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Income Tax Act 2007 | Consolidated to 2009

Ita2007_small
We have incorporated changes made by all the Finance Acts up to and including the Finance Act 2009, as well as those made by Statutory Instruments (up to and including those taking effect on 1 January 2010. Each amendment is clearly cited, with the source identified.

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Table of Contents

Part 1 Overview
Section 1 Overview of Income Tax Acts
Section 2 Overview of Act
Part 2 Basic provisions
Chapter 1 Charges to income tax
Section 3 Overview of charges to income tax
Section 4 Income tax an annual tax
Section 5 Income tax and companies
Chapter 2 Rates at which income tax is charged
The rates
Section 6 The … basic rate and higher rate
Section 7 [The starting rate for savings]
Section 8 The dividend ordinary rate and dividend upper rate
Section 9 The trust rate and dividend trust rate
Income charged at particular rates
Section 10 Income charged at the … basic and higher rates: individuals
Section 11 Income charged at the basic rate: other persons
Section 12 Income charged at the starting rate for savings
Section 13 Income charged at the dividend ordinary and dividend upper rates: individuals
Section 14 Income charged at the dividend ordinary rate: other persons
Section 15 Income charged at the trust rate and the dividend trust rate
Section 16 Savings and dividend income to be treated as highest part of total income
Section 17 Repayment: tax paid at basic rate instead of [starting rate for savings]
Section 18 Meaning of “savings income”
Section 19 Meaning of “dividend income”
Indexation of basic rate limit and starting rate limit for savings
Section 20 The starting rate limit and the basic rate limit
Section 21 Indexation of the [basic rate limit and starting rate limit for savings]
Chapter 3 Calculation of income tax liability
Section 22 Overview of Chapter
Section 23 The calculation of income tax liability
Section 24 Reliefs deductible at Step 2
Section 25 Reliefs and allowances deductible at Steps 2 and 3: supplementary
Section 26 Tax reductions
Section 27 Order of deducting tax reductions: individuals
Section 28 Order of deducting tax reductions: other persons
Section 29 Tax reductions: supplementary
Section 30 Additional tax
Section 31 Total income: supplementary
Section 32 Liability not dealt with in the calculation
Part 3 Personal reliefs
Chapter 1 Introduction
Section 33 Overview of Part
Chapter 2 Personal allowance and blind person’s allowance
Introduction
Section 34 Allowances under Chapter
Personal allowances
Section 35 Personal allowance for those aged under 65
Section 36 Personal allowance for those aged 65 to 74
Section 37 Personal allowance for those aged 75 and over
Blind person’s allowance
Section 38 Blind person’s allowance
Section 39 Transfer of part of blind person’s allowance to a spouse or civil partner
Section 40 Election for transfer of allowance under section 39
Supplementary
Section 41 Allowances in year of death
Chapter 3 Tax reductions for married couples and civil partners
Introduction
Section 42 Tax reductions under Chapter
Section 43 Meaning of “the minimum amount”
Section 44 Election for new rules to apply
Married couple’s allowance
Section 45 Marriages before 5 December 2005
Section 46 Marriages and civil partnerships on or after 5 December 2005
Elections to transfer relief
Section 47 Election by individual to transfer relief under section 45 or 46
Section 48 Joint election to transfer relief under section 45 or 46
Section 49 Election for partial transfer back of relief
Section 50 Procedure for making and withdrawing elections under sections 47 to 49
Transfer of unused relief
Section 51 Transfer of unused relief
Section 52 Transfer back of unused relief
Section 53 Transfer of unused relief: general
Supplementary
Section 54 Tax reductions in the year of marriage or entry into civil partnership
Section 55 Sections 45 to 53: supplementary
Chapter 4 General
Section 56 Residence etc. of claimants
Section 57 Indexation of allowances
Section 58 Meaning of “adjusted net income”
Part 4 Loss relief
Chapter 1 Introduction
Section 59 Overview of Part
Chapter 2 Trade losses
Introduction
Section 60 Overview of Chapter
Section 61 Non-partners: losses of a tax year
Section 62 Partners: losses of a tax year etc.
Section 63 Prohibition against double counting
Trade loss relief against general income
Section 64 Deduction of losses from general income
Section 65 How relief works
Restriction on relief for uncommercial trades
Section 66 Restriction on relief unless trade is commercial
Restriction on relief for “hobby” farming or market gardening
Section 67 Restriction on relief in case of farming or market gardening
Section 68 Reasonable expectation of profit
Section 69 Whether trade is the same trade
Section 70 Determining losses in previous tax years
Use of trading loss as CGT loss
Section 71 Treating trade losses as CGT losses
Early trade losses relief
Section 72 Relief for individuals for losses in first 4 years of trade
Section 73 How relief works
Section 74 Restrictions on relief unless trade is commercial etc.
General restrictions on sideways relief and capital gains relief
Section 74A Reliefs in any tax year not to exceed cap for tax year
Section 74B No relief for tax-generated losses
Section 74C Meaning of “non-active capacity” for purposes of sections 74A and 74B etc.
Section 74D Meaning of “qualifying film expenditure” for purposes of sections 74A and 74B
Restrictions on sideways relief for certain capital allowances
Section 75 Trade leasing allowances given to individuals
Section 76 First-year allowances [and annual investment allowances]: introduction
Section 77 First-year allowances: partnerships with companies
Section 78 First-year allowances [and annual investment allowances]: arrangements to reduce tax liabilities
Section 79 Capital allowances restrictions: supplementary
Restriction on sideways relief for specific trades
Section 80 Ring fence income
Section 81 Dealings in commodity futures
Section 82 Exploitation of films
Carry-forward trade loss relief
Section 83 Carry forward against subsequent trade profits
Section 84 How relief works
Section 85 Use of trade-related interest and dividends if trade profits insufficient
Section 86 Trade transferred to a company
Section 87 Ring fence trades
Section 88 Carry forward of certain interest as loss
Terminal trade loss relief
Section 89 Carry back of losses on a permanent cessation of a trade
Section 90 Losses that are “terminal losses”
Section 91 How relief works
Section 92 Use of trade-related interest and dividends if trade profits insufficient
Section 93 Mineral extraction trade and carry back of balancing allowances
Section 94 Carry back of certain interest as loss
Wholly foreign trades
Section 95 Foreign trades etc: reliefs only against foreign income
Post-cessation trade relief
Section 96 Post-cessation trade relief
Section 97 Meaning of “qualifying payment”
Section 98 Meaning of “qualifying event” etc.
Section 99 Reduction of relief for unpaid trade expenses
Section 100 Prohibition against double counting
Section 101 Treating excess post-cessation trade relief as CGT loss
Chapter 3 Restrictions on trade loss relief for certain partners
Introduction
Section 102 Overview of Chapter
Section 103 Meaning of “sideways relief”, “capital gains relief” and “firm”
Section 103A Meaning of “limited partner”
Section 103B Meaning of “non-active partner” etc.
Limit on amount of sideways relief and capital gains relief
Section 103C Limit on reliefs in any tax year not to exceed cap for tax year
Section 103D Meaning of “qualifying film expenditure”
Limited partners
Section 104 Restriction on reliefs for limited partners
Section 105 Meaning of “contribution to the firm”
Section 106 Meaning of “limited partner”
Members of LLPs
Section 107 Restriction on reliefs for members of LLPs
Section 108 Meaning of “contribution to the LLP”
Section 109 Unrelieved losses brought forward
Non-active members of LLPs or other partnerships (apart from limited partnerships)
Section 110 Restriction on reliefs for non-active partners in early tax years
Section 111 Meaning of “contribution to the firm”
Section 112 [Meaning of “early tax year”]
Section 113 Unrelieved losses brought forward
Exclusion of amounts in calculating contribution to the firm or LLP
Section 113A Exclusion of amounts contributed to access relief
Section 114 [Power to exclude other amounts]
Restrictions for film trades carried on in partnership
Section 115 Restrictions on reliefs for firms exploiting films
Section 116 Exclusion from restrictions under section 115: certain film expenditure
Chapter 4 Losses from property businesses
Introduction
Section 117 Overview of Chapter
Carry-forward property loss relief
Section 118 Carry forward against subsequent property business profits
Section 119 How relief works
Property loss relief against general income
Section 120 Deduction of property losses from general income
Section 121 How relief works
Section 122 Meaning of “the applicable amount of the loss”
Section 123 Meaning of “the loss has a capital allowances connection” and “the business has a relevant agricultural connection”
Section 124 Supplementary
Post-cessation property relief
Section 125 Post-cessation property relief
Section 126 Treating excess post-cessation property relief as CGT loss
Furnished holiday accommodation
Section 127 UK furnished holiday lettings business treated as trade
Chapter 5 Losses in an employment or office
Section 128 Employment loss relief against general income
Section 129 How relief works
Section 130 Treating loss in employment or office as CGT loss
Chapter 6 Losses on disposal of shares
Share loss relief against general income
Section 131 Share loss relief
Section 132 Entitlement to claim
Section 133 How relief works
Shares to which EIS relief is not attributable
Section 134 Qualifying trading companies
Section 135 Subscriptions for shares
Section 136 Disposals of new shares
Qualifying trading companies: the requirements
Section 137 The trading requirement
Section 138 Ceasing to meet trading requirement because of administration or receivership
Section 139 The control and independence requirement
Section 140 The qualifying subsidiaries requirement
Section 141 The property managing subsidiaries requirement
Section 142 The gross assets requirement
Section 143 The unquoted status requirement
Section 144 Power to amend requirements by Treasury order
Qualifying trading companies: supplementary
Section 145 Relief after an exchange of shares for shares in another company
Section 146 Substitution of new shares for old shares
Limits on share loss relief and mixed holdings
Section 147 Limits on share loss relief
Section 148 Disposal of shares forming part of mixed holding
Section 149 Section 148: supplementary
Miscellaneous and supplementary
Section 150 Deemed time of issue for certain shares
Section 151 Interpretation of Chapter
Chapter 7 Losses from miscellaneous transactions
Loss relief against miscellaneous income
Section 152 Losses from miscellaneous transactions
Section 153 How relief works
Deposit rights
Section 154 Transactions in deposit rights
Supplementary
Section 155 Time limit for claiming relief
Part 5 Enterprise investment scheme
Chapter 1 Introduction
EIS relief
Section 156 Meaning of “EIS relief” and commencement
Section 157 Eligibility for EIS relief
Section 158 Form and amount of EIS relief
Miscellaneous
Section 159 Periods A, B and C
Section 160 Overview of other Chapters of Part
Section 161 Other tax reliefs relating to EIS
Chapter 2 The investor
Introduction
Section 162 Overview of Chapter
The requirements
Section 163 The no connection with the issuing company requirement
Section 164 The no linked loans requirement
Section 165 The no tax avoidance requirement
Meaning of connection with issuing company
Section 166 Connection with issuing company
Section 167 Employees, directors and partners
Section 168 Directors excluded from connection
Section 169 Directors qualifying for relief despite connection
Section 170 Persons interested in capital etc. of company
Section 171 Persons subscribing for shares under certain arrangements
Chapter 3 General requirements
Introduction
Section 172 Overview of Chapter
The requirements
Section 173 The shares requirement
Section 173A The maximum amount raised annually through risk capital schemes requirement
Section 174 The purpose of the issue requirement
Section 175 The use of the money raised requirement
Section 176 The minimum period requirement
Section 177 The no pre-arranged exits requirement
Section 178 The no tax avoidance requirement
Meaning of “qualifying business activity”
Section 179 Meaning of “qualifying business activity”
Chapter 4 The issuing company
Introduction
Section 180 Overview of Chapter
The requirements
Section 181 The trading requirement
Section 182 Ceasing to meet trading requirement because of administration or receivership
Section 183 The issuing company to carry on the qualifying business activity requirement
Section 184 The unquoted status requirement
Section 185 The control and independence requirement
Section 186 The gross assets requirement
Section 186A The number of employees requirement
Section 187 The qualifying subsidiaries requirement
Section 188 The property managing subsidiaries requirement
Definitions
Section 189 Meaning of “qualifying trade”
Section 190 Meaning of “qualifying 90% subsidiary”
Section 191 Meaning of “qualifying subsidiary”
Excluded activities
Section 192 Meaning of “excluded activities”
Section 193 Excluded activities: wholesale and retail distribution
Section 194 Excluded activities: leasing of ships
Section 195 Excluded activities: receipt of royalties and licence fees
Section 196 Excluded activities: property development
Section 196A Excluded activities: shipbuilding
Section 196B Excluded activities: producing coal
Section 196C Excluded activities: producing steel
Section 197 Excluded activities: hotels and comparable establishments
Section 198 Excluded activities: nursing homes and residential care homes
Section 199 Excluded activities: provision of services or facilities for another business
Supplementary
Section 200 Power to amend by Treasury order
Chapter 5 Attribution of and claims for EIS relief
Attribution
Section 201 Attribution of EIS relief to shares
Claims: general
Section 202 Time for making claims for EIS relief
Section 203 Entitlement to claim
Claims: supporting documents
Section 204 Compliance certificates
Section 205 Compliance statements
Section 206 Appeal against refusal to authorise compliance certificate
Section 207 Penalties for fraudulent certificate or statement etc.
Chapter 6 Withdrawal or reduction of EIS relief
Introduction
Section 208 Overview of Chapter
Disposals
Section 209 Disposal of shares
Section 210 Cases where maximum EIS relief not obtained
Section 211 Call options
Section 212 Put options
Value received by investor
Section 213 Value received by the investor
Section 214 Value received: receipts of insignificant value
Section 215 Meaning of “receipts of insignificant value”
Section 216 When value is received
Section 217 The amount of value received
Section 218 Value received where there is more than one issue of shares
Section 219 Value received where part of share issue treated as made in previous tax year
Section 220 Cases where maximum EIS relief not obtained
Section 221 Receipts of value by and from connected persons etc.
Section 222 Receipt of replacement value
Section 223 Section 222: supplementary
Repayments etc. of share capital to other persons
Section 224 Repayments etc. of share capital to other persons
Section 225 Insignificant repayments ignored for purposes of section 224
Section 226 Amount of repayments etc. where there is more than one issue of shares
Section 227 Single issue affecting more than one individual
Section 228 Single issue treated as made partly in previous tax year
Section 229 Maximum relief not obtained for share issue
Section 230 Repayment of authorised minimum within 12 months
Section 231 Restriction on withdrawal of relief under section 224
Miscellaneous
Section 232 Acquisition of a trade or trading assets
Section 233 Acquisition of share capital
Section 234 Relief subsequently found not to have been due
Chapter 7 Withdrawal or reduction of EIS relief: procedure
Assessments and appeals
Section 235 Assessments for the withdrawal or reduction of EIS relief
Section 236 Appeals against section 234(3)(b) notices
Section 237 Time limits for assessments
Section 238 Cases where assessment not to be made
Interest
Section 239 Date from which interest is chargeable
Information
Section 240 Information to be provided by the investor
Section 241 Information to be provided by the issuing company etc.
Section 242 Power to require information where section 240 or 241 applies or could have applied
Section 243 Power to require information in other cases
Section 244 Obligations of secrecy
Chapter 8 Supplementary and general
Disposals of shares
Section 245 Transfers between spouses or civil partners
Section 246 Identification of shares on a disposal
Acquisition of issuing company
Section 247 Continuity of EIS relief where issuing company is acquired by new company
Section 248 Carry over of obligations etc. where EIS relief attributed to new shares
Section 249 Substitution of new shares for old shares
Nominees etc.
Section 250 Nominees and bare trustees
Section 251 Approved investment fund as nominee
Interpretation
Section 252 Meaning of a company being “in administration” or “in receivership”
Section 253 Meaning of “associate”
Section 254 Meaning of “disposal of shares”
Section 255 Meaning of “issue of shares”
Section 256 Meaning of “the termination date”
Section 257 Minor definitions etc.
Part 6 Venture capital trusts
Chapter 1 Introduction
Section 258 Overview of Part
Section 259 Venture capital trusts and VCT approvals
Section 260 Other tax reliefs relating to VCTs
Chapter 2 VCT relief
Entitlement to relief
Section 261 Eligibility for relief
Section 262 Entitlement to claim relief
Section 263 Form and amount of relief
Section 264 No entitlement to relief if there is a linked loan
Section 265 No entitlement to relief which would have been lost if it had already been obtained
Loss of relief
Section 266 Loss of relief if shares disposed of within 5 years
Section 267 Transfers of shares between spouses or civil partners
Section 268 Loss of relief if VCT approval withdrawn
Section 269 Loss of relief which is subsequently found not to have been due
Section 270 Assessment on withdrawal or reduction of relief
Supplementary
Section 271 Provision of information
Section 272 Regulations as to procedure etc.
Section 273 Interpretation of Chapter
Chapter 3 VCT approvals
Giving of approval
Section 274 Requirements for the giving of approval
Section 275 Alternative requirements for the giving of approval
Section 276 Conditions relating to income
Section 277 The 15% holding limit condition
Section 278 Conditions relating to value of investments: general
Section 279 Conditions relating to value of investments: qualifying holdings
Section 280 Conditions relating to qualifying holdings and eligible shares
Section 280A The 70% qualifying holdings condition: disposal of holding
Withdrawal of approval
Section 281 Withdrawal of VCT approval of a company
Section 282 Withdrawal of VCT approval in cases for which provision made under section 280(3)
Supplementary
Section 283 Time as from which VCT approval has effect
Section 284 Power to make regulations as to procedure
Section 285 Interpretation of Chapter
Chapter 4 Qualifying holdings
Introduction
Section 286 Qualifying holdings: introduction
The requirements
Section 287 The maximum qualifying investment requirement
Section 288 The no guaranteed loan requirement
Section 289 The proportion of eligible shares requirement
Section 290 The trading requirement
Section 291 The carrying on of a qualifying activity requirement
Section 292 Ceasing to meet requirements because of administration or receivership
Section 292A The maximum amount raised annually through risk capital schemes requirement
Section 293 The use of the money raised requirement
Section 294 Further requirements as to the money raised by the investment in question
Section 295 The unquoted status requirement
Section 296 The control and independence requirement
Section 297 The gross assets requirement
Section 297A The number of employees requirement
Section 298 The qualifying subsidiaries requirement
Section 299 The property managing subsidiaries requirement
Definitions
Section 300 Meaning of “qualifying trade”
Section 301 Meaning of “qualifying 90% subsidiary”
Section 302 Meaning of “qualifying subsidiary”
Excluded activities
Section 303 Meaning of “excluded activities”
Section 304 Excluded activities: wholesale and retail distribution
Section 305 Excluded activities: leasing of ships
Section 306 Excluded activities: receipt of royalties and licence fees
Section 307 Excluded activities: property development
Section 307A Excluded activities: shipbuilding
Section 307B Excluded activities: producing coal
Section 307C Excluded activities: producing steel
Section 308 Excluded activities: hotels and comparable establishments
Section 309 Excluded activities: nursing homes and residential care homes
Section 310 Excluded activities: provision of services or facilities for another business
Supplementary
Section 311 Power to amend Chapter
Section 312 Winding up of the relevant company
Section 313 Interpretation of Chapter
Chapter 5 Powers: winding up and mergers of VCTs
Winding up
Section 314 Power to treat VCT-in-liquidation as VCT
Section 315 Power to treat conditions for VCT approval as met with respect to VCT-in-liquidation
Section 316 Power to make provision about distributions by VCT-in-liquidation
Section 317 Power to facilitate disposal to VCT by VCT-in-liquidation
Section 318 Power in respect of periods before and after winding up
Section 319 Sections 314 to 318: supplementary
Section 320 Meaning of “VCT-in-liquidation”
Mergers
Section 321 Power to facilitate mergers of VCTs
Section 322 Provision that may be made by regulations under section 321
Section 323 Meaning of “merger” and “successor company”
Supplementary
Section 324 Regulations under Chapter
Section 325 Interpretation of Chapter
Chapter 6 Supplementary and general
Acquisitions for restructuring purposes
Section 326 Restructuring to which section 327 applies
Section 327 Certain requirements of Chapter 4 to be treated as met
Section 328 Supplementary
Conversion of shares etc. and company reorganisations
Section 329 Conversion of convertible shares and securities
Section 330 Power to facilitate company reorganisations etc. involving exchange of shares
Supplementary
Section 331 Meaning of a company being “in administration” or “in receivership”
Section 332 Minor definitions etc.
Part 7 Community investment tax relief
Chapter 1 Introduction
CITR
Section 333 Meaning of “CITR”
Section 334 Eligibility for CITR
Section 335 Form and amount of CITR
Miscellaneous
Section 336 Meaning of “making an investment”
Section 337 Determination of “the invested amount”
Section 338 Meaning of “the 5 year period” and “the investment date”
Section 339 Overview of other Chapters of Part
Chapter 2 Accredited community development finance institutions
Section 340 Application and criteria for accreditation
Section 341 Terms and conditions of accreditation
Section 342 Period of accreditation
Section 343 Delegation of Secretary of State’s functions
Chapter 3 Qualifying investments
Section 344 Qualifying investments: introduction
Section 345 Conditions to be met in relation to loans
Section 346 Conditions to be met in relation to securities
Section 347 Conditions to be met in relation to shares
Section 348 Tax relief certificates
Section 349 No pre-arranged protection against risks
Chapter 4 General conditions
Section 350 No control of CDFI by investor
Section 351 Investor must have beneficial ownership
Section 352 No acquisition of share in partnership
Section 353 No tax avoidance purpose
Chapter 5 Claims for and attribution of CITR
Claims
Section 354 Loans: no claim after disposal or excessive repayments or receipts of value
Section 355 Securities or shares: no claim after disposal or excessive receipts of value
Section 356 No claim after loss of accreditation by the CDFI
Attribution
Section 357 Attribution: general
Section 358 Attribution: bonus shares
Chapter 6 Withdrawal or reduction of CITR
Introduction
Section 359 Overview of Chapter
Disposals
Section 360 Disposal of loan during 5 year period
Section 361 Disposal of securities or shares during 5 year period
Repayment of loans
Section 362 Repayment of loan capital during 5 year period
Receipts of value
Section 363 Value received by investor during 6 year period: loans
Section 364 Value received by investor during 6 year period: securities or shares
Section 365 Receipts of insignificant value to be added together
Section 366 When value is received
Section 367 The amount of value received
Section 368 Value received if there is more than one investment
Section 369 Effect of receipt of value on future claims for CITR
Section 370 Receipts of value by or from connected persons
CITR not due
Section 371 CITR subsequently found not to have been due
Manner of withdrawal or reduction
Section 372 Manner of withdrawal or reduction of CITR
Chapter 7 Supplementary and general
Miscellaneous
Section 373 Information to be provided by the investor
Section 374 Disclosure
Section 375 Nominees
Section 376 Application for postponement of tax pending appeal
Section 377 Identification of securities or shares on a disposal
Definitions
Section 378 Meaning of “issue of securities or shares”
Section 379 Meaning of “disposal”
Section 380 Construction of references to being “held continuously”
Section 381 Meaning of “associate”
Section 382 Minor definitions etc.
Part 8 Other reliefs
Chapter 1 Interest payments
The relief: introduction
Section 383 Relief for interest payments
Section 384 General restrictions on relief under Chapter
Section 384A Restriction on relief where arrangements minimise risk to borrower
Section 385 General provisions about loans
Section 386 Loans partly meeting requirements
Section 387 Exclusion of double relief etc.
Loans for plant or machinery
Section 388 Loan to buy plant or machinery for partnership use
Section 389 Eligibility requirements for interest on loans within section 388
Section 390 Loan to buy plant or machinery for employment use
Section 391 Eligibility requirements for interest on loans within section 390
Loans for interests in close companies
Section 392 Loan to buy interest in close company
Section 393 Eligibility requirements for interest on loans within section 392
Section 394 Meaning of “material interest” in section 393
Section 395 Meaning of “associate” in section 394
Loans for interests in employee-controlled companies
Section 396 Loan to buy interest in employee-controlled company
Section 397 Eligibility requirements for interest on loans within section 396
Loans for investing in partnerships
Section 398 Loan to invest in partnership
Section 399 Eligibility requirements for interest on loans within section 398
Section 400 Film partnerships
Loans for investing in co-operatives
Section 401 Loan to invest in co-operative
Section 402 Eligibility requirements for interest on loans within section 401
Loans for paying inheritance tax
Section 403 Loan to pay inheritance tax
Section 404 Eligibility requirements for interest on loans within section 403
Section 405 Carry back and forward of relief for interest on loans within section 403
General and supplementary
Section 406 Effect of recovery of capital in the case of some loans
Section 407 Events counting as recovery of capital for section 406
Section 408 Replacement loans
Section 409 Business successions between partnerships
Section 410 Other business successions and reorganisations
Section 411 Ineligibility of interest where business is occupation of commercial woodlands
Section 412 Information
Chapter 2 Gift aid
The relief
Section 413 Overview of Chapter
Section 414 Relief for gifts to charity
Section 415 Meaning of “grossed up amount”
Section 416 Meaning of “qualifying donation”
Section 417 Meaning of “benefits associated with a gift”
Restrictions on associated benefits
Section 418 Restrictions on associated benefits
Section 419 Gifts and benefits linked to periods of less than 12 months
Admission rights
Section 420 Disregard of certain admission rights
Section 421 Admission rights: supplementary
Disqualified overseas gifts
Section 422 Disqualified overseas gifts
Measures to ensure donor’s liability not less than tax treated as deducted
Section 423 Restriction of certain reliefs
Section 424 Charge to tax
Section 425 Total amount of income tax to which individual charged for a tax year
Election to carry back relief
Section 426 Election by donor: gift treated as made in previous tax year
Supplementary
Section 427 Meaning of “charged amount”
Section 428 Meaning of “gift aid declaration”
Section 429 Giving through self-assessment return
Section 430 “Charity” to include exempt bodies
Chapter 3 Gifts of shares, securities and real property to charities etc.
Entitlement to relief
Section 431 Relief for gifts of shares, securities and real property to charities etc.
Section 432 Meaning of “qualifying investment”
Section 433 Meaning of “qualifying interest in land”
Amount of relief
Section 434 The relievable amount
Section 435 Incidental costs of making disposal
Section 436 Consideration
Value of net benefit to charity
Section 437 Value of net benefit to charity
Section 438 Market value of qualifying investments
Section 439 Meaning of “disposal-related obligation”
Section 440 Meaning and amount of “disposal-related liability”
Special provisions about qualifying interests in land
Section 441 Certificate required from charity
Section 442 Qualifying interests in land held jointly
Section 443 Calculation of relievable amount where joint disposal of interest in land
Section 444 Disqualifying events
Supplementary
Section 445 Prohibition against double relief
Section 446 “Charity” to include exempt bodies
Chapter 4 Annual payments and patent royalties
Section 447 Overview of Chapter
Section 448 Relief for individuals
Section 449 Relief for other persons
Section 450 Other persons: payments ineligible for relief
Section 451 Special rule for persons affected by section 733 of ICTA
Section 452 The gross amount of a payment
Chapter 5 Qualifying maintenance payments
Section 453 Tax reduction for qualifying maintenance payments
Section 454 Meaning of “qualifying maintenance payment”
Section 455 Child support maintenance payments
Section 456 Payments under orders for recovery of benefit etc.
Chapter 6 Miscellaneous other reliefs
Payments for life insurance etc.
Section 457 Payments to trade unions
Section 458 Payments to police organisations
Section 459 Payments for benefit of family members
Section 460 Residence etc. of claimants
Patent royalty receipts
Section 461 Spreading of patent royalty receipts
Part 9 Special rules about settlements and trustees
Chapter 1 Introduction
Section 462 Overview of Part
Section 463 Interpretation of Part
Section 464 Scottish trusts
Chapter 2 General provision about settlements and trustees
Overview
Section 465 Overview of Chapter and interpretation
Settled property
Section 466 Meaning of “settled property” etc.
Settlors
Section 467 Meaning of “settlor” etc.
Section 468 Meaning of “disposable property”
Section 469 Person ceasing to be a settlor
Section 470 Transfers between settlements
Section 471 Identification of settlor following transfer covered by section 470
Section 472 Settlor where property becomes settled because of variation of will etc.
Section 473 Deceased person as settlor where variation of will etc.
Trustees
Section 474 Trustees of settlement to be treated as a single and distinct person
Section 475 Residence of trustees
Section 476 How to work out whether settlor meets condition C
Sub-funds
Section 477 Sub-fund elections under Schedule 4ZA to TCGA 1992
Regulations
Section 478 References to settled property etc. in regulations
Chapter 3 Special rates for trustees' income
Section 479 Trustees’ accumulated or discretionary income to be charged at special rates
Section 480 Meaning of “accumulated or discretionary income”
Section 481 Other amounts to be charged at special rates for trustees
Section 482 Types of amount to be charged at special rates for trustees
Section 483 Sums paid by personal representatives to trustees
Chapter 4 Trustees' expenses and special rates for trustees
Section 484 Trustees’ expenses to be set against trustees’ trust rate income
Section 485 Carry forward of unused expenses
Section 486 How allowable expenses are to be set against trust rate income
Section 487 Non-UK resident trustees
Chapter 5 Share incentive plans
Section 488 Application of section 479 to trustees of approved share incentive plans
Section 489 “The applicable period” in relation to shares
Section 490 Interpretation of Chapter
Chapter 6 Trustees' first slice of trust rate income
Section 491 Special rates not to apply to first slice of trustees’ trust rate income
Section 492 Cases where settlor has made more than one settlement
Chapter 7 Discretionary payments
Section 493 Discretionary payments by trustees
Section 494 Grossing up of discretionary payment and payment of income tax
Section 495 Statement about deduction of income tax
Section 496 Income tax charged on trustees
Section 497 Calculation of trustees’ tax pool
Section 498 Types of income tax for the purposes of section 497
Chapter 8 Trustees' expenses and beneficiary’s income
Section 499 Application of Chapter
Section 500 Restrictions on use of trustees’ expenses to reduce the beneficiary’s income
Section 501 Non-UK resident beneficiaries
Section 502 Meaning of “untaxed income” in section 501
Section 503 How beneficiary’s income is reduced
Chapter 9 Unauthorised unit trusts
Section 504 Treatment of income of unauthorised unit trust
Section 504A Treatment of capital expenditure of unauthorised unit trust
Section 505 Relief for trustees of unauthorised unit trust
Section 506 Special rules for trustees affected by section 733 of ICTA
Chapter 10 Heritage maintenance settlements
Introduction
Section 507 Overview of Chapter
Trustees' election in respect of income etc.
Section 508 Election by trustees
Section 509 Change of circumstances during a tax year
Absence of election and income treated as income of settlor: special rules
Section 510 Sums applied for property maintenance purposes
Section 511 Prevention of double taxation: reimbursement of settlor
Application of property for non-heritage purposes: charge to tax
Section 512 Charge to tax on some settlements
Section 513 Income charged
Section 514 Persons liable
Section 515 Rate of tax
Section 516 Transfer of property between settlements
Section 517 Exemption for income treated as income of settlor
Part 10 Special rules about charitable trusts etc.
Introduction
Section 518 Overview of Part
Section 519 Meaning of “charitable trust”
Gifts and other payments
Section 520 Gifts entitling donor to gift aid relief: income tax treated as paid
Section 521 Gifts entitling donor to gift aid relief: income tax liability and exemption
Section 522 Gifts of money from companies: income tax liability and exemption
Section 523 Payments from other charities: income tax liability and exemption
Other exemptions
Section 524 Exemption for profits etc. of charitable trades
Section 525 Meaning of “charitable trade”
Section 526 Exemption for profits etc. of small-scale trades
Section 527 Exemption from charges under provisions to which section 1016 applies
Section 528 Condition as to trading and miscellaneous incoming resources
Section 529 Exemption for profits from fund-raising events
Section 530 Exemption for profits from lotteries
Section 531 Exemption for property income etc.
Section 532 Exemption for savings and investment income
Section 533 Exemption for public revenue dividends
Section 534 Exemption for transactions in deposits
Section 535 Exemption for offshore income gains
Section 536 Exemption for certain miscellaneous income
Section 537 Exemption for income from estates in administration
Claims
Section 538 Requirement to make claim
Restrictions on exemptions
Section 539 Restrictions on exemptions
Section 540 The non-exempt amount
Section 541 Attributing income to the non-exempt amount
Section 542 How income is attributed to the non-exempt amount
Non-charitable expenditure
Section 543 Meaning of “non-charitable expenditure”
Section 544 Section 543: supplementary
Section 545 Section 543(1)(f): meaning of expenditure
Section 546 Section 543(1)(f): tax year in which certain expenditure treated as incurred
Section 547 Section 543(1)(f): payment to body outside the UK
Section 548 Section 543(1)(i) and (j): investments and loans
Substantial donor transactions
Section 549 Transactions with substantial donors
Section 550 Meaning of “relievable gift”
Section 551 Non-charitable expenditure in substantial donor transactions
Section 552 Adjustment if section 551(1) and (2) applied to single transaction
Section 553 Section 551: certain payments and benefits to be ignored
Section 554 Transactions: exceptions
Section 555 Donors: exceptions
Section 556 Connected charities
Section 557 Substantial donor transactions: supplementary
Approved charitable investments and loans
Section 558 Approved charitable investments
Section 559 Securities which are approved charitable investments
Section 560 Conditions to be met for some securities
Section 561 Approved charitable loans
Carry back of excess non-charitable expenditure
Section 562 Excess expenditure treated as non-charitable expenditure of earlier years
Section 563 Rules for attributing excess expenditure to earlier years
Section 564 Adjustments in consequence of section 562
Part 11 Manufactured payments and repos
Chapter 1 Introduction
Section 565 Overview of Part
Section 566 Meaning of “UK shares” and “UK securities”
Section 567 Meaning of [“overseas shares”,] “overseas securities” and “overseas dividend”
Section 568 Meaning of “stock lending arrangement”
Section 569 Meaning of “repo”
Section 570 Meaning of “buying back” securities etc.
Section 571 Meaning of “related” agreements
Chapter 2 Manufactured payments
Introduction
Section 572 Overview of Chapter
Section 572A Meaning of “avoidance arrangements”
Manufactured dividends on UK shares
Section 573 Manufactured dividends on UK shares
Section 574 Allowable deductions ...
Section 575 Allowable deductions: restriction on double-counting
Section 576 Manufactured dividends on UK shares: Real Estate Investment Trusts
Section 577 Statements about manufactured dividends
Manufactured interest on UK securities
Section 578 Manufactured interest on UK securities
Section 579 Allowable deductions ...
Section 580 Allowable deductions: restriction on double counting
Manufactured overseas dividends
Section 581 Manufactured overseas dividends
Section 581A Avoidance arrangements
Section 582 Powers about manufactured overseas dividends
Special cases
Section 583 Manufactured payments exceeding underlying payments
Section 584 Manufactured payments less than underlying payments
Section 585 Power to deal with other special cases
General regulation-making powers
Section 586 Powers about administrative provisions
Section 587 Power for manufactured payments to be eligible for relief
Section 588 Regulation-making powers: general
Interpretation
Section 589 Meaning of “gross amount”: interest and manufactured overseas dividends
Section 590 Meaning of “relevant withholding tax”
Section 591 Interpretation of other terms used in Chapter
Chapter 3 Tax credits: stock lending arrangements and repos
Stock lending arrangements
Section 592 No tax credits for borrower under stock lending arrangement
Repos
Section 593 No tax credits for interim holder under repo
Section 594 No tax credits for original owner under repo
Interpretation
Section 595 Meaning of “manufactured dividend”
Chapter 4 Deemed manufactured payments
Stock lending arrangements
Section 596 Deemed manufactured payments: stock lending arrangements
Section 597 Deemed interest: cash collateral under stock lending arrangements
Section 598 Cash collateral under stock lending arrangements: supplementary
Section 599 Sections 597 and 598: quasi-stock lending arrangements and quasi-cash collateral
Section 600 Meaning of “quasi-stock lending arrangements” and “quasi-cash collateral”
Repos
Section 601 Repo cases in which deeming rules apply
Section 602 Deemed manufactured payments: repos
Section 603 Deemed deductions of tax
Section 604 Deemed increase in repurchase price: price differences under repos
Section 605 Deemed increase in repurchase price: other income tax purposes
Interpretation
Section 606 Interpretation of Chapter
Chapter 5 Price differences under repos
Main tax treatment
Section 607 Treatment of price differences under repos
Section 608 Exceptions to section 607
Additional tax treatment
Section 609 Additional income tax consequences of price differences
Interpretation
Section 610 Repurchase price in deemed manufactured payment case
Power to modify
Section 611 Power to modify Chapter in non-arm’s length case
Chapter 6 Powers to modify repo provisions
Section 612 Non-standard repo cases
Section 613 Redemption arrangements
Section 614 Sections 612 and 613: supplementary
Part 12 Accrued income profits
Chapter 1 Introduction
Section 615 Overview of Part
Chapter 2 Accrued income profits and losses
Charge to tax
Section 616 Charge to tax on accrued income profits
Section 617 Income charged
Section 618 Person liable
Securities to which Chapter applies
Section 619 Meaning of “securities” and when securities are of the same kind
Transfers to which Chapter applies
Section 620 Transactions which are transfers: general
Section 621 Transferors and transferees
Section 622 Application of Chapter to different kinds of transfer
Section 623 Transfers with accrued interest
Section 624 Transfers without accrued interest
Section 625 Transfers with unrealised interest
Section 626 Transfers of variable rate securities
Section 627 Meaning of “variable rate securities”
Calculating accrued income profits and losses
Section 628 Making accrued income profits and losses: general rule
Section 629 Calculating accrued income profits and losses where section 628 applies
Section 630 Making accrued income profits: settlement day outside interest period
Section 631 Amount of accrued income profits where section 630 applies
The payments treated as made on transfers
Section 632 Payment on transfer with accrued interest
Section 633 Payment on transfer without accrued interest
Section 634 Payment on transfer with unrealised interest
Section 635 Payment on transfer of variable rate securities
Exception where there is a transfer to a legatee
Section 636 Exception where there is a transfer to a legatee
Relief for losses
Section 637 Accrued income losses treated as payments in next interest period
Excluded transferors and transferees
Section 638 Excluded persons: disregard of certain payments and transfers
Section 639 Small holdings: individuals
Section 640 Small holdings: personal representatives
Section 641 Small holdings: trustees of a disabled person’s trusts
Section 642 Traders
Section 643 Non-residents
Section 644 Individuals to whom the remittance basis applies
Section 645 Charitable trusts etc.
Section 646 Pension scheme trustees
Section 647 Makers of manufactured payments
Further transactions treated as transfers
Section 648 Strips of gilt-edged securities
Section 649 New securities issued with extra return
Section 650 Trading stock appropriations etc.
Section 651 Owner becoming entitled to securities as trustee
Section 652 Securities ceasing to be held on charitable trusts
Excluded transfers
Section 653 Stock lending
Section 654 Sale and repurchase arrangements
Section 655 Transfers under sale and repurchase arrangements
Section 656 Power to modify: non-standard sale and repurchase arrangements
Section 657 Power to modify: redemption arrangements
Section 658 Powers to modify: supplementary
Special rules about some calculations
Section 659 Transfers with or without accrued interest: interest in default
Section 660 Transfers with unrealised interest: interest in default
Section 661 Successive transfers with unrealised interest in default
Section 662 New securities issued with extra return: special rules about payments
Section 663 Transfers without accrued interest to makers of manufactured payments
Section 664 Foreign currency securities: sterling equivalent of payments on transfers
Section 665 Foreign currency securities: unrealised interest payable in foreign currency
Nominees and trustees
Section 666 Certain transfers by or to nominees or trustees treated as made by or to others
Section 667 Trustees’ accrued income profits treated as settlement income
Relief where transfer proceeds unremittable
Section 668 Relief for unremittable transfer proceeds: general
Section 669 Relief for unremittable transfer proceeds: section 630 profits
Section 670 Withdrawal of relief
Individuals to whom remittance basis applies
Section 670A Individuals to whom remittance basis applies
Interpretation
Section 671 Meaning of “interest”
Section 672 Meaning of “interest payment day”
Section 673 Meaning of “interest period”
Section 674 Meaning of “the settlement day”
Section 675 The holding of securities
Section 676 Nominal value of securities: general
Section 677 Nominal value: foreign currency securities
Chapter 3 Exemptions relating to interest on securities
Section 678 Exemptions relating to interest on securities: preliminary
Section 679 Interest on securities involving accrued income losses: general
Section 680 Interest on securities involving accrued income losses: foreign trustees
Section 681 Unrealised interest received by transferee after transfer
Part 13 Tax avoidance
Chapter 1 Transactions in securities
Introduction
Section 682 Overview of Chapter
Section 683 Meaning of “income tax advantage”
Person liable to counteraction of income tax advantages
Section 684 Person liable to counteraction of income tax advantage
Section 685 Exception where no tax avoidance object shown
Circumstances in which income tax advantages obtained or obtainable
Section 686 Abnormal dividends used for exemptions or reliefs (circumstance A)
Section 687 Deductions from profits obtained following distribution or dealings (circumstance B)
Section 688 Receipt of consideration representing company’s assets, future receipts or trading stock (circumstance C)
Section 689 Receipt of consideration in connection with relevant company distribution (circumstance D)
Section 690 Receipt of assets of relevant company (circumstance E)
Section 691 Meaning of “relevant company” in sections 689 and 690
Section 692 Abnormal dividends: general
Section 693 Abnormal dividends: the excessive return condition
Section 694 Abnormal dividends: the excessive accrual condition
Procedure for counteraction of income tax advantages
Section 695 Preliminary notification that section 684 may apply
Section 696 Opposed notifications: statutory declarations
Section 697 Opposed notifications: determinations by tribunal
Section 698 Counteraction notices
Section 699 Limit on amount assessed in section 689 and 690 cases
Section 700 Timing of assessments in section 690 cases
Clearance procedure and information powers
Section 701 Application for clearance of transactions
Section 702 Effect of clearance notification under section 701
Section 703 Power to obtain information
The tribunal
Section 704 The tribunal
Appeals
Section 705 Appeals against counteraction notices
Section 706 Rehearing by tribunal of appeal against counteraction notice
Section 707 Statement of case by tribunal for opinion of High Court or Court of Session
Section 708 Cases before High Court or Court of Session
Section 709 Effect of appeals against tribunal’s determination under section 706
Section 710 Appeals from High Court or Court of Session
Section 711 Proceedings in Northern Ireland
Supplementary
Section 712 Application of Chapter where individual within section 684 dies
Section 713 Interpretation of Chapter
Chapter 2 Transfer of assets abroad
Introduction
Section 714 Overview of Chapter
Section 715 Meaning of “relevant transaction”
Section 716 Meaning of “relevant transfer” and “transfer”
Section 717 Meaning of “assets” etc.
Section 718 Meaning of “person abroad” etc.
Section 719 Meaning of “associated operation”
Charge where power to enjoy income
Section 720 Charge to tax on income treated as arising under section 721
Section 721 Individuals with power to enjoy income as a result of relevant transactions
Section 722 When an individual has power to enjoy income of person abroad
Section 723 The enjoyment conditions
Section 724 Special rules where benefit provided out of income of person abroad
Section 725 Reduction in amount charged where controlled foreign company involved
Section 726 Non-UK domiciled individuals to whom remittance basis applies
Charge where capital sums received
Section 727 Charge to tax on income treated as arising under section 728
Section 728 Individuals receiving capital sums as a result of relevant transactions
Section 729 The capital receipt conditions
Section 730 Non-UK domiciled individuals to whom remittance basis applies
Charge where benefit received
Section 731 Charge to tax on income treated as arising under section 732
Section 732 Non-transferors receiving a benefit as a result of relevant transactions
Section 733 Income charged under section 731
Section 734 Reduction in amount charged: previous capital gains tax charge
Section 735 Non-UK domiciled individuals to whom remittance basis applies
Section 735A Section 735: relevant income and benefits relating to foreign deemed income
Exemptions: no tax avoidance purpose or genuine commercial transaction
Section 736 Exemptions: introduction
Section 737 Exemption: all relevant transactions post-4 December 2005 transactions
Section 738 Meaning of “commercial transaction”
Section 739 Exemption: all relevant transactions pre-5 December 2005 transactions
Section 740 Exemption: relevant transactions include both pre-5 December 2005 and post-4 December 2005 transactions
Section 741 Application of section 742 (partial exemption)
Section 742 Partial exemption where later associated operations fail conditions
General
Section 743 No duplication of charges
Section 744 Meaning of taking income into account in charging income tax for section 743
Section 745 Rates of tax applicable to income charged under sections 720 and 727 etc.
Section 746 Deductions and reliefs where individual charged under section 720 or 727
Section 747 Amounts corresponding to accrued income profits and related interest
Supplementary
Section 748 Power to obtain information
Section 749 Restrictions on particulars to be provided by solicitors
Section 750 Restrictions on particulars to be provided by banks
Section 751 [The tribunal’s] jurisdiction on appeals
Chapter 3 Transactions in land
Introduction
Section 752 Overview of Chapter
Section 753 Meaning of disposing of land
Section 754 Priority of other income tax provisions
Charge on gains from transactions in land
Section 755 Charge to tax on gains from transactions in land
Section 756 Income treated as arising when gains obtained from some land disposals
Section 757 Person obtaining gain
Section 758 Income charged
Section 759 Person liable
Section 760 Method of calculating gain
Further provisions relevant to the charge
Section 761 Transactions, arrangements, sales and realisations relevant for Chapter
Section 762 Tracing value
Section 763 Meaning of “another person”
Section 764 Valuations and apportionments
Exemptions
Section 765 Exemption: gain attributable to period before intention to develop formed
Section 766 Exemption: disposals of shares in companies holding land as trading stock
Section 767 Exemption: private residences
Recovery of tax
Section 768 Recovery of tax where consideration receivable by person not assessed
Section 769 Recovery of tax: certificates of tax paid etc.
Clearances and power to obtain information
Section 770 Clearance procedure
Section 771 Power to obtain information
Interpretation
Section 772 Interpretation of Chapter
Chapter 4 Sales of occupation income
Introduction
Section 773 Overview of Chapter
Section 774 Meaning of “occupation”
Section 775 Priority of other tax provisions
Charge on sale of occupation income
Section 776 Charge to tax on sale of occupation income
Section 777 Conditions for sections 778 and 779 to apply
Section 778 Income arising where capital amount other than derivative property or right obtained
Section 779 Income arising where derivative property or right obtained
Further provisions relevant to the charge
Section 780 Transactions, arrangements, sales and realisations relevant for Chapter
Section 781 Tracing value
Section 782 Meaning of “other person”
Section 783 Valuations and apportionments
Exemption for sales of going concerns
Section 784 Exemption for sales of going concerns
Section 785 Restriction on exemption: sales of future earnings
Recovery of tax
Section 786 Recovery of tax where consideration receivable by person not assessed
Section 787 Recovery of tax: certificates of tax paid etc.
Power to obtain information
Section 788 Power to obtain information
Interpretation
Section 789 Minor definitions
Chapter 5 Avoidance involving trading losses
Introduction
Section 790 Overview of Chapter
Individuals in partnership: recovery of excess relief
Section 791 Charge to tax on income treated as received under section 792
Section 792 Partners claiming excess sideways or capital gains relief
Section 793 Calculating the amount of income treated as received
Section 794 Meaning of “the total amount of trade losses claimed” etc.
Section 795 Meaning of “post-1 December 2004 loss”
Individuals claiming relief for film-related trading losses
Section 796 Charge to tax on income treated as received under section 797
Section 797 Individuals claiming sideways or capital gains relief for film-related losses
Section 798 Meaning of “non-taxable consideration” etc.
Section 799 Meaning of “disposal of a right of the individual to profits” etc.
Section 800 Meaning of “film-related losses” etc.
Section 801 Meaning of “capital contribution”
Section 802 Exclusion of amounts in calculating capital contribution by a partner
Section 803 Prohibition against double counting
Individuals in partnership claiming relief for licence-related trading losses
Section 804 Charge to tax on income treated as received under section 805
Section 805 Partners claiming relief for licence-related trading losses
Section 806 Calculation of amount of income treated as received by the individual
Section 807 Supplementary provision relating to calculation in section 806
Section 808 Meaning of “disposal of the licence” etc.
Section 809 Other definitions
Chapter 5A Transfers of income streams
Section 809AZA Application of Chapter
Section 809AZB Value of transferred income stream treated as income
Section 809AZC Exception: amount otherwise taxed
Section 809AZD Exception: certain annuities
Section 809AZE Exception: transfer by way of security
Section 809AZF Partnership shares
Section 809AZG Interpretation
Chapter 6 Avoidance involving leases of plant and machinery
Section 809ZA Plant and machinery leases: capital receipts to be treated as income
Section 809ZB Section 809ZA: interpretation
Section 809ZC Section 809ZA: lease of plant and machinery and other property
Section 809ZD Section 809ZA: expectation that relevant capital payment will not be paid
Part 14 Income tax liability: miscellaneous rules
Chapter A1 Remittance basis
Introduction
Section 809A Overview of Chapter
Application of remittance basis
Section 809B Claim for remittance basis to apply
Section 809C Claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply
Section 809D Application of remittance basis without claim where unremitted foreign income and gains under £2,000
Section 809E Application of remittance basis without claim: other cases
Effect of section 809B, 809D or 809E applying
Section 809F Effect on what is chargeable
Section 809G Claim for remittance basis: effect on allowances etc.
Section 809H Claim for remittance basis by long-term UK resident: charge
Section 809I Remittance basis charge: income and gains treated as remitted
Section 809J Section 809I: order of remittances
Remittance of income and gains: introduction
Section 809K Sections 809L to 809Z6: introduction
Remittance of income and gains: meaning of "remitted to the United Kingdom"
Section 809L Meaning of “remitted to the United Kingdom”
Section 809M Meaning of “relevant person”
Section 809N Section 809L: gift recipients, qualifying property and enjoyment
Section 809O Section 809L: dealings where there is a connected operation
Remittance of income and gains: amount remitted
Section 809P Section 809L: amount remitted
Remittance of income and gains: transfers from mixed funds
Section 809Q Sections 809L and 809P: transfers from mixed funds
Section 809R Section 809Q: composition of mixed fund
Section 809S Section 809Q: anti-avoidance
Remittance of income and gains: supplementary
Section 809T Foreign chargeable gains accruing on disposal made [otherwise] than for full consideration
Section 809U Deemed income or gains not to be regarded as remitted before time when they are treated as arising or accruing
Remittance of income and gains: property treated as not remitted
Section 809V Money paid to the Commissioners
Section 809W Consideration for certain services
Section 809X Exempt property
Section 809Y Property that ceases to be exempt property treated as remitted
Section 809Z Public access rule: general
Section 809Z1 Public access rule: relevant VAT relief
Section 809Z2 Personal use rule
Section 809Z3 Repair rule
Section 809Z4 Temporary importation rule
Section 809Z5 Notional remitted amount
Section 809Z6 Exempt property: other interpretation
Interpretation of Chapter
Section 809Z7 Interpretation of Chapter
Chapter 1 Limits on liability to income tax of non-UK residents
Introduction
Section 810 Overview of Chapter
Limit for non-UK resident individuals, trustees etc.
Section 811 Limit on liability to income tax of non-UK residents
Section 812 Case where limit not to apply
Section 813 Meaning of “disregarded income”
Section 814 Meaning of “disregarded transaction income”
Limit for non-UK resident companies
Section 815 Limit on liability to income tax of non-UK resident companies
Section 816 Meaning of “disregarded company income”
The independent broker conditions
Section 817 The independent broker conditions
The independent investment manager conditions
Section 818 The independent investment manager conditions
Section 819 Investment managers: the 20% rule
Section 820 Meaning of “qualifying period”
Section 821 Meaning of “relevant disregarded income”
Section 822 Meaning of “beneficial entitlement”
Section 823 Treatment of transactions where requirements of 20% rule not met
Section 824 Application of 20% rule to collective investment schemes
Supplementary
Section 825 Meaning of “disregarded savings and investment income”
Section 826 Meaning of “disregarded annual payments”
Section 827 Meaning of “investment manager” and “investment transaction”
Section 828 Transactions through brokers and investment managers
Chapter 1A Exemption for persons not domiciled in United Kingdom
Section 828A Introduction
Section 828B Conditions to be met
Section 828C The exemption
Section 828D Interpretation of Chapter
Chapter 2 Residence
Section 829 Residence of individuals temporarily abroad
Section 830 Residence of individuals working abroad
Section 831 Foreign income of individuals in the United Kingdom for temporary purpose
Section 832 Employment income of individuals in the United Kingdom for temporary purpose
Section 833 Visiting forces and staff of designated allied headquarters
Section 834 Residence of personal representatives
Section 835 Residence rules for trustees …
Section 835A Residence of companies
Chapter 3 Jointly held property
Section 836 Jointly held property
Section 837 Jointly held property: declarations of unequal beneficial interests
Chapter 4 Other miscellaneous rules
Section 838 Local authorities and local authority associations
Section 839 Issue departments of the Reserve Bank of India and the State Bank of Pakistan
Section 840 Government securities held by non-UK resident central banks
Section 841 Official agents of Commonwealth countries etc.
Section 842 European Economic Interest Groupings
Section 843 Restriction of deductions for annual payments
Section 844 Letters patent etc: exempting provisions
Section 845 Extra return to be treated as interest etc.
Section 846 Interpretation of section 845
Part 15 Deduction of income tax at source
Chapter 1 Introduction
Section 847 Overview of Part
Section 848 Income tax deducted at source treated as income tax paid by recipient
Section 849 Interaction with other Income Tax Acts provisions
Chapter 2 Deduction by deposit-takers and building societies
Introduction
Section 850 Overview of Chapter
Duty to deduct sums representing income tax
Section 851 Duty to deduct sums representing income tax
Section 852 Power to make regulations disapplying section 851
Deposit-takers and relevant investments
Section 853 Meaning of “deposit-taker”
Section 854 Power to prescribe persons as deposit-takers
Section 855 Meaning of “investment” and “deposit”
Section 856 Investments which are relevant investments
Section 857 Investments to be treated as being or as not being relevant investments
Investments which are not relevant investments: non-UK resident beneficiaries
Section 858 Declarations of non-UK residence: individuals
Section 859 Declarations of non-UK residence: Scottish partnerships
Section 860 Declarations of non-UK residence: personal representatives
Section 861 Declarations of non-UK residence: settlements
Section 862 Inspection of declarations
Other investments which are not relevant investments
Section 863 General client account deposits
Section 864 Qualifying uncertificated eligible debt security units
Section 865 Qualifying certificates of deposit
Section 866 Qualifying time deposits
Section 867 Lloyd’s premium trust funds
Section 868 Investments held outside the United Kingdom
Section 869 Sale and repurchase of securities
Section 870 Other investments
Supplementary
Section 871 Power to make regulations to give effect to Chapter
Section 872 Power to make orders amending Chapter
Section 873 Discretionary or accumulation settlements
Chapter 3 Deduction from certain payments of yearly interest
Duty to deduct sums representing income tax
Section 874 Duty to deduct from certain payments of yearly interest
Exceptions from duty to deduct
Section 875 Interest paid by building societies
Section 876 Interest paid by deposit-takers
Section 877 UK public revenue dividends
Section 878 Interest paid by banks
Section 879 Interest paid on advances from banks
Section 880 Interest paid on advances from building societies
Section 881 National Savings Bank interest
Section 882 Quoted Eurobond interest
Section 883 Interest on loan to buy life annuity
Section 884 Relevant foreign income
Section 885 Authorised persons dealing in financial instruments
Section 886 Interest paid by recognised clearing houses etc.
Section 887 Industrial and provident society payments
Section 888 Statutory interest
Chapter 4 Deduction from payments in respect of building society securities
Section 889 Payments in respect of building society securities
Chapter 5 Deduction from payments of UK public revenue dividends
Introduction
Section 890 Overview of Chapter
Section 891 Meaning of “UK public revenue dividend”
Duty to deduct sums representing income tax
Section 892 Duty to deduct from certain UK public revenue dividends
Payments which are payable gross
Section 893 Payments of UK public revenue dividends which are payable gross
Section 894 Treasury directions
Deduction at source applications
Section 895 Deduction at source application
Section 896 Withdrawal of application
Regulations
Section 897 Power to make regulations
Chapter 6 Deduction from annual payments and patent royalties
Introduction
Section 898 Overview of Chapter
Section 899 Meaning of “qualifying annual payment”
Duty to deduct from annual payments
Section 900 Deduction from commercial payments made by individuals
Section 901 Deduction from annual payments made by other persons
Section 902 Meaning of “applicable rate” in section 901
Duty to deduct from patent royalties
Section 903 Deduction from patent royalties
Supplementary
Section 904 Annual payments for dividends or non-taxable consideration
Section 905 Interpretation of Chapter
Chapter 7 Deduction from other payments connected with intellectual property
Certain royalties etc. where usual place of abode of owner is abroad
Section 906 Certain royalties etc. where usual place of abode of owner is abroad
Section 907 Meaning of “relevant intellectual property right”
Section 908 Royalty payments etc. made through UK resident agents
Section 909 Royalty payments: further provision
Proceeds of a sale of patent rights
Section 910 Proceeds of a sale of patent rights: payments to non-UK residents
Chapter 8 Chapters 6 and 7: special provision in relation to royalties
Deduction at special rates
Section 911 Double taxation arrangements: deduction at treaty rate
Section 912 Power to make directions disapplying section 911
Section 913 Interpretation of sections 911 and 912
Discretion to make payments gross
Section 914 EU companies: discretion to make payment gross
Section 915 Power to make directions disapplying section 914
Section 916 Duty of payee to notify if payment not exempt
Section 917 Supplementary
Chapter 9 Manufactured payments
Manufactured dividends
Section 918 Manufactured dividends on UK shares: Real Estate Investment Trusts
Manufactured interest
Section 919 Manufactured interest on UK securities: payments by UK residents etc.
Section 920 Foreign payers of manufactured interest: the reverse charge
Section 921 Cases where interest on underlying securities paid gross
Manufactured overseas dividends
Section 922 Manufactured overseas dividends: payments by UK residents etc.
Section 923 Foreign payers of manufactured overseas dividends: the reverse charge
Section 924 Power to reduce section 923 liability
Section 925 Power to provide set-off entitlement
Supplementary
Section 926 Interpretation of Chapter
Section 927 Regulation-making powers: general
Chapter 10 Deduction from non-commercial payments by companies
Section 928 Chargeable payments connected with exempt distributions
Chapter 11 Payments between companies etc: exception from duties to deduct
Introduction
Section 929 Overview of Chapter
Exception from duties to deduct for excepted payments
Section 930 Exception from duties to deduct sums representing income tax
Section 931 Power to make directions disapplying section 930
Section 932 Meaning of “qualifying partnership”
Excepted payments
Section 933 UK resident companies
Section 934 Non-UK resident companies
Section 935 PEP and ISA managers
Section 936 Recipients who are to be paid gross
Section 937 Partnerships
Incorrect belief that payment is an excepted payment
Section 938 Consequences of reasonable but incorrect belief
Chapter 12 Funding bonds
Section 939 Duty to retain bonds where issue treated as payment of interest
Section 940 Exception from duty to retain bonds
Section 940A No appropriate bond or combination of bonds
Chapter 13 Unauthorised unit trusts
Section 941 Deemed payments to unit holders and deemed deductions of income tax
Section 942 Income tax to be collected from trustees
Section 943 Calculation of trustees’ income pool
Chapter 14 Tax avoidance: directions for duty to deduct to apply
Section 944 Directions for deduction from payments to non-UK residents
Chapter 15 Collection: deposit-takers, building societies and certain companies
Introduction
Section 945 Overview of Chapter
Section 946 Payments within this section
Section 947 Return periods
Section 948 Meaning of “accounting period”
Returns of income tax
Section 949 Payments in an accounting period
Section 950 Payments otherwise than in an accounting period
Collection and payment of income tax
Section 951 Collection and payment of income tax
Set-off
Section 952 Conditions for a set-off claim
Section 953 How a set-off claim works
Section 954 Proceedings begun after a set-off claim is made
Section 955 Proceedings begun before a set-off claim is made
Assessments and errors
Section 956 Assessments where section 946 payment included in return
Section 957 Assessments in other cases
Section 958 Payer’s duty to deliver amended return
Section 959 Application of Income Tax Acts provisions about time limits for assessments
Section 960 Further provisions about assessments
Supplementary
Section 961 Relationship between Chapter and Income Tax Acts powers
Section 962 Power to make regulations modifying Chapter
Chapter 16 Collection: certain payments by other persons
Section 963 Collection of income tax on certain payments by other persons
Chapter 17 Collection through self-assessment return
Section 964 Collection through self-assessment return
Chapter 18 Other regimes involving the deduction of income tax at source
Visiting performers
Section 965 Overview of sections 966 to 970
Section 966 Duty to deduct and account for sums representing income tax
Section 967 Calculation of sums representing income tax
Section 968 Treatment of sums representing income tax
Section 969 Regulations
Section 970 Supplementary
Non-resident landlords
Section 971 Income tax due in respect of income of non-resident landlords
Section 972 Regulations under section 971
Real Estate Investment Trusts
Section 973 Income tax due in respect of distributions
Section 974 Regulations under section 973
Chapter 19 General
Supplementary
Section 975 Statements about deduction of income tax
Section 976 Arrangements for payments of interest less tax or at specified net rate
Section 977 Payments to companies
Section 978 Application to public departments
Section 979 Designated international organisations: exceptions from duties to deduct
Section 979A FSCS payments representing interest
Section 980 Derivative contracts: exception from duties to deduct
Section 981 Foreign currency securities etc: exception from duties to deduct
Section 982 Income tax is calculated by reference to gross amounts
Interpretation
Section 983 Meaning of “deposit”
Section 984 Meaning of “financial instrument”
Section 985 Meaning of “qualifying certificate of deposit”
Section 986 Meaning of “qualifying uncertificated eligible debt security unit”
Section 987 Meaning of “quoted Eurobond”
Part 16 Income Tax Acts definitions etc.
Chapter 1 Definitions
Section 988 Overview of Chapter
Section 989 The definitions
Section 990 Meaning of “Act”
Section 991 Meaning of “bank”
Section 992 Meaning of “company”
Section 993 Meaning of “connected” persons
Section 994 Meaning of “connected” persons: supplementary
Section 995 Meaning of “control”
Section 996 Meaning of “farming” and related expressions
Section 997 Meaning of “generally accepted accounting practice” and related expressions
Section 998 Meaning of “grossing up”
Section 999 Meaning of “local authority”
Section 1000 Meaning of “local authority association”
Section 1001 Meaning of “offshore installation”
Section 1002 Regulations about the meaning of “offshore installation”
Section 1003 Meaning of “oil and gas exploration and appraisal”
Section 1004 Meaning of “property investment LLP”
Section 1005 Meaning of “recognised stock exchange” etc.
Section 1006 Meaning of “research and development”
Section 1007 Meaning of “unit trust scheme”
Chapter 2 Other Income Tax Acts provisions
Section 1008 Scotland
Section 1009 Sources of income within the charge to income tax or corporation tax
Section 1010 Application of Income Tax Acts to recognised investment exchanges
Section 1011 References to married persons, or civil partners, living together
Section 1012 Relationship between rules on highest part of total income
Section 1013 Territorial sea of the United Kingdom
Section 1014 Orders and regulations
Section 1015 Territorial scope of charges under certain provisions to which section 1016 applies
Section 1016 Table of provisions to which this section applies
Part 17 Definitions for purposes of Act and final provisions
Definitions for the purposes of Act
Section 1017 Abbreviated references to Acts
Section 1018 “Act” to include Scottish and Northern Ireland legislation in some cases
Section 1019 Meaning of “certificate of deposit”
Section 1020 Claims and elections
Section 1021 Application of definitions of “connected” persons and “control”
Section 1022 Meaning of “debenture”
Section 1023 Meaning of “double taxation arrangements”
Section 1024 Meaning of “gilt-edged securities”
Section 1025 Meaning of “modified net income”
Section 1026 Meaning of “non-qualifying income” for the purposes of section 1025
Final provisions
Section 1027 Minor and consequential amendments
Section 1028 Power to make consequential provision
Section 1029 Power to undo changes
Section 1030 Transitional provisions and savings
Section 1031 Repeals and revocations
Section 1032 Index of defined expressions
Section 1033 Extent
Section 1034 Commencement
Section 1035 Short title
Schedules
Schedule 1 Minor and consequential amendments
Part 1 Income and Corporation Taxes Act 1988
Part 2 Other enactments
Part 3 Amendment having effect in relation to shares issued after 5 April 2007
Schedule 2 Transitionals and savings
Part 1 General provisions
Part 2 Changes in the law
Part 3 Rates at which income tax is charged
Part 4 Personal reliefs
Part 5 Losses (except losses on disposal of shares)
Part 6 Losses on disposal of shares
Part 7 Enterprise investment scheme
Part 8 Venture capital trusts
Part 9 Other reliefs
Part 10 Special rules about settlements and trustees
Part 11 Special rules about charitable trusts etc.
Part 12 Manufactured payments and repos
Part 13 Accrued income profits
Part 14 Tax avoidance
Part 15 Deduction of income tax at source
Part 16 Other provisions
Schedule 3 Repeals and revocations
Part 1 Repeals and revocations: general
Part 2 Repeals having effect in relation to shares issued after 5 April 2007
Schedule 4 Index of defined expressions