SCHEDULES

SCHEDULE 1Consequential amendments

Part 2Other enactments

Finance Act 2000 (c. 17)

514

(1)

Amend section 46 (exemption for small trades etc.) as follows.

(2)

In subsection (1) for the words from the beginning to “shall be granted,” substitute—

“(1)

Subject to subsections (2) and (2A) below, exemption—

(a)

from income tax—

(i)

under Part 2 of ITTOIA 2005 in respect of a trade carried on wholly or partly in the United Kingdom, or

(ii)

under or by virtue of any provision to which section 836B of the Taxes Act 1988 applies, or

(b)

from corporation tax under Case I or VI of Schedule D,

shall be granted”.

(3)

For subsection (2) substitute—

“(2)

Exemption shall not be granted under subsection (1) above in respect of income which is chargeable to—

(a)

income tax under or by virtue of any provision to which section 836B of the Taxes Act 1988 applies, or

(b)

corporation tax under Case VI of Schedule D,

by virtue of any of the provisions mentioned in subsection (2A).

(2A)

The provisions are—

(a)

sections 214, 547(1)(b), 703, 776, 788, 790 or 804 of the Taxes Act 1988;

(b)

paragraph 52(4) of Schedule 18 to the Finance Act 1998;

(c)

Chapter 9 of Part 4, and Chapter 5 of Part 5, of ITTOIA 2005; and

(d)

any other enactment specified in an order made by the Treasury.”

(4)

In subsection (6), in the definition of “income”—

(a)

after “means” insert“—

(a)

any profits or other income or gains —

(i)

which are chargeable to income tax under Part 2 of ITTOIA 2005 in respect of a trade carried on wholly or partly in the United Kingdom, or

(ii)

which are chargeable to income tax under or by virtue of any provision to which section 836B of the Taxes Act 1988 applies,

and which (in either case) are not, apart from this section, exempted from income tax chargeable under or by virtue of that Part or provision, or

(b)

 ”,

(b)

after “chargeable to” insert “ corporation ”.