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| | 8. In section 27 of the Taxes Act 1988 (maintenance funds for historic buildings), for subsection (3) substitute-
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"(3) Where by virtue of this section an election has effect in relation to an estate part of which is comprised in a settlement-
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(a) there may be treated as deductible from the receipts arising from that part- |
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(i) any disbursements or expenses of the trustees of the settlement which relate to the other part of the estate and which would be so deductible if that part were also comprised in the settlement, and
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(ii) any disbursements or expenses of the owner of the other part of the estate to the extent to which they cannot be deducted by him in the chargeable period in which they are incurred because of an insufficiency of any receipts for that period from which they are deductible apart from this sub-paragraph;
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(b) any relief available to the trustees by virtue of section 379A(2)(b) shall instead be available to the owner of the other part of the estate. |
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This subsection has effect subject to subsection (2A) of section 26.".
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| | 9. Section 28 of the Taxes Act 1988 (deductions from receipts other than rent) shall cease to have effect.
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| | 10. Section 29 of the Taxes Act 1988 (sporting rights) shall cease to have effect.
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| | 11. In section 30(1) of the Taxes Act 1988 (expenditure on sea walls)-
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(a) for "for the purposes of sections 25, 28 and 31" substitute "for the purpose of computing the profits of any Schedule A business carried on in relation to those premises"; and |
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(b) for "in respect of dilapidation attributable to the year" substitute "as an expense of the business for that year". |
| | 12. Section 31 of the Taxes Act 1988 (provisions supplementary to sections 25 to 30) shall cease to have effect.
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| | 13. Section 33 of the Taxes Act 1988 (agricultural land: allowance for excess expenditure on management) shall cease to have effect.
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| | 14. Sections 33A and 33B of the Taxes Act 1988 (connected persons) shall cease to have effect.
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| | 15. - (1) Section 34 of the Taxes Act 1988 (treatment of premiums, etc. as rent or Schedule D profits) is amended as follows.
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(2) For the sidenote substitute "Treatment of premiums, etc. as rent.".
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(3) In subsection (3) for the words from "from the rent" onwards substitute "as an expense of any Schedule A business carried on by the landlord".
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(4) In subsection (6) for the words from "no charge" onwards substitute "no amount shall fall under that subsection to be treated as a receipt of any Schedule A business carried on by the landlord; but that other person shall be taken to have received as income an amount equal to the amount which would otherwise fall to be treated as rent and to be chargeable to tax as if he had received it in consequence of having, on his own account, entered into a transaction falling to be treated as mentioned in paragraph 1(2) of Schedule A.".
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(5) After subsection (7) insert-
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"(7A) An amount treated under this section as rent shall be taken into account in computing the profits of the Schedule A business in question for the chargeable period in which it is treated as received.".
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(6) In subsection (8) for the words from "may, if that person satisfies the Board" to "at his option" substitute "may, at his option, be paid".
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| | 16. - (1) Section 35 of the Taxes Act 1988 (charge on assignment of lease granted at an undervalue) is amended as follows.
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(2) In the sidenote for "Schedule D charge" substitute "Charge".
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(3) In subsection (2) for the words from "treated as profits or gains" onwards substitute "deemed to have been received as income by the assignor and to have been received by him in consequence of his having entered into a transaction falling to be treated as mentioned in paragraph 1(2) of Schedule A.".
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(4) After that subsection insert-
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"(2A) An amount deemed under this section to have been received as income by the assignor-
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(a) is treated as received when the consideration mentioned in subsection (2) becomes payable, and |
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(b) shall be taken into account in computing the profits of the Schedule A business in question for the chargeable period in which it is treated as received.". |
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| | 17. - (1) Section 36 of the Taxes Act 1988 (charge on sale of land with right to reconveyance) is amended as follows.
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(2) In the sidenote for "Schedule D charge" substitute "Charge".
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(3) In subsection (1)-
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(a) for "the vendor shall be chargeable to tax under Case VI of Schedule D on" substitute "the following amount shall be deemed to have been received as income by the vendor and to have been received by him in consequence of his having entered into a transaction falling to be treated as mentioned in paragraph 1(2) of Schedule A, that is to say"; and |
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(b) for "on that excess" substitute "the amount of the excess". |
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(4) After subsection (4) insert-
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"(4A) An amount deemed under this section to have been received as income by the vendor-
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(a) is treated as received when the estate or interest is sold, and |
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(b) shall be taken into account in computing the profits of the Schedule A business in question for the chargeable period in which it is treated as received. |
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(4B) For the purposes of subsection (4A)(a) an estate or interest in land is treated as sold when any of the following occurs-
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(a) an unconditional contract for its sale is entered into, |
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(b) a conditional contract for its sale becomes unconditional, or |
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(c) an option or right of pre-emption is exercised requiring the vendor to enter into an unconditional contract for its sale.". |
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| | 18. - (1) Section 37 of the Taxes Act 1988 (deductions from premiums and rents received) is amended as follows.
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(2) In subsection (1) for paragraphs (a) and (b) substitute-
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"(a) any amount falls to be treated as a receipt of a Schedule A business by virtue of section 34 or 35, or |
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(b) any amount would fall to be so treated but for the operation of subsection (2) or (3) below,". |
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(3) In subsection (2)-
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(a) in paragraph (b), for the words from "be" to "any amount" substitute "be treated by virtue of section 34 or 35 as receiving any amount as income in the course of carrying on a Schedule A business"; and |
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(b) in the closing words, for "on which he is so chargeable" substitute "which he shall be treated as having so received". |
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(4) In subsection (3)-
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(a) for "chargeable under section 34 or 35" substitute "treated by virtue of section 34 or 35 as having received any amount as income in the course of carrying on a Schedule A business and falls to be so treated"; and |
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(b) for "on which he is so chargeable" substitute "which he shall be treated as having so received". |
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(5) In subsection (4) for the words from "purposes" to "other premises" substitute "purpose, in computing the profits of a Schedule A business, of making deductions in respect of the disbursements and expenses of that business".
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| | 19. For the heading before section 40 of the Taxes Act 1988 substitute "Supplementary provisions".
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