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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 xxix
Income charged and person liable
621    Income charged
622    Person liable
Rules for calculating income
623    Calculation of income
Income treated as income of settlor: retained interests
624    Income where settlor retains an interest
625    Settlor’s retained interest
626    Exception for outright gifts between spouses
627    Exceptions for certain types of income
628    Exception for gifts to charities
Income treated as income of settlor: unmarried children
629    Income paid to unmarried minor children of settlor
630    Exception for gifts to charities
631    Retained and accumulated income
632    Offshore income gains
Capital sums treated as income of settlor: trustees’ payments
633    Capital sums paid to settlor by trustees of settlement
634    Meaning of “capital sum” and “sums paid to settlor”
635    Amount of available income
636    Calculation of undistributed income
637    Qualifications to section 636
Trustees’ payments: further provisions
638    Capital sums paid by way of loan or repayment of loan
639    Loans to participators in close companies
640    Grossing-up of deemed income
Capital sums treated as income of settlor: connected bodies
641    Capital sums paid to settlor by body connected with settlement
642    Exception for certain loans or repayments of loans
643    Interpretation of sections 641 and 642
Settlements by two or more settlors
644    Application to settlements by two or more settlors
645    Property or income originating from settlor
Other supplementary provisions
646    Adjustments between settlor and trustees etc.
647    Power to obtain information
648    Income arising under a settlement
Income Tax (Trading and Other Income) Bill xxx
Chapter 6
Beneficiaries’ income from estates in administration
Charge to tax on estate income
649    Charge to tax on estate income
650    Absolute, limited and discretionary interests
651    Meaning of “UK estate” and “foreign estate”
Types of estate income
652    Estate income: absolute interests in residue
653    Meaning of “the administration period” and “the final tax year”
654    Estate income: limited interests in residue
655    Estate income: discretionary interests in residue
Income charged and person liable
656    Income charged: UK estates
657    Income charged: foreign estates
658    Special rules for foreign income
659    Person liable
Basic amount of estate income: general calculation rules
660    Basic amount of estate income: absolute interests
661    Basic amount of estate income: limited interests
662    Basic amount of estate income: discretionary interests
663    The applicable rate for grossing up basic amounts of estate income
664    The aggregate income of the estate
Further provisions for calculating estate income relating to absolute interests
665    Assumed income entitlement
666    The residuary income of the estate
667    Shares of residuary income of estate
668    Reduction in share of residuary income of estate
669    Reduction in residuary income: inheritance tax on accrued income
670    Applicable rate for determining assumed income entitlement (UK estates)
Special rules for successive interests
671    Successive absolute interests
672    Successive interests: assumed income entitlement of holder of absolute
interest following limited interest
673    Successive interests: payments in respect of limited interests followed by
absolute interests
674    Successive interests: holders of limited interests
675    Basic amount of estate income: successive limited interests
676    Apportionments
Income Tax (Trading and Other Income) Bill xxxi
Relief where foreign estates have borne UK income tax
677    Relief where UK income tax borne by foreign estate: absolute interests
678    Relief where UK income tax borne by foreign estate: limited and discretionary
interests
General
679    Income from which basic amounts are treated as paid
680    Income treated as bearing income tax
681    Transfers of assets etc. treated as payments
682    Assessments, adjustments and claims after the administration period
Chapter 7
Annual payments not otherwise charged
683    Charge to tax on annual payments not otherwise charged
684    Income charged
685    Person liable
686    Payments received after deduction of tax
Chapter 8
Income not otherwise charged
687    Charge to tax on income not otherwise charged
688    Income charged
689    Person liable
Part 6
Exempt income
Chapter 1
Introduction
690    Overview of Part 6
Chapter 2
National savings income
691    National Savings Bank ordinary account interest
692    Income from savings certificates
693    Income from Ulster Savings Certificates
Chapter 3
Income from individual investment plans
694    Income from individual investment plans
695    Investment plans
696    Plan managers
Income Tax (Trading and Other Income) Bill xxxii
697    Special requirements for certain foreign managers
698    Requirements for discharge of foreign institution’s duties
699    Non-entitlement to exemption
700    Information
701    General and supplementary powers
Chapter 4
SAYE interest
702    Interest under certified SAYE savings arrangements
703    Meaning of “certified SAYE savings arrangement”
704    Types of arrangements and providers
705    Certification of arrangements
706    Withdrawal and variation of certifications and connected requirements
707    Authorisation of providers
708    Withdrawal and variation of authorisations
Chapter 5
Venture capital trust dividends
709    Venture capital trust dividends
710    Treatment of shares where annual acquisition limit exceeded
711    Identification of shares after disposals
712    Identification of shares after reorganisations etc.
Chapter 6
Income from FOTRA securities
713    Introduction: securities free of tax to residents abroad (“FOTRA securities”)
714    Exemption of profits from FOTRA securities
715    Interest from FOTRA securities held on trust
716    Restriction on deductions etc. relating to FOTRA securities
Chapter 7
Purchased life annuity payments
Partial exemption for purchased life annuity payments
717    Exemption for part of purchased life annuity payments
718    Excluded annuities
719    Extent of exemption under section 717
720    Exempt proportion: term dependent solely on duration of life
721    Exempt sum: term dependent solely on duration of life
722    Consideration for the grant of annuities
723    Determinations
724    Regulations
Immediate needs annuities
725    Annual payments under immediate needs annuities
Income Tax (Trading and Other Income) Bill xxxiii
726    Meaning of “care provider”
Chapter 8
Other annual payments
Certain annual payments by individuals
727    Certain annual payments by individuals
728    Commercial payments
729    Payments for non-taxable consideration
730    Foreign maintenance payments
Periodical payments of personal injury damages etc.
731    Periodical payments of personal injury damages
732    Compensation awards
733    Persons entitled to exemptions for personal injury payments etc.
734    Payments from trusts for injured persons
Health and employment insurance payments
735    Health and employment insurance payments
736    Health and employment risks and benefits
737    Period for which payments may be made
738    Risk of significant loss
739    Conditions to be met by policies also providing other benefits
740    Conditions to be met where policies are linked
741    Aggregation of policies where employment ends for health reasons
742    Meaning of “the insured”
743    Policies for the benefit of others who contribute to premiums
Payments to adopters
744    Payments to adopters: England and Wales
745    Payments to adopters: Scotland
746    Payments to adopters: Northern Ireland
747    Power to amend sections 744 to 746
Payments by persons liable to pool betting duty
748    Payments by persons liable to pool betting duty
Chapter 9
Other income
Interest only income
749    Interest paid under repayment supplements
750    Interest from tax reserve certificates
751    Interest on damages for personal injury
752    Interest under employees’ share schemes
753    Interest on repayment of student loan
Income Tax (Trading and Other Income) Bill xxxiv
754    Redemption of funding bonds
755    Interest on foreign currency securities etc. owned by non-UK residents
756    Which securities and loans are foreign currency ones for section 755
Interest and royalty payments
757    Interest and royalty payments: introduction
758    Exemption for certain interest and royalty payments
759    The person making the payment
760    The person beneficially entitled to the payment
761    Meaning of “25% associates”
762    Interest payments: exemption notices
763    Special relationships
764    Application of ICTA provisions about special relationships
765    Anti-avoidance
766    Interest and royalty payments: interpretation
767    Power to amend references to the Directive by Order
Income from commercial occupation of woodlands
768    Commercial occupation of woodlands
Housing grants
769    Housing grants
Approved share incentive plan distributions
770    Amounts applied by SIP trustees acquiring dividend shares or retained for
reinvestment
Foreign income of consular officers and employees
771    Relevant foreign income of consular officers and employees
772    Further provisions about Orders under section 771
Income of non-UK residents from certain securities
773    Income from Inter-American Development Bank securities
774    Income from securities issued by designated international organisations
Other
775    Income towards reducing the national debt
776    Scholarship income
777    VAT repayment supplements
778    Incentives to use electronic communications
779    Gains on commodity and financial futures
780    Disabled person’s vehicle maintenance grant
781    Payments under New Deal 50plus
782    Payments under employment zone programme
Income Tax (Trading and Other Income) Bill xxxv
Chapter 10
General
783    General disregard of exempt income for income tax purposes
Part 7
Income charged under this Act: rent-a-room and foster-care relief
Chapter 1
Rent-a-room relief
Introduction
784    Overview of Chapter 1
785    Person who qualifies for relief
Basic definitions
786    Meaning of “rent-a-room receipts”
787    Meaning of “residence”
788    Meaning of “total rent-a-room amount”
Individual’s limit
789    The individual’s limit
790    Exclusive receipts condition
Relief if amount does not exceed limit
791    Full rent-a-room relief: introduction
792    Full rent-a-room relief: trading income
793    Full rent-a-room relief: property income
794    Full rent-a-room relief: income chargeable under Chapter 8 of Part 5
Alternative calculation of profits if amount exceeds limit
795    Alternative calculation of profits: introduction
796    Alternative calculation of profits: trading income
797    Alternative calculation of profits: property income
798    Alternative calculation of profits: income chargeable under Chapter 8 of Part
5
Elections
799    Election not to apply full relief
800    Election for alternative method of calculating profits
801    Time limit on adjustment of assessment
Interpretation
802    Minor definitions

© Parliamentary copyright 2004	Revised 1 December 2004