance basis applies

      10. Settlements by two or more settlors

        1. 644.Application to settlements by two or more settlors

        2. 645.Property or income originating from settlor

      11. Other supplementary provisions

        1. 646.Adjustments between settlor and trustees etc.

        2. 646A.Trustees' expenses to be rateably apportioned

        3. 647.Power to obtain information

        4. 648.Income arising under a settlement

    7. Chapter 6 Beneficiaries' income from estates in administration

      1. Charge to tax on estate income

        1. 649.Charge to tax on estate income

        2. 650.Absolute, limited and discretionary interests

        3. 651.Meaning of “UK estate” and “foreign estate”

      2. Types of estate income

        1. 652.Estate income: absolute interests in residue

        2. 653.Meaning of “the administration period” and “the final tax year”

        3. 654.Estate income: limited interests in residue

        4. 655.Estate income: discretionary interests in residue

      3. Income charged and person liable

        1. 656.Income charged: UK estates

        2. 657.Income charged: foreign estates

        3. 658.Special rules for foreign income

        4. 659.Person liable

      4. Basic amount of estate income: general calculation rules

        1. 660.Basic amount of estate income: absolute interests

        2. 661.Basic amount of estate income: limited interests

        3. 662.Basic amount of estate income: discretionary interests

        4. 663.The applicable rate for grossing up basic amounts of estate income

        5. 664.The aggregate income of the estate

      5. Further provisions for calculating estate income relating to absolute interests

        1. 665.Assumed income entitlement

        2. 666.The residuary income of the estate

        3. 667.Shares of residuary income of estate

        4. 668.Reduction in share of residuary income of estate

        5. 669.Reduction in residuary income: inheritance tax on accrued income

        6. 670.Applicable rate for determining assumed income entitlement (UK estates)

      6. Special rules for successive interests

        1. 671.Successive absolute interests

        2. 672.Successive interests: assumed income entitlement of holder of absolute interest following limited interest

        3. 673.Successive interests: payments in respect of limited interests followed by absolute interests

        4. 674.Successive interests: holders of limited interests

        5. 675.Basic amount of estate income: successive limited interests

        6. 676.Apportionments

      7. Relief where foreign estates have borne UK income tax

        1. 677.Relief where UK income tax borne by foreign estate: absolute interests

        2. 678.Relief where UK income tax borne by foreign estate: limited and discretionary interests

      8. General

        1. 679.Income from which basic amounts are treated as paid

        2. 679A.Income from which sums within section 668(1)(b) are treated as paid

        3. 680.Income treated as bearing income tax

        4. 680A.Income treated as dividend income

        5. 680B.Income treated as savings income

        6. 681.Transfers of assets etc. treated as payments

        7. 682.Assessments, adjustments and claims after the administration period

        8. 682A.Statements relating to estate income

    8. Chapter 7 Annual payments not otherwise charged

      1. 683.Charge to tax on annual payments not otherwise charged

      2. 684.Income charged

      3. 685.Person liable

      4. 685A.Settlor-interested settlements

      5. 686.Payments received after deduction of tax

    9. Chapter 8 Income not otherwise charged

      1. 687.Charge to tax on income not otherwise charged

      2. 688.Income charged

      3. 689.Person liable

      4. 689A.Temporary non-residents

  7. Part 6 Exempt income

    1. Chapter 1 Introduction

      1. 690.Overview of Part 6

    2. Chapter 2 National savings income

      1. 691.National Savings Bank ordinary account interest

      2. 692.Income from savings certificates

      3. 693.Income from Ulster Savings Certificates

    3. Chapter 3 Income from individual investment plans

      1. 694.Income from individual investment plans

      2. 694A.Deceased investors

      3. 695.Investment plans

      4. 695A.Investment plans for children

      5. 696.Plan managers

      6. 697.Special requirements for certain foreign managers

      7. 698.Requirements for discharge of foreign institution's duties

      8. 699.Non-entitlement to exemption

      9. 700.Information

      10. 701.General and supplementary powers

    4. Chapter 4 SAYE interest

      1. 702.Interest under certified SAYE savings arrangements

      2. 703.Meaning of “certified SAYE savings arrangement”

      3. 704.Types of arrangements and providers

      4. 705.Certification of arrangements

      5. 706.Withdrawal and variation of certifications and connected requirements

      6. 707.Authorisation of providers

      7. 708.Withdrawal and variation of authorisations

    5. Chapter 5 Venture capital trust dividends

      1. 709.Venture capital trust dividends

      2. 710.Treatment of shares where annual acquisition limit exceeded

      3. 711.Identification of shares after disposals

      4. 712.Identification of shares after reorganisations etc.

    6. Chapter 6 Income from FOTRA securities

      1. 713.Introduction: securities free of tax to residents abroad (“FOTRA securities”)

      2. 714.Exemption of profits from FOTRA securities

      3. 715.Interest from FOTRA securities held on trust

      4. 716.Restriction on deductions etc. relating to FOTRA securities

    7. Chapter 7 Purchased life annuity payments

      1. Partial exemption for purchased life annuity payments

        1. 717.Exemption for part of purchased life annuity payments

        2. 718.Excluded annuities

        3. 719.Extent of exemption under section 717

        4. 720.Exempt proportion: term dependent solely on duration of life

        5. 721.Exempt sum: term dependent solely on duration of life

        6. 722.Consideration for the grant of annuities

        7. 723.Determinations

        8. 724.Regulations

      2. Immediate needs annuities

        1. 725.Annual payments under immediate needs annuities

        2. 726.Meaning of “care provider”

    8. Chapter 8 Other annual payments

      1. Certain annual payments by individuals

        1. 727.Certain annual payments by individuals

        2. 728.Commercial payments

        3. 729.Payments for non-taxable consideration

        4. 730.Foreign maintenance payments

      2. Periodical payments of personal injury damages etc.

        1. 731.Periodical payments of personal injury damages

        2. 732.Compensation awards

        3. 733.Persons entitled to exemptions for personal injury payments etc.

        4. 734.Payments from trusts for injured persons

      3. Health and employment insurance payments

        1. 735.Health and employment insurance payments

        2. 736.Health and employment risks and benefits

        3. 737.Period for which payments may be made

        4. 738.Risk of significant loss

        5. 739.Conditions to be met by policies also providing other benefits

        6. 740.Conditions to be met where policies are linked

        7. 741.Aggregation of policies where employment ends for health reasons

        8. 742.Meaning of “the insured”

        9. 743.Policies for the benefit of others who contribute to premiums

      4. Payments to adopters

        1. 744.Payments to adopters, etc: England and Wales

        2. 745.Payments to adopters, etc: Scotland

        3. 746.Payments to adopters, etc: Northern Ireland

        4. 747.Power to amend sections 744 to 746

      5. Payments by persons liable to pool betting duty

        1. 748.Payments by persons liable to pool betting duty

    9. Chapter 9 Other income

      1. Interest only income

        1. 749. Repayment interest, and interest paid under repayment supplements

        2. 749A.Interest on tax overpaid

        3. 750.Interest from tax reserve certificates

        4. 751.Interest on damages for personal injury

        5. 752.Interest under employees' share schemes

        6. 753.Interest on repayment of student loan

        7. 753A.Interest on unpaid relevant contributions

        8. 754.Redemption of funding bonds

        9. 755.Interest on foreign currency securities etc. owned by non-UK residents

        10. 756.Which securities and loans are foreign currency ones for section 755

        11. 756A.Interest on certain deposits of victims of National-Socialist persecution

      2. ...

        1. 757.Interest and royalty payments: introduction

        2. 758.Exemption for certain interest and royalty payments

        3. 759.The person making the payment

        4. 760.The person beneficially entitled to the payment

        5. 761.Meaning of “25% associates”

        6. 762.Interest payments: exemption notices

        7. 763.Special relationships

        8. 764.Application of ICTA provisions about special relationships

        9. 765.Anti-avoidance

        10. 766.Interest and royalty payments: interpretation

        11. 767.Power to amend references to the Directive by order

      3. Income from commercial occupation of woodlands

        1. 768.Commercial occupation of woodlands

      4. Housing grants

        1. 769.Housing grants

      5. Schedule 2 share incentive plan distributions

        1. 770.Amounts applied by SIP trustees acquiring dividend shares or retained for reinvestment

      6. Foreign income of consular officers and employees

        1. 771.Relevant foreign income of consular officers and employees

        2. 772.Further provisions about Orders under section 771

      7. Income of non-UK residents from certain securities

        1. 773.Income from Inter-American Development Bank securities

        2. 774.Income from securities issued by designated international organisations

      8. Other

        1. 775.Income towards reducing the national debt

        2. 775A.Government bonus for savings account or other investment plan

        3. 776.Scholarship income

        4. 776A.Payments under Jobs Growth Wales Plus

        5. 777.VAT repayment supplements

        6. 778.Incentives to use electronic communications

        7. 779.Gains on commodity and financial futures

        8. 780.Disabled person's vehicle maintenance grant

        9. 781.Payments under New Deal 50plus

        10. 782.Payments under employment zone programme

        11. 782A.Domestic microgeneration

        12. 782B.Renewables obligation certificates for domestic microgeneration

        13. 782C.Volunteers etc: compensation for lost employment income

    10. Chapter 10 General

      1. 783.General disregard of exempt income for income tax purposes

  8. PART 6A Income charged under this Act: trading and property allowances

    1. CHAPTER 1 Trading allowance

      1. Introduction

        1. 783A.Relief under this Chapter

      2. Basic definitions

        1. 783AA.“Relevant trade” of an individual

        2. 783AB.“Miscellaneous income”

        3. 783AC.The individual's “relevant income”

        4. 783AD.The individual's trading allowance

      3. Full relief

        1. 783AE.Full relief: introduction

        2. 783AF.Full relief: trade profits

        3. 783AG.Full relief: miscellaneous income

      4. Partial relief

        1. 783AH.Partial relief: alternative calculation of profits: introduction

        2. 783AI.Partial relief: alternative calculation of trade profits

        3. 783AJ.Partial relief: alternative calculation of chargeable miscellaneous income

        4. 783AK.Deductible amount: splitting of trading allowance

      5. Elections

        1. 783AL.Election for full relief not to be given

        2. 783AM.Election for partial relief

      6. Exclusions from relief

        1. 783AN.Exclusion from relief: expenses deducted against rent-a-room receipts

        2. 783AO.Exclusion from relief: payments by employer

        3. 783AP.Exclusion from relief: payments by firm

        4. 783AQ.Exclusion from relief: payments by close company

      7. Interpretation

        1. 783AR.Interpretation of this Chapter

    2. CHAPTER 2 Property allowance

      1. Introduction

        1. 783B.Relief under this Chapter

      2. Basic definitions

        1. 783BA.“Relevant property business” of an individual

        2. 783BB.“Relievable receipts” of a property business

        3. 783BC.The individual's “relevant property income”

        4. 783BD.The individual's property allowance

      3. Relief if relevant property income does not exceed property allowance

        1. 783BE.Full relief: introduction

        2. 783BF.Full relief: property profits

      4. Relief if relevant property income exceeds property allowance

        1. 783BG.Partial relief: alternative calculation of property profits: introduction

        2. 783BH.Partial relief: alternative calculation of property profits

        3. 783BI.Deductible amount: splitting of property allowance

      5. Elections

        1. 783BJ.Election for full relief not to be given

        2. 783BK.Election for partial relief

      6. Exclusions from relief

        1. 783BL.Exclusion from relief: tax reduction under section 274A

        2. 783BM.Exclusion from relief: expenses deducted against rent-a-room receipts

        3. 783BN.Exclusion from relief: payments by employer

        4. 783BO.Exclusion from relief: payments by firm

        5. 783BP.Exclusion from relief: payments by close company

      7. Interpretation

        1. 783BQ.Interpretation of this Chapter

  9. Part 7 Income charged under this Act: rent-a-room and qualifying care relief

    1. Chapter 1 Rent-a-room relief

      1. Introduction

        1. 784.Overview of Chapter 1

        2. 785.Person who qualifies for relief

      2. Basic definitions

        1. 786.Meaning of “rent-a-room receipts”

        2. 787.Meaning of “residence”

        3. 788.Meaning of “total rent-a-room amount”

      3. Individual's limit

        1. 789.The individual's limit

        2. 790.Exclusive receipts condition

      4. Relief if amount does not exceed limit

        1. 791.Full rent-a-room relief: introduction

        2. 792.Full rent-a-room relief: trading income

        3. 793.Full rent-a-room relief: property income

        4. 794.Full rent-a-room relief: income chargeable under Chapter 8 of Part 5

      5. Alternative calculation of profits if amount exceeds limit

        1. 795.Alternative calculation of profits: introduction

        2. 796.Alternative calculation of profits: trading income

        3. 797.Alternative calculation of profits: property income

        4. 798.Alternative calculation of profits: income chargeable under Chapter 8 of Part 5

      6. Elections

        1. 799.Election not to apply full relief

        2. 800.Election for alternative methodof calculating profits

        3. 801.Time limit on adjustment of assessment

      7. Interpretation

        1. 802.Minor definitions

    2. Chapter 2 qualifying care relief

      1. Introduction

        1. 803.Overview of Chapter 2

        2. 804.Person who qualifies for relief

      2. 804A.Shared lives care: further condition for relief

      3. Basic definitions

        1. 805.Meaning of “qualifying care receipts”

        2. 805A.Meaning of providing qualifying care

        3. 806.Meaning of providing foster care

        4. 806A.Meaning of providing shared lives care

        5. 806B.Meaning of “residence”

        6. 807.Calculation of “total qualifying care receipts”

      4. Individual's limit

        1. 808.The individual's limit

        2. 809.Share of fixed amount: residence used by more than one carer

        3. 810.Share of fixed amount: income period not a year

        4. 811.The amount per adult or child

      5. Relief if amount does not exceed limit

        1. 812.Full qualifying care relief: introduction

        2. 813.Full qualifying care relief: trading income

        3. 814.Full qualifying care relief: income chargeable under Chapter 8 of Part 5

      6. Alternative calculation of profits if amount exceeds limit

        1. 815.Alternative calculation of profits: introduction

        2. 816.Alternative calculation of profits: trading income

        3. 817.Alternative calculation of profits: income chargeable under Chapter 8 of Part 5

        4. 818.Election for alternative methodof calculating profits

        5. 819.Adjustment of assessment

      7. Periods of account not ending on 5th April

        1. 820.Periods of account not ending on 5th April

        2. 821.Meaning of “relevant limit”

        3. 822.Full relief

        4. 823.Alternative method of calculating profits

      8. Capital allowances for foster carers carrying on trade

        1. 824.Capital allowances: introduction

        2. 825.Unallocated capital expenditure

        3. 825A.Deemed disposal event

        4. 825B.Plant or machinery used for care business

        5. 825C.Plant or machinery used for other qualifying activities

        6. 825D.Subsequent disposal events

        7. 826.Excluded capital expenditure

        8. 827.Excluded capital expenditure: subsequent treatment of asset

      9. Overlap profit

        1. 828.Overlap profit

        2. 828A.Indexation of the fixed amount and the amount per adult and child

  10. Part 8 Foreign income: special rules

    1. Chapter 1 Introduction

      1. 829.Overview of Part 8

      2. 830.Meaning of “relevant foreign income”

    2. Chapter 2 Relevant foreign income charged on remittance basis

      1. Remittance basis

        1. 831.Claims for relevant foreign income to be charged on the remittance basis

        2. 832.Relevant foreign income charged on remittance basis

        3. 832A.Section 832: temporary non-residents

        4. 832B.Section 832: deductions from remitted income

        5. 833.Income treated as remitted: repayment of UK-linked debts

        6. 834.Arrangements treated as repayment of UK-linked debts

      2. Relief for delayed remittances

        1. 835.Relief for delayed remittances

        2. 836.Relief for delayed remittances: backdated pensions

        3. 837.Claims for relief on delayed remittances

    3. Chapter 3 Relevant foreign income charged on arising basis: deductions and reliefs

      1. 838.Expenses attributable to collection or payment of relevant foreign income

      2. 839.Annual payments payable out of relevant foreign income

      3. 840.Relief for backdated pensions charged on the arising basis

      4. 840A.Claims under section 840

    4. Chapter 4 Unremittable income

      1. 841.Unremittable income: introduction

      2. 842.Claim for relief for unremittable income

      3. 843.Withdrawal of relief

      4. 844.Income charged on withdrawal of relief after source ceases

      5. 845.Valuing unremittable income

  11. Part 9 Partnerships

    1. Introduction

      1. 846.Overview of Part 9

      2. 847.General provisions

      3. 848.Assessment of partnerships

      4. 848A.Bare trusts

    2. Calculation of partners' shares

      1. 849.Calculation of firm's profits or losses

      2. 850.Allocation of firm's profits or losses between partners

      3. 850A.Profit-making period in which some partners have losses

      4. 850B.Loss-making period in which some partners have profits

      5. 850C.Excess profit allocation to non-individual partners

      6. 850D.Excess profit allocation: cases involving individuals who are not partners

      7. 850E.Payments by B out of the excess part of B's profit share

      8. 851.Calculations etc. where firm has other income or losses

    3. Firms with trading income

      1. 852.Carrying on by partner of notional trade

      2. 852A.Notional trades: indirect partners

      3. 853.Basis periods for partners' notional trades

    4. Firms with trading and other source income

      1. 854.Carrying on by partner of notional business

      2. 855.Basis periods for partners' notional businesses

      3. 855A.Notional business: indirect partners

      4. 856.Overlap profits from partners' notional businesses

    5. Firms with a foreign element

      1. 857.Partners to whom the remittance basis applies

      2. 858.Resident partners and double taxation agreements

    6. Miscellaneous

      1. 859.Special provisions about farming and property income

      2. 860.Adjustment income

      3. 861.Sale of patent rights: effect of partnership changes

      4. 862.Sale of patent rights: effect of later cessation of trade

      5. 863.Limited liability partnerships

      6. 863A.Limited liability partnerships: salaried members

      7. 863B.Condition A

      8. 863C.Condition B

      9. 863D.Condition C

      10. 863E.M's contribution to the limited liability partnership: the basic calculation

      11. 863F.M's contribution to the limited liability partnership: deemed contributions

      12. 863G.Anti-avoidance

    7. Alternative investment fund managers

      1. 863H.Election for special provision for alternative investment fund managers to apply

      2. 863I.Allocation of profit to the AIFM firm

      3. 863J.Vesting of remuneration represented by the allocated profit

      4. 863K.Vesting statements

      5. 863L.The AIFMD remuneration guidelines

  12. Part 10 General provisions

    1. Chapter 1 Introduction

      1. 864.Overview of Part 10

    2. Chapter 2 General calculation rules etc.

      1. Unpaid remuneration

        1. 865.Unpaid remuneration: non-trades and non-property businesses

      2. Employee benefit contributions

        1. 866.Employee benefit contributions: non-trades and non-property businesses

      3. Business entertainment and gifts

        1. 867.Business entertainment and gifts: non-trades and non-property businesses

      4. Social security contributions

        1. 868.Social security contributions: non-trades etc.

      5. Penalties and interest

        1. 869.Penalties and interest: non-trades etc.

      6. Crime-related payments

        1. 870.Crime-related payments: non-trades and non-property businesses

      7. Apportionment of profits

        1. 871.Apportionment etc. of miscellaneous profits to tax year

      8. Calculation of losses

        1. 872.Losses calculated on same basis as miscellaneous income

    3. Chapter 3 Supplementary and general provisions

      1. Orders and regulations

        1. 873.Orders and regulations made by Treasury or Commissioners

      2. Interpretation

        1. 874.Activities in UK sector of continental shelf

        2. 875.Meaning of “caravan”

        3. 876.Meaning of “farming” and related expressions

        4. 877.Meaning of grossing up

        5. 878.Other definitions

        6. 879.Interpretation: Scotland

        7. 880.Interpretation: Northern Ireland

      3. General and final

        1. 881.Disapplication of corporation tax: section 9 of ICTA

        2. 882.Consequential amendments

        3. 883.Commencement and transitional provisions etc.

        4. 884.Repeals and revocations

        5. 885.Abbreviations and general index in Schedule 4

        6. 886.Short title

  13. SCHEDULES

    1. SCHEDULE 1

      Consequential amendments

      1. Part 1 Income and Corporation Taxes Act 1988

        1. 1.The Income and Corporation Taxes Act 1988 (c. 1) is...

        2. 2.. . . . . . . . . ....

        3. 3.. . . . . . . . . ....

        4. 4.. . . . . . . . . ....

        5. 5.In section 4 (construction of references in Income Tax Acts...

        6. 6.. . . . . . . . . ....

        7. 7.. . . . . . . . . ....

        8. 8.(1) Amend section 15 (Schedule A) as follows.

        9. 9.(1) Amend section 18 (Schedule D) as follows.

        10. 10.Omit section 20 (Schedule F).

        11. 11.Omit section 21 (persons chargeable and basis of assessment under...

        12. 12.(1) Amend section 21A (computation of amount chargeable under Schedule...

        13. 13.In section 21B (application of other rules applicable to Case...

        14. 14.In section 21C (the Schedule A charge and mutual business)—...

        15. 15.(1) Amend section 30 (expenditure on making sea walls) as...

        16. 16.Omit sections 31A and 31B (deductions for expenditure by landlords...

        17. 17.. . . . . . . . . ....

        18. 18.. . . . . . . . . ....

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        30. 30.. . . . . . . . . ....

        31. 31.. . . . . . . . . ....

        32. 32.(1) Amend section 53 (farming and other commercial occupation of...

        33. 33.In section 55(1) (mines, quarries and other concerns) after “charged...

        34. 34.(1) Amend section 56 (transactions in deposits with and without...

        35. 35.(1) Amend section 59 (persons chargeable: Schedule D) as follows....

        36. 36.Omit sections 60 to 63A (basis of assessment for income...

        37. 37.Omit section 64 (Case III assessments).

        38. 38.Omit section 65 (Cases IV and V assessments: general).

        39. 39.Omit section 65A (Case V income from land outside UK:...

        40. 40.Omit section 68 (special rules where property etc. situated in...

        41. 41.Omit sections 68A to 68C (share incentive plans).

        42. 42.Omit section 69 (Case VI assessments).

        43. 43.Omit section 71 (computation of income tax where no profits...

        44. 44.. . . . . . . . . ....

        45. 45.In section 74(1) (general rules as to deductions not allowable)—...

        46. 46.. . . . . . . . . ....

        47. 47.Omit section 77 (incidental costs of obtaining loan finance).

        48. 48.. . . . . . . . . ....

        49. 49.. . . . . . . . . ....

        50. 50.. . . . . . . . . ....

        51. 51.Omit section 80 (expenses connected with foreign trades etc).

        52. 52.Omit section 81 (travel between trades etc).

        53. 53.Omit section 82 (interest paid to non-residents).

        54. 54.In section 82A(1) (expenditure on research and development)—

        55. 55.In section 82B(1) (payments to research associations, universities etc.)—

        56. 56.In section 83 (patent fees etc. and expenses) after “the...

        57. 57.(1) Amend section 83A (gifts in kind to charities etc.)...

        58. 58.(1) Amend section 84 (gifts to educational establishments) as follows....

        59. 59.. . . . . . . . . ....

        60. 60.. . . . . . . . . ....

        61. 61.In section 86A (charitable donations: contributions to agent's expenses) —...

        62. 62.. . . . . . . . . ....

        63. 63.. . . . . . . . . ....

        64. 64.. . . . . . . . . ....

        65. 65.. . . . . . . . . ....

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        73. 73.. . . . . . . . . ....

        74. 74.. . . . . . . . . ....

        75. 75.Omit section 95A (creative artists: relief for fluctuating profits).

        76. 76.Omit section 96 (farming and market gardening: relief for fluctuating...

        77. 77.. . . . . . . . . ....

        78. 78.. . . . . . . . . ....

        79. 79.. . . . . . . . . ....

        80. 80.. . . . . . . . . ....

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        83. 83.. . . . . . . . . ....

        84. 84.. . . . . . . . . ....

        85. 85.. . . . . . . . . ....

        86. 86.Omit section 107 (treatment of receipts as earned income).

        87. 87.Omit section 108 (election for carry-back).

        88. 88.Omit section 109 (charge under section 104: relief for individuals...

        89. 89.(1) Amend section 109A (relief for post-cessation expenditure) as follows....

        90. 90.. . . . . . . . . ....

        91. 91.Omit section 110A (change of residence) and the italic cross-heading...

        92. 92.. . . . . . . . . ....

        93. 93.Omit section 112 (partnerships controlled abroad).

        94. 94.Omit section 113 (effect for income tax of change in...

        95. 95.. . . . . . . . . ....

        96. 96.. . . . . . . . . ....

        97. 97.. . . . . . . . . ....

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        100. 100.. . . . . . . . . ....

        101. 101.. . . . . . . . . ....

        102. 102.. . . . . . . . . ....

        103. 103.In section 119(1) (rent etc. payable in connection with mines,...

        104. 104.In section 120 (rent etc. payable in respect of electric...

        105. 105.In section 121 (management expenses of owner or mineral rights)...

        106. 106.(1) Amend section 122 (relief in respect of mineral royalties)...

        107. 107.. . . . . . . . . ....

        108. 108.Omit section 127 (enterprise allowance).

        109. 109.Omit section 127A (futures and options: transactions with guaranteed returns)....

        110. 110.In section 128 (commodity and financial futures etc: losses and...

        111. 111.. . . . . . . . . ....

        112. 112.. . . . . . . . . ....

        113. 113.. . . . . . . . . ....

        114. 114.. . . . . . . . . ....

        115. 115.. . . . . . . . . ....

        116. 116.In section 231B(4)(b) (consequences of certain arrangements to pass on...

        117. 117.Omit section 232 (tax credits for non-UK residents).

        118. 118.Omit section 233 (taxation of certain recipients of distributions and...

        119. 119.. . . . . . . . . ....

        120. 120.(1) Amend section 250 (returns) as follows.

        121. 121.In section 251 (interpretation of sections 249 and 250), omit...

        122. 122.Omit sections 251A to 251D (approved share incentive plans).

        123. 123.In section 271(1)(a) (deemed surrender in cases of certain loans)...

        124. 124.. . . . . . . . . ....

        125. 125.. . . . . . . . . ....

        126. 126.. . . . . . . . . ....

        127. 127.. . . . . . . . . ....

        128. 128.Omit section 314 (divers and diving supervisors).

        129. 129.Omit section 322 (consular officers and employees).

        130. 130.Omit section 324 (designated international organisations).

        131. 131.Omit section 325 (interest on deposits with National Savings Bank)....

        132. 132.Omit section 326 (interest etc. under contractual savings schemes).

        133. 133.Omit sections 326A to 326D (tax-exempt special savings accounts).

        134. 134.Omit section 327 (disabled person's vehicle maintenance grant).

        135. 135.Omit section 327A (payments to adopters).

        136. 136.Omit sections 329 to 329AB (exemption of interest on damages...

        137. 137.Omit section 331 (scholarship income).

        138. 138.Omit section 331A (student loans: certain interest to be disregarded)....

        139. 139.Omit section 332(3) (expenditure and houses of ministers of religion)....

        140. 140.In section 332A (venture capital trusts: reliefs) omit “and distributions...

        141. 141.For section 333 substitute— Investment plan regulations Regulations under Chapter 3 of Part 6 of ITTOIA 2005...

        142. 142.Omit section 333A (personal equity plans: tax representatives).

        143. 143.. . . . . . . . . ....

        144. 144.. . . . . . . . . ....

        145. 145.(1) Amend section 337 (company beginning or ceasing to carry...

        146. 146.(1) Amend section 347A (general rule: annual payments) as follows....

        147. 147.. . . . . . . . . ....

        148. 148.. . . . . . . . . ....

        149. 149.. . . . . . . . . ....

        150. 150.. . . . . . . . . ....

        151. 151.. . . . . . . . . ....

        152. 152.In section 353(1) (relief for payments of interest) after “sections...

        153. 153.. . . . . . . . . ....

        154. 154.. . . . . . . . . ....

        155. 155.In section 370(2)(b) (relevant loan interest) for the words from...

        156. 156.. . . . . . . . . ....

        157. 157.. . . . . . . . . ....

        158. 158.In section 382(3) (provisions supplementary to sections 380 and 381)...

        159. 159.. . . . . . . . . ....

        160. 160.. . . . . . . . . ....

        161. 161.In section 385(4) (carry-forward against subsequent profits) omit “under Case...

        162. 162.In section 386(1) (carry-forward where business transferred to a company)...

        163. 163.. . . . . . . . . ....

        164. 164.. . . . . . . . . ....

        165. 165.. . . . . . . . . ....

        166. 166.. . . . . . . . . ....

        167. 167.. . . . . . . . . ....

        168. 168.. . . . . . . . . ....

        169. 169.. . . . . . . . . ....

        170. 170.In section 398 (loss relief for transactions in deposits with...

        171. 171.. . . . . . . . . ....

        172. 172.. . . . . . . . . ....

        173. 173.. . . . . . . . . ....

        174. 174.. . . . . . . . . ....

        175. 175.. . . . . . . . . ....

        176. 176.In section 431D(3)(b) (meaning of “overseas life assurance business”) after...

        177. 177.In section 434 (franked investment income etc.) omit subsection (1A)....

        178. 178.(1) Amend section 437 (general annuity business) as follows.

        179. 179.(1) Section 468J (dividend distributions of authorised unit trusts) is...

        180. 180.(1) Section 468L (interest distributions of authorised unit trusts) is...

        181. 181.. . . . . . . . . ....

        182. 182.. . . . . . . . . ....

        183. 183.. . . . . . . . . ....

        184. 184.(1) Amend section 477A (building societies: regulations for deduction of...

        185. 185.Omit section 480C (relevant deposits: computation of tax on interest)....

        186. 186.. . . . . . . . . ....

        187. 187.. . . . . . . . . ....

        188. 188.(1) Section 486 (industrial and provident societies and co-operative associations)...

        189. 189.. . . . . . . . . ....

        190. 190.. . . . . . . . . ....

        191. 191.. . . . . . . . . ....

        192. 192.. . . . . . . . . ....

        193. 193.. . . . . . . . . ....

        194. 194.. . . . . . . . . ....

        195. 195.. . . . . . . . . ....

        196. 196.(1) Amend section 504 (meaning of the “commercial letting of...

        197. 197.. . . . . . . . . ....

        198. 198.. . . . . . . . . ....

        199. 199.. . . . . . . . . ....

        200. 200.Omit section 514 (funds for reducing the national debt).

        201. 201.. . . . . . . . . ....

        202. 202.. . . . . . . . . ....

        203. 203.. . . . . . . . . ....

        204. 204.In section 527(4) (spreading of royalties over several years) at...

        205. 205.. . . . . . . . . ....

        206. 206.Omit section 529 (patent income to be earned income in...

        207. 207.. . . . . . . . . ....

        208. 208.. . . . . . . . . ....

        209. 209.. . . . . . . . . ....

        210. 210.. . . . . . . . . ....

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        220. 220.. . . . . . . . . ....

        221. 221.. . . . . . . . . ....

        222. 222.(1) Amend section 552 (information: duty of insurers) as follows....

        223. 223.In section 552ZA(3) (information: supplementary provisions) after “section 546C(7)(a)” insert...

        224. 224.(1) Amend section 552A (tax representatives) as follows.

        225. 225.In section 552B (duties of overseas insurers' tax representatives) after...

        226. 226.. . . . . . . . . ....

        227. 227.. . . . . . . . . ....

        228. 228.. . . . . . . . . ....

        229. 229.Omit section 554 (borrowings on life policies to be treated...

        230. 230.. . . . . . . . . ....

        231. 231.Omit section 557 (charge on profits).

        232. 232.In section 568(1) (deductions from profits of contributions paid under...

        233. 233.In section 570(4) (payments under certified schemes which are not...

        234. 234.. . . . . . . . . ....

        235. 235.. . . . . . . . . ....

        236. 236.. . . . . . . . . ....

        237. 237.In section 578(1) (housing grants) for “any tax purpose” substitute...

        238. 238.. . . . . . . . . ....

        239. 239.. . . . . . . . . ....

        240. 240.Omit sections 580A to 580C (relief from tax on annual...

        241. 241.Omit section 581 (borrowing in foreign currency by local authorities...

        242. 242.. . . . . . . . . ....

        243. 243.. . . . . . . . . ....

        244. 244.Omit section 583 (Inter-American Development Bank).

        245. 245.. . . . . . . . . ....

        246. 246.Omit section 585 (relief from tax on delayed remittances).

        247. 247.. . . . . . . . . ....

        248. 248.. . . . . . . . . ....

        249. 249.. . . . . . . . . ....

        250. 250.. . . . . . . . . ....

        251. 251.. . . . . . . . . ....

        252. 252.(1) Amend section 591C (cessation of approval: tax on certain...

        253. 253.(1) Amend section 592 (exempt approved schemes) as follows.

        254. 254.(1) Amend section 598 (charge to tax: repayment of employee's...

        255. 255.(1) Amend section 599 (charge to tax: commutation of entire...

        256. 256.In section 599A (charge to tax: payments out of surplus...

        257. 257.In section 601(5)(b) (charge to tax: payments to employers) for...

        258. 258.In section 602(1)(a) (regulations relating to pension fund surpluses) omit...

        259. 259.(1) Amend section 607 (pilots' benefit fund) as follows.

        260. 260.In section 608(2) (superannuation funds approved before 6th April 1980)—...

        261. 261.In section 614(2A) (exemptions and reliefs in respect of income...

        262. 262.. . . . . . . . . ....

        263. 263.(1) Amend section 623 (relevant earnings) as follows.

        264. 264.In section 644(2) (meaning of “relevant earnings”)—

        265. 265.In section 646(2) (meaning of “relevant net earnings”)—

        266. 266.(1) Amend section 648B (return of contributions after pension date)...

        267. 267.(1) Amend section 650A (charge on withdrawal of approval from...

        268. 268.(1) . . . . . . . . ....

        269. 269.. . . . . . . . . ....

        270. 270.. . . . . . . . . ....

        271. 271.Omit sections 660A and 660B (income arising under settlement where...

        272. 272.(1) Amend section 660C (nature of charge on settlor) as...

        273. 273.Omit sections 660D to 660G (settlements: supplementary provisions etc.).

        274. 274.Omit section 677 (sums paid to settlor otherwise than as...

        275. 275.Omit section 678 (capital sums paid by body connected with...

        276. 276.Omit sections 682 and 682A (ascertainment of undistributed income and...

        277. 277.. . . . . . . . . ....

        278. 278.

        279. 279.Omit section 688 (schemes for employees and directors to acquire...

        280. 280.. . . . . . . . . ....

        281. 281.

        282. 282.. . . . . . . . . ....

        283. 283.. . . . . . . . . ....

        284. 284.. . . . . . . . . ....

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        286. 286.. . . . . . . . . ....

        287. 287.. . . . . . . . . ....

        288. 288.. . . . . . . . . ....

        289. 289.Omit section 699 (relief from higher rate tax for inheritance...

        290. 290.. . . . . . . . . ....

        291. 291.. . . . . . . . . ....

        292. 292.. . . . . . . . . ....

        293. 293.. . . . . . . . . ....

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        298. 298.. . . . . . . . . ....

        299. 299.. . . . . . . . . ....

        300. 300.. . . . . . . . . ....

        301. 301.Omit section 730C (exchanges of gilts: traders etc.).

        302. 302.. . . . . . . . . ....

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        307. 307.. . . . . . . . . ....

        308. 308.. . . . . . . . . ....

        309. 309.. . . . . . . . . ....

        310. 310.In section 774(1) (transactions between dealing company and associated company)—...

        311. 311.. . . . . . . . . ....

        312. 312.. . . . . . . . . ....

        313. 313.. . . . . . . . . ....

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        321. 321.. . . . . . . . . ....

        322. 322.. . . . . . . . . ....

        323. 323.. . . . . . . . . ....

        324. 324.In section 806K(2) (application of foreign dividend provisions to branches...

        325. 325.. . . . . . . . . ....

        326. 326.In section 812(1) (withdrawal of right to tax credit of...

        327. 327.. . . . . . . . . ....

        328. 328.. . . . . . . . . ....

        329. 329.. . . . . . . . . ....

        330. 330.In section 821(1) (under-deductions from payments made before passing of...

        331. 331.(1) Section 824 (repayment supplements: individuals and others) is amended...

        332. 332.. . . . . . . . . ....

        333. 333.. . . . . . . . . ....

        334. 334.(1) Amend section 828 (orders and regulations made by the...

        335. 335.. . . . . . . . . ....

        336. 336.In section 831(3) (interpretation of ICTA) after the entry relating...

        337. 337.. . . . . . . . . ....

        338. 338.. . . . . . . . . ....

        339. 339.. . . . . . . . . ....

        340. 340.. . . . . . . . . ....

        341. 341.. . . . . . . . . ....

        342. 342.Omit Schedule 4A (creative artists: relief for fluctuating profits).

        343. 343.(1) Amend Schedule 5 (treatment of farm animals etc for...

        344. 344.Omit Schedule 5AA (guaranteed returns on transactions in futures and...

        345. 345.Omit Schedule 15A (contractual savings schemes).

        346. 346.(1) Amend Schedule 15B (venture capital trusts: relief from income...

        347. 347.. . . . . . . . . ....

        348. 348.(1) Amend Schedule 22 (reduction of pension fund surpluses) as...

        349. 349.In paragraph 11A(4) of Schedule 24 (assumptions for calculating chargeable...

        350. 350.. . . . . . . . . ....

        351. 351.. . . . . . . . . ....

        352. 352.(1) Amend Schedule 30 (transitional provisions and savings) as follows....

      2. Part 2 Other enactments

        1. Finance Act 1950 (c. 15)

          1. 353.The Finance Act 1950 is amended as follows.

          2. 354.In section 40(3) (modification of section 39 in case of...

        2. Chevening Estate Act 1959 (c. 49)

          1. 355.The Chevening Estate Act 1959 is amended as follows.

          2. 356.(1) Amend section 2 (provisions as to income tax, estate...

        3. Taxes Management Act 1970 (c. 9)

          1. 357.The Taxes Management Act 1970 is amended as follows.

          2. 358.(1) Amend section 7 (notice of liability to income tax...

          3. 359.In section 8(1AA)(b) (personal returns) for “section 231 of the...

          4. 360.In section 8A(1AA)(b) (trustee's returns) for “section 231 of the...

          5. 361.In section 9(1) (returns to include self-assessment)—

          6. 362.Omit section 9D (choice between different Cases of Schedule D)....

          7. 363.In section 12AA(1A)(b) (partnership returns) for “section 231 of the...

          8. 364.In section 12AB(5) (partnership return to include partnership statement) in...

          9. 365.In section 12AE(2) (choice between different Cases of Schedule D)...

          10. 366.(1) Amend section 18 (interest paid without deduction of income...

          11. 367.(1) Amend section 19 (information for purposes of Schedule A)...

          12. 368.In section 27(2) (settled property) for “section 660G(1) and (2)...

          13. 369.In section 30 (recovery of overpayment of tax, etc.) omit...

          14. 370.In section 30A(2) (assessing procedure) for “Schedule” substitute “ Part...

          15. 371.In section 31(3) (appeals: right of appeal) omit “9D or”....

          16. 372.In section 42(7) (procedure for making claims etc.) omit the...

          17. 373.(1) Amend section 46B (questions to be determined by Special...

          18. 374.In section 46C (jurisdiction of Special Commissioners over certain claims...

          19. 375.In section 58(3)(b) (proceedings in tax cases in Northern Ireland)...

          20. 376.In section 59A(8)(b) (payments on account of income tax) for...

          21. 377.(1) Amend section 59B (payment of income tax and capital...

          22. 378.In section 90(1)(b) (disallowance of relief for interest on tax)...

          23. 379.(1) Amend section 98 (special returns, etc) as follows.

          24. 380.In section 118(1) (interpretation) after the definition of “ITEPA 2003”...

          25. 381.In Schedule 1A (claims etc. not included in returns), in...

          26. 382.(1) Amend Schedule 1B (claims for relief involving two or...

          27. 383.In paragraph 10 of Schedule 3 (rules for assigning proceedings...

          28. 384.In paragraph 2(4) of Schedule 3A (electronic lodgement of tax...

        4. Finance Act 1971 (c. 68)

          1. 385.The Finance Act 1971 is amended as follows.

          2. 386.In paragraph 8(2)(b) of Schedule 3 (taxation of refunds of...

        5. Finance Act 1973 (c. 51)

          1. 387.. . . . . . . . . ....

          2. 388.. . . . . . . . . ....

        6. Biological Standards Act 1975 (c. 4)

          1. 389.The Biological Standards Act 1975 is amended as follows.

          2. 390.(1) Amend section 2 (exemption of the National Biological Standards...

        7. Oil Taxation Act 1975 (c. 22)

          1. 391.The Oil Taxation Act 1975 is amended as follows.

          2. 392.In section 3(2) (allowance of expenditure (other than expenditure on...

        8. Inheritance Tax Act 1984 (c. 51)

          1. 393.The Inheritance Tax Act 1984 is amended as follows.

          2. 394.In section 6(3) (excluded property), in paragraph (e)—

          3. 395.In section 21(3) (normal expenditure out of income)—

          4. 396.In section 174(1) (liabilities for which allowance is to be...

        9. Films Act 1985 (c. 21)

          1. 397.The Films Act 1985 is amended as follows.

          2. 398.In section 6(1) (certification of master negatives, tapes and discs)...

          3. 399.(1) Amend Schedule 1 (certification in case of British films)...

        10. Finance Act 1988 (c. 39)

          1. 400.The Finance Act 1988 is amended as follows.

          2. 401.(1) Amend section 38 (maintenance payments under existing obligations: 1989-90...

          3. 402.In section 73(2) (consideration for certain restrictive undertakings)—

          4. 403.In Schedule 6 (commercial woodlands) in paragraph 3(2) for “person”...

          5. 404.In Schedule 12 (building societies: change of status) for paragraph...

        11. Water Act 1989 (c. 15)

          1. 405.In section 95(11) of the Water Act 1989 (vesting in...

        12. Finance Act 1989 (c. 26)

          1. 406.The Finance Act 1989 is amended as follows.

          2. 407.In section 68(2) (principal charges to tax: employee share ownership...

          3. 408.In section 71(4) (further charges to tax: borrowing)—

          4. 409.(1) Amend section 76 (non-approved retirement benefits schemes) as follows....

          5. 410.Omit sections 112 and 113 (security: trades etc.).

          6. 411.In section 151(2) (assessment of trustees etc) in each of...

          7. 412.In paragraph 1 of Schedule 12 (close companies: administrative provisions)—...

        13. Electricity Act 1989 (c. 29)

          1. 413.In paragraph 10 of Schedule 11 to the Electricity Act...

        14. Finance Act 1990 (c. 29)

          1. 414.The Finance Act 1990 is amended as follows.

          2. 415.(1) Amend section 25 (donations to charity by individuals) as...

          3. 416.(1) Amend section 126 (pools payments for football ground improvements)...

        15. Finance Act 1991 (c. 31)

          1. 417.The Finance Act 1991 is amended as follows.

          2. 418.(1) Amend section 121 (pools payments to support games etc....

        16. Social Security Contributions and Benefits Act 1992 (c. 4)

          1. 419.The Social Security Contributions and Benefits Act 1992 is amended...

          2. 420.(1) Amend section 15 (Class 4 contributions recoverable under the...

          3. 421.In section 16(1) (application of Income Tax Acts and destination...

          4. 422.(1) Amend Schedule 2 (levy of Class 4 contributions with...

        17. Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

          1. 423.The Social Security Contributions and Benefits (Northern Ireland) Act 1992...

          2. 424.(1) Amend section 15 (Class 4 contributions recoverable under the...

          3. 425.(1) Amend Schedule 2 (Schedule 2 to the Social Security...

        18. Taxation of Chargeable Gains Act 1992 (c. 12)

          1. 426.The Taxation of Chargeable Gains Act 1992 is amended as...

          2. 427.In section 4(2) and (3) (rates of capital gains tax)...

          3. 428.(1) Amend section 6 (rates of capital gains tax: special...

          4. 429.In section 12(2) (foreign assets of person with foreign domicile)...

          5. 430.In section 41(4) (restriction of losses by reference to capital...

          6. 431.(1) Amend section 59 (partnerships) as follows.

          7. 432.In section 97(7) (supplementary provisions) for “section 660G(1) and (2)...

          8. 433.(1) Amend section 117 (meaning of qualifying corporate bond) as...

          9. 434.(1) Amend section 142 (capital gains on stock dividends) as...

          10. 435.. . . . . . . . . ....

          11. 436.In section 151 (personal equity plans) for subsections (2) and...

          12. 437.In section 151A(6) (venture capital trusts: reliefs) for the words...

          13. 438.After section 151B insert— Strips: manipulation of price: associated payment...

          14. 439.In section 156(4) (assets of Class 1) after “Taxes Act”...

          15. 440.In section 198(5)(b) (replacement of business assets used in connection...

          16. 441.(1) Amend section 241 (furnished holiday lettings) as follows.

          17. 442.In section 251(8)(b) (general provisions concerning debts) for “relevant discounted...

          18. 443.In section 254(1)(c) (definition of “a qualifying loan” for relief...

          19. 444.After section 261 insert— Know-how Disposal of know-how as part...

          20. 445.(1) Amend section 271 (miscellaneous exemptions) as follows.

          21. 446.In section 286(3) (connected persons: interpretation) for “Chapter 1A of...

          22. 447.(1) Amend section 288 (interpretation) as follows.

          23. 448.In Schedule A1 (application of taper relief), in paragraph 17(6),...

          24. 449.In Schedule 1 (application of exempt amount and reporting limits...

          25. 450.In paragraph 13(7)(h) of Schedule 5B (enterprise investment scheme: re-investment)—...

          26. 451.(1) Amend Schedule 8 (leases) as follows.

        19. Finance (No. 2) Act 1992 (c. 48)

          1. 452.The Finance (No. 2) Act 1992 is amended as follows....

          2. 453.(1) Amend section 40A (revenue nature of expenditure on master...

          3. 454.(1) Amend section 40B (allocation of expenditure to periods) as...

          4. 455.In section 40C(1) (cases where section 40B does not apply)...

          5. 456.(1) Amend section 40D (election for sections 40A and 40B...

          6. 457.(1) Amend section 41 (relief for preliminary expenditure) as follows....

          7. 458.(1) Amend section 42 (relief for production or acquisition expenditure)...

          8. 459.In section 43(1) after the definition of “expenditure of a...

          9. 460.Omit section 59 (furnished accommodation).

          10. 461.Omit Schedule 10 (furnished accommodation).

        20. Finance Act 1993 (c. 34)

          1. 462.The Finance Act 1993 is amended as follows.

          2. 463.In section 112(7) (employers' pension contributions) in the definition of...

          3. 464.(1) Amend section 171 (Lloyd's underwriters etc: taxation of income...

          4. 465.In paragraph 13(4) of Schedule 19 (Lloyd's underwriters etc: repayment...

          5. 466.(1) Amend Schedule 20A (Lloyd's underwriters: conversion to limited liability...

        21. Pension Schemes Act 1993 (c. 48)

          1. 467.The Pension Schemes Act 1993 is amended as follows.

          2. 468.In section 158(4) (disclosure of information between government departments etc.)—...

        22. Pension Schemes (Northern Ireland) Act 1993 (c. 49)

          1. 469.The Pension Schemes (Northern Ireland) Act 1993 is amended as...

          2. 470.In section 154(4) (disclosure of information between government departments etc.)—...

        23. Finance Act 1994 (c. 9)

          1. 471.The Finance Act 1994 is amended as follows.

          2. 472.(1) Amend Schedule 20 (changes for facilitating self-assessment: transitional provisions...

          3. 473.In paragraph 26 of Schedule 24 (vesting in successor company...

        24. Coal Industry Act 1994 (c. 21)

          1. 474.In paragraph 17(1) of Schedule 4 to the Coal Industry...

        25. Finance Act 1995 (c. 4)

          1. 475.The Finance Act 1995 is amended as follows.

          2. 476.Omit section 56 (foreign life policies etc).

          3. 477.In section 73(1)(a) (venture capital trusts: regulations) after “1992” insert...

          4. 478.In section 123 (prevention of exploitation of transitional provisions) for...

          5. 479.(1) Amend section 126 ( UK representatives of non-residents) as...

          6. 480.In section 128(3) (limit on income chargeable on non-residents: income...

          7. 481.(1) Amend section 154 (short rotation coppice) as follows.

          8. 482.In section 157(7) (certificates of tax deposit) for “Case III...

          9. 483.In paragraph 3(4) of Schedule 18 (deceased persons' estates) after...

          10. 484.(1) Amend Schedule 22 (prevention of exploitation of transitional provisions...

        26. Finance Act 1996 (c. 8)

          1. 485.The Finance Act 1996 is amended as follows.

          2. 486.In section 92(1) (convertible securities etc : creditor relationships) for...

          3. 487.Omit section 102 (discounted securities: income tax provisions).

          4. 488.(1) Amend section 154 ( FOTRA securities) as follows.

          5. 489.(1) Amend Schedule 9 (loan provisions: special computational provisions) as...

          6. 490.Omit Schedule 13 (discounted securities: income tax provisions).

          7. 491.(1) Amend Schedule 15 (loan relationships: savings and transitional provisions)...

        27. Finance Act 1997 (c. 16)

          1. 492.The Finance Act 1997 is amended as follows.

          2. 493.In section 79 (payments under certain life insurance policies)—

          3. 494.. . . . . . . . . ....

        28. Finance Act (No.2) 1997 (c. 58)

          1. 495.The Finance (No.2) Act 1997 is amended as follows.

          2. 496.In section 30 (tax credits)— (a) in subsection (9) after...

          3. 497.In section 37(7) (interest to be paid gross) for “sections...

          4. 498.In section 48(1) (relief for expenditure on production or acquisition...

        29. Finance Act 1998 (c. 39)

          1. 499.The Finance Act 1998 is amended as follows.

          2. 500.In section 42 (computation of profits of trade, profession or...

          3. 501.Omit section 43 (barristers and advocates in early years of...

          4. 502.(1) Amend section 46 (minor and consequential provisions about computations)...

          5. 503.In section 76(3) (power to make regulations for non-UK residents...

          6. 504.In section 123(7)— (a) for “both” substitute “ more ”,...

        30. Finance Act 1999 (c. 16)

          1. 505.The Finance Act 1999 is amended as follows.

          2. 506.In section 63(1) (treatment of transfer fees under existing contracts)...

          3. 507.(1) Amend section 65 (relevant discounted securities) as follows.

          4. 508.In section 85(7)(b) (advance pricing agreements etc. ) after “Taxes...

          5. 509.(1) Amend Schedule 6 (tax treatment of receipts by way...

        31. Commonwealth Development Corporation Act 1999 (c. 20)

          1. 510.(1) Amend paragraph 6 of Schedule 3 to the Commonwealth...

        32. Finance Act 2000 (c. 17)

          1. 511.The Finance Act 2000 is amended as follows.

          2. 512.(1) Amend section 44 (gifts to charity from certain trusts)...

          3. 513.Omit section 45 (loans to charities).

          4. 514.(1) Amend section 46 (exemption for small trades etc. )...

          5. 515.Omit section 84 (exemption of payments under New Deal 50plus)....

          6. 516.Omit section 85 (exemption of payments under Employment Zones programmes)....

          7. 517.Omit section 87 (treatment of certain telecommunication rights).

          8. 518.In section 143(2) (power to provide incentives to use electronic...

          9. 519.In section 155 (interpretation) at the end insert “ and...

          10. 520.In Schedule 12 (provision of services through an intermediary), in...

          11. 521.In Schedule 15 (the corporate venturing scheme), in paragraph 99(3),...

          12. 522.In Schedule 22 (tonnage tax), in paragraph 144(3), for “Chapter...

          13. 523.Omit Schedule 23 (treatment of certain telecommunication rights).

        33. Capital Allowances Act 2001 (c. 2)

          1. 524.The Capital Allowances Act 2001 is amended as follows.

          2. 525.In section 4 (capital expenditure) for subsection (5) substitute—

          3. 526.(1) Amend section 15 (qualifying activities) as follows.

          4. 527.(1) Amend section 16 (ordinary Schedule A businesses) as follows....

          5. 528.(1) Amend section 17 (furnished holiday lettings businesses) as follows....

          6. 529.In section 20(1) (employments and offices) for “section 314 of...

          7. 530.In section 23(2) (expenditure unaffected by sections 21 and 22)...

          8. 531.In section 28(2) (thermal insulation of industrial buildings) for “Schedule...

          9. 532.In section 33(8)(b) (personal security) for “Schedule A” substitute “...

          10. 533.In section 35(1)(a) (expenditure on plant or machinery for use...

          11. 534.In section 38(a) (production of animals etc)—

          12. 535.(1) Amend section 63 (cases in which disposal value is...

          13. 536.(1) Amend section 106 (the designated period) as follows.

          14. 537.(1) Amend section 108 (effect of disposal to connected person...

          15. 538.(1) Amend section 112 (excess allowances: connected persons) as follows....

          16. 539.(1) Amend section 115 (prohibited allowances: connected persons) as follows....

          17. 540.(1) Amend section 122 (short-term leasing by buyer, lessee etc)...

          18. 541.(1) Amend section 125 (other qualifying purposes) as follows.

          19. 542.In section 154(3) (further registration requirement) for paragraph (b) substitute—...

          20. 543.In section 155(1) (changes in the persons carrying on qualifying...

          21. 544.In section 156 (connected persons) for subsection (2) substitute—

          22. 545.In section 162(2) (ring fence trade a separate qualifying activity)—...

          23. 546.In section 248 (ordinary Schedule A businesses)—

          24. 547.In section 252 (mines, transport undertakings etc)—

          25. 548.In section 258(4) (special leasing: income tax) for “taxed under...

          26. 549.(1) Amend section 263 (qualifying activities carried on in partnership)...

          27. 550.(1) Amend section 265 (successions: general) as follows.

          28. 551.In 268(1) (successions by beneficiaries) for paragraph (b) and the...

          29. 552.In section 282 (buildings outside the United Kingdom) for “applicable...

          30. 553.In section 326(1) (interpretation of section 325) in the definition...

          31. 554.In section 331(1)(b) (capital value provisions: interpretation)—

          32. 555.(1) Amend section 353 (lessors and licensors) as follows.

          33. 556.(1) Amend section 354 (buildings temporarily out of use) as...

          34. 557.In section 390(1) (interpretation of section 389) in the definition...

          35. 558.(1) Amend section 392 (Schedule A businesses) as follows.

          36. 559.In section 393B(4) (meaning of “qualifying expenditure”) after “the profits...

          37. 560.(1) Amend section 393T (giving effect to allowances and charges)...

          38. 561.(1) Amend section 406 (reduction where premium relief previously allowed)...

          39. 562.In section 454(1)(c) (qualifying expenditure) after “an election under” insert...

          40. 563.In section 455(4) (excluded expenditure) after “goodwill under” insert “...

          41. 564.In section 462(3) (disposal values) after “goodwill under” insert “...

          42. 565.In section 479(4) (persons having qualifying non-trade expenditure: income tax)...

          43. 566.In section 481(5)(b) (anti-avoidance: limit on qualifying expenditure) after “in...

          44. 567.In section 483(c) (meaning of “income from patents”) after “payable...

          45. 568.In section 488(3)(a) (balancing allowances) for “section 113(1)” to “to...

          46. 569.(1) Amend section 529 (giving effect to allowances and charges)...

          47. 570.In section 536(5)(a) (contributions not made by public bodies and...

          48. 571.In section 558(1)(c) (effect of partnership changes) for the words...

          49. 572.(1) Amend section 559 (effect of successions) as follows.

          50. 573.In section 577(1) (definitions) in the definition of “property business”...

          51. 574.(1) Amend Schedule 1 (abbreviations and defined expressions) as follows....

        34. Finance Act 2002 (c. 23)

          1. 575.The Finance Act 2002 is amended as follows.

          2. 576.In section 64(1) (adjustment on change of basis) after “to...

          3. 577.(1) Amend Schedule 16 (community investment tax relief) as follows....

          4. 578.(1) Amend Schedule 22 (computation of profits: adjustment of change...

          5. 579.(1) Amend paragraph 64 of Schedule 25 (transitional provisions concerning...

          6. 580.In Schedule 29 (gains and losses of a company from...

        35. Proceeds of Crime Act 2002 (c. 29)

          1. 581.The Proceeds of Crime Act 2002 is amended as follows....

          2. 582.In section 319(2) (source of income) for “Case 6 of...

          3. 583.(1) Amend Schedule 10 (tax) as follows.

        36. Income Tax (Earnings and Pensions) Act 2003 (c. 1)

          1. 584.The Income Tax (Earnings and Pensions) Act 2003 is amended...

          2. 585.In section 6(5) (exception to charge to tax on employment...

          3. 586.In section 61(1) (application of provisions to workers under arrangements...

          4. 587.In section 178 (exception for loans where interest qualifies for...

          5. 588.In section 180(5) (threshold for benefit of loan to be...

          6. 589.In section 189(3)(a) (exception where double charge) for “section 677...

          7. 590.In section 215 for “section 331(1) of ICTA” substitute “...

          8. 591.In section 302(4) (exemption of consular employees' employment income), in...

          9. 592.After section 325 insert— Health and employment insurance payments (1) No liability to income tax in respect of employment...

          10. 593.In section 357(2) (business entertainment and gifts: exception where employer's...

          11. 594.In Chapter 2 of Part 5, after section 360 insert—...

          12. 595.In section 394(2) (charge on benefit to which Chapter 2...

          13. 596.In section 397(1) (certain lump sums: calculation of amount taxed...

          14. 597.In section 399(1)(b) (employment-related loans: interest treated as paid) omit...

          15. 598.In section 476 (charge on occurrence of chargeable event) for...

          16. 599.In section 477(7) (chargeable events) for “(charge under Case VI...

          17. 600.(1) Amend section 493 (no charge on acquisition of dividend...

          18. 601.For section 496 (no charge on cash dividend retained for...

          19. 602.In section 497(3) (limitations on charges on shares ceasing to...

          20. 603.In section 502(4)(a) (meaning of “capital receipt” in section 501)...

          21. 604.(1) Amend section 515 (tax advantages and charges under other...

          22. 605.In section 516(4) (approved SAYE option schemes), in the definition...

          23. 606.(1) Amend section 575 (taxable pension income: foreign pensions) as...

          24. 607.(1) Amend section 613 (taxable pension income: foreign annuities) as...

          25. 608.(1) Amend section 631 (taxable pension income: pre-1973 pensions paid...

          26. 609.(1) Amend section 635 (taxable pension income: foreign voluntary annual...

          27. 610.After section 644 insert— Health and employment insurance payments (1) No liability to income tax arises in respect of...

          28. 611.After section 646 insert— Foreign pensions of consular employees (1) No liability to income tax arises in respect of...

          29. 612.In section 655(2) (structure of Part 10) for the entries...

          30. 613.(1) Amend section 679 (taxable social security income: foreign benefits)...

          31. 614.After section 681 insert— Foreign benefits of consular employees (1) No liability to income tax arises in respect of...

          32. 615.After section 716 (alteration of amounts by Treasury order) insert—...

          33. 616.(1) Amend Schedule 1 (abbreviations and defined expressions) as follows....

          34. 617.(1) Amend Schedule 2 (approved share incentive plans) as follows....

          35. 618.(1) Amend Schedule 3 (approved SAYE option schemes) as follows....

          36. 619.In Schedule 4 (approved CSOP schemes), in paragraph 12(3), for...

          37. 620.(1) Amend Schedule 5 (enterprise management incentives) as follows.

        37. Finance Act 2003 (c. 14)

          1. 621.The Finance Act 2003 is amended as follows.

          2. 622.In section 151(2) (non-resident companies: extent of charge to income...

          3. 623.Omit section 176 (foster carers).

          4. 624.(1) Amend Schedule 24 (restriction of deductions for employee benefit...

          5. 625.In Schedule 34 (policies of life insurance etc: miscellaneous amendments),...

          6. 626.Omit Schedule 36 (foster carers).

        38. Courts Act 2003 (c. 39)

          1. 627.In section 101(4)(a) of the Courts Act 2003 (bankruptcy of...

        39. Child Trust Funds Act 2004 (c. 6)

          1. 628.In section 14(1) of the Child Trust Funds Act 2004...

        40. Finance Act 2004 (c. 12)

          1. 629.The Finance Act 2004 is amended as follows.

          2. 630.In section 71(3)(b) (collection and recovery of sums to be...

          3. 631.Omit section 97 (exemption from income tax for certain interest...

          4. 632.Omit section 98 (exemption from income tax for certain interest...

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

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

          7. 635.(1) Amend section 101 (payment of royalties without deduction at...

          8. 636.In section 102 (claim for tax deducted at source from...

          9. 637.Omit section 103 (special relationships).

          10. 638.Omit section 104 (anti-avoidance).

          11. 639.Omit section 106 (transitional provision).

          12. 640.In section 119(4) (individuals benefited by film relief) for “,...

          13. 641.In section 123(1) (meaning of “film-related loss”) for “any of...

          14. 642.In section 127(2) (losses derived from exploiting licence: individuals in...

          15. 643.(1) Amend section 130 (“A significant amount of time”) as...

          16. 644.In section 186(1)(b) (scheme investments: income) for “which would” to...

          17. 645.(1) Amend section 189(2) (meaning of “relevant UK earnings”) as...

          18. 646.In section 196(2) (relief for employers in respect of contributions...

          19. 647.In section 197(10)(a) (spreading relief) after “charged under” insert “...

          20. 648.In section 199(2)(a) (deemed contributions) at the beginning insert “...

          21. 649.In section 200(a) (no other relief for employers in connection...

          22. 650.(1) Amend section 246 (restriction of deduction for non-contributory provision)...

          23. 651.(1) Amend section 249 of FA 2004 (amendments of ITEPA...

          24. 652.In section 280(1) (abbreviations and general index for Part 4)...

          25. 653.(1) Amend Schedule 15 (charge to income tax on benefit...

          26. 654.In paragraph 1(4) and (6) of Schedule 24, for the...

          27. 655.In paragraph 12 of Schedule 35 (pension schemes etc: minor...

          28. 656.(1) Amend Schedule 36 (pension schemes etc: transitional provisions and...

        41. Pensions Act 2004 (c. 35)

          1. 657.The Pensions Act 2004 is amended as follows.

          2. 658.In Schedule 3 (restricted information held by the Regulator: certain...

          3. 659.In Schedule 8 (restricted information held by the Board: certain...

    2. SCHEDULE 2

      Transitionals and savings etc.

      1. Part 1 General provisions

        1. Continuity of the law: general

          1. 1.The repeal of provisions and their enactment in a rewritten...

          2. 2.Paragraph 1 does not apply to any change made by...

          3. 3.Any subordinate legislation or other thing which—

          4. 4.(1) Any reference (express or implied) in this Act, another...

          5. 5.(1) Any reference (express or implied) in any enactment, instrument...

          6. 6.(1) Paragraphs 1 to 5 have effect instead of section...

        2. General saving for old transitional provisions and savings

          1. 7.(1) The repeal by this Act of a transitional or...

        3. General saving for section 9(5) of ICTA

          1. 8.(1) Sub-paragraph (2) applies if— (a) as a result of...

        4. Partnerships involving companies

          1. 9.(1) References in this Act to any person are to...

        5. Interpretation

          1. 10.(1) In this Part— “enactment” includes an enactment comprised in...

      2. Part 2 Changes in the law

        1. 11.(1) This paragraph applies if, in the case of any...

      3. Part 3 Trading income

        1. Unpaid remuneration

          1. 12.(1) This paragraph applies for the purposes of section 36....

        2. Employee benefit contributions

          1. 13.Sections 38 to 44 do not apply to deductions that...

          2. 14.(1) In relation to any time before the coming into...

          3. 15.(1) Subject to sub-paragraph (7), sections 38 to 44 apply...

        3. Car or motor cycle hire

          1. 16.In relation to expenditure incurred under a contract entered into...

          2. 17.Section 50 does not apply to expenditure which is incurred—...

        4. Crime-related payments

          1. 18.Section 55(1)(b) does not apply to expenditure which was incurred...

        5. Tenants under taxed leases

          1. 19.(1) This paragraph relates to the operation of sections 60...

          2. 20.(1) This paragraph provides for the application of section 61...

        6. Seconded employees

          1. 21.(1) This paragraph applies if— (a) the period of account...

        7. Training courses for employees

          1. 22.(1) This paragraph applies if, without the modifications to section...

          2. 23.(1) This paragraph applies if— (a) at any time during...

        8. Contributions to urban regeneration companies

          1. 24.Section 82 does not apply to any contribution which was...

        9. Local enterprise agencies

          1. 25.To the extent that any function of the Scottish Ministers...

        10. Expenses connected with patents, designs and trade marks

          1. 26.(1) This paragraph applies if— (a) fees have been incurred,...

        11. Payments to Export Credits Guarantee Department

          1. 27.(1) This paragraph applies if— (a) a sum is payable,...

        12. Reverse premiums

          1. 28.(1) Sections 101 and 102 do not apply to a...

        13. Sums recovered under insurance policies etc.

          1. 29.(1) Section 106 does not apply if—

        14. Meaning of “designated educational establishment”

          1. 30.To the extent that the power of the National Assembly...

        15. Films and sound recordings

          1. 31.(1) This paragraph applies to— (a) production expenditure in respect...

          2. 32.(1) Sections 134 and 135 do not apply in relation...

          3. 33.Section 137 does not apply in relation to expenditure which...

          4. 34.Sections 138 and 138A do not apply in relation to...

          5. 35.(1) Any requirement in Chapter 9 of Part 2 for...

          6. 36.Sections 139 and 140 do not apply if—

          7. 37.Sections 139(4) and 141(3) do not apply to any film...

          8. 38.The requirement in section 140 for the acquisition to be...

        16. Certain telecommunication rights

          1. 39.Chapter 10 of Part 2 does not apply to an...

          2. 40.(1) That Chapter also does not apply to an IRU...

        17. Dealers in securities etc: taxation of amounts taken to reserves

          1. 41.(1) Section 149 does not apply in relation to periods...

        18. Purchase or sale of woodlands

          1. 42.Section 156 does not apply if the purchase mentioned in...

        19. Ministers of religion

          1. 43.(1) This paragraph applies if— (a) expenses have been incurred,...

        20. Waste disposal

          1. 44.If the predecessor ceased to carry on the trade carried...

          2. 45.If the trade carried on by the trader was started...

          3. 46.Section 167(2) does not apply for the purposes of sections...

        21. Valuation of trading stock on cessation

          1. 47.(1) This paragraph applies if— (a) a period of account...

        22. Apportionment of profits or losses to tax years before tax year 2005-06

          1. 48.(1) This paragraph applies if— (a) a period of account...

        23. Treatment of business start-up payments received in an overlap period

          1. 49.(1) There is an exception to the rule that, subject...

        24. Profits or losses of a trade, profession or vocation previously chargeable in accordance with section 65(1) of ICTA

          1. 50.(1) This paragraph applies if— (a) a person carries on...

        25. Profits of mines, quarries and other concerns not chargeable by reference to a basis period

          1. 51.(1) This paragraph applies if any profits or losses arising...

        26. Overlap profit: pre-April 1994 trades, professions and vocations

          1. 52.(1) This paragraph applies in the case of a trade,...

          2. 53.(1) This paragraph applies in the case of income which—...

          3. 54.The repeal by this Act of paragraphs 2, 6 and...

        27. Averaging profits of farmers and creative artists

          1. 55.(1) The first tax years which may be the subject...

        28. Adjustment on change of basis

          1. 56.(1) Chapter 17 of Part 2 applies to a change...

          2. 57.(1) Subject to sub-paragraph (3), section 232 applies before 6th...

          3. 58.If— (a) an individual has made an election under paragraph...

          4. 59.Section 104(4) of ICTA (which, despite its repeal, applies in...

        29. Post-cessation receipts

          1. 60.(1) Subject to sub-paragraph (4), section 256 applies before 6th...

          2. 61.Chapter 18 of Part 2 does not apply in relation...

      4. Part 4 Property income

        1. Apportionment of profits or losses to tax years before tax year 2005-06

          1. 62.(1) This paragraph applies if— (a) a period of account...

        2. Lease premiums

          1. 63.Section 277 does not apply in relation to a lease...

        3. Lease premiums: sums payable instead of rent

          1. 64.Section 279 does not apply in relation to a lease...

        4. Lease premiums: sums payable for surrender of lease

          1. 65.Section 280 does not apply in relation to a lease...

        5. Lease premiums: assignments for profit of lease granted at undervalue

          1. 66.Section 282 does not apply in relation to a lease...

        6. Lease premiums: pre-commencement receipts treated as taxed receipts

          1. 67.(1) This paragraph relates to the operation of sections 287...

        7. Lease premiums: taking account of reductions in pre-commencement receipts

          1. 68.(1) This paragraph applies if— (a) in calculating the amount...

        8. Lease premiums: taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA

          1. 69.(1) Sub-paragraph (2) applies if— (a) in calculating the profits...

        9. Lease premiums: rules for determining effective duration of lease

          1. 70.(1) In relation to a lease granted after 12th June...

          2. 71.(1) In relation to a lease granted before 13th June...

        10. Reverse premiums

          1. 72.(1) Section 311 does not apply to a reverse premium—...

        11. Deductions for expenditure on energy-saving items

          1. 73.Sections 312 to 314 do not apply to expenditure incurred...

        12. Commercial letting of furnished holiday accommodation

          1. 74.(1) Subject to sub-paragraph (4), Chapter 6 of Part 3...

          2. 75.(1) Subject to sub-paragraph (3), section 504A of ICTA (as...

        13. Adjustment on change of basis

          1. 76.(1) Chapter 7 of Part 3 applies to a change...

        14. Meaning of “mineral royalties”

          1. 77.The definition of “mineral royalties” in section 341(2) does not...

      5. Part 5 Savings and investment income: general

        1. Open-ended investment companies: saving for powers to make provision corresponding to provisions applicable to unit trusts

          1. 78.(1) Despite the enactment by this Act in the OEIC...

        2. Stock dividends issued in respect of shares issued before 6 April 1975

          1. 78A.(1) This paragraph applies if— (a) share capital is issued...

        3. Deeply discounted securities issued in accordance with qualifying earn-out right

          1. 79.Despite the repeal by this Act of section 104(4) of...

        4. Deeply discounted securities: deemed transfers of strips on 5th April

          1. 80.(1) Despite the repeal by this Act of paragraph 14(4)...

        5. Deeply discounted securities: restriction of profits and losses on strips

          1. 81.(1) Sections 447 and 448 (restriction of profits and losses...

        6. Deeply discounted securities: saving for charities' losses

          1. 82.The references in section 454(4) and (5) to trustees include...

        7. Deeply discounted securities: saving for pension trustees' losses

          1. 83.The references in section 454(4) and (5) to trustees include...

        8. Exclusion of deeply discounted securities from section 711 to 728 of ICTA (accrued income profits)

          1. 84.Securities only fall within paragraph (f) of section 710(3) of...

        9. Gains from contracts for life insurance etc: foreign policies of life insurance

          1. 85.(1) This paragraph modifies the application of—

        10. Gains from contracts for life insurance etc: exclusion of pension policies

          1. 86.(1) Subject to sub-paragraph (4), before 6th April 2006 Chapter...

        11. Gains from contracts for life insurance etc: rights partially assigned

          1. 87.Section 505 (assignments involving co-ownership) does not have effect in...

          2. 88.(1) This paragraph applies if a calculation under section 507...

        12. Gains from contracts for life insurance etc: regulations providing for relief where foreign tax chargeable

          1. 89.Regulations made under section 534 by virtue of paragraph 4...

        13. Gains from contracts for life insurance etc: pure protection group life policies

          1. 90.(1) For the purposes of Chapter 9 of Part 4,...

        14. Gains from contracts for life insurance etc: assessment of trustees etc

          1. 91.Despite paragraph 4(1) of this Schedule, the references in section...

        15. Transactions in deposits

          1. 92.Section 551 (charge to income tax on profits from disposal...

          2. 93.(1) This paragraph applies if— (a) a right falling within...

        16. Disposals of futures and options involving guaranteed returns: certain pre-6th February 1998 transactions

          1. 94.(1) A transaction consisting in the running of a future...

        17. Disposals of futures and options involving guaranteed returns: rates of tax for pension trustees

          1. 95.. . . . . . . . . ....

      6. Part 6 Savings and investment income: insurance contracts and policies made before certain dates

        1. Pre-20th March 1968 policies and contracts excluded from Chapter 9 of Part 4

          1. 96.(1) Chapter 9 of Part 4 does not apply to—...

        2. Pre-27th March 1974 policies and contracts: disapplication of section 500(c)

          1. 97.Section 500(c) (events treated as part surrenders: loan by insurer)...

        3. Pre-27th March 1974 contracts: disapplication of section 531(3)(c)

          1. 98.Section 531(3)(c) (certain contracts for life annuities excluded from section...

        4. Pre-10th December 1974 contracts for a life annuity: disapplication of section 484(1)(d)

          1. 99.Section 484(1)(d) (chargeable events: death in case of contract for...

        5. Pre-14th March 1975 policies and contracts: calculation of gains under section 507

          1. 100.(1) This paragraph applies to— (a) a policy in respect...

        6. Pre-25th March 1982 replacement policies: disapplication of section 542

          1. 101.Section 542 (replacement of qualifying policies) does not apply if...

        7. Certain pre-26th June 1982 policies and contracts excluded from Chapter 9 of Part 4

          1. 102.(1) Chapter 9 of Part 4 does not apply to...

        8. Certain pre-18th November 1983 policies not foreign policies of life insurance

          1. 103.(1) A policy of life insurance is not a “foreign...

        9. Certain pre-23rd February 1984 policies not foreign capital redemption policies

          1. 104.A capital redemption policy is not a “foreign capital redemption...

        10. Pre-14th March 1984 policies: disregard of amounts deducted and repaid after tax relief by deduction from premiums abolished

          1. 105.In the case of a policy issued in respect of...

        11. Certain pre-20th March 1985 policies: application of section 529(1)

          1. 106.(1) This paragraph makes provision for the application of section...

        12. Pre-14th March 1989 qualifying policies: application of section 485(2)(b) and (3)(b)

          1. 107.(1) In the case of a policy issued in respect...

        13. Pre-14th March 1989 policies and contracts: application of section 501

          1. 108.(1) In the case of a policy issued in respect...

        14. Contracts in accounting periods beginning before 1st January 1992: disapplication of sections 530 and 539(3)

          1. 109.(1) This paragraph applies to a contract for a life...

        15. Certain pre-17th March 1998 policies: application of section 529(1)

          1. 110.(1) This paragraph makes provision for the application of section...

        16. Certain pre-17th March 1998 policies not foreign policies of life insurance

          1. 111.(1) A policy of life insurance issued in respect of...

        17. Pre-17th March 1998 policy or contract: UK resident trustees

          1. 112.(1) In the case of a 1998 Act excluded policy...

        18. Certain pre-23rd March 1999 policies not foreign capital redemption policies

          1. 113.A capital redemption policy where the contract was made before...

        19. Pre-9th April 2003 policy or contract: UK resident trustees

          1. 114.(1) In the case of a 2003 Act excluded policy...

        20. Pre-9th April 2003 policy or contract: loans to trustees

          1. 115.(1) This paragraph makes provision for the application of section...

        21. Pre-9th April 2003 policy: excepted group life policies

          1. 116.(1) Sub-paragraph (2) applies to a policy if—

        22. Pre-3rd March 2004 policy or contract: calculation of deficiencies

          1. 117.(1) In the case of a 2004 Act excluded policy...

        23. Pre-1st January 2005 contracts for immediate needs annuities: income tax treated as paid

          1. 118.(1) A contract for a life annuity made before 1st...

      7. Part 7 Savings and investment income: gains from contracts for life insurance etc. (personal portfolio bonds)

        1. Pre-17th March 1998 contract or policy: conditions to be met for contract or policy not to be a personal portfolio bond

          1. 119.For the purposes of Chapter 9 of Part 4, a...

        2. The date condition

          1. 120.(1) A policy meets the date condition if it is...

        3. The non-variation condition

          1. 121.(1) A policy or contract meets the non-variation condition if...

        4. The first selection condition

          1. 122.A policy or contract meets the first selection condition at...

        5. The second selection condition

          1. 123.(1) A policy or contract meets the second selection condition...

        6. Policy holders becoming UK resident after 17th March 1998

          1. 124.(1) This paragraph applies to a policy or contract if—...

        7. Policy holders becoming permanently UK resident after 17th March 1998

          1. 125.(1) This paragraph applies to a policy or contract if—...

        8. Meaning of “permitted index”

          1. 126.In this Part of this Schedule “permitted index” means an...

        9. Meaning of “permitted property”

          1. 127.(1) In this Part of this Schedule “permitted property”, in...

        10. Other definitions

          1. 128.(1) In this Part of this Schedule “security” has the...

      8. Part 8 Miscellaneous income

        1. Intellectual property: contributions to expenditure not made by public bodies nor eligible for tax relief

          1. 129.Section 604 applies with the omission of subsection (3)(b) in...

        2. Certain telecommunication rights

          1. 130.Chapter 4 of Part 5 does not apply to an...

          2. 131.(1) That Chapter also does not apply to an IRU...

        3. Income treated as income of settlor: exception for pension income

          1. 132.(1) Subject to sub-paragraph (4), section 627 applies before 6th...

        4. Amounts treated as income of settlor: income paid to unmarried minor children of settlor

          1. 133.(1) In relation to income which— (a) arises under a...

        5. Amounts treated as income of settlor: capital sums paid to settlor by trustees of settlement

          1. 134.(1) In relation to any case which involves any previous...

        6. Amounts treated as income of settlor: capital sums paid to settlor by body connected with settlement

          1. 135.In relation to any capital sum paid to the settlor...

        7. Beneficiaries' income from estates in administration: basic amounts

          1. 136.(1) Sub-paragraph (2) applies if any previous tax year to...

        8. Beneficiaries' income from estates in administration: income treated as bearing income tax

          1. 137.A sum treated as part of the aggregate income of...

      9. Part 9 Exempt income

        1. Ulster savings certificates

          1. 138.In the case of certificates acquired before 27th July 1981,...

        2. SAYE interest

          1. 139.Any scheme which was certified as mentioned in section 326(2)(c),...

          2. 140.A European authorised institution arrangement is not an institutional arrangement...

          3. 141.(1) Neither— (a) the Treasury specification rules, nor

        3. Venture capital trust dividends: shares acquired before the tax year 2004-05

          1. 142.In the case of dividends paid in respect of shares...

        4. Purchased life annuity payments: old determinations concerning capital elements

          1. 143.(1) Any determination in relation to an annuity as to...

        5. Purchased life annuity payments: carry forward of excess capital elements

          1. 144.(1) This paragraph applies if, in the case of an...

        6. Purchased life annuity payments: penalty for false statements

          1. 145.(1) Section 723(7) (liability to penalty for false statements and...

        7. Certain annual payments by individuals

          1. 146.(1) Sections 727 (exemption for certain annual payments by individuals)...

        8. Annual payments for non-taxable consideration

          1. 147.Section 729 (exemption for payments for non-taxable consideration) applies in...

        9. Periodical payments of personal injury damages etc.

          1. 148.(1) Subject to sub-paragraphs (4) and (5), sections 731, 733...

      10. Part 10 Foster-care relief

        1. 149.(1) This paragraph applies if— (a) a disposal event is...

      11. Part 11 Foreign income: special rules

        1. Relevant foreign income charged on remittance basis: income arising before the tax year 2005-06

          1. 150.A claim may be made under section 831 (claim for...

        2. Relevant foreign income charged on remittance basis: delayed remittances

          1. 151.(1) The fact that income arose in a tax year...

        3. Relief for backdated pensions charged on arising basis

          1. 152.The fact that the earlier year referred to in subsections...

        4. Unremittable income that arose before the tax year 2005-06

          1. 153.(1) A claim may be made under section 842 (claim...

      12. Part 12 Other provisions

        1. Unpaid remuneration: non-trades and non-property businesses

          1. 154.(1) This paragraph applies for the purposes of section 865....

        2. Employee benefit contributions: non-trades and non-property businesses

          1. 155.Section 866 does not apply to deductions that would otherwise...

          2. 156.(1) Subject to sub-paragraph (3), section 866 applies before 6th...

        3. Crime-related payments: non-trades and non-property businesses

          1. 157.Section 870(2)(b) does not apply to expenditure which was incurred...

        4. Apportionment of miscellaneous profits or losses to tax years before tax year 2005-06

          1. 158.(1) This paragraph applies if— (a) a relevant period of...

        5. General deduction rules

          1. 159.Neither— (a) the inclusion of rules in section 582 for...

        6. Section 820 of ICTA

          1. 160.Section 820 of ICTA (application of Income Tax Acts from...

        7. Amendments of Part 4 of FA 2004 (pension schemes etc.)

          1. 161.The amendments made by paragraphs 644 to 651 and 655...

    3. SCHEDULE 3

      Repeals and revocations

    4. SCHEDULE 4

      Abbreviations and defined expressions

      1. Part 1 Abbreviations of Acts

      2. Part 2 Index of expressions defined in this Act etc.

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