|
| |
|
(b) | in sub-paragraph (7)— |
| |
(i) | before “tax” insert “corporation”, and |
| |
(ii) | for “chargeable period” substitute “accounting period”. |
| |
(9) | In paragraph 11 for “chargeable period” substitute “accounting period”. |
| |
344 | Omit Schedule 5AA (guaranteed returns on transactions in futures and |
| 5 |
| |
345 | Omit Schedule 15A (contractual savings schemes). |
| |
346 (1) | Amend Schedule 15B (venture capital trusts: relief from income tax) as |
| |
| |
(2) | In paragraph 4(1) and (2) omit “under Case VI of Schedule D”. |
| 10 |
(3) | Omit paragraphs 7 to 9. |
| |
347 (1) | Amend Schedule 20 (charities: qualifying investments and loans) as follows. |
| |
(2) | After paragraph 7 insert— |
| |
“7A | Uncertificated eligible debt security units as defined in section |
| |
| 15 |
(3) | In paragraph 8 for “section 56(5)” substitute “for corporation tax purposes in |
| |
section 56(5) above and for income tax purposes in section 552(2) of ITTOIA |
| |
| |
348 (1) | Amend Schedule 22 (reduction of pension fund surpluses) as follows. |
| |
(2) | In paragraph 7(3)(c) for the words from “section 56” to “that section” |
| 20 |
substitute “section 551 of ITTOIA 2005 shall by virtue of section 56(3)(b) of |
| |
| |
(3) | After paragraph 7 insert— |
| |
“7A (1) | This paragraph applies if a calculation falls to be made under |
| |
paragraph 7 above in a case where— |
| 25 |
(a) | relief is to be given under section 454 of ITTOIA 2005 |
| |
(listed deeply discounted securities held since 26th March |
| |
2003: relief for losses) in respect of a loss sustained on the |
| |
disposal of securities, and |
| |
(b) | had there been a profit on the disposal it would have been |
| 30 |
eligible for relief from tax for the year of assessment in |
| |
which the loss is sustained by virtue of section 592(2). |
| |
(2) | That relief is to be given before the calculation under paragraph 7 |
| |
| |
(3) | Then the amount of income to which the specified percentage is |
| 35 |
applied by virtue of sub-paragraph (3)(a) of that paragraph is |
| |
reduced by the amount of that relief. |
| |
(4) | In this paragraph “disposal” has the same meaning as in Chapter |
| |
8 of Part 4 of ITTOIA 2005.” |
| |
349 | In paragraph 11A(4) of Schedule 24 (assumptions for calculating chargeable |
| 40 |
profits etc. of foreign companies) after “the Capital Allowances Act” insert |
| |
“or section 48 of ITTOIA 2005”. |
| |
|
| |
|
| |
|
350 (1) | Amend Schedule 27 (distributing funds) as follows. |
| |
(2) | In paragraph 1(1)(d) after “under” insert “— |
| |
(i) | Chapter 4 of Part 4 of ITTOIA 2005 (dividends from |
| |
non-UK resident companies), |
| |
(ii) | Chapter 8 of Part 5 of that Act (income not |
| 5 |
otherwise charged) so far as it relates to relevant |
| |
foreign distributions (within the meaning given by |
| |
section 1A(8) of this Act), or |
| |
| |
(3) | In paragraph 3(1)(a)(i)— |
| 10 |
(a) | omit “Case IV or”, and |
| |
(b) | after “Schedule D” insert “, or under ITTOIA 2005 on relevant foreign |
| |
| |
(4) | In paragraph 5(5) after “1996” insert “or section 714 or 715 of ITTOIA 2005”. |
| |
351 (1) | Amend Schedule 28AA (provision not at arm’s length) as follows. |
| 15 |
(2) | In paragraph 6A(3) for “(valuation of trading stock at discontinuance of |
| |
trade) (see subsection (2) of that section)” substitute “above (see subsection |
| |
(2) of that section) or Chapter 12 of Part 2 of ITTOIA 2005 (see section 174 of |
| |
that Act) (valuation of trading stock at discontinuance of trade)”. |
| |
(3) | In paragraph 6E after “Schedule D” insert “or Chapter 2 of Part 4 of ITTOIA |
| 20 |
| |
(4) | In paragraph 11(1) after “section 492(1)” insert “above or section 16(1) of |
| |
| |
352 (1) | Amend Schedule 30 (transitional provisions and savings) as follows. |
| |
| 25 |
(a) | in sub-paragraph (6) omit paragraph (b) and the word “or” before it, |
| |
(b) | in sub-paragraph (8) omit “section 113 of this Act or”, |
| |
(c) | in sub-paragraph (11) omit “or vocation”, and |
| |
(d) | after sub-paragraph (12) insert— |
| |
“(13) | This paragraph does not apply for the purposes of income |
| 30 |
| |
(3) | Omit paragraphs 18 and 18A. |
| |
| |
| |
| 35 |
353 | The Finance Act 1950 is amended as follows. |
| |
354 | In section 40(3) (modification of section 39 in case of recoveries by assignees |
| |
and in certain cases of subsidiary companies)— |
| |
(a) | omit “by the Special Commissioners under Case VI of Schedule D”, |
| |
| 40 |
(b) | omit “under that Case”. |
| |
|
| |
|
| |
|
Chevening Estate Act 1959 (c.49) |
| |
355 | The Chevening Estate Act 1959 is amended as follows. |
| |
356 (1) | Amend section 2 (provisions as to income tax, estate duty and stamp duty) |
| |
| |
| 5 |
| |
(b) | in paragraph (b) for “Schedule D” substitute “Part 3 of the Income |
| |
Tax (Trading and Other Income) Act 2005”, and |
| |
(c) | in paragraph (c) for the words from “Schedule C” to “annual |
| |
payment” substitute “the provisions of the Income Tax (Trading and |
| 10 |
Other Income) Act 2005 specified in subsection (1A) in respect of the |
| |
income chargeable under those provisions”. |
| |
(3) | After subsection (1) insert— |
| |
“(1A) | The provisions are— |
| |
(a) | Chapter 2 of Part 4 (interest) so far as the income is yearly |
| 15 |
interest or public revenue dividends (as defined in section |
| |
505(1A) of the Income and Corporation Taxes Act 1988), |
| |
(b) | Chapter 7 of that Part (purchased life annuity payments), |
| |
(c) | Chapter 10 of that Part (distributions from unauthorised unit |
| |
| 20 |
(d) | Chapter 13 of that Part (sales of foreign dividend coupons) so |
| |
far as the income arises from foreign holdings within section |
| |
571(1)(a) (meaning of “foreign holdings” in that Chapter), |
| |
(e) | Chapter 2 of Part 5, so far as it relates to annual payments |
| |
(receipts from intellectual property), |
| 25 |
(f) | Chapter 4 of that Part, so far as it relates to annual payments |
| |
(certain telecommunication rights: non-trading income), and |
| |
(g) | Chapter 7 of that Part (annual payments not otherwise |
| |
| |
Taxes Management Act 1970 (c.9) |
| 30 |
357 | The Taxes Management Act 1970 is amended as follows. |
| |
358 (1) | Amend section 7 (notice of liability to income tax and capital gains tax) as |
| |
| |
| |
(a) | in paragraph (c) for “Schedule F” substitute “Chapter 3 of Part 4 of |
| 35 |
ITTOIA 2005 (dividends etc. from UK resident companies etc.)”, and |
| |
(b) | for “Schedule F”, in the second place where it occurs, substitute |
| |
| |
(3) | In subsection (9) in each of paragraphs (a) and (aa) for “Chapter II of Part XIII |
| |
of the principal Act” substitute “Chapter 9 of Part 4 of ITTOIA 2005”. |
| 40 |
359 | In section 8(1AA)(b) (personal returns) for “section 231 of the principal Act” |
| |
substitute “section 397(1) of ITTOIA 2005”. |
| |
360 | In section 8A(1AA)(b) (trustee’s returns) for “section 231 of the principal |
| |
Act” substitute “section 397(1) of ITTOIA 2005”. |
| |
|
| |
|
| |
|
361 | In section 9(1) (returns to include self-assessment)— |
| |
(a) | in paragraph (b) for “section 231 of the principal Act” substitute |
| |
“section 397(1) of ITTOIA 2005”, |
| |
(b) | omit “233(1),” and “, 249(4), 421(1) or 547(5)”, and |
| |
(c) | for “or section 626 of ITEPA 2003” substitute “, section 626 of ITEPA |
| 5 |
| |
| |
362 | Omit section 9D (choice between different Cases of Schedule D). |
| |
363 | In section 12AA(1A)(b) (partnership returns) for “section 231 of the principal |
| |
Act” substitute “section 397(1) of ITTOIA 2005”. |
| 10 |
364 | In section 12AB(5) (partnership return to include partnership statement) in |
| |
the definition of “tax credit” after “applies” insert “in the case of corporation |
| |
tax and section 397(1) of ITTOIA 2005 applies in the case of income tax”. |
| |
365 | In section 12AE(2) (choice between different Cases of Schedule D) omit |
| |
| 15 |
366 (1) | Amend section 18 (interest paid without deduction of income tax) as |
| |
| |
(2) | In subsection (3E)(b) for “relevant” substitute “deeply”. |
| |
(3) | For subsection (3F) substitute— |
| |
“(3F) | In subsection (3E)(b) above “deeply discounted security” has the |
| 20 |
same meaning as in Chapter 8 of Part 4 of ITTOIA 2005 (profits from |
| |
deeply discounted securities) (see section 430 of that Act).” |
| |
367 (1) | Amend section 19 (information for purposes of Schedule A) as follows. |
| |
(2) | In subsection (1) after “profits or gains chargeable to tax” insert “under |
| |
Chapter 3 of Part 3 of ITTOIA 2005 as the profits of a UK property business |
| 25 |
| |
(3) | In the side-note after “for purposes of” insert “charge on profits of UK |
| |
property businesses or under”. |
| |
368 | In section 27(2) (settled property) for “section 660G(1) and (2) of the principal |
| |
Act” substitute “section 620 of ITTOIA 2005”. |
| 30 |
369 | In section 30 (recovery of overpayment of tax, etc.) omit subsection (4). |
| |
370 | In section 30A(2) (assessing procedure) for “Schedule” substitute “Part or |
| |
Chapter of ITEPA 2003 or ITTOIA 2005”. |
| |
371 | In section 31(3) (appeals: right of appeal) omit “9D or”. |
| |
372 | In section 42(7) (procedure for making claims etc.) omit the “and” before |
| 35 |
paragraph (d) and after that paragraph insert “and |
| |
| |
| |
373 (1) | Amend section 46B (questions to be determined by Special Commissioners) |
| |
| 40 |
| |
(a) | omit “of the principal Act”, |
| |
|
| |
|
| |
|
(b) | in paragraph (a) for “Chapter 1A or 1B of Part XV” substitute |
| |
“Chapter 5 of Part 5 of ITTOIA 2005”, |
| |
| |
(d) | in paragraph (c) after “743(1)” insert “of the principal Act”, and |
| |
(e) | in paragraph (d) after “747(4)(a)” insert “of that Act”. |
| 5 |
(3) | After subsection (4) insert— |
| |
“(4A) | Any question as to the application of— |
| |
(a) | Part XVI of the principal Act (administration of estates: |
| |
| |
(b) | Chapter 6 of Part 5 of ITTOIA 2005 (administration of estates: |
| 10 |
| |
| is a question to be determined by the Special Commissioners.” |
| |
(4) | In subsection (5) after paragraph (c) insert “or |
| |
(d) | section 874 of ITTOIA 2005,”. |
| |
374 | In section 46C (jurisdiction of Special Commissioners over certain claims |
| 15 |
included in returns) omit subsection (3)(a). |
| |
375 | In section 58(3)(b) (proceedings in tax cases in Northern Ireland) before |
| |
“section 11 of or paragraph 22” insert “section 186 of ITTOIA 2005,”. |
| |
376 | In section 59A(8)(b) (payments on account of income tax) for “section 231 of |
| |
the principal Act” substitute “section 397(1) of ITTOIA 2005”. |
| 20 |
377 (1) | Amend section 59B (payment of income tax and capital gains tax) as follows. |
| |
| |
(a) | omit “233(1),” and “, 249(4), 421(1) or 547(5)”, and |
| |
(b) | for “or section 626 of ITEPA 2003” substitute “, section 626 of ITEPA |
| |
| 25 |
| |
(3) | In subsection (2)(b) (payment of income tax and capital gains tax) for |
| |
“section 231 of that Act” substitute “section 397(1) of ITTOIA 2005”. |
| |
378 | In section 90(1)(b) (disallowance of relief for interest on tax) for “any tax |
| |
purposes” substitute “any corporation tax purpose (but see also sections 54 |
| 30 |
and 869 of ITTOIA 2005 for corresponding rule for income tax purposes)”. |
| |
379 (1) | Amend section 98 (special returns, etc) as follows. |
| |
(2) | In subsection (4DA)(c) for “section 98 of the Finance Act 2004” substitute |
| |
“section 758 of ITTOIA 2005”. |
| |
(3) | In the first column of the Table— |
| 35 |
(a) | omit the entry relating to regulations under section 326C of ICTA, |
| |
(b) | omit the entry relating to section 660F of ICTA, and |
| |
| |
“Section 75(5) of ITTOIA 2005. |
| |
Section 128 of ITTOIA 2005 |
| 40 |
Section 305 of ITTOIA 2005. |
| |
Section 647 of ITTOIA 2005. |
| |
Regulations under Chapter 3 of Part 6 of ITTOIA 2005.” |
| |
|
| |
|
| |
|
(4) | In the second column of the Table— |
| |
(a) | omit the entry relating to regulations under section 326C of ICTA, |
| |
| |
| |
“Section 75(4) of ITTOIA 2005. |
| 5 |
Regulations under Chapter 3 of Part 6 of ITTOIA 2005.” |
| |
380 | In section 118(1) (interpretation) after the definition of “ITEPA 2003” insert— |
| |
““ITTOIA 2005” means the Income Tax (Trading and Other |
| |
| |
381 | In Schedule 1A (claims etc. not included in returns), in paragraph 10(b), for |
| 10 |
“(administration of estates)” substitute “(administration of estates: |
| |
corporation tax), or Chapter 6 of Part 5 of ITTOIA 2005 (administration of |
| |
| |
382 (1) | Amend Schedule 1B (claims for relief involving two or more years) as |
| |
| 15 |
| |
(a) | in sub-paragraph (2) for the words from “are any of the following” to |
| |
“and the same” substitute “is a claim to which this Schedule applies |
| |
| |
(b) | in sub-paragraph (3) for “includes—” to the end substitute “includes |
| 20 |
a reference to amendments and revocations to which paragraph 4 |
| |
| |
| |
(a) | for “a trade of farming or market gardening claims that subsection |
| |
(2) or (3) of section 96 of the principal Act” substitute “a qualifying |
| 25 |
trade, profession or vocation (within the meaning of Chapter 16 of |
| |
Part 2 of ITTOIA 2005) claims that Chapter 16 of Part 2 of ITTOIA |
| |
| |
(b) | after “that trade” insert “, profession or vocation”. |
| |
| 30 |
(a) | in paragraph (a) for “claims that subsection (2) or (3) of section 96 of |
| |
the principal Act” substitute “claims that Chapter 16 of Part 2 of |
| |
| |
(b) | in paragraph (b) for “subsection (9) of that section” substitute |
| |
“section 224(4) of that Act”. |
| 35 |
(5) | In the italic cross-heading before paragraph 4 for “section 96(9)” substitute |
| |
“section 224(4) of ITTOIA 2005”. |
| |
| |
(a) | in sub-paragraph (1)— |
| |
(i) | for “section 108 of the principal Act” substitute “section 257 |
| 40 |
| |
(ii) | for the words from “the date” to “change of basis took place” |
| |
substitute “the date of the cessation”, and |
| |
(b) | in sub-paragraph (5) for “section 105 of the principal Act” substitute |
| |
“section 254 of ITTOIA 2005”. |
| 45 |
|
| |
|
| |
|
383 | In paragraph 10 of Schedule 3 (rules for assigning proceedings to General |
| |
Commissioners) after “of the principal Act” insert “, section 186 of ITTOIA |
| |
| |
384 | In paragraph 2(4) of Schedule 3A (electronic lodgement of tax returns, etc.) |
| |
after “ITEPA 2003” insert “or ITTOIA 2005”. |
| 5 |
| |
385 | The Finance Act 1971 is amended as follows. |
| |
386 | In paragraph 8(2)(b) of Schedule 3 (taxation of refunds of contributions and |
| |
certain other payments) for “to tax on the amount of the payment under |
| |
Case VI of Schedule D” substitute “— |
| 10 |
(i) | to income tax on the full amount of the payment |
| |
arising in the year of assessment; or |
| |
(ii) | to corporation tax on the amount of the payment |
| |
under Case VI of Schedule D”. |
| |
| 15 |
387 | The Finance Act 1973 is amended as follows. |
| |
388 | In Schedule 15 (territorial extension of charge to tax: supplementary |
| |
provisions), in paragraphs 2(a) and 4(1), for “or section 830 of the Taxes Act |
| |
1988” substitute “, section 830 of the Taxes Act 1988 or section 874 of the |
| |
Income Tax (Trading and Other Income) Act 2005”. |
| 20 |
Biological Standards Act 1975 (c. 4) |
| |
389 | The Biological Standards Act 1975 is amended as follows. |
| |
390 (1) | Amend section 2 (exemption of the National Biological Standards Board |
| |
from income tax and corporation tax) as follows. |
| |
| 25 |
(a) | for paragraph (a) substitute— |
| |
“(a) | under Chapter 3 of Part 3 of the Income Tax (Trading |
| |
and Other Income) Act 2005 (“ITTOIA 2005”) in |
| |
respect of the profits of a UK property business or |
| |
| 30 |
(b) | in paragraph (b) at the beginning insert “under the provisions of |
| |
ITTOIA 2005 specified in subsection (4A) in respect of the income |
| |
charged under those provisions received by the Board or”, and |
| |
(c) | in paragraph (c) for “under Schedule F” substitute “under Chapter 3 |
| |
of Part 4 of ITTOIA 2005 (dividends etc. from UK resident companies |
| 35 |
| |
(3) | After that subsection insert— |
| |
“(4A) | The provisions are— |
| |
(a) | Chapter 2 of Part 4 (interest) so far as the income is yearly |
| |
interest or public revenue dividends (as defined in section |
| 40 |
505(1A) of the Income and Corporation Taxes Act 1988), |
| |
(b) | Chapter 7 of that Part (purchased life annuity payments), |
| |
|
| |
|