Income Tax (Trading and Other Income) Act 2005

27 (1) Amend section 43C (transfer of rent: exceptions, etc.) as follows.

(2) In subsection (3)—

(a) omit “or” at the end of paragraph (a), and

(b) after paragraph (b) insert—

“(c) section 284 of ITTOIA 2005 applies, or

(d) that section would apply if the price at which an estate or interest is sold were to exceed the price at which it is to be reconveyed.”

(3) After subsection (4) insert—

“(4A) If—

(a) section 285 of ITTOIA 2005 would apply in relation to a finance agreement, and

(b) section 43B applies in relation to the agreement,

section 285 of ITTOIA 2005 shall not apply.”

(4) In subsection (6)—

(a) after “brought into account” insert—

“(a)  ”, and

(b) at the end insert “or

(b) in computing under Chapter 2 of Part 2 of ITTOIA 2005 the profits of a trade carried on wholly or partly in the United Kingdom.”