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Income Tax Act 2007

▸ 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
    • Income charged at particular rates
    • Starting rate limit and basic rate limit
  • ▸ 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 24A – Limit on Step 2 deductions
    • 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
    • Section 24B – Calculation of net income at Step 2 for low income estates and trusts
▸ Part 3 – Personal reliefs
  • ▸ Chapter 1 – Introduction
    • Section 33 – Overview of Part
  • ▸ Chapter 2 – Personal allowance and blind person’s allowance
    • Introduction
    • Personal allowances
    • Blind person's allowance
    • Supplementary
  • ▸ Chapter 3 – Tax reductions for married couples and civil partners: persons born before 6 April 1935
    • Introduction
    • Married couple's allowance
    • Elections to transfer relief
    • Transfer of unused relief
    • Supplementary
  • ▸ Chapter 3A – Transferable Tax Allowance for married couples and civil partners
    • Section 55A – Tax reduction under Chapter
    • Section 55B – Tax reduction entitlement
    • Section 55C – Election to reduce personal allowance
    • Section 55D – Procedure for election under 55C
    • Section 55E – Limitation on number of tax reductions and elections
  • ▸ Chapter 4 – General
    • Section 56 – Residence etc. of claimants
    • Section 57 – Indexation of allowances
    • Section 58 – Meaning of “adjusted net income”
    • Section 57A – Personal allowance linked to national minimum wage
▸ Part 4 – Loss relief
  • ▸ Chapter 1 – Introduction
    • Section 59 – Overview of Part
  • ▸ Chapter 2 – Trade losses
    • Introduction
    • Trade loss relief against general income
    • Restriction on relief for uncommercial trades
    • Restriction on relief for “hobby” farming or market gardening
    • Use of trading loss as CGT loss
    • Early trade losses relief
    • General restrictions on sideways relief and capital gains relief
    • Restriction on sideways relief and capital gains relief where cash basis applies
    • Restrictions on sideways relief for certain capital allowances
    • Restriction on sideways relief for specific trades
    • Carry-forward trade loss relief
    • Terminal trade loss relief
    • Wholly foreign trades
    • Post-cessation trade relief
  • ▸ Chapter 3 – Restrictions on trade loss relief for certain partners
    • Introduction
    • Limit on amount of sideways relief and capital gains relief
    • Limited partners
    • Members of LLPs
    • Non-active members of LLPs or other partnerships (apart from limited partnerships)
    • Exclusion of amounts in calculating contribution to the firm or LLP
    • Restrictions for film trades carried on in partnership
    • Partnerships with mixed membership etc.
  • ▸ Chapter 4 – Losses from property businesses
    • Introduction
    • Carry-forward property loss relief
    • Property loss relief against general income
    • Post-cessation property relief
    • ...
    • Restrictions on relief
  • ▸ 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
    • Shares to which EIS relief is not attributable
    • Qualifying trading companies: the requirements
    • Qualifying trading companies: supplementary
    • Limits on share loss relief and mixed holdings
    • Miscellaneous and supplementary
  • ▸ Chapter 7 – Losses from miscellaneous transactions
    • Loss relief against miscellaneous income
    • Deposit rights
    • Supplementary
▸ Part 5 – Enterprise investment scheme
  • ▸ Chapter 1 – Introduction
    • EIS relief
    • Miscellaneous
  • ▸ Chapter 2 – The investor
    • Introduction
    • The requirements
    • Meaning of connection with issuing company
  • ▸ Chapter 3 – General requirements
    • Introduction
    • The requirements
    • Meaning of “qualifying business activity”
  • ▸ Chapter 4 – The issuing company
    • Introduction
    • The requirements
    • Definitions
    • Excluded activities
    • Supplementary
  • ▸ Chapter 5 – Attribution of and claims for EIS relief
    • Attribution
    • Claims: general
    • Claims: supporting documents
  • ▸ Chapter 6 – Withdrawal or reduction of EIS relief
    • Introduction
    • Disposals
    • Value received by investor
    • Repayments etc of share capital to other persons
    • Miscellaneous
  • ▸ Chapter 7 – Withdrawal or reduction of EIS relief: procedure
    • Assessments and appeals
    • Interest
    • Information
  • ▸ Chapter 8 – Supplementary and general
    • Disposals of shares
    • Acquisition of issuing company
    • Nominees etc.
    • Powers to amend
    • Interpretation
▸ Part 5A – Seed enterprise investment scheme
  • ▸ Chapter 1 – Introduction
    • SEIS relief
    • Miscellaneous
  • ▸ Chapter 2 – The investor
    • Introduction
    • The requirements
    • Meaning of substantial interest in a company
  • ▸ Chapter 3 – General requirements
    • Introduction
    • The requirements
  • ▸ Chapter 4 – The issuing company
    • Introduction
    • The requirements
  • ▸ Chapter 5 – Attribution and claims for SEIS relief
    • Attribution
    • Claims: general
    • Claims: supporting documents
  • ▸ Chapter 6 – Withdrawal or reduction of SEIS relief
    • Introduction
    • Value received by investor
    • Miscellaneous
  • ▸ Chapter 7 – Withdrawal or reduction of SEIS relief: procedure
    • Assessments and appeals
    • Interest
    • Information
  • ▸ Chapter 8 – Supplementary and General
    • Disposals of shares
    • Acquisition of issuing company (257HB-257HD)
    • Nominees etc.
    • Interpretation
▸ Part 5B – Tax relief for social investments
  • ▸ Chapter 1 – Introduction
    • Section 257J – Meaning of "SI relief" and "social enterprise"
    • Section 257JA – Form and amount of relief
    • Section 257JB – Meaning of “community benefit society”
    • Section 257JC – Charities that are trusts
    • Section 257JD – Accreditation as a social impact contractor
    • Section 257JE – Meaning of “social impact contract”
    • Section 257JF – Accreditations: supplementary provisions
    • Section 257JG – Period of accreditation as a social impact contractor
    • Section 257JH – Functions of Ministers of the Crown under sections 257JD to 257JG
  • ▸ Chapter 2 – Eligibility for relief: basic rule and key definitions
    • Eligibility
    • Key definitions
  • ▸ Chapter 3 – Eligibility: conditions relating to the investor and the investment
    • Section 257L – Investment to be in new shares or new qualifying debt investments
    • Section 257LA – Condition that the amount invested must have been paid over
    • Section 257LB – The no pre-arranged exits requirements
    • Section 257LC – The no risk avoidance requirement
    • Section 257LD – The no linked loans requirement
    • Section 357LDA – The existing investments requirement
    • Section 257LE – The no tax avoidance requirement
    • Section 257LEA – The no disqualifying arrangements requirement
    • Section 257LF – Restrictions on being an employee, partner or paid director
    • Section 257LG – The requirement not to be interested in capital etc of social enterprise
    • Section 257LH – Requirement for no collusion with a non-qualifying investor
  • ▸ Chapter 4 – Eligibility: conditions relating to the social enterprise
    • Conditions relating to the social enterprise: general
    • Limits on amounts that may be invested
    • Interpretation of conditions relating to the social enterprise
  • ▸ Chapter 5 – Attribution of relief
    • Section 257N – Attribution of SI relief to investments
  • ▸ Chapter 6 – Claims for relief
    • Section 257P – Time for making claims for SI relief
    • Section 257PA – Entitlement to claim
    • Section 257PB – Compliance statements
    • Section 257PC – Compliance certificates
    • Section 257PD – Penalties for fraudulent certificate or statement etc
    • Section 257PE – Power to amend Chapter
  • ▸ Chapter 7 – Withdrawal or reduction of SI relief
    • Value received by the investor
    • Repayments etc of investments to other persons
    • Miscellaneous
    • Disposals
  • ▸ Chapter 8 – Withdrawal or reduction of SI relief: procedure
    • Assessments and appeals
    • Interest
    • Information
  • ▸ Chapter 9 – Miscellaneous and supplementary provisions
    • Section 257T – Transfers between spouses or civil partners
    • Section 257TA – Identification of investments on a disposal
    • Section 257TB – Meaning of a company being “in administration” or “in receivership”
    • Section 257TC – Meaning of “associate”
    • Section 257TD – Meaning of “control”
    • Section 257TE – 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
    • Loss of relief
    • Supplementary
  • ▸ Chapter 3 – VCT approvals
    • Giving of approval
    • Withdrawal of approval
    • Supplementary
  • ▸ Chapter 4 – Qualifying holdings
    • Introduction
    • The requirements
    • Definitions
    • Excluded activities
    • Supplementary
  • ▸ Chapter 5 – Powers: winding up and mergers of VCTs
    • Winding up
    • Mergers
    • Supplementary
  • ▸ Chapter 6 – Supplementary and general
    • Acquisitions for restructuring purposes
    • Conversion of shares etc and company reorganisations
    • Nominees
    • Power to amend Part
    • Supplementary
▸ Part 7 – Community investment tax relief
  • ▸ Chapter 1 – Introduction
    • CITR
    • Miscellaneous
  • ▸ 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
    • Attribution
  • ▸ Chapter 6 – Withdrawal or reduction of CITR
    • Introduction
    • Disposals
    • Repayment of loans
    • Receipts of value
    • CITR not due
    • Manner of withdrawal or reduction
  • ▸ Chapter 7 – Supplementary and general
    • Alternative finance arrangements
    • Miscellaneous
    • Definitions
▸ Part 8 – Other reliefs
  • ▸ Chapter 1 – Interest payments
    • The relief: introduction
    • Loans for plant or machinery
    • Loans for interests in close companies etc.
    • Loans for interests in employee-controlled companies
    • Loans for investing in partnerships
    • Loans for investing in co-operatives
    • Loans for paying inheritance tax
    • General and supplementary
  • ▸ Chapter 1A – Irrecoverable peer-to-peer loans
    • The relief
    • Supplementary provisions
    • Interpretation
  • ▸ Chapter 2 – Gift aid
    • The relief
    • Restrictions on associated benefits
    • Admission rights
    • Disqualified overseas gifts
    • Measures to ensure donor's liability not less than tax treated as deducted
    • Election to carry back relief
    • Supplementary
  • ▸ Chapter 3 – Gifts of shares, securities and real property to charities etc.
    • Entitlement to relief
    • Amount of relief
    • Value of net benefit to charity
    • Special provisions about qualifying interests in land
    • Supplementary
  • ▸ Chapter 4 – Annual payments ...
    • 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.
    • 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
    • Settled property
    • Settlors
    • Trustees
    • Sub-funds
    • Regulations
  • ▸ Chapter 3 – Special rates for trustees' income
    • Section 482 – Types of amount to be charged at special rates for trustees
    • 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 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 Schedule 2 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
    • Payments constituting income of beneficiary (other than employment income)
    • Payments constituting employment income of beneficiary
    • Tax pool
  • ▸ 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
    • Trustees' election in respect of income etc.
    • Absence of election and income treated as income of settlor: special rules
    • Application of property for non-heritage purposes: charge to tax
▸ Part 9A – Transactions in UK land
  • ▸ Introduction
    • Section 517A – Overview of Part
  • ▸ Amounts treated as profits of a trade
    • Section 517B – Disposals of land in the United Kingdom
    • Section 517C – Disposals of land: profits treated as trading profits
    • Section 517D – Disposals of property deriving its value from land in the United Kingdom
    • Section 517E – Disposals within section 517D: profits treated as trading profits
    • Section 517F – Profits and losses
  • ▸ Person to whom profits attributed
    • Section 517G – The chargeable person
  • ▸ Anti-fragmentation
    • Section 517H – Fragmented activities
  • ▸ Calculation of profit or gain on disposal
    • Section 517I – Calculation of surplus on a disposal of land
    • Section 517J – Apportionments
  • ▸ Arrangements for avoiding tax
    • Section 517K – Arrangements for avoiding tax
  • ▸ Exemptions
    • Section 517L – Gain attributable to period before intention to develop formed
    • Section 517M – Private residences
  • ▸ Other supplementary provisions
    • Section 517N – Tracing value
    • Section 517O – Relevance of transactions, arrangements, etc
  • ▸ Interpretation
    • Section 517P – "Another person"
    • Section 517Q – "Arrangement"
    • Section 517R – "Disposal"
    • Section 517S – "Land" and related expressions
    • Section 517T – References to realising a gain
    • Section 517U – Related parties
▸ Part 10 – Special rules about charitable trusts etc.
  • ▸ Introduction
    • Section 519 – Meaning of “charitable trust”
    • Section 518 – Overview of Part
  • ▸ 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 521A – Gifts under payroll deduction schemes: 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 529 – Exemption for profits from fund-raising events
    • 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 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
    • Section 538A – Claims in relation to gift aid relief etc.
  • ▸ Restrictions on exemptions
    • Section 541 – Attributing income to the non-exempt amount
    • Section 542 – How income is attributed to the non-exempt amount
    • Section 540 – The non-exempt amount
    • Section 539 – Restrictions on exemptions
  • ▸ 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 553 – Section 551: certain payments and benefits to be ignored
    • 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 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 10A – Alternative finance arrangements
  • ▸ Introduction
    • Section 564A – Introduction
    • Section 564B – Meaning of “financial institution”
  • ▸ Arrangements that are alternative finance arrangements
    • Section 564H – Provision not at arm's length: exclusion of arrangements from sections 564C to 564G
    • Section 564G – Investment bond arrangements
    • Section 564F – Profit share agency arrangements
    • Section 564E – Deposit arrangements
    • Section 564D – Diminishing shared ownership arrangements: initial acquisition
    • Section 564C – Purchase and resale arrangements
    • Section 564DA – Diminishing shared ownership arrangements: refinancing
  • ▸ Meaning of “alternative finance return”
    • Section 564L – Other arrangements
    • Section 564K – Diminishing shared ownership arrangements
    • Section 564J – Purchase and resale arrangements where return in foreign currency
    • Section 564I – Purchase and resale arrangements
  • ▸ Treatment of alternative finance return as interest etc.
    • Section 564M – Treatment of alternative finance return as interest for ITTOIA 2005
    • Section 564Q – Deduction of income tax at source under Part 15
    • Section 564P – Tax relief schemes and arrangements
    • Section 564O – Relief for some alternative finance return under Chapter 1 of Part 8 etc.
    • Section 564N – Alternative finance return under arrangements for trade or property business purposes
  • ▸ Special rules for investment bond arrangements
    • Section 564U – Arrangements not unit trust scheme or offshore fund
    • Section 564T – Treatment as securities
    • Section 564S – Treatment of bond-holder and bond-issuer
    • Section 564R – Treatment of discount
  • ▸ Other rules
    • Section 564Y – Provision not at arm's length: relevant return
    • Section 564X – Treatment of principal under profit share agency arrangements
    • Section 564W – Diminishing shared ownership arrangements not partnerships
    • Section 564V – Exclusion of alternative finance return from consideration for sale of assets
    • Section 564WA – Diminishing shared ownership arrangements: further provision in respect of refinancing
▸ 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 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
    • Manufactured dividends on UK shares
    • Manufactured interest on UK securities
    • Manufactured overseas dividends
    • Special cases
    • General regulation-making powers
    • Interpretation
  • ▸ Chapter 3 – Tax credits: stock lending arrangements and repos
    • Stock lending arrangements
    • Repos
    • Interpretation
  • ▸ Chapter 4 – Deemed manufactured payments
    • Stock lending arrangements
    • Repos
    • Interpretation
  • ▸ Chapter 5 – Price differences under repos
    • Main tax treatment
    • Additional tax treatment
    • Interpretation
    • Power to modify
  • ▸ 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 11ZA – Manufactured payments
  • Section 614ZA – Overview of Part
  • Section 614ZB – Key definitions
  • Section 614ZC – Treatment of payer of manufactured payment
  • Section 614ZD – Treatment of recipient of manufactured payment
▸ Part 11A – Leasing arrangements: finance leases and loans
  • ▸ Chapter 1 – Introduction
    • Introduction
    • Meaning of expressions about rent
  • ▸ Chapter 2 – Finance leases with return in capital form
    • Introduction
    • Leases to which this Chapter applies
    • Current lessor taxed by reference to accountancy rental earnings
    • Reduction of taxable rent by cumulative rental excesses
    • Relief for bad debts by reduction of cumulative rental excesses
    • Effect of disposals
    • Capital allowances: claw-back of major lump sum
    • Schemes to which this Chapter does not at first apply
  • ▸ Chapter 3 – Other finance leases
    • Introduction
    • Leases to which this Chapter applies
    • Current lessor taxed by reference to accountancy rental earnings
    • Application of provisions of Chapter 2 for purposes of this Chapter
  • ▸ Chapter 4 – Supplementary provisions
    • Section 614D – Pre-26 November 1996 schemes and post-25 November 1996 schemes
    • Section 614DA – Time apportionment where periods of account do not coincide
    • Section 614DB – Periods of account and related periods of account and tax years
    • Section 614DC – Connected persons
    • Section 614DD – Assets which represent the leased asset
    • Section 614DE – Parent undertakings and consolidated group accounts
    • Section 614DF – Assessments and adjustments
    • Section 614DG – Interpretation
▸ Part 12 – Accrued income profits
  • ▸ Chapter 1 – Introduction
    • Section 615 – Overview of Part
  • ▸ Chapter 2 – Accrued income profits and losses
    • Charge to tax
    • Securities to which Chapter applies
    • Transfers to which Chapter applies
    • Calculating accrued income profits and losses
    • The payments treated as made on transfers
    • Exception where there is a transfer to a legatee
    • Relief for losses
    • Excluded transferors and transferees
    • Further transactions treated as transfers
    • Excluded transfers
    • Special rules about some calculations
    • Nominees and trustees
    • Relief where transfer proceeds unremittable
    • Individuals to whom remittance basis applies
    • Interpretation
  • ▸ 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 12A – Sale and lease-back etc.
  • ▸ Chapter 1 – Payments connected with transferred land
    • Overview
    • Application of the Chapter
    • Relief: restriction and carrying forward
    • Certain deductions from earnings: restriction and carrying forward of relief
    • Interpretation etc.
  • ▸ Chapter 2 – New lease of land after assignment or surrender
    • Overview
    • Application of the Chapter
    • Taxation of consideration
    • Relief for rent under new lease
    • New lease treated as ending
    • Lease varied to provide for increased rent
    • Interpretation
  • ▸ Chapter 3 – Leased trading assets
    • Overview
    • Application of the Chapter
    • Relief: restriction and carrying forward
    • Interpretation
  • ▸ Chapter 4 – Leased assets: capital sums
    • Overview
    • Application of the Chapter
    • Charge to income tax
    • Obtaining of sum
    • Apportionment
    • Interpretation
▸ Part 13 – Tax avoidance
  • ▸ Chapter 1 – Transactions in securities
    • Introduction
    • Person liable to counteraction of income tax advantages
    • Procedure for counteraction of income tax advantages
    • Clearance procedure ...
    • Appeals
    • Supplementary
  • ▸ Chapter 2 – Transfer of assets abroad
    • Introduction
    • Charge where power to enjoy income
    • Charge where capital sums received
    • Charge where benefit received
    • Exemptions: no tax avoidance purpose or genuine commercial transaction
    • Value of certain benefits
    • General
    • Supplementary
  • ▸ Chapter 3 – Transactions in land
    • Introduction
    • Charge on gains from transactions in land
    • Further provisions relevant to the charge
    • Exemptions
    • Recovery of tax
    • Clearances and power to obtain information
    • Interpretation
  • ▸ Chapter 4 – Sales of occupation income
    • Introduction
    • Charge on sale of occupation income
    • Further provisions relevant to the charge
    • Exemption for sales of going concerns
    • Recovery of tax
    • Power to obtain information
    • Interpretation
  • ▸ Chapter 5 – Avoidance involving trading losses
    • Introduction
    • Individuals in partnership: recovery of excess relief
    • Individuals claiming relief for film-related trading losses
    • Individuals in partnership claiming relief for licence-related trading losses
  • ▸ 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 5AA – Disposals of income streams through partnerships
    • Section 809AAZA – Application of Chapter
    • Section 809AAZB – Relevant amount to be treated as income
  • ▸ Chapter 5B – Finance arrangements
    • Type 1 arrangements
    • Type 2 arrangements
    • Type 3 arrangements
    • Exceptions
    • Supplementary
  • ▸ Chapter 5C – Loan or credit transactions
    • Section 809CZA – Loan or credit transaction defined
    • Section 809CZB – Certain payments treated as yearly interest
    • Section 809CZC – Tax charged on income transferred
  • ▸ Chapter 5D – Disposals of assets through partnerships
    • Section 809DZA – Application of Chapter
    • Section 809DZB – Relevant amount to be treated as income
  • ▸ Chapter 5E – Disguised investment management fees
    • Section 809EZA – Disguised investment management fees: charge to income tax
    • Section 809EZB – Meaning of “management fee” in section 809EZA
    • Section 809EZC – Meaning of “carried interest” in section 809EZB
    • Section 809EZD – Sums treated as “carried interest” for purposes of section 809EZB
    • Section 809EZDA – Sums arising to connected persons other than companies
    • Section 809EZE – Interpretation of Chapter
    • Section 809EZF – Disguised investment management fees: anti-avoidance
    • Section 809EZG – Disguised investment management fees: avoidance of double taxation
    • Section 809EZH – Powers to amend Chapter
    • Section 809EZDB – Sums arising to connected company or unconnected person
  • ▸ Chapter 5F – Income-based carried interest
    • Income-based carried interest
    • Average holding period
    • Average holding period: disposals
    • Average holding period: derivatives and hedging
    • Average holding period: aggregation of acquisitions and disposals
    • Direct lending funds
    • Conditionally exempt carried interest
    • Supplementary
    • 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
    • Section 809ZE – “Capital payment”, “relevant capital payment” etc.
    • Section 809ZF – Further interpretation of section 809ZA etc.
    • Section 809ZFA – Consideration for taking over payment obligations as lessee treated as income
  • ▸ Chapter 7 – Avoidance involving obtaining tax relief for interest
    • Section 809ZG – Tax relief schemes and arrangements
  • ▸ Chapter 8 – Tainted charity donations
    • Introduction
    • Tainted donations
    • Removal of reliefs and imposition of charge to tax
    • Supplementary
▸ Part 14 – Income tax liability: miscellaneous rules
  • ▸ Chapter A1 – Remittance basis
    • Introduction
    • Application of remittance basis
    • Effect of section 809B, 809D or 809E applying
    • Remittance of income and gains: introduction
    • Remittance of income and gains: meaning of “remitted to the United Kingdom”
    • Remittance of income and gains: amount remitted
    • Remittance of income and gains: transfers from mixed funds
    • Remittance of income and gains: supplementary
    • Relief for money used to pay tax etc.
    • Business investment relief
    • Relief for certain UK services
    • Exempt property relief
    • Interpretation of Chapter
  • ▸ Chapter 1 – Limits on liability to income tax of non-UK residents
    • Introduction
    • Limit for non-UK resident individuals, trustees etc.
    • Limit for non-UK resident companies
    • The independent broker conditions
    • The independent investment manager conditions
    • Supplementary
  • ▸ 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 etc.
    • Section 834 – Residence of personal representatives
    • Section 835 – Residence rules for trustees
    • Section 835A – Residence of companies
  • ▸ Chapter 2A – Domicile
    • Section 835B – Domicile for income tax purposes of overseas electors
    • Section 835BA – Deemed domicile
  • ▸ Chapter 2B – UK representative of non-UK resident
    • Introduction
    • Branches and agencies
    • Persons who are not UK representatives
    • The independent broker conditions
    • The independent investment manager conditions
    • Supplementary
  • ▸ Chapter 2C – Income tax obligations and liabilities imposed on UK representatives (835T-835Y)
    • Section 835T – Introduction to Chapter
    • Section 835U – Obligations and liabilities of UK representative
    • Section 835V – Exceptions: notices and information
    • Section 835W – Exceptions: criminal offences and penalties etc
    • Section 835X – Indemnities
    • Section 835Y – Meaning of “independent agent”
  • ▸ Chapter 3 – Jointly held property
    • Section 836 – Jointly held property
    • Section 837 – Jointly held property: declarations of unequal beneficial interests
  • ▸ Chapter 3A – Banks etc in compulsory liquidation
    • Section 837A – Overview of Chapter
    • Section 837B – Application of Chapter
    • Section 837C – Charge to income tax on winding up receipts
    • Section 837D – Transfer of rights to payment
    • Section 837E – Allowable deductions
    • Section 837F – Election to carry back
    • Section 837G – Relationship of Chapter with other income tax provisions
    • Section 837H – Interpretation of Chapter
  • ▸ Chapter 4 – Other miscellaneous rules
    • Section 838 – Local authorities and local authority associations
    • Section 838A – Asbestos compensation settlements
    • 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 – UK Economic Interest Groupings and 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 – Meaning of “relevant investment” for purposes of section 876
    • Introduction
    • Duty to deduct sums representing income tax
    • Deposit-takers and relevant investments
    • Investments which are not relevant investments: non-UK resident beneficiaries
    • Investments which are not relevant investments
    • Supplementary
  • ▸ Chapter 3 – Deduction from certain payments of yearly interest
    • Duty to deduct sums representing income tax
    • Exceptions from duty to deduct
  • ▸ 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
    • Duty to deduct sums representing income tax
    • Payments which are payable gross
    • Deduction at source applications
    • Regulations
  • ▸ Chapter 6 – Deduction from annual payments and patent royalties
    • Introduction
    • Duty to deduct from annual payments
    • Duty to deduct from patent royalties
    • Supplementary
  • ▸ Chapter 7 – Deduction from other payments connected with intellectual property
    • Certain royalties etc where usual place of abode of owner is abroad
    • Proceeds of a sale of patent rights
  • ▸ Chapter 8 – Chapters 6 and 7: special provision in relation to royalties
    • Deduction at special rates
    • Discretion to make payments gross
    • Tax avoidance
  • ▸ Chapter 9 – Manufactured payments
    • Manufactured dividends
    • Manufactured interest
    • Manufactured overseas dividends
    • Repos
    • Supplementary
  • ▸ 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
    • Exception from duties to deduct for excepted payments
    • Excepted payments
    • Incorrect belief that payment is an excepted payment
  • ▸ 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
    • Section 943A – Treatment of cases involving double tax relief
    • Section 943B – The “foreign element” of a deemed deduction or deemed income
    • Section 943C – Calculation of trustees' double tax relief pool
    • Section 943D – Annual statements
  • ▸ 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
    • Returns of income tax
    • Collection and payment of income tax
    • Set-off
    • Assessments and errors
    • Supplementary
  • ▸ Chapter 16 – Collection: certain payments by other persons
    • Section 963 – Collection of income tax on certain payments by other persons
    • Section 963A – Power to make regulations modifying section 963
  • ▸ 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
    • Non-resident landlords
    • Real Estate Investment Trusts
  • ▸ Chapter 19 – General
    • Supplementary
    • Interpretation
▸ Part 16 – Income Tax Acts definitions etc.
  • ▸ Chapter 1 – Definitions
    • Section 989 – The definitions
    • Section 999 – Meaning of “local authority”
    • Section 998A – Meaning of “hire-purchase agreement”
    • Section 998 – Meaning of “grossing up”
    • Section 997 – Meaning of “generally accepted accounting practice” and related expressions
    • Section 996 – Meaning of “farming” and related expressions
    • Section 995 – Meaning of “control”
    • Section 994 – Meaning of “connected” persons: supplementary
    • Section 993 – Meaning of “connected” persons
    • Section 992 – Meaning of “company”
    • Section 991 – Meaning of “bank"
    • Section 990 – Meaning of “Act”
    • Section 988 – Overview of Chapter
    • 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 1006 – Meaning of “research and development”
    • Section 1005 – Meaning of “recognised stock exchange” etc.
    • Section 1007 – Meaning of “unit trust scheme”
    • Section 1007A – Meaning of “permanent establishment"
  • ▸ 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 1026 – Meaning of “non-qualifying income” for the purposes of section 1025
    • Section 1017 – Abbreviated references to Acts
    • Section 1025 – Meaning of “modified net income”
    • Section 1024 – Meaning of “gilt-edged securities”
    • Section 1023 – Meaning of “double taxation arrangements”
    • Section 1022 – Meaning of “debenture”
    • Section 1021 – Application of definitions of “connected” persons and “control”
    • Section 1020 – Claims and elections
    • Section 1019 – Meaning of “certificate of deposit”
    • Section 1018 – “Act” to include Scottish and Northern Ireland legislation in some cases
  • ▸ Final provisions
    • Section 1035 – Short title
    • Section 1034 – Commencement
    • Section 1033 – Extent
    • Section 1032 – Index of defined expressions
    • Section 1031 – Repeals and revocations
    • Section 1030 – Transitional provisions and savings
    • Section 1029 – Power to undo changes
    • Section 1028 – Power to make consequential provision
    • Section 1027 – Minor and consequential amendments
▸ Schedules
  • ▸ Schedule 1 Minor and consequential amendments (part 1-3)
    • Part 1 – Income and Corporation Taxes Act 1988 (paras 1-240)
    • Part 2 – Other enactments (paras 241-626)
    • Part 3 – Amendment having effect in relation to shares issued after 5 April 2007 (para 627)
  • ▸ Schedule 2 Transitionals and savings (Part 1-16)
    • Part 1 – General provisions (paras 1-9)
    • Part 2 – Changes in the law (para 10)
    • Part 3 – Rates at which income tax is charged (paras 11-13)
    • Part 4 – Personal reliefs (paras 14-17)
    • Part 5 – Losses (except losses on disposal of shares) (paras 18-37)
    • Part 6 – Losses on disposal of shares (paras 38-57A)
    • Part 7 – Enterprise investment scheme (para 58)
    • Part 8 – Venture capital trusts (paras 59-90)
    • Part 9 – Other reliefs (paras 91-101)
    • Part 10 – Special rules about settlements and trustees (paras 102-104)
    • Part 11 – Special rules about charitable trusts etc. (paras 105-107)
    • Part 12 – Manufactured payments and repos (paras 108-124)
    • Part 13 – Accrued income profits (paras 125-128)
    • Part 14 – Tax avoidance (paras 129-153)
    • Part 15 – Deduction of income tax at source (paras 154-170)
    • Part 16 – Other provisions (paras 171-172)
  • ▸ Schedule 3 Repeals and revocations (Part 1-2)
    • 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
Schedules / Schedule 2 Transitionals and savings (Part 1-16) / Part 11 – Special rules about charitable trusts etc. (paras 105-107)

Part 11 – Special rules about charitable trusts etc. (paras 105-107)

Contents

  • 105-106. Transactions with substantial donors Section commentary
  • 107. Non-charitable expenditure Section commentary

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