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SCHEDULES

Section 17

SCHEDULE 3U.K.Trading and property allowances

PART 1 U.K.Main provisions

1U.K.In ITTOIA 2005, after section 783 insert—

PART 6A U.K.Income charged under this Act: trading and property allowances

CHAPTER 1U.K.Trading allowance
IntroductionU.K.
783ARelief under this Chapter

(1)This Chapter gives relief to an individual on—

(a)the income of a relevant trade (see section 783AA), and

(b)miscellaneous income (see section 783AB).

(2)If the individual qualifies for full relief (see section 783AE), the individual's relevant income (see section 783AC) is not charged to income tax (see sections 783AF and 783AG).

(3)If the individual qualifies for partial relief (see section 783AH), the individual's relevant income is calculated by alternative methods (see sections 783AI to 783AK).

(4)Any provision of this Chapter which gives relief is subject to sections 783AN to 783AQ, which specify circumstances in which relief under this Chapter is not given.

Basic definitionsU.K.
783AA“Relevant trade” of an individual

(1)For the purposes of this Chapter, a trade carried on by an individual is a “relevant trade” of the individual for a tax year if—

(a)the individual carries on the trade otherwise than in partnership, and

(b)the trade is not a rent-a-room trade in relation to the individual for the tax year.

(2)For the purposes of subsection (1)(b) a trade is a “rent-a-room trade” in relation to an individual for a tax year if—

(a)the individual qualifies for rent-a-room relief for the tax year, and

(b)the individual has rent-a-room receipts for the tax year which would, apart from Chapter 1 of Part 7 (rent-a-room relief), be brought into account in calculating the profits of the trade.

See section 783AR for definitions relevant to this subsection.

(3)In this Chapter references to a trade include references to a profession or vocation.

783AB“Miscellaneous income”

(1)For the purposes of this Chapter, an individual's “miscellaneous income” for a tax year is all the income arising to the individual in the tax year which would be chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged) for the tax year.

(2)But if—

(a)the individual qualifies for rent-a-room relief for the tax year, and

(b)the individual has rent-a-room receipts for the tax year which would, apart from Chapter 1 of Part 7, be chargeable to income tax under Chapter 8 of Part 5,

the rent-a-room receipts are not miscellaneous income.

(3)The reference in subsection (1) to the amount which would be chargeable to income tax under Chapter 8 of Part 5 is to the amount which would be so chargeable—

(a)apart from this Chapter, and

(b)if no deduction were made for expenses or any other matter.

783ACThe individual's “relevant income”

(1)For the purposes of this Chapter, an individual's “relevant income” for a tax year is the sum of the following—

(a)the receipts for the tax year of the individual's relevant trades for the tax year, and

(b)the individual's miscellaneous income for the tax year.

(2)In subsection (1)(a) the reference to the receipts of a trade for a tax year is to all the amounts which would, apart from this Chapter, be brought into account as a receipt in calculating the profits of the trade for the tax year.

783ADThe individual's trading allowance

(1)For the purposes of this Chapter, an individual's trading allowance for a tax year is £1,000.

(2)The Treasury may by regulations amend subsection (1) so as to substitute a higher sum for the sum for the time being specified in that subsection.

Full reliefU.K.
783AEFull relief: introduction

(1)An individual qualifies for full relief for a tax year if—

(a)the individual has relevant income for the tax year,

(b)the relevant income does not exceed the individual's trading allowance for the tax year, and

(c)no election by the individual under section 783AL has effect for the tax year (election for full relief not to be given).

(2)An individual also qualifies for full relief for a tax year if—

(a)the individual has relevant income for the tax year which consists of or includes receipts of one or more relevant trades,

(b)the relevant income exceeds the individual's trading allowance for the tax year,

(c)the conditions mentioned in subsection (3) are met,

(d)no election by the individual under section 783AL has effect for the tax year, and

(e)no election by the individual under section 783AM has effect for the tax year (election for partial relief).

(3)The conditions are that—

(a)no election by the individual under section 25A (cash basis for trades) has effect for the tax year,

(b)the individual's relevant income would not exceed the individual's trading allowance for the tax year if it were to be assumed that an election by the individual under section 25A had effect for the tax year,

(c)the individual is eligible to make an election under section 25A (see section 31A) for the tax year, and

(d)if any trade carried on by the individual in the tax year was carried on in the immediately preceding tax year—

(i)an election by the individual under section 25A had effect for that preceding tax year, or

(ii)the individual was eligible to make such an election for that preceding tax year.

783AFFull relief: trade profits

(1)This section applies if—

(a)an individual qualifies for full relief for a tax year, and

(b)the individual's relevant income for the tax year consists of or includes receipts of one or more relevant trades.

(2)The profits or losses of each such trade for the tax year are treated as nil.

783AGFull relief: miscellaneous income

(1)This section applies if—

(a)an individual qualifies for full relief for a tax year, and

(b)the individual's relevant income for the tax year consists of or includes miscellaneous income.

(2)The amount of—

(a)the miscellaneous income arising in the tax year, less

(b)any expenses associated with that income,

is treated as nil.

Partial reliefU.K.
783AHPartial relief: alternative calculation of profits: introduction

An individual qualifies for partial relief for a tax year if—

(a)the individual has relevant income for the tax year,

(b)the relevant income exceeds the individual's trading allowance for the tax year, and

(c)an election by the individual under section 783AM has effect for the tax year (election for partial relief).

783AIPartial relief: alternative calculation of trade profits

(1)This section applies if—

(a)an individual qualifies for partial relief for a tax year, and

(b)the individual's relevant income for the tax year consists of or includes receipts of one or more relevant trades.

(2)The profits or losses for the tax year of each of the individual's relevant trades are given by taking the following steps—

(3)Subject to section 783AK, the deductible amount is equal to the individual's trading allowance for the tax year.

(4)“Overlap profit” has the same meaning in this section as it has in Chapter 15 of Part 2 (see sections 204 and 204A).

783AJPartial relief: alternative calculation of chargeable miscellaneous income

(1)This section applies if—

(a)an individual qualifies for partial relief for a tax year, and

(b)the individual's relevant income for the tax year consists of or includes miscellaneous income.

(2)The amount of miscellaneous income chargeable to income tax for the tax year is—

(a)the miscellaneous income for the tax year, less

(b)the deductible amount.

(3)Subject to section 783AK, the deductible amount is equal to the individual's trading allowance for the tax year.

783AKDeductible amount: splitting of trading allowance

(1)This section applies where the individual's relevant income for the tax year includes—

(a)receipts of a relevant trade, and

(b)receipts of any other relevant trade or miscellaneous income (or both).

(2)The references in section 783AI and (where it applies) section 783AJ to the deductible amount are to amounts which, in total, equal the individual's trading allowance for the tax year.

(3)The question of how to allocate the individual's trading allowance for the tax year for the purposes of subsection (2) is to be decided by the individual, subject to subsections (4) and (5).

(4)The deductible amount in respect of a relevant trade must not be such that the amount given by step 2 of section 783AI(2) is negative.

(5)The deductible amount in respect of miscellaneous income must not be such as to result in the individual making a loss in the transactions giving rise to the miscellaneous income.

ElectionsU.K.
783ALElection for full relief not to be given

(1)An individual may elect not to be given full relief for a tax year (see sections 783AF and 783AG).

(2)An election must be made on or before the first anniversary of the normal self-assessment filing date for the tax year for which the election is made.

783AMElection for partial relief

(1)An individual may elect for partial relief to be given for a tax year if the individual's relevant income for the tax year exceeds the individual's trading allowance for the tax year (see sections 783AI and 783AJ).

(2)An election must be made on or before the first anniversary of the normal self-assessment filing date for the tax year for which the election is made.

Exclusions from reliefU.K.
783ANExclusion from relief: expenses deducted against rent-a-room receipts

(1)No relief under this Chapter is given to an individual for a tax year if—

(a)the individual qualifies for rent-a-room relief for the tax year,

(b)the individual has rent-a-room receipts mentioned in subsection (2) for the tax year, and

(c)condition A or B is met.

(2)The rent-a-room receipts mentioned in subsection (1) are—

(a)rent-a-room receipts which would, apart from Chapter 1 of Part 7 (rent-a-room relief), be brought into account in calculating the profits of a trade, or

(b)rent-a-room receipts which would, apart from Chapter 1 of Part 7, be chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged).

(3)Condition A is that—

(a)the individual's total rent-a-room amount for the tax year does not exceed the individual's limit for the tax year (see section 783AR), and

(b)an election by the individual under section 799 has effect to disapply full rent-a-room relief for the tax year.

(4)Condition B is that—

(a)the individual's total rent-a-room amount for the tax year exceeds the individual's limit for the tax year, and

(b)no election by the individual under section 800 has effect to apply the alternative method of calculating profits for the tax year.

783AOExclusion from relief: payments by employer

No relief under this Chapter is given to an individual for a tax year if—

(a)the individual has relevant income for the tax year, and

(b)the income includes a payment made by, or on behalf of, a person at a time when the individual is—

(i)an employee of the person, or

(ii)the spouse or civil partner of an employee of the person.

783APExclusion from relief: payments by firm

No relief under this Chapter is given to an individual for a tax year if—

(a)the individual has relevant income for the tax year, and

(b)the income includes a payment made by, or on behalf of, a firm at a time when the individual is—

(i)a partner in the firm, or

(ii)connected with a partner in the firm.

783AQExclusion from relief: payments by close company

(1)No relief under this Chapter is given to an individual for a tax year if—

(a)the individual has relevant income for the tax year, and

(b)the income includes a payment made by, or on behalf of, a close company at a time when the individual is—

(i)a participator in the close company, or

(ii)an associate of a participator in the close company.

(2)In this section “associate” and “participator” have the same meanings as in Part 10 of CTA 2010 (see sections 448 and 454).

InterpretationU.K.
783ARInterpretation of this Chapter

In this Chapter—

(a)rent-a-room relief”, “rent-a-room receipts” and “total rent-a-room amount” have the same meanings as in Chapter 1 of Part 7 (rent-a-room relief: see sections 784, 786 and 788), and

(b)references to “the individual's limit” are to be construed in accordance with section 789 (the individual's limit for the purposes of rent-a-room relief).

CHAPTER 2U.K.Property allowance
IntroductionU.K.
783BRelief under this Chapter

(1)This Chapter gives relief to an individual on certain income of a relevant property business (see sections 783BA and 783BB).

(2)The form of relief depends on whether the individual's relevant property income exceeds the individual's property allowance (see sections 783BC and 783BD).

(3)If the individual's relevant property income does not exceed the individual's property allowance, the income is not charged to income tax (unless the individual elects otherwise) (see sections 783BE and 783BF).

(4)If the individual's relevant property income does exceed the individual's property allowance, the individual may elect for an alternative method of calculating the income (see sections 783BG to 783BI).

(5)Any provision of this Chapter which gives relief is subject to sections 783BL to 783BP, which specify circumstances in which relief under this Chapter is not given.

Basic definitionsU.K.
783BA“Relevant property business” of an individual

(1)Subject to subsection (3), for the purposes of this Chapter an individual's property business is a “relevant property business” for a tax year if the business is not a rent-a-room property business in relation to the individual for the tax year.

(2)For the purposes of subsection (1) a property business is a “rent-a-room property business” in relation to an individual for a tax year if—

(a)the individual qualifies for rent-a-room relief for the tax year, and

(b)all the receipts which would, apart from Chapter 1 of Part 7 (rent-a-room relief), be brought into account in calculating the profits of the business, are rent-a-room receipts.

See section 783BQ for definitions relevant to this subsection.

(3)If an individual receives—

(a)property income distributions which are treated as profits of a UK property business by virtue of regulation 69Z18(1) or (2) of the AIF Regulations (property AIF distributions: liability to tax), or

(b)distributions which are treated as profits of a UK property business by virtue of section 548(6) of CTA 2010 (REIT distributions: liability to tax),

that separate property business (see regulation 69Z18(6) of the AIF Regulations and section 549(5) of CTA 2010) is not a relevant property business of the individual.

(4)In subsection (3) “the AIF Regulations” means the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964).

783BB“Relievable receipts” of a property business

(1)For the purposes of this Chapter, the “relievable receipts” of an individual's relevant property business for a tax year are all the amounts which would, apart from this Chapter, be brought into account as a receipt in calculating the profits of the business for the tax year.

This is subject to subsections (2) and (3).

(2)If—

(a)the individual qualifies for rent-a-room relief for the tax year, and

(b)the individual has rent-a-room receipts for the tax year which would, apart from Chapter 1 of Part 7, be brought into account in calculating the profits of the property business,

the rent-a-room receipts are not relievable receipts of the business.

(3)Non-relievable balancing charges in respect of the property business for the tax year are not relievable receipts of the business.

(4)In subsection (3) “non-relievable balancing charges”, in respect of a property business for a tax year, means balancing charges falling to be made for the tax year under Part 2 of CAA 2001 which do not relate to a business or transaction which is carried on, or entered into, for the purpose of generating receipts which are relievable receipts of the property business.

783BCThe individual's “relevant property income”

For the purposes of this Chapter, an individual's “relevant property income” for a tax year is the relievable receipts for the tax year of the individual's relevant property businesses for the tax year.

783BDThe individual's property allowance

(1)For the purposes of this Chapter, an individual's property allowance for a tax year is £1,000.

(2)The Treasury may by regulations amend subsection (1) so as to substitute a higher sum for the sum for the time being specified in that subsection.

Relief if relevant property income does not exceed property allowanceU.K.
783BEFull relief: introduction

An individual qualifies for full relief for a tax year if—

(a)the individual has relevant property income for the tax year,

(b)the relevant property income does not exceed the individual's property allowance for the tax year, and

(c)no election by the individual under section 783BJ has effect for the tax year (election for full relief not to be given).

783BFFull relief: property profits

(1)If an individual qualifies for full relief for a tax year, this section applies in relation to the calculation of the profits of the individual's relevant property business for the tax year or, where the individual's relevant property income for the tax year consists of the relievable receipts of two relevant property businesses, the profits of each property business for the tax year.

(2)The following are not brought into account—

(a)the relievable receipts of the property business for the tax year, and

(b)any expenses associated with those receipts.

Relief if relevant property income exceeds property allowanceU.K.
783BGPartial relief: alternative calculation of property profits: introduction

An individual qualifies for partial relief for a tax year if—

(a)the individual has relevant property income for the tax year,

(b)the relevant property income exceeds the individual's property allowance for the tax year, and

(c)an election by the individual under section 783BK has effect for the tax year (election for partial relief).

783BHPartial relief: alternative calculation of property profits

(1)If an individual qualifies for partial relief for a tax year, this section applies in relation to the calculation of the profits of the individual's relevant property business for the tax year or, where the individual's relevant property income for the tax year consists of the relievable receipts of two relevant property businesses, the profits of each property business for the tax year.

(2)The relievable receipts of the property business for the tax year are brought into account.

(3)No relevant expenses are brought into account.

(4)The deductible amount is brought into account.

(5)Subject to section 783BI, the deductible amount is equal to the individual's property allowance for the tax year.

(6)In subsection (3) “relevant expenses” means all the amounts—

(a)which would, apart from this section, be brought into account as a deduction in calculating the profits of the business for the tax year, and

(b)which are associated with the relievable receipts.

783BIDeductible amount: splitting of property allowance

(1)This section applies where the individual's relevant property income for the tax year consists of the relievable receipts of two relevant property businesses.

(2)The references in section 783BH to the deductible amount are to amounts which, in total, equal the individual's property allowance for the tax year.

(3)The question of how to allocate the individual's property allowance for the tax year for the purposes of subsection (2) is to be decided by the individual, subject to subsection (4).

(4)The deductible amount in respect of a relevant property business must not be such as to result in a loss of the business.

ElectionsU.K.
783BJElection for full relief not to be given

(1)An individual may elect not to be given full relief for a tax year (see section 783BF).

(2)An election must be made on or before the first anniversary of the normal self-assessment filing date for the tax year for which the election is made.

783BKElection for partial relief

(1)An individual may elect for partial relief to be given for a tax year if the individual's relevant property income for the tax year exceeds the individual's property allowance for the tax year (see section 783BH).

(2)An election must be made on or before the first anniversary of the normal self-assessment filing date for the tax year for which the election is made.

Exclusions from reliefU.K.
783BLExclusion from relief: tax reduction under section 274A

No relief under this Chapter is given to an individual for a tax year if, in calculating the individual's liability to income tax for the tax year, a tax reduction under section 274A (property business: relief for non-deductible costs of a dwelling-related loan) is applied at Step 6 of the calculation in section 23 of ITA 2007.

783BMExclusion from relief: expenses deducted against rent-a-room receipts

(1)No relief under this Chapter is given to an individual for a tax year if—

(a)the individual qualifies for rent-a-room relief for the tax year,

(b)the individual has rent-a-room receipts for the tax year which would, apart from Chapter 1 of Part 7 (rent-a-room relief), be brought into account in calculating the profits of a property business, and

(c)condition A or B is met.

(2)Condition A is that—

(a)the individual's total rent-a-room amount for the tax year does not exceed the individual's limit for the tax year (see section 783BQ), and

(b)an election by the individual under section 799 has effect to disapply full rent-a-room relief for the tax year.

(3)Condition B is that—

(a)the individual's total rent-a-room amount for the tax year exceeds the individual's limit for the tax year, and

(b)no election by the individual under section 800 has effect to apply the alternative method of calculating profits for the tax year.

783BNExclusion from relief: payments by employer

No relief under this Chapter is given to an individual for a tax year if—

(a)the individual has relevant property income for the tax year, and

(b)the income includes a payment made by, or on behalf of, a person at a time when the individual is—

(i)an employee of the person, or

(ii)the spouse or civil partner of an employee of the person.

783BOExclusion from relief: payments by firm

No relief under this Chapter is given to an individual for a tax year if—

(a)the individual has relevant property income for the tax year, and

(b)the income includes a payment made by, or on behalf of, a firm at a time when the individual is—

(i)a partner in the firm, or

(ii)connected with a partner in the firm.

783BPExclusion from relief: payments by close company

(1)No relief under this Chapter is given to an individual for a tax year if—

(a)the individual has relevant property income for the tax year, and

(b)the income includes a payment made by, or on behalf of, a close company at a time when the individual is—

(i)a participator in the close company, or

(ii)an associate of a participator in the close company.

(2)In this section “associate” and “participator” have the same meanings as in Part 10 of CTA 2010 (see sections 448 and 454).

InterpretationU.K.
783BQInterpretation of this Chapter

In this Chapter—

(a)rent-a-room relief”, “rent-a-room receipts” and “total rent-a-room amount” have the same meanings as in Chapter 1 of Part 7 (rent-a-room relief: see sections 784, 786 and 788), and

(b)references to “the individual's limit” are to be construed in accordance with section 789 (the individual's limit for the purposes of rent-a-room relief).

PART 2 U.K.Consequential amendments

ITTOIA 2005U.K.

2U.K.ITTOIA 2005 is amended in accordance with paragraphs 3 to 11.

3U.K.In section 1 (overview of Act), before paragraph (a) of subsection (5) insert—

(za)provision about a trading allowance and property allowance (see Part 6A),.

4U.K.In Chapter 2 of Part 2 (trading income: income taxed as trade profits), after section 22 insert—

Trading allowanceU.K.
22ATrading allowance

(1)The rules for calculating the profits of a trade, profession or vocation carried on by an individual are subject to Chapter 1 of Part 6A (trading allowance).

(2)That Chapter gives relief on relevant income and, where relief is given, disallows most deductions under this Part (see, in particular, sections 783AC, 783AF and 783AI).

5U.K.In Chapter 15 of Part 2 (basis periods), after section 204 insert—

204AOverlap profit and trading allowance under Chapter 1 of Part 6A

(1)This section makes provision about the amount of profit treated as arising in an overlap period which falls within the basis period of a trade for two tax years (“tax year A” and “tax year B”) where relief is given under Chapter 1 of Part 6A (trading allowance) in respect of the trade for at least one of those tax years.

(2)The profit which arises in the overlap period is treated as nil if—

(a)the profits or losses of the trade for tax year A or tax year B (or both) are treated as nil under section 783AF (full relief: trade profits), or

(b)in relation to tax year A or tax year B (or both)—

(i)section 783AI applies in calculating the profits or losses of the trade (partial relief: alternative calculation of trade profits), and

(ii)the deductible amount subtracted at step 2 of section 783AI(2) in relation to the trade is greater than or equal to the non-adjusted overlap profit.

(3)Subsection (6) applies if conditions 1 and 2 are met.

(4)Condition 1 is that, in relation to either tax year A or tax year B—

(a)section 783AI applies in calculating the profits or losses of the trade, and

(b)the deductible amount subtracted at step 2 of section 783AI(2) in relation to the trade is less than the non-adjusted overlap profit.

(5)Condition 2 is that neither section 783AF nor section 783AI applies in relation to the trade—

(a)where condition 1 is met in relation to tax year A, for tax year B, or

(b)where condition 1 is met in relation to tax year B, for tax year A.

(6)The profit which arises in the overlap period is treated as equal to the non-adjusted overlap profit less the deductible amount mentioned in subsection (4)(b).

(7)Subsection (8) applies if, in relation to each of tax year A and tax year B—

(a)section 783AI applies in calculating the profits or losses of the trade, and

(b)the deductible amount subtracted at step 2 of section 783AI(2) in relation to the trade is less than the non-adjusted overlap profit.

(8)The profit which arises in the overlap period is treated as equal to the non-adjusted overlap profit less the higher of the following—

(a)the deductible amount subtracted at step 2 of section 783AI(2) in calculating the profits or losses of the trade for tax year A, and

(b)the deductible amount subtracted at step 2 of section 783AI(2) in calculating the profits or losses of the trade for tax year B.

(9)In this section “non-adjusted overlap profit” means the amount of profit that would arise in the overlap period apart from—

(a)Chapter 1 of Part 6A, and

(b)this section.

6U.K.In section 227A (application of Chapter where cash basis used), after subsection (2) insert—

(3)This section is subject to section 227C (application of Chapter where section 227B applies).

7U.K.After section 227A insert—

227BCash basis treatment: full relief under Chapter 1 of Part 6A (trading allowance)

(1)Subsection (2) applies if—

(a)an individual carries on a trade in a tax year, and

(b)the profits or losses of the trade for the tax year are treated as nil under section 783AF (trade profits: full relief under Chapter 1 of Part 6A) by virtue of the fact that the conditions in section 783AE(2) are met.

(2)For the purposes of determining if this Chapter applies, an election under section 25A is to be treated as having effect in relation to the trade for the tax year.

227CApplication of Chapter where section 227B applies

(1)This section applies if, as a result of the operation of section 227B, the basis on which profits of a trade are calculated is treated as changed as mentioned in section 227A(1).

(2)This Chapter applies as if—

(a)in sections 232(1) and 233(1), for “the first period of account for which the new basis is adopted” there were substituted “ the first tax year for which the profits or losses of the trade are not treated as nil under section 783AF ”, and

(b)sections 235, 236, 237, 239A and 239B were omitted.

(3)If there is no tax year after the change of basis for which the profits or losses of the trade are not treated as nil under section 783AF, this Chapter does not apply.

8U.K.After section 307F (inserted by Schedule 2 to this Act) insert—

Property allowanceU.K.
307GProperty allowance

(1)The rules for calculating the profits of an individual's property business are subject to Chapter 2 of Part 6A (property allowance).

(2)That Chapter gives relief on relevant property income and, where relief is given, disallows all deductions under this Part which relate to that income (see, in particular, sections 783BC, 783BF and 783BH).

9U.K.In section 688 (income charged under Chapter 8 of Part 5), before paragraph (a) of subsection (2) insert—

(za)Chapter 1 of Part 6A (which gives relief on relevant income which may consist of or include income chargeable under this Chapter: see, in particular, sections 783AB, 783AC, 783AG and 783AJ),.

10U.K.In section 828 (overlap profit), in subsection (3), for “section 204” substitute “ sections 204 and 204A ”.

11U.K.In Part 2 of Schedule 4 (defined expressions)—

(a)at the appropriate places insert—

individual's property allowance (in Chapter 2 of Part 6A)section 783BD
individual's trading allowance (in Chapter 1 of Part 6A)section 783AD
miscellaneous income (in Chapter 1 of Part 6A)section 783AB
relevant income (in Chapter 1 of Part 6A)section 783AC
relevant property business (in Chapter 2 of Part 6A)section 783BA
relevant property income (in Chapter 2 of Part 6A)section 783BC
relevant trade (in Chapter 1 of Part 6A)section 783AA
relievable receipts (in Chapter 2 of Part 6A)section 783BB,

(b)in the entry for “overlap profit”, for “section 204” substitute “ sections 204 and 204A ”.

TIOPA 2010U.K.

12U.K.In TIOPA 2010—

(a)in section 22(8) (credit for foreign tax on overlap profit if credit for that tax already allowed), in the definition of “overlap profit”, for “section 204” substitute “ sections 204 and 204A ”, and

(b)in section 24(8) (claw-back of relief under section 22(2)), in the definition of “overlap profit”, for “section 204” substitute “ sections 204 and 204A ”.

PART 3 U.K.Commencement

13U.K.The amendments made by this Schedule have effect for the tax year 2017-18 and subsequent tax years.