SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 2Other enactments

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

603

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

604

1

Amend section 7 (charge to income tax on social security pension lump sum) as follows.

2

In subsection (5) for “total income” in each place substitute “ Step 3 income ”.

3

At the end insert—

9

For the purposes of this section P's “Step 3 income” means P's net income less allowances deducted at Step 3 of the calculation in section 23 of ITA 2007 (calculation of income tax liability).

605

In section 18(3)(b)(i) (authorised investment funds etc: section 17(3): specific powers) for “506(1) of ICTA” substitute “ 989 of ITA 2007 ”.

606

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

“ITA 2007” means the Income Tax Act 2007;