SCHEDULES

SCHEDULE 2Income tax rates

Part 2Amendments of other Acts

ITTOIA 2005

19

ITTOIA 2005 is amended as follows.

20

In section 640(6)(b) (grossing-up of deemed income)—

a

omit the “and” at the end of sub-paragraph (i), and

b

insert at the end

up to and including the year 2009-2010, and

iii

50%, if the relevant tax year is the year 2010-2011 or any subsequent tax year.

F121

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

In section 685A(3) (settlor-interested settlements), for “higher rate” substitute “ additional rate ”.

23

1

Part 2 of Schedule 4 (index of defined expressions) is amended as follows.

2

After the entry relating to “acquisition expenditure (in Chapter 9 of Part 2)” insert—

additional rate

section 6(2) of ITA 2007 (as applied by section 989 of that Act).

3

After the entry relating to “distribution” insert—

the dividend additional rate

section 8(3) of ITA 2007 (as applied by section 989 of that Act).