What power does section 526 of ITTOIA 2005 give the Treasury regarding personal portfolio bonds?

Section 526 grants the Treasury the authority to make regulations governing the administration of the tax charge on personal portfolio bonds. These regulations may amend or repeal provisions in the relevant Chapter of the Act or in Chapter 2 of Part 13 of ICTA, and may include transitional provisions or savings as needed.

Can the Treasury make different rules for different cases under section 526?

Yes, regulations made under section 526 may make different provision for different cases, different circumstances, or different time periods. They may also include incidental, supplemental, consequential, or transitional provisions. This flexibility allows the Treasury to tailor administrative requirements to specific types of bonds or insurers.

What is the practical effect of the regulation-making power in section 526?

In practice, the power in section 526 is primarily directed at making regulations about the duties of insurers in connection with the personal portfolio bond tax charge. Earlier regulations determining the amount of gain for income tax purposes have been rewritten in the Act, so the retained power focuses on insurer reporting and administrative obligations.

How does section 526 relate to the Personal Portfolio Bonds (Tax) Regulations and ICTA?

Many rules from the Personal Portfolio Bonds (Tax) Regulations regarding income tax gains have been rewritten in ITTOIA 2005. However, those regulations continue to apply for corporation tax purposes and for the duties of insurers under sections 552 to 552B of ICTA. Section 526 derives from section 553C of ICTA.

Income Tax (Trading and Other Income) Act 2005 section 526

Power to make regulations about personal portfolio bonds

Section 526 gives the Treasury a regulation-making power relating to the administration of the tax charge on personal portfolio bonds.

The Treasury may make regulations about administering the tax charge on personal portfolio bonds
Regulations may amend or repeal provisions in this Chapter or in Chapter 2 of Part 13 of ICTA
Different rules may be made for different cases, circumstances or time periods, including transitional provisions
In practice, this power is mainly used for regulations concerning the duties of insurers

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