Income Tax Act 2007

Finance Act 2000 (c. 17) U.K.

389 U.K. The Finance Act 2000 is amended as follows.

F1 390 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 1 para. 390 repealed (19.7.2011) by Finance Act 2011 (c. 11), Sch. 26 para. 3(2)(c)

391 U.K. In section 44 (which makes provision about expenses of trustees) for subsections (4) and (5) substitute—

“(5A) This section applies if—

(a) in a year of assessment qualifying income arises under a UK settlement,

(b) the qualifying income consists of charitable income and non-charitable income, and

(c) expenses of the trustees are to be used to reduce the charitable income for the purpose of calculating a beneficiary's liability to corporation tax.

(5B) The amount of those expenses which can used for that purpose is limited to the amount allocated to the charitable income.

(5C) The amount of the expenses allocated to the charitable income is determined by apportioning them rateably between the charitable income and the non-charitable income.

(5D) In this section—

• “charitable income” means income within section 628(1) or 630(1) of ITTOIA 2005,

• “non-charitable income” means income which is not charitable income, and

• “qualifying income” and “UK settlement” have the same meaning as in section 628 of ITTOIA 2005.”

F2 392 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Sch. 1 para. 392 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

393 U.K. In section 155 (interpretation) at the end insert “ and “ITA 2007” means the Income Tax Act 2007 ”.

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

(2) In paragraph 16(4) (the unquoted status requirement) after “Taxes Act 1988” insert “ or section 184(3) of ITA 2007 ”.

(3) In paragraph 55(4) (provision supplementary to paragraph 54) after “Taxes Act 1988” insert “ or Part 5 of ITA 2007 ”.

(4) In paragraph 56(3) (value received by other persons)—

(a) after “Taxes Act 1988”, in the first place where it occurs, insert “ or Part 5 of ITA 2007 ”,

(b) for “section 299 of that Act” substitute “ section 299 of the Taxes Act 1988 or section 209 of ITA 2007 ”,

(c) for “section 300(2)(a) of that Act” substitute “ section 300(2)(a) of the Taxes Act 1988 or section 216(2)(a) of ITA 2007 ”, and

(d) after “section 300 of the Taxes Act 1988” insert “ , section 214 of ITA 2007 ”.

(5) In paragraph 102 (minor definitions etc) after sub-paragraph (8) insert—

“(9) References in this Schedule to Part 5 of ITA 2007 or any provision of that Part are to a Part or provision that applies only in relation to shares issued after 5 April 2007.”

395 U.K. In paragraph 41 of Schedule 22 (tonnage tax: the requirement not to enter into tax avoidance arrangements) for sub-paragraph (3) substitute—

“(3) In this paragraph “tax advantage” has the meaning given by section 840ZA of the Taxes Act 1988.”