Income Tax Act 2007 Schedule 1 Part 2

Minor and consequential amendments to other enactments

Schedule 1 Part 2 (paragraphs 241–626) makes a wide range of minor and consequential amendments to other Acts and statutory instruments, updating cross-references so that they point to the corresponding provisions of the Income Tax Act 2007 (ITA 2007) rather than the older legislation (principally the Income and Corporation Taxes Act 1988) that ITA 2007 replaced.

• Cross-references in dozens of Acts — from the Taxes Management Act 1970 through to the Finance Act 2006 — are updated to point to the equivalent sections in ITA 2007, replacing references to provisions of ICTA 1988 and other earlier legislation.
• Certain provisions that became redundant on the enactment of ITA 2007 are repealed outright (for example, the building society regulations validation in section 53 of FA 1991, section 72 of FA 1991 on trading losses, and sections 119–130 of FA 2004 on film relief and partnership exit charges).
• New substantive provisions are inserted into other Acts where the rewrite required the separation of income tax and capital gains tax rules — notably new sections in TCGA 1992 dealing with share loss relief (section 125A), community investment tax relief identification rules (sections 151BA–151BC), treatment of trade losses and post-cessation expenditure as CGT losses (sections 261B–261E), repos and manufactured payments (sections 261F–261H, 263F–263I), charitable trust gains attribution (sections 256A–256B), European Economic Interest Groupings (section 285A), and a detailed rewrite of the connected persons rules in the Capital Allowances Act 2001 (new section 575).
• Terminology throughout the amended Acts is modernised to reflect ITA 2007 concepts — for example, "total income" becomes "net income" where appropriate, "rate applicable to trusts" becomes "trust rate", "from total income" becomes "in calculating net income", and definitions of terms such as "connected persons", "control", "tax year", "recognised stock exchange" and "charity" are redirected to the ITA 2007 definitions in section 989 and related provisions.