Income Tax (Trading and Other Income) Bill

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Session 2004 - 05
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Income Tax (Trading and Other Income) Bill

Income Tax (Trading and Other Income) Bill
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Chapter 2
Foster-care relief
Introduction
803
Overview of Chapter 2
804
Person who qualifies for relief
Basic definitions
805
Meaning of “foster-care receipts”
806
Meaning of providing foster care
807
Calculation of “total foster-care receipts”
Individual’s limit
808
The individual’s limit
809
Share of fixed amount: residence used by more than one foster carer
810
Share of fixed amount: income period not a year
811
The amount per child
Relief if amount does not exceed limit
812
Full foster-care relief: introduction
813
Full foster-care relief: trading income
814
Full foster-care relief: income chargeable under Chapter 8 of Part 5
Alternative calculation of profits if amount exceeds limit
815
Alternative calculation of profits: introduction
816
Alternative calculation of profits: trading income
817
Alternative calculation of profits: income chargeable under Chapter 8 of Part
5
818
Election for alternative method of calculating profits
819
Adjustment of assessment
Periods of account not ending on 5th April
820
Periods of account not ending on 5th April
821
Meaning of “relevant limit”
822
Full relief
823
Alternative method of calculating profits
Capital allowances for foster carers carrying on trade
824
Capital allowances: introduction
825
Carried forward unrelieved qualifying expenditure
826
Excluded capital expenditure
827
Excluded capital expenditure: subsequent treatment of asset
Overlap profit
828
Overlap profit

Income Tax (Trading and Other Income) Bill
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Part 8
Foreign income: special rules
Chapter 1
Introduction
829
Overview of Part 8
830
Meaning of “relevant foreign income”
Chapter 2
Relevant foreign income charged on remittance basis
Remittance basis
831
Claims for relevant foreign income to be charged on the remittance basis
832
Relevant foreign income charged on the remittance basis
833
Income treated as remitted: repayment of UK-linked debts
834
Arrangements treated as repayment of UK-linked debts
Relief for delayed remittances
835
Relief for delayed remittances
836
Relief for delayed remittances: backdated pensions
837
Claims for relief on delayed remittances
Chapter 3
Relevant foreign income charged on arising basis: deductions and reliefs
838
Expenses attributable to collection or payment of relevant foreign income
839
Annual payments payable out of relevant foreign income
840
Relief for backdated pensions charged on the arising basis
Chapter 4
Unremittable income
841
Unremittable income: introduction
842
Claim for relief for unremittable income
843
Withdrawal of relief
844
Income charged on withdrawal of relief after source ceases
845
Valuing unremittable income
Part 9
Partnerships
Introduction
846
Overview of Part 9
847
General provisions

Income Tax (Trading and Other Income) Bill
xxxviii

848
Assessment of partnerships
Calculation of partners’ shares
849
Calculation of firm’s profits or losses
850
Allocation of firm’s profits or losses between partners
851
Calculations etc. where firm has other income or losses
Firms with trading income
852
Carrying on by partner of notional trade
853
Basis periods for partners’ notional trades
Firms with trading and other source income
854
Carrying on by partner of notional business
855
Basis periods for partners’ notional businesses
856
Overlap profits from partners’ notional businesses
Firms with a foreign element
857
Partners to whom the remittance basis may apply
858
Resident partners and double taxation agreements
Miscellaneous
859
Special provisions about farming and property income
860
Adjustment income
861
Sale of patent rights: effect of partnership changes
862
Sale of patent rights: effect of later cessation of trade
863
Limited liability partnerships
Part 10
General provisions
Chapter 1
Introduction
864
Overview of Part 10
Chapter 2
General calculation rules etc.
Unpaid remuneration
865
Unpaid remuneration: non-trades and non-property businesses
Employee benefit contributions
866
Employee benefit contributions: non-trades and non-property businesses

Income Tax (Trading and Other Income) Bill
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Business entertainment and gifts
867
Business entertainment and gifts: non-trades and non-property businesses
Social security contributions
868
Social security contributions: non-trades etc.
Penalties, interest and VAT surcharges
869
Penalties, interest and VAT surcharges: non-trades etc.
Crime-related payments
870
Crime-related payments: non-trades and non-property businesses
Apportionment of profits
871
Apportionment etc. of miscellaneous profits to tax year
Calculation of losses
872
Losses calculated on same basis as miscellaneous income
Chapter 3
Supplementary and general provisions
Orders and regulations
873
Orders and regulations made by Treasury or Board
Interpretation
874
Activities in UK sector of continental shelf
875
Meaning of “caravan”
876
Meaning of “farming” and related expressions
877
Meaning of grossing up
878
Other definitions
879
Interpretation: Scotland
880
Interpretation: Northern Ireland
General and final
881
Disapplication of corporation tax: section 9 of ICTA
882
Consequential amendments
883
Commencement and transitional provisions etc.
884
Repeals and revocations
885
Abbreviations and general index in Schedule 4
886
Short title

Income Tax (Trading and Other Income) Bill
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Schedule 1   —
Consequential amendments
Part 1   —
Income and Corporation Taxes Act 1988
Part 2   —
Other enactments
Schedule 2   —
Transitionals and savings etc.
Part 1   —
General provisions
Part 2   —
Changes in the law
Part 3   —
Trading income
Part 4   —
Property income
Part 5   —
Savings and investment income: general
Part 6   —
Savings and investment income: insurance contracts and
policies made before certain dates
Part 7   —
Savings and investment income: gains from contracts for life
insurance etc. (personal portfolio bonds)
Part 8   —
Miscellaneous income
Part 9   —
Exempt income
Part 10   —
Foster-care relief
Part 11   —
Foreign income: special rules
Part 12   —
Other provisions
Schedule 3   —
Repeals and revocations
Schedule 4   —
Abbreviations and defined expressions
Part 1   —
Abbreviations of Acts
Part 2   —
Index of expressions defined in this Act etc.

© Parliamentary copyright 2004
Revised 1 December 2004