|
| |
|
(b) | section 272 (in relation to property businesses). |
| |
| |
871 | Apportionment etc. of miscellaneous profits to tax year |
| |
(1) | This section applies if— |
| |
(a) | income is chargeable to income tax under or by virtue of any provision |
| 5 |
to which section 836B of ICTA applies, and |
| |
(b) | any period for which the accounts are drawn up (a “period of account”) |
| |
does not coincide with a tax year. |
| |
(2) | For this purpose the reference to any provision to which section 836B of ICTA |
| |
applies is to be read as if subsection (4)(a) of that section were omitted |
| 10 |
(exclusion for relevant foreign income charged under this Act). |
| |
(3) | Any of the following steps may be taken if they are necessary in order to arrive |
| |
at the profits or losses of the tax year— |
| |
(a) | apportioning the profits or losses of a period of account to the parts of |
| |
that period falling in different tax years, and |
| 15 |
(b) | adding the profits or losses of a period of account (or part of a period) |
| |
to profits or losses of other periods of account (or parts). |
| |
(4) | The steps must be taken by reference to the number of days in the periods |
| |
| |
(5) | But the person to whom the profits or losses arise may use a different way of |
| 20 |
measuring the length of the periods concerned if— |
| |
(a) | it is reasonable to do so, and |
| |
(b) | the way of measuring the length of periods is used consistently for the |
| |
purpose of charging to income tax the income in question. |
| |
| 25 |
872 | Losses calculated on same basis as miscellaneous income |
| |
(1) | The same rules apply for income tax purposes in calculating miscellaneous |
| |
losses as apply in calculating corresponding miscellaneous income. |
| |
(2) | This is subject to any express provision to the contrary. |
| |
| 30 |
(a) | “miscellaneous income” means profits or other income charged to |
| |
income tax under or by virtue of a provision to which section 836B of |
| |
| |
(b) | “miscellaneous losses” means losses arising from a transaction which is |
| |
of such a nature that, if profits or other income had arisen from it, the |
| 35 |
income would have been charged to income tax under or by virtue of |
| |
| |
(4) | Provision corresponding to that made by this section is made by— |
| |
(a) | section 26 (in relation to trades, professions and vocations), and |
| |
(b) | section 272 (in relation to property businesses). |
| 40 |
|
| |
|
| |
|
| |
Supplementary and general provisions |
| |
| |
873 | Orders and regulations made by Treasury or Board |
| |
(1) | Any power of the Treasury or the Board of Inland Revenue to make any order |
| 5 |
or regulations under this Act is exercisable by statutory instrument. |
| |
(2) | Any statutory instrument containing any order or regulations made by the |
| |
Treasury or the Board of Inland Revenue under this Act is subject to annulment |
| |
in pursuance of a resolution of the House of Commons. |
| |
(3) | Subsection (2) does not apply in relation to any order or regulations made |
| 10 |
| |
(a) | section 86 (meaning of “urban regeneration company”), |
| |
(b) | section 724 (purchased life annuity payments), |
| |
(c) | section 774 (income from securities issued by designated international |
| |
| 15 |
(d) | section 883(5) (transitional or saving provision). |
| |
| |
874 | Activities in UK sector of continental shelf |
| |
| |
(a) | from exploration or exploitation activities carried on in the UK sector of |
| 20 |
the continental shelf, or |
| |
(b) | from exploration or exploitation rights, |
| |
| are treated for income tax purposes as profits from activities or property in the |
| |
| |
| 25 |
“exploration or exploitation activities” means activities carried on in |
| |
connection with the exploration or exploitation of so much of the |
| |
seabed and subsoil and their natural resources as is situated in the |
| |
United Kingdom or the UK sector of the continental shelf, |
| |
“exploration or exploitation rights” means rights to assets to be produced |
| 30 |
by exploration or exploitation activities or interests in or to the benefit |
| |
| |
“the UK sector of the continental shelf” means the areas designated by |
| |
Order in Council under section 1(7) of the Continental Shelf Act 1964 |
| |
| 35 |
| |
(1) | In this Act “caravan” means— |
| |
(a) | a structure designed or adapted for human habitation which is capable |
| |
of being moved by being towed or being transported on a motor vehicle |
| |
| 40 |
(b) | a motor vehicle designed or adapted for human habitation, |
| |
|
| |
|
| |
|
| but does not include railway rolling stock which is on rails forming part of a |
| |
railway system or any tent. |
| |
(2) | A structure composed of two sections— |
| |
(a) | separately constructed, and |
| |
(b) | designed to be assembled on a site by means of bolts, clamps or other |
| 5 |
| |
| is not prevented from being a caravan just because it cannot, when assembled, |
| |
be lawfully moved on a highway (or, in Scotland or Northern Ireland, road) by |
| |
being towed or being transported on a motor vehicle or trailer. |
| |
876 | Meaning of “farming” and related expressions |
| 10 |
(1) | In this Act “farming” means the occupation of land wholly or mainly for the |
| |
purposes of husbandry, but does not include market gardening (see subsection |
| |
| |
(2) | Husbandry includes (for example)— |
| |
| 15 |
(b) | the breeding and rearing of horses and the grazing of horses in |
| |
connection with those activities. |
| |
(3) | For the purposes of this Act the cultivation of short rotation coppice is |
| |
regarded as farming and not as forestry. |
| |
(4) | In this Act “woodlands” does not include land on which short rotation coppice |
| 20 |
| |
(5) | In this Act “market gardening” means the occupation of land as a garden or |
| |
nursery for the purpose of growing produce for sale. |
| |
(6) | For the purposes of this section “short rotation coppice” means a perennial |
| |
crop of tree species planted at high density, the stems of which are harvested |
| 25 |
above ground level at intervals of less than 10 years. |
| |
877 | Meaning of grossing up |
| |
(1) | In this Act references to grossing up by reference to a rate of tax are to |
| |
calculating the amount (“the gross amount”) which after deduction of income |
| |
tax at that rate would equal the amount to be grossed up (“the net amount”). |
| 30 |
(2) | The gross amount is the sum of the net amount and the tax deducted. |
| |
(3) | The gross amount may also be expressed as—![equation: equal[times[char[G],char[A]],plus[times[char[N],char[A]],lparen[times[char[N],cross[
char[A],rparen[over[char[R],plus[num[100.0000000000000000,"100"],minus[char[R]]]]]]]]]]](missing.gif) |
| |
| |
| |
NA is the net amount, and |
| 35 |
R is the percentage rate of tax by reference to which the net amount is to |
| |
| |
|
| |
|
| |
|
| |
(1) | In this Act, unless otherwise indicated (whether expressly or by implication)— |
| |
“the Board of Inland Revenue” means the Commissioners of Inland |
| |
| |
“charity” means a body of persons or trust established for charitable |
| 5 |
| |
“houseboat” means a boat or similar structure designed or adapted for use |
| |
as a place of human habitation, |
| |
“income” includes amounts treated as income (whether expressly or by |
| |
| 10 |
“the Inland Revenue” means any officer of the Board of Inland Revenue, |
| |
“non-UK resident” means not resident in the United Kingdom (and |
| |
references to a non-UK resident or a non-UK resident person are to a |
| |
person who is not resident there), |
| |
“normal self-assessment filing date”, in relation to a tax year, means the |
| 15 |
31st January following the tax year, |
| |
“personal representatives”, in relation to a person who has died, means— |
| |
(a) | in the United Kingdom, persons responsible for administering |
| |
the estate of the deceased, and |
| |
(b) | in a territory outside the United Kingdom, those persons having |
| 20 |
functions under its law equivalent to those of administering the |
| |
| |
“tax year”, in relation to income tax, means a year for which any Act |
| |
provides for income tax to be charged, |
| |
“the tax year 2005-06” means the tax year beginning on 6th April 2005 |
| 25 |
(and any corresponding expression in which two years are similarly |
| |
mentioned is to be read in the same way), and |
| |
“UK resident” means resident in the United Kingdom (and references to a |
| |
UK resident or a UK resident person are to a person who is resident |
| |
| 30 |
(2) | For the purposes of this Act, the remittance basis applies to a person for a tax |
| |
year for which the person makes a claim under section 831 (claims for relevant |
| |
foreign income to be charged on the remittance basis). |
| |
(3) | In this Act any reference to a claim or election is to a claim or election in writing |
| |
or in any form authorised (in relation to the case in question) by directions |
| 35 |
under section 118 of FA 1998. |
| |
(4) | For further information about claims and elections, see TMA 1970 (in |
| |
particular, section 42(2), (10) and (11) and Schedule 1A). |
| |
(5) | Section 839 of ICTA (how to tell whether persons are connected) applies for the |
| |
purposes of this Act unless otherwise indicated (whether expressly or by |
| 40 |
| |
(6) | Section 840 of ICTA (meaning of control in relation to a body corporate) applies |
| |
for the purposes of this Act unless otherwise indicated (whether expressly or |
| |
| |
879 | Interpretation: Scotland |
| 45 |
(1) | In the application of this Act to Scotland— |
| |
“assignment” means an assignation, |
| |
|
| |
|
| |
|
| |
(a) | a standard security, or |
| |
(b) | a heritable security, as defined in the Conveyancing (Scotland) |
| |
Act 1924 (c. 27), but including a security constituted by ex facie |
| |
absolute disposition or assignation, and |
| 5 |
“surrender” includes renunciation. |
| |
(2) | In the application of this Act to Scotland, any reference to property or rights |
| |
being held on trust or on trusts is a reference to the property or rights being |
| |
| |
(3) | In the application of section 755 (interest on foreign currency securities etc. |
| 10 |
owned by non-UK residents) to Scotland, “Act” includes an Act of the Scottish |
| |
| |
(4) | In the application of sections 769 (housing grants) and 882 (consequential |
| |
amendments) and Part 1 of Schedule 2 (transitionals and savings: general |
| |
provisions) to Scotland, “enactment” includes an enactment comprised in, or in |
| 15 |
an instrument made under, an Act of the Scottish Parliament. |
| |
(5) | The express provision made by subsection (3) does not affect the construction |
| |
of “enactment” in the application of section 631 (retained and accumulated |
| |
| |
880 | Interpretation: Northern Ireland |
| 20 |
(1) | In the application of section 755 (interest on foreign currency securities etc. |
| |
owned by non-UK residents) to Northern Ireland, “Act” includes any Act, |
| |
Order in Council or Measure constituting Northern Ireland legislation. |
| |
(2) | In the application of section 769 (housing grants) and 882 (consequential |
| |
amendments) and Part 1 of Schedule 2 (transitionals and savings: general |
| 25 |
provisions) to Northern Ireland, “enactment” includes an enactment |
| |
comprised in, or in an instrument made under, Northern Ireland legislation. |
| |
(3) | The express provision made by subsection (2) does not affect the construction |
| |
of “enactment” in the application of section 631 (retained and accumulated |
| |
income) to Northern Ireland. |
| 30 |
| |
881 | Disapplication of corporation tax: section 9 of ICTA |
| |
Section 9 of ICTA (computation of income for corporation tax purposes: |
| |
application of income tax principles) does not operate on the provisions of this |
| |
Act so as to convert them into provisions of the Corporation Tax Acts. |
| 35 |
882 | Consequential amendments |
| |
(1) | Schedule 1 (which contains consequential amendments) has effect. |
| |
(2) | The Treasury may by order make such modifications of any enactment or |
| |
provision made under an enactment as the Treasury consider appropriate in |
| |
| 40 |
(3) | In subsection (2) “modifications” includes amendments or repeals. |
| |
|
| |
|
| |
|
(4) | An order under subsection (2)— |
| |
(a) | must not change the effect of the law as it was immediately before 6th |
| |
| |
(b) | may include such transitional or saving provision as the Treasury |
| |
| 5 |
(5) | Subsection (4)(a) does not apply so far as an order contains provision made in |
| |
consequence of a change already made by this Act in the effect of the law. |
| |
883 | Commencement and transitional provisions etc. |
| |
(1) | This Act comes into force on 6th April 2005 and has effect— |
| |
(a) | for income tax purposes, for the tax year 2005-06 and subsequent tax |
| 10 |
| |
(b) | for corporation tax purposes, for accounting periods ending after 5th |
| |
| |
(2) | Subsection (1) is subject to subsections (3) to (5) (including Schedule 2). |
| |
(3) | Subsection (1) does not apply to the following provisions of this Act (which |
| 15 |
therefore come into force on the passing of this Act)— |
| |
(a) | section 873 (orders and regulations made by Treasury or Board), |
| |
(b) | sections 875 to 881 (certain interpretation and general provisions), |
| |
(c) | section 882(2) to (5) (power to make consequential amendments), |
| |
(d) | this section other than subsection (4) below, |
| 20 |
(e) | section 885 and Schedule 4 (abbreviations and general index), |
| |
(f) | section 886 (short title), and |
| |
(g) | paragraphs 78 and 148(5) of Schedule 2 (powers relating to open-ended |
| |
investment companies and periodical payments of personal injury |
| |
damages etc.) and subsection (4) below so far as it applies for the |
| 25 |
purposes of those provisions. |
| |
(4) | Schedule 2 (which contains transitional provisions and savings etc.) has effect. |
| |
(5) | The Treasury may by order make such transitional or saving provision as the |
| |
Treasury consider appropriate in connection with the coming into force of this |
| |
| 30 |
884 | Repeals and revocations |
| |
Schedule 3 (which contains repeals and revocations of enactments including |
| |
certain spent enactments) has effect. |
| |
885 | Abbreviations and general index in Schedule 4 |
| |
(1) | Schedule 4 (which contains abbreviations and defined expressions that apply |
| 35 |
for the purposes of this Act) has effect. |
| |
(2) | Part 1 of that Schedule gives the meaning of the abbreviated references to Acts |
| |
| |
(3) | Part 2 of that Schedule lists the places where expressions used in this Act are |
| |
defined or otherwise explained— |
| 40 |
(a) | in this Act for the purposes of this Act or for purposes including this |
| |
| |
|
| |