What was the purpose of section 556 of the Income Tax (Trading and Other Income) Act 2005?

Section 556 originally identified the income subject to a tax charge under Chapter 12 of the Income Tax (Trading and Other Income) Act 2005. Chapter 12 comprised sections 555 to 569 and dealt with a specific category of chargeable income within United Kingdom tax law.

When was section 556 of ITTOIA 2005 repealed and by which legislation?

Section 556 was repealed by Finance Act 2013, specifically through section 28 and Schedule 12, paragraph 13(2). The repeal took effect from the 2013–14 tax year onwards. The entire Chapter 12, sections 555 to 569, was omitted from the legislation at the same time.

Does section 556 of ITTOIA 2005 still have any operative effect?

No, section 556 no longer has any operative effect. Since its removal from the 2013–14 tax year onwards, any income previously falling within its scope is no longer charged under these provisions. Taxpayers must consider other applicable provisions of the tax legislation instead.

What happens to income that previously fell within the scope of Chapter 12 of ITTOIA 2005?

From 6 April 2013 onwards, income that would previously have been identified and charged under section 556 and Chapter 12 must be considered under other applicable provisions of United Kingdom tax legislation, as the entire charging mechanism in Chapter 12 has been removed.

Income Tax (Trading and Other Income) Act 2005 section 556

Income charged

Section 556 identified the income subject to charge under the provisions of Chapter 12, but was removed from the legislation with effect from the 2013–14 tax year onwards.

Section 556 was part of Chapter 12 (sections 555–569) of the Income Tax (Trading and Other Income) Act 2005, which dealt with a specific category of chargeable income.
The entire Chapter 12, including section 556, was omitted from the legislation by Finance Act 2013.
The repeal took effect from the 2013–14 tax year and applies to all subsequent tax years.
The removal was enacted through section 28 and Schedule 12, paragraph 13(2) of Finance Act 2013.

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