Part 2 U.K. Basic provisions

Chapter 3 U.K. Calculation of income tax liability

26 Tax reductions U.K.

(1) If the taxpayer is an individual, the provisions referred to at Step 6 of the calculation in section 23 are—

(a) the following—

• Chapter 3 of Part 3 of this Act F1 ... (tax reductions for married couples and civil partners),

• [F2 Chapter 3A of Part 3 of this Act (transferable tax allowance for married couples and civil partners),]

• Chapter 1 of Part 5 (EIS relief),

• [F3 Chapter 1 of Part 5A (SEIS relief),]

• [F4 Chapter 1 of Part 5B (relief for social investments),]

• Chapter 2 of Part 6 (VCT relief),

• Chapter 1 of Part 7 (community investment tax relief),

• section 453 (qualifying maintenance payments),

• F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• section 461 (spreading of patent royalty receipts),

• section 353(1A) of ICTA (relief for interest on loan to buy life annuity),

• section 535 of ITTOIA 2005 (top slicing relief), and

• section 539 of ITTOIA 2005 (relief for deficiencies), and

(b) the following—

• F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• section 401 of ITTOIA 2005 (relief: qualifying distribution after linked non-qualifying distribution), F7 ...

• sections 677 and 678 of ITTOIA 2005 (relief where foreign estates have borne UK income tax).

• [F8 sections 2 and 6 of TIOPA 2010 (double taxation relief: relief by agreement), and

• section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax where no double taxation arrangements).]

(2) In any other case, the provisions referred to at Step 6 of the calculation in section 23 are—

(a) the provisions listed in subsection (1)(b), and

(b) section 26 of FA 2005 (trusts with vulnerable beneficiary: income tax relief).

Textual Amendments

F1 Words in s. 26(1)(a) omitted (with effect in accordance with Sch. 1 para. 7 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 1 para. 6(o)(ii)

F2 Words in s. 26(1)(a) inserted (with effect in accordance with s. 11(12) of the amending Act) by Finance Act 2014 (c. 26), s. 11(3)

F3 S. 26(1)(a) entry inserted (17.7.2012) (with effect in accordance with Sch. 6 para. 24(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 6 para. 8

F4 Words in s. 26(1)(a) inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 6

F5 Words in s. 26(1)(a) omitted (17.7.2012) (with effect in accordance with Sch. 39 para. 32(6) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 39 para. 32(2)(a)

F6 Words in s. 26(1)(b) repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 73(2), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22)

F7 Word in s. 26(1)(b) repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 73(3), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22)

F8 Words in s. 26(1)(b) inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 73(4) (with Sch. 9 paras. 1-9, 22)