Income Tax Act 2007 Schedule 2 para 35

Application of existing regulations under sections 114 and 802

Section 35 of Schedule 2 ensures that the Partnerships (Restrictions on Contributions to a Trade) Regulations 2005 continue to operate under the new Income Tax Act 2007, with updated cross-references and terminology replacing references to the older legislation.

• The 2005 Regulations are treated as if made under the new sections 114 and 802 of ITA 2007, rather than the predecessor provisions they were originally made under.
• Key definitions are updated: "bank" now refers to section 991 of ITA 2007, "contribution to the relevant trade" becomes "capital contribution", and "ICTA" is replaced throughout by "ITA 2007".
• For section 114 purposes, "capital contribution" means the contribution to a firm under sections 104 or 110, or to an LLP under section 107 of ITA 2007; for section 802 purposes, it takes the meaning given by section 801(3).
• Various specific cross-references within regulations 3 to 6 are updated to point to the corresponding provisions in ITA 2007, and "the trade" is broadened to "a trade" in regulation 6(c).