Income Tax Act 2007

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),

• [F5 section 399B (relief for non-deductible interest on loan to invest in partnership with residential property business),]

• [F6 section 414A(3) (gift aid where devolved basic rate is above basic rate),]

• section 453 (qualifying maintenance payments),

• F7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• section 461 (spreading of patent royalty receipts),

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

• [F8 section 192A of FA 2004 (relief at source: additional relief),]

• [F9 section 274A of ITTOIA 2005 (property business: relief for non-deductible costs of a dwelling-related loan),]

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

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

(b) the following—

• F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• section 401 of ITTOIA 2005 (relief: [F11 distribution repaying shares or security issued in earlier distribution]), F12 ...

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

• [F13 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),

[F14 (aa) section 274B of ITTOIA 2005 (trusts with accumulated or discretionary income derived from property business: relief for non-deductible costs of dwelling-related loans),] 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) inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 24(8)(a)

F6 Words in s. 26(1)(a) inserted (with effect in accordance with art 1(2) of the amending S.I.) by The Devolved Income Tax Rates (Consequential Amendments) Order 2019 (S.I. 2019/201), arts. 1(1), 12(3)

F7 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)

F8 Words in s. 26(1)(a) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Scottish Rate of Income Tax (Consequential Amendments) Order 2015 (S.I. 2015/1810), arts. 1(1), 5(2)

F9 Words in s. 26(1)(a) inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 24(8)(b)

F10 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)

F11 Words in s. 26(1)(b) substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 63(2)

F12 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)

F13 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)

F14 S. 26(2)(aa) inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 24(9)