M1(1)Where rent is payable in respect of any land or easement, and either—
(a)the land or easement is used, occupied or enjoyed in connection with any of the concerns specified in section 55(2); or
(b)the lease or other agreement under which the rent is payable provides for the recoupment of the rent by way of reduction of royalties or payments of a similar nature in the event of the land or easement being so used, occupied or enjoyed,
the rent shall, subject to section 122 [F1and section 201 of the 1992 Act], be charged to [F2corporation] tax under Schedule D, F3. . . .
(2)Where the rent is rendered in produce of the concern, it shall, F4. . . , be charged under Case III of Schedule D, and the value of the produce so rendered shall be taken to be the amount of the profits or income arising therefrom.
(3)For the purposes of this section—
“easement” includes any right, privilege or benefit in, over or derived from land; and
“rent” includes a rent service, rentcharge, fee farm rent F5. . . or other rent, toll, duty, royalty or annual or periodical payment in the nature of rent, whether payable in money or money’s worth or otherwise.
Textual Amendments
F1Words in s. 119(1) inserted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 14(4) (with ss. 60, 101(1), 171, 201(3)).
F2Word in s. 119(1) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 103 (with Sch. 2)
F3Words in s. 119(1) repealed (with effect in accordance with s. 145(3), Sch. 29 Pt. 8(22) Note of the repealing Act) by Finance Act 1995 (c. 4), s. 145(1), Sch. 29 Pt. 8(22)
F4Words in s. 119(2) repealed (with effect in accordance with Sch. 29 Pt. 8(22) Note of the repealing Act) by Finance Act 1995 (c. 4), Sch. 29 Pt. 8(22)
F5Word in s. 119(3) repealed (S.) (28.11.2004) by Abolition of Feudal Tenure etc. (Scotland) Act (asp 5), ss. 71, 77(2), Sch. 12 para. 50(3), {Sch. 13 Pt. 1}; S.S.I. 2003/456, art. 2
Modifications etc. (not altering text)
C1S. 119(1) excluded (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 201(2), 289 (with ss. 60, 101(1), 171, 201(3)).
Marginal Citations
M1Source—1970 s.156
M2(1)[F6Subject to subsection (1A) below,] where rent is payable in respect of any easement enjoyed in the United Kingdom in connection with any electric, telegraphic or telephonic wire or cable (not being such an easement as is mentioned in section 119(1)), the rent shall be charged to [F7corporation] tax under Schedule D F8. . . .
[F9(1A)If—
(a)the profits and gains arising to any person for any [F10accounting period] include both rent in respect of any such easement as is mentioned in subsection (1) above and amounts which are charged to [F11corporation] tax under Schedule A, and
(b)some or all of the land to which the easement relates is included in the land by reference to which the amounts charged under Schedule A arise,
then, for that period, that rent shall be charged to [F11corporation] tax under Schedule A, instead of being charged under Schedule D.]
(2)F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)In this section—
(a)“easement” and “rent” have the same meanings as in section 119;
(b)the reference to easements enjoyed in connection with any electric, telegraphic or telephonic wire or cable includes (without prejudice to the generality of that expression) references to easements enjoyed in connection with any pole or pylon supporting any such wire or cable, or with any apparatus (including any transformer) used in connection with any such wire or cable; F13. . .
(c)F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F6Words in s. 120(1) inserted (with effect in accordance with s. 60(5) of the amending Act) by Finance Act 1997 (c. 16), s. 60(2)(a)
F7Word in s. 120(1) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 104(a) (with Sch. 2)
F8Words in s. 120(1) repealed (with effect in accordance with s. 60(5), Sch. 18 Pt. 6(2) Note of the repealing Act) by Finance Act 1997 (c. 16), s. 60(2)(b), Sch. 18 Pt. 6(2)
F9S. 120(1A) inserted (with effect in accordance with s. 60(5) of the amending Act) by Finance Act 1997 (c. 16), s. 60(3)
F10Words in s. 120(1A) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 104(b) (with Sch. 2)
F11Words in s. 120(1A) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 104(c) (with Sch. 2)
F12S. 120(2)-(4) repealed (with effect in accordance with s. 60(5), Sch. 18 Pt. 6(2) Note of the repealing Act) by Finance Act 1997 (c. 16), s. 60(4), Sch. 18 Pt. 6(2)
F13S. 120(5)(c) and preceding word repealed (with effect in accordance with s. 60(5), Sch. 18 Pt. 6(2) Note of the repealing Act) by Finance Act 1997, (c. 16), s. 60(5), {Sch. 18 Pt. 6(2)}
Marginal Citations
M2Source—1970 s.157
[F14M3(1)F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
(3)In computing for the purposes of corporation tax the income of a company for any accounting period from the letting of rights to work minerals in the United Kingdom, there may be deducted any sums disbursed by the company wholly, exclusively and necessarily as expenses of management or supervision of those minerals in that period.
Textual Amendments
F14S. 121(1) substituted for s. 121(1)(2) (with effect in accordance with s.145(3) of the amending Act) by Finance Act 1995 (c. 4), s. 145(2)
F15S. 121(1) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 105, Sch. 3 (with Sch. 2)
Marginal Citations
M3Source—1970 s.158(1), (2)
(1)M4Subject to the following provisions of this section, [F16a company resident in the United Kingdom which in any] accounting period is entitled to receive any mineral royalties under a mineral lease or agreement shall be treated—
(a)F17. . . for the purposes of corporation tax on profits exclusive of chargeable gains, as if the total of the mineral royalties receivable by [F18it] under that lease or agreement in that F17. . . period and any management expenses available for set-off against those royalties in that F17. . . period were each reduced by one-half; F19. . .
F19(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
and this section shall have effect notwithstanding any provision of section 119(1) making the whole of certain kinds of mineral royalties chargeable to tax under Schedule D F20. . . .
(2)M5For the purposes of subsection (1)(a) above, “management expenses available for set-off” against royalties means—
(a)where section 121 applies in respect of the royalties, any sum F21. . . deductible from those royalties under [F22subsection (3)] of that section in computing the income of a company for the purposes of corporation tax; and
(b)if the royalties are chargeable to tax under Schedule A, any sums deductible under Part II as payments made in respect of management of the property concerned;
and if neither paragraph (a) nor paragraph (b) above applies, the reference in subsection (1)(a) above to management expenses available for set-off shall be disregarded.
(3 )F23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)In this section references to mineral royalties refer only to royalties receivable on or after 6th April 1970, and the expression “mineral royalties” means so much of any rents, tolls, royalties and other periodical payments in the nature of rent payable under a mineral lease or agreement as relates to the winning and working of minerals; and the Board may by regulations—
(a)provide whether, and to what extent, payments made under a mineral lease or agreement and relating both to the winning and working of minerals and to other matters are to be treated as mineral royalties; and
(b)provide for treating the whole of such payments as mineral royalties in cases where the extent to which they relate to matters other than the winning and working of minerals is small.
(6)In this section—
“minerals” means all minerals and substances in or under land which are ordinarily worked for removal by underground or surface working but excluding water, peat, top-soil and vegetation; and
“mineral lease or agreement” means—
a lease, profit à prendre, licence or other agreement conferring a right to win and work minerals in the United Kingdom;
a contract for the sale, or a conveyance, of minerals in or under land in the United Kingdom; and
a grant of a right under section 1 of the M6Mines (Working Facilities and Support) Act 1966, other than an ancillary right within the meaning of that Act.
(7)In the application of this section to Northern Ireland—
(a)references to mineral royalties include references to periodical payments—
(i)of compensation under section 29 or 35 of the M7Mineral Development Act (Northern Ireland) 1969 (“the 1969 Act”) or under section 4 of the M8Petroleum (Production) Act (Northern Ireland) 1964 (“the 1964 Act”); and
(ii)made as mentioned in section 37 of the 1969 Act or under section 55(4)(b) of that Act or under section 11 of the 1964 Act (payments in respect of minerals to persons entitled to a share of royalties under section 13(3) of the M9Irish Land Act 1903); and
(b)in its application to any such payments as are mentioned in paragraph (a) above, references to the mineral lease or agreement under which mineral royalties are payable shall be construed as references to the enactment under which the payments are made.
F23(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F16Words in s. 122(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 106(2)(a) (with Sch. 2)
F17Words in s. 122(1) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 106(2)(b)(d), Sch. 3 (with Sch. 2)
F18Word in s. 122(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 106(2)(c) (with Sch. 2)
F19S. 122(1)(b) and the word "and" immediately preceding it repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 12 (with ss. 60, 101(1), 171, 201(3), Sch. 11 paras. 20, 22, 26(2), 27).
F20Words in s. 122(1) repealed (1.5.1995 with effect in accordance with Note to Sch. 29 Pt. 8(22) of the amending act) by Finance Act 1995 (c. 4), Sch. 29 Pt. 8(22)
F21Words in s. 122(2) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 106(3)(a), Sch. 3 (with Sch. 2)
F22Words in s. 122(2) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 106(3)(b) (with Sch. 2)
F23S. 122(3)(8) repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch.12 (with ss. 60, 101(1), 171, 201(3), Sch. 11 paras. 20, 22, 26(2), 27).
F24S. 122(4) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 106(4), Sch. 3 (with Sch. 2)
Modifications etc. (not altering text)
C2 For regulations see Part III Vol.5.
C3S. 122(5)-(7) applied (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 203(1), 289 (with ss. 60, 101(1), 171, 201(3)).
Marginal Citations
M4Source—1970(F) s.29(1), (3); 1971 Sch.9 4
M5Source—1970(F) s.29(2)
F25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F25S. 123 repealed (with effect in accordance with Sch. 7 para. 32 of the repealing Act) by Finance Act 1996 (c. 8), Sch. 7 para. 13, Sch. 41 Pt. 5(2), Note (with Sch. 7 paras. 33-35)
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F26S. 124 repealed (with effect in accordance with s. 111(6)(b) of the repealing Act) by Finance Act 2000 (c. 17), s. 111(2), Sch. 40 Pt. 2(17), Note 2
M10(1)Any payment to which this subsection applies shall be made without deduction of income tax, shall not be allowed as a deduction in computing the income or total income of the person by whom it is made and shall not be a charge on income for the purposes of corporation tax.
(2)Subject to the following provisions of this section, subsection (1) above applies to any payment which—
[F28(a)is not interest but is—
(i)an annuity or other annual payment charged with income tax under Part 5 of ITTOIA 2005 otherwise than as relevant foreign income; or
(ii)an annuity or other annual payment charged with corporation tax under Case III of Schedule D; and]
[F29(b)is made under a liability incurred for consideration in money or money's worth all or any of which—
(i)consists of, or of the right to receive, a dividend, or
(ii)is not required to be brought into account in computing for the purposes of income tax or corporation tax the income of the person making the payment.]
(3)Subsection (1) above does not apply to—
(a)any payment which in the hands of the recipient is income falling within [F30section 627(1) or (2)(a) of ITTOIA 2005];
(b)any payment made to an individual under a liability incurred in consideration of his surrendering, assigning or releasing an interest in settled property to or in favour of a person having a subsequent interest;
(c)any annuity granted in the ordinary course of a business of granting annuities; or
(d)any annuity charged on an interest in settled property and granted at any time before 30th March 1977 by an individual to a company whose business at that time consisted wholly or mainly in the acquisition of interests in settled property or which was at that time carrying on life assurance business in the United Kingdom.
(4)In the application of this section to Scotland the references in subsection (3) above to settled property shall be construed as references to property held in trust.
(5)Subsection (1) above applies to a payment made after 5th April 1988 irrespective of when the liability to make it was incurred.
Textual Amendments
F27S. 125 title substituted (retrospective to 2.12.2004) by virtue of Finance Act 2005 (c. 7), s. 91(3)
F28S. 125(2)(a) and word substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 107(2) (with Sch. 2)
F29S. 125(2)(b) substituted (with retrospective effect in accordance with s. 91(7) of the amending Act) by Finance Act 2005 (c. 7), s. 91(2)
F30Words in s. 125(3)(a) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 107(3) (with Sch. 2)
Modifications etc. (not altering text)
C4 See 1989 s.59—rights of admission disregarded in the case of certain covenanted subscriptions.
Marginal Citations
M10Source—1977 s.48
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F33S. 127 repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 108, Sch. 3 (with Sch. 2)
F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F34S. 127A inserted (with effect in accordance with s. 80(6) of the amending Act) by Finance Act 1997 (c. 16), s. 80(1)
F35S. 127A repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 109, Sch. 3 (with Sch. 2)
[F36(1)F37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
[F38(2)For the purposes of corporation tax, any gain arising to any company in the course of dealing in financial futures or in qualifying options, which apart from this subsection would constitute profits or gains chargeable to tax under Schedule D otherwise than as the profits of a trade, shall not be chargeable to tax under Case V or VI of Schedule D.]
[F39(3)]In this section “commodity or financial futures” and “qualifying options” have the same meaning as in section [F40143 of the 1992 Act], and the reference to a gain arising in the course of dealing in commodity or financial futures includes any gain which is regarded as arising in the course of such dealing by virtue of subsection [F40(3)] of that section.
Textual Amendments
F36Words in s. 128 renumbered as s. 128(1) (with effect in accordance with s. 83(3) of the amending Act) by virtue of Finance Act 2002 (c. 23), Sch. 27 para. 3(1)(a) (with Sch. 28)
F37S. 128(1) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 110, Sch. 3 (with Sch. 2)
F38S. 128(2) inserted (with effect in accordance with s. 83(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 27 para. 3(2) (with Sch. 28)
F39Words in s. 128 renumbered as s. 128(3) (with effect in accordance with s. 83(3) of the amending Act) by virtue of Finance Act 2002 (c. 23), Sch. 27 para. 3(3) (with Sch. 28)
F40Words in s. 128 substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 14(7) (with ss. 60, 101(1), 171, 201(3)).
Marginal Citations
M11Source—1985 s.72(1), (2); 1987 (No.2) s.81(1)
F41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F41Ss. 129, 129A repealed (with effect in accordance with Sch. 10 para. 7(1) of the repealing Act) by Finance Act 1997 (c. 16), Sch. 10 para. 1, Sch. 18 Pt. 6(10), Note 1; S.I. 1997/991, art. 2
F43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F42S. 129A inserted (with application in accordance with s. 85(3) of the amending Act) by Finance Act 1995 (c. 4), s. 85(1)
F43Ss. 129, 129A repealed (with effect in accordance with Sch. 10 para. 7(1) of the repealing Act) by Finance Act 1997 (c. 16), Sch. 10 para. 1, Sch. 18 Pt. 6(10), Note 1; S.I. 1997/991, art. 2
(1)The income which, as income deriving from investments of a description specified in any of the relevant provisions, is eligible for relief from tax by virtue of that provision shall be taken to include any relevant stock lending fee.
(2)For the purposes of this section the relevant provisions are sections 592(2), 608(2)(a), 613(4), 614(3), 620(6) and 643(2).
(3)In this section “relevant stock lending fee”, in relation to investments of any description, means any amount, in the nature of a fee, which is payable in connection with [F45any] stock lending arrangement relating to investments which, but for any transfer under the arrangement, would be investments of that description.
[F46(4)In this section “stock lending arrangement” has the same meaning as in section 263B of the 1992 Act.]]
Textual Amendments
F44S. 129B inserted (with effect in accordance with s. 157(2) of the amending Act) by Finance Act 1996 (c. 8), s. 157(1)
F45Word in s. 129B(3) substituted (with effect in accordance with Sch. 10 para. 7(1) of the amending Act) by Finance Act 1997 (c. 16), Sch. 10 para. 2(1); S.I. 1997/991, art. 2
F46S. 129B(4) substituted (with effect in accordance with Sch. 10 para. 7(1) of the amending Act) by Finance Act 1997 (c. 16), Sch. 10 para. 2(2); S.I. 1997/991, art. 2
M12In this Part of this Act [F48—
“company with investment business” means any company whose business consists wholly or partly in the making of investments;]
“investment company”, means any company whose business consists wholly or mainly in the making of investments and the principal part of whose income is derived therefrom, but includes any savings bank or other bank for savings except any which, for the purposes of the M13Trustee Savings Bank Act 1985, is a successor or a further successor to a trustee savings bank.
Textual Amendments
F47S. 130 sidenote substituted (with effect in accordance with ss. 38(5), 42, 43 of the amending Act) by virtue of Finance Act 2004 (c. 12), s. 38(4)
F48S. 130: definition of "company with investment business" inserted (with effect in accordance with ss. 38(5), 42, 43 of the amending Act) by Finance Act 2004 (c. 12), s. 38(3)
Modifications etc. (not altering text)
C5 See—1988 s.338(6)—definition applied for purposes of s.338(3) (charges).1988 s.576(5)—definition applied for purposes of ss.573 to 576 (losses on unquoted shares in trading companies).Trustee Savings Banks Act 1985 (c.58) s.5and Sch.2 para.6(6).
Marginal Citations
M12Source—1970 s.304(5); 1980 Sch.11