Income Tax Act 2007

1Overview of Income Tax Acts

2Overview of Act

Part 2Basic provisions

Chapter 1Charges to income tax

3Overview of charges to income tax

4Income tax an annual tax

5Income tax and companies

Chapter 2Rates at which income tax is charged

6The ... basic rate, higher rate and additional rate

7The starting rate for savings

8The dividend ordinary rate, dividend upper rate and dividend additional rate

9The trust rate and dividend trust rate

Income charged at particular rates

10Income charged at the ... basic, higher and additional rates: individuals

11Income charged at the basic rate: other persons

12Income charged at the starting rate for savings

13Income charged at the dividend ordinary, dividend upper and dividend additional rates: individuals

14Income charged at the dividend ordinary rate: other persons

15Income charged at the trust rate and the dividend trust rate

16Savings and dividend income to be treated as highest part of total income

17Repayment: tax paid at basic rate instead of starting rate for savings

18Meaning of “savings income”

19Meaning of “dividend income”

Starting rate limit and basic rate limit

20The starting rate limit and the basic rate limit

21Indexation of the basic rate limit and starting rate limit for savings

Chapter 3Calculation of income tax liability

22Overview of Chapter

23The calculation of income tax liability

24Reliefs deductible at Step 2

25Reliefs and allowances deductible at Steps 2 and 3: supplementary

26Tax reductions

27Order of deducting tax reductions: individuals

28Order of deducting tax reductions: other persons

29Tax reductions: supplementary

30Additional tax

31Total income: supplementary

32Liability not dealt with in the calculation

Part 3Personal reliefs

Chapter 1Introduction

33Overview of Part

Chapter 2Personal allowance and blind person's allowance

34Allowances under Chapter

Personal allowances

35Personal allowance for those aged under 65

36Personal allowance for those aged 65 to 74

37Personal allowance for those aged 75 and over

Blind person's allowance

38Blind person's allowance

39Transfer of part of blind person's allowance to a spouse or civil partner

40Election for transfer of allowance under section 39

Supplementary

41Allowances in year of death

Chapter 3Tax reductions for married couples and civil partners

42Tax reductions under Chapter

43Meaning of “the minimum amount”

44Election for new rules to apply

Married couple's allowance

45Marriages before 5 December 2005

46Marriages and civil partnerships on or after 5 December 2005

Elections to transfer relief

47Election by individual to transfer relief under section 45 or 46

48Joint election to transfer relief under section 45 or 46

49Election for partial transfer back of relief

50Procedure for making and withdrawing elections under sections 47 to 49

Transfer of unused relief

51Transfer of unused relief

52Transfer back of unused relief

53Transfer of unused relief: general

Supplementary

54Tax reductions in the year of marriage or entry into civil partnership

55Sections 45 to 53: supplementary

Chapter 4General

56Residence etc of claimants

57Indexation of allowances

58Meaning of “adjusted net income”

Part 4Loss relief

Chapter 1Introduction

59Overview of Part

Chapter 2Trade losses

60Overview of Chapter

61Non-partners: losses of a tax year

62Partners: losses of a tax year etc

63Prohibition against double counting

Trade loss relief against general income

64Deduction of losses from general income

65How relief works

Restriction on relief for uncommercial trades

66Restriction on relief unless trade is commercial

Restriction on relief for “hobby” farming or market gardening

67Restriction on relief in case of farming or market gardening

68Reasonable expectation of profit

69Whether trade is the same trade

70Determining losses in previous tax years

Use of trading loss as CGT loss

71Treating trade losses as CGT losses

Early trade losses relief

72Relief for individuals for losses in first 4 years of trade

73How relief works

74Restrictions on relief unless trade is commercial etc

General restrictions on sideways relief and capital gains relief

74AReliefs in any tax year not to exceed cap for tax year

74BNo relief for tax-generated losses

74CMeaning of “non-active capacity” for purposes of sections 74A and 74B etc

74DMeaning of “qualifying film expenditure” for purposes of sections 74A and 74B

Restrictions on sideways relief for certain capital allowances

75Trade leasing allowances given to individuals

76First-year allowances and annual investment allowances: introduction

77First-year allowances: partnerships with companies

78First-year allowances and annual investment allowances: arrangements to reduce tax liabilities

79Capital allowances restrictions: supplementary

Restriction on sideways relief for specific trades

80Ring fence income

81Dealings in commodity futures

82Exploitation of films

Carry-forward trade loss relief

83Carry forward against subsequent trade profits

84How relief works

85Use of trade-related interest and dividends if trade profits insufficient

86Trade transferred to a company

87Ring fence trades

88Carry forward of certain interest as loss

Terminal trade loss relief

89Carry back of losses on a permanent cessation of a trade

90Losses that are “terminal losses”

91How relief works

92Use of trade-related interest and dividends if trade profits insufficient

93Mineral extraction trade and carry back of balancing allowances

94Carry back of certain interest as loss

Wholly foreign trades

95Foreign trades etc: reliefs only against foreign income

Post-cessation trade relief

96Post-cessation trade relief

97Meaning of “qualifying payment”

98Meaning of “qualifying event” etc

99Reduction of relief for unpaid trade expenses

100Prohibition against double counting

101Treating excess post-cessation trade relief as CGT loss

Chapter 3Restrictions on trade loss relief for certain partners

102Overview of Chapter

103Meaning of “sideways relief”, “capital gains relief” and “firm”

103AMeaning of “limited partner”

103B Meaning of “non-active partner” etc

Limit on amount of sideways relief and capital gains relief

103CLimit on reliefs in any tax year not to exceed cap for tax year

103DMeaning of “qualifying film expenditure”

Limited partners

104Restriction on reliefs for limited partners

105Meaning of “contribution to the firm”

106Meaning of “limited partner”

Members of LLPs

107Restriction on reliefs for members of LLPs

108Meaning of “contribution to the LLP”

109Unrelieved losses brought forward

Non-active members of LLPs or other partnerships (apart from limited partnerships)

110Restriction on reliefs for non-active partners in early tax years

111Meaning of “contribution to the firm”

112Meaning of “early tax year”

113Unrelieved losses brought forward

Exclusion of amounts in calculating contribution to the firm or LLP

113AExclusion of amounts contributed to access relief

114 Power to exclude other amounts

Restrictions for film trades carried on in partnership

115Restrictions on reliefs for firms exploiting films

116Exclusion from restrictions under section 115: certain film expenditure

Chapter 4Losses from property businesses

117Overview of Chapter

Carry-forward property loss relief

118Carry forward against subsequent property business profits

119How relief works

Property loss relief against general income

120Deduction of property losses from general income

121How relief works

122Meaning of “the applicable amount of the loss”

123Meaning of “the loss has a capital allowances connection” and “the business has a relevant agricultural connection”

124Supplementary

Post-cessation property relief

125Post-cessation property relief

126Treating excess post-cessation property relief as CGT loss

Furnished holiday accommodation

127UK furnished holiday lettings business treated as trade

Chapter 5Losses in an employment or office

128Employment loss relief against general income

129How relief works

130Treating loss in employment or office as CGT loss

Chapter 6Losses on disposal of shares

Share loss relief against general income

131Share loss relief

132Entitlement to claim

133How relief works

Shares to which EIS relief is not attributable

134Qualifying trading companies

135Subscriptions for shares

136Disposals of new shares

Qualifying trading companies: the requirements

137The trading requirement

138Ceasing to meet trading requirement because of administration or receivership

139The control and independence requirement

140The qualifying subsidiaries requirement

141The property managing subsidiaries requirement

142The gross assets requirement

143The unquoted status requirement

144Power to amend requirements by Treasury order

Qualifying trading companies: supplementary

145Relief after an exchange of shares for shares in another company

146Substitution of new shares for old shares

Limits on share loss relief and mixed holdings

147Limits on share loss relief

148Disposal of shares forming part of mixed holding

149Section 148: supplementary

Miscellaneous and supplementary

150Deemed time of issue for certain shares

151Interpretation of Chapter

Chapter 7Losses from miscellaneous transactions

Loss relief against miscellaneous income

152Losses from miscellaneous transactions

153How relief works

Deposit rights

154Transactions in deposit rights

Supplementary

155Time limit for claiming relief

Part 5Enterprise investment scheme

Chapter 1Introduction

156Meaning of “EIS relief” and commencement

157Eligibility for EIS relief

158Form and amount of EIS relief

Miscellaneous

159Periods A, B and C

160Overview of other Chapters of Part

161Other tax reliefs relating to EIS

Chapter 2The investor

162Overview of Chapter

The requirements

163The no connection with the issuing company requirement

164The no linked loans requirement

165The no tax avoidance requirement

Meaning of connection with issuing company

166Connection with issuing company

167Employees, directors and partners

168Directors excluded from connection

169Directors qualifying for relief despite connection

170Persons interested in capital etc of company

171Persons subscribing for shares under certain arrangements

Chapter 3General requirements

172Overview of Chapter

The requirements

173The shares requirement

173AThe maximum amount raised annually through risk capital schemes requirement

174The purpose of the issue requirement

175The use of the money raised requirement

176The minimum period requirement

177The no pre-arranged exits requirement

178The no tax avoidance requirement

Meaning of “qualifying business activity”

179Meaning of “qualifying business activity”

Chapter 4The issuing company

180Overview of Chapter

The requirements

181The trading requirement

182Ceasing to meet trading requirement because of administration or receivership

183The issuing company to carry on the qualifying business activity requirement

184The unquoted status requirement

185The control and independence requirement

186The gross assets requirement

186AThe number of employees requirement

187The qualifying subsidiaries requirement

188The property managing subsidiaries requirement

189Meaning of “qualifying trade”

190Meaning of “qualifying 90% subsidiary”

191Meaning of “qualifying subsidiary”

Excluded activities

192Meaning of “excluded activities”

193Excluded activities: wholesale and retail distribution

194Excluded activities: leasing of ships

195Excluded activities: receipt of royalties and licence fees

196Excluded activities: property development

196AExcluded activities: shipbuilding

196BExcluded activities: producing coal

196CExcluded activities: producing steel

197Excluded activities: hotels and comparable establishments

198Excluded activities: nursing homes and residential care homes

199Excluded activities: provision of services or facilities for another business

Supplementary

200Power to amend by Treasury order

Chapter 5Attribution of and claims for EIS relief

201Attribution of EIS relief to shares

Claims: general

202Time for making claims for EIS relief

203Entitlement to claim

Claims: supporting documents

204Compliance certificates

205Compliance statements

206Appeal against refusal to authorise compliance certificate

207Penalties for fraudulent certificate or statement etc

Chapter 6Withdrawal or reduction of EIS relief

208Overview of Chapter

209Disposal of shares

210Cases where maximum EIS relief not obtained

211Call options

Value received by investor

213Value received by the investor

214Value received: receipts of insignificant value

215Meaning of “receipts of insignificant value”

216When value is received

217The amount of value received

218Value received where there is more than one issue of shares

219Value received where part of share issue treated as made in previous tax year

220Cases where maximum EIS relief not obtained

221Receipts of value by and from connected persons etc

222Receipt of replacement value

223Section 222: supplementary

Repayments etc of share capital to other persons

224Repayments etc of share capital to other persons

225Insignificant repayments ignored for purposes of section 224

226Amount of repayments etc where there is more than one issue of shares

227Single issue affecting more than one individual

228Single issue treated as made partly in previous tax year

229Maximum relief not obtained for share issue

230Repayment of authorised minimum within 12 months

231Restriction on withdrawal of relief under section 224

Miscellaneous

232Acquisition of a trade or trading assets

233Acquisition of share capital

234Relief subsequently found not to have been due

Chapter 7Withdrawal or reduction of EIS relief: procedure

Assessments and appeals

235Assessments for the withdrawal or reduction of EIS relief

236Appeals against section 234(3)(b) notices

237Time limits for assessments

238Cases where assessment not to be made

239Date from which interest is chargeable

240Information to be provided by the investor

241Information to be provided by the issuing company etc

242Power to require information where section 240 or 241 applies or could have applied

243Power to require information in other cases

244Obligations of secrecy

Chapter 8Supplementary and general

Disposals of shares

245Transfers between spouses or civil partners

246Identification of shares on a disposal

Acquisition of issuing company

247Continuity of EIS relief where issuing company is acquired by new company

248Carry over of obligations etc where EIS relief attributed to new shares

249Substitution of new shares for old shares

250Nominees and bare trustees

251Approved investment fund as nominee

Interpretation

252Meaning of a company being “in administration” or “in receivership”

253Meaning of “associate”

254Meaning of “disposal of shares”

255Meaning of “issue of shares”

256Meaning of “the termination date”

257Minor definitions etc

Part 6Venture capital trusts

Chapter 1Introduction

258Overview of Part

259Venture capital trusts and VCT approvals

260Other tax reliefs relating to VCTs

Chapter 2VCT relief

Entitlement to relief

261Eligibility for relief

262Entitlement to claim relief

263Form and amount of relief

264No entitlement to relief if there is a linked loan

265No entitlement to relief which would have been lost if it had already been obtained

Loss of relief

266Loss of relief if shares disposed of within 5 years

267Transfers of shares between spouses or civil partners

268Loss of relief if VCT approval withdrawn

269Loss of relief which is subsequently found not to have been due

270Assessment on withdrawal or reduction of relief

Supplementary

271Provision of information

272Regulations as to procedure etc

273Interpretation of Chapter

Chapter 3VCT approvals

Giving of approval

274Requirements for the giving of approval

275Alternative requirements for the giving of approval

276Conditions relating to income

277The 15% holding limit condition

278Conditions relating to value of investments: general

279Conditions relating to value of investments: qualifying holdings

280Conditions relating to qualifying holdings and eligible shares

280AThe 70% qualifying holdings condition: disposal of holding

Withdrawal of approval

281Withdrawal of VCT approval of a company

282Withdrawal of VCT approval in cases for which provision made under section 280(3)

Supplementary

283Time as from which VCT approval has effect

284Power to make regulations as to procedure

285Interpretation of Chapter

Chapter 4Qualifying holdings

286Qualifying holdings: introduction

The requirements

287The maximum qualifying investment requirement

288The no guaranteed loan requirement

289The proportion of eligible shares requirement

290The trading requirement

291The carrying on of a qualifying activity requirement

292Ceasing to meet requirements because of administration or receivership

292AThe maximum amount raised annually through risk capital schemes requirement

293The use of the money raised requirement

294The relevant company to carry on the relevant qualifying activity requirement

295The unquoted status requirement

296The control and independence requirement

297The gross assets requirement

297AThe number of employees requirement

298The qualifying subsidiaries requirement

299The property managing subsidiaries requirement

300Meaning of “qualifying trade”

301Meaning of “qualifying 90% subsidiary”

302Meaning of “qualifying subsidiary”

Excluded activities

303Meaning of “excluded activities”

304Excluded activities: wholesale and retail distribution

305Excluded activities: leasing of ships

306Excluded activities: receipt of royalties and licence fees

307Excluded activities: property development

307AExcluded activities: shipbuilding

307BExcluded activities: producing coal

307CExcluded activities: producing steel

308Excluded activities: hotels and comparable establishments

309Excluded activities: nursing homes and residential care homes

310Excluded activities: provision of services or facilities for another business

Supplementary

311Power to amend Chapter

312Winding up of the relevant company

313Interpretation of Chapter

Chapter 5Powers: winding up and mergers of VCTs

314Power to treat VCT-in-liquidation as VCT

315Power to treat conditions for VCT approval as met with respect to VCT-in-liquidation

316Power to make provision about distributions by VCT-in-liquidation

317Power to facilitate disposal to VCT by VCT-in-liquidation

318Power in respect of periods before and after winding up

319Sections 314 to 318: supplementary

320Meaning of “VCT-in-liquidation”

321Power to facilitate mergers of VCTs

322Provision that may be made by regulations under section 321

323Meaning of “merger” and “successor company”

Supplementary

324Regulations under Chapter

325Interpretation of Chapter

Chapter 6Supplementary and general

Acquisitions for restructuring purposes

326Restructuring to which section 327 applies

327Certain requirements of Chapter 4 to be treated as met

328Supplementary

Conversion of shares etc and company reorganisations

329Conversion of convertible shares and securities

330Power to facilitate company reorganisations etc involving exchange of shares

Supplementary

331Meaning of a company being “in administration” or “in receivership”

332Minor definitions etc

Part 7Community investment tax relief

Chapter 1Introduction

333Meaning of “CITR”

334Eligibility for CITR

335Form and amount of CITR

Miscellaneous

336Meaning of “making an investment”

337Determination of “the invested amount”

338Meaning of “the 5 year period” and “the investment date”

339Overview of other Chapters of Part

Chapter 2Accredited community development finance institutions

340Application and criteria for accreditation

341Terms and conditions of accreditation

342Period of accreditation

343Delegation of Secretary of State's functions

Chapter 3Qualifying investments

344Qualifying investments: introduction

345Conditions to be met in relation to loans

346Conditions to be met in relation to securities

347Conditions to be met in relation to shares

348Tax relief certificates

349No pre-arranged protection against risks

Chapter 4General conditions

350No control of CDFI by investor

351Investor must have beneficial ownership

352No acquisition of share in partnership

353No tax avoidance purpose

Chapter 5Claims for and attribution of CITR

354Loans: no claim after disposal or excessive repayments or receipts of value

355Securities or shares: no claim after disposal or excessive receipts of value

356No claim after loss of accreditation by the CDFI

357Attribution: general

358Attribution: bonus shares

Chapter 6Withdrawal or reduction of CITR

359Overview of Chapter

360Disposal of loan during 5 year period

361Disposal of securities or shares during 5 year period

Repayment of loans

362Repayment of loan capital during 5 year period

Receipts of value

363Value received by investor during 6 year period: loans

364Value received by investor during 6 year period: securities or shares

365Receipts of insignificant value to be added together

366When value is received

367The amount of value received

368Value received if there is more than one investment

369Effect of receipt of value on future claims for CITR

370Receipts of value by or from connected persons

371CITR subsequently found not to have been due

Manner of withdrawal or reduction

372Manner of withdrawal or reduction of CITR

Chapter 7Supplementary and general

Alternative finance arrangements

372AMeaning of “loan” and “interest”

372BPurchase and resale arrangements

372CDeposit arrangements

372DProfit share agency arrangements

Miscellaneous

373Information to be provided by the investor

376Application for postponement of tax pending appeal

377Identification of securities or shares on a disposal

378Meaning of “issue of securities or shares”

379Meaning of “disposal”

380Construction of references to being “held continuously”

381Meaning of “associate”

382Minor definitions etc

Part 8Other reliefs

Chapter 1Interest payments

The relief: introduction

383Relief for interest payments

384General restrictions on relief under Chapter

384ARestriction on relief where arrangements minimise risk to borrower

385General provisions about loans

386Loans partly meeting requirements

387Exclusion of double relief etc

Loans for plant or machinery

388Loan to buy plant or machinery for partnership use

389Eligibility requirements for interest on loans within section 388

390Loan to buy plant or machinery for employment use

391Eligibility requirements for interest on loans within section 390

Loans for interests in close companies

392Loan to buy interest in close company

393Eligibility requirements for interest on loans within section 392

394Meaning of “material interest” in section 393

395Meaning of “associate” in section 394

Loans for interests in employee-controlled companies

396Loan to buy interest in employee-controlled company

397Eligibility requirements for interest on loans within section 396

Loans for investing in partnerships

398Loan to invest in partnership

399Eligibility requirements for interest on loans within section 398

400Film partnerships

Loans for investing in co-operatives

401Loan to invest in co-operative

402Eligibility requirements for interest on loans within section 401

Loans for paying inheritance tax

403Loan to pay inheritance tax

404Eligibility requirements for interest on loans within section 403

405Carry back and forward of relief for interest on loans within section 403

General and supplementary

406Effect of recovery of capital in the case of some loans

407Events counting as recovery of capital for section 406

408Replacement loans

409Business successions between partnerships

410Other business successions and reorganisations

411Ineligibility of interest where business is occupation of commercial woodlands

Chapter 2Gift aid

413Overview of Chapter

414Relief for gifts to charity

415Meaning of “grossed up amount”

416Meaning of “qualifying donation”

417Meaning of “benefits associated with a gift”

Restrictions on associated benefits

418Restrictions on associated benefits

419Gifts and benefits linked to periods of less than 12 months

Admission rights

420Disregard of certain admission rights

421Admission rights: supplementary

Disqualified overseas gifts

422Disqualified overseas gifts

Measures to ensure donor's liability not less than tax treated as deducted

423Restriction of certain reliefs

424Charge to tax

425Total amount of income tax to which individual charged for a tax year

Election to carry back relief

426Election by donor: gift treated as made in previous tax year

Supplementary

427Meaning of “charged amount”

428Meaning of “gift aid declaration”

429Giving through self-assessment return

430“Charity” to include exempt bodies

Chapter 3Gifts of shares, securities and real property to charities etc

Entitlement to relief

431Relief for gifts of shares, securities and real property to charities etc

432Meaning of “qualifying investment”

433Meaning of “qualifying interest in land”

Amount of relief

434The relievable amount

435Incidental costs of making disposal

436Consideration

Value of net benefit to charity

437Value of net benefit to charity

438Market value of qualifying investments

439Meaning of “disposal-related obligation”

440Meaning and amount of “disposal-related liability”

Special provisions about qualifying interests in land

441Certificate required from charity

442Qualifying interests in land held jointly

443Calculation of relievable amount where joint disposal of interest in land

444Disqualifying events

Supplementary

445Prohibition against double relief

446“Charity” to include exempt bodies

Chapter 4Annual payments and patent royalties

447Overview of Chapter

448Relief for individuals

449Relief for other persons

450Other persons: payments ineligible for relief

451Special rule for persons affected by section 733 of ICTA

452The gross amount of a payment

Chapter 5Qualifying maintenance payments

453Tax reduction for qualifying maintenance payments

454Meaning of “qualifying maintenance payment”

455Child support maintenance payments

456Payments under orders for recovery of benefit etc

Chapter 6Miscellaneous other reliefs

Payments for life insurance etc

457Payments to trade unions

458Payments to police organisations

459Payments for benefit of family members

460Residence etc of claimants

Patent royalty receipts

461Spreading of patent royalty receipts

Part 9Special rules about settlements and trustees

Chapter 1Introduction

462Overview of Part

463Interpretation of Part

464Scottish trusts

Chapter 2General provision about settlements and trustees

465Overview of Chapter and interpretation

Settled property

466Meaning of “settled property” etc

467Meaning of “settlor” etc

468Meaning of “disposable property”

469Person ceasing to be a settlor

470Transfers between settlements

471Identification of settlor following transfer covered by section 470

472Settlor where property becomes settled because of variation of will etc

473Deceased person as settlor where variation of will etc

474Trustees of settlement to be treated as a single and distinct person

475Residence of trustees

476How to work out whether settlor meets condition C

477Sub-fund elections under Schedule 4ZA to TCGA 1992

478References to settled property etc in regulations

Chapter 3Special rates for trustees' income

479Trustees' accumulated or discretionary income to be charged at special rates

480Meaning of “accumulated or discretionary income”

481Other amounts to be charged at special rates for trustees

482Types of amount to be charged at special rates for trustees

483Sums paid by personal representatives to trustees

Chapter 4Trustees' expenses and special rates for trustees

484Trustees' expenses to be set against trustees' trust rate income

485Carry forward of unused expenses

486How allowable expenses are to be set against trust rate income

487Non-UK resident trustees

Chapter 5Share incentive plans

488Application of section 479 to trustees of approved share incentive plans

489“The applicable period” in relation to shares

490Interpretation of Chapter

Chapter 6Trustees' first slice of trust rate income

491Special rates not to apply to first slice of trustees' trust rate income

492Cases where settlor has made more than one settlement

Chapter 7Discretionary payments

Payments constituting income of beneficiary (other than employment income)

493Discretionary payments by trustees

494Grossing up of discretionary payment and payment of income tax

495Statement about deduction of income tax

496Income tax charged on trustees

Payments constituting employment income of beneficiary

496ADiscretionary payments by trustees: employment income

496BRelief for trustees

497Calculation of trustees' tax pool

498Types of income tax for the purposes of section 497

Chapter 8Trustees' expenses and beneficiary's income

499Application of Chapter

500Restrictions on use of trustees' expenses to reduce the beneficiary's income

501Non-UK resident beneficiaries

502Meaning of “untaxed income” in section 501

503How beneficiary's income is reduced

Chapter 9Unauthorised unit trusts

504Treatment of income of unauthorised unit trust

504ATreatment of capital expenditure of unauthorised unit trust

505Relief for trustees of unauthorised unit trust

506Special rules for trustees affected by section 733 of ICTA

Chapter 10Heritage maintenance settlements

507Overview of Chapter

Trustees' election in respect of income etc

508Election by trustees

509Change of circumstances during a tax year

Absence of election and income treated as income of settlor: special rules

510Sums applied for property maintenance purposes

511Prevention of double taxation: reimbursement of settlor

Application of property for non-heritage purposes: charge to tax

512Charge to tax on some settlements

513Income charged

514Persons liable

516Transfer of property between settlements

517Exemption for income treated as income of settlor

Part 10Special rules about charitable trusts etc

518Overview of Part

519Meaning of “charitable trust”

Gifts and other payments

520Gifts entitling donor to gift aid relief: income tax treated as paid

521Gifts entitling donor to gift aid relief: income tax liability and exemption

522Gifts of money from companies: income tax liability and exemption

523Payments from other charities: income tax liability and exemption

Other exemptions

524Exemption for profits etc of charitable trades

525Meaning of “charitable trade”

526Exemption for profits etc of small-scale trades

527Exemption from charges under provisions to which section 1016 applies

528Condition as to trading and miscellaneous incoming resources

529Exemption for profits from fund-raising events

530Exemption for profits from lotteries

531Exemption for property income etc

532Exemption for savings and investment income

533Exemption for public revenue dividends

534Exemption for transactions in deposits

535Exemption for offshore income gains

536Exemption for certain miscellaneous income

537Exemption for income from estates in administration

538Requirement to make claim

Restrictions on exemptions

539Restrictions on exemptions

540The non-exempt amount

541Attributing income to the non-exempt amount

542How income is attributed to the non-exempt amount

Non-charitable expenditure

543Meaning of “non-charitable expenditure”

544Section 543: supplementary

545Section 543(1)(f): meaning of expenditure

546Section 543(1)(f): tax year in which certain expenditure treated as incurred

547Section 543(1)(f): payment to body outside the UK

548Section 543(1)(i) and (j): investments and loans

Substantial donor transactions

549Transactions with substantial donors

550Meaning of “relievable gift”

551Non-charitable expenditure in substantial donor transactions

552Adjustment if section 551(1) and (2) applied to single transaction

553Section 551: certain payments and benefits to be ignored

554Transactions: exceptions

555Donors: exceptions

556Connected charities

557Substantial donor transactions: supplementary

Approved charitable investments and loans

558Approved charitable investments

559Securities which are approved charitable investments

560Conditions to be met for some securities

561Approved charitable loans

Carry back of excess non-charitable expenditure

562Excess expenditure treated as non-charitable expenditure of earlier years

563Rules for attributing excess expenditure to earlier years

564Adjustments in consequence of section 562

Part 10AAlternative finance arrangements

564AIntroduction

564B Meaning of “financial institution”

Arrangements that are alternative finance arrangements

564CPurchase and resale arrangements

564D Diminishing shared ownership arrangements

564E Deposit arrangements

564F Profit share agency arrangements

564G Investment bond arrangements

564H Provision not at arm's length: exclusion of arrangements from sections 564C to 564G

Meaning of “alternative finance return”

564IPurchase and resale arrangements

564J Purchase and resale arrangements where return in foreign currency

564K Diminishing shared ownership arrangements

564L Other arrangements

Treatment of alternative finance return as interest etc

564MTreatment of alternative finance return as interest for ITTOIA 2005

564N Alternative finance return under arrangements for trade or property business purposes

564O Relief for some alternative finance return under Chapter 1 of Part 8 etc

564P Tax relief schemes and arrangements

564Q Deduction of income tax at source under Part 15

Special rules for investment bond arrangements

564RTreatment of discount

564S Treatment of bond-holder and bond-issuer

564T Treatment as securities

564U Arrangements not unit trust scheme or offshore fund

564VExclusion of alternative finance return from consideration for sale of assets

564W Diminishing shared ownership arrangements not partnerships

564X Treatment of principal under profit share agency arrangements

564Y Provision not at arm's length: relevant return

Part 11Manufactured payments and repos

Chapter 1Introduction

565Overview of Part

566Meaning of “UK shares” and “UK securities”

567Meaning of “overseas shares”, “overseas securities” and “overseas dividend”

568Meaning of “stock lending arrangement”

569Meaning of “repo”

570Meaning of “buying back” securities etc

571Meaning of “related” agreements

Chapter 2Manufactured payments

572Overview of Chapter

572AMeaning of “avoidance arrangements”

Manufactured dividends on UK shares

573Manufactured dividends on UK shares

574Allowable deductions...

575Allowable deductions: restriction on double-counting

576Manufactured dividends on UK shares: Real Estate Investment Trusts

577Statements about manufactured dividends

Manufactured interest on UK securities

578Manufactured interest on UK securities

579Allowable deductions...

580Allowable deductions: restriction on double counting

Manufactured overseas dividends

581Manufactured overseas dividends

581AAvoidance arrangements

582Powers about manufactured overseas dividends

Special cases

583Manufactured payments exceeding underlying payments

584Manufactured payments less than underlying payments

585Power to deal with other special cases

General regulation-making powers

586Powers about administrative provisions

587Power for manufactured payments to be eligible for relief

588Regulation-making powers: general

Interpretation

589Meaning of “gross amount”: interest and manufactured overseas dividends

590Meaning of “relevant withholding tax”

591Interpretation of other terms used in Chapter

Chapter 3Tax credits: stock lending arrangements and repos

Stock lending arrangements

592No tax credits for borrower under stock lending arrangement

593No tax credits for interim holder under repo

594No tax credits for original owner under repo

Interpretation

595Meaning of “manufactured dividend”

Chapter 4Deemed manufactured payments

Stock lending arrangements

596Deemed manufactured payments: stock lending arrangements

597Deemed interest: cash collateral under stock lending arrangements

598Cash collateral under stock lending arrangements: supplementary

599Sections 597 and 598: quasi-stock lending arrangements and quasi-cash collateral

600Meaning of “quasi-stock lending arrangements” and “quasi-cash collateral”

601Repo cases in which deeming rules apply

602Deemed manufactured payments: repos

603Deemed deductions of tax

604Deemed increase in repurchase price: price differences under repos

605Deemed increase in repurchase price: other income tax purposes

Interpretation

606Interpretation of Chapter

Chapter 5Price differences under repos

Main tax treatment

607Treatment of price differences under repos

608Exceptions to section 607

Additional tax treatment

609Additional income tax consequences of price differences

Interpretation

610Repurchase price in deemed manufactured payment case

Power to modify

611Power to modify Chapter in non-arm's length case

Chapter 6Powers to modify repo provisions

612Non-standard repo cases

613Redemption arrangements

614Sections 612 and 613: supplementary

Part 11ALeasing arrangements: finance leases and loans

Chapter 1Introduction

614AOverview of Part

Meaning of expressions about rent

614AANormal rent

614ABAccountancy rental earnings

614ACRental earnings

Chapter 2Finance leases with return in capital form

614BArrangements to which this Chapter applies

614BAPurposes of this Chapter

Leases to which this Chapter applies

614BBApplication of this Chapter

614BCThe conditions referred to in section 614BB(1)

614BDProvisions supplementing section 614BC

614BEThe arrangements and circumstances referred to in section 614BC(8)

Current lessor taxed by reference to accountancy rental earnings

614BFCurrent lessor taxed by reference to accountancy rental earnings

Reduction of taxable rent by cumulative rental excesses

614BGReduction of taxable rent by cumulative rental excesses: introduction

614BHMeaning of “accountancy rental excess” and “cumulative accountancy rental excess”

614BIReduction of taxable rent by the cumulative accountancy rental excess

614BJMeaning of “normal rental excess” and “cumulative normal rental excess”

614BKReduction of taxable rent by the cumulative normal rental excess

Relief for bad debts by reduction of cumulative rental excesses

614BLRelief for bad debts: reduction of cumulative accountancy rental excess

614BMRecovery of bad debts following reduction under section 614BL

614BNRelief for bad debts: reduction of cumulative normal rental excess

614BORecovery of bad debts following reduction under section 614BN

Effect of disposals

614BPEffect of disposals of leases: general

614BQAssignments on which neither a gain nor a loss accrues

Capital allowances: claw-back of major lump sum

614BREffect of capital allowances: introduction

614BSCases where expenditure taken into account under Part 2, 5 or 8 of CAA 2001

614BTCases where expenditure taken into account under other provisions of CAA 2001

614BUCapital allowances deductions: waste disposal and cemeteries

614BVCapital allowances deductions: films and sound recordings

614BWContributors to capital expenditure

Schemes to which this Chapter does not at first apply

614BXPre-26 November 1996 schemes where this Chapter does not at first apply

614BYPost-25 November 1996 schemes to which Chapter 3 applied first

Chapter 3Other finance leases

614CIntroduction to Chapter

614CAPurpose of this Chapter

Leases to which this Chapter applies

614CBLeases to which this Chapter applies

Current lessor taxed by reference to accountancy rental earnings

614CCCurrent lessor taxed by reference to accountancy rental earnings

Application of provisions of Chapter 2 for purposes of this Chapter

614CDApplication of provisions of Chapter 2 for purposes of this Chapter

Chapter 4Supplementary provisions

614DPre-26 November 1996 schemes and post-25 November 1996 schemes

614DATime apportionment where periods of account do not coincide

614DBPeriods of account and related periods of account and tax years

614DCConnected persons

614DDAssets which represent the leased asset

614DEParent undertakings and consolidated group accounts

614DFAssessments and adjustments

614DGInterpretation

Part 12Accrued income profits

Chapter 1Introduction

615Overview of Part

Chapter 2Accrued income profits and losses

Charge to tax

616Charge to tax on accrued income profits

617Income charged

618Person liable

Securities to which Chapter applies

619Meaning of “securities” and when securities are of the same kind

Transfers to which Chapter applies

620Transactions which are transfers: general

621Transferors and transferees

622Application of Chapter to different kinds of transfer

623Transfers with accrued interest

624Transfers without accrued interest

625Transfers with unrealised interest

626Transfers of variable rate securities

627Meaning of “variable rate securities”

Calculating accrued income profits and losses

628Making accrued income profits and losses: general rule

629Calculating accrued income profits and losses where section 628 applies

630Making accrued income profits: settlement day outside interest period

631Amount of accrued income profits where section 630 applies

The payments treated as made on transfers

632Payment on transfer with accrued interest

633Payment on transfer without accrued interest

634Payment on transfer with unrealised interest

635Payment on transfer of variable rate securities

Exception where there is a transfer to a legatee

636Exception where there is a transfer to a legatee

Relief for losses

637Accrued income losses treated as payments in next interest period

Excluded transferors and transferees

638Excluded persons: disregard of certain payments and transfers

639Small holdings: individuals

640Small holdings: personal representatives

641Small holdings: trustees of a disabled person's trusts

643Non-residents

644Individuals to whom the remittance basis applies

645Charitable trusts etc

646Pension scheme trustees

647Makers of manufactured payments

Further transactions treated as transfers

648Strips of gilt-edged securities

649New securities issued with extra return

650Trading stock appropriations etc

651Owner becoming entitled to securities as trustee

652Securities ceasing to be held on charitable trusts

Excluded transfers

653Stock lending

654Sale and repurchase arrangements

655Transfers under sale and repurchase arrangements

656Power to modify: non-standard sale and repurchase arrangements

657Power to modify: redemption arrangements

658Powers to modify: supplementary

Special rules about some calculations

659Transfers with or without accrued interest: interest in default

660Transfers with unrealised interest: interest in default

661Successive transfers with unrealised interest in default

662New securities issued with extra return: special rules about payments

663Transfers without accrued interest to makers of manufactured payments

664Foreign currency securities: sterling equivalent of payments on transfers

665Foreign currency securities: unrealised interest payable in foreign currency

Nominees and trustees

666Certain transfers by or to nominees or trustees treated as made by or to others

667Trustees' accrued income profits treated as settlement income

Relief where transfer proceeds unremittable

668Relief for unremittable transfer proceeds: general

669Relief for unremittable transfer proceeds: section 630 profits

670Withdrawal of relief

Individuals to whom remittance basis applies

670AIndividuals to whom remittance basis applies

Interpretation

671Meaning of “interest”

672Meaning of “interest payment day”

673Meaning of “interest period”

674Meaning of “the settlement day”

675The holding of securities

676Nominal value of securities: general

677Nominal value: foreign currency securities

Chapter 3Exemptions relating to interest on securities

678Exemptions relating to interest on securities: preliminary

679Interest on securities involving accrued income losses: general

680Interest on securities involving accrued income losses: foreign trustees

681Unrealised interest received by transferee after transfer

Part 12ASale and lease-back etc

Chapter 1Payments connected with transferred land

Application of the Chapter

681AATransferor or associate becomes liable for payment of rent

681ABTransferor or associate becomes liable for payment other than rent

681ACRelevant income tax relief and relevant deduction from earnings

Relief: restriction and carrying forward

681ADRelevant income tax relief: deduction not to exceed commercial rent

Certain deductions from earnings: restriction and carrying forward of relief

681AEDeduction from earnings not to exceed commercial rent

681AFCarrying forward parts of payments

681AGAggregation and apportionment of payments

681AHPayments made for later periods

Interpretation etc

681AIExclusion of service charges etc

681AJCommercial rent: comparison with rent under a lease

681AKCommercial rent: comparison with payments other than rent

681ALLease and rent

681AMAssociated persons

681ANLand outside the UK

Chapter 2New lease of land after assignment or surrender

Application of the Chapter

681BANew lease after assignment or surrender

Taxation of consideration

681BBTaxation of consideration

681BCPosition where new lease does not include all original property

Relief for rent under new lease

681BDRelief for rent under new lease

New lease treated as ending

681BENew lease treated as ending

681BFPosition where rent reduces

681BGPosition where lease may be ended

681BHPosition where lease may be varied

681BILease treated as ending: rentcharge

Lease varied to provide for increased rent

681BJLease varied to provide for increased rent

Interpretation

681BKRelevant income tax relief

681BLLinked persons

681BMLease, lessee, lessor and rent

Chapter 3Leased trading assets

Application of the Chapter

681CAProfessions and vocations

681CBLeased trading assets

Relief: restriction and carrying forward

681CCTax deduction not to exceed commercial rent

681CDLong funding finance leases

681CECommercial rent

Interpretation

681CGRelevant asset

Chapter 4Leased assets: capital sums

Application of the Chapter

681DAApplication of the Chapter

681DBPayment under lease

681DCSum obtained

Charge to income tax

681DDCharge to income tax

681DEHire-purchase agreements

681DFAdjustments where sum obtained before payment made

Obtaining of sum

681DGSum obtained in respect of interest

681DHSum obtained in respect of lessee's interest

681DIDisposal of interest to associate

Apportionment

681DJApportionment of payments made and of sums obtained

681DKManner of apportionment

Interpretation

681DLAssociates

681DMCapital sum

681DORelevant asset

681DPRelevant tax relief

Part 13Tax avoidance

Chapter 1Transactions in securities

682Overview of Chapter

683Meaning of “income tax advantage”

Person liable to counteraction of income tax advantages

684Person liable to counteraction of income tax advantage

685Exception where no tax avoidance object shown

Circumstances in which income tax advantages obtained or obtainable

686Abnormal dividends used for exemptions or reliefs (circumstance A)

687Deductions from profits obtained following distribution or dealings (circumstance B)

688Receipt of consideration representing company's assets, future receipts or trading stock (circumstance C)

689Receipt of consideration in connection with relevant company distribution (circumstance D)

690Receipt of assets of relevant company (circumstance E)

691Meaning of “relevant company” in sections 689 and 690

692Abnormal dividends: general

693Abnormal dividends: the excessive return condition

694Abnormal dividends: the excessive accrual condition

Procedure for counteraction of income tax advantages

695Preliminary notification that section 684 may apply

696Opposed notifications: statutory declarations

697Opposed notifications: determinations by tribunal

698Counteraction notices

699Limit on amount assessed in section 689 and 690 cases

700Timing of assessments in section 690 cases

Clearance procedure ...

701Application for clearance of transactions

702Effect of clearance notification under section 701

703Power to obtain information

704The tribunal

705Appeals against counteraction notices

706Rehearing by tribunal of appeal against counteraction notice

707Statement of case by tribunal for opinion of High Court or Court of Session

708Cases before High Court or Court of Session

709Effect of appeals against tribunal's determination under section 706

710Appeals from High Court or Court of Session

711Proceedings in Northern Ireland

Supplementary

712Application of Chapter where individual within section 684 dies

713Interpretation of Chapter

Chapter 2Transfer of assets abroad

714Overview of Chapter

715Meaning of “relevant transaction”

716Meaning of “relevant transfer” and “transfer”

717Meaning of “assets” etc

718Meaning of “person abroad” etc

719Meaning of “associated operation”

Charge where power to enjoy income

720Charge to tax on income treated as arising under section 721

721Individuals with power to enjoy income as a result of relevant transactions

722When an individual has power to enjoy income of person abroad

723The enjoyment conditions

724Special rules where benefit provided out of income of person abroad

725Reduction in amount charged where controlled foreign company involved

726Non-UK domiciled individuals to whom remittance basis applies

Charge where capital sums received

727Charge to tax on income treated as arising under section 728

728Individuals receiving capital sums as a result of relevant transactions

729The capital receipt conditions

730Non-UK domiciled individuals to whom remittance basis applies

Charge where benefit received

731Charge to tax on income treated as arising under section 732

732Non-transferors receiving a benefit as a result of relevant transactions

733Income charged under section 731

734Reduction in amount charged: previous capital gains tax charge

735Non-UK domiciled individuals to whom remittance basis applies

735ASection 735: relevant income and benefits relating to foreign deemed income

Exemptions: no tax avoidance purpose or genuine commercial transaction

736Exemptions: introduction

737Exemption: all relevant transactions post-4 December 2005 transactions

738Meaning of “commercial transaction”

739Exemption: all relevant transactions pre-5 December 2005 transactions

740Exemption: relevant transactions include both pre-5 December 2005 and post-4 December 2005 transactions

741Application of section 742 (partial exemption)

742Partial exemption where later associated operations fail conditions

743No duplication of charges

744Meaning of taking income into account in charging income tax for section 743

745Rates of tax applicable to income charged under sections 720 and 727 etc

746Deductions and reliefs where individual charged under section 720 or 727

747Amounts corresponding to accrued income profits and related interest

Supplementary

748Power to obtain information

749Restrictions on particulars to be provided by relevant lawyers

750Restrictions on particulars to be provided by banks

751 The tribunal’s jurisdiction on appeals

Chapter 3Transactions in land

752Overview of Chapter

753Meaning of disposing of land

754Priority of other income tax provisions

Charge on gains from transactions in land

755Charge to tax on gains from transactions in land

756Income treated as arising when gains obtained from some land disposals

757Person obtaining gain

758Income charged

759Person liable

760Method of calculating gain

Further provisions relevant to the charge

761Transactions, arrangements, sales and realisations relevant for Chapter

762Tracing value

763Meaning of “another person”

764Valuations and apportionments

765Exemption: gain attributable to period before intention to develop formed

766Exemption: disposals of shares in companies holding land as trading stock

767Exemption: private residences

Recovery of tax

768Recovery of tax where consideration receivable by person not assessed

769Recovery of tax: certificates of tax paid etc

Clearances and power to obtain information

770Clearance procedure

771Power to obtain information

Interpretation

772Interpretation of Chapter

Chapter 4Sales of occupation income

773Overview of Chapter

774Meaning of “occupation”

775Priority of other tax provisions

Charge on sale of occupation income

776Charge to tax on sale of occupation income

777Conditions for sections 778 and 779 to apply

778Income arising where capital amount other than derivative property or right obtained

779Income arising where derivative property or right obtained

Further provisions relevant to the charge

780Transactions, arrangements, sales and realisations relevant for Chapter

781Tracing value

782Meaning of “other person”

783Valuations and apportionments

Exemption for sales of going concerns

784Exemption for sales of going concerns

785Restriction on exemption: sales of future earnings

Recovery of tax

786Recovery of tax where consideration receivable by person not assessed

787Recovery of tax: certificates of tax paid etc

Power to obtain information

788Power to obtain information

Interpretation

789Minor definitions

Chapter 5Avoidance involving trading losses

790Overview of Chapter

Individuals in partnership: recovery of excess relief

791Charge to tax on income treated as received under section 792

792Partners claiming excess sideways or capital gains relief

793Calculating the amount of income treated as received

794Meaning of “the total amount of trade losses claimed” etc

795Meaning of “post-1 December 2004 loss”

Individuals claiming relief for film-related trading losses

796Charge to tax on income treated as received under section 797

797Individuals claiming sideways or capital gains relief for film-related losses

798Meaning of “non-taxable consideration” etc

799Meaning of “disposal of a right of the individual to profits” etc

800Meaning of “film-related losses” etc

801Meaning of “capital contribution”

802Exclusion of amounts in calculating capital contribution by a partner

803Prohibition against double counting

Individuals in partnership claiming relief for licence-related trading losses

804Charge to tax on income treated as received under section 805

805Partners claiming relief for licence-related trading losses

806Calculation of amount of income treated as received by the individual

807Supplementary provision relating to calculation in section 806

808Meaning of “disposal of the licence” etc

809Other definitions

Chapter 5ATransfers of income streams

809AZAApplication of Chapter

809AZBValue of transferred income stream treated as income

809AZCException: amount otherwise taxed

809AZDException: certain annuities

809AZEException: transfer by way of security

809AZFPartnership shares

809AZGInterpretation

Chapter 5BFinance arrangements

Type 1 arrangements

809BZAType 1 finance arrangement defined

809BZBCertain tax consequences not to have effect

809BZCPayments treated as borrower's income

809BZDDeemed interest if borrower is not a partnership

809BZEDeemed interest if borrower is a partnership

Type 2 arrangements

809BZFType 2 finance arrangement defined

809BZGRelevant change in relation to partnership

809BZHCertain tax consequences not to have effect

809BZIDeemed interest

Type 3 arrangements

809BZJType 3 finance arrangement defined

809BZKCertain tax consequences not to have effect

809BZLDeemed interest

809BZMExceptions: preliminary

809BZNExceptions

809BZOExceptions: relevant person

809BZPPower to make further exceptions

Supplementary

809BZRArrangements

Chapter 5CLoan or credit transactions

809CZALoan or credit transaction defined

809CZBCertain payments treated as yearly interest

809CZCTax charged on income transferred

Chapter 6Avoidance involving leases of plant and machinery

809ZAPlant and machinery leases: capital receipts to be treated as income

809ZBSection 809ZA: interpretation

809ZCSection 809ZA: lease of plant and machinery and other property

809ZDSection 809ZA: expectation that relevant capital payment will not be paid

809ZECapital payment”, “relevant capital payment” etc

809ZFFurther interpretation of section 809ZA etc

Chapter 7Avoidance involving obtaining tax relief for interest

809ZGTax relief schemes and arrangements

Part 14Income tax liability: miscellaneous rules

Chapter A1Remittance basis

809AOverview of Chapter

Application of remittance basis

809BClaim for remittance basis to apply

809CClaim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply

809DApplication of remittance basis without claim where unremitted foreign income and gains under £2,000

809EApplication of remittance basis without claim: other cases

Effect of section 809B, 809D or 809E applying

809FEffect on what is chargeable

809GClaim for remittance basis: effect on allowances etc

809HClaim for remittance basis by long-term UK resident: charge

809IRemittance basis charge: income and gains treated as remitted

809JSection 809I: order of remittances

Remittance of income and gains: introduction

809KSections 809L to 809Z6: introduction

Remittance of income and gains: meaning of “remitted to the United Kingdom”

809LMeaning of “remitted to the United Kingdom”

809MMeaning of “relevant person”

809NSection 809L: gift recipients, qualifying property and enjoyment

809OSection 809L: dealings where there is a connected operation

Remittance of income and gains: amount remitted

809PSection 809L: amount remitted

Remittance of income and gains: transfers from mixed funds

809QSections 809L and 809P: transfers from mixed funds

809RSection 809Q: composition of mixed fund

809SSection 809Q: anti-avoidance

Remittance of income and gains: supplementary

809TForeign chargeable gains accruing on disposal made otherwise than for full consideration

809UDeemed income or gains not to be regarded as remitted before time when they are treated as arising or accruing

Remittance of income and gains: property treated as not remitted

809VMoney paid to the Commissioners

809WConsideration for certain services

809XExempt property

809YProperty that ceases to be exempt property treated as remitted

809ZPublic access rule: general

809Z1Public access rule: relevant VAT relief

809Z2Personal use rule

809Z3Repair rule

809Z4Temporary importation rule

809Z5Notional remitted amount

809Z6Exempt property: other interpretation

Interpretation of Chapter

809Z7Interpretation of Chapter

Chapter 1Limits on liability to income tax of non-UK residents

810Overview of Chapter

Limit for non-UK resident individuals, trustees etc

811Limit on liability to income tax of non-UK residents

812Case where limit not to apply

813Meaning of “disregarded income”

814Meaning of “disregarded transaction income”

Limit for non-UK resident companies

815Limit on liability to income tax of non-UK resident companies

816Meaning of “disregarded company income”

The independent broker conditions

817The independent broker conditions

The independent investment manager conditions

818The independent investment manager conditions

819Investment managers: the 20% rule

820Meaning of “qualifying period”

821Meaning of “relevant disregarded income”

822Meaning of “beneficial entitlement”

823Treatment of transactions where requirements of 20% rule not met

824Application of 20% rule to collective investment schemes

Supplementary

825Meaning of “disregarded savings and investment income”

826Meaning of “disregarded annual payments”

827Meaning of “investment manager” and “investment transaction”

828Transactions through brokers and investment managers

Chapter 1AExemption for persons not domiciled in United Kingdom

828AIntroduction

828BConditions to be met

828CThe exemption

828DInterpretation of Chapter

Chapter 2Residence

829Residence of individuals temporarily abroad

830Residence of individuals working abroad

831Foreign income of individuals in the United Kingdom for temporary purpose

832Employment income of individuals in the United Kingdom for temporary purpose

833Visiting forces and staff of designated allied headquarters

834Residence of personal representatives

835Residence rules for trustees ...

835AResidence of companies

Chapter 2ADomicile

835BDomicile for income tax purposes of overseas electors

Chapter 2BUK representative of non-UK resident

835COverview of Chapter

835DIncome tax chargeable on company's income: application

Branches and agencies

835EBranch or agency treated as UK representative

835FTrade or profession carried on in partnership

Persons who are not UK representatives

835IInvestment managers

835JPersons acting under alternative finance arrangements

835KLloyd's agents

The independent broker conditions

835LThe independent broker conditions

The independent investment manager conditions

835MThe independent investment manager conditions

835NInvestment managers: the 20% rule

835OMeaning of “qualifying period”, “relevant disregarded income” and “beneficial entitlement”

835PTreatment of transactions where 20% rule not met

835QApplication of 20% rule to collective investment schemes

Supplementary

835RSupplementary provision

835SInterpretation of Chapter

Chapter 2CIncome tax obligations and liabilities imposed on UK representatives

835TIntroduction to Chapter

835UObligations and liabilities of UK representative

835VExceptions: notices and information

835WExceptions: criminal offences and penalties etc

835XIndemnities

835YMeaning of “independent agent”

Chapter 3Jointly held property

836Jointly held property

837Jointly held property: declarations of unequal beneficial interests

Chapter 3ABanks etc in compulsory liquidation

837AOverview of Chapter

837BApplication of Chapter

837CCharge to income tax on winding up receipts

837DTransfer of rights to payment

837EAllowable deductions

837FElection to carry back

837GRelationship of Chapter with other income tax provisions

837HInterpretation of Chapter

Chapter 4Other miscellaneous rules

838Local authorities and local authority associations

839Issue departments of the Reserve Bank of India and the State Bank of Pakistan

840Government securities held by non-UK resident central banks

841Official agents of Commonwealth countries etc

842European Economic Interest Groupings

843Restriction of deductions for annual payments

844Letters patent etc: exempting provisions

845Extra return to be treated as interest etc

846Interpretation of section 845

Part 15Deduction of income tax at source

Chapter 1Introduction

847Overview of Part

848Income tax deducted at source treated as income tax paid by recipient

849Interaction with other Income Tax Acts provisions

Chapter 2Deduction by deposit-takers and building societies

850Overview of Chapter

Duty to deduct sums representing income tax

851Duty to deduct sums representing income tax

852Power to make regulations disapplying section 851

Deposit-takers and relevant investments

853Meaning of “deposit-taker”

854Power to prescribe persons as deposit-takers

855Meaning of “investment” and “deposit”

856Investments which are relevant investments

857Investments to be treated as being or as not being relevant investments

Investments which are not relevant investments: non-UK resident beneficiaries

858Declarations of non-UK residence: individuals

859Declarations of non-UK residence: Scottish partnerships

860Declarations of non-UK residence: personal representatives

861Declarations of non-UK residence: settlements

862Inspection of declarations

Other investments which are not relevant investments

863General client account deposits

864Qualifying uncertificated eligible debt security units

865Qualifying certificates of deposit

866Qualifying time deposits

867Lloyd's premium trust funds

868Investments held outside the United Kingdom

869Sale and repurchase of securities

870Other investments

Supplementary

871Power to make regulations to give effect to Chapter

872Power to make orders amending Chapter

873Discretionary or accumulation settlements

Chapter 3Deduction from certain payments of yearly interest

Duty to deduct sums representing income tax

874Duty to deduct from certain payments of yearly interest

Exceptions from duty to deduct

875Interest paid by building societies

876Interest paid by deposit-takers

877UK public revenue dividends

878Interest paid by banks

879Interest paid on advances from banks

880Interest paid on advances from building societies

881National Savings Bank interest

882Quoted Eurobond interest

883Interest on loan to buy life annuity

884Relevant foreign income

885Authorised persons dealing in financial instruments

886Interest paid by recognised clearing houses etc

887Industrial and provident society payments

888Statutory interest

Chapter 4Deduction from payments in respect of building society securities

889Payments in respect of building society securities

Chapter 5Deduction from payments of UK public revenue dividends

890Overview of Chapter

891Meaning of “UK public revenue dividend”

Duty to deduct sums representing income tax

892Duty to deduct from certain UK public revenue dividends

Payments which are payable gross

893Payments of UK public revenue dividends which are payable gross

894Treasury directions

Deduction at source applications

895Deduction at source application

896Withdrawal of application

897Power to make regulations

Chapter 6Deduction from annual payments and patent royalties

898Overview of Chapter

899Meaning of “qualifying annual payment”

Duty to deduct from annual payments

900Deduction from commercial payments made by individuals

901Deduction from annual payments made by other persons

902Meaning of “applicable rate” in section 901

Duty to deduct from patent royalties

903Deduction from patent royalties

Supplementary

904Annual payments for dividends or non-taxable consideration

905Interpretation of Chapter

Chapter 7Deduction from other payments connected with intellectual property

Certain royalties etc where usual place of abode of owner is abroad

906Certain royalties etc where usual place of abode of owner is abroad

907Meaning of “relevant intellectual property right”

908Royalty payments etc made through UK resident agents

909Royalty payments: further provision

Proceeds of a sale of patent rights

910Proceeds of a sale of patent rights: payments to non-UK residents

Chapter 8Chapters 6 and 7: special provision in relation to royalties

Deduction at special rates

911Double taxation arrangements: deduction at treaty rate

912Power to make directions disapplying section 911

913Interpretation of sections 911 and 912

Discretion to make payments gross

914EU companies: discretion to make payment gross

915Power to make directions disapplying section 914

916Duty of payee to notify if payment not exempt

917Supplementary

Chapter 9Manufactured payments

Manufactured dividends

918Manufactured dividends on UK shares: Real Estate Investment Trusts

Manufactured interest

919Manufactured interest on UK securities: payments by UK residents etc

920Foreign payers of manufactured interest: the reverse charge

921Cases where interest on underlying securities paid gross

Manufactured overseas dividends

922Manufactured overseas dividends: payments by UK residents etc

923Foreign payers of manufactured overseas dividends: the reverse charge

924Power to reduce section 923 liability

925Power to provide set-off entitlement

925ACreditor repos

925BDebtor repos

925CActual payments ignored if section 925A or 925B applies

925DPower to modify repo sections

925ECases where section 925D applies: non-standard repos

925FInterpretation of the repo sections

Supplementary

926Interpretation of Chapter

927Regulation-making powers: general

Chapter 10Deduction from non-commercial payments by companies

928Chargeable payments connected with exempt distributions

Chapter 11Payments between companies etc: exception from duties to deduct

929Overview of Chapter

Exception from duties to deduct for excepted payments

930Exception from duties to deduct sums representing income tax

931Power to make directions disapplying section 930

932Meaning of “qualifying partnership”

Excepted payments

933UK resident companies

934Non-UK resident companies

935PEP and ISA managers

936Recipients who are to be paid gross

937Partnerships

Incorrect belief that payment is an excepted payment

938Consequences of reasonable but incorrect belief

Chapter 12Funding bonds

939Duty to retain bonds where issue treated as payment of interest

940Exception from duty to retain bonds

940ANo appropriate bond or combination of bonds

Chapter 13Unauthorised unit trusts

941Deemed payments to unit holders and deemed deductions of income tax

942Income tax to be collected from trustees

943Calculation of trustees' income pool

Chapter 14Tax avoidance: directions for duty to deduct to apply

944Directions for deduction from payments to non-UK residents

Chapter 15Collection: deposit-takers, building societies and certain companies

945Overview of Chapter

946Payments within this section

947Return periods

948Meaning of “accounting period”

Returns of income tax

949Payments in an accounting period

950Payments otherwise than in an accounting period

Collection and payment of income tax

951Collection and payment of income tax

952Conditions for a set-off claim

953How a set-off claim works

954Proceedings begun after a set-off claim is made

955Proceedings begun before a set-off claim is made

Assessments and errors

956Assessments where section 946 payment included in return

957Assessments in other cases

958Payer's duty to deliver amended return

959Application of Income Tax Acts provisions about time limits for assessments

960Further provisions about assessments

Supplementary

961Relationship between Chapter and Income Tax Acts powers

962Power to make regulations modifying Chapter

Chapter 16Collection: certain payments by other persons

963Collection of income tax on certain payments by other persons

Chapter 17Collection through self-assessment return

964Collection through self-assessment return

Chapter 18Other regimes involving the deduction of income tax at source

Visiting performers

965Overview of sections 966 to 970

966Duty to deduct and account for sums representing income tax

967Calculation of sums representing income tax

968Treatment of sums representing income tax

970Supplementary

Non-resident landlords

971Income tax due in respect of income of non-resident landlords

972Regulations under section 971

Real Estate Investment Trusts

973Income tax due in respect of distributions

974Regulations under section 973

Chapter 19General

Supplementary

975Statements about deduction of income tax

976Arrangements for payments of interest less tax or at specified net rate

977Payments to companies

978Application to public departments

979Designated international organisations: exceptions from duties to deduct

979AFSCS payments representing interest

980Derivative contracts: exception from duties to deduct

981Foreign currency securities etc: exception from duties to deduct

982Income tax is calculated by reference to gross amounts

Interpretation

983Meaning of “deposit”

984Meaning of “financial instrument”

985Meaning of “qualifying certificate of deposit”

986Meaning of “qualifying uncertificated eligible debt security unit”

987Meaning of “quoted Eurobond”

Part 16Income Tax Acts definitions etc

Chapter 1Definitions

988Overview of Chapter

989The definitions

990Meaning of “Act”

991Meaning of “bank”

992Meaning of “company”

993Meaning of “connected” persons

994Meaning of “connected” persons: supplementary

995Meaning of “control”

996Meaning of “farming” and related expressions

997Meaning of “generally accepted accounting practice” and related expressions

998Meaning of “grossing up”

998AMeaning of “hire-purchase agreement”

999Meaning of “local authority”

1000Meaning of “local authority association”

1001Meaning of “offshore installation”

1002Regulations about the meaning of “offshore installation”

1003Meaning of “oil and gas exploration and appraisal”

1004Meaning of “property investment LLP”

1005Meaning of “recognised stock exchange”etc

1006Meaning of “research and development”

1007Meaning of “unit trust scheme”

Chapter 2Other Income Tax Acts provisions

1009Sources of income within the charge to income tax or corporation tax

1010Application of Income Tax Acts to recognised investment exchanges

1011References to married persons, or civil partners, living together

1012Relationship between rules on highest part of total income

1013Territorial sea of the United Kingdom

1014Orders and regulations

1015Territorial scope of charges under certain provisions to which section 1016 applies

1016Table of provisions to which this section applies

Part 17Definitions for purposes of Act and final provisions

Definitions for the purposes of Act

1017Abbreviated references to Acts

1018“Act” to include Scottish and Northern Ireland legislation in some cases

1019Meaning of “certificate of deposit”

1020Claims and elections

1021Application of definitions of “connected” persons and “control”

1022Meaning of “debenture”

1023Meaning of “double taxation arrangements”

1024Meaning of “gilt-edged securities”

1025Meaning of “modified net income”

1026Meaning of “non-qualifying income” for the purposes of section 1025

Final provisions

1027Minor and consequential amendments

1028Power to make consequential provision

1029Power to undo changes

1030Transitional provisions and savings

1031Repeals and revocations

1032Index of defined expressions

1034Commencement

1035Short title

SCHEDULE 1Minor and consequential amendments

Part 1Income and Corporation Taxes Act 1988

1The Income and Corporation Taxes Act 1988 (c. 1) is...

2Omit sections 1 to 2 (the charge to income tax,...

3Omit section 3 (certain income charged at basic rate).

4Omit section 4 (construction of references in Income Tax Acts...

5Omit section 7(1) (deduction of income tax from payments to...

6Minor and consequential amendments

7Omit section 42A (non-resident landlords and their representatives).

8Omit sections 50, 51 and 51AA (United Kingdom securities: Treasury...

9In section 56(3)(c) (transactions in deposits with and without certificates...

10Minor and consequential amendments

11Omit section 109A (relief for post-cessation expenditure).

12Minor and consequential amendments

13Omit section 117 (restriction on relief for limited partners: individuals)....

14Minor and consequential amendments

15Minor and consequential amendments

16Minor and consequential amendments

17Minor and consequential amendments

18Omit sections 118ZE to 118ZK (restriction on reliefs for non-active...

19Omit sections 118ZL and 118ZM (restriction on reliefs for partnerships...

20Omit sections 118ZN and 118ZO (partners: meaning of “contribution to...

21Minor and consequential amendments

22In section 209A(4) (section 209(3AA): link to shares of company...

23Omit section 214(1)(b) (chargeable payments connected with exempt distributions: deduction...

24(1) Amend section 231AA (no tax credit for borrower under...

25(1) Amend section 231AB (no tax credit for original owner...

26In section 231B(12) (consequences of certain arrangements to pass on...

27Minor and consequential amendments

28Minor and consequential amendments

29Minor and consequential amendments

30Minor and consequential amendments

31Minor and consequential amendments

32Minor and consequential amendments

33Minor and consequential amendments

34Minor and consequential amendments

35Minor and consequential amendments

36(1) Amend section 266 (life assurance premiums) as follows.

37Minor and consequential amendments

38Omit section 276 (effect on relief of charges on income)....

39Omit section 277 (partners).

40(1) Amend section 278 (non-residents) as follows.

41Omit section 282 (construction of references to spouses or civil...

42Omit sections 282A and 282B (jointly held property).

43Omit section 305A (relief for loss on disposal of shares)....

44In section 312(2A) (interpretation of Chapter 3), as it applies...

45Omit section 320 (Commonwealth Agents-General and official agents etc).

46Omit section 323 (visiting forces).

47Omit section 332A (venture capital trusts: relief).

48Omit section 334 (Commonwealth and Irish citizens temporarily abroad).

49Omit section 335 (residence of persons working abroad).

50Omit section 336 (temporary residents in the United Kingdom).

51(1) Amend section 339 (charges on income: donations to charity)...

52Minor and consequential amendments

53Omit section 347B (qualifying maintenance payments).

54Omit section 348 (payments out of profits or gains brought...

55Omit section 349 (payments not out of profits or gains...

56Omit section 349ZA (extension of section 349: proceeds of sale...

57Omit sections 349A to 349D (exceptions to section 349 for...

58Omit section 349E (deductions under section 349(1): payment of royalties...

59Omit section 350 (charge to tax where payments made under...

60Omit section 350A (UK public revenue dividends: deduction of tax)....

61Omit section 352 (certificates of deduction of tax).

62(1) Amend section 353 (relief for payments of interest: general)...

63Omit section 359 (loan to buy machinery or plant).

64Omit section 360 (loan to buy interest in close company)....

65Omit section 360A (meaning of “material interest” in section 360)....

66Omit section 361 (loan to buy interest in co-operative or...

67Omit section 362 (loan to buy into partnership).

68Omit section 363 (provisions supplementary to sections 360 to 362)....

69Omit section 364 (loan to pay inheritance tax).

70In section 366(1)(c) (information) omit the words from “(or” to...

71In section 367 (provisions supplementary to sections 354 to 366)...

72Omit section 368 (exclusion of double relief etc).

73Omit Chapter 1 of Part 10 (loss relief: income tax)....

74(1) Amend section 397 (restriction of relief in case of...

75(1) Amend section 398 (transactions in deposits with and without...

76(1) Amend section 399 (dealings in commodity futures etc :...

77In section 414(1) (close companies) for “Tax Acts” substitute “...

78Minor and consequential amendments

79In section 459 (exemption for unregistered friendly societies) omit “income...

80In section 460(1) (exemption for registered friendly societies: life or...

81(1) Section 461 (exemption for registered friendly societies: other business)...

82(1) Amend section 461B (exemption for qualifying incorporated friendly societies:...

83Minor and consequential amendments

84(1) Amend section 467(1) (exemption for trade unions and employers'...

85Minor and consequential amendments

86Minor and consequential amendments

87Minor and consequential amendments

88(1) Amend section 477A (building societies: regulations for deduction of...

89Omit sections 480A to 482 (deduction of tax by deposit-takers)....

90(1) Amend section 486 (industrial and provident societies and co-operative...

91Minor and consequential amendments

92(1) Amend section 492 (treatment of oil extraction activities etc...

93Omit section 504A (letting of furnished holiday accommodation treated as...

94Minor and consequential amendments

95Minor and consequential amendments

96Minor and consequential amendments

97Minor and consequential amendments

98Minor and consequential amendments

99Minor and consequential amendments

100Minor and consequential amendments

101(1) Amend section 510A (tax treatment of European Economic Interest...

102Omit section 515 (exemption for signatories to Operating Agreement for...

103Omit section 516 (Government securities held by non-resident central banks)....

104Minor and consequential amendments

105Minor and consequential amendments

106Minor and consequential amendments

107Minor and consequential amendments

108(1) Amend section 527 (spreading of royalties over several years)...

109Minor and consequential amendments

110Omit sections 536 (taxation of royalties where owner abroad), 537...

111Minor and consequential amendments

112Minor and consequential amendments

113Omit section 555 (entertainers and sportsmen: payment of tax).

114Minor and consequential amendments

115In section 558 (supplementary provisions) omit subsections (1) to (4)....

116In section 571 (schemes for rationalising industry: cancellation of certificates)...

117(1) Amend section 573 (relief for companies) as follows.

118Omit section 574 (share loss relief for individuals).

119Minor and consequential amendments

120Minor and consequential amendments

121Minor and consequential amendments

122Minor and consequential amendments

123Minor and consequential amendments

124Minor and consequential amendments

125Minor and consequential amendments

126Minor and consequential amendments

127Minor and consequential amendments

128Minor and consequential amendments

129Minor and consequential amendments

130Minor and consequential amendments

131Minor and consequential amendments

132Minor and consequential amendments

133Omit section 581A (interest on foreign currency securities etc).

134Minor and consequential amendments

135Omit section 582A (designated international organisations: miscellaneous exemptions).

136Omit section 587A (new issues of securities: extra return).

137Minor and consequential amendments

138Minor and consequential amendments

139Minor and consequential amendments

140In section 615(3) (exemption from tax in respect of certain...

141Minor and consequential amendments

142In section 658(4)(b) (supplementary) omit “(notwithstanding anything in section 348)”....

143In section 659E(1) (treatment of income from property investment LLPs)...

144Omit section 660C(3) (nature of charge on settlor).

145Omit sections 685A to 687 (liability of trustees).

146(1) Amend section 687A (discretionary payments made by trustees to...

147Omit section 689A (disregard of trustees' expenses where beneficiary non-UK...

148(1) Amend section 689B (order in which trustees' expenses are...

149Omit sections 690 to 694.

150Omit section 698A.

151Minor and consequential amendments

152Minor and consequential amendments

153Minor and consequential amendments

154Minor and consequential amendments

155Minor and consequential amendments

156Minor and consequential amendments

157Minor and consequential amendments

158Minor and consequential amendments

159Minor and consequential amendments

160Minor and consequential amendments

161(1) Amend section 709 (meaning of “tax advantage” and other...

162Omit sections 710 to 727A (accrued income scheme).

163Minor and consequential amendments

164Minor and consequential amendments

165Minor and consequential amendments

166Minor and consequential amendments

167Minor and consequential amendments

168Minor and consequential amendments

169Minor and consequential amendments

170Minor and consequential amendments

171(1) Amend section 736B (deemed manufactured payments in the case...

172Minor and consequential amendments

173Minor and consequential amendments

174Minor and consequential amendments

175Minor and consequential amendments

176(1) Amend section 737E (power to modify sections 727A, 730A,...

177Omit sections 739 to 746 (transfer of assets abroad).

178In section 747(4) (imputation of chargeable profits and creditable tax...

179Minor and consequential amendments

180Minor and consequential amendments

181Minor and consequential amendments

182Omit section 775 (sale by individual of income derived from...

183Minor and consequential amendments

184Minor and consequential amendments

185Minor and consequential amendments

186Minor and consequential amendments

187Minor and consequential amendments

188Minor and consequential amendments

189Minor and consequential amendments

190Minor and consequential amendments

191Minor and consequential amendments

192In section 793 (reduction of United Kingdom taxes by amount...

193(1) Amend section 796 (limits on credit for foreign tax:...

194In section 798C (disallowed credit: use as deduction) for subsection...

195In section 801A (restriction of relief for underlying tax) for...

196In section 803(10) (underlying tax reflecting interest on loans) for...

197(1) Amend section 804 (relief against income tax in respect...

198(1) Amend section 807 (sale of securities with or without...

199In section 809(1)(a) (relief in respect of discretionary trusts) for...

200In section 811(2) (deduction for foreign tax where no credit...

201In section 812(5) (withdrawal of right to tax credit of...

202In section 816 (disclosure of information)— (a) in subsection (3)...

203Omit section 818 (arrangements for payments of interest less tax...

204Omit section 819 (old references to standard rate tax).

205In section 821(3) (under-deductions from payments made before passing of...

206Omit section 823 (adjustments of reliefs where given at different...

207Omit section 827A (territorial scope of charges under certain provisions...

208(1) Amend section 828 (orders and regulations made by the...

209Omit section 829 (application of Income Tax Acts to public...

210In section 830(1) (territorial sea) omit “income tax and”.

211In section 831(3) (interpretation of ICTA) after the definition of...

212(1) Amend section 832 (interpretation of the Tax Acts) as...

213Omit section 833 (interpretation of the Income Tax Acts).

214In section 834(1) (interpretation of the Corporation Tax Acts), at...

215Omit section 835 (“total income” in the Income Tax Acts)....

216Omit section 836 (returns of total income).

217Omit section 836B (table of provisions to which that section...

218Omit section 837 (“annual value” of land).

219(1) Amend section 837A (meaning of “research and development”) as...

220In section 837B(1) (meaning of “oil and gas exploration and...

221In section 837C(1) and (5) (meaning of “offshore installation”) for...

222In section 838(1) (subsidiaries) for “Tax Acts” substitute “ Corporation...

223(1) Amend section 839 (connected persons) as follows.

224In section 840 (meaning of “control” in certain contexts) for...

225After section 840 insert— Meaning of “tax advantage” (1) In any provision of the Corporation Tax Acts in...

226In section 840A(1) (banks)— (a) after “In any provision” insert...

227Minor and consequential amendments

228In section 842(1) (investment trusts) for “Tax Acts” substitute “...

229Omit section 842AA (venture capital trusts).

230In section 842A(1) (meaning of “local authority”) for “Tax Acts”...

231(1) Amend section 842B (meaning of “ investment LLP ”...

232(1) Amend Schedule 14 (provisions ancillary to section 266) as...

233In Part 1 of Schedule 15 (qualifying policies for the...

234Omit Part 1 of Schedule 15B (venture capital trusts: relief...

235Omit Schedule 16 (collection of income tax on company payments)....

236In paragraph 2(b) of Schedule 19B (petroleum extraction activities: exploration...

237(1) Amend Schedule 20 (charities: qualifying investments and loans) as...

238(1) Amend Schedule 23A (manufactured dividends and interest) as follows....

239In Schedule 28AA (provision not at arm's length) in paragraph...

240Omit Schedule 28B (venture capital trusts: meaning of “qualifying holding”)....

Part 2Other enactments

Chevening Estate Act 1959 (c. 49)

241In section 2(1A)(a) of the Chevening Estate Act 1959 (provisions...

Taxes Management Act 1970 (c. 9)

242The Taxes Management Act 1970 is amended as follows.

243Minor and consequential amendments

244Minor and consequential amendments

245(1) Amend section 12AB(1) (partnership return to include partnership statement)...

246In section 12B(4A)(a) (records to be kept for purposes of...

247(1) Amend section 17 (interest paid or credited by banks...

248In section 21(5A) (transactions in securities etc) for “Schedule 23A...

249In section 24(3A) (power to obtain information as to income...

250Minor and consequential amendments

251In section 36(3A) (fraudulent or negligent conduct)—

252(1) Amend section 37A (effect of assessment where allowances transferred)...

253In section 42(7) (procedure for making claims etc)—

254In section 43A(2A) (further assessments: claims etc)—

255Minor and consequential amendments

256Minor and consequential amendments

257In section 55(1) (recovery of tax not postponed)—

258For section 87 (interest on income tax on company payments)...

259Minor and consequential amendments

260(1) Amend section 98 (special returns etc) as follows.

261In section 99A (certificates of non-liability to income tax) for...

262After section 99A insert— Declarations under Chapter 2 of Part...

263In section 118(1) (interpretation)— (a) in the definition of “company”...

264In paragraph 9(2) of Schedule 1A (claims etc not included...

Finance Act 1971 (c. 68)

265Omit section 21 of, and Schedule 3 to, the Finance...

Biological Standards Act 1975 (c. 4)

266In section 2(4A)(a) of the Biological Standards Act 1975 (general...

House of Commons Disqualification Act 1975 (c. 24)

267Minor and consequential amendments

Inheritance Tax Act 1984 (c. 51)

268The Inheritance Tax Act 1984 is amended as follows.

269In section 157(6) (non-residents' bank accounts) for “section 840A of...

270In section 204(5) (limitation of liability) for “section 739 or...

271In section 272 (general interpretation) in the definition of “authorised...

Administration of Justice Act 1985 (c. 61)

272In paragraph 36(3) of Schedule 2 to the Administration of...

Building Societies Act 1986 (c. 53)

273In section 8(9) of the Building Societies Act 1986 (raising...

Finance Act 1988 (c. 39)

274The Finance Act 1988 is amended as follows.

275(1) Amend section 130 (provisions for securing payment by company...

276In Schedule 6 (commercial woodlands) omit paragraph 3(3) to (5)....

277In paragraph 6(1)(b) of Schedule 12 (building societies: change of...

Finance Act 1989 (c. 26)

278The Finance Act 1989 is amended as follows.

279Minor and consequential amendments

280In section 111 (residence of personal representatives)—

281(1) Amend section 151 (assessment of trustees and personal representatives)...

282In section 182(3) (disclosure of information) at the end of...

283(1) Amend Schedule 5 (employee share ownership trusts) as follows....

Finance Act 1990 (c. 29)

284(1) Amend section 25 of the Finance Act 1990 (c....

Finance Act 1991 (c. 31)

285The Finance Act 1991 (c. 31) is amended as follows....

286Omit section 53 (Income Tax (Building Society) Regulations 1986).

287Omit section 72 (deduction of trading losses).

Social Security Contributions and Benefits Act 1992 (c. 4)

288The Social Security Contributions and Benefits Act 1992 (c. 4)...

289In section 4A(3)(i)(i) (earnings of workers supplied by service companies...

290(1) Amend Schedule 2 (levy of Class 4 contributions with...

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

291The Social Security Contributions and Benefits (Northern Ireland) Act 1992...

292In section 4A(3)(i)(i) (earnings of workers supplied by service companies...

293(1) Amend Schedule 2 (Schedule 2 to the Social Security...

Taxation of Chargeable Gains Act 1992 (c. 12)

294The Taxation of Chargeable Gains Act 1992 is amended as...

295Minor and consequential amendments

296Minor and consequential amendments

297For section 11 (visiting forces, agents-general etc) substitute— Visiting forces...

298In section 16(1) (computation of losses) for “section 72 of...

299In section 37 (consideration chargeable to tax on income) at...

300In section 39 (exclusion of expenditure by reference to tax...

301Minor and consequential amendments

302In section 97(3) (settlements etc: supplementary provisions) for “section 740(2)(b)...

303In section 98(2) (power to obtain information for purposes of...

304In section 101B(1)(a) (transfer of a company's assets to VCT),...

305In section 101C(7) (transfer within group to VCT), for “section...

306(1) Amend section 105A (shares acquired on the same day:...

307In section 108(1)(a) (identification of relevant securities) for “section 710...

308(1) Amend section 119 (transfer of securities subject to the...

309After section 125 insert— Share loss relief Effect of share...

310In section 148C(1) (deemed disposals at a loss under section...

311(1) Amend section 150A (enterprise investment schemes) as follows.

312(1) Amend section 150B (enterprise investment scheme: reduction of relief)...

313Minor and consequential amendments

314In section 151A(7) (venture capital trusts: reliefs) for “the meaning...

315(1) Amend section 151B (VCTs: supplementary) as follows.

316After section 151B insert— CITR: identification of securities or shares...

317After section 151BA insert— CITR: rights issues etc (1) If— (a) an individual or company (“the investor”) holds...

318After section 151BB insert— CITR: company reconstructions etc (1) If— (a) an individual or company (“the investor”) holds...

319In section 151C(5) (strips: manipulation of price: associated payment giving...

320In section 151D(5) (corporate strips: manipulation of price: associated payment...

321In section 161 (stock in trade: appropriations to and from...

322In section 169D(1) (gifts to settlor-interested settlements: exceptions) for “691(2)...

323In section 226B(1) (private residence relief: special cases) for “691(2)...

324In section 231(1) and (3) (shares: special provision) after “Taxes...

325In section 241(3)(a) (furnished holiday lettings) for the words from...

326(1) Amend section 256 (charities) as follows.

327After section 256 insert— Attributing gains to the non-exempt amount...

328In section 257 (gifts to charities etc) after subsection (2)...

329After section 261A insert— Deduction of trading losses or post-cessation...

330After section 261E insert— Repurchase price under repos Deemed manufactured...

331After section 261F insert— Price differences under repos: effect on...

332After section 261G insert— Power to modify section 261G in...

333(1) Amend section 263ZA (former employees: employment-related liabilities) as follows....

334Minor and consequential amendments

335(1) Amend section 263D (gains accruing to persons paying manufactured...

336After section 263E insert— Power to modify repo provisions: non-standard...

337After section 263F insert— Power to modify repo provisions: redemption...

338After section 263G insert— Sections 263F and 263G: supplementary provisions...

339After section 263H insert— Powers about manufactured overseas dividends (1) The Treasury may by regulations make provision as mentioned...

340(1) Amend section 271 (miscellaneous exemptions) as follows.

341After section 285 insert— European Economic Interest Groupings (1) The following rules about European Economic Interest Groupings apply...

342(1) Amend section 288 (interpretation) as follows.

343Minor and consequential amendments

344In paragraph 14 of Schedule 4A (deemed disposal of underlying...

345(1) Amend Schedule 5B (enterprise investment scheme: re-investment) as follows....

346In paragraph 1(1)(a) of Schedule 5BA (enterprise investment scheme: application...

347In paragraph 3(1)(f) of Schedule 5C (VCTs: deferred charge on...

348(1) Amend Schedule 7C (reliefs for transfers to approved share...

349In Schedule 8 (leases), in paragraph 5(6) for “any amount...

Finance (No. 2) Act 1992 (c. 48)

350In section 28(1)(a) of the Finance (No. 2) Act 1992...

Tribunals and Inquiries Act 1992 (c. 53)

351Minor and consequential amendments

Judicial Pensions and Retirement Act 1993 (c. 8)

352In section 3(6) of the Judicial Pensions and Retirement Act...

Charities Act 1993 (c. 10)

353In section 25A(1) and (2) of the Charities Act 1993...

Finance Act 1993 (c. 34)

354The Finance Act 1993 is amended as follows.

355Omit section 80 (transitional relief for charities etc).

356Omit section 118 (Scottish trusts).

357(1) Amend section 176 (ancillary trust funds) as follows.

358(1) Amend section 180 (underwriting profits to be earned income)...

359In section 182(1)(ca)(ii) (Lloyd's underwriters: regulations) for the words from...

360In section 212 (interpretation) at the end insert “ ,...

361(1) Amend Schedule 20A (Lloyd's underwriters: conversion to limited liability...

Agriculture Act 1993 (c. 37)

362In paragraph 22(2) of Schedule 2 to the Agriculture Act...

Finance Act 1994 (c. 9)

363(1) Amend paragraph 11 of Schedule 20 to the Finance...

Finance Act 1995 (c. 4)

364The Finance Act 1995 is amended as follows.

365Omit section 73 (venture capital trusts: regulations).

366Omit section 90 (relief for post-cessation expenditure).

367(1) Amend section 127 (persons not treated as UK representatives)...

368Omit section 128 (limit on income chargeable on non-residents: income...

369(1) Amend section 154 (short rotation coppice) as follows.

370(1) Amend Schedule 22 (prevention of exploitation of Schedule 2...

Finance Act 1996 (c. 8)

371Minor and consequential amendments

372Minor and consequential amendments

373Minor and consequential amendments

374Minor and consequential amendments

375Minor and consequential amendments

376Minor and consequential amendments

Finance (No.2) Act 1997 (c. 58)

377The Finance (No.2) Act 1997 is amended as follows.

378Omit section 29 (unauthorised unit trusts).

379In section 35(3)(a) (transitional relief for charities etc) for “charity”...

Finance Act 1998 (c. 36)

380The Finance Act 1998 is amended as follows.

381In section 56(4) (transitional provision in connection with section 55...

382In section 134(5) (transfer of company's assets to VCT) for...

383In section 135(5) (transfer within group to VCT) for “section...

384In section 161(2)(a) (non-FOTRA securities) for the words from “sections...

385(1) Amend Schedule 18 (company tax returns, assessments and related...

Greater London Authority Act 1999 (c. 29)

386The Greater London Authority Act 1999 is amended as follows....

387In section 157(4) (restriction on exercise of certain powers except...

388In section 419(2) (taxation: certain bodies treated as a local...

Finance Act 2000 (c. 17)

389The Finance Act 2000 is amended as follows.

390In section 38(4) (payroll deduction scheme) in the definition of...

391In section 44 (which makes provision about expenses of trustees)...

392(1) Amend section 46 (exemption for small trades etc )...

393In section 155 (interpretation) at the end insert “ and...

394(1) Amend Schedule 15 (the corporate venturing scheme) as follows....

395In paragraph 41 of Schedule 22 (tonnage tax: the requirement...

Capital Allowances Act 2001 (c. 2)

396The Capital Allowances Act 2001 is amended as follows.

397(1) Amend section 4 (capital expenditure) as follows.

398In section 70V(4) (tax avoidance involving international leasing) for “Chapter...

399Omit section 70YI(4) (application of section 839 of ICTA).

400In section 138(2)(b) (limit on amount deferred) for “section 385...

401In section 156(1)(a) and (c) (connected persons) for “section 839...

402In section 220(8)(a) (allocation of expenditure to a chargeable period)...

403In section 232(1)(a) (meaning of connected person) for “section 839...

404In section 258 (special leasing: income tax) after subsection (3)...

405In section 266(5)(a) (election where predecessor and successor are connected...

406Minor and consequential amendments

407In section 437 (research and development allowances) for subsection (2)...

408In section 479 (persons having qualifying non-trade expenditure: income tax)...

409At the beginning of Chapter 6 of Part 12 insert—...

410In section 574(1) at the end insert “(but, for the...

411For section 575 (connected persons) substitute— Meaning of “connected” persons...

412In section 577(1) (other definitions)— (a) omit the definition of...

413(1) Amend Schedule 1 (abbreviations and defined expressions) as follows....

Finance Act 2002 (c. 23)

414The Finance Act 2002 is amended as follows.

415Omit section 98.

416In section 142 (interpretation) at the end insert “, and...

417In paragraph 19 of Schedule 12 (tax relief for expenditure...

418In paragraph 27 of Schedule 13 (tax relief for expenditure...

419(1) Amend Schedule 16 (community investment tax relief) as follows....

420(1) Amend Schedule 18 (relief for community amateur sports clubs)...

421In Schedule 25 (loan relationships), omit paragraph 57.

422Minor and consequential amendments

423Omit Schedule 33 (venture capital trusts).

Proceeds of Crime Act 2002 (c. 29)

424In paragraph 4 of Part 2 of Schedule 10 (tax)...

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

425The Income Tax (Earnings and Pensions) Act 2003 is amended...

426In section 1 (overview of contents of Act) omit subsection...

427In section 11(3) (calculation of “net taxable earnings”) for “section...

428In section 24(6)(a) (limit on chargeable overseas earnings where duties...

429In section 48(2) (scope of Chapter) for “subject to deduction...

430In section 69(1) (extended meaning of “control”) for “section 840...

431In section 178 (exception for loans where interest qualifies for...

432In section 180(5) (threshold for benefit of loan to be...

433In section 230(5)(a) (the approved amount for mileage allowance payments)...

434In section 329(6) (deductions from earnings not to exceed earnings)...

435In section 347(2) (payments made after leaving an employment) for...

436In section 357(2) after “section 505(1)(e) of ICTA” insert “...

437After section 404 insert— Amounts charged to be treated as...

438In section 476 (charge on occurrence of chargeable event) after...

439(1) Amend section 515 (tax advantages and charges relating to...

440(1) Amend section 555 (deduction for liabilities related to former...

441In section 609(1) after “section 273 of ICTA” insert “...

442In section 718 (connected persons) for “Section 839 of ICTA”...

443In section 719 (control in relation to a body corporate)—...

444(1) Amend section 721 (other definitions) as follows.

445In Part 1 of Schedule 1 (abbreviations) in the appropriate...

446(1) Amend Part 2 of Schedule 1 (defined expressions) as...

447(1) Amend Schedule 2 (approved share incentive plans) as follows....

448In paragraph 49 of Schedule 3 (approved SAYE Option Schemes)—...

449In paragraph 37 of Schedule 4 (approved CSOP Schemes)—

450(1) Amend Schedule 5 (enterprise management incentives) as follows.

Finance Act 2003 (c. 14)

451The Finance Act 2003 is amended as follows.

452Omit section 151 (non-resident companies: extent of charge to income...

453In section 152 (non-resident companies: transactions carried out through broker,...

454In section 153(2)(a) (general replacement of references to branch or...

455In paragraph 1(2) of Schedule 26 (non-resident companies: transactions through...

Finance Act 2004 (c. 12)

456The Finance Act 2004 is amended as follows.

457In section 50 (generally accepted accounting practice) for “the Tax...

458In section 51 (use of different accounting practices within a...

459In section 59 (construction industry scheme: contractors) after subsection (7)...

460In section 65 (change in control of company registered for...

461After section 73 (regulations under this Chapter: supplementary) insert— Designated...

462(1) Amend section 83 (giving through the self-assessment return) as...

463Omit sections 101 (payment of royalties without deduction at source)...

464Omit sections 119 to 123 (individuals benefited by film relief)....

465Omit sections 126 to 130 (individuals in partnership: exit charge)....

466In section 155(6)(a) and (b) (persons by whom scheme may...

467In section 161 (meaning of “payment” etc) for subsection (8)...

468(1) Amend section 162 (meaning of “loan”) as follows.

469In section 172A (surrender) for subsection (11) substitute—

470In section 172B (increase in rights of connected person on...

471In section 172C (allocation of unallocated employer contributions) for subsection...

472In section 172D (limit on increase in benefits) for subsection...

473(1) Amend section 189 (relevant UK individual) as follows.

474In section 192 (relief at source) omit subsection (5).

475In section 193(6) (relief under net pay arrangements)—

476In section 194(1) (relief on making of claim)—

477In section 266A (member's liability) for subsection (7) substitute—

478In section 273 (members liable as scheme administrator) for subsection...

479In section 278 (market value) for subsection (4) substitute—

480(1) Amend section 279 (other definitions) as follows.

481(1) Amend section 280 (abbreviations and general index) as follows....

482(1) Amend Schedule 15 (charge to income tax on benefits...

483In paragraph 4 of Schedule 27 (meaning of “offshore installation”)...

484In paragraph 4 of Schedule 29A (investment-regulated pension schemes) for...

485In paragraph 11D of Schedule 36 (transitional provisions) for sub-paragraph...

Pensions Act 2004 (c. 35)

486The Pensions Act 2004 is amended as follows.

487In Schedule 3 (restricted information held by the Regulator: certain...

488In Schedule 8 (restricted information held by the Board: certain...

Constitutional Reform Act 2005 (c. 4)

489The Constitutional Reform Act 2005 is amended as follows.

490In paragraph 4 of Schedule 7 (protected functions of the...

491In the table in Part 3 of Schedule 14 (appointments...

Income Tax (Trading and Other Income) Act 2005 (c. 5)

492The Income Tax (Trading and Other Income) Act 2005 is...

493In section 1 (overview of Act) omit subsection (2).

494In section 12(3) (profits of mines etc) for “Chapter 1...

495(1) Amend section 13 (visiting performers) as follows.

496In section 17(3) (effect of becoming or ceasing to be...

497Omit section 51 (patent royalties).

498(1) Amend section 52 (exclusion of double relief for interest)...

499In section 87(5) (expenses of research and development) for “section...

500In section 108(4) (gifts of trading stock etc to charities)...

501In section 179(a) (connected persons) for “section 839 of ICTA”...

502(1) Amend section 232 (treatment of trading adjustment income) as...

503In section 248(3) (debts paid after cessation)—

504(1) Amend section 250 (receipts relating to post-cessation expenditure) as...

505In section 254(3)(b) (allowable deductions) for “section 90(4) of FA...

506(1) Amend section 256 (treatment of post-cessation receipts) as follows....

507In section 272(2) (profits of a property business: application of...

508In section 322(2) (commercial letting of furnished holiday accommodation)—

509In section 327(2)(b) (capital allowances and loss relief) for “Chapter...

510(1) Amend section 328 (earned income and relevant UK earnings...

511In section 333(3) (treatment of property business adjustment income) for...

512In section 354(2) (other rules about what counts as a...

513In section 369(4) (charge to tax on interest) for the...

514In section 372(2) (building society dividends) for the words from...

515(1) Amend section 397 (tax credits for qualifying distributions: UK...

516(1) Amend section 399 (qualifying distributions received by persons not...

517(1) Amend section 400 (non-qualifying distributions) as follows.

518In section 401 (relief: qualifying distribution after linked non-qualifying distribution)...

519In section 410(3)(b) (stock dividend income arising to trustees) for...

520(1) Amend section 414 (stock dividends from UK resident companies:...

521In section 418(5) (loans to participator in close company: relief...

522In section 421(4) (loans to participator in close company: income...

523(1) Amend section 426 (annuity payments received after deduction of...

524In section 446 (strips of government securities: relief for losses)...

525In section 454 (listed securities held since 26th March 2003:...

526(1) Amend section 457 (disposal of deeply discounted securities by...

527In section 459(2) (profits from deeply discounted securities: transfer of...

528In section 460(2) (profits from deeply discounted securities: minor definitions)...

529After section 465 insert— Amounts for which individuals liable to...

530Minor and consequential amendments

531(1) Amend section 467 (liability of trustees for tax on...

532In section 468 (gains from contracts for life insurance etc:...

533In section 482 (excepted group life policies: conditions about persons...

534In section 520(4) (the property categories) after the definition of...

535(1) Amend section 530 (income tax treated as paid) as...

536(1) Amend section 535 (top slicing relief) as follows.

537Minor and consequential amendments

538Minor and consequential amendments

539For section 539 (relief for deficiencies) substitute— Relief for deficiencies...

540In section 546(4) (table of provisions subject to special rules...

541(1) Amend section 547 (income tax chargeable on income treated...

542For section 550 substitute— Income tax treated as paid In accordance with section 848 of ITA 2007, a sum...

543In section 567(2) (disposals of futures and options involving guaranteed...

544In section 569(2) (disposal of futures and options involving guaranteed...

545Minor and consequential amendments

546(1) Amend section 595 (deduction of tax from payments to...

547In section 601 (how relief for patent expenses is given)...

548(1) Amend section 602 (payments received after deduction of tax)...

549(1) Amend section 618 (payments received after deduction of tax)...

550In section 619(2) (charge to tax on settlor)—

551After section 619 insert— Income treated as highest part of...

552In section 620(5) (which contains various definitions) in the definition...

553In section 624 (income where settlor retains an interest in...

554In section 627(2) (income where settlor retains an interest: exceptions),...

555(1) Amend section 628 (exception for gifts to charities) as...

556In section 631(7) (retained and accumulated income) for “the total...

557In section 635(3)(d) (settlements: amounts treated as income of settlor:...

558(1) Amend section 636 (calculation of undistributed income) as follows....

559In section 640(1) and (3)(a) (settlements: amounts treated as income...

560After section 646 insert— Trustees' expenses to be rateably apportioned...

561In section 669(3)(a) (reduction in residuary income: inheritance tax on...

562In section 677 (relief where UK income tax borne by...

563In section 678 (relief where UK income tax borne by...

564Minor and consequential amendments

565Minor and consequential amendments

566After section 680 insert— Income treated as savings income or...

567In section 682 (assessments, adjustments and claims after the administration...

568In section 684(3) (Chapter 7 of Part 5 subject to...

569(1) Amend section 685A (discretionary payments under settlor-interested settlements) as...

570(1) Amend section 686 (payments received after deduction of tax)...

571In section 704(4)(a) (types of arrangements and providers) for “section...

572In section 714(6) (exemption of profits from FOTRA securities) for...

573In section 724 (regulations) omit subsection (3).

574In section 755(3) (exemption of interest on foreign currency securities...

575In section 756A(5) (interest on certain deposits of victims of...

576In section 757 (interest and royalty payments: introduction) at the...

577In section 767(2) (power to amend references to the Directive...

578In section 841 (unremittable income: introduction) for subsection (5) substitute—...

579In section 852(7) (carrying on by partner of notional trade)...

580In section 863(2) (limited liability partnerships)— (a) in paragraph (a)...

581In section 871 (apportionment etc of miscellaneous profits to tax...

582In section 872(3)(a) (losses calculated on same basis as miscellaneous...

583Omit section 876 (meaning of “farming” and related expressions).

584Omit section 877 (meaning of “grossing up”).

585(1) Amend section 878 (other definitions) as follows.

586In section 879 (interpretation: Scotland)— (a) in subsection (1) omit...

587In section 885(3)(c) (general index in Schedule 4) for “ICTA...

588In Schedule 2 (transitionals and savings etc) omit paragraph 50(3)....

589(1) Amend paragraph 82 of Schedule 2 (transitionals and savings...

590In paragraph 109(4) of Schedule 2 (transitional provision: contracts in...

591In Part 1 of Schedule 4 (abbreviations) in the appropriate...

592(1) Amend Part 2 of Schedule 4 (index of defined...

Finance Act 2005 (c. 7)

593The Finance Act 2005 is amended as follows.

594In section 26 (amount of relief for trustees of property...

595(1) Amend section 27 (tax liability of trustees of property...

596In section 41(1) (interpretation of Chapter 4 of Part 2)...

597(1) Amend section 47A (alternative finance arrangements: diminishing share ownership)...

598In section 51(2) (treatment of alternative finance arrangements)—

599(1) Amend section 52 (alternative finance arrangements: provision not at...

600Omit sections 74 to 78 (partners: recovery of excess relief)....

601In section 105 (interpretation) after the definition of “IHTA 1984”...

602(1) Amend Schedule 2 (alternative finance arrangements: further provisions) as...

Finance (No. 2) Act 2005 (c. 22)

603The Finance (No. 2) Act 2005 is amended as follows....

604(1) Amend section 7 (charge to income tax on social...

605In section 18(3)(b)(i) (authorised investment funds etc: section 17(3): specific...

606In section 71 (interpretation) after the definition of “ICTA” insert—...

Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))

607The Pensions (Northern Ireland) Order 2005 is amended as follows....

608In Schedule 3 (restricted information held by the Regulator: certain...

609In Schedule 7 (restricted information held by the Board: certain...

Finance Act 2006 (c. 25)

610The Finance Act 2006 is amended as follows.

611In section 34 (meaning of certain expressions for the purposes...

612In section 65(3) (London Organising Committee) for “Section 349(1) of...

613In section 67 (International Olympic Committee)— (a) in subsection (1)(c),...

614In section 68(1)(d) (competitors and staff) for “section 349(1) of...

615Omit section 75 (tax avoidance: interest relief and film partnerships)....

616In section 103(1)(b) (Real Estate Investment Trusts) for “, 121...

617Minor and consequential amendments

618In section 117(4) (cancellation of tax advantage) for “section 709”...

619In section 121(2)(c) (distributions: liability to tax) for “chargeable to...

620Omit section 122 (distributions: deduction of tax).

621(1) Amend section 139 (manufactured dividends) as follows.

622In section 179 (interpretation) after the definition of “IHTA 1984”...

623In Schedule 5 (film tax relief: further provisions) in paragraph...

624In paragraph 27(1) of Schedule 8 (long funding leases of...

625In Schedule 13 (settlements) omit paragraph 37.

626(1) Amend Schedule 17 (Group Real Estate Investment Trusts: modifications)...

Part 3Amendment having effect in relation to shares issued after 5 April 2007

Income and Corporation Taxes Act 1988 (c. 1)

627Omit Chapter 3 of Part 7 of the Income and...

SCHEDULE 2Transitionals and savings

Part 1General provisions

Continuity of the law: general

1The repeal of provisions and their enactment in a rewritten...

2Paragraph does not apply to any change made by this...

3Any subordinate legislation or other thing which—

4(1) Any reference (express or implied) in this Act, another...

5(1) Any reference (express or implied) in any enactment, instrument...

6(1) Paragraphs 1 to 5 have effect instead of section...

General saving for old transitional provisions and savings

7(1) The repeal by this Act of a transitional or...

Partnerships involving companies

8(1) References in this Act to any person are to...

Interpretation

9(1) In this Part— “enactment” includes subordinate legislation (within the...

Part 2Changes in the law

10(1) This paragraph applies if, in the case of any...

Part 3Rates at which income tax is charged

11In relation to a tax year before 2007-08—

12In relation to the tax year 2007-08 or any subsequent...

13In this Part “enactment” includes subordinate legislation (within the meaning...

Part 4Personal reliefs

14Transitionals and savings

15Transitionals and savings

16Transitionals and savings

17Transitionals and savings

Part 5Losses (except losses on disposal of shares)

General: carry forward loss reliefs

18(1) The repeal by this Act of the superseded carry...

Trade loss relief against general income

19(1) This paragraph applies for the purposes of section 64...

20(1) This paragraph applies if— (a) a person makes a...

Early trade losses relief

21(1) This paragraph applies for the purposes of section 72...

22(1) This paragraph applies if— (a) a person makes a...

Sideways relief: trade leasing allowances given to individuals

23(1) This paragraph applies if— (a) a person makes a...

Sideways relief: dealings in commodity futures

24Section 81 does not apply if the arrangements mentioned in...

Terminal trade loss relief

25(1) This paragraph applies for the purposes of section 89...

Post-cessation trade loss relief and post-cessation property relief

26The events covered by section 98(5) (including as applied by...

Reliefs for limited partners not to exceed contribution to the firm

27(1) The relief covered by section 104(5) includes—

Reliefs for members of LLPs not to exceed contribution to the LLP

28(1) The relief covered by section 107(6) includes—

Members of LLPs: carry-forward of losses

29(1) The amounts of loss covered by section 109(1)(b) include...

Reliefs for non-active partners not to exceed contribution to the firm

30(1) The relief covered by section 110(5) includes—

Non-active partners: carry-forward of losses

31(1) The amounts of loss covered by section 113(1)(b) include...

Restriction on reliefs for non-active partners: pre-10 February 2004 events

32In Chapter 3 of Part 4 any reference to an...

33(1) Sub-paragraphs (2) to (9) set out relief which is...

Regulations under section 114

34(1) The provision which may be made in regulations under...

Application of existing regulations under sections 114 and 802

35(1) After the commencement of sections 114 and 802, the...

Losses in an employment or office

36(1) This paragraph applies for the purposes of section 128...

Loss relief against miscellaneous income: Case VI losses

37(1) This paragraph applies if a person makes a loss...

Part 6Losses on disposal of shares

Qualifying trading companies

38(1) In relation to shares issued before 17 March 2004,...

Disposals of new shares

39(1) In relation to new shares issued before 6 April...

The trading requirement

40(1) In relation to shares issued before 6 April 2007,...

Ceasing to meet trading requirement because of administration or receivership

41(1) In relation to shares issued before 17 March 2004,...

The control and independence requirement

42(1) In relation to shares issued before 6 April 2007,...

The qualifying subsidiaries requirement

43(1) Section 140 does not apply in relation to shares...

The property managing subsidiaries requirement

44(1) Section 141 does not apply in relation to shares...

The gross assets requirement

45(1) In relation to shares issued before 6 April 2006,...

The unquoted status requirement

46(1) In relation to shares issued before 7 March 2001,...

Power to amend requirements by Treasury order

47(1) Section 144 does not apply in relation to shares...

Relief after an exchange of shares for shares in another company

48(1) In relation to new shares issued before 6 April...

Substitution of new shares for old shares

49(1) Section 146 does not apply in relation to shares...

Interpretation of Chapter

50(1) In relation to shares issued before 6 April 1998,...

Meaning of “qualifying subsidiary”

51(1) In relation to shares issued before 17 March 2004,...

Meaning of “excluded activities”

52(1) In relation to shares issued before 7 March 2001,...

Excluded activities: wholesale and retail distribution

53(1) In relation to shares issued before 6 April 2007,...

Excluded activities: leasing of ships

54(1) In relation to shares issued before 6 April 2007,...

Excluded activities: receipt of royalties and licence fees

55(1) In relation to shares issued before 6 April 2000,...

Excluded activities: provision of services or facilities for another business

56(1) In relation to shares issued before 6 April 2007,...

Meaning of a company being “in administration”

57(1) Sub-paragraph (2) applies in relation to—

Application in relation to corresponding bonus shares

57A(1) For the purposes of this Part of this Schedule,...

Part 7Enterprise investment scheme

The gross assets requirement

58(1) In relation to shares to which sub-paragraph (2) or...

Part 8Venture capital trusts

Eligibility for relief

59Section 261(4) does not apply in relation to shares acquired...

Form and amount of relief

60(1) In relation to shares issued before 6 April 2006,...

No entitlement to relief if there is a linked loan

61In relation to shares issued before 6 April 2006, section...

Loss of relief if shares disposed of within 5 years

62(1) In relation to shares issued before 6 April 2006—...

Interpretation of Chapter 2

63(1) In relation to shares issued before 6 April 2007,...

The 15% holding limit condition

64In relation to shares or securities issued before 17 April...

Conditions relating to value of investments

65(1) Sub-paragraph (2) applies if any question arises which—

Conditions relating to qualifying holdings and eligible shares: supplementary

66Section 280(3) does not apply in relation to shares issued...

Interpretation of Chapter 3

67Section 285 applies with the omission of subsections (4) to...

The maximum qualifying investment requirement

68For the purpose of determining whether shares or securities are...

The no guaranteed loan requirement

69For the purpose of determining whether shares or securities are...

The proportion of eligible shares requirement

70(1) If at any time the requirement of section 289—...

The trading requirement

71For the purpose of determining whether shares or securities are...

The carrying on of a qualifying activity requirement

72(1) For the purpose of determining whether shares or securities...

Ceasing to meet the requirement because of administration or receivership

73For the purpose of determining whether shares or securities are...

The use of the money raised requirement

74For the purpose of determining whether shares or securities are...

The relevant company to carry on the relevant qualifying activity requirement

75(1) For the purpose of determining whether shares or securities...

The gross assets requirement

76(1) For the purpose of determining whether shares or securities...

The property managing subsidiaries requirement

77For the purpose of determining whether shares or securities are...

Meaning of “qualifying trade”

78For the purpose of determining whether shares or securities are...

Meaning of “qualifying 90% subsidiary”

79For the purpose of determining whether shares or securities are...

Meaning of “qualifying subsidiary”

80For the purpose of determining whether shares or securities are...

Meaning of “excluded activities”

81For the purpose of determining whether shares or securities are...

Excluded activities: wholesale and retail distribution

82For the purpose of determining whether shares or securities are...

Excluded activities: leasing of ships

83(1) For the purpose of determining whether shares or securities...

Excluded activities: receipt of royalties and licence fees

84For the purpose of determining whether shares or securities are...

Excluded activities: provision of services or facilities for another business

85(1) For the purpose of determining whether shares or securities...

Winding up of the relevant company

86For the purpose of determining whether shares or securities are...

Acquisitions for restructuring purposes etc

87Sections 326 to 329 do not apply in relation to...

Power to facilitate company reorganisations

88Section 330 does not apply in relation to exchanges of...

Meaning of a company being “in administration”

89(1) Sub-paragraph (2) applies in relation to—

Meaning of “company”, “shares” and “research and development” in Part 6

90(1) This paragraph applies in relation to the meaning of...

Part 9Other reliefs

Interest: loans for interests in close companies

91Section 392(3)(a) does not apply if the shares were acquired...

92Section 392(3)(b) does not apply if the shares were acquired...

93(1) In relation to a loan made before 14 November...

94Section 395(2) does not apply in relation to a loan...

Interest: loans for interests in employee-controlled companies

95(1) In relation to a loan used before 6 April...

Interest relief: film partnerships

96Section 399(4) (restriction on relief for interest on loans for...

Interest: loans for investing in co-operatives

97Section 401 applies in relation to a loan used in...

Gift aid: gifts of money for relief in poor countries

98Despite the amendments made by this Act to section 25...

Gift aid: restrictions on associated benefits

99(1) This paragraph applies if— (a) a gift is made...

Gift aid: election to carry back relief

100(1) This paragraph applies if in the tax year 2007-08...

Qualifying maintenance payments: maintenance assessments

101(1) This paragraph applies for the purposes for which, on...

Part 10Special rules about settlements and trustees

Trustees' expenses to be set against trustees' trust rate income

102(1) This paragraph applies if the trustees of a settlement...

Share incentive plans: definition of “applicable period”

103(1) This paragraph applies for the purposes of section 489...

Discretionary payments: trustees' tax pool

104(1) Section 497 applies with the following modifications in relation...

Part 11Special rules about charitable trusts etc

Transactions with substantial donors

105Section 543(1)(g) and (h) and sections 549 to 557 (non-charitable...

106For the purposes of section 549 a person may meet...

Non-charitable expenditure

107(1) This paragraph applies if, as a result of sections...

Part 12Manufactured payments and repos

Tax credits: stock lending arrangements and repos

108Sections 592 and 593 do not apply if the qualifying...

109(1) Section 592(3) does not apply if the qualifying distribution...

110(1) Section 593(3) does not apply if the qualifying distribution...

Deemed manufactured payments: stock lending arrangements

111Section 596 does not apply if the stock lending arrangement...

112(1) Section 597 does not apply if the stock lending...

113Sections 596(5) and 599 do not apply in relation to...

Deemed manufactured payments: repos

114(1) Section 602 does not apply if—

115(1) This paragraph applies if an agreement to sell securities...

116(1) This paragraph applies if an agreement to sell securities...

117(1) This paragraph applies if— (a) an agreement to sell...

118(1) This paragraph applies if an agreement to sell securities...

Price differences under repos

119Section 607 does not apply if the agreement to sell...

120(1) This paragraph applies if an agreement to sell securities...

121(1) This paragraph applies if section 607 applies and the...

122(1) This paragraph applies if the agreement to sell the...

123(1) This paragraph applies if an agreement to sell securities...

Powers to modify repo provisions

124(1) This paragraph applies if an agreement to sell securities...

Part 13Accrued income profits

Sale and repurchase arrangements

125(1) Section 655 applies only if— (a) in the case...

126(1) This paragraph applies if the agreement to sell the...

Successive transfers with unrealised interest in default

127Section 661 does not apply if the transferor's acquisition was...

Unrealised interest received by transferee after transfer within Chapter 2 of Part 12

128If the transfer of securities within section 681(1)(a) occurred before...

Part 14Tax avoidance

Transactions in securities: general

129(1) Despite anything in this Act, Chapter 1 of Part...

Transactions in securities: meaning of relevant companies for the purposes of sections 689 and 690

130(1) In its application to a transaction in securities that...

Transactions in securities: statement of case by tribunal for opinion of High Court or Court of Session

131If a tribunal has made a determination under section 705(3)...

Transactions in securities: appeals to House of Lords

132(1) This paragraph applies until paragraph 47 of Schedule 9...

Transfers of assets abroad: non-transferors receiving benefit- exclusion of income arising before 10 March 1981

133(1) Section 732 (non-transferors receiving a benefit as a result...

Transfers of assets abroad: whether trustees are “persons abroad”

134(1) This paragraph deals with whether section 475 (residence of...

135(1) Sub-paragraph (2) deals with whether section 474 (trustees of...

Transfers of assets abroad: whether personal representatives are “persons abroad”

136(1) This paragraph deals with whether section 834 (residence of...

137(1) Sub-paragraph (2) deals with whether section 834 (residence of...

Transfers of assets abroad: company residence for transfers between 20 March 1990 and 29 November 1993

138(1) In relation to transfers and associated operations on or...

Transfers of assets abroad: information powers concerning transfers between 20 March 1990 and 29 November 1993 involving companies

139(1) So far as section 749(6) (restrictions on information to...

Transfers of assets abroad: income arising before 26 November 1996

140Sections 721(5)(b) and (c) and 728(3)(b) and (c) do not...

Transfers of assets abroad: meaning of “associated operation” and consideration of associated operations alone

141(1) In relation to any time before 5 December 2005,...

Individuals in partnership: recovery of excess relief

142In section 792(1)— (a) the reference to the claiming of...

143(1) The losses covered by section 794(1) and (2) in...

Individuals claiming relief for film-related trading losses

144(1) The claims covered by section 797(1)(a) include claims within...

145(1) The losses covered by section 800(3)(a) include losses in...

146In section 801(3) the reference to the making of a...

147(1) In section 802(1) the reference to the making of...

148(1) After the commencement of section 802, the Partnerships (Restrictions...

149(1) In section 803 references to chargeable events include events...

Individuals in partnership: exit charge

150(1) The losses covered by section 805(1)(b) include losses in...

151(1) In section 806 at Step 4 non-taxable consideration received...

152(1) This paragraph applies for the purposes of sections 805...

153The losses covered by section 807(4) include losses in relation...

Part 15Deduction of income tax at source

Deduction by deposit-takers: discretionary or accumulation settlements

154(1) A deposit with a deposit-taker which meets the settlement...

155(1) A notification under paragraph 154(3) given by a trustee...

Deduction by deposit-takers and building societies: declarations of non-UK residence

156(1) Section 858(2)(c) (which requires a declaration of non-UK residence...

Deduction by deposit-takers: qualifying certificates of deposit

157(1) This paragraph applies to a certificate of deposit which...

Deduction by deposit-takers: qualifying time deposits

158(1) This paragraph applies to a deposit with a deposit-taker...

Deduction by deposit-takers and building societies: saving for regulations

159(1) This paragraph applies to regulations which—

160(1) This paragraph applies to regulations about the making of...

Deduction by deposit-takers, building societies etc: collection of tax

161Chapter 15 of Part 15 has effect for return periods...

162(1) This paragraph applies to a payment—

Deduction from certain payments of yearly interest: interest paid by banks

163(1) In the case of payments of interest to which...

Deduction from certain payments of yearly interest: interest paid on advances from banks

164(1) In the case of payments of interest to which...

Deduction from certain UK public revenue dividends

165(1) This paragraph applies if— (a) any person holds any...

166(1) This paragraph applies in relation to any gilt-edged securities...

Unauthorised unit trusts: calculation of trustees' income pool

167(1) This paragraph applies for the purposes of section 943....

168(1) This paragraph applies for the purposes of section 943...

Non-resident landlords

169(1) Sub-paragraph (2) applies to any references in the Taxation...

Interpretation

170Expressions used in this Part of this Schedule and in...

Part 16Other provisions

Old references to surtax and standard rate tax

171The repeal by this Act of section 819 of ICTA...

Section 820 of ICTA

172Section 820 of ICTA (application of Income Tax Acts from...

SCHEDULE 3Repeals and revocations

Part 1Repeals and revocations: general

Part 2Repeals having effect in relation to shares issued after 5 April 2007

SCHEDULE 4Index of defined expressions

Royal arms

Income Tax Act 2007

2007 CHAPTER 3

An Act to restate, with minor changes, certain enactments relating to income tax; and for connected purposes.

[20th March 2007]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—