• Home
• Parliamentary business
• MPs, Lords & offices
• About Parliament
• Get involved
• Visiting
• Education

• House of Commons
• House of Lords
• What's on
• Bills & legislation
• Committees
• Publications & records
• Parliament TV
• News
• Topics

House of Commons

Session 2004 - 05 Internet Publications Other Bills before Parliament

Income Tax (Trading and Other Income) Bill

Income Tax (Trading and Other Income) Bill xv
Part 3
Property income
Chapter 1
Introduction
260    Overview of Part 3
261    Provisions which must be given priority over Part 3
262    Priority between Chapters within Part 3
Chapter 2
Property businesses
Introduction
263    Introduction
Basic meaning of UK and overseas property business
264    UK property business
265    Overseas property business
Generating income from land
266    Meaning of “generating income from land”
267    Activities not for generating income from land
Chapter 3
Profits of property businesses: basic rules
Charge to tax on profits of a property business
268    Charge to tax on profits of a property business
269    Territorial scope of charge to tax
270    Income charged
271    Person liable
Calculation of profits
272    Profits of a property business: application of trading income rules
273    Amounts not brought into account as part of a property business
274    Relationship between rules prohibiting and allowing deductions
Apportionment of profits
275    Apportionment etc. of profits to tax year
Income Tax (Trading and Other Income) Bill xvi
Chapter 4
Profits of property businesses: lease premiums etc.
Introduction
276    Introduction
Amounts treated as receipts: leases
277    Lease premiums
278    Amount treated as lease premium where work required
279    Sums payable instead of rent
280    Sums payable for surrender of lease
281    Sums payable for variation or waiver of term of lease
282    Assignments for profit of lease granted at undervalue
283    Provisions supplementary to section 282
Other amounts treated as receipts
284    Sales with right to reconveyance
285    Sale and leaseback transactions
286    Provisions supplementary to sections 284 and 285
Additional calculation rule for reducing certain receipts
287    Circumstances in which additional calculation rule applies
288    The additional calculation rule
289    The additional calculation rule: special cases
290    Meaning of “unused amount” and “unreduced amount”
Deductions in relation to certain receipts
291    Deductions for expenses under section 292
292    Tenants under taxed leases treated as incurring expenses
293    Restrictions on section 292 expenses: the additional calculation rule
294    Restrictions on section 292 expenses: lease of part of premises
Limit on effect of additional calculation rule and deductions
295    Limit on reductions and deductions
Relationship with ICTA
296    Corporation tax receipts treated as taxed receipts
297    Taking account of reductions in corporation tax receipts
298    Taking account of deductions for rent as a result of section 37(4) or 87(2) of
ICTA
Certain administrative provisions
299    Payment of tax by instalments
300    Statement of accuracy for purposes of section 282
301    Claim for repayment of tax payable by virtue of section 284
Income Tax (Trading and Other Income) Bill xvii
302    Claim for repayment of tax payable by virtue of section 285
Effective duration of lease
303    Rules for determining effective duration of lease
304    Applying the rules in section 303
305    Information about effective duration of lease
Other interpretative provisions
306    Provisions about premiums
307    Interpretation
Chapter 5
Profits of property businesses: other rules about receipts and deductions
Furnished accommodation: receipts and deductions
308    Furnished lettings
309    Rent-a-room relief
Treatment of receipts on acquisition of business
310    Acquisition of business: receipts from transferor’s UK property business
Reverse premiums as receipts
311    Reverse premiums
Deductions for expenditure on energy-saving items
312    Deduction for expenditure on energy-saving items
313    Restrictions on relief
314    Regulations
Deductions for expenditure on sea walls
315    Deduction for expenditure on sea walls
316    Transfer of interest in premises
317    Ending of lease of premises
318    Transfer involving company within the charge to corporation tax
Mineral royalties
319    Relief in respect of mineral royalties
Apportionments on sale of land
320    Nature of item apportioned on sale of estate or interest in land
Mutual business
321    Mutual business
Income Tax (Trading and Other Income) Bill xviii
Chapter 6
Commercial letting of furnished holiday accommodation
Introduction
322    Introduction
Definition
323    Meaning of “commercial letting of furnished holiday accommodation”
324    Meaning of “relevant period” in sections 325 and 326
325    Meaning of “qualifying holiday accommodation”
326    Under-used holiday accommodation: averaging elections
Separate profit calculations
327    Capital allowances and loss relief
328    Earned income and relevant UK earnings for pension purposes
Chapter 7
Adjustment income
Adjustment on change of basis
329    Application of Chapter
330    Adjustment income and adjustment expense
331    Income charged
332    Person liable
Treatment of adjustment income and adjustment expense
333    Treatment of adjustment income
334    Treatment of adjustment expense
Chapter 8
Rent receivable in connection with a UK section 12(4) concern
Charge to tax on rent receivable in connection with a UK section 12(4) concern
335    Charge to tax on rent receivable in connection with a UK section 12(4) concern
336    Meaning of “rent receivable in connection with a UK section 12(4) concern”
337    Income charged
338    Person liable
Management expenses of owner of mineral rights
339    Deduction for management expenses of owner of mineral rights
Mineral royalties
340    Relief in respect of mineral royalties
Income Tax (Trading and Other Income) Bill xix
341    Meaning of “mineral lease or agreement” and “mineral royalties”
342    Extended meaning of “mineral royalties” etc. in Northern Ireland
343    Power of Board to determine what counts as “mineral royalties”
Chapter 9
Rent receivable for UK electric-line wayleaves
Charge to tax on rent receivable for UK electric-line wayleaves
344    Charge to tax on rent receivable for a UK electric-line wayleave
345    Meaning of “rent receivable for a UK electric-line wayleave”
346    Extent of charge to tax
347    Income charged
348    Person liable
Chapter 10
Post-cessation receipts
Charge to tax on post-cessation receipts
349    Charge to tax on post-cessation receipts
350    Extent of charge to tax
351    Income charged
352    Person liable
Meaning of "post-cessation receipts"
353    Basic meaning of “post-cessation receipt”
354    Other rules about what counts as a “post-cessation receipt”
355    Transfer of rights if transferee does not carry on UK property business
Supplementary
356    Application to Schedule A businesses
Chapter 11
Overseas property income
357    Charge to tax on overseas property income
358    Meaning of “overseas property income”
359    Income charged
360    Person liable
Chapter 12
Supplementary
361    Changes in trustees and personal representatives
362    Effect of company starting or ceasing to be within charge to income tax
363    Overseas property businesses and overseas land: adaptation of rules
364    Meaning of “lease” and “premises”
Income Tax (Trading and Other Income) Bill xx
Part 4
Savings and investment income
Chapter 1
Introduction
365    Overview of Part 4
366    Provisions which must be given priority over Part 4
367    Priority between Chapters within Part 4
368    Territorial scope of Part 4 charges
Chapter 2
Interest
Charge to tax on interest
369    Charge to tax on interest
370    Income charged
371    Person liable
Other income taxed as interest
372    Building society dividends
373    Open-ended investment company interest distributions
374    Date when interest payments under section 373 made
375    Interpretation of sections 373 and 374
376    Authorised unit trust interest distributions
377    Date when interest payments under section 376 made
378    Interpretation of sections 376 and 377
379    Industrial and provident society payments
380    Funding bonds
381    Discounts
Chapter 3
Dividends etc. from UK resident companies etc.
Introduction
382    Contents of Chapter
Charge to tax on dividends and other distributions
383    Charge to tax on dividends and other distributions
384    Income charged
385    Person liable
Amounts treated as dividends
386    Open-ended investment company dividend distributions
387    Date when dividends paid under section 386
Income Tax (Trading and Other Income) Bill xxi
388    Interpretation of sections 386 and 387
389    Authorised unit trust dividend distributions
390    Date when dividends paid under section 389
391    Interpretation of sections 389 and 390
Shares in approved share incentive plans ("SIPs")
392    SIP shares: introduction
393    Later charge where cash dividends retained in SIPs are paid over
394    Distribution when dividend shares cease to be subject to SIP
395    Reduction in tax due in cases within section 394
396    Interpretation of sections 392 to 395
Tax credits and payment and deduction of tax
397    Tax credits for qualifying distributions: UK residents and eligible non-UK
residents
398    Increase in amount or value of dividends where tax credit available
399    Qualifying distributions received by persons not entitled to tax credits
400    Non-qualifying distributions
401    Relief: qualifying distribution after linked non-qualifying distribution
Chapter 4
Dividends from non-UK resident companies
Charge to tax on dividends from non-UK resident companies
402    Charge to tax on dividends from non-UK resident companies
403    Income charged
404    Person liable
Shares in approved share incentive plans ("SIPs")
405    SIP shares: introduction
406    Later charge where cash dividends retained in SIPs are paid over
407    Dividend payment when dividend shares cease to be subject to SIP
408    Reduction in tax due in cases within section 407
Chapter 5
Stock dividends from UK resident companies
409    Charge to tax on stock dividend income
410    When stock dividend income arises
411    Income charged
412    Cash equivalent of share capital
413    Person liable
414    Income tax treated as paid

© Parliamentary copyright 2004	Revised 1 December 2004