SCHEDULES

SCHEDULE 22 Prevention of exploitation of Schedule 20 to Finance Act 1994

Part II Cases III, IV and V of Schedule D

Increase of other income arising in 1995-96 and 1996-97

10

1

This paragraph applies where, in the case of any income (other than income falling within paragraph 6 or 9 above) arising to any person from any source—

a

paragraph 4(2) or 6(2)(a) of Schedule 20 to the M1Finance Act 1994 applies; and

b

any amount which is included in the income arising within the years 1995-96 and 1996-97 would not have been so included if—

i

any relevant arrangements made between that person and another had not been made; or

ii

any relevant transaction entered into by that person had not been entered into.

2

Subject to sub-paragraph (3) below, the said paragraph 4(2) or 6(2)(a) shall have effect as if the reference to 50 per cent. of the aggregate of the amounts there mentioned were a reference to the aggregate of—

a

50 per cent. of each of those amounts; and

b

62.5 per cent. of each of the amounts falling within sub-paragraph (1)(b) above.

3

Sub-paragraph (3) of paragraph 9 above shall apply for the purposes of this paragraph as it applies for the purposes of that paragraph.