The Personal Portfolio Bonds (Amendment of Property Categories in Section 520 of the Income Tax (Trading and Other Income) Act 2005) Regulations 2017

Amendments to section 520 of the Income Tax (Trading and Other Income) Act 2005

2.—(1) Section 520(1) of the Income Tax (Trading and Other Income) Act 2005 is amended as follows.

(2) In the table in subsection (2)—

(a) in the entry relating to Category 3, in the second column, at the end insert “or an overseas equivalent”,

(b) in the entry relating to Category 7, in the second column, omit paragraph (a), and

(c) at the end insert—

“Category 8	shares in a UK REIT or an overseas equivalent
Category 9	an interest in an authorised contractual scheme”

(3) In subsection (4), at the appropriate places insert—

““authorised contractual scheme” means a contractual scheme (within the meaning given by section 235A(1) of FISMA 2000) which is authorised for the purposes of FISMA 2000 by an authorisation order in force under section 261D(1) of that Act,” (2),

““overseas equivalent”, in relation to an investment trust or a UK REIT, means a company—

(a)

which is resident in a territory outside the United Kingdom in accordance with the law of that territory relating to taxation, and

(b)

which is, under the law of that territory, the equivalent of an investment trust or a UK REIT (respectively),”,

““UK REIT” has the same meaning as in Part 12 of CTA 2010 (see section 518(4)).” (3).

(1)

Section 520 was amended by paragraph 534 of Schedule 1 to the Income Tax Act 2007 (c. 3), paragraph 469 of Schedule 1 to the Corporation Tax Act 2010 (c. 4), section 10 of the Finance (No. 2) Act 2017 and S.I. 2013/636.

(2)

FISMA 2000 is defined by Part 1 of Schedule 4 to the Income Tax (Trading and Other Income) Act 2005 as meaning the Financial Services and Markets Act 2000 (c. 8). Section 235A was inserted by S.I. 2013/1388 and section 261D was inserted by S.I. 2014/1388 and amended by S.I. 2013/1773.

(3)

CTA 2010 is defined as the Corporation Tax Act 2010 by Part 1 of Schedule 4 to the Income Tax (Trading and Other Income) Act 2005, as amended by paragraph 472 of Part 2 of Schedule 1 to the Corporation Tax Act 2010 (c. 4).