Income and Corporation Taxes Act 1988

[F1 257BA Elections as to transfer of relief under section 257A [F2 or 257AB]. U.K.

[F3 (1) An individual may elect that for any year of assessment for which the individual's spouse or civil partner is entitled to a tax reduction under section 257A or 257AB—

(a) the individual shall be entitled (on making a claim) to a tax reduction calculated by reference to half the minimum amount, and

(b) the spouse or civil partner's appropriate amount shall be reduced by half the minimum amount.

(2) An individual and the individual's spouse or civil partner may jointly elect that for any year of assessment for which the individual is entitled to a tax reduction under section 257A or 257AB—

(a) the individual's spouse or civil partner shall be entitled (on making a claim) to a tax reduction calculated by reference to the minimum amount, and

(b) the individual's appropriate amount shall be reduced by the minimum amount.

(3) An individual may elect that for any year of assessment for which the individual's spouse or civil partner is entitled to a tax reduction by virtue of an election under subsection (2) above—

(a) the individual shall be entitled (on making a claim) to a tax reduction calculated by reference to half the minimum amount (in addition to any tax reduction to which the individual is already entitled under section 257A or 257AB), and

(b) the tax reduction to which the spouse or civil partner is entitled by virtue of that election shall be calculated by reference to half the minimum amount (instead of by reference to the minimum amount).]

[F4 (3A) In this section “the appropriate amount” means the amount by reference to which the calculation of the tax reduction is to be made.]

(4) An election under this section shall be made by giving notice to the inspector in such form as the Board may determine and—

(a) subject to subsections (5) and (7) below, shall be made before the first year of assessment for which it is to have effect, and

(b) shall have effect for that and each succeeding year of assessment for which [F5 the individual concerned] is entitled to relief under section 257A [F6 or 257AB], subject to its withdrawal under subsection (8) below or a subsequent election under this section.

(5) An election may be made during the first year of assessment for which it is to have effect if that is the year of assessment in which the marriage [F7 or civil partnership] takes place.

(6) F8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) An election may be made within the first thirty days of the first year of assessment for which it is to have effect if before that year the inspector has been given written notification that it is intended to make the election.

(8) The person or persons by whom an election was made may withdraw it by giving notice to the inspector in such form as the Board may determine; but the withdrawal shall not have effect until the year of assessment after the one in which the notice is given.

(9) [F9 An individual] shall not be entitled by virtue of an election under this section to more than one [F10 tax reduction] for any year of assessment.

[F11 (10) A tax reduction under this section is given effect at Step 6 of the calculation in section 23 of ITA 2007.]]

Textual Amendments

F1 Ss. 257BA, 257BB substituted for s. 257B (16.7.1992 with application in relation to tax for the year 1993-94 and subsequent years of assessment) by Finance (No. 2) Act 1992 (c. 48), s. 20, Sch. 5 paras.2, 10.

F2 Words in s. 257BA heading inserted (5.12.2005 with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 53(9)

F3 S. 257BA(1)-(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 32(2) (with Sch. 2 paras. 14, 16(1)(4), 17(1)(5))

F4 S. 257BA(3A) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 32(3) (with Sch. 2 paras. 14, 16(1)(4), 17(1)(5))

F5 Words in s. 257BA(4)(b) substituted (5.12.2005 with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 53(5)(a)

F6 Words in s. 257BA(4)(b) inserted (5.12.2005 with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 53(5)(b)

F7 Words in s. 257BA(5) inserted (5.12.2005 with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 53(6)

F8 S. 257BA(6) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act by Income Tax Act 2007 (c. 3), Sch. 1 para. 32(4), Sch. 3 Pt. 1 (with Sch. 2 paras. 14, 16(1)(4), 17(1)(5))

F9 Words in s. 257BA(9) substituted (5.12.2005 with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 53(8)

F10 Words in s. 257BA(9) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 32(5) (with Sch. 2 paras. 14, 16(1)(4), 17(1)(5))

F11 S. 257BA(10) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 32(6) (with Sch. 2 paras. 14, 16(1)(4), 17(1)(5))

Modifications etc. (not altering text)

C1 S. 257B-262 restricted (with effect as mentioned in s. 77(7) of the amending Act) by Finance Act 1994 (c. 9), Sch. 8 para. 4(1)