Modifications etc. (not altering text)
C1Pt. 13 Ch. 2 applied by 1988 c. 1, s. 762ZA (as inserted (21.7.2008 with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 94)
C2Pt. 13 Ch. 2 applied (with effect in accordance with art. 1(2)(3) Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 21
(1)No amount of income may be taken into account more than once in charging income tax under this Chapter.
(2)If there is a choice about the persons in relation to whom any amount of income may be taken into account in charging income tax under this Chapter, it is to be taken into account—
(a)in relation to such one or more of them as appears to an officer of Revenue and Customs to be just and reasonable, and
(b)if more than one, in such respective proportions as appears to the officer to be just and reasonable.
(3)For the meaning of references in subsections (1) and (2) to an amount of income taken into account in charging tax, see section 744.
(4)If income treated as arising to an individual is charged to income tax under section 720 or 727 and the individual subsequently receives that income, it is treated as not being the individual's income again for income tax purposes.
(1)References in section 743(1) and (2) (no duplication of charges) to an amount of income taken into account in charging income tax are to be read as follows.
(2)In the case of tax charged on income under section 720 (charge where income enjoyed as a result of relevant transactions)—
(a)if section 724(1) (benefit provided out of income of person abroad) applies, they are references to an amount of the income out of which the benefit is provided equal to the amount or value of the benefit charged, and
(b)otherwise they are references to the amount of income charged.
(3)In the case of tax charged on income under section 727 (charge where capital sums received as a result of relevant transactions), they are references to the amount of that income.
(4)In the case of tax charged under section 731 (charge to tax on income treated as arising to non-transferors where benefit received as a result of relevant transfers), they are references to the amount of relevant income taken into account under section 733 (income charged under section 731) in calculating the amount to be charged in respect of the benefit for the tax year in question.
(1)Income tax at the basic rate, the [F1starting rate for savings] or the dividend ordinary rate is not charged under section 720 or 727 in respect of any income so far as it has borne tax at that rate by deduction or otherwise.
(2)Subsection (1) does not affect the tax charged if section 724(2) applies (benefit provided out of income of person abroad charged in year of receipt).
(3)Subsection (4) applies to any income that—
(a)is treated as arising to an individual under section 721 or 728, and
(b)apart from this Chapter is dividend income,
so far as subsection (1) does not apply to the income.
(4)The charge to income tax under section 720 or, as the case may be, section 727 operates by treating the income as if it were income within section 19(2) (meaning of “dividend income”).
Textual Amendments
F1Words in s. 745(1) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 24
(1)This section applies for the purpose of calculating the liability to income tax of an individual charged under section 720 or 727.
(2)The same deductions and reliefs are allowed as would have been allowed if the income treated as arising to the individual under section 721 or 728 had actually been received by the individual.
(1)This subsection applies if a person—
(a)would have been treated as—
(i)making qualifying accrued income profits, or
(ii)making qualifying accrued income profits of a greater amount,
in an interest period, but
(b)is not so treated because of being resident or domiciled outside the United Kingdom throughout any tax year in which the interest period (or part of it) falls.
(2)If subsection (1) applies, this Chapter applies as if the amount which the person would be treated as making or, as the case may be, the additional amount were income becoming payable to the person.
(3)Accordingly, any reference in this Chapter to income of (or payable or arising to) a person abroad must be read as including a reference to such an amount.
(4)This subsection applies if income consisting of interest which falls due at the end of an interest period—
(a)would have been income as respects which a person is entitled to an exemption, or an exemption of a greater amount, from liability to income tax under section 679 (interest on securities involving accrued income losses: general), but
(b)is not such income because it is income of a person who is resident or domiciled outside the United Kingdom throughout any tax year in which the interest period (or part of it) falls.
(5)If subsection (4) applies, for the purposes of this Chapter the interest is treated as reduced by the amount of the exemption or, as the case may be, the additional exemption.
(6)In this section—
(a)expressions which are also used in Chapter 2 of Part 12 (accrued income profits) have the same meaning as in that Chapter (but see subsection (7)), and
(b)“qualifying accrued income profits” means accrued income profits which are treated as made—
(i)under section 628(5), or
(ii)under section 630(2) in respect of a transfer of variable rate securities.
(7)In the case of qualifying accrued income profits within sub-paragraph (ii) of the definition of that expression in subsection (6)(b)—
(a)references in subsection (1)(a) to making qualifying accrued income profits in an interest period are to be read as making them in the tax year in which the settlement day falls, and
(b)the reference in subsection (1)(b) to the interest period is to the period—
(i)beginning with the day after the last day of the only or last interest period of the securities, and
(ii)ending with the settlement day.