Income Tax Act 2007

498 Types of income tax for the purposes of section 497 U.K.

(1) The types of amount referred to at Step 2 in section 497 are as follows.

Type 1

The amount of any tax on income (other than income of a kind mentioned below in relation to Type [F1 2, 3 or 3A]) charged at the dividend trust rate or at the trust rate.

Type 2

The amount of tax at the nominal rate on any income which is—

(a) chargeable under Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc from UK resident companies),

(b) chargeable under Chapter 5 of that Part (stock dividends from UK resident companies), or

(c) chargeable under Chapter 6 of that Part (release of loan to participator in close company),

and on which tax is charged at the dividend trust rate as a result of section 479.

Type 3

The amount of tax at the nominal rate on any income on which tax is charged at the dividend trust rate as a result of section 481.

[F2 Type 3A

The amount of tax at the nominal rate on any amount in respect of which—

(a) the trustees are liable to income tax under section 467 of ITTOIA 2005 (gains from contracts for life insurance etc),

(b) the trustees are liable to income tax at the trust rate by virtue of section 482 above, and

(c) tax at the [F3 basic rate] is treated as having been paid by virtue of section 530 of ITTOIA 2005 (life insurance).]

Type 4

The amount of any tax on income on which tax is charged at the basic rate F4 ... as a result of section 491.

Type 5

The amount of tax on any income determined in accordance with section 26 of FA 2005 (special tax treatment for trusts for the benefit of vulnerable persons).

(2) In relation to Types 2 and 3, references to the nominal rate are references to a rate equal to the difference between the dividend trust rate and the dividend ordinary rate.

[F5 (2A) In relation to Type 3A, the reference to the nominal rate is a reference to a rate equal to the difference between the trust rate and the [F6 basic rate] .]

(3) In relation to Types 1 to 4, references to income do not include income the tax on which is reduced in accordance with section 26 of FA 2005.

Textual Amendments

F1 Words in s. 498(1) substituted (21.7.2008 with effect in accordance with s. 56(4) of the amending Act) by Finance Act 2007 (c. 11), s. 56(2)(a)

F2 Words in s. 498(1) inserted (21.7.2008 with effect in accordance with s. 56(4) of the amending Act) by Finance Act 2007 (c. 11), s. 56(2)(b)

F3 Words in s. 498(1) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 22(2)

F4 Words in s. 498(1) omitted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 22(3)

F5 S. 498(2A) inserted (21.7.2008 with effect in accordance with s. 56(4) of the amending Act) by Finance Act 2007 (c. 11), s. 56(3)

F6 Words in s. 498(2A) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 22(4)