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UK Act of Parliament
2005
United Kingdom
Income Tax (Trading and Other Income) Act 2005
At a glance
Enforced by
What's here
17 compliance obligations, 23 practical guides across 6 topics · 30 journeys · 1 statutory instrument
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Trader 9
- Any Person 7
- Employer 1
Step-by-step journeys using this legislation
Walkthroughs that take you from a real business situation to compliance.
Stop your sole trader business
- 3 steps
Self Assessment quick compliance check
- 2 steps
Open a shop
- 1 step
Set up a limited company
- 1 step
Transfer ownership of your business
- 1 step
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Direct — cites this Act
2 guidesSupporting — topic alignment
16 guidesMentioned in related content
5 guidesOther Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Traders also bound by 826 other Acts (top 5 shown)
- Value Added Tax Regulations 1995 1995 413 duties
- Companies Act 2006 2006 243 duties
- The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 2008 114 duties
- Insolvency (England and Wales) Rules 2016 2016 62 duties
- Building Societies Act 1986 1986 56 duties
Any Person also bound by 2338 other Acts (top 5 shown)
- Human Medicines Regulations 2012 2012 169 duties
- Merchant Shipping Act 1995 1995 144 duties
- Insolvency (England and Wales) Rules 2016 2016 101 duties
- Road Traffic Act 1988 1988 95 duties
- Air Navigation Order 2016 2016 95 duties
Employers also bound by 694 other Acts (top 5 shown)
- The Income Tax (Pay As You Earn) Regulations 2003 2003 236 duties
- Provision and Use of Work Equipment Regulations 1998 1998 120 duties
- TULRCA 1992 1992 72 duties
- Employment Rights (Northern Ireland) Order 1996 (current NI employment law) 1996 52 duties
- Income Tax (Earnings and Pensions) Act 2003 2003 50 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part 1 — Overview
Browse 2 other sections in this Part — procedural / definitional / commencement
Overview of Act
Overview of priority rules
Part 2 — Trading income
Retraining courses: recovery of tax
- Notify HMRC about retraining course condition failures Employer
Excluded cases
Amended 3 timesIndustrial development grants
Amended 2 timesGifts of trading stock to charities etc.
Amended 8 timesHerd basis elections
- Make a herd basis election for your production herd on time Trader
Information if election made
Amended 1 timeExpenditure to which this Chapter applies
Amended 6 timesChapter not to apply where cash basis used
Amended 6 timesMeaning of “film” and related expressions
Amended 1 timeMeaning of “original master version” and “certified master version”
Amended 3 timesMeaning of “relevant period”
Amended 1 timeExpenditure treated as revenue in nature
Amended 1 timeAllocation of production or acquisition expenditure to relevant periods
Amended 3 timesCertified master versions: production expenditure
Amended 6 timesCertified master versions: acquisition expenditure
Amended 6 timesCertified master versions: production expenditure on limited-budget films
Amended 9 timesCertified master versions: acquisition expenditure on limited-budget films
Amended 14 times“Disqualifying deduction”
Amended 14 times“Total production expenditure in respect of the original master version”
Amended 2 timesWhen expenditure is incurred
Amended 1 timeDeferred income agreements which exist when deduction made
Amended 1 timeMeaning of “deferred income agreement in respect of a film”
Amended 1 timeDeferred income agreements entered into after deduction made
Amended 1 timeMeaning of the “net excess relief”
Amended 1 timeSections 142A to 142D: time of entry into an agreement
Amended 1 timeMeaning of “relevant telecommunication right”
Amended 1 timeLessee under long funding finance lease: limit on deductions
- Limit tax deductions for long funding finance lease payments Any Person
Taxation of amounts taken to reserves
Amended 2 timesConversion etc. of securities held as circulating capital
Amended 2 timesLevies and repayments under FISMA 2000
Amended 5 timesRelief in respect of mineral royalties
Amended 1 timeLease premiums etc: reduction of receipts
Amended 1 timeAlternative basis of calculation in early years of practice
Amended 1 timePayments by persons liable to pool betting duty
Amended 1 timeSite preparation expenditure: supplementary
Amended 2 timesSite restoration payments
Amended 4 timesDeduction for capital expenditure
Amended 3 timesAllocation of ancillary capital expenditure
Amended 1 timeCosts of the building
- Calculate building costs for tax deduction purposes Trader
Valuation of trading stock on cessation
Amended 1 time- Value your trading stock when closing your business Any Person
Basis of valuation of trading stock
Amended 2 timesSale basis of valuation: sale to unconnected person
Amended 1 timeSale basis of valuation: sale to connected person
Amended 1 timeSale basis of valuation: election by connected persons
Amended 1 timeConnected persons
Amended 1 timeCost to buyer of stock valued on sale basis of valuation
Amended 2 timesBasis of valuation of work in progress
Amended 2 timesDetermination of questions ...
Amended 1 timeRelief for unremittable amounts
- Claim tax relief for unremittable foreign trade income Trader
Disposal of know-how as part of disposal of all or part of a trade
Amended 2 timesApportionment etc. of profits to basis periods
Amended 2 timesConditions for basis period to end with new accounting date
Amended 3 timesCommercial reasons for change of accounting date
Amended 8 timesDeduction for overlap profit on change of accounting date
Amended 1 timeClaim for averaging of fluctuating profits
Amended 4 timesClaim not available where cash basis used
Amended 4 timesCircumstances in which claim for two-year averaging may be made
Amended 7 timesCircumstances in which claim for five-year averaging may be made
Amended 7 timesAdjustment of profits
Amended 3 timesEffect of adjustment
Amended 2 timesEffect of later adjustment of profits
Amended 1 timeMeaning of “oil extraction activities”
Amended 1 timeMeaning of “oil rights”
Amended 1 timeMeaning of “ring fence income”
Amended 1 timeMeaning of “ring fence trade”
Amended 1 timeOther definitions
Amended 1 timeValuation where market value taken into account under section 2 of OTA 1975
Amended 1 timeValuation where disposal not sale at arm's length
Amended 1 timeValuation where excess of nominated proceeds
Amended 1 timeValuation where relevant appropriation but no disposal
Amended 1 timeValuation where appropriation to refining etc
Amended 1 timeReduction of expenditure by reference to regional development grant
Amended 1 timeAdjustment as a result of regional development grant
Amended 1 timeTariff receipts etc
Amended 1 timeExpenditure on abandonment guarantees
Amended 1 timeRelief for reimbursement expenditure under abandonment guarantees
Amended 1 timePayment under abandonment guarantee not immediately applied
Amended 1 timeAmounts excluded from section 225O(1)
Amended 1 timeIntroduction to section 225S
Amended 1 timeRelief for expenditure incurred by a participator in meeting defaulter's abandonment expenditure
Amended 1 timeReimbursement by defaulter in respect of certain abandonment expenditure
Amended 1 timeInterest on repayment of APRT
Amended 1 timeReceipts arising from decommissioning
Amended 1 timeApplication of Chapter 16ZA
Amended 1 timeChapter not to apply where cash basis used
Amended 1 timeRight to make claim
Amended 1 timeBook value
Amended 1 timeEffect of claim for spreading profits
Amended 1 timeAdjustment: cessation of trading
Amended 1 timeTime limits etc for spreading claim
Amended 1 time- Claim for spreading profits for tax purposes Trader
Interpretation
Amended 1 timeChapter not to apply where cash basis used
Amended 1 timeApplication of Chapter
Amended 3 timesApplication of Chapter where cash basis used
Amended 3 timesCash basis treatment: full relief under Chapter 1 of Part 6A (trading allowance)
Amended 3 timesApplication of Chapter where section 227B applies
Amended 3 timesIncome charged
Amended 1 timeTreatment of adjustment income
Amended 6 timesCases where adjustment not required until assets realised or written off
Amended 2 timesChange from realisation basis to mark to market
Amended 2 timesSpreading on ending of exemption for barristers and advocates
Amended 1 timeElection to accelerate charge under section 238
Amended 1 timeSpreading on leaving cash basis
Amended 1 timeElection to accelerate charge under section 239A
Amended 1 timeExtent of charge to tax
Amended 2 timesBasic meaning of “post-cessation receipt”
Amended 5 timesOther rules about what counts as post-cessation receipts
Amended 1 timeDebts paid after cessation
Amended 2 timesDebts released after cessation
Amended 1 timeReceipts relating to post-cessation expenditure
Amended 4 timesAllowable deductions
Amended 4 timesTreatment of post-cessation receipts
Amended 2 timesMeaning of “statutory insolvency arrangement”
Amended 4 timesBrowse 308 other sections in this Part — procedural / definitional / commencement
Overview of Part 2
Provisions which must be given priority over Part 2
Charge to tax on trade profits
Territorial scope of charge to tax
Arrangements for avoiding tax
Trade of dealing in or developing UK land
Income charged
Apportionment etc of profits to tax year
Rule if trader starts to carry on trade after 31 March
Rule if there is a late accounting date
Election to disapply late accounting date rules
Person liable
Farming and market gardening
Commercial occupation of land other than woodlands
Commercial occupation of woodlands
Profits of mines, quarries and other concerns
Visiting performers
Visiting performers: supplementary
Divers and diving supervisors
Oil extraction and related activities
Voluntary office-holders: compensation for lost profits
Payments to company directors
Professionals in practice: incidental income from an office or employment
Effect of becoming or ceasing to be a UK resident
Effect of company starting or ceasing to be within charge to income tax
Tied premises
Caravan sites where trade carried on
Surplus business accommodation
Payments for wayleaves
Trading allowance
Rent-a-room and qualifying care relief
Application of section 23E: conditions
Meaning of “relevant benefit”
Meaning of “qualifying third party payment”
Other definitions
Tax treatment of relevant benefits
Relevant benefits: persons other than T
Anti-avoidance
Double taxation
Tax treatment of carried interest
Election to disapply section 23I
Location of trade treated as carried on under section 23I etc
Carried interest arising where individual deceased
Temporary non-UK residents: tax treatment of accrued carried interest gains
Permitted deduction etc
Carried interest: anti-avoidance
Carried interest: avoidance of double taxation
Definitions
Professions and vocations
Cash basis to apply by default
Generally accepted accounting practice
Cash basis for small businesses
Excluded trades
Election for profits to be calculated in accordance with GAAP
Losses calculated on same basis as profits
Receipts and expenses
Items treated under CAA 2001 as receipts and expenses
Money's worth
Interest
Animals kept for trade purposes
Relationship between rules prohibiting and allowing deductions
Conditions to be met for profits to be calculated on cash basis
Relevant maximum
Excluded persons
Effect of election under section 25A
Calculation of profits on cash basis
Overview of rest of Part 2 as it applies to cash basis
Professions and vocations
Application of Chapter to the cash basis
Capital expenditure
Cash basis: capital expenditure
Expenses not wholly and exclusively for trade and unconnected losses
Bad and doubtful debts
Unpaid remuneration
Unpaid remuneration: supplementary
Restriction of deductions
Making of “employee benefit contributions”
Provision of qualifying benefits
Timing and amount of certain qualifying benefits
Provision or payment out of employee benefit contributions
Profits calculated before end of 9 month period
Interpretation of sections 38 to 44
Business entertainment and gifts: general rule
Business entertainment: exceptions
Business gifts: exceptions
Car ... hire
Car ... hire: supplementary
Hiring cars (but not motor cycles) with low carbon dioxide emissions
Short-term hiring in and long-term hiring out
Connected persons: application of section 48
Patent royalties
Cash basis: interest payments on loans
Exclusion of double relief for interest
Social security contributions
Penalties and interest
Crime-related payments
Expenditure on integral features
Rental rebates
Professions and vocations
Application of Chapter to the cash basis
Pre-trading expenses
Expenses incurred by traders on food and drink
Cash basis: interest payments on loans
Incidental costs of obtaining finance
Convertible loans and loan stock etc.
Tenants under taxed leases: introduction
Tenants occupying land for purposes of trade treated as incurring expenses
Limit on deductions if tenant entitled to mineral extraction allowance
Tenants dealing with land as property employed for purposes of trade
Restrictions on section 61 expenses: lease premium receipts
Restrictions on section 61 expenses: lease of part of premises
Corporation tax receipts under ICTA treated as taxed receipts
Restrictions on section 61 expenses: corporation tax receipts under ICTA
Replacement and alteration of trade tools
Payments for restrictive undertakings
Employees seconded to charities and educational establishments
Educational establishments
Payroll deduction schemes: contributions to agents' expenses
Counselling and other outplacement services
Retraining courses
Redundancy payments and approved contractual payments
Payments in respect of employment wholly in employer's trade
Payments in respect of employment in more than one capacity
Additional payments
Additional payments: change in the persons carrying on the trade
Payments made by the Government
Personal security expenses
Contributions to local enterprise organisations or urban regeneration companies
Meaning of “local enterprise organisation”
Approval of local enterprise agencies
Supplementary provisions with respect to approvals
Meaning of “urban regeneration company”
Contributions to flood and coastal erosion risk management projects
Interpretation of section 86A
Expenses of research and development
Payments to research associations, universities etc.
Expenses connected with patents
Expenses connected with designs or trade marks
Payments to Export Credits Guarantee Department
Expenses connected with foreign trades
Allocation of expenses
Family expenses
Costs of setting up SAYE option scheme or CSOP scheme
Deductions in relation to salaried members
Professions and vocations
Provisions not applicable to certain firms
Expenditure on vehicles
Excluded vehicles
The appropriate mileage amount
Definitions of types of vehicle
Use of home for business purposes
Premises used both as a home and as business premises
Professions and vocations
Application of Chapter to the cash basis
Capital receipts
Capital receipts under, or after leaving, cash basis
Section 96A: supplementary provision
Debts incurred and later released
Cash basis: value of trading stock on cessation of trade
Cash basis: value of work in progress on cessation of profession or vocation
Acquisition of trade: receipts from transferor's trade
Reverse premiums
Tax treatment of reverse premiums
Arrangements not at arm's length
Connected persons and property arrangements
Distribution of assets of mutual concerns
Sums recovered under insurance policies etc.
Professions and vocations
Application of Chapter
Amounts not reflecting commercial transactions
Capital receipts
Gifts to charities etc
Professions and vocations
Receipt by donor or connected person of benefit attributable to certain gifts
Meaning of “designated educational establishment”
Election for application of herd basis rules
Herd basis rules not to apply where cash basis used
Meaning of “animal”, “herd”, “production herd” etc.
Other interpretative provisions
Initial cost of herd and value of herd
Addition of animals to herd
Replacement of animals in herd
Amount of receipt if old animal slaughtered under disease control order
Sale of animals from herd
Sale of whole or substantial part of herd
Acquisition of new herd begun within 5 years of sale
Section 120: sale for reasons outside farmer's control
Replacement of part sold begun within 5 years of sale
Section 122: sale for reasons outside farmer's control
Five year gap in which no production herd kept
Slaughter under disease control order
Preventing abuse of the herd basis rules
Further assessment etc. if herd basis rules apply
Application of provisions about certified master versions
Certified master versions: preliminary expenditure
Election for sections 134 to 140 not to apply
Meaning of “genuinely intended for theatrical release”
Chapter not to apply where cash basis used
Professions and vocations
Expenditure and receipts treated as revenue in nature
Credits or debits arising from revaluation
Lessor under long funding finance lease: rental earnings
Lessor under long funding finance lease: exceptional items
Lessor under long funding finance lease making termination payment
Lessor under long funding operating lease: periodic deduction
“Starting value”: general
“Starting value” where plant or machinery originally unqualifying
Long funding operating lease: lessor's additional expenditure
Determination of remaining residual value resulting from lessor's first additional expenditure
Determination of remaining residual value resulting from lessor's further additional expenditure
Lessor under long funding operating lease: termination of lease
Cases where ss. 148A to 148F do not apply: plant or machinery held as trading stock
Cases where ss. 148A to 148F do not apply: lessor also lessee under non-long funding lease
Cases where ss. 148A to 148F do not apply: other avoidance
Cases where ss 148A to 148F do not apply: films
Lessee under long funding finance leases: right-of-use leases
Lessee under long funding finance lease: termination
Lessee under long funding operating lease
Interpretation of Chapter 10A
Application of Chapter to the cash basis
Chapter not to apply where cash basis used
Exchanges of gilts for gilt strips
Consolidation of gilt strips
Meaning of “gilt-edged security” and “strip”
Regulations for determining market value of securities or strips
Certain non-UK residents with interest on 3½% War Loan 1952 Or After
Purchase or sale of woodlands
Ministers of religion
Mineral exploration and access
Deduction for deemed employment payment
Special rules for partnerships
Deduction for deemed employment payments
Intermediaries providing worker's services to public sector
Deduction for site preparation expenditure
Allocation of site preparation expenditure
Cemeteries and crematoria: interests in land
Exclusion of expenditure met by subsidies
Meaning of “trading stock”
Chapter not to apply where cash basis used
Trading stock appropriated by trader
Trading stock supplied by trader
Disposals not made in the course of trade
Acquisitions not made in the course of trade
Transfer pricing rules to take precedence
Niches, memorials and inscriptions: introduction
Allowable deductions: niches
Allowable deductions: memorials
Allowable deductions: inscriptions
Meaning of “trading stock”
Meaning of “sale” and related expressions
Valuation of work in progress on cessation
Meaning of “work in progress”
Election for valuation at cost
Professions and vocations
Application of Chapter
Chapter not to apply where cash basis used
Restrictions on relief
Withdrawal of relief
Chapter not to apply where cash basis used
Meaning of “know-how” etc.
Disposal of know-how if trade continues to be carried on
Seller controlled by buyer etc.
Professions and vocations
Meaning of “accounting date”
General rule
First tax year
Second tax year
Tax year in which there is no accounting date
Final tax year
Meaning of “overlap period” and “overlap profit”
Overlap profit and trading allowance under Chapter 1 of Part 6A
Deduction for overlap profit in final tax year
Restriction on bringing losses into account twice
Treatment of business start-up payments received in an overlap period
When the late accounting date rules apply
Rule if there is an accounting date
Rules if there is no accounting date
Treating middle date as accounting date
Consequence of treating middle date as accounting date
Circumstances in which middle date not treated as accounting date
When a change of accounting date occurs
Change of accounting date in third tax year
Change of accounting date in later tax year
The year after an ineffective change of accounting date
Professions and vocations
Adjustment income and adjustment expense
Person liable
Calculation of the adjustment
Treatment of adjustment expense
No adjustment for certain expenses previously brought into account
Election for spreading if section 236 applies
Liability of personal representatives if person liable dies
Professions and vocations
“Entering the cash basis”
Unrelieved qualifying expenditure: Parts 2, 7 and 8 of CAA 2001
Unrelieved qualifying expenditure: Part 5 of CAA 2001
Assets not fully paid for
Effect of election where predecessor and successor are connected persons
Professions and vocations
Charge to tax on post-cessation receipts
Income charged
Person liable
Transfer of rights if transferee does not carry on trade
Transfer of trading stock or work in progress
Lump sums paid to personal representatives for copyright etc.
Further rules about allowable deductions
Election to carry back
Changes in trustees and personal representatives
Part 3 — Property income
Overview of Part 3
Amended 2 timesTerritorial scope of charge to tax
Amended 2 timesIncome charged
Amended 2 timesApplication of trading income rules: GAAP
Amended 15 timesRestricting deductions for finance costs related to residential property
Amended 15 timesMeaning of “costs of a dwelling-related loan”
Amended 15 timesApplication of trading income rules: cash basis
Amended 15 timesRelationship between rules prohibiting and allowing deductions
Amended 11 timesReduction for individuals: entitlement
Amended 11 timesReduction for individuals: calculation
Amended 11 timesReduction for accumulated or discretionary trust income: entitlement
Amended 11 timesReduction for accumulated or discretionary trust income: calculation
Amended 11 timesApportionment etc. of profits to tax year
Amended 2 timesRule if person starts to carry on business after 31 March
Amended 2 timesRule if there is a late accounting date
Amended 2 timesElection to disapply late accounting date rules
Amended 2 timesIntroduction
Amended 2 timesApplication of Chapter to property businesses using cash basis
Amended 2 timesSums payable instead of rent
Amended 1 timeSums payable for variation or waiver of terms of lease
Amended 1 timeSums to which sections 277 to 281 do not apply
Amended 1 timeCircumstances in which additional calculation rule applies
Amended 6 timesThe additional calculation rule
Amended 4 timesMeaning of “unused amount” and “unreduced amount”
Amended 7 timesRestrictions on section 292 expenses: the additional calculation rule
Amended 2 timesRestrictions on section 292 expenses: lease of part of premises
Amended 2 timesLimit on reductions and deductions
Amended 2 times- Limit tax deductions for premises expenses and lease reductions Trader
Corporation tax receipts treated as taxed receipts
Amended 1 timeTaking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA
Amended 3 timesPayment of tax by instalments
Amended 1 timeClaim for repayment of tax payable by virtue of section 284
Amended 1 timeClaim for repayment of tax payable by virtue of section 285
Amended 1 timeAppeals against proposed determinations
Amended 1 timeSection 302A: supplementary
Amended 1 timeDetermination by tribunal
Amended 1 timeRules for determining effective duration of lease
Amended 3 timesApplying the rules in section 303
Amended 3 timesInformation about effective duration of lease
Amended 2 timesFurnished lettings
Amended 1 timeWear and tear allowance election
Amended 1 timeMeaning of “eligible” in relation to a dwelling-house
Amended 1 timeEffect of wear and tear allowance election
Amended 1 timeDeduction for expenditure on energy-saving items
Amended 2 timesRestrictions on relief
Amended 2 timesRegulations
Amended 1 timeDeduction for expenditure on sea walls
Amended 1 timeTransfer involving company within the charge to corporation tax
Amended 1 timeRelief in respect of mineral royalties
Amended 1 timeIntroduction
Amended 13 timesMeaning of “qualifying holiday accommodation”
Amended 2 timesUnder-used holiday accommodation: averaging elections
Amended 3 timesUnder-used holiday accommodation: letting condition not met
Amended 3 timesRelief: UK property business
Amended 3 timesRelevant UK earnings for pension purposes: UK property business
Amended 2 timesCapital allowances and loss relief: overseas property business
Amended 2 timesRelevant UK earnings for pension purposes: overseas property business
Amended 2 timesIncome charged
Amended 2 timesTreatment of adjustment income
Amended 1 timeIncome charged
Amended 1 timeDeduction for management expenses of owner of mineral rights
Amended 1 timePower of Commissioners to determine what counts as “mineral royalties”
Amended 1 timeIncome charged
Amended 2 timesBasic meaning of “post-cessation receipt”
Amended 1 timeOther rules about what counts as a “post-cessation receipt”
Amended 3 timesApplication to businesses within the charge to corporation tax
Amended 5 timesEffect of company starting or ceasing to be within charge to income tax
Amended 1 timeBrowse 79 other sections in this Part — procedural / definitional / commencement
Provisions which must be given priority over Part 3
Priority between Chapters within Part 3
Introduction
UK property business
Overseas property business
Meaning of “generating income from land”
Activities not for generating income from land
Charge to tax on profits of a property business
Person liable
Basis of calculation of profits: GAAP required
Calculation of profits in accordance with GAAP
Basis of calculation of profits: cash basis required
Calculation of profits on the cash basis
Profits of a property business: application of trading income rules
Amounts not brought into account as part of a property business
Lease premiums
Amount treated as lease premium where work required
Sums payable for surrender of lease
Assignments for profit of lease granted at undervalue
Provisions supplementary to section 282
Sales with right to reconveyance
Sale and leaseback transactions
Provisions supplementary to sections 284 and 285
The additional calculation rule: special cases
Deductions for expenses under section 292
Tenants under taxed leases treated as incurring expenses
Taking account of reductions in corporation tax receipts
Statement of accuracy for purposes of section 282
Provisions about premiums
Interpretation
Cash basis: application of Chapter
Cash basis: capital expenditure
Cash basis: deduction for costs of loans
Cash basis: modification of deduction for costs of loans
Capital receipts under, or after leaving, cash basis
Deemed capital receipts under, or after leaving, cash basis
Property allowance
Rent-a-room relief
Acquisition of business: receipts from transferor's UK property business
Reverse premiums
Replacement domestic items relief
Transfer of interest in premises
Ending of lease of premises
Nature of item apportioned on sale of estate or interest in land
Mutual business
Meaning of “commercial letting of furnished holiday accommodation”
Meaning of “relevant period” in sections 325 and 326
Application of Chapter
Application of Chapter where cash basis used
Adjustment income and adjustment expense
Person liable
Treatment of adjustment expense
Spreading on leaving cash basis and related election
“Entering the cash basis”
Unrelieved qualifying expenditure
Assets not fully paid for
Effect of election where predecessor and successor are connected persons
Charge to tax on rent receivable in connection with a UK section 12(4) concern
Meaning of “rent receivable in connection with a UK section 12(4) concern”
Person liable
Relief in respect of mineral royalties
Meaning of “mineral lease or agreement” and “mineral royalties”
Extended meaning of “mineral royalties” etc. in Northern Ireland
Charge to tax on rent receivable for a UK electric-line wayleave
Meaning of “rent receivable for a UK electric-line wayleave”
Extent of charge to tax
Income charged
Person liable
Charge to tax on post-cessation receipts
Extent of charge to tax
Person liable
Transfer of rights if transferee does not carry on UK property business
Charge to tax on overseas property income
Meaning of “overseas property income”
Income charged
Person liable
Changes in trustees and personal representatives
Overseas property businesses and overseas land: adaptation of rules
Meaning of “lease” and “premises”
Part 4 — Savings and investment income
Overview of Part 4
Amended 3 timesPriority between Chapters within Part 4
Amended 3 timesTerritorial scope of Part 4 charges
Amended 1 timeInterpretation of special rules for temporary non-residents
Amended 1 timeCharge to tax on interest
Amended 11 timesBuilding society dividends
Amended 2 timesOpen-ended investment company interest distributions
Amended 3 timesInterpretation of sections 373 and 374
Amended 1 timeAuthorised unit trust interest distributions
Amended 3 timesPayments by registered societies or certain co-operatives
Amended 3 timesFunding bonds
Amended 3 timesFSCS payments representing interest
Amended 3 timesDiscounts
Amended 1 timeCharge to tax on disguised interest
Amended 1 timeIncome charged
Amended 1 timePerson liable
Amended 1 timeAvoidance of double taxation
Amended 1 timeException for returns from certain shares
Amended 1 timeContents of Chapter
Amended 5 timesIncome charged
Amended 1 timePerson liable
Amended 1 timeNo charge to tax on purchase by company of exempt employee shareholder shares
Amended 1 timeInterpretation of sections 386 and 387
Amended 1 timeAuthorised unit trust dividend distributions
Amended 1 timeSIP shares: introduction
Amended 1 timeLater charge where cash dividends retained in SIPs are paid over
Amended 1 timeDistribution when dividend shares cease to be subject to SIP
Amended 4 timesReduction in tax due in cases within section 394
Amended 3 timesInterpretation of sections 392 to 395
Amended 2 timesArrangements offering a choice of capital or income return
Amended 2 timesDistributions in a winding up
Amended 2 timesTax credits for qualifying distributions of UK resident companies : UK residents and eligible non-UK residents
Amended 11 timesTax credits for distributions of non-UK resident companies: UK residents and eligible non-UK residents
Amended 11 timesTax credit under section 397A: conditions
Amended 11 timesTax credits under section 397A: manufactured overseas dividends
Amended 11 timesMeaning of “qualifying territory”
Amended 11 timesMeaning of “minority shareholder”
Amended 11 timesIncrease in amount or value of dividends where tax credit available
Amended 3 timesTax treated as paid on distributions received by non-UK resident persons
Amended 17 timesNon-qualifying distributions
Amended 8 timesRelief: distribution repaying shares or security issued in earlier distribution
Amended 3 timesRecovery of overpaid tax credit etc
Amended 3 timesPower to obtain information
Amended 3 timesTemporary non-residents
Amended 3 timesRelief: distributions to trustees of employee-ownership trusts
Amended 3 timesIncome charged
Amended 1 timeSIP shares: introduction
Amended 3 timesLater charge where cash dividends retained in SIPs are paid over
Amended 2 timesDividend payment when dividend shares cease to be subject to SIP
Amended 4 timesReduction in tax due in cases within section 407
Amended 4 timesTemporary non-residents
Amended 4 timesWhen stock dividend income arises
Amended 6 timesConversion etc of bonus share capital
Amended 6 timesIncome charged
Amended 1 timeCash equivalent of share capital
Amended 10 timesPerson liable
Amended 1 timeTemporary non-residents
Amended 1 timeIncome tax treated as paid
Amended 3 timesInterpretation of Chapter
Amended 3 timesCharge to tax under Chapter 6
Amended 4 timesIncome charged
Amended 2 timesPerson liable
Amended 3 timesRelief where borrowers liable as settlors
Amended 2 timesLoans and advances to persons who die
Amended 2 timesLoans and advances to trustees of trusts that have ended
Amended 5 timesTemporary non-residents
Amended 5 timesIncome tax treated as paid
Amended 2 timesPower to obtain information
Amended 2 timesAnnuity payments received after deduction of tax
Amended 2 timesMeaning of “deeply discounted security”
Amended 2 timesTransactions which are disposals
Amended 2 timesTiming of transfers and acquisitions
Amended 1 timeMarket value disposals
Amended 1 timeMarket value acquisitions
Amended 1 timeApplication of this Chapter to strips of government securities
Amended 2 timesMeaning of “strip” in Chapter 8
Amended 1 timeStrips of government securities: relief for losses
Amended 1 timeMarket value of strips etc.
Amended 1 timeListed securities held since 26th March 2003: relief for losses
Amended 1 timeListed securities held since 26th March 2003: calculating the profit or loss on disposals
Amended 2 timesSecurities issued to connected persons etc. at excessive price: subsequent transfers to connected persons
Amended 2 timesTrustees
Amended 4 timesTransfer of assets abroad
Amended 3 timesMinor definitions
Amended 3 timesPerson liable: individuals
Amended 4 timesAmounts for which individuals liable to be treated as highest part of total income
Amended 4 timesTemporary non-residents
Amended 4 timesPerson liable: personal representatives
Amended 4 timesPerson liable: UK resident trustees
Amended 7 timesNon-UK resident trustees and foreign institutions
Amended 10 timesTwo or more persons interested in policy or contract
Amended 1 timePolicies and contracts to which Chapter 9 applies: general
Amended 3 timesConnected policies or contracts treated as single policy or contract
Amended 3 timesSpecial rules: foreign policies
Amended 8 timesExcepted group life policies: conditions about persons intended to benefit
Amended 3 timesExclusion of credit union group life policies
Amended 1 timeDisregard of certain events in relation to qualifying policies
Amended 1 timeExclusion of maturity of capital redemption policies in certain circumstances
Amended 1 timeDisregard of certain assignments
Amended 1 timeCalculating gains: general rules
Amended 1 timeModification of section 494: qualifying endowment policies held as security for company debts
Amended 1 timePart surrenders: loans
Amended 3 timesPart surrenders: payments under guaranteed income bonds etc.
Amended 1 timeChargeable events where transaction-related calculations show gains
Amended 1 timeThe property categories
Amended 10 timesReduction in amount charged on basis of non-UK residence where individual liable for tax
Amended 9 timesReduction in amount charged on basis of non-UK residence of deceased person
Amended 9 timesExceptions to section 528
Amended 1 timeIncome tax treated as paid etc.
Amended 5 timesExceptions to section 530
Amended 3 timesMeaning of “comparable EEA tax charge”
Amended 1 timeTop slicing relief
Amended 9 timesTop slicing relieved liability: one chargeable event
Amended 9 timesTop slicing relieved liability: two or more chargeable events
Amended 5 timesRecovery of tax from trustees
- Recover excess tax from trustees or repay over-recovered amounts Trader
Relief for deficiencies
Amended 24 timesCalculation of deficiencies
Amended 1 timeEffect of rebated or reinvested commission in certain cases
Amended 1 timeSection 541A: further definitions
Amended 1 timeMinor definitions
Amended 2 timesTable of provisions subject to special rules for older policies and contracts
Amended 1 timeCharge to tax on profits from disposal of deposit rights
Amended 1 timeMeaning of “deposit rights”
Amended 1 timeLosses
Amended 1 timeSpecial rule for certain income of trustees
Amended 2 timesAnti-avoidance: transfer of assets abroad
Amended 2 timesCharge to tax under Chapter 13
Amended 1 timeBrowse 127 other sections in this Part — procedural / definitional / commencement
Provisions which must be given priority over Part 4
Income charged
Valuation of interest not paid in cash
Person liable
Date when interest payments under section 373 made
Date when interest payments under section 376 made
Interpretation of sections 376 and 377
Offshore fund distributions
Charge to tax on dividends and other distributions
Open-ended investment company dividend distributions
Date when dividends paid under section 386
Date when dividends paid under section 389
Interpretation of sections 389 and 390
Charge to tax on dividends from non-UK resident companies
Person liable
Distributions in a winding up
Charge to tax on stock dividend income
Charge to tax on purchased life annuity payments
Meaning of “purchased life annuity”
Income charged
Person liable
Charge to tax on profits from deeply discounted securities
Income charged
Person liable
Excluded occasions of redemption
Securities which are not deeply discounted securities
Meaning of “excluded indexed security”
Securities issued in separate tranches: preliminary
Securities issued in separate tranches: basic rule
Deeply discounted securities issued in separate tranches: nominal value rule
Calculating the profit from disposals
Securities issued in accordance with qualifying earn-out right
Strips of government securities: acquisitions and disposals
Restriction of profits on strips by reference to original acquisition cost
Restriction of losses on strips by reference to original acquisition cost
Strips of government securities: manipulation of acquisition, transfer or redemption payments
Market value of strips etc. quoted in foreign stock exchange lists
Power to modify this Chapter for strips
Application of this Chapter to corporate strips
Meaning of “interest-bearing corporate security” in Chapter 8
Conversion of interest-bearing corporate securities into corporate strips
Conversion into corporate strips: lower level conversions
Meaning of “corporate strip” in Chapter 8
Corporate strips: acquisitions and disposals
Corporate strips: manipulation of acquisition, transfer or redemption payments
Application of sections 454 to 456
Non-UK resident trustees
Charge to tax under Chapter 9
When gains arise from policies and contracts
Income charged
Restricted relief qualifying policies: disapplication of section 485 etc
Restricted relief qualifying policies: allowable premiums
Restricted relief qualifying policies: personal representatives and trustees with deceased settlors
Restricted relief qualifying policies: assignments and events following assignments etc
Transitional protection for policies issued in respect of insurances made on or after 21 March 2012 but before 6 April 2013
Person liable for tax: introduction
Interests in rights under a policy or contract for section 469
Determination of shares etc.
Trusts created by two or more persons
Special rules: qualifying policies
Special rules: personal portfolio bonds
Special rules: certain older policies and contracts
Exclusion of mortgage repayment policies
Exclusion of pension policies
Exclusion of excepted group life policies
Excepted group life policies: conditions about benefits
When chargeable events occur
Disregard of some events after alterations of life insurance policy terms
Conditions applicable to alterations of life insurance policy terms
Last payment under guaranteed income bonds etc. treated as total surrender
The total benefit value of a policy or contract
The value of a policy or contract
The total allowable deductions for a policy or contract
Disregard of certain amounts in calculating gains under section 491
Disregard of trivial inducement benefits
Requirement for periodic calculations in part surrender or assignment cases
Meaning of “insurance year” and “final insurance year”
Events treated as part surrenders
Exception from section 501 for loans to buy life annuities
Exception from section 501 for certain loans under qualifying policies
Assignments etc. involving co-ownership
Assignments occurring when there is a co-ownership transaction
Method for making periodic calculations under section 498
Recalculating gains under section 507
The value of rights partially surrendered or assigned
Chargeable events in certain cases where periodic calculations show gains
Requirement for transaction-related calculations in certain part surrender and assignment cases
Method for making transaction-related calculations under section 510
Available premium left for relevant transaction
Recalculating gains under section 511
Special rules for part surrenders and assignments in final insurance year
Requirement for annual calculations in relation to personal portfolio bonds 9
Meaning of “personal portfolio bond”
Policies and contracts which are not personal portfolio bonds
The index categories
The index selection conditions
The property selection conditions
Method for making annual calculations under section 515
The total amount of personal portfolio bond excesses
The total amount of part surrender gains
Chargeable events where annual calculations show gains
Power to make regulations about personal portfolio bonds
Reduction for sums taken into account otherwise than under Chapter 9
Relief for policies and contracts with European Economic Area insurers
Regulations providing for relief in other cases where foreign tax chargeable
When deficiencies arise: events following calculation events
Replacement of qualifying policies
Issue time of qualifying policy replacing foreign policy
Application of Chapter to policies and contracts in which companies interested
Income charged
Person liable
Charge to tax under Chapter 12
Income charged
Person liable
Meaning of “future”, “option” etc.
When disposals involve guaranteed returns
Production of guaranteed returns
The return from one or more disposals
When disposals of futures and options occur: general
Timing of certain grants of options where related disposals occur later
Deemed disposal where futures run to delivery or options are exercised
Interpretation of section 564
When transactions are related
Meaning of “foreign holdings” etc.
Income charged
Person liable
section/
Part 5 — Miscellaneous income
Overview of Part 5
Amended 4 timesPriority between Chapters within Part 5
Amended 3 timesTerritorial scope of Part 5 charges
Amended 2 timesTerritorial scope of Part 5 charges: receipts from intellectual property
Amended 2 timesContents of Chapter
Amended 3 timesDeduction of tax from payments to non-UK residents
Amended 2 timesAdjustments where tax has been deducted
- Claim tax repayments for adjustments on patent sales Trader
How relief is given under section 600
Amended 1 timePayments received after deduction of tax
Amended 2 timesApplication of trading income rules to non-trade businesses
Amended 1 timePerson liable
- Pay income tax on business or miscellaneous income Any Person
Payments received after deduction of tax
Amended 2 timesCharge to tax under Chapter 5
Amended 10 timesIncome treated as highest part of settlor's total income
Amended 10 timesMeaning of “settlement” and “settlor”
Amended 4 timesIncome charged
Amended 1 timePerson liable
Amended 2 times- Pay income tax on settlement income as the settlor Any Person
Calculation of income
Amended 3 timesIncome where settlor retains an interest
Amended 6 timesSettlor's retained interest
Amended 7 timesException for outright gifts between spouses or civil partners
Amended 1 timeExceptions for certain types of income
Amended 3 timesException for gifts to charities
Amended 11 timesException for protected foreign-source income
Amended 11 timesSection 628A: tainting
Amended 11 timesForeign income arising before, but remitted on or after, 6 April 2017
Amended 11 timesIncome paid to relevant children of settlor
Amended 8 timesException for gifts to charities
Amended 1 timeException for protected foreign-source income
Amended 1 timeRetained and accumulated income
Amended 5 timesOffshore income gains
Amended 2 timesMeaning of “capital sum” and “sums paid to settlor”
Amended 1 timeAmount of available income
Amended 8 timesCalculation of undistributed income
Amended 15 timesQualifications to section 636
Amended 10 timesGrossing-up of deemed income
Amended 7 timesInterpretation of sections 641 and 642
Amended 1 timeBenefits paid out of protected foreign-source income or transitional trust income
Amended 1 timeMeaning of “untaxed benefits total” in section 643A
Amended 1 timeMeaning of “available protected income” in section 643A
Amended 1 timeReduction in section 643A income: previous capital gains tax charge
Amended 1 timeReimbursement of tax paid by settlor because of section 643B(2)
Amended 1 timeOnward gifts from non-residents or qualifying new residents
Amended 1 timeIncome attributed by section 643A to user of remittance basis
Amended 1 timeSection 643F(4): benefits and income “relating” to deemed income
Amended 1 timeMeaning of close member of settlor's family in sections 643A to 643EA
Amended 1 timeRecipients of onward gifts
Amended 1 timeCases where income treated as arising to recipient of onward gift
Amended 1 timeCases where deemed income attributed to recipient of onward gift
Amended 1 timeCases where settlor liable following onward gift
Amended 1 timeOnward gift to settlor or close family member by other recipient
Amended 1 timePerson liable under section 643J or 643L and remittance basis applied
Amended 1 time“Protected foreign-source income” and “transitional trust income”
Amended 1 timeProtected foreign-source income and transitional trust income not to be taxed elsewhere in Chapter
Amended 1 timeProperty or income originating from settlor
Amended 4 timesAdjustments between settlor and trustees etc.
Amended 8 timesTrustees' expenses to be rateably apportioned
Amended 8 timesPower to obtain information
Amended 4 timesIncome arising under a settlement
Amended 5 timesCharge to tax on estate income
Amended 2 times- Pay income tax on income received from a deceased person's estate Any Person
Absolute, limited and discretionary interests
Amended 1 timeMeaning of “UK estate” and “foreign estate”
Amended 3 timesIncome charged: UK estates
Amended 2 timesIncome charged: foreign estates
Amended 3 timesThe applicable rate for grossing up basic amounts of estate income
Amended 2 timesThe aggregate income of the estate
Amended 1 timeReduction in share of residuary income of estate
Amended 1 timeReduction in residuary income: inheritance tax on accrued income
Amended 16 timesApplicable rate for determining assumed income entitlement (UK estates)
Amended 2 timesSuccessive absolute interests
Amended 2 timesRelief where UK income tax borne by foreign estate: absolute interests
Amended 1 timeRelief where UK income tax borne by foreign estate: limited and discretionary interests
Amended 1 timeIncome from which basic amounts are treated as paid
Amended 6 timesIncome from which sums within section 668(1)(b) are treated as paid
Amended 6 timesIncome treated as bearing income tax
Amended 12 timesIncome treated as dividend income
Amended 12 timesIncome treated as savings income
Amended 12 timesIncome treated as property income
Amended 12 timesAssessments, adjustments and claims after the administration period
Amended 1 timeStatements relating to estate income
Amended 1 time- Provide a written statement of estate income and tax upon request Any Person
Charge to tax on annual payments not otherwise charged
Amended 2 timesIncome charged
Amended 1 timePayments received after deduction of tax
Amended 3 timesCharge to tax on income not otherwise charged
Amended 1 timeIncome charged
Amended 4 times- Pay income tax on miscellaneous trading and other income Any Person
Person liable
Amended 1 timeTemporary non-residents
Amended 1 timeBrowse 91 other sections in this Part — procedural / definitional / commencement
Provisions which must be given priority over Part 5
Charge to tax on royalties and other income from intellectual property
Income charged under section 579
Person liable for tax under section 579
Deductions in calculating certain income charged under section 579
Charge to tax on income from disposals of know-how
Exceptions to charge under section 583
Income charged under section 583
Person liable for tax under section 583
Charge to tax on income from sales of patent rights
Income charged under section 587
Person liable for tax under section 587
UK resident sellers: spreading rules
Non-UK resident sellers: election for spreading
Further provision about elections for spreading: instalments
Death of seller
Winding up of a body corporate
Licences connected with patents
Rights to acquire future patent rights
Sums paid for Crown use etc. treated as paid under licence
Relief for expenses: patent income
Contributions to expenditure
Contributions not made by public bodies nor eligible for tax relief
Exchanges
Apportionment where property sold together
Questions about apportionments affecting two or more persons
Meaning of “capital sums” etc.
Charge to tax on UK-derived amounts
Income charged under section 608A
Person liable for tax under section 608A
Meaning of residence
Meaning of “full treaty territory”
Meaning of “UK-derived amount” and “UK sales”
Section 608F: apportionment of amounts
Section 608F: disregard for third party sales where intangible property makes insignificant contribution
Meaning of “intangible property”
Application of Chapter to certain partnerships
Exemption where limited UK sales
Exemption where company resident in specified territory
Exemption where business undertaken within territory of residence
Exemption where foreign tax at least half of UK tax
Section 608L: the local tax amount
Exemption where income of opaque partnership taxable in full treaty territory
Exemption for certain bodies corporate that are transparent in full treaty territory
Exemption for double taxation on amounts within same control group
Exemptions: further provision
Notice requiring payment from person in same control group as taxpayer
Payment notice: effect
Payment notice: appeals
Payment notice: effect of making payment etc
Control groups
Related persons
Meaning of “51% investment” and “25% investment”
Meaning of direct or indirect participation in management, control or capital
Anti-avoidance
Interaction with other general provisions
Appeals against assessments
Interpretation of Chapter: general
Charge to tax on films and sound recordings businesses
Income charged
Person liable
Calculation of income
Charge to tax on certain telecommunication rights of a non-trader
Income charged
Deductions in calculating certain income charged
Capital sums paid to settlor by trustees of settlement
Capital sums paid by way of loan or repayment of loan
Loans to participators in close companies
Capital sums paid to settlor by body connected with settlement
Exception for certain loans or repayments of loans
Application to settlements by two or more settlors
Estate income: absolute interests in residue
Meaning of “the administration period” and “the final tax year”
Estate income: limited interests in residue
Estate income: discretionary interests in residue
Special rules for foreign income
Person liable
Basic amount of estate income: absolute interests
Basic amount of estate income: limited interests
Basic amount of estate income: discretionary interests
Assumed income entitlement
The residuary income of the estate
Shares of residuary income of estate
Successive interests: assumed income entitlement of holder of absolute interest following limited interest
Successive interests: payments in respect of limited interests followed by absolute interests
Successive interests: holders of limited interests
Basic amount of estate income: successive limited interests
Apportionments
Transfers of assets etc. treated as payments
Person liable
Settlor-interested settlements
Part 6 — Exempt income
National Savings Bank ordinary account interest
Amended 1 timeIncome from individual investment plans
Amended 1 timeDeceased investors
Amended 1 timeInvestment plans
Amended 1 timeInvestment plans for children
Amended 1 timeSpecial requirements for certain foreign managers
Amended 2 timesRequirements for discharge of foreign institution's duties
Amended 2 timesNon-entitlement to exemption
Amended 2 timesInformation
Amended 4 timesGeneral and supplementary powers
Amended 3 timesMeaning of “certified SAYE savings arrangement”
Amended 2 timesTypes of arrangements and providers
Amended 5 timesCertification of arrangements
Amended 3 timesWithdrawal and variation of certifications and connected requirements
Amended 7 timesAuthorisation of providers
Amended 1 timeWithdrawal and variation of authorisations
Amended 4 timesExemption of profits from FOTRA securities
Amended 1 timeInterest from FOTRA securities held on trust
Amended 3 timesExemption for part of purchased life annuity payments
Amended 1 timeDeterminations
Amended 2 timesRegulations
Amended 3 timesMeaning of “care provider”
Amended 4 timesPayments for non-taxable consideration
Amended 1 timeForeign maintenance payments
Amended 2 timesPeriodical payments of personal injury damages
Amended 4 timesCompensation awards
Amended 2 timesPersons entitled to exemptions for personal injury payments etc.
Amended 4 timesPayments from trusts for injured persons
Amended 4 timesMeaning of “the insured”
Amended 1 timePayments to adopters , etc : England and Wales
Amended 11 timesPayments to adopters, etc: Scotland
Amended 14 timesPayments to adopters, etc: Northern Ireland
Amended 4 timesPayments by persons liable to pool betting duty
Amended 1 timeRepayment interest, and interest paid under repayment supplements
Amended 2 timesInterest on tax overpaid
Amended 2 timesInterest from tax reserve certificates
Amended 1 timeInterest under employees' share schemes
Amended 1 timeRedemption of funding bonds
Amended 1 timeInterest on foreign currency securities etc. owned by non-UK residents
Amended 4 timesInterest and royalty payments: introduction
Amended 4 timesExemption for certain interest and royalty payments
Amended 3 timesInterest payments: exemption notices
Amended 1 timeSpecial relationships
Amended 1 timeApplication of ICTA provisions about special relationships
Amended 5 timesAnti-avoidance
Amended 1 timePower to amend references to the Directive by order
Amended 2 timesAmounts applied by SIP trustees acquiring dividend shares or retained for reinvestment
Amended 3 timesRelevant foreign income of consular officers and employees
Amended 1 timeScholarship income
Amended 2 timesPayments under Jobs Growth Wales Plus
Amended 2 timesVAT repayment supplements
Amended 1 timeDisabled person's vehicle maintenance grant
Amended 1 timeGeneral disregard of exempt income for income tax purposes
Amended 1 timeBrowse 51 other sections in this Part — procedural / definitional / commencement
Overview of Part 6
Income from savings certificates
Income from Ulster Savings Certificates
Plan managers
Interest under certified SAYE savings arrangements
Venture capital trust dividends
Treatment of shares where annual acquisition limit exceeded
Identification of shares after disposals
Identification of shares after reorganisations etc.
Introduction: securities free of tax to residents abroad (“ FOTRA securities ”)
Restriction on deductions etc. relating to FOTRA securities
Excluded annuities
Extent of exemption under section 717
Exempt proportion: term dependent solely on duration of life
Exempt sum: term dependent solely on duration of life
Consideration for the grant of annuities
Annual payments under immediate needs annuities
Certain annual payments by individuals
Commercial payments
Health and employment insurance payments
Health and employment risks and benefits
Period for which payments may be made
Risk of significant loss
Conditions to be met by policies also providing other benefits
Conditions to be met where policies are linked
Aggregation of policies where employment ends for health reasons
Policies for the benefit of others who contribute to premiums
Power to amend sections 744 to 746
Interest on damages for personal injury
Interest on repayment of student loan
Interest on unpaid relevant contributions
Which securities and loans are foreign currency ones for section 755
Interest on certain deposits of victims of National-Socialist persecution
The person making the payment
The person beneficially entitled to the payment
Meaning of “25% associates”
Interest and royalty payments: interpretation
Commercial occupation of woodlands
Housing grants
Further provisions about Orders under section 771
Income from Inter-American Development Bank securities
Income from securities issued by designated international organisations
Income towards reducing the national debt
Government bonus for savings account or other investment plan
Incentives to use electronic communications
Gains on commodity and financial futures
Payments under New Deal 50plus
Payments under employment zone programme
Domestic microgeneration
Renewables obligation certificates for domestic microgeneration
Volunteers etc : compensation for lost employment income
Part 6A — Income charged under this Act: trading and property allowances
Relief under this Chapter
Amended 1 time“Relevant trade” of an individual
Amended 1 time“Miscellaneous income”
Amended 1 timeThe individual's “relevant income”
Amended 1 timeThe individual's trading allowance
Amended 1 timeFull relief: introduction
Amended 1 timeFull relief: trade profits
Amended 1 timeFull relief: miscellaneous income
Amended 1 timePartial relief: alternative calculation of profits: introduction
Amended 1 timePartial relief: alternative calculation of trade profits
Amended 1 timePartial relief: alternative calculation of chargeable miscellaneous income
Amended 1 timeDeductible amount: splitting of trading allowance
Amended 1 time- Decide how to split your tax-free trading allowance across multiple incomes Trader
Election for full relief not to be given
Amended 1 timeElection for partial relief
Amended 1 timeExclusion from relief: expenses deducted against rent-a-room receipts
Amended 1 timeExclusion from relief: payments by employer
Amended 1 timeExclusion from relief: payments by firm
Amended 1 timeExclusion from relief: payments by close company
Amended 1 timeInterpretation of this Chapter
Amended 1 timeRelief under this Chapter
Amended 1 time“Relevant property business” of an individual
Amended 1 time“Relievable receipts” of a property business
Amended 1 timeThe individual's “relevant property income”
Amended 1 timeThe individual's property allowance
Amended 1 timeFull relief: introduction
Amended 1 timeFull relief: property profits
Amended 1 timePartial relief: alternative calculation of property profits: introduction
Amended 1 timePartial relief: alternative calculation of property profits
Amended 1 timeDeductible amount: splitting of property allowance
Amended 1 time- Allocate your property allowance across multiple property businesses Trader
Election for full relief not to be given
Amended 1 timeElection for partial relief
Amended 1 timeExclusion from relief: tax reduction under section 274A
Amended 1 timeExclusion from relief: expenses deducted against rent-a-room receipts
Amended 1 timeExclusion from relief: payments by employer
Amended 1 timeExclusion from relief: payments by firm
Amended 1 timeExclusion from relief: payments by close company
Amended 1 timeInterpretation of this Chapter
Amended 1 timePart 7 — Income charged under this Act: rent-a-room and qualifying care relief
Meaning of “rent-a-room receipts”
Amended 7 timesThe individual's limit
Amended 1 timeOverview of Chapter 2
Amended 3 timesPerson who qualifies for relief
Amended 3 timesShared lives care: further condition for relief
Amended 3 timesMeaning of “qualifying care receipts”
Amended 7 timesMeaning of providing qualifying care
Amended 7 timesMeaning of providing foster care
Amended 11 timesMeaning of providing shared lives care
Amended 11 timesMeaning of “residence”
Amended 11 timesCalculation of “total qualifying care receipts”
Amended 1 timeThe individual's limit
Amended 6 timesShare of fixed amount: residence used by more than one carer
Amended 1 timeShare of fixed amount: income period not a year
Amended 1 timeThe amount per adult or child
Amended 17 timesFull qualifying care relief: introduction
Amended 1 timeFull qualifying care relief: trading income
Amended 1 timeFull qualifying care relief: income chargeable under Chapter 8 of Part 5
Amended 1 timeAlternative calculation of profits: introduction
Amended 2 timesAlternative calculation of profits: trading income
Amended 2 timesAlternative calculation of profits: income chargeable under Chapter 8 of Part 5
Amended 2 timesElection for alternative methodof calculating profits
Amended 2 timesAdjustment of assessment
Amended 1 timePeriods of account not ending on 5th April
Amended 5 timesMeaning of “relevant limit”
Amended 3 timesFull relief
Amended 1 timeAlternative method of calculating profits
Amended 2 timesCapital allowances: introduction
Amended 4 timesUnallocated capital expenditure
Amended 2 timesDeemed disposal event
Amended 2 timesPlant or machinery used for care business
Amended 2 timesPlant or machinery used for other qualifying activities
Amended 2 timesSubsequent disposal events
Amended 2 timesExcluded capital expenditure
Amended 1 timeExcluded capital expenditure: subsequent treatment of asset
Amended 1 timeOverlap profit
Amended 2 timesIndexation of the fixed amount and the amount per adult and child
Amended 2 timesBrowse 17 other sections in this Part — procedural / definitional / commencement
Overview of Chapter 1
Person who qualifies for relief
Meaning of “residence”
Meaning of “total rent-a-room amount”
Exclusive receipts condition
Full rent-a-room relief: introduction
Full rent-a-room relief: trading income
Full rent-a-room relief: property income
Full rent-a-room relief: income chargeable under Chapter 8 of Part 5
Alternative calculation of profits: introduction
Alternative calculation of profits: trading income
Alternative calculation of profits: property income
Alternative calculation of profits: income chargeable under Chapter 8 of Part 5
Election not to apply full relief
Election for alternative methodof calculating profits
Time limit on adjustment of assessment
Minor definitions
Part 8 — Foreign income: special rules
Overview of Part 8
Amended 1 timeMeaning of “relevant foreign income”
Amended 11 timesClaims for relevant foreign income to be charged on the remittance basis
Amended 1 timeRelevant foreign income charged on remittance basis
Amended 9 timesSection 832: temporary non-residents
Amended 9 timesSection 832: deductions from remitted income
Amended 9 timesIncome treated as remitted: repayment of UK-linked debts
Amended 1 timeArrangements treated as repayment of UK-linked debts
Amended 1 timeAnnual payments payable out of relevant foreign income
Amended 9 timesRelief for backdated pensions charged on the arising basis
Amended 1 timeClaims under section 840
Amended 1 timeUnremittable income: introduction
Amended 1 timeBrowse 18 other sections in this Part — procedural / definitional / commencement
Relief for delayed remittances
Relief for delayed remittances: backdated pensions
Claims for relief on delayed remittances
Expenses attributable to collection or payment of relevant foreign income
Claim for relief for unremittable income
Withdrawal of relief
Income charged on withdrawal of relief after source ceases
Valuing unremittable income
Claim for relief for qualifying new residents
Qualifying new residents
Effect of claim, foreign employment election or foreign gain claim on losses
Effect of claim, foreign employment election or foreign gain claim: costs of dwelling-related loan
Effect of claim, foreign employment election or foreign gain claim on personal allowance etc
Effect of claim on relief for contributions to registered pension schemes
Foreign income relief ignored for purposes of determining adjusted net income
Qualifying foreign income
Disqualified income
Performance income
Part 9 — Partnerships
General provisions
Amended 2 timesCalculation of firm's profits or losses
Amended 2 timesAllocation of firm's profits or losses between partners
Amended 2 timesProfit-making period in which some partners have losses
Amended 2 timesLoss-making period in which some partners have profits
Amended 2 timesExcess profit allocation to non-individual partners
Amended 2 timesExcess profit allocation: cases involving individuals who are not partners
Amended 2 timesPayments by B out of the excess part of B's profit share
Amended 2 timesCarrying on by partner of notional trade
Amended 3 timesNotional trades: indirect partners
Amended 3 timesCarrying on by partner of notional business
Amended 5 timesPartners to whom the remittance basis applies
Amended 3 timesResident partners and double taxation agreements
Amended 3 timesAdjustment income
Amended 7 timesSale of patent rights: effect of partnership changes
Amended 2 timesSale of patent rights: effect of later cessation of trade
Amended 4 timesLimited liability partnerships
Amended 5 timesLimited liability partnerships: salaried members
Amended 5 timesCondition A
Amended 5 timesCondition B
Amended 5 timesCondition C
Amended 5 timesM's contribution to the limited liability partnership: the basic calculation
Amended 5 timesM's contribution to the limited liability partnership: deemed contributions
Amended 5 timesAnti-avoidance
Amended 5 timesElection for special provision for alternative investment fund managers to apply
Amended 5 timesAllocation of profit to the AIFM firm
Amended 5 timesVesting of remuneration represented by the allocated profit
Amended 5 timesVesting statements
Amended 5 timesThe AIFMD remuneration guidelines
Amended 5 timesBrowse 9 other sections in this Part — procedural / definitional / commencement
Overview of Part 9
Assessment of partnerships
Bare trusts
Calculations etc. where firm has other income or losses
Basis periods for partners' notional trades
Basis periods for partners' notional businesses
Notional business: indirect partners
Overlap profits from partners' notional businesses
Special provisions about farming and property income
Part 10 — General provisions
Employee benefit contributions: non-trades and non-property businesses
Amended 6 timesBusiness entertainment and gifts: non-trades and non-property businesses
Amended 2 timesSocial security contributions: non-trades etc.
Amended 1 timePenalties and interest: non-trades etc.
Amended 12 timesCrime-related payments: non-trades and non-property businesses
Amended 1 timeApportionment etc. of miscellaneous profits to tax year
Amended 3 timesLosses calculated on same basis as miscellaneous income
Amended 2 timesOrders and regulations made by Treasury or Commissioners
Amended 7 timesMeaning of “farming” and related expressions
Amended 1 timeMeaning of grossing up
Amended 1 timeOther definitions
Amended 9 timesInterpretation: Scotland
Amended 2 timesDisapplication of corporation tax: section 9 of ICTA
Amended 1 timeCommencement and transitional provisions etc.
Amended 1 timeAbbreviations and general index in Schedule 4
Amended 1 timeBrowse 8 other sections in this Part — procedural / definitional / commencement
Schedules
Browse 655 other Schedules — structural / supplementary
Transitionals and savings etc.
Repeals and revocations
Consequential amendments
The Income and Corporation Taxes Act 1988 (c. 1) is...
Omit section 20 (Schedule F).
In section 119(1) (rent etc. payable in connection with mines,...
In section 120 (rent etc. payable in respect of electric...
In section 121 (management expenses of owner or mineral rights)...
(1) Amend section 122 (relief in respect of mineral royalties)...
Omit section 127 (enterprise allowance).
Omit section 127A (futures and options: transactions with guaranteed returns)....
Omit section 21 (persons chargeable and basis of assessment under...
In section 128 (commodity and financial futures etc: losses and...
In section 231B(4)(b) (consequences of certain arrangements to pass on...
Omit section 232 (tax credits for non-UK residents).
Omit section 233 (taxation of certain recipients of distributions and...
(1) Amend section 21A (computation of amount chargeable under Schedule...
(1) Amend section 250 (returns) as follows.
In section 251 (interpretation of sections 249 and 250), omit...
Omit sections 251A to 251D (approved share incentive plans).
In section 271(1)(a) (deemed surrender in cases of certain loans)...
Omit section 314 (divers and diving supervisors).
Omit section 322 (consular officers and employees).
In section 21B (application of other rules applicable to Case...
Omit section 324 (designated international organisations).
Omit section 325 (interest on deposits with National Savings Bank)....
Omit section 326 (interest etc. under contractual savings schemes).
Omit sections 326A to 326D (tax-exempt special savings accounts).
Omit section 327 (disabled person's vehicle maintenance grant).
Omit section 327A (payments to adopters).
Omit sections 329 to 329AB (exemption of interest on damages...
Omit section 331 (scholarship income).
Omit section 331A (student loans: certain interest to be disregarded)....
Omit section 332(3) (expenditure and houses of ministers of religion)....
In section 21C (the Schedule A charge and mutual business)—...
In section 332A (venture capital trusts: reliefs) omit “and distributions...
For section 333 substitute— Investment plan regulations Regulations under Chapter 3 of Part 6 of ITTOIA 2005...
Omit section 333A (personal equity plans: tax representatives).
(1) Amend section 337 (company beginning or ceasing to carry...
(1) Amend section 347A (general rule: annual payments) as follows....
(1) Amend section 30 (expenditure on making sea walls) as...
In section 353(1) (relief for payments of interest) after “sections...
In section 370(2)(b) (relevant loan interest) for the words from...
In section 382(3) (provisions supplementary to sections 380 and 381)...
Omit sections 31A and 31B (deductions for expenditure by landlords...
In section 385(4) (carry-forward against subsequent profits) omit “under Case...
In section 386(1) (carry-forward where business transferred to a company)...
In section 398 (loss relief for transactions in deposits with...
In section 431D(3)(b) (meaning of “overseas life assurance business”) after...
In section 434 (franked investment income etc.) omit subsection (1A)....
(1) Amend section 437 (general annuity business) as follows.
(1) Section 468J (dividend distributions of authorised unit trusts) is...
(1) Section 468L (interest distributions of authorised unit trusts) is...
(1) Amend section 477A (building societies: regulations for deduction of...
Omit section 480C (relevant deposits: computation of tax on interest)....
(1) Section 486 (industrial and provident societies and co-operative associations)...
(1) Amend section 504 (meaning of the “commercial letting of...
Omit section 514 (funds for reducing the national debt).
In section 527(4) (spreading of royalties over several years) at...
Omit section 529 (patent income to be earned income in...
(1) Amend section 552 (information: duty of insurers) as follows....
In section 552ZA(3) (information: supplementary provisions) after “section 546C(7)(a)” insert...
(1) Amend section 552A (tax representatives) as follows.
In section 552B (duties of overseas insurers' tax representatives) after...
Omit section 554 (borrowings on life policies to be treated...
Omit section 557 (charge on profits).
In section 568(1) (deductions from profits of contributions paid under...
In section 570(4) (payments under certified schemes which are not...
In section 578(1) (housing grants) for “any tax purpose” substitute...
Omit sections 580A to 580C (relief from tax on annual...
Omit section 581 (borrowing in foreign currency by local authorities...
Omit section 583 (Inter-American Development Bank).
Omit section 585 (relief from tax on delayed remittances).
(1) Amend section 591C (cessation of approval: tax on certain...
(1) Amend section 592 (exempt approved schemes) as follows.
(1) Amend section 598 (charge to tax: repayment of employee's...
(1) Amend section 599 (charge to tax: commutation of entire...
In section 599A (charge to tax: payments out of surplus...
In section 601(5)(b) (charge to tax: payments to employers) for...
In section 602(1)(a) (regulations relating to pension fund surpluses) omit...
(1) Amend section 607 (pilots' benefit fund) as follows.
In section 608(2) (superannuation funds approved before 6th April 1980)—...
In section 614(2A) (exemptions and reliefs in respect of income...
(1) Amend section 623 (relevant earnings) as follows.
In section 644(2) (meaning of “relevant earnings”)—
In section 646(2) (meaning of “relevant net earnings”)—
(1) Amend section 648B (return of contributions after pension date)...
(1) Amend section 650A (charge on withdrawal of approval from...
(1) . . . . . . . . ....
Omit sections 660A and 660B (income arising under settlement where...
(1) Amend section 660C (nature of charge on settlor) as...
Omit sections 660D to 660G (settlements: supplementary provisions etc.).
Omit section 677 (sums paid to settlor otherwise than as...
Omit section 678 (capital sums paid by body connected with...
Omit sections 682 and 682A (ascertainment of undistributed income and...
Schedule 1 para.278
Omit section 688 (schemes for employees and directors to acquire...
Schedule 1 para.281
Omit section 699 (relief from higher rate tax for inheritance...
Omit section 730C (exchanges of gilts: traders etc.).
In section 774(1) (transactions between dealing company and associated company)—...
(1) Amend section 53 (farming and other commercial occupation of...
In section 806K(2) (application of foreign dividend provisions to branches...
In section 812(1) (withdrawal of right to tax credit of...
In section 55(1) (mines, quarries and other concerns) after “charged...
In section 821(1) (under-deductions from payments made before passing of...
(1) Section 824 (repayment supplements: individuals and others) is amended...
(1) Amend section 828 (orders and regulations made by the...
In section 831(3) (interpretation of ICTA) after the entry relating...
(1) Amend section 56 (transactions in deposits with and without...
Omit Schedule 4A (creative artists: relief for fluctuating profits).
(1) Amend Schedule 5 (treatment of farm animals etc for...
Omit Schedule 5AA (guaranteed returns on transactions in futures and...
Omit Schedule 15A (contractual savings schemes).
(1) Amend Schedule 15B (venture capital trusts: relief from income...
(1) Amend Schedule 22 (reduction of pension fund surpluses) as...
In paragraph 11A(4) of Schedule 24 (assumptions for calculating chargeable...
(1) Amend section 59 (persons chargeable: Schedule D) as follows....
(1) Amend Schedule 30 (transitional provisions and savings) as follows....
The Finance Act 1950 is amended as follows.
In section 40(3) (modification of section 39 in case of...
The Chevening Estate Act 1959 is amended as follows.
(1) Amend section 2 (provisions as to income tax, estate...
The Taxes Management Act 1970 is amended as follows.
(1) Amend section 7 (notice of liability to income tax...
In section 8(1AA)(b) (personal returns) for “section 231 of the...
Omit sections 60 to 63A (basis of assessment for income...
In section 8A(1AA)(b) (trustee's returns) for “section 231 of the...
In section 9(1) (returns to include self-assessment)—
Omit section 9D (choice between different Cases of Schedule D)....
In section 12AA(1A)(b) (partnership returns) for “section 231 of the...
In section 12AB(5) (partnership return to include partnership statement) in...
In section 12AE(2) (choice between different Cases of Schedule D)...
(1) Amend section 18 (interest paid without deduction of income...
(1) Amend section 19 (information for purposes of Schedule A)...
In section 27(2) (settled property) for “section 660G(1) and (2)...
In section 30 (recovery of overpayment of tax, etc.) omit...
Omit section 64 (Case III assessments).
In section 30A(2) (assessing procedure) for “Schedule” substitute “ Part...
In section 31(3) (appeals: right of appeal) omit “9D or”....
In section 42(7) (procedure for making claims etc.) omit the...
(1) Amend section 46B (questions to be determined by Special...
In section 46C (jurisdiction of Special Commissioners over certain claims...
In section 58(3)(b) (proceedings in tax cases in Northern Ireland)...
In section 59A(8)(b) (payments on account of income tax) for...
(1) Amend section 59B (payment of income tax and capital...
In section 90(1)(b) (disallowance of relief for interest on tax)...
(1) Amend section 98 (special returns, etc) as follows.
Omit section 65 (Cases IV and V assessments: general).
In section 118(1) (interpretation) after the definition of “ITEPA 2003”...
In Schedule 1A (claims etc. not included in returns), in...
(1) Amend Schedule 1B (claims for relief involving two or...
In paragraph 10 of Schedule 3 (rules for assigning proceedings...
In paragraph 2(4) of Schedule 3A (electronic lodgement of tax...
The Finance Act 1971 is amended as follows.
In paragraph 8(2)(b) of Schedule 3 (taxation of refunds of...
The Biological Standards Act 1975 is amended as follows.
Omit section 65A (Case V income from land outside UK:...
(1) Amend section 2 (exemption of the National Biological Standards...
The Oil Taxation Act 1975 is amended as follows.
In section 3(2) (allowance of expenditure (other than expenditure on...
The Inheritance Tax Act 1984 is amended as follows.
In section 6(3) (excluded property), in paragraph (e)—
In section 21(3) (normal expenditure out of income)—
In section 174(1) (liabilities for which allowance is to be...
The Films Act 1985 is amended as follows.
In section 6(1) (certification of master negatives, tapes and discs)...
(1) Amend Schedule 1 (certification in case of British films)...
Omit section 68 (special rules where property etc. situated in...
The Finance Act 1988 is amended as follows.
(1) Amend section 38 (maintenance payments under existing obligations: 1989-90...
In section 73(2) (consideration for certain restrictive undertakings)—
In Schedule 6 (commercial woodlands) in paragraph 3(2) for “person”...
In Schedule 12 (building societies: change of status) for paragraph...
In section 95(11) of the Water Act 1989 (vesting in...
The Finance Act 1989 is amended as follows.
In section 68(2) (principal charges to tax: employee share ownership...
In section 71(4) (further charges to tax: borrowing)—
(1) Amend section 76 (non-approved retirement benefits schemes) as follows....
Omit sections 68A to 68C (share incentive plans).
Omit sections 112 and 113 (security: trades etc.).
In section 151(2) (assessment of trustees etc) in each of...
In paragraph 1 of Schedule 12 (close companies: administrative provisions)—...
In paragraph 10 of Schedule 11 to the Electricity Act...
The Finance Act 1990 is amended as follows.
(1) Amend section 25 (donations to charity by individuals) as...
(1) Amend section 126 (pools payments for football ground improvements)...
The Finance Act 1991 is amended as follows.
(1) Amend section 121 (pools payments to support games etc....
The Social Security Contributions and Benefits Act 1992 is amended...
Omit section 69 (Case VI assessments).
(1) Amend section 15 (Class 4 contributions recoverable under the...
In section 16(1) (application of Income Tax Acts and destination...
(1) Amend Schedule 2 (levy of Class 4 contributions with...
The Social Security Contributions and Benefits (Northern Ireland) Act 1992...
(1) Amend section 15 (Class 4 contributions recoverable under the...
(1) Amend Schedule 2 (Schedule 2 to the Social Security...
The Taxation of Chargeable Gains Act 1992 is amended as...
In section 4(2) and (3) (rates of capital gains tax)...
(1) Amend section 6 (rates of capital gains tax: special...
In section 12(2) (foreign assets of person with foreign domicile)...
Omit section 71 (computation of income tax where no profits...
In section 41(4) (restriction of losses by reference to capital...
(1) Amend section 59 (partnerships) as follows.
In section 97(7) (supplementary provisions) for “section 660G(1) and (2)...
(1) Amend section 117 (meaning of qualifying corporate bond) as...
(1) Amend section 142 (capital gains on stock dividends) as...
In section 151 (personal equity plans) for subsections (2) and...
In section 151A(6) (venture capital trusts: reliefs) for the words...
After section 151B insert— Strips: manipulation of price: associated payment...
In section 156(4) (assets of Class 1) after “Taxes Act”...
In section 198(5)(b) (replacement of business assets used in connection...
(1) Amend section 241 (furnished holiday lettings) as follows.
In section 251(8)(b) (general provisions concerning debts) for “relevant discounted...
In section 254(1)(c) (definition of “a qualifying loan” for relief...
After section 261 insert— Know-how Disposal of know-how as part...
(1) Amend section 271 (miscellaneous exemptions) as follows.
In section 286(3) (connected persons: interpretation) for “Chapter 1A of...
(1) Amend section 288 (interpretation) as follows.
In Schedule A1 (application of taper relief), in paragraph 17(6),...
In Schedule 1 (application of exempt amount and reporting limits...
In section 74(1) (general rules as to deductions not allowable)—...
In paragraph 13(7)(h) of Schedule 5B (enterprise investment scheme: re-investment)—...
(1) Amend Schedule 8 (leases) as follows.
The Finance (No. 2) Act 1992 is amended as follows....
(1) Amend section 40A (revenue nature of expenditure on master...
(1) Amend section 40B (allocation of expenditure to periods) as...
In section 40C(1) (cases where section 40B does not apply)...
(1) Amend section 40D (election for sections 40A and 40B...
(1) Amend section 41 (relief for preliminary expenditure) as follows....
(1) Amend section 42 (relief for production or acquisition expenditure)...
In section 43(1) after the definition of “expenditure of a...
Omit section 59 (furnished accommodation).
Omit Schedule 10 (furnished accommodation).
The Finance Act 1993 is amended as follows.
In section 112(7) (employers' pension contributions) in the definition of...
(1) Amend section 171 (Lloyd's underwriters etc: taxation of income...
In paragraph 13(4) of Schedule 19 (Lloyd's underwriters etc: repayment...
(1) Amend Schedule 20A (Lloyd's underwriters: conversion to limited liability...
The Pension Schemes Act 1993 is amended as follows.
In section 158(4) (disclosure of information between government departments etc.)—...
The Pension Schemes (Northern Ireland) Act 1993 is amended as...
Omit section 77 (incidental costs of obtaining loan finance).
In section 154(4) (disclosure of information between government departments etc.)—...
The Finance Act 1994 is amended as follows.
(1) Amend Schedule 20 (changes for facilitating self-assessment: transitional provisions...
In paragraph 26 of Schedule 24 (vesting in successor company...
In paragraph 17(1) of Schedule 4 to the Coal Industry...
The Finance Act 1995 is amended as follows.
Omit section 56 (foreign life policies etc).
In section 73(1)(a) (venture capital trusts: regulations) after “1992” insert...
In section 123 (prevention of exploitation of transitional provisions) for...
(1) Amend section 126 ( UK representatives of non-residents) as...
In section 128(3) (limit on income chargeable on non-residents: income...
(1) Amend section 154 (short rotation coppice) as follows.
In section 157(7) (certificates of tax deposit) for “Case III...
In paragraph 3(4) of Schedule 18 (deceased persons' estates) after...
(1) Amend Schedule 22 (prevention of exploitation of transitional provisions...
The Finance Act 1996 is amended as follows.
In section 92(1) (convertible securities etc : creditor relationships) for...
Omit section 102 (discounted securities: income tax provisions).
(1) Amend section 154 ( FOTRA securities) as follows.
(1) Amend Schedule 9 (loan provisions: special computational provisions) as...
Omit Schedule 13 (discounted securities: income tax provisions).
(1) Amend Schedule 15 (loan relationships: savings and transitional provisions)...
The Finance Act 1997 is amended as follows.
In section 79 (payments under certain life insurance policies)—
The Finance (No.2) Act 1997 is amended as follows.
In section 30 (tax credits)— (a) in subsection (9) after...
In section 37(7) (interest to be paid gross) for “sections...
In section 48(1) (relief for expenditure on production or acquisition...
The Finance Act 1998 is amended as follows.
In section 4 (construction of references in Income Tax Acts...
In section 42 (computation of profits of trade, profession or...
Omit section 43 (barristers and advocates in early years of...
(1) Amend section 46 (minor and consequential provisions about computations)...
In section 76(3) (power to make regulations for non-UK residents...
In section 123(7)— (a) for “both” substitute “ more ”,...
The Finance Act 1999 is amended as follows.
In section 63(1) (treatment of transfer fees under existing contracts)...
(1) Amend section 65 (relevant discounted securities) as follows.
In section 85(7)(b) (advance pricing agreements etc. ) after “Taxes...
(1) Amend Schedule 6 (tax treatment of receipts by way...
Omit section 80 (expenses connected with foreign trades etc).
(1) Amend paragraph 6 of Schedule 3 to the Commonwealth...
The Finance Act 2000 is amended as follows.
(1) Amend section 44 (gifts to charity from certain trusts)...
Omit section 45 (loans to charities).
(1) Amend section 46 (exemption for small trades etc. )...
Omit section 84 (exemption of payments under New Deal 50plus)....
Omit section 85 (exemption of payments under Employment Zones programmes)....
Omit section 87 (treatment of certain telecommunication rights).
In section 143(2) (power to provide incentives to use electronic...
In section 155 (interpretation) at the end insert “ and...
Omit section 81 (travel between trades etc).
In Schedule 12 (provision of services through an intermediary), in...
In Schedule 15 (the corporate venturing scheme), in paragraph 99(3),...
In Schedule 22 (tonnage tax), in paragraph 144(3), for “Chapter...
Omit Schedule 23 (treatment of certain telecommunication rights).
The Capital Allowances Act 2001 is amended as follows.
In section 4 (capital expenditure) for subsection (5) substitute—
(1) Amend section 15 (qualifying activities) as follows.
(1) Amend section 16 (ordinary Schedule A businesses) as follows....
(1) Amend section 17 (furnished holiday lettings businesses) as follows....
In section 20(1) (employments and offices) for “section 314 of...
Omit section 82 (interest paid to non-residents).
In section 23(2) (expenditure unaffected by sections 21 and 22)...
In section 28(2) (thermal insulation of industrial buildings) for “Schedule...
In section 33(8)(b) (personal security) for “Schedule A” substitute “...
In section 35(1)(a) (expenditure on plant or machinery for use...
In section 38(a) (production of animals etc)—
(1) Amend section 63 (cases in which disposal value is...
(1) Amend section 106 (the designated period) as follows.
(1) Amend section 108 (effect of disposal to connected person...
(1) Amend section 112 (excess allowances: connected persons) as follows....
(1) Amend section 115 (prohibited allowances: connected persons) as follows....
In section 82A(1) (expenditure on research and development)—
(1) Amend section 122 (short-term leasing by buyer, lessee etc)...
(1) Amend section 125 (other qualifying purposes) as follows.
In section 154(3) (further registration requirement) for paragraph (b) substitute—...
In section 155(1) (changes in the persons carrying on qualifying...
In section 156 (connected persons) for subsection (2) substitute—
In section 162(2) (ring fence trade a separate qualifying activity)—...
In section 248 (ordinary Schedule A businesses)—
In section 252 (mines, transport undertakings etc)—
In section 258(4) (special leasing: income tax) for “taxed under...
(1) Amend section 263 (qualifying activities carried on in partnership)...
In section 82B(1) (payments to research associations, universities etc.)—
(1) Amend section 265 (successions: general) as follows.
In 268(1) (successions by beneficiaries) for paragraph (b) and the...
In section 282 (buildings outside the United Kingdom) for “applicable...
In section 326(1) (interpretation of section 325) in the definition...
In section 331(1)(b) (capital value provisions: interpretation)—
(1) Amend section 353 (lessors and licensors) as follows.
(1) Amend section 354 (buildings temporarily out of use) as...
In section 390(1) (interpretation of section 389) in the definition...
(1) Amend section 392 (Schedule A businesses) as follows.
In section 393B(4) (meaning of “qualifying expenditure”) after “the profits...
In section 83 (patent fees etc. and expenses) after “the...
(1) Amend section 393T (giving effect to allowances and charges)...
(1) Amend section 406 (reduction where premium relief previously allowed)...
In section 454(1)(c) (qualifying expenditure) after “an election under” insert...
In section 455(4) (excluded expenditure) after “goodwill under” insert “...
In section 462(3) (disposal values) after “goodwill under” insert “...
In section 479(4) (persons having qualifying non-trade expenditure: income tax)...
In section 481(5)(b) (anti-avoidance: limit on qualifying expenditure) after “in...
In section 483(c) (meaning of “income from patents”) after “payable...
In section 488(3)(a) (balancing allowances) for “section 113(1)” to “to...
(1) Amend section 529 (giving effect to allowances and charges)...
(1) Amend section 83A (gifts in kind to charities etc.)...
In section 536(5)(a) (contributions not made by public bodies and...
In section 558(1)(c) (effect of partnership changes) for the words...
(1) Amend section 559 (effect of successions) as follows.
In section 577(1) (definitions) in the definition of “property business”...
(1) Amend Schedule 1 (abbreviations and defined expressions) as follows....
The Finance Act 2002 is amended as follows.
In section 64(1) (adjustment on change of basis) after “to...
(1) Amend Schedule 16 (community investment tax relief) as follows....
(1) Amend Schedule 22 (computation of profits: adjustment of change...
(1) Amend paragraph 64 of Schedule 25 (transitional provisions concerning...
(1) Amend section 84 (gifts to educational establishments) as follows....
In Schedule 29 (gains and losses of a company from...
The Proceeds of Crime Act 2002 is amended as follows....
In section 319(2) (source of income) for “Case 6 of...
(1) Amend Schedule 10 (tax) as follows.
The Income Tax (Earnings and Pensions) Act 2003 is amended...
In section 6(5) (exception to charge to tax on employment...
In section 61(1) (application of provisions to workers under arrangements...
In section 178 (exception for loans where interest qualifies for...
In section 180(5) (threshold for benefit of loan to be...
In section 189(3)(a) (exception where double charge) for “section 677...
In section 215 for “section 331(1) of ICTA” substitute “...
In section 302(4) (exemption of consular employees' employment income), in...
After section 325 insert— Health and employment insurance payments (1) No liability to income tax in respect of employment...
In section 357(2) (business entertainment and gifts: exception where employer's...
In Chapter 2 of Part 5, after section 360 insert—...
In section 394(2) (charge on benefit to which Chapter 2...
In section 397(1) (certain lump sums: calculation of amount taxed...
In section 399(1)(b) (employment-related loans: interest treated as paid) omit...
In section 476 (charge on occurrence of chargeable event) for...
In section 477(7) (chargeable events) for “(charge under Case VI...
(1) Amend section 493 (no charge on acquisition of dividend...
For section 496 (no charge on cash dividend retained for...
In section 497(3) (limitations on charges on shares ceasing to...
In section 502(4)(a) (meaning of “capital receipt” in section 501)...
(1) Amend section 515 (tax advantages and charges under other...
In section 516(4) (approved SAYE option schemes), in the definition...
(1) Amend section 575 (taxable pension income: foreign pensions) as...
(1) Amend section 613 (taxable pension income: foreign annuities) as...
(1) Amend section 631 (taxable pension income: pre-1973 pensions paid...
(1) Amend section 635 (taxable pension income: foreign voluntary annual...
In section 86A (charitable donations: contributions to agent's expenses) —...
After section 644 insert— Health and employment insurance payments (1) No liability to income tax arises in respect of...
After section 646 insert— Foreign pensions of consular employees (1) No liability to income tax arises in respect of...
In section 655(2) (structure of Part 10) for the entries...
(1) Amend section 679 (taxable social security income: foreign benefits)...
After section 681 insert— Foreign benefits of consular employees (1) No liability to income tax arises in respect of...
After section 716 (alteration of amounts by Treasury order) insert—...
(1) Amend Schedule 1 (abbreviations and defined expressions) as follows....
(1) Amend Schedule 2 (approved share incentive plans) as follows....
(1) Amend Schedule 3 (approved SAYE option schemes) as follows....
In Schedule 4 (approved CSOP schemes), in paragraph 12(3), for...
(1) Amend Schedule 5 (enterprise management incentives) as follows.
The Finance Act 2003 is amended as follows.
In section 151(2) (non-resident companies: extent of charge to income...
Omit section 176 (foster carers).
(1) Amend Schedule 24 (restriction of deductions for employee benefit...
In Schedule 34 (policies of life insurance etc: miscellaneous amendments),...
Omit Schedule 36 (foster carers).
In section 101(4)(a) of the Courts Act 2003 (bankruptcy of...
In section 14(1) of the Child Trust Funds Act 2004...
The Finance Act 2004 is amended as follows.
In section 71(3)(b) (collection and recovery of sums to be...
Omit section 97 (exemption from income tax for certain interest...
Omit section 98 (exemption from income tax for certain interest...
Omit section 99 (permanent establishments and “25% associates”).
Omit section 100 (interest payments: exemption notices).
(1) Amend section 101 (payment of royalties without deduction at...
In section 102 (claim for tax deducted at source from...
Omit section 103 (special relationships).
Omit section 104 (anti-avoidance).
Omit section 106 (transitional provision).
In section 119(4) (individuals benefited by film relief) for “,...
In section 123(1) (meaning of “film-related loss”) for “any of...
In section 127(2) (losses derived from exploiting licence: individuals in...
(1) Amend section 130 (“A significant amount of time”) as...
In section 186(1)(b) (scheme investments: income) for “which would” to...
(1) Amend section 189(2) (meaning of “relevant UK earnings”) as...
In section 196(2) (relief for employers in respect of contributions...
In section 197(10)(a) (spreading relief) after “charged under” insert “...
In section 199(2)(a) (deemed contributions) at the beginning insert “...
In section 200(a) (no other relief for employers in connection...
(1) Amend section 246 (restriction of deduction for non-contributory provision)...
(1) Amend section 249 of FA 2004 (amendments of ITEPA...
In section 280(1) (abbreviations and general index for Part 4)...
(1) Amend Schedule 15 (charge to income tax on benefit...
In paragraph 1(4) and (6) of Schedule 24, for the...
In paragraph 12 of Schedule 35 (pension schemes etc: minor...
(1) Amend Schedule 36 (pension schemes etc: transitional provisions and...
The Pensions Act 2004 is amended as follows.
In Schedule 3 (restricted information held by the Regulator: certain...
In Schedule 8 (restricted information held by the Board: certain...
Omit section 95A (creative artists: relief for fluctuating profits).
Omit section 96 (farming and market gardening: relief for fluctuating...
(1) Amend section 15 (Schedule A) as follows.
Omit section 107 (treatment of receipts as earned income).
Omit section 108 (election for carry-back).
Omit section 109 (charge under section 104: relief for individuals...
(1) Amend section 109A (relief for post-cessation expenditure) as follows....
(1) Amend section 18 (Schedule D) as follows.
Omit section 110A (change of residence) and the italic cross-heading...
Omit section 112 (partnerships controlled abroad).
Omit section 113 (effect for income tax of change in...
The repeal of provisions and their enactment in a rewritten...
(1) In this Part— “enactment” includes an enactment comprised in...
(1) This paragraph applies to— (a) a policy in respect...
Section 542 (replacement of qualifying policies) does not apply if...
(1) Chapter 9 of Part 4 does not apply to...
(1) A policy of life insurance is not a “foreign...
A capital redemption policy is not a “foreign capital redemption...
In the case of a policy issued in respect of...
(1) This paragraph makes provision for the application of section...
(1) In the case of a policy issued in respect...
(1) In the case of a policy issued in respect...
(1) This paragraph applies to a contract for a life...
(1) This paragraph applies if, in the case of any...
(1) This paragraph makes provision for the application of section...
(1) A policy of life insurance issued in respect of...
(1) In the case of a 1998 Act excluded policy...
A capital redemption policy where the contract was made before...
(1) In the case of a 2003 Act excluded policy...
(1) This paragraph makes provision for the application of section...
(1) Sub-paragraph (2) applies to a policy if—
(1) In the case of a 2004 Act excluded policy...
(1) A contract for a life annuity made before 1st...
For the purposes of Chapter 9 of Part 4, a...
(1) This paragraph applies for the purposes of section 36....
(1) A policy meets the date condition if it is...
(1) A policy or contract meets the non-variation condition if...
A policy or contract meets the first selection condition at...
(1) A policy or contract meets the second selection condition...
(1) This paragraph applies to a policy or contract if—...
(1) This paragraph applies to a policy or contract if—...
In this Part of this Schedule “permitted index” means an...
(1) In this Part of this Schedule “permitted property”, in...
(1) In this Part of this Schedule “security” has the...
Section 604 applies with the omission of subsection (3)(b) in...
Sections 38 to 44 do not apply to deductions that...
Chapter 4 of Part 5 does not apply to an...
(1) That Chapter also does not apply to an IRU...
(1) Subject to sub-paragraph (4), section 627 applies before 6th...
(1) In relation to income which— (a) arises under a...
(1) In relation to any case which involves any previous...
In relation to any capital sum paid to the settlor...
(1) Sub-paragraph (2) applies if any previous tax year to...
A sum treated as part of the aggregate income of...
In the case of certificates acquired before 27th July 1981,...
Any scheme which was certified as mentioned in section 326(2)(c),...
(1) In relation to any time before the coming into...
A European authorised institution arrangement is not an institutional arrangement...
(1) Neither— (a) the Treasury specification rules, nor
In the case of dividends paid in respect of shares...
(1) Any determination in relation to an annuity as to...
(1) This paragraph applies if, in the case of an...
(1) Section 723(7) (liability to penalty for false statements and...
(1) Sections 727 (exemption for certain annual payments by individuals)...
Section 729 (exemption for payments for non-taxable consideration) applies in...
(1) Subject to sub-paragraphs (4) and (5), sections 731, 733...
(1) This paragraph applies if— (a) a disposal event is...
(1) Subject to sub-paragraph (7), sections 38 to 44 apply...
A claim may be made under section 831 (claim for...
(1) The fact that income arose in a tax year...
The fact that the earlier year referred to in subsections...
(1) A claim may be made under section 842 (claim...
(1) This paragraph applies for the purposes of section 865....
Section 866 does not apply to deductions that would otherwise...
(1) Subject to sub-paragraph (3), section 866 applies before 6th...
Section 870(2)(b) does not apply to expenditure which was incurred...
(1) This paragraph applies if— (a) a relevant period of...
Neither— (a) the inclusion of rules in section 582 for...
In relation to expenditure incurred under a contract entered into...
Section 820 of ICTA (application of Income Tax Acts from...
The amendments made by paragraphs 644 to 651 and 655...
Section 50 does not apply to expenditure which is incurred—...
Section 55(1)(b) does not apply to expenditure which was incurred...
(1) This paragraph relates to the operation of sections 60...
Paragraph 1 does not apply to any change made by...
(1) This paragraph provides for the application of section 61...
(1) This paragraph applies if— (a) the period of account...
(1) This paragraph applies if, without the modifications to section...
(1) This paragraph applies if— (a) at any time during...
Section 82 does not apply to any contribution which was...
To the extent that any function of the Scottish Ministers...
(1) This paragraph applies if— (a) fees have been incurred,...
(1) This paragraph applies if— (a) a sum is payable,...
(1) Sections 101 and 102 do not apply to a...
(1) Section 106 does not apply if—
Any subordinate legislation or other thing which—
To the extent that the power of the National Assembly...
(1) This paragraph applies to— (a) production expenditure in respect...
(1) Sections 134 and 135 do not apply in relation...
Section 137 does not apply in relation to expenditure which...
Sections 138 and 138A do not apply in relation to...
(1) Any requirement in Chapter 9 of Part 2 for...
Sections 139 and 140 do not apply if—
Sections 139(4) and 141(3) do not apply to any film...
The requirement in section 140 for the acquisition to be...
Chapter 10 of Part 2 does not apply to an...
(1) Any reference (express or implied) in this Act, another...
(1) That Chapter also does not apply to an IRU...
(1) Section 149 does not apply in relation to periods...
Section 156 does not apply if the purchase mentioned in...
(1) This paragraph applies if— (a) expenses have been incurred,...
If the predecessor ceased to carry on the trade carried...
If the trade carried on by the trader was started...
Section 167(2) does not apply for the purposes of sections...
(1) This paragraph applies if— (a) a period of account...
(1) This paragraph applies if— (a) a period of account...
(1) There is an exception to the rule that, subject...
(1) Any reference (express or implied) in any enactment, instrument...
(1) This paragraph applies if— (a) a person carries on...
(1) This paragraph applies if any profits or losses arising...
(1) This paragraph applies in the case of a trade,...
(1) This paragraph applies in the case of income which—...
The repeal by this Act of paragraphs 2, 6 and...
(1) The first tax years which may be the subject...
(1) Chapter 17 of Part 2 applies to a change...
(1) Subject to sub-paragraph (3), section 232 applies before 6th...
If— (a) an individual has made an election under paragraph...
Section 104(4) of ICTA (which, despite its repeal, applies in...
(1) Paragraphs 1 to 5 have effect instead of section...
(1) Subject to sub-paragraph (4), section 256 applies before 6th...
Chapter 18 of Part 2 does not apply in relation...
(1) This paragraph applies if— (a) a period of account...
Section 277 does not apply in relation to a lease...
Section 279 does not apply in relation to a lease...
Section 280 does not apply in relation to a lease...
Section 282 does not apply in relation to a lease...
(1) This paragraph relates to the operation of sections 287...
(1) This paragraph applies if— (a) in calculating the amount...
(1) Sub-paragraph (2) applies if— (a) in calculating the profits...
(1) The repeal by this Act of a transitional or...
(1) In relation to a lease granted after 12th June...
(1) In relation to a lease granted before 13th June...
(1) Section 311 does not apply to a reverse premium—...
Sections 312 to 314 do not apply to expenditure incurred...
(1) Subject to sub-paragraph (4), Chapter 6 of Part 3...
(1) Subject to sub-paragraph (3), section 504A of ICTA (as...
(1) Chapter 7 of Part 3 applies to a change...
The definition of “mineral royalties” in section 341(2) does not...
(1) Despite the enactment by this Act in the OEIC...
(1) This paragraph applies if— (a) share capital is issued...
Despite the repeal by this Act of section 104(4) of...
(1) Sub-paragraph (2) applies if— (a) as a result of...
(1) Despite the repeal by this Act of paragraph 14(4)...
(1) Sections 447 and 448 (restriction of profits and losses...
The references in section 454(4) and (5) to trustees include...
The references in section 454(4) and (5) to trustees include...
Securities only fall within paragraph (f) of section 710(3) of...
(1) This paragraph modifies the application of—
(1) Subject to sub-paragraph (4), before 6th April 2006 Chapter...
Section 505 (assignments involving co-ownership) does not have effect in...
(1) This paragraph applies if a calculation under section 507...
Regulations made under section 534 by virtue of paragraph 4...
(1) References in this Act to any person are to...
(1) For the purposes of Chapter 9 of Part 4,...
Despite paragraph 4(1) of this Schedule, the references in section...
Section 551 (charge to income tax on profits from disposal...
(1) This paragraph applies if— (a) a right falling within...
(1) A transaction consisting in the running of a future...
(1) Chapter 9 of Part 4 does not apply to—...
Section 500(c) (events treated as part surrenders: loan by insurer)...
Section 531(3)(c) (certain contracts for life annuities excluded from section...
Section 484(1)(d) (chargeable events: death in case of contract for...
Abbreviations and defined expressions
Meaning of “carried interest”
Deferred sums: exceptions
Overview
Qualifying carried interest: general rule
Average holding period
Timing of making investments
Disposals
Part disposals
Acquisitions from associated investment schemes
Unwanted short-term investments
Debt investments made by advancing money
Sums treated as “carried interest”
Disposals of debt investments
Derivatives
Hedging: exchange gains and losses
Hedging: interest rates
Significant interests
Venture capital funds
Significant equity stake funds
Controlling equity stake funds
Real estate funds
Credit funds
Consideration for right to sum of carried interest treated as “carried interest”
Funds of funds
Conditionally qualifying carried interest
Carried interest which ceases to be conditionally qualifying carried interest
Anti-avoidance
Treasury regulations
Interpretation of Part 3
Election for carried interest to be chargeable as scheme profits arise
Election in relation to scheme to apply to associated schemes
Interaction with other charges
Deemed trade losses where carried interest never arises
Tax distribution treated as “carried interest”
Anti-avoidance
Co-investment returns not “carried interest”
Definitions
Sums arising to connected persons other than companies
Sums arising to connected company or unconnected person
Deferred sums
Other sections — not classified into a Part
These sections sit outside the numbered Parts — usually provisions added or moved by later amendments.
...
Amended 2 timesOfficial guidance
Authoritative sources published by regulators or government explaining this legislation.
- Resource: Employer duties and safeguards (opens in a new tab) from TPR Detailed Guidance
- Employer duties and defining the workforce: An introduction to the employer duties (opens in a new tab) from TPR Detailed Guidance
- Self-employed record keeping (opens in a new tab) from HMRC Detailed Guidance
- Defer NI contributions (GOV.UK) (opens in a new tab) from HMRC Detailed Guidance
- Pay voluntary Class 2 NI (GOV.UK) (opens in a new tab) from HMRC Detailed Guidance
- Work out your rental income when you rent out a property (opens in a new tab) from HMRC Detailed Guidance
- VAT penalties and interest (opens in a new tab) from HMRC Detailed Guidance
- Making Tax Digital for VAT (opens in a new tab) from HMRC Detailed Guidance
- Making Tax Digital for Income Tax guidance (opens in a new tab) from HMRC Detailed Guidance
- Making Tax Digital for Income Tax - find compatible software (opens in a new tab) Detailed Guidance
- ... and 32 more
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
HM Revenue & Customs
Tax collection, customs duties, national insurance, tax credits, and enforcement of the National Minimum Wage. Regulates all UK businesses for tax compliance …
Connected legislation
1 statutory instrument
These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.
Secondary legislation (1)
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Regulators
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