What was the purpose of section 225Q of the Income Tax (Trading and Other Income) Act 2005?

Section 225Q specified certain amounts that were excluded from the income tax charge on disguised interest under section 225O(1). It effectively provided relief or exemption for specified types of return, such as amounts already taxed under other provisions or those falling within defined safe harbours under United Kingdom law.

When was section 225Q omitted from United Kingdom legislation and by which Act?

Section 225Q was omitted from the Income Tax (Trading and Other Income) Act 2005 by Finance Act 2013, under section 89 and Schedule 31, paragraph 6(3). The repeal took effect from 17 July 2013. From that date, sections 225O, 225P, and 225Q all ceased to have operative effect under United Kingdom law.

Which legislation originally introduced section 225Q into the Income Tax (Trading and Other Income) Act 2005?

Section 225Q was originally inserted into the Income Tax (Trading and Other Income) Act 2005 by the Taxation (International and Other Provisions) Act 2010, under section 381(1) and Schedule 1, paragraph 2. It was subsequently amended by Finance Act 2013, Schedule 31, paragraph 15, before being fully omitted.

Is section 225Q still relevant for any current United Kingdom tax purposes?

Section 225Q is now of historical interest only. It has no operative effect for periods from 17 July 2013 onwards. However, accountants dealing with tax periods before that date may still need awareness of it. Any similar arrangements after repeal fall under the replacement legislative framework introduced by Finance Act 2013.

Income Tax (Trading and Other Income) Act 2005 section 225Q

Amounts excluded from section 225O(1)

Section 225Q specified certain amounts that were excluded from the charge on disguised interest under section 225O(1), but this section was removed from the legislation with effect from 17 July 2013.

Section 225Q provided exclusions from the disguised interest provisions contained in section 225O(1).
The section was originally inserted by the Taxation (International and Other Provisions) Act 2010.
It was subsequently amended by Finance Act 2013, Schedule 31, paragraph 15.
Sections 225O to 225Q were all omitted entirely by Finance Act 2013 (section 89 and Schedule 31, paragraph 6(3)), taking effect from 17 July 2013.

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