Income Tax (Trading and Other Income) Act 2005 section 21

Seconded employees

Section 21 provides a transitional rule ensuring that employees temporarily seconded to former Scottish self-governing schools can still qualify for the tax deduction under section 70, even though such schools were abolished on 1st April 2003.

• This paragraph applies where a trade's period of account began before 1st April 2003 and ended on or after 6th April 2005, and during that period an employee was temporarily made available to a Scottish self-governing school
• Self-governing schools as defined by the Self-Governing Schools etc. (Scotland) Act 1989 are still treated as "educational establishments" for the purposes of section 70, despite their abolition on 1st April 2003
• The original provision in section 86(5)(d) of ICTA was not rewritten into the 2005 Act because the school category no longer existed, but this transitional rule preserves its effect for straddling accounting periods
• The rule applies equally to professions and vocations as it does to trades