SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 1Income and Corporation Taxes Act 1988

37

(1)

Amend section 273 (payments securing annuities) as follows.

(2)

In subsection (1) for “deduction from the amount of income tax on which he or she is chargeable” substitute “ tax reduction ”.

(3)

In subsection (2) for “No deduction may be made” substitute “ There is no entitlement to a tax reduction ”.

(4)

After subsection (2) insert—

“(3)

A tax reduction under this section is given effect at Step 6 of the calculation in section 23 of ITA 2007.”