1AA

For the purposes of subsection (1) above—

a

the amounts in which a person is chargeable to income tax and capital gains tax are net amounts, that is to say, amounts which take into account any relief or allowance a claim for which is included in the return; and

b

the amount payable by a person by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.

1

Subject to subsection (2) below, every return under section 8 or 8A of this Act shall include a self-assessment, that is to say—

a

an assessment of the amounts in which, on the basis of the information contained in the return and taking into account any relief or allowance a claim for which is included in the return, the person making the return is chargeable to income tax and capital gains tax for the year of assessment; and

b

an assessment of the amount payable by him by way of income tax, that is to say, the difference between the amount in which he is assessed to income tax under paragraph (a) above and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.

1A

For the purposes of subsection (1) above—

a

the amount in which a partner is chargeable to income tax or corporation tax is a net amount, that is to say, an amount which takes into account any relief or allowance for which a claim is made; and

b

the amount payable by a partner by way of income tax is the difference between the amount in which he is chargeable to income tax and the aggregate amount of any income tax deducted at source and any tax credits to which section 231 of the principal Act applies.

11

In this Act “successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return in pursuance of a notice under subsection (2) or (3) above, but is no longer available, means—

a

where a partner is for the time being nominated for the purposes of this subsection by a majority of the relevant partners, that partner; and

b

where no partner is for the time being so nominated, such partner as—

i

in the case of a notice under subsection (2) above, is identified in accordance with rules given with that notice; or

ii

in the case of a notice under subsection (3) above, is nominated for the purposes of this subsection by an officer of the Board;

and “predecessor” and “successor”, in relation to a person so nominated or identified, shall be construed accordingly.

12

For the purposes of subsection (11) above a nomination under paragraph (a) of that subsection, and a revocation of such a nomination, shall not have effect in relation to any time before notice of the nomination or revocation is given to an officer of the Board.

13

In this section “relevant partner” means a person who was a partner at any time during the period for which the return was made or is required, or the personal representatives of such a person.

“successor”, in relation to a person who is required to make and deliver, or has made and delivered, a return under section 12AA of this Act, and “predecessor” and “successor”, in relation to the successor of such a person, shall be construed in accordance with section 12AA(11) of this Act;

4A

The records which fall within this subsection are—

a

any statement in writing such as is mentioned in—

i

subsection (1) of section 234 of the principal Act (amount of qualifying distribution and tax credit), or

ii

subsection (1) of section 352 of that Act (gross amount, tax deducted, and actual amount paid, in certain cases where payments are made under deduction of tax),

which is furnished by the company or person there mentioned, whether after the making of a request or otherwise;

b

any certificate or other record (however described) which is required by regulations under section 566(1) of the principal Act to be given to a sub-contractor (within the meaning of Chapter IV of Part XIII of that Act) on the making of a payment to which section 559 of that Act (deductions on account of tax) applies;

c

any such record as may be requisite for making a correct and complete claim in respect of, or otherwise requisite for making a correct and complete return so far as relating to, an amount of tax—

i

which has been paid under the laws of a territory outside the United Kingdom, or

ii

which would have been payable under the law of such a territory but for a relief to which section 788(5) of the principal Act (relief for promoting development and relief contemplated by double taxation arrangements) applies.

5B

Subsection (5) above also does not apply where—

a

the records which the person fails to keep or preserve are records falling within paragraph (a) of subsection (4A) above; and

b

an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.

5

Sub-paragraph (4) above does not apply where—

a

the records which the person fails to keep or preserve are records falling within paragraph (a) of section 12B(4A) of this Act; and

b

an officer of the Board is satisfied that any facts which he reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence furnished to him.

1

This section applies where—

a

a notice has been given to any person under section 8 or 8A of this Act (the relevant section), and

b

the required return is not delivered on or before the filing date.

1A

An officer of the Board may make a determination of the following amounts, to the best of his information and belief, namely—

a

the amounts in which the person who should have made the return is chargeable to income tax and capital gains tax for the year of assessment; and

b

the amount which is payable by him by way of income tax for that year;

and subsection (1AA) of section 8 or, as the case may be, section 8A of this Act applies for the purposes of this subsection as it applies for the purposes of subsection (1) of that section.

5A

Where a determination under section 28C of this Act which has effect as a person’s self-assessment is superseded by his self-assessment under section 9 of this Act, any amount of tax which is payable or repayable by virtue of the supersession shall be payable or (as the case may be) repayable on or before the day given by subsection (3) or (4) above.

10

Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of any such excess as is mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.

8

Regulations under section 203 of the principal Act (PAYE) may provide that, for the purpose of determining the amount of the difference mentioned in subsection (1) above, any necessary adjustments in respect of matters prescribed by the regulations shall be made to the amount of tax deducted at source under that section.

aa

make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 54(6)(b) above;

aa

make provision for and with respect to appeals against a decision of an officer of the Board or the Board with respect to a claim under section 32(5)(b) above;

4

So far as it relates to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, subsection (1) above has effect as respects the year 1997-98 and subsequent years of assessment.

1A

Any chargeable gain or allowable loss which, apart from this subsection, would accrue to the company on the sale referred to in subsection (1) above shall be treated as accruing to the company immediately before the end of the last accounting period to end before the beginning of the accounting period mentioned in that subsection.

153A Provisional application of sections 152 and 153.

1

This section applies where a person carrying on a trade who for a consideration disposes of, or of his interest in, any assets (“the old assets”) declares, in his return for the chargeable period in which the disposal takes place—

a

that the whole or any specified part of the consideration will be applied in the acquisition of, or of an interest in, other assets (“the new assets”) which on the acquisition will be taken into use, and used only, for the purposes of the trade;

b

that the acquisition will take place as mentioned in subsection (3) of section 152; and

c

that the new assets will be within the classes listed in section 155.

2

Until the declaration ceases to have effect, section 152 or, as the case may be, section 153 shall apply as if the acquisition had taken place and the person had made a claim under that section.

3

The declaration shall cease to have effect as follows—

a

if and to the extent that it is withdrawn before the relevant day, or is superseded before that day by a valid claim made under section 152 or 153, on the day on which it is so withdrawn or superseded; and

b

if and to the extent that it is not so withdrawn or superseded, on the relevant day.

4

On the declaration ceasing to have effect in whole or in part, all necessary adjustments—

a

shall be made by making or amending assessments or by repayment or discharge of tax; and

b

shall be so made notwithstanding any limitation on the time within which assessments or amendments may be made.

5

In this section “the relevant day” means—

a

in relation to capital gains tax, the third anniversary of the 31st January next following the year of assessment in which the disposal of, or of the interest in, the old assets took place;

b

in relation to corporation tax, the fourth anniversary of the last day of the accounting period in which that disposal took place.

6

Subsections (6), (8), (10) and (11) of section 152 shall apply for the purposes of this section as they apply for the purposes of that section.

247A Provisional application of section 247.

1

This section applies where a person who disposes of land (“the old land”) to an authority exercising or having compulsory powers declares, in his return for the chargeable period in which the disposal takes place—

a

that the whole or any specified part of the consideration for the disposal will be applied in the acquisition of other land (“the new land”);

b

that the acquisition will take place as mentioned in subsection (3) of section 152; and

c

that the new land will not be land excluded from section 247(1)(c) by section 248.

2

Until the declaration ceases to have effect, section 247 shall apply as if the acquisition had taken place and the person had made a claim under that section.

3

For the purposes of this section, subsections (3) to (5) of section 153A shall apply as if the reference to section 152148. or 153 were a reference to section 247 and the reference to the old assets were a reference to the old land.

4

In this section “land” and “authority exercising or having compulsory powers” have the same meaning as in section 247.

, being a premium which—

a

is due when the sum is payable by the tenant; and

b

where the sum is payable in lieu of rent, is in respect of the period in relation to which the sum is payable.

, being a premium which—

a

is due when the sum is payable by the tenant; and

b

is in respect of the period from the time when the variation or waiver takes effect to the time when it ceases to have effect.

4

Where under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, that shall not be the occasion of any recomputation of the gain accruing on the receipt of any other premium, and the premium shall be regarded—

a

in the case of a premium deemed to have been received for the surrender of a lease, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of the disposal by the landlord of his interest in the lease; and

b

in any other case, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of a further part disposal of the freehold or other asset out of which the lease is granted.

5

If under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, otherwise than as consideration for the surrender of the lease, and the landlord is a tenant under a lease the duration of which does not exceed 50 years, this Schedule shall apply—

a

as if an amount equal to the amount of that premium deemed to have been received had been given by way of consideration for the grant of the part of the sublease covered by the period in respect of which the premium is deemed to have been paid; and

b

as if that consideration were expenditure incurred by the sublessee and attributable to that part of the sublease under section 38(1)(b).