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Income Tax (Trading and Other Income) Act 2005 | Consolidated to 2009

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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 Act
Section 2 Overview of priority rules
Part 2 Trading income
Chapter 1 Introduction
Section 3 Overview of Part 2
Section 4 Provisions which must be given priority over Part 2
Chapter 2 Income taxed as trade profits
Charge to tax on trade profits
Section 5 Charge to tax on trade profits
Section 6 Territorial scope of charge to tax
Section 7 Income charged
Section 8 Person liable
Trades and trade profits
Section 9 Farming and market gardening
Section 10 Commercial occupation of land other than woodlands
Section 11 Commercial occupation of woodlands
Section 12 Profits of mines, quarries and other concerns
Section 13 Visiting performers
Section 14 Visiting performers: supplementary
Section 15 Divers and diving supervisors
Section 16 Oil extraction and related activities
Starting and ceasing to trade
Section 17 Effect of becoming or ceasing to be a UK resident
Section 18 Effect of company starting or ceasing to be within charge to income tax
Trading income and property income
Section 19 Tied premises
Section 20 Caravan sites where trade carried on
Section 21 Surplus business accommodation
Section 22 Payments for wayleaves
Rent-a-room and foster-care relief
Section 23 Rent-a-room and foster-care relief
Chapter 3 Trade profits: basic rules
Section 24 Professions and vocations
Section 25 Generally accepted accounting practice
Section 26 Losses calculated on same basis as profits
Section 27 Receipts and expenses
Section 28 Items treated under CAA 2001 as receipts and expenses
Section 29 Interest
Section 30 Animals kept for trade purposes
Section 31 Relationship between rules prohibiting and allowing deductions
Chapter 4 Trade profits: rules restricting deductions
Introduction
Section 32 Professions and vocations
Capital expenditure
Section 33 Capital expenditure
Wholly and exclusively and losses rules
Section 34 Expenses not wholly and exclusively for trade and unconnected losses
Bad and doubtful debts
Section 35 Bad and doubtful debts
Unpaid remuneration
Section 36 Unpaid remuneration
Section 37 Unpaid remuneration: supplementary
Employee benefit contributions
Section 38 Restriction of deductions
Section 39 Making of “employee benefit contributions”
Section 40 Provision of qualifying benefits
Section 41 Timing and amount of certain qualifying benefits
Section 42 Provision or payment out of employee benefit contributions
Section 43 Profits calculated before end of 9 month period
Section 44 Interpretation of sections 38 to 44
Business entertainment and gifts
Section 45 Business entertainment and gifts: general rule
Section 46 Business entertainment: exceptions
Section 47 Business gifts: exceptions
Car or motor cycle hire
Section 48 Car ... hire
Section 49 Car ... hire: supplementary
Section 50 Hiring cars (but not motor cycles) with low carbon dioxide emissions
Section 50A Short-term hiring in and long-term hiring out
Section 50B Connected persons: application of section 48
Patent royalties
Section 51 Patent royalties
Interest payments
Section 52 Exclusion of double relief for interest
Social security contributions
Section 53 Social security contributions
Penalties, interest and VAT surcharges
Section 54 Penalties, interest and VAT surcharges
Crime-related payments
Section 55 Crime-related payments
Integral features
Section 55A Expenditure on integral features
Chapter 5 Trade profits: rules allowing deductions
Introduction
Section 56 Professions and vocations
Pre-trading expenses
Section 57 Pre-trading expenses
Subsistence expenses
Section 57A Expenses incurred by traders on food and drink
Incidental costs of obtaining finance
Section 58 Incidental costs of obtaining finance
Section 59 Convertible loans and loan stock etc.
Tenants under taxed leases
Section 60 Tenants under taxed leases: introduction
Section 61 Tenants occupying land for purposes of trade treated as incurring expenses
Section 62 Limit on deductions if tenant entitled to mineral extraction allowance
Section 63 Tenants dealing with land as property employed for purposes of trade
Section 64 Restrictions on section 61 expenses: lease premium receipts
Section 65 Restrictions on section 61 expenses: lease of part of premises
Section 66 Corporation tax receipts treated as taxed receipts [under ICTA]
Section 67 Restrictions on section 61 expenses: corporation tax receipts [under ICTA]
Renewals
Section 68 Replacement and alteration of trade tools
Payments for restrictive undertakings
Section 69 Payments for restrictive undertakings
Seconded employees
Section 70 Employees seconded to charities and educational establishments
Section 71 Educational establishments
Contributions to agents' expenses
Section 72 Payroll deduction schemes: contributions to agents’ expenses
Counselling and retraining expenses
Section 73 Counselling and other outplacement services
Section 74 Retraining courses
Section 75 Retraining courses: recovery of tax
Redundancy payments etc.
Section 76 Redundancy payments and approved contractual payments
Section 77 Payments in respect of employment wholly in employer’s trade
Section 78 Payments in respect of employment in more than one capacity
Section 79 Additional payments
Section 79A Additional payments: change in the persons carrying on the trade
Section 80 Payments made by the Government
Personal security expenses
Section 81 Personal security expenses
Contributions to local enterprise organisations or urban regeneration companies
Section 82 Contributions to local enterprise organisations or urban regeneration companies
Section 83 Meaning of “local enterprise organisation”
Section 84 Approval of local enterprise agencies
Section 85 Supplementary provisions with respect to approvals
Section 86 Meaning of “urban regeneration company”
Scientific research
Section 87 Expenses of research and development
Section 88 Payments to research associations, universities etc.
Expenses connected with patents, designs and trade marks
Section 89 Expenses connected with patents
Section 90 Expenses connected with designs or trade marks
Export Credits Guarantee Department
Section 91 Payments to Export Credits Guarantee Department
Expenses connected with foreign trades
Section 92 Expenses connected with foreign trades
Section 93 Allocation of expenses
Section 94 Family expenses
Chapter 6 Trade profits: receipts
Introduction
Section 95 Professions and vocations
Capital receipts
Section 96 Capital receipts
Debts released
Section 97 Debts incurred and later released
Amounts received following earlier cessation
Section 98 Acquisition of trade: receipts from transferor’s trade
Reverse premiums
Section 99 Reverse premiums
Section 100 Excluded cases
Section 101 Tax treatment of reverse premiums
Section 102 Arrangements not at arm’s length
Section 103 Connected persons and property arrangements
Assets of mutual concerns
Section 104 Distribution of assets of mutual concerns
Industrial development grants
Section 105 Industrial development grants
Proceeds of insurance etc.
Section 106 Sums recovered under insurance policies etc.
Chapter 7 Trade profits: gifts to charities etc.
Section 107 Professions and vocations
Section 108 Gifts of trading stock to charities etc.
Section 109 Receipt by donor or connected person of benefit attributable to certain gifts
Section 110 Meaning of “designated educational establishment”
Chapter 8 Trade profits: herd basis rules
Introduction
Section 111 Election for application of herd basis rules
Section 112 Meaning of “animal”, “herd”, “production herd” etc.
Section 113 Other interpretative provisions
The herd basis rules
Section 114 Initial cost of herd and value of herd
Section 115 Addition of animals to herd
Section 116 Replacement of animals in herd
Section 117 Amount of receipt if old animal slaughtered under disease control order
Section 118 Sale of animals from herd
Section 119 Sale of whole or substantial part of herd
Section 120 Acquisition of new herd begun within 5 years of sale
Section 121 Section 120: sale for reasons outside farmer’s control
Section 122 Replacement of part sold begun within 5 years of sale
Section 123 Section 122: sale for reasons outside farmer’s control
Elections
Section 124 Herd basis elections
Section 125 Five year gap in which no production herd kept
Section 126 Slaughter under disease control order
Preventing abuse of the herd basis rules
Section 127 Preventing abuse of the herd basis rules
Supplementary
Section 128 Information if election made
Section 129 Further assessment etc. if herd basis rules apply
Chapter 9 Trade profits: sound recordings
Introduction
Section 130 Expenditure to which this Chapter applies
Section 131 Meaning of “film” and related expressions
Section 132 Meaning of “original master version” and “certified master version”
Section 133 Meaning of “relevant period”
Expenditure treated as revenue in nature
Section 134 Expenditure treated as revenue in nature
Rules for allocating expenditure
Section 135 Allocation of production or acquisition expenditure to relevant periods
Certified master versions: special rules for allocating expenditure
Section 136 Application of provisions about certified master versions
Section 137 Certified master versions: preliminary expenditure
Section 138 Certified master versions: production expenditure
Section 138A Certified master versions: acquisition expenditure
Certified master versions: limited-budget films
Section 139 Certified master versions: production expenditure on limited-budget films
Section 140 Certified master versions: acquisition expenditure on limited-budget films
Interpretation of sections 138 to 140
Section 140A “Disqualifying deduction”
Section 141 “Total production expenditure in respect of the original master version”
Section 142 When expenditure is incurred
Deferred income agreements
Section 142A Deferred income agreements which exist when deduction made
Section 142B Meaning of “deferred income agreement in respect of a film”
Section 142C Deferred income agreements entered into after deduction made
Section 142D Meaning of the “net excess relief”
Section 142E Sections 142A to 142D: time of entry into an agreement
Election for sections 134 to 140 not to apply
Section 143 Election for sections 134 to 140 not to apply
Supplementary
Section 144 Meaning of “genuinely intended for theatrical release”
Chapter 10 Trade profits: certain telecommunication rights
Section 145 Professions and vocations
Section 146 Meaning of “relevant telecommunication right”
Section 147 Expenditure and receipts treated as revenue in nature
Section 148 Credits or debits arising from revaluation
Chapter 10A Leases of plant or machinery: special rules for long funding leases
Lessors under long funding finance leases
Section 148A Lessor under long funding finance lease: rental earnings
Section 148B Lessor under long funding finance lease: exceptional items
Section 148C Lessor under long funding finance lease making termination payment
Lessors under long funding operating leases
Section 148D Lessor under long funding operating lease: periodic deduction
Section 148E Long funding operating lease: lessor’s additional expenditure
Section 148F Lessor under long funding operating lease: termination of lease
Lessors under long funding finance or operating leases: avoidance etc.
Section 148FA Cases where ss 148A to 148F do not apply: plant or machinery held as trading stock
Section 148FB Cases where ss 148A to 148F do not apply: lessor also lessee under non-long funding lease
Section 148FC Cases where ss 148A to 148F do not apply: other avoidance
Section 148FD Cases where ss 148A to 148F do not apply: films
Lessees under long funding finance leases
Section 148G Lessee under long funding finance lease: limit on deductions
Section 148H Lessee under long funding finance lease: termination
Lessees under long funding operating leases
Section 148I Lessee under long funding operating lease
Interpretation of this Chapter
Section 148J Interpretation of Chapter 10A
Chapter 11 Trade profits: other specific trades
Dealers in securities etc.
Section 149 Taxation of amounts taken to reserves
Section 150 Conversion etc. of securities held as circulating capital
Section 151 Exchanges of gilts for gilt strips
Section 152 Consolidation of gilt strips
Section 153 Meaning of “gilt-edged security” and “strip”
Section 154 Regulations for determining market value of securities or strips
Persons authorised for purposes of FISMA 2000
Section 155 Levies and repayments under FISMA 2000
Dealers in land etc.
Section 156 Purchase or sale of woodlands
Section 157 Relief in respect of mineral royalties
Section 158 Lease premiums etc: reduction of receipts
Ministers of religion
Section 159 Ministers of religion
Barristers and advocates
Section 160 Alternative basis of calculation in early years of practice
Mineral exploration and access
Section 161 Mineral exploration and access
Persons liable to pool betting duty
Section 162 Payments by persons liable to pool betting duty
Intermediaries treated as making employment payments
Section 163 Deduction for deemed employment payment
Section 164 Special rules for partnerships
Managed service companies
Section 164A Deduction for deemed employment payments
Waste disposal
Section 165 Deduction for site preparation expenditure
Section 166 Allocation of site preparation expenditure
Section 167 Site preparation expenditure: supplementary
Section 168 Site restoration payments
Cemeteries and crematoria
Section 169 Cemeteries and crematoria: introduction
Section 170 Deduction for capital expenditure
Section 171 Allocation of ancillary capital expenditure
Section 172 Exclusion of expenditure met by subsidies
Chapter 11A Trade profits: changes in trading stock
Introduction
Section 172A Meaning of “trading stock”
Transfers of trading stock between trade and trader
Section 172B Trading stock appropriated by trader
Section 172C Trading stock supplied by trader
Other disposals not made in the course of trade
Section 172D Disposals not made in the course of trade
Section 172E Acquisitions not made in the course of trade
Relationship with transfer pricing rules
Section 172F Transfer pricing rules to take precedence
Chapter 12 Trade profits: valuation of stock and work in progress on cessation of trade
Valuation of trading stock
Section 173 Valuation of trading stock on cessation
Section 174 Meaning of “trading stock”
Section 175 Basis of valuation of trading stock
Section 176 Sale basis of valuation: sale to unconnected person
Section 177 Sale basis of valuation: sale to connected person
Section 178 Sale basis of valuation: election by connected persons
Section 179 Connected persons
Section 180 Cost to buyer of stock valued on sale basis of valuation
Section 181 Meaning of “sale” and related expressions
Valuation of work in progress
Section 182 Valuation of work in progress on cessation
Section 183 Meaning of “work in progress”
Section 184 Basis of valuation of work in progress
Section 185 Election for valuation at cost
Supplementary
Section 186 Determination of questions …
Chapter 13 Deductions from profits: unremittable amounts
Section 187 Professions and vocations
Section 188 Application of Chapter
Section 189 Relief for unremittable amounts
Section 190 Restrictions on relief
Section 191 Withdrawal of relief
Chapter 14 Disposal and acquisition of know-how
Section 192 Meaning of “know-how” etc.
Section 193 Disposal of know-how if trade continues to be carried on
Section 194 Disposal of know-how as part of disposal of all or part of a trade
Section 195 Seller controlled by buyer etc.
Chapter 15 Basis periods
Introduction
Section 196 Professions and vocations
Accounting date
Section 197 Meaning of “accounting date”
The normal rules
Section 198 General rule
Section 199 First tax year
Section 200 Second tax year
Section 201 Tax year in which there is no accounting date
Section 202 Final tax year
Apportionment of profits
Section 203 Apportionment etc. of profits to basis periods
Overlap profits and losses
Section 204 Meaning of “overlap period” and “overlap profit”
Section 205 Deduction for overlap profit in final tax year
Section 206 Restriction on bringing losses into account twice
Section 207 Treatment of business start-up payments received in an overlap period
Rules where first accounting date shortly before end of tax year
Section 208 When the late accounting date rules apply
Section 209 Rule if there is an accounting date
Section 210 Rules if there is no accounting date
Slight variations in accounting date
Section 211 Treating middle date as accounting date
Section 212 Consequence of treating middle date as accounting date
Section 213 Circumstances in which middle date not treated as accounting date
Special rules if accounting date changes
Section 214 When a change of accounting date occurs
Section 215 Change of accounting date in third tax year
Section 216 Change of accounting date in later tax year
Section 217 Conditions for basis period to end with new accounting date
Section 218 Commercial reasons for change of accounting date
Section 219 The year after an ineffective change of accounting date
Section 220 Deduction for overlap profit on change of accounting date
Chapter 16 Averaging profits of farmers and creative artists
Section 221 Claim for averaging of fluctuating profits
Section 222 Circumstances in which claim may be made
Section 223 Adjustment of profits
Section 224 Effect of adjustment
Section 225 Effect of later adjustment of profits
Chapter 17 Adjustment income
Introduction
Section 226 Professions and vocations
Adjustment on change of basis
Section 227 Application of Chapter
Section 228 Adjustment income and adjustment expense
Section 229 Income charged
Section 230 Person liable
Section 231 Calculation of the adjustment
Treatment of adjustment income and adjustment expense
Section 232 Treatment of adjustment income
Section 233 Treatment of adjustment expense
Expenses previously brought into account
Section 234 No adjustment for certain expenses previously brought into account
Realising or writing off assets
Section 235 Cases where adjustment not required until assets realised or written off
Mark to market
Section 236 Change from realisation basis to mark to market
Section 237 Election for spreading if section 236 applies
Spreading of adjustment income: barristers and advocates
Section 238 Spreading on ending of exemption for barristers and advocates
Section 239 Election to accelerate charge under section 238
Supplementary
Section 240 Liability of personal representatives if person liable dies
Chapter 18 Post-cessation receipts
Introduction
Section 241 Professions and vocations
Charge to tax on post-cessation receipts
Section 242 Charge to tax on post-cessation receipts
Section 243 Extent of charge to tax
Section 244 Income charged
Section 245 Person liable
Meaning of “post-cessation receipts”
Section 246 Basic meaning of “post-cessation receipt”
Section 247 Other rules about what counts as post-cessation receipts
Sums treated as post-cessation receipts
Section 248 Debts paid after cessation
Section 249 Debts released after cessation
Section 250 Receipts relating to post-cessation expenditure
Section 251 Transfer of rights if transferee does not carry on trade
Sums that are not post-cessation receipts
Section 252 Transfer of trading stock or work in progress
Section 253 Lump sums paid to personal representatives for copyright etc.
Deductions
Section 254 Allowable deductions
Section 255 Further rules about allowable deductions
Reliefs
Section 256 Treatment of post-cessation receipts
Section 257 Election to carry back
Chapter 19 Supplementary
Section 258 Changes in trustees and personal representatives
Section 259 Meaning of “statutory insolvency arrangement”
Part 3 Property income
Chapter 1 Introduction
Section 260 Overview of Part 3
Section 261 Provisions which must be given priority over Part 3
Section 262 Priority between Chapters within Part 3
Chapter 2 Property businesses
Introduction
Section 263 Introduction
Basic meaning of UK and overseas property business
Section 264 UK property business
Section 265 Overseas property business
Generating income from land
Section 266 Meaning of “generating income from land”
Section 267 Activities not for generating income from land
Chapter 3 Profits of property businesses: basic rules
Charge to tax on profits of a property business
Section 268 Charge to tax on profits of a property business
Section 269 Territorial scope of charge to tax
Section 270 Income charged
Section 271 Person liable
Calculation of profits
Section 272 Profits of a property business: application of trading income rules
Section 273 Amounts not brought into account as part of a property business
Section 274 Relationship between rules prohibiting and allowing deductions
Apportionment of profits
Section 275 Apportionment etc. of profits to tax year
Chapter 4 Profits of property businesses: lease premiums etc.
Introduction
Section 276 Introduction
Amounts treated as receipts: leases
Section 277 Lease premiums
Section 278 Amount treated as lease premium where work required
Section 279 Sums payable instead of rent
Section 280 Sums payable for surrender of lease
Section 281 Sums payable for variation or waiver of [terms] of lease
Section 282 Assignments for profit of lease granted at undervalue
Section 283 Provisions supplementary to section 282
Other amounts treated as receipts
Section 284 Sales with right to reconveyance
Section 285 Sale and leaseback transactions
Section 286 Provisions supplementary to sections 284 and 285
Additional calculation rule for reducing certain receipts
Section 287 Circumstances in which additional calculation rule applies
Section 288 The additional calculation rule
Section 289 The additional calculation rule: special cases
Section 290 Meaning of “unused amount” and “unreduced amount”
Deductions in relation to certain receipts
Section 291 Deductions for expenses under section 292
Section 292 Tenants under taxed leases treated as incurring expenses
Section 293 Restrictions on section 292 expenses: the additional calculation rule
Section 294 Restrictions on section 292 expenses: lease of part of premises
Limit on effect of additional calculation rule and deductions
Section 295 Limit on reductions and deductions
Relationship with ICTA
Section 296 Corporation tax receipts treated as taxed receipts
Section 297 Taking account of reductions in corporation tax receipts
Section 298 Taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA
Certain administrative provisions
Section 299 Payment of tax by instalments
Section 300 Statement of accuracy for purposes of section 282
Section 301 Claim for repayment of tax payable by virtue of section 284
Section 302 Claim for repayment of tax payable by virtue of section 285
Effective duration of lease
Section 303 Rules for determining effective duration of lease
Section 304 Applying the rules in section 303
Section 305 Information about effective duration of lease
Other interpretative provisions
Section 306 Provisions about premiums
Section 307 Interpretation
Chapter 5 Profits of property businesses: other rules about receipts and deductions
Furnished accommodation: receipts and deductions
Section 308 Furnished lettings
Section 309 Rent-a-room relief
Treatment of receipts on acquisition of business
Section 310 Acquisition of business: receipts from transferor’s UK property business
Reverse premiums as receipts
Section 311 Reverse premiums
Deductions for expenditure on energy-saving items
Section 312 Deduction for expenditure on energy-saving items
Section 313 Restrictions on relief
Section 314 Regulations
Deductions for expenditure on sea walls
Section 315 Deduction for expenditure on sea walls
Section 316 Transfer of interest in premises
Section 317 Ending of lease of premises
Section 318 Transfer involving company within the charge to corporation tax
Mineral royalties
Section 319 Relief in respect of mineral royalties
Apportionments on sale of land
Section 320 Nature of item apportioned on sale of estate or interest in land
Mutual business
Section 321 Mutual business
Chapter 6 Commercial letting of furnished holiday accommodation
Introduction
Section 322 Introduction
Definition
Section 323 Meaning of “commercial letting of furnished holiday accommodation”
Section 324 Meaning of “relevant period” in sections 325 and 326
Section 325 Meaning of “qualifying holiday accommodation”
Section 326 Under-used holiday accommodation: averaging elections
Separate profit calculations
Section 327 Capital allowances and loss relief
Section 328 … Relevant UK earnings for pension purposes
Chapter 7 Adjustment income
Adjustment on change of basis
Section 329 Application of Chapter
Section 330 Adjustment income and adjustment expense
Section 331 Income charged
Section 332 Person liable
Treatment of adjustment income and adjustment expense
Section 333 Treatment of adjustment income
Section 334 Treatment of adjustment expense
Chapter 8 Rent receivable in connection with a UK section 12(4) concern
Charge to tax on rent receivable in connection with a UK section 12(4) concern
Section 335 Charge to tax on rent receivable in connection with a UK section 12(4) concern
Section 336 Meaning of “rent receivable in connection with a UK section 12(4) concern”
Section 337 Income charged
Section 338 Person liable
Management expenses of owner of mineral rights
Section 339 Deduction for management expenses of owner of mineral rights
Mineral royalties
Section 340 Relief in respect of mineral royalties
Section 341 Meaning of “mineral lease or agreement” and “mineral royalties”
Section 342 Extended meaning of “mineral royalties” etc. in Northern Ireland
Section 343 Power of [Commissioners] to determine what counts as “mineral royalties”
Chapter 9 Rent receivable for UK electric-line wayleaves
Charge to tax on rent receivable for UK electric-line wayleaves
Section 344 Charge to tax on rent receivable for a UK electric-line wayleave
Section 345 Meaning of “rent receivable for a UK electric-line wayleave”
Section 346 Extent of charge to tax
Section 347 Income charged
Section 348 Person liable
Chapter 10 Post-cessation receipts
Charge to tax on post-cessation receipts
Section 349 Charge to tax on post-cessation receipts
Section 350 Extent of charge to tax
Section 351 Income charged
Section 352 Person liable
Meaning of “post-cessation receipts”
Section 353 Basic meaning of “post-cessation receipt”
Section 354 Other rules about what counts as a “post-cessation receipt”
Section 355 Transfer of rights if transferee does not carry on UK property business
Supplementary
Section 356 Application to [businesses within the charge to corporation tax]
Chapter 11 Overseas property income
Section 357 Charge to tax on overseas property income
Section 358 Meaning of “overseas property income”
Section 359 Income charged
Section 360 Person liable
Chapter 12 Supplementary
Section 361 Changes in trustees and personal representatives
Section 362 Effect of company starting or ceasing to be within charge to income tax
Section 363 Overseas property businesses and overseas land: adaptation of rules
Section 364 Meaning of “lease” and “premises”
Part 4 Savings and investment income
Chapter 1 Introduction
Section 365 Overview of Part 4
Section 366 Provisions which must be given priority over Part 4
Section 367 Priority between Chapters within Part 4
Section 368 Territorial scope of Part 4 charges
Chapter 2 Interest
Charge to tax on interest
Section 369 Charge to tax on interest
Section 370 Income charged
Section 371 Person liable
Other income taxed as interest
Section 372 Building society dividends
Section 373 Open-ended investment company interest distributions
Section 374 Date when interest payments under section 373 made
Section 375 Interpretation of sections 373 and 374
Section 376 Authorised unit trust interest distributions
Section 377 Date when interest payments under section 376 made
Section 378 Interpretation of sections 376 and 377
Section 378A Offshore fund distributions
Section 379 Industrial and provident society payments
Section 380 Funding bonds
Section 380A FSCS payments representing interest
Section 381 Discounts
Chapter 3 Dividends etc. from UK resident companies and tax credits etc. in respect of certain distributions
Introduction
Section 382 Contents of Chapter
Charge to tax on dividends and other distributions
Section 383 Charge to tax on dividends and other distributions
Section 384 Income charged
Section 385 Person liable
Amounts treated as dividends
Section 386 Open-ended investment company dividend distributions
Section 387 Date when dividends paid under section 386
Section 388 Interpretation of sections 386 and 387
Section 389 Authorised unit trust dividend distributions
Section 390 Date when dividends paid under section 389
Section 391 Interpretation of sections 389 and 390
Shares in approved share incentive plans (“SIPs”)
Section 392 SIP shares: introduction
Section 393 Later charge where cash dividends retained in SIPs are paid over
Section 394 Distribution when dividend shares cease to be subject to SIP
Section 395 Reduction in tax due in cases within section 394
Section 396 Interpretation of sections 392 to 395
Tax credits and payment and deduction of tax
Section 397 Tax credits for qualifying distributions [of UK resident companies]: UK residents and eligible non-UK residents
Section 397A Tax credits for distributions of non-UK resident companies: UK residents and eligible non-UK residents
Section 397AA Tax credit under section 397A: conditions
Section 397B Tax credits under section 397A: manufactured overseas dividends
Section 397BA Meaning of "qualifying territory"
Section 397C Meaning of “minority shareholder”
Section 398 Increase in amount or value of dividends where tax credit available
Section 399 Qualifying distributions received by persons not entitled to tax credits
Section 400 Non-qualifying distributions
Section 401 Relief: qualifying distribution after linked non-qualifying distribution
Chapter 4 Dividends from non-UK resident companies
Charge to tax on dividends from non-UK resident companies
Section 402 Charge to tax on dividends from non-UK resident companies
Section 403 Income charged
Section 404 Person liable
Shares in approved share incentive plans (“SIPs”)
Section 405 SIP shares: introduction
Section 406 Later charge where cash dividends retained in SIPs are paid over
Section 407 Dividend payment when dividend shares cease to be subject to SIP
Section 408 Reduction in tax due in cases within section 407
Chapter 5 Stock dividends from UK resident companies
Section 409 Charge to tax on stock dividend income
Section 410 When stock dividend income arises
Section 411 Income charged
Section 412 Cash equivalent of share capital
Section 413 Person liable
Section 414 Income tax treated as paid
Chapter 6 Release of loan to participator in close company
Section 415 Charge to tax under Chapter 6
Section 416 Income charged
Section 417 Person liable
Section 418 Relief where borrowers liable as settlors
Section 419 Loans and advances to persons who die
Section 420 Loans and advances to trustees of [settlements] that have ended
Section 421 Income tax treated as paid
Chapter 7 Purchased life annuity payments
Section 422 Charge to tax on purchased life annuity payments
Section 423 Meaning of “purchased life annuity”
Section 424 Income charged
Section 425 Person liable
Section 426 Annuity payments received after deduction of tax
Chapter 8 Profits from deeply discounted securities
Charge to tax under Chapter 8
Section 427 Charge to tax on profits from deeply discounted securities
Section 428 Income charged
Section 429 Person liable
Deeply discounted securities
Section 430 Meaning of “deeply discounted security”
Section 431 Excluded occasions of redemption
Section 432 Securities which are not deeply discounted securities
Section 433 Meaning of “excluded indexed security”
Section 434 Securities issued in separate tranches: preliminary
Section 435 Securities issued in separate tranches: basic rule
Section 436 Deeply discounted securities issued in separate tranches: nominal value rule
Disposals
Section 437 Transactions which are disposals
Section 438 Timing of transfers and acquisitions
Calculating profits
Section 439 Calculating the profit from disposals
Section 440 Market value disposals
Section 441 Market value acquisitions
Section 442 Securities issued in accordance with qualifying earn-out right
Special rules for strips of government securities
Section 443 Application of this Chapter to strips of government securities
Section 444 Meaning of “strip” in Chapter 8
Section 445 Strips of government securities: acquisitions and disposals
Section 446 Strips of government securities: relief for losses
Section 447 Restriction of profits on strips by reference to original acquisition cost
Section 448 Restriction of losses on strips by reference to original acquisition cost
Section 449 Strips of government securities: manipulation of acquisition, transfer or redemption payments
Section 450 Market value of strips etc.
Section 451 Market value of strips etc. quoted in foreign stock exchange lists
Section 452 Power to modify this Chapter for strips
Special rules for corporate strips
Section 452A Application of this Chapter to corporate strips
Section 452B Meaning of “interest-bearing corporate security” in Chapter 8
Section 452C Conversion of interest-bearing corporate securities into corporate strips
Section 452D Conversion into corporate strips: lower level conversions
Section 452E Meaning of “corporate strip” in Chapter 8
Section 452F Corporate strips: acquisitions and disposals
Section 452G Corporate strips: manipulation of acquisition, transfer or redemption payments
Special rules for listed securities held since 26th March 2003
Section 453 Application of sections 454 to 456
Section 454 Listed securities held since 26th March 2003: relief for losses
Section 455 Listed securities held since 26th March 2003: calculating the profit or loss on disposals
Section 456 Securities issued to connected persons etc. at excessive price: subsequent transfers to connected persons
Trustees
Section 457 Trustees
Section 458 Non-UK resident trustees
Miscellaneous and supplementary
Section 459 Transfer of assets abroad
Section 460 Minor definitions
Chapter 9 Gains from contracts for life insurance etc.
Charge to tax under Chapter 9
Section 461 Charge to tax under Chapter 9
Section 462 When gains arise from policies and contracts
Section 463 Income charged
Person liable etc.
Section 464 Person liable for tax: introduction
Section 465 Person liable: individuals
Section 465A Amounts for which individuals liable to be treated as highest part of total income
Section 466 Person liable: personal representatives
Section 467 Person liable: UK resident trustees
Section 468 Non-UK resident trustees and foreign institutions
Section 469 Two or more persons interested in policy or contract
Section 470 Interests in rights under a policy or contract for section 469
Section 471 Determination of shares etc.
Section 472 Trusts created by two or more persons
Policies and contracts to which Chapter 9 applies
Section 473 Policies and contracts to which Chapter 9 applies: general
Section 474 Special rules: qualifying policies
Section 475 Special rules: personal portfolio bonds
Section 476 Special rules: foreign policies
Section 477 Special rules: certain older policies and contracts
Section 478 Exclusion of mortgage repayment policies
Section 479 Exclusion of pension policies
Section 480 Exclusion of excepted group life policies
Section 481 Excepted group life policies: conditions about benefits
Section 482 Excepted group life policies: conditions about persons intended to benefit
Section 483 Exclusion of credit union group life policies
When chargeable events occur: general
Section 484 When chargeable events occur
Section 485 Disregard of certain events in relation to qualifying policies
Section 486 Exclusion of maturity of capital redemption policies in certain circumstances
Section 487 Disregard of certain assignments
Section 488 Disregard of some events after alterations of life insurance policy terms
Section 489 Conditions applicable to alterations of life insurance policy terms
Section 490 Last payment under guaranteed income bonds etc. treated as total surrender
Calculating gains: general
Section 491 Calculating gains: general rules
Section 492 The total benefit value of a policy or contract
Section 493 The value of a policy or contract
Section 494 The total allowable deductions for a policy or contract
Section 495 Disregard of certain amounts in calculating gains under section 491
Section 496 Modification of section 494: qualifying endowment policies held as security for company debts
Section 497 Disregard of trivial inducement benefits
Part surrenders and assignments: periodic calculations and excess events
Section 498 Requirement for periodic calculations in part surrender or assignment cases
Section 499 Meaning of “insurance year” and “final insurance year”
Section 500 Events treated as part surrenders
Section 501 Part surrenders: loans
Section 502 Exception from section 501 for loans to buy life annuities
Section 503 Exception from section 501 for certain loans under qualifying policies
Section 504 Part surrenders: payments under guaranteed income bonds etc.
Section 505 Assignments etc. involving co-ownership
Section 506 Assignments occurring when there is a co-ownership transaction
Section 507 Method for making periodic calculations under section 498
Section 508 The value of rights partially surrendered or assigned
Section 509 Chargeable events in certain cases where periodic calculations show gains
Transaction-related calculations and part surrender or assignment events
Section 510 Requirement for transaction-related calculations in certain part surrender and assignment cases
Section 511 Method for making transaction-related calculations under section 510
Section 512 Available premium left for relevant transaction
Section 513 Special rules for part surrenders and assignments in final insurance year
Section 514 Chargeable events where transaction-related calculations show gains
Personal portfolio bonds
Section 515 Requirement for annual calculations in relation to personal portfolio bonds
Section 516 Meaning of “personal portfolio bond”
Section 517 Policies and contracts which are not personal portfolio bonds
Section 518 The index categories
Section 519 The index selection conditions
Section 520 The property categories
Section 521 The property selection conditions
Section 522 Method for making annual calculations under section 515
Section 523 The total amount of personal portfolio bond excesses
Section 524 The total amount of part surrender gains
Section 525 Chargeable events where annual calculations show gains
Section 526 Power to make regulations about personal portfolio bonds
Reductions from gains
Section 527 Reduction for sums taken into account otherwise than under Chapter 9
Section 528 Reduction in amount charged: non-UK resident policy holders
Section 529 Exceptions to section 528
Income tax treated as paid and reliefs
Section 530 Income tax treated as paid etc.
Section 531 Exceptions to section 530
Section 532 Relief for policies and contracts with European Economic Area insurers
Section 533 Meaning of “comparable EEA tax charge”
Section 534 Regulations providing for relief in other cases where foreign tax chargeable
Section 535 Top slicing relief
Section 536 Top slicing relieved liability: one chargeable event
Section 537 Top slicing relieved liability: two or more chargeable events
Section 538 Recovery of tax from trustees
Deficiencies
Section 539 Relief for deficiencies
Section 540 When deficiencies arise: events following calculation events
Section 541 Calculation of deficiencies
Rebated or reinvested commission
Section 541A Effect of rebated or reinvested commission in certain cases
Section 541B Section 541A: further definitions
Supplementary
Section 542 Replacement of qualifying policies
Section 543 Issue time of qualifying policy replacing foreign policy
Section 544 Application of Chapter to policies and contracts in which companies interested
Section 545 Minor definitions
Section 546 Table of provisions subject to special rules for older policies and contracts
Chapter 10 Distributions from unauthorised unit trusts
Section 547 Charge to tax under Chapter 10
Section 548 Income charged
Section 549 Person liable
Section 550 Income tax treated as paid
Chapter 11 Transactions in deposits
Section 551 Charge to tax on profits from disposal of deposit rights
Section 552 Meaning of “deposit rights”
Section 553 Income charged
Section 554 Person liable
Chapter 12 Disposals of futures and options involving guaranteed returns
Charge to tax under Chapter 12
Section 555 Charge to tax under Chapter 12
Section 556 Income charged
Section 557 Person liable
Section 558 Meaning of “future”, “option” etc.
When disposals involve guaranteed returns
Section 559 When disposals involve guaranteed returns
Section 560 Production of guaranteed returns
Section 561 The return from one or more disposals
When disposals of futures and options occur
Section 562 When disposals of futures and options occur: general
Section 563 Timing of certain grants of options where related disposals occur later
Section 564 Deemed disposal where futures run to delivery or options are exercised
Section 565 Interpretation of section 564
Section 566 When transactions are related
Losses
Section 567 Losses
Trustees
Section 568 Special rule for certain income of trustees
Transfer of assets abroad
Section 569 Anti-avoidance: transfer of assets abroad
Chapter 13 Sales of foreign dividend coupons
Section 570 Charge to tax under Chapter 13
Section 571 Meaning of “foreign holdings” etc.
Section 572 Income charged
Section 573 Person liable
Part 5 Miscellaneous income
Chapter 1 Introduction
Section 574 Overview of Part 5
Section 575 Provisions which must be given priority over Part 5
Section 576 Priority between Chapters within Part 5
Section 577 Territorial scope of Part 5 charges
Chapter 2 Receipts from intellectual property
Introduction
Section 578 Contents of Chapter
Charge to tax on non-trading income from intellectual property
Section 579 Charge to tax on royalties and other income from intellectual property
Section 580 Income charged under section 579
Section 581 Person liable for tax under section 579
Section 582 Deductions in calculating certain income charged under section 579
Disposals of know-how
Section 583 Charge to tax on income from disposals of know-how
Section 584 Exceptions to charge under section 583
Section 585 Income charged under section 583
Section 586 Person liable for tax under section 583
Sales of patent rights
Section 587 Charge to tax on income from sales of patent rights
Section 588 Income charged under section 587
Section 589 Person liable for tax under section 587
Section 590 UK resident sellers: spreading rules
Section 591 Non-UK resident sellers: election for spreading
Section 592 Further provision about elections for spreading: instalments
Section 593 Death of seller
Section 594 Winding up of a body corporate
Section 595 Deduction of tax from payments to non-UK residents
Section 596 Adjustments where tax has been deducted
Section 597 Licences connected with patents
Section 598 Rights to acquire future patent rights
Section 599 Sums paid for Crown use etc. treated as paid under licence
Relief from income tax on patent income
Section 600 Relief for expenses: patent income
Section 601 How relief is given under section 600
Payments received after deduction of tax
Section 602 Payments received after deduction of tax
Supplementary
Section 603 Contributions to expenditure
Section 604 Contributions not made by public bodies nor eligible for tax relief
Section 605 Exchanges
Section 606 Apportionment where property sold together
Section 607 Questions about apportionments affecting two or more persons
Section 608 Meaning of “capital sums” etc.
Chapter 3 Films and sound recordings: non-trade businesses
Section 609 Charge to tax on films and sound recordings businesses
Section 610 Income charged
Section 611 Person liable
Section 612 Calculation of income
Section 613 Application of trading income rules to non-trade businesses
Chapter 4 Certain telecommunication rights: non-trading income
Section 614 Charge to tax on certain telecommunication rights of a non-trader
Section 615 Income charged
Section 616 Person liable
Section 617 Deductions in calculating certain income charged
Section 618 Payments received after deduction of tax
Chapter 5 Settlements: amounts treated as income of settlor
Charge to tax under Chapter 5
Section 619 Charge to tax under Chapter 5
Section 619A Income treated as highest part of settlor’s total income
Section 620 Meaning of “settlement” and “settlor”
Income charged and person liable
Section 621 Income charged
Section 622 Person liable
Rules for calculating income
Section 623 Calculation of income
Income treated as income of settlor: retained interests
Section 624 Income where settlor retains an interest
Section 625 Settlor’s retained interest
Section 626 Exception for outright gifts between spouses [or civil partners]
Section 627 Exceptions for certain types of income
Section 628 Exception for gifts to charities
Income treated as income of settlor: relevant children
Section 629 Income paid to [relevant] children of settlor
Section 630 Exception for gifts to charities
Section 631 Retained and accumulated income
Section 632 Offshore income gains
Capital sums treated as income of settlor: trustees' payments
Section 633 Capital sums paid to settlor by trustees of settlement
Section 634 Meaning of “capital sum” and “sums paid to settlor”
Section 635 Amount of available income
Section 636 Calculation of undistributed income
Section 637 Qualifications to section 636
Trustees' payments: further provisions
Section 638 Capital sums paid by way of loan or repayment of loan
Section 639 Loans to participators in close companies
Section 640 Grossing-up of deemed income
Capital sums treated as income of settlor: connected bodies
Section 641 Capital sums paid to settlor by body connected with settlement
Section 642 Exception for certain loans or repayments of loans
Section 643 Interpretation of sections 641 and 642
Settlements by two or more settlors
Section 644 Application to settlements by two or more settlors
Section 645 Property or income originating from settlor
Other supplementary provisions
Section 646 Adjustments between settlor and trustees etc.
Section 646A Trustees’ expenses to be rateably apportioned
Section 647 Power to obtain information
Section 648 Income arising under a settlement
Chapter 6 Beneficiaries' income from estates in administration
Charge to tax on estate income
Section 649 Charge to tax on estate income
Section 650 Absolute, limited and discretionary interests
Section 651 Meaning of “UK estate” and “foreign estate”
Types of estate income
Section 652 Estate income: absolute interests in residue
Section 653 Meaning of “the administration period” and “the final tax year”
Section 654 Estate income: limited interests in residue
Section 655 Estate income: discretionary interests in residue
Income charged and person liable
Section 656 Income charged: UK estates
Section 657 Income charged: foreign estates
Section 658 Special rules for foreign income
Section 659 Person liable
Basic amount of estate income: general calculation rules
Section 660 Basic amount of estate income: absolute interests
Section 661 Basic amount of estate income: limited interests
Section 662 Basic amount of estate income: discretionary interests
Section 663 The applicable rate for grossing up basic amounts of estate income
Section 664 The aggregate income of the estate
Further provisions for calculating estate income relating to absolute interests
Section 665 Assumed income entitlement
Section 666 The residuary income of the estate
Section 667 Shares of residuary income of estate
Section 668 Reduction in share of residuary income of estate
Section 669 Reduction in residuary income: inheritance tax on accrued income
Section 670 Applicable rate for determining assumed income entitlement (UK estates)
Special rules for successive interests
Section 671 Successive absolute interests
Section 672 Successive interests: assumed income entitlement of holder of absolute interest following limited interest
Section 673 Successive interests: payments in respect of limited interests followed by absolute interests
Section 674 Successive interests: holders of limited interests
Section 675 Basic amount of estate income: successive limited interests
Section 676 Apportionments
Relief where foreign estates have borne UK income tax
Section 677 Relief where UK income tax borne by foreign estate: absolute interests
Section 678 Relief where UK income tax borne by foreign estate: limited and discretionary interests
General
Section 679 Income from which basic amounts are treated as paid
Section 680 Income treated as bearing income tax
Section 680A Income treated as … dividend income
Section 681 Transfers of assets etc. treated as payments
Section 682 Assessments, adjustments and claims after the administration period
Chapter 7 Annual payments not otherwise charged
Section 683 Charge to tax on annual payments not otherwise charged
Section 684 Income charged
Section 685 Person liable
Section 685A Settlor-interested settlements
Section 686 Payments received after deduction of tax
Chapter 8 Income not otherwise charged
Section 687 Charge to tax on income not otherwise charged
Section 688 Income charged
Section 689 Person liable
Part 6 Exempt income
Chapter 1 Introduction
Section 690 Overview of Part 6
Chapter 2 National savings income
Section 691 National Savings Bank ordinary account interest
Section 692 Income from savings certificates
Section 693 Income from Ulster Savings Certificates
Chapter 3 Income from individual investment plans
Section 694 Income from individual investment plans
Section 695 Investment plans
Section 696 Plan managers
Section 697 Special requirements for certain foreign managers
Section 698 Requirements for discharge of foreign institution’s duties
Section 699 Non-entitlement to exemption
Section 700 Information
Section 701 General and supplementary powers
Chapter 4 SAYE interest
Section 702 Interest under certified SAYE savings arrangements
Section 703 Meaning of “certified SAYE savings arrangement”
Section 704 Types of arrangements and providers
Section 705 Certification of arrangements
Section 706 Withdrawal and variation of certifications and connected requirements
Section 707 Authorisation of providers
Section 708 Withdrawal and variation of authorisations
Chapter 5 Venture capital trust dividends
Section 709 Venture capital trust dividends
Section 710 Treatment of shares where annual acquisition limit exceeded
Section 711 Identification of shares after disposals
Section 712 Identification of shares after reorganisations etc.
Chapter 6 Income from FOTRA securities
Section 713 Introduction: securities free of tax to residents abroad (“FOTRA securities”)
Section 714 Exemption of profits from FOTRA securities
Section 715 Interest from FOTRA securities held on trust
Section 716 Restriction on deductions etc. relating to FOTRA securities
Chapter 7 Purchased life annuity payments
Partial exemption for purchased life annuity payments
Section 717 Exemption for part of purchased life annuity payments
Section 718 Excluded annuities
Section 719 Extent of exemption under section 717
Section 720 Exempt proportion: term dependent solely on duration of life
Section 721 Exempt sum: term dependent solely on duration of life
Section 722 Consideration for the grant of annuities
Section 723 Determinations
Section 724 Regulations
Immediate needs annuities
Section 725 Annual payments under immediate needs annuities
Section 726 Meaning of “care provider”
Chapter 8 Other annual payments
Certain annual payments by individuals
Section 727 Certain annual payments by individuals
Section 728 Commercial payments
Section 729 Payments for non-taxable consideration
Section 730 Foreign maintenance payments
Periodical payments of personal injury damages etc.
Section 731 Periodical payments of personal injury damages
Section 732 Compensation awards
Section 733 Persons entitled to exemptions for personal injury payments etc.
Section 734 Payments from trusts for injured persons
Health and employment insurance payments
Section 735 Health and employment insurance payments
Section 736 Health and employment risks and benefits
Section 737 Period for which payments may be made
Section 738 Risk of significant loss
Section 739 Conditions to be met by policies also providing other benefits
Section 740 Conditions to be met where policies are linked
Section 741 Aggregation of policies where employment ends for health reasons
Section 742 Meaning of “the insured”
Section 743 Policies for the benefit of others who contribute to premiums
Payments to adopters
Section 744 Payments to adopters: England and Wales
Section 745 Payments to adopters: Scotland
Section 746 Payments to adopters: Northern Ireland
Section 747 Power to amend sections 744 to 746
Payments by persons liable to pool betting duty
Section 748 Payments by persons liable to pool betting duty
Chapter 9 Other income
Interest only income
Section 749 Interest paid under repayment supplements
Section 749A Interest on tax overpaid
Section 750 Interest from tax reserve certificates
Section 751 Interest on damages for personal injury
Section 752 Interest under employees’ share schemes
Section 753 Interest on repayment of student loan
Section 754 Redemption of funding bonds
Section 755 Interest on foreign currency securities etc. owned by non-UK residents
Section 756 Which securities and loans are foreign currency ones for section 755
Section 756A Interest on certain deposits of victims of National-Socialist persecution
Interest and royalty payments
Section 757 Interest and royalty payments: introduction
Section 758 Exemption for certain interest and royalty payments
Section 759 The person making the payment
Section 760 The person beneficially entitled to the payment
Section 761 Meaning of “25% associates”
Section 762 Interest payments: exemption notices
Section 763 Special relationships
Section 764 Application of ICTA provisions about special relationships
Section 765 Anti-avoidance
Section 766 Interest and royalty payments: interpretation
Section 767 Power to amend references to the Directive by Order
Income from commercial occupation of woodlands
Section 768 Commercial occupation of woodlands
Housing grants
Section 769 Housing grants
Approved share incentive plan distributions
Section 770 Amounts applied by SIP trustees acquiring dividend shares or retained for reinvestment
Foreign income of consular officers and employees
Section 771 Relevant foreign income of consular officers and employees
Section 772 Further provisions about Orders under section 771
Income of non-UK residents from certain securities
Section 773 Income from Inter-American Development Bank securities
Section 774 Income from securities issued by designated international organisations
Other
Section 775 Income towards reducing the national debt
Section 776 Scholarship income
Section 777 VAT repayment supplements
Section 778 Incentives to use electronic communications
Section 779 Gains on commodity and financial futures
Section 780 Disabled person’s vehicle maintenance grant
Section 781 Payments under New Deal 50plus
Section 782 Payments under employment zone programme
Section 782A Domestic microgeneration
Section 782B Renewables obligation certificates for domestic microgeneration
Chapter 10 General
Section 783 General disregard of exempt income for income tax purposes
Part 7 Income charged under this Act: rent-a-room and foster-care relief
Chapter 1 Rent-a-room relief
Introduction
Section 784 Overview of Chapter 1
Section 785 Person who qualifies for relief
Basic definitions
Section 786 Meaning of “rent-a-room receipts”
Section 787 Meaning of “residence”
Section 788 Meaning of “total rent-a-room amount”
Individual’s limit
Section 789 The individual’s limit
Section 790 Exclusive receipts condition
Relief if amount does not exceed limit
Section 791 Full rent-a-room relief: introduction
Section 792 Full rent-a-room relief: trading income
Section 793 Full rent-a-room relief: property income
Section 794 Full rent-a-room relief: income chargeable under Chapter 8 of Part 5
Alternative calculation of profits if amount exceeds limit
Section 795 Alternative calculation of profits: introduction
Section 796 Alternative calculation of profits: trading income
Section 797 Alternative calculation of profits: property income
Section 798 Alternative calculation of profits: income chargeable under Chapter 8 of Part 5
Elections
Section 799 Election not to apply full relief
Section 800 Election for alternative method of calculating profits
Section 801 Time limit on adjustment of assessment
Interpretation
Section 802 Minor definitions
Chapter 2 Foster-care relief
Introduction
Section 803 Overview of Chapter 2
Section 804 Person who qualifies for relief
Basic definitions
Section 805 Meaning of “foster-care receipts”
Section 806 Meaning of providing foster care
Section 807 Calculation of “total foster-care receipts”
Individual’s limit
Section 808 The individual’s limit
Section 809 Share of fixed amount: residence used by more than one foster carer
Section 810 Share of fixed amount: income period not a year
Section 811 The amount per child
Relief if amount does not exceed limit
Section 812 Full foster-care relief: introduction
Section 813 Full foster-care relief: trading income
Section 814 Full foster-care relief: income chargeable under Chapter 8 of Part 5
Alternative calculation of profits if amount exceeds limit
Section 815 Alternative calculation of profits: introduction
Section 816 Alternative calculation of profits: trading income
Section 817 Alternative calculation of profits: income chargeable under Chapter 8 of Part 5
Section 818 Election for alternative method of calculating profits
Section 819 Adjustment of assessment
Periods of account not ending on 5th April
Section 820 Periods of account not ending on 5th April
Section 821 Meaning of “relevant limit”
Section 822 Full relief
Section 823 Alternative method of calculating profits
Capital allowances for foster carers carrying on trade
Section 824 Capital allowances: introduction
Section 825 Carried forward unrelieved qualifying expenditure
Section 826 Excluded capital expenditure
Section 827 Excluded capital expenditure: subsequent treatment of asset
Overlap profit
Section 828 Overlap profit
Part 8 Foreign income: special rules
Chapter 1 Introduction
Section 829 Overview of Part 8
Section 830 Meaning of “relevant foreign income”
Chapter 2 Relevant foreign income charged on remittance basis
Remittance basis
Section 831 Claims for relevant foreign income to be charged on the remittance basis
Section 832 Relevant foreign income charged on remittance basis
Section 832A Section 832: temporary non-residents
Section 832B Section 832: deductions from remitted income
Section 833 Income treated as remitted: repayment of UK-linked debts
Section 834 Arrangements treated as repayment of UK-linked debts
Relief for delayed remittances
Section 835 Relief for delayed remittances
Section 836 Relief for delayed remittances: backdated pensions
Section 837 Claims for relief on delayed remittances
Chapter 3 Relevant foreign income charged on arising basis: deductions and reliefs
Section 838 Expenses attributable to collection or payment of relevant foreign income
Section 839 Annual payments payable out of relevant foreign income
Section 840 Relief for backdated pensions charged on the arising basis
Section 840A Claims under section 840
Chapter 4 Unremittable income
Section 841 Unremittable income: introduction
Section 842 Claim for relief for unremittable income
Section 843 Withdrawal of relief
Section 844 Income charged on withdrawal of relief after source ceases
Section 845 Valuing unremittable income
Part 9 Partnerships
Introduction
Section 846 Overview of Part 9
Section 847 General provisions
Section 848 Assessment of partnerships
Calculation of partners' shares
Section 849 Calculation of firm’s profits or losses
Section 850 Allocation of firm’s profits or losses between partners
Section 850A Profit-making period in which some partners have losses
Section 850B Loss-making period in which some partners have profits
Section 851 Calculations etc. where firm has other income or losses
Firms with trading income
Section 852 Carrying on by partner of notional trade
Section 853 Basis periods for partners’ notional trades
Firms with trading and other source income
Section 854 Carrying on by partner of notional business
Section 855 Basis periods for partners’ notional businesses
Section 856 Overlap profits from partners’ notional businesses
Firms with a foreign element
Section 857 Partners to whom the remittance basis [applies]
Section 858 Resident partners and double taxation agreements
Miscellaneous
Section 859 Special provisions about farming and property income
Section 860 Adjustment income
Section 861 Sale of patent rights: effect of partnership changes
Section 862 Sale of patent rights: effect of later cessation of trade
Section 863 Limited liability partnerships
Part 10 General provisions
Chapter 1 Introduction
Section 864 Overview of Part 10
Chapter 2 General calculation rules etc.
Unpaid remuneration
Section 865 Unpaid remuneration: non-trades and non-property businesses
Employee benefit contributions
Section 866 Employee benefit contributions: non-trades and non-property businesses
Business entertainment and gifts
Section 867 Business entertainment and gifts: non-trades and non-property businesses
Social security contributions
Section 868 Social security contributions: non-trades etc.
Penalties, interest and VAT surcharges
Section 869 Penalties, interest and VAT surcharges: non-trades etc.
Crime-related payments
Section 870 Crime-related payments: non-trades and non-property businesses
Apportionment of profits
Section 871 Apportionment etc. of miscellaneous profits to tax year
Calculation of losses
Section 872 Losses calculated on same basis as miscellaneous income
Chapter 3 Supplementary and general provisions
Orders and regulations
Section 873 Orders and regulations made by Treasury or [Commissioners]
Interpretation
Section 874 Activities in UK sector of continental shelf
Section 875 Meaning of “caravan”
Section 876 Meaning of “farming” and related expressions
Section 877 Meaning of grossing up
Section 878 Other definitions
Section 879 Interpretation: Scotland
Section 880 Interpretation: Northern Ireland
General and final
Section 881 Disapplication of corporation tax: section 9 of ICTA
Section 882 Consequential amendments
Section 883 Commencement and transitional provisions etc.
Section 884 Repeals and revocations
Section 885 Abbreviations and general index in Schedule 4
Section 886 Short title
Schedules
Schedule 1 Consequential amendments
Part 1 Income and Corporation Taxes Act 1988
Part 2 Other enactments
Schedule 2 Transitionals and savings etc.
Part 1 General provisions
Part 2 Changes in the law
Part 3 Trading income
Part 4 Property income
Part 5 Savings and investment income: general
Part 6 Savings and investment income: insurance contracts and policies made before certain dates
Part 7 Savings and investment income: gains from contracts for life insurance etc. (personal portfolio bonds)
Part 8 Miscellaneous income
Part 9 Exempt income
Part 10 Foster-care relief
Part 11 Foreign income: special rules
Part 12 Other provisions
Schedule 3 Repeals and revocations
Schedule 4 Abbreviations and defined expressions
Part 1 Abbreviations of Acts
Part 2 Index of expressions defined in this Act etc.