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Income Tax (Trading and Other Income) Act 2005

▸ 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
    • Trades and trade profits
    • Starting and ceasing to trade
    • Trading income and property income
    • Trading allowance
    • Rent-a-room and qualifying care relief
    • Trading income provided through third parties
  • ▸ Chapter 3 – Trade profits: basic rules
    • Basis of accounting
    • Professions and vocations
    • Rules relating to calculation of profits
    • Animals kept for trade purposes
    • Rules relating to deductions
  • ▸ Chapter 3A – Trade Profits: Cash Basis
    • Eligibility
    • Elections under section 25A
    • Calculation of profits on cash basis
    • Overview of rest of Part 2
  • ▸ Chapter 4 – Trade profits: rules restricting deductions
    • Introduction
    • Cash basis accounting
    • Capital expenditure
    • Wholly and exclusively and losses rules
    • Bad and doubtful debts
    • Unpaid remuneration
    • Employee benefit contributions
    • Business entertainment and gifts
    • Car or motor cycle hire
    • Patent royalties
    • Interest payments
    • Social security contributions
    • Penalties and interest
    • Crime-related payments
    • Integral features
    • Rental rebates
  • ▸ Chapter 5 – Trade profits: rules allowing deductions
    • Introduction
    • Cash basis accounting
    • Pre-trading expenses
    • Subsistence expenses
    • Cash basis: interest payments
    • Incidental costs of obtaining finance
    • Tenants under taxed leases (paras 60-67)
    • Renewals
    • Payments for restrictive undertakings
    • Seconded employees
    • Contributions to agents' expenses
    • Counselling and retraining expenses
    • Redundancy payments etc.
    • Personal security expenses
    • Contributions to local enterprise organisations or urban regeneration companies
    • Contributions to flood and coastal erosion risk management projects
    • Scientific research
    • Expenses connected with patents, designs and trade marks
    • Export Credits Guarantee Department
    • Expenses connected with foreign trades
    • SAYE option schemes, CSOP schemes
    • Limited liability partnerships: salaried members
  • ▸ Chapter 5A – Trade Profits: Deductions Allowable at a Fixed Rate
    • Introduction
    • Expenditure on vehicles
    • Use of home for business purposes
    • Premises used both as home and business premises
  • ▸ Chapter 6 – Trade profits: receipts
    • Introduction
    • Cash basis accounting
    • Capital receipts
    • Debts released
    • Cash basis: value of stock and work in progress on cessation
    • Amounts received following earlier cessation
    • Reverse premiums
    • Assets of mutual concerns
    • Industrial development grants
    • Proceeds of insurance etc.
  • ▸ Chapter 6A – Trade Profits: Amounts not Reflecting Commercial Transactions
    • Section 106A – Professions and vocations
    • Section 106B – Application of Chapter
    • Section 106C – Amounts not reflecting commercial transactions
    • Section 106D – Capital receipts
    • Section 106E – Gifts to charities 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
    • The herd basis rules
    • Elections
    • Preventing abuse of the herd basis rules
    • Supplementary
  • ▸ Chapter 9 – Trade profits: sound recordings
    • Introduction
    • Expenditure treated as revenue in nature
    • Rules for allocating expenditure
    • Certified master versions: special rules for allocating expenditure
    • Certified master versions: limited-budget films
    • Interpretation of sections 138 to 140
    • Deferred income agreements
    • Election for sections 134 to 140 not to apply
    • Supplementary
  • ▸ Chapter 10 – Trade profits: certain telecommunication rights
    • Section 144A – Chapter not to apply where cash basis used
    • 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
    • Application of Chapter
    • Lessors under long funding finance leases
    • Lessors under long funding operating leases
    • Lessors under long funding finance or operating leases: avoidance etc
    • Lessees under long funding finance leases
    • Lessees under long funding operating leases
    • Interpretation of this Chapter
  • ▸ Chapter 11 – Trade profits: other specific trades
    • Cash basis accounting
    • Dealers in securities etc.
    • Persons authorised for purposes of FISMA 2000
    • Dealers in land etc.
    • Ministers of religion
    • Barristers and advocates
    • Mineral exploration and access
    • Persons liable to pool betting duty
    • Intermediaries treated as making employment payments
    • Managed service companies
    • Worker's services provided to public sector through intermediary
    • Waste disposal
    • Cemeteries and crematoria
    • Crematoria: niches, memorials and inscriptions
  • ▸ Chapter 11A – Trade profits: changes in trading stock
    • Introduction
    • Transfers of trading stock between trade and trader
    • Other disposals not made in the course of trade
    • Relationship with transfer pricing rules
  • ▸ Chapter 12 – Trade profits: valuation of stock and work in progress on cessation of trade
    • Valuation of trading stock
    • Valuation of work in progress
    • Supplementary
  • ▸ Chapter 13 – Deductions from profits: unremittable amounts
    • Section 187 – Professions and vocations
    • Section 188 – Application of Chapter
    • Section 188A – Chapter not to apply where cash basis used
    • 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 191A – Chapter not to apply where cash basis used
    • 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
    • Accounting date
    • The normal rules
    • Apportionment of profits
    • Overlap profits and losses
    • Rules where first accounting date shortly before end of tax year
    • Slight variations in accounting date
    • Special rules if accounting date changes
  • ▸ Chapter 16 – Averaging profits of farmers and creative artists
    • Section 221A – Claim not available where cash basis used
    • Section 222 – Circumstances in which claim for two-year averaging may be made
    • Section 221 – Claim for averaging of fluctuating profits
    • Section 223 – Adjustment of profits
    • Section 224 – Effect of adjustment
    • Section 225 – Effect of later adjustment of profits
    • Section 222A – Circumstances in which claim for five-year averaging may be made
  • ▸ Chapter 16ZA – Compensation for Compulsory Slaughter of Animals
    • Section 225ZA – Application of Chapter 16ZA
    • Section 225ZAA – Chapter not to apply where cash basis used
    • Section 225ZB – Right to make claim
    • Section 225ZC – Book value
    • Section 225ZD – Effect of claim for spreading profits
    • Section 225ZE – Adjustment: cessation of trading
    • Section 225ZF – Time limits etc for spreading claim
    • Section 225ZG – Interpretation
  • ▸ Chapter 16A – Oil Activities
    • Application of Chapter
    • Basic definitions
    • Oil valuation
    • Regional development grants
    • Tariff receipts etc.
    • Abandonment guarantees
    • Abandonment expenditure
    • Interest on repayment of APRT
    • Receipts arising from decommissioning
  • ▸ Chapter 17 – Adjustment income
    • Introduction
    • Adjustment on change of basis
    • Treatment of adjustment income and adjustment expense
    • Expenses previously brought into account
    • Realising or writing off assets
    • Mark to market
    • Spreading of adjustment income: barristers and advocates
    • Spreading of adjustment income on leaving cash basis
    • Supplementary
  • ▸ Chapter 17A – Cash Basis: Adjustments for Capital Allowances
    • Introduction
    • Adjustments on entering cash basis
    • Successions where predecessor and successor are connected persons
  • ▸ Chapter 18 – Post-cessation receipts
    • Introduction
    • Charge to tax on post-cessation receipts
    • Meaning of “post-cessation receipts”
    • Sums treated as post-cessation receipts
    • Sums that are not post-cessation receipts
    • Deductions
    • Reliefs
  • ▸ 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
    • Basic meaning of UK and overseas property business
    • Generating income from land
  • ▸ Chapter 3 – Profits of property businesses: basic rules
    • Charge to tax on profits of a property business
    • Basis of calculation of profits
    • Calculation of profits : application of trading income rules
    • Calculation of profits: other general rules
    • Tax reductions for non-deductible costs of a dwelling-related loan
    • Apportionment of profits
  • ▸ Chapter 4 – Profits of property businesses: lease premiums etc.
    • Introduction
    • Amounts treated as receipts: leases
    • Other amounts treated as receipts
    • Additional calculation rule for reducing certain receipts
    • Deductions in relation to certain receipts
    • Limit on effect of additional calculation rule and deductions
    • Relationship with ICTA
    • Certain administrative provisions
    • Determinations affecting liability of more than one person
    • Effective duration of lease
    • Other interpretative provisions
  • ▸ Chapter 5 – Profits of property businesses: other rules about receipts and deductions
    • Cash basis: application of Chapter
    • Property businesses using cash basis
    • Property businesses that use, or have used, cash basis
    • Property allowance
    • Furnished accommodation: receipts and deductions
    • Furnished accommodation: wear and tear allowance
    • Furnished accommodation: rent-a-room relief
    • Treatment of receipts on acquisition of business
    • Reverse premiums as receipts
    • Deduction for replacement of domestic items
    • Deductions for expenditure on energy-saving items
    • Deductions for expenditure on sea walls
    • Mineral royalties
    • Apportionments on sale of land
    • Mutual business
  • ▸ Chapter 6 – Commercial letting of furnished holiday accommodation
    • Introduction
    • Definition
    • Separate profit calculations
  • ▸ Chapter 7 – Adjustment income
    • Adjustment on change of basis
    • Treatment of adjustment income and adjustment expense
    • Spreading of adjustment income on leaving cash basis
  • ▸ Chapter 7A – Cash basis: adjustments for capital allowances
    • Section 334B – "Entering the cash basis"
    • Section 334C – Unrelieved qualifying expenditure
    • Section 334D – Assets not fully paid for
    • Section 334E – Effect of election where predecessor and successor are connected persons
  • ▸ 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
    • Management expenses of owner of mineral rights
    • Mineral royalties
  • ▸ Chapter 9 – Rent receivable for UK electric-line wayleaves
    • Charge to tax on rent receivable for UK electric-line wayleaves
  • ▸ Chapter 10 – Post-cessation receipts
    • Charge to tax on post-cessation receipts
    • Meaning of “post-cessation receipts”
    • Supplementary
  • ▸ 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
    • Section 368A – Interpretation of special rules for temporary non-residents
  • ▸ Chapter 2 – Interest
    • Charge to tax on interest
    • Other income taxed as interest
  • ▸ Chapter 2A – Disguised Interest
    • Section 381A – Charge to tax on disguised interest
    • Section 381B – Income charged
    • Section 381C – Person liable
    • Section 381D – Avoidance of double taxation
    • Section 381E – Exception for returns from certain shares
  • ▸ Chapter 3 – Dividends etc. from UK resident companies and tax treated as paid in respect of certain distributions
    • Introduction
    • Charge to tax on dividends and other distributions
    • Purchase by company of exempt employee shareholder shares
    • Amounts treated as dividends
    • Shares in Schedule 2 share incentive plans (“SIPs”)
    • Other amounts treated as distributions
    • ... Payment and deduction of tax
    • Anti-avoidance
  • ▸ Chapter 4 – Dividends from non-UK resident companies
    • Charge to tax on dividends from non-UK resident companies
    • Shares in Schedule 2 share incentive plans (“SIPs”)
    • Anti-avoidance
  • ▸ 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 410A – Conversion etc. of bonus share capital
    • Section 411 – Income charged
    • Section 412 – Cash equivalent of share capital
    • Section 413 – Person liable
    • Section 413A – Temporary non-residents
    • Section 414 – Income tax treated as paid
    • Section 414A – Interpretation of Chapter
  • ▸ 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 420A – Temporary non-residents
    • Section 421 – Income tax treated as paid
    • Section 421A – Power to obtain information
  • ▸ 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
    • Deeply discounted securities
    • Disposals
    • Calculating profits
    • Special rules for strips of government securities
    • Special rules for corporate strips
    • Special rules for listed securities held since 26th March 2003
    • Trustees
    • Miscellaneous and supplementary
  • ▸ Chapter 9 – Gains from contracts for life insurance etc.
    • Charge to tax under Chapter 9
    • Person liable etc.
    • Policies and contracts to which Chapter 9 applies
    • When chargeable events occur: general
    • Calculating gains: general
    • Part surrenders – and assignments: periodic calculations and excess events
    • Transaction-related calculations and part surrender or assignment events
    • Personal portfolio bonds
    • Reductions from gains
    • Income tax treated as paid and reliefs
    • Deficiencies
    • Rebated or reinvested commission
    • Supplementary
  • ▸ 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
    • When disposals involve guaranteed returns
    • When disposals of futures and options occur
    • Losses
    • Trustees
    • 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
    • Section 577A – Territorial scope of Part 5 charges: receipts from intellectual property
  • ▸ Chapter 2 – Receipts from intellectual property
    • Introduction
    • Charge to tax on non-trading income from intellectual property
    • Disposals of know-how
    • Sales of patent rights
    • Relief from income tax on patent income
    • Payments received after deduction of tax
    • Supplementary
  • ▸ Chapter 2A – Offshore receipts in respect of intangible property
    • Charge to tax on offshore receipts in respect of intangible property
    • Exemptions
    • Recovery of tax from person in same control group
    • Meaning of “control group” and “related person”
    • General
    • Interpretation: general
  • ▸ 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 or family
    • Charge to tax under Chapter 5
    • Income charged and person liable
    • Rules for calculating income
    • Income treated as income of settlor: retained interests
    • Income treated as income of settlor: relevant children
    • Capital sums treated as income of settlor: trustees' payments
    • Trustees' payments: further provisions
    • Capital sums treated as income of settlor: connected bodies
    • Benefits matched with protected foreign-source income
    • Settlements by two or more settlors
    • Other supplementary provisions
  • ▸ Chapter 6 – Beneficiaries' income from estates in administration
    • Charge to tax on estate income
    • Types of estate income
    • Income charged and person liable
    • Basic amount of estate income: general calculation rules
    • Further provisions for calculating estate income relating to absolute interests
    • Special rules for successive interests
    • Relief where foreign estates have borne UK income tax
    • General
  • ▸ 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
    • Section 689A – Temporary non-residents
▸ 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 695A – Investment plans for children
    • 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
    • Section 694A – Deceased investors
  • ▸ 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
    • Immediate needs annuities
  • ▸ Chapter 8 – Other annual payments
    • Certain annual payments by individuals
    • Periodical payments of personal injury damages etc.
    • Health and employment insurance payments
    • Payments to adopters
    • Payments by persons liable to pool betting duty
  • ▸ Chapter 9 – Other income
    • Interest only income
    • Income from commercial occupation of woodlands
    • Housing grants
    • Schedule 2 share incentive plan distributions
    • Foreign income of consular officers and employees
    • Income of non-UK residents from certain securities
    • Other
  • ▸ Chapter 10 – General
    • Section 783 – General disregard of exempt income for income tax purposes
▸ Part 6A – Income charged under this Act: trading and property allowances
  • ▸ Chapter 1 – Trading allowance
    • Introduction
    • Basic definitions
    • Full relief
    • Partial relief
    • Elections
    • Exclusions from relief
    • Interpretation
  • ▸ Chapter 2 – Property allowance
    • Introduction
    • Basic definitions
    • Relief if relevant property income does not exceed property allowance
    • Relief if relevant property income exceeds property allowance
    • Elections
    • Exclusions from relief
    • Interpretation
▸ Part 7 – Income charged under this Act: rent-a-room and qualifying care relief
  • ▸ Chapter 1 – Rent-a-room relief
    • Introduction
    • Basic definitions
    • Individual's limit
    • Relief if amount does not exceed limit
    • Alternative calculation of profits if amount exceeds limit
    • Elections
    • Interpretation
  • ▸ Chapter 2 – Qualifying care relief
    • Introduction
    • Basic definitions
    • Individual's limit
    • Relief if amount does not exceed limit
    • Alternative calculation of profits if amount exceeds limit
    • Periods of account not ending on 5th April
    • Capital allowances for foster carers carrying on trade
    • 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
    • Relief for delayed remittances (835-837)
  • ▸ 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
  • ▸ Chapter 5 – Relief for new residents on foreign income
    • Section 845A – Claim for relief for qualifying new residents
    • Section 845B – Qualifying new residents
    • Section 845C – Effect of claim, foreign employment election or foreign gain claim on losses
    • Section 845D – Effect of claim, foreign employment election or foreign gain claim: costs of dwelling-related loan
    • Section 845E – Effect of claim, foreign employment election or foreign gain claim on personal allowance etc
    • Section 845F – Effect of claim on relief for contributions to registered pension schemes
    • Section 845G – Foreign income relief ignored for purposes of determining adjusted net income
    • Section 845H – Qualifying foreign income
    • Section 845I – Disqualified income
    • Section 845J – Performance income
▸ Part 9 – Partnerships
  • ▸ Introduction
    • Section 848A – Bare trusts
    • Section 847 – General provisions
    • Section 848 – Assessment of partnerships
    • Section 846 – Overview of Part 9
  • ▸ Calculation of partners' shares
    • Section 851 – Calculations etc. where firm has other income or losses
    • 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 850C – Excess profit allocation to non-individual partners
    • Section 850D – Excess profit allocation: cases involving individuals who are not partners
    • Section 850E – Payments by B out of the excess part of B’s profit share
  • ▸ Firms with trading income
    • Section 852A – Notional trades: indirect partners
    • 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 855A – Notional business: indirect partners
    • 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 863G – Anti-avoidance
    • 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
    • Section 863A – Limited liability partnerships: salaried members
    • Section 863B – Condition A
    • Section 863C – Condition B
    • Section 863D – Condition C
    • Section 863E – M’s contribution to the limited liability partnership: the basic calculation
    • Section 863F – M’s contribution to the limited liability partnership: deemed contributions
    • Section 860 – Adjustment income
    • Section 859 – Special provisions about farming and property income
  • ▸ Alternative investment fund managers
    • Section 863H – Election for special provision for alternative investment fund managers to apply
    • Section 863I – Allocation of profit to the AIFM firm
    • Section 863J – Vesting of remuneration represented by the allocated profit
    • Section 863K – Vesting statements
    • Section 863L – The AIFMD remuneration guidelines
▸ Part 10 – General provisions
  • ▸ Chapter 1 – Introduction
    • Section 864 – Overview of Part 10
  • ▸ Chapter 2 – General calculation rules etc.
    • Unpaid remuneration
    • Employee benefit contributions
    • Business entertainment and gifts
    • Social security contributions
    • Penalties, interest and VAT surcharges and interest
    • Crime-related payments
    • Apportionment of profits
    • Calculation of losses
  • ▸ Chapter 3 – Supplementary and general provisions
    • Orders and regulations
    • Interpretation
    • General and final
▸ Schedules
  • ▸ Schedule 1 Consequential amendments
    • Part 1 – Income and Corporation Taxes Act 1988 (paras 1-352)
    • Part 2 – Other enactments (paras 353-659)
  • ▸ Schedule 2 Transitionals and savings etc.
    • Part 1 – General provisions (paras 1-10)
    • Part 2 – Changes in the law (para 11)
    • Part 3 – Trading income (paras 12-61)
    • Part 4 – Property income (paras 62-77)
    • Part 5 – Savings and investment income: general (paras 78-95)
    • Part 6 – Savings and investment income: insurance contracts and policies made before certain dates (paras 96-118)
    • Part 7 – Savings and investment income: gains from contracts for life insurance etc. (personal portfolio bonds) (paras 119-128)
    • Part 8 – Miscellaneous income (paras 129-137)
    • Part 9 – Exempt income (paras 138-148)
    • Part 10 – Foster-care relief (para 149)
    • Part 11 – Foreign income: special rules (paras 150-153)
    • Part 12 – Other provisions (paras 154-161)
  • ▸ Schedule 3 Repeals and revocations
    • 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.
Part 5 – Miscellaneous income / Chapter 5 – Settlements: amounts treated as income of settlor or family / Capital sums treated as income of settlor: connected bodies

Capital sums treated as income of settlor: connected bodies

Contents

  • Section 641 – Capital sums paid to settlor by body connected with settlement Section commentary
  • Section 642 – Exception for certain loans or repayments of loans Section commentary
  • Section 643 – Interpretation of sections 641 and 642 Section commentary

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