- Latest available (Revised)
- Point in Time (06/04/2006)
- Original (As enacted)
Version Superseded: 06/04/2007
Point in time view as at 06/04/2006.
There are currently no known outstanding effects for the Income Tax (Trading and Other Income) Act 2005, Cross Heading: Finance Act 2004 (c. 12).
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
629U.K.The Finance Act 2004 is amended as follows.
630U.K.In section 71(3)(b) (collection and recovery of sums to be deducted: construction industry scheme) for “any tax purposes” substitute “ any corporation tax purpose (but see also sections 54 and 869 of the Income Tax (Trading and Other Income) Act 2005 for corresponding rule for income tax purposes) ”.
631U.K.Omit section 97 (exemption from income tax for certain interest and royalty payments: introductory).
632U.K.Omit section 98 (exemption from income tax for certain interest and royalty payments).
633U.K.Omit section 99 (permanent establishments and “25% associates”).
634U.K.Omit section 100 (interest payments: exemption notices).
635(1)Amend section 101 (payment of royalties without deduction at source) as follows.
(2)In subsection (1) for “section 98” substitute “ section 758 (exemption from income tax for certain interest and royalty payments) of the Income Tax (Trading and Other Income) Act 2005 ”.
(3)In each of subsections (2) and (3) for “section 98” substitute “ section 758 of the Income Tax (Trading and Other Income) Act 2005 ”.
(4)In subsection (5)—
(a)in paragraph (a) for “section 98” substitute “ section 758 of the Income Tax (Trading and Other Income) Act 2005 ”, and
(b)in paragraph (b) for “Conditions 1 to 3 in section 98” substitute “ conditions A to C in that section ”.
(5)After subsection (7) insert—
“(8)In a case where section 763 of the Income Tax (Trading and Other Income) Act 2005 (special relationships) applies, this section has effect in relation to only so much of the payment as does not exceed the arm's length amount (within the meaning of that section).
(9)Expressions used in this section and in sections 757 to 767 of the Income Tax (Trading and Other Income) Act 2005 have the same meaning in this section as in those sections.”
636In section 102 (claim for tax deducted at source from exempt interest or royalty payments) for “section 98” substitute “ section 758 of the Income Tax (Trading and Other Income) Act 2005 ”.
637U.K.Omit section 103 (special relationships).
638U.K.Omit section 104 (anti-avoidance).
639U.K.Omit section 106 (transitional provision).
640In section 119(4) (individuals benefited by film relief) for “, the individual shall” to the end substitute “—
(a)the individual shall be treated as receiving at the time of that event an amount of income equal to the chargeable amount;
(b)that income (which shall not be treated as profits of the trade) shall be chargeable to income tax for the year of assessment in which the event occurs; and
(c)the individual shall be liable for any tax so chargeable.”
641In section 123(1) (meaning of “film-related loss”) for “any of the following” to the end substitute “ any provision of Chapter 9 of Part 2 of the Income Tax (Trading and Other Income) Act 2005. ”
642In section 127(2) (losses derived from exploiting licence: individuals in partnership (charge to income tax)) for “, so much of” to the end substitute “—
(a)the individual shall be treated as receiving in that year of assessment an amount of income equal to so much of the total consideration as does not exceed the chargeable amount;
(b)that income (which shall not be treated as profits of the trade) shall be chargeable to income tax for that year of assessment; and
(c)the individual shall be liable for any tax so chargeable.”
643(1)Amend section 130 (“A significant amount of time”) as follows.
(2)In subsection (3) for “sections 60 to 63” to the end substitute “ Chapter 15 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 as applied by section 853 of that Act. ”
(3)In subsection (4) for “section 61(1)” substitute “ section 199(1) ”.
644U.K.In section 186(1)(b) (scheme investments: income) for “which would” to the end substitute “ which are not relevant foreign income and which would otherwise be chargeable to income tax under Chapter 8 of Part 5 of ITTOIA 2005 (income not otherwise charged). ”
645(1)Amend section 189(2) (meaning of “relevant UK earnings”) as follows.U.K.
(2)In paragraph (b) for “Schedule D” substitute “ Part 2 of ITTOIA 2005 ”.
(3)For paragraph (c) substitute—
“(c)income to which section 833(5B) of ICTA (patent income) applies.”
646U.K.In section 196(2) (relief for employers in respect of contributions paid) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.
647U.K.In section 197(10)(a) (spreading relief) after “charged under” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.
648U.K.In section 199(2)(a) (deemed contributions) at the beginning insert “ Part 2 of ITTOIA 2005 (trading income) or ”.
649U.K.In section 200(a) (no other relief for employers in connection with contributions) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.
650(1)Amend section 246 (restriction of deduction for non-contributory provision) as follows.U.K.
(2)In subsection (2)(a) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.
(3)In subsection (3)(a) after “charged under” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.
651(1)Amend section 249 of FA 2004 (amendments of ITEPA 2003) as follows.U.K.
(2)In subsection (3), in subsection (4) of the inserted section 393B—
(a)for paragraph (a) substitute—
“(a)an excepted group life policy as defined in section 480 of ITTOIA 2005,”, and
(b)in paragraph (b) for the words from “condition 1” to the end of the paragraph substitute “—
(i)condition A in section 481 of that Act would be met if paragraph (a) in that condition referred to the death, in any circumstances or except in specified circumstances, of that individual (rather than the death in any circumstances of each of the individuals insured under the policy) and if the condition did not include paragraph (b), and
(ii)conditions C and D in that section and conditions A and C in section 482 of that Act are met, or”.
(3)In subsection (8), in the inserted section 395 of ITEPA 2003, for “Case VI of Schedule D” substitute “ subsection (2) of that section ”.
652U.K.In section 280(1) (abbreviations and general index for Part 4) omit the “and” before the definition of “ITEPA 2003” and after that definition insert “and
“ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005.”
653(1)Amend Schedule 15 (charge to income tax on benefit received by former owner of property) as follows.U.K.
(2)In paragraph 1 (introductory) insert in the appropriate place—
““ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005;”.
(3)In paragraph 8 (intangible property comprised in settlement where settlor retains an interest)—
(a)in sub-paragraph (1)(a)—
(i)for “section 660A of the Taxes Act 1988” substitute “ section 624 of ITTOIA 2005 ”, and
(ii)for “Part 15” substitute “ Chapter 5 of Part 5 ”, and
(b)in sub-paragraph (1)(b) for “subsection (2) of that section” substitute “ section 625(1) of ITTOIA 2005 (settlor's retained interest) ”.
(4)In paragraph 9(1) (intangible property comprised in settlement where settlor retains an interest), in the definition of “T”—
(a)in paragraph (a), for “section 547 of the Taxes Act 1988” substitute “ section 461 of ITTOIA 2005 ”,
(b)in paragraph (b) for “section 660A of that Act” substitute “ section 624 of that Act ”, and
(c)in paragraph (c) for “that Act” substitute “ the Taxes Act 1988 ”.
(5)In paragraph 22(3)(b) (election for application of inheritance tax provisions) for “section 660A of the Taxes Act 1988” substitute “ section 624 of ITTOIA 2005 ”.
654U.K.In paragraph 1(4) and (6) of Schedule 24, for the words from “(and” to “have” substitute “ has ”.
655U.K.In paragraph 12 of Schedule 35 (pension schemes etc: minor and consequential amendments) for the words from “for” to the end substitute “for the words from the beginning to “, if the claimant” substitute
. ”
656(1)Amend Schedule 36 (pension schemes etc: transitional provisions and savings) as follows.U.K.
(2)In paragraph 41(a) (employers' contributions relieved before 6th April 2006) after “the purposes of” insert “ Part 2 of ITTOIA 2005 (trading income) or ”.
(3)In paragraph 53(2)(b) (benefits taxable under Chapter 2 of Part 6 of ITEPA 2003: contributions taxed pre-commencement) for “to tax under Case VI of Schedule D by virtue of” substitute “ to income tax under subsection (2) of ”.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Schedule you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Schedule you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Part you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Part you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: