PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE
CHAPTER I SUPPLEMENTARY CHARGING PROVISIONS
53 Farming and other commercial occupation of land (except woodlands).
1
2
All the farming carried on by any particular person or partnership or body of persons shall be treated as one trade.
3
M7Subject to subsection (4) below, the occupation of land in the United Kingdom for any purpose other than farming or market gardening shall, if the land is managed on a commercial basis and with a view to the realisation of profits, be treated as the carrying on of a trade or, as the case may be, of a part of a trade, and the F10profits thereof shall be charged to tax under Case I of Schedule D accordingly.
F84
Subsection (3) above shall not apply in relation to the occupation of land which comprises woodlands or is being prepared for use for forestry purposes.
F154 Woodlands managed on a commercial basis.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55 Mines, quarries and other concerns.
1
F11profits arising out of land in the case of any concern specified in subsection (2) below shall be charged to tax under Case I of Schedule D.
2
The concerns are—
a
mines and quarries (including gravel pits, sand pits and brickfields);
b
ironworks, gasworks, salt springs or works, alum mines or works (not being mines falling within the preceding paragraph) and waterworks and streams of water;
c
canals, inland navigation, docks and drains or levels;
d
fishings;
e
rights of markets and fairs, tolls, bridges and ferries;
f
railways and other ways;
g
other concerns of the like nature as any of the concerns specified in paragraphs (b) to (e) above.
56 Transactions in deposits with and without certificates or in debts.
1
a
the right to receive the amount, with or without interest, stated in a certificate of deposit;
b
the right to receive an amount payable with interest—
i
in a transaction in which no certificate of deposit or security is issued, and
ii
which is payable by a bank or similar institution or a person regularly engaging in similar transactions;
and the right to receive that interest.
C2C12
M3Profits or gains arising to a person from the disposal of a right to which this subsection applies or, except so far as it is a right to receive interest, from the exercise of any such right (whether by the person to whom the certificate was issued or by some other person, or, as the case may be, by the person who acquired the right in the transaction referred to in subsection (1) above or by some person acquiring it directly or indirectly from that person), shall, if not falling to be taken into account as a trading receipt, be treated as annual profits or gains chargeable to tax under Case VI of Schedule D.
3
M4Subsection (2) above does not apply in the case of the disposal or exercise of a right to receive an amount stated in a certificate of deposit or interest on such an amount—
a
if the person disposing of the right acquired it before 7th March 1973;
b
to any profits or gains arising to a fund or scheme in the case of which provision is made by section 592(2), 613, 614(1) to (3) or 620(6) for exempting the whole or part of its income from income tax;
c
in so far as they are applied to charitable purposes only, to any profits or gains arising to a charity within the meaning of section 506.
F23A
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3B
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3C
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3D
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
F44A
This section and section 56A shall not apply for the purposes of corporation tax except in relation to rights in existence before 1st April 1996.
4B
For the purposes of corporation tax, where any profits or gains arising from the disposal or exercise of a right in existence before 1st April 1996 are, or (if there were any) would be, chargeable under this section, nothing in Chapter II of Part IV of the Finance Act 1996 (loan relationships) shall require any amount relating to that disposal, or to the exercise of that right, to be brought into account for the purposes of that Chapter.
5
M5 In this section—
“certificate of deposit” means a document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable; and
“security” has the same meaning as in section F5132 of the 1992 Act.
56AF6 Disposal or exercise of rights in pursuance of deposits.
1
This section applies where there is an arrangement under which—
a
there is a right to receive an amount (with or without interest)
in pursuance of a deposit of money,
b
when the right comes into existence there is no certificate of deposit in respect of the right, and
c
the person for the time being entitled to the right is entitled to call for the issue of a certificate of deposit in respect of the right.
2
In such a case—
a
the right shall be treated as not falling within section 56(1)(b), and
b
if there is a disposal or exercise of the right before such time (if any) as a certificate of deposit is issued in respect of it, section 56(2) shall apply to it by virtue of this paragraph.
3
In the application of section 56 by virtue of this section—
a
subsection (2) shall have effect as if the words from “(whether” to “person)” read “(whether by the person originally entitled to the right or by some other person)”, and
b
subsection (3) shall have effect as if the words “stated in a certificate of deposit” read “under an arrangement”.
4
In this section “certificate of deposit” has the meaning given by section 56(5).
57 Deep discount securities.
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58 Foreign pensions.
1
M9A pension which—
a
is paid by or on behalf of a person outside the United Kingdom, and
b
is not charged under paragraph 4 of Schedule E,
shall be charged to tax under Case V of Schedule D.
2
Where—
a
a person has ceased to hold any office or employment, and
b
a pension or annual payment is paid to him, or to his widow or child or to any relative or dependant of his, by the person under whom he held the office or by whom he was employed, or by the successors of that person, and
c
that pension or annual payment is paid by or on behalf of a person outside the United Kingdom,
then, notwithstanding that the pension or payment is paid voluntarily, or is capable of being discontinued, it shall be deemed to be income for the purposes of assessment to tax and shall be assessed and charged to tax under Case V of Schedule D as income from a pension.
59 Persons chargeable.
1
M10Subject to subsections (2) and (3) below, income tax under Schedule D shall be charged on and paid by the persons receiving or entitled to the income in respect of which the tax is directed by the Income Tax Acts to be charged.
2
Income tax to be charged under Schedule D in respect of any of the concerns mentioned in section 55 shall be assessed and charged on the person carrying on the concern, or on the agents or other officers who have the direction or management of the concern or receive the profits thereof.
3
Where, in accordance with that section, income tax is charged under Schedule D on the profits of markets or fairs, or on tolls, fisheries or any other annual or casual profits not distrainable, the owner or occupier or receiver of the profits thereof shall be answerable for the tax so charged, and may retain and deduct the same out of any such profits.
4
Subsections (1) to (3) above shall not apply for the purposes of corporation tax.