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Income Tax (Trading and Other Income) Bill


Income Tax (Trading and Other Income) Bill
Schedule 2 — Transitionals and savings etc.
Part 12 — Other provisions

569

 

Part 12

Other provisions

Unpaid remuneration: non-trades and non-property businesses

154   (1)  

This paragraph applies for the purposes of section 865.

      (2)  

In relation to a period of account ending before 27th November 2002, an

5

amount charged in the accounts in respect of employees’ remuneration

includes an amount which is held by an intermediary with a view to its

becoming employees’ remuneration.

      (3)  

In relation to a period of account ending on or after 27th November 2002, an

amount charged in the accounts in respect of employees’ remuneration

10

includes an amount—

(a)   

in respect of employee benefit contributions (within the meaning of

sections 38 to 44) made before that date, and

(b)   

which is held by an intermediary,

           

with a view to its becoming employees’ remuneration.

15

Employee benefit contributions: non-trades and non-property businesses

155        

Section 866 does not apply to deductions that would otherwise be allowed—

(a)   

for a period ending before 27th November 2002, or

(b)   

in respect of employee benefit contributions made before that date.

156   (1)  

Subject to sub-paragraph (3), section 866 applies before 6th April 2006 with

20

the following amendment.

      (2)  

In subsection (5)—

(a)   

for paragraphs (b) and (c) and the word “or” at the end of paragraph

(c) substitute—

“(b)   

contributions under a retirement benefits scheme

25

within the meaning of Chapter 1 of Part 14 of ICTA

(see section 611 of that Act),

(c)   

contributions under a personal pension scheme

approved under Chapter 4 of that Part (see section

630 of that Act), or”, and

30

(b)   

omit “For the purposes of paragraph (c)” to the end.

      (3)  

The power of the Treasury to make an order under section 281 or 283 of FA

2004 has effect as if Schedule 35 to that Act contained an amendment

substituting section 866(5) of this Act for that subsection as amended by sub-

paragraph (2) above.

35

Crime-related payments: non-trades and non-property businesses

157        

Section 870(2)(b) does not apply to expenditure which was incurred before

1st April 2002.

Apportionment of miscellaneous profits or losses to tax years before tax year 2005-06

158   (1)  

This paragraph applies if—

40

 

 

Income Tax (Trading and Other Income) Bill
Schedule 2 — Transitionals and savings etc.
Part 12 — Other provisions

570

 

(a)   

a relevant period of account begins before 6th April 2005 and ends on

or after that date, and

(b)   

in order to arrive at the profits or losses of a tax year before the tax

year 2005-06 it is necessary to apportion the profits or losses of the

relevant period of account to any part of that period falling in a tax

5

year before the tax year 2005-06.

      (2)  

A period of account is a “relevant period of account” if—

(a)   

section 871 applies to the period of account, and

(b)   

the profits or losses of the part of the period of account falling in the

tax year 2005-06 are calculated in accordance with this Act.

10

      (3)  

The profits or losses of the relevant period of account—

(a)   

are calculated in accordance with this Act (and therefore, to that

extent, this Act has effect for tax years before the tax year 2005-06),

and

(b)   

may be apportioned in accordance with section 871 to any part of the

15

period of account falling in a tax year before the tax year 2005-06.

General deduction rules

159        

Neither—

(a)   

the inclusion of rules in section 582 for calculating income chargeable

to tax under section 579, nor

20

(b)   

the inclusion of rules in sections 612 and 617(3) to (6) for calculating

income chargeable to tax under Chapter 3 or 4 of Part 5,

           

prevents the continued operation of similar rules of law in relation to the

calculation of other income (including profits) chargeable to tax under other

provisions of this Act.

25

Section 820 of ICTA

160        

Section 820 of ICTA (application of Income Tax Acts from year to year)

applies to this Act as if this Act were in force on the day before 6th April

2005.

Amendments of Part 4 of FA 2004 (pension schemes etc.)

30

161        

The amendments made by paragraphs 644 to 651 and 655 of Schedule 1 come

into force at the same time as the enactments which they amend.

 

 

Income Tax (Trading and Other Income) Bill
Schedule 3 — Repeals and revocations

571

 

Schedule 3

Section 884

 

Repeals and revocations

 

Reference

Extent of repeal or revocation

 
 

Finance Act 1950 (c.15)

In section 40(3), the words “by the Special

 
  

Commissioners under Case VI of Schedule D”

 

5

  

and “under that Case”.

 
 

Chevening Estate Act 1959

Section 2(1)(a).

 
 

(c.49)

  
 

Taxes Management Act 1970

In section 9(1), the words “233(1),” and “, 249(4),

 
 

(c. 9)

421(1) or 547(5)”.

 

10

  

Section 9D.

 
  

Section 12AE(2)(a).

 
  

Section 30(4).

 
  

In section 31(3), the words “9D or”.

 
  

In section 42(7) the word “and” before

 

15

  

paragraph (d).

 
  

In section 46B(4)—

 
  

(a)   

the words “of the principal Act”, and

 
  

(b)   

paragraph (b).

 
  

Section 46C(3)(a).

 

20

  

In section 59B(1), the words “233(1),” and “,

 
  

249(4), 421(1) or 547(5)”.

 
  

In the Table in section 98, in each column—

 
  

(a)   

the entry relating to regulations under

 
  

section 326C of ICTA, and

 

25

  

(b)   

the entry relating to section 660F of

 
  

ICTA.

 
 

Oil Taxation Act 1975 (c. 22)

In section 3(2), in the first sentence, the words

 
  

“less the amount of the rebate recoverable

 
  

(within the meaning of that subsection)”.

 

30

 

Chevening Estate Act 1987

Section 4(a).

 
 

(c.20)

  
 

Income and Corporation Taxes

In section 1(1), paragraph (a) and the word

 
 

Act 1988 (c. 1)

“and” at the end of paragraph (b).

 
  

In section 1A—

 

35

  

(a)   

in subsection (2)(aa), the words “under

 
  

Case VI of Schedule D”,

 
  

(b)   

in subsection (4), paragraph (b) and the

 
  

word “or” at the end of paragraph (a),

 
  

and

 

40

  

(c)   

subsection (7).

 
  

Section 4(1B).

 
  

In section 9—

 
  

(a)   

in subsection (3)(a), the words “, as they

 
  

apply for purposes of income tax”, and

 

45

  

(b)   

in subsection (6), the words “60 to 69,”

 
  

Section 18(6).

 
  

Sections 20 and 21.

 
 

 

Income Tax (Trading and Other Income) Bill
Schedule 3 — Repeals and revocations

572

 
 

Reference

Extent of repeal or revocation

 
 

Income and Corporation Taxes

In section 21A—

 
 

Act 1988 (c. 1)—cont.

(a)   

in subsection (2), the words “sections 112

 
  

and 113 of that Act (expenditure in

 
  

connection with provision of security

 

5

  

asset or service);”, and

 
  

(b)   

in subsection (4), the words “section 82

 
  

(interest paid to non-residents),” and the

 
  

words “section 96 (farming and market

 
  

gardening: relief for fluctuating

 

10

  

profits),”.

 
  

In section 21B, the words “, 108, 109A” and the

 
  

words “section 113 (effect for income tax

 
  

purposes of change in the persons engaged

 
  

on trade);”.

 

15

  

Sections 31A and 31B.

 
  

In section 37(1), the word “or” at the end of

 
  

paragraph (a).

 
  

In section 43C(3), the word “or” at the end of

 
  

paragraph (a).

 

20

  

In section 59—

 
  

(a)   

subsections (1) and (2), and

 
  

(b)   

in subsection (3), the words “under

 
  

Schedule D”.

 
  

Sections 60 to 65A.

 

25

  

Sections 68 to 69.

 
  

Section 71.

 
  

In section 72(1), the words “income tax or” and

 
  

“year of assessment,”. 

 
  

Section 74(1)(b) and (o).

 

30

  

Section 77.

 
  

Sections 80 to 82.

 
  

Section 84(3B)

 
  

In section 87(1), the word “or” at the end of

 
  

paragraph (a).

 

35

  

In section 90(3), the words “113(1) or”.

 
  

In section 91A(2), the words “income tax or”.

 
  

In section 91B(2), the words “income tax or”.

 
  

Section 95(1A)(a).

 
  

Sections 95A and 96.

 

40

  

In section 100(2), the words “or vocation” in

 
  

both places where they occur.

 
  

In section 101—

 
  

(a)   

in subsection (1), the words “or

 
  

vocation”, wherever they occur,

 

45

  

(b)   

in subsection (2) the words “or

 
  

vocation”,

 
  

(c)   

in subsection (2A), paragraph (a) and, in

 
  

paragraph (b), the words “in the case of

 
  

an election for the purposes of

 

50

  

corporation tax,” and “or vocation”, and

 
  

(d)   

in subsection (3) omit the words “or

 
  

vocation”, wherever they occur.

 
 

 

Income Tax (Trading and Other Income) Bill
Schedule 3 — Repeals and revocations

573

 
 

Reference

Extent of repeal or revocation

 
 

Income and Corporation Taxes

In section 102—

 
 

Act 1988 (c. 1)—cont.

(a)   

in subsection (1), the words “or

 
  

vocations”, and

 
  

(b)   

in subsection (2), the words “113 or” and

 

5

  

the words from “but those sections” to

 
  

the end.

 
  

In section 103—

 
  

(a)   

in subsection (1), the words “under Case

 
  

I or II of Schedule D”, and

 

10

  

(b)   

in subsection (3), paragraphs (b) and

 
  

(bb) and the words from “Paragraph (b)

 
  

above shall” to the end.

 
  

In section 104—

 
  

(a)   

in subsection (1), the words “under Case

 

15

  

I or II of Schedule D”, and

 
  

(b)   

in subsection (3), the words “and (b)”.

 
  

Sections 107 to 109.

 
  

In section 109A—

 
  

(a)   

subsection (3),

 

20

  

(b)   

in subsection (4), the unnumbered

 
  

paragraph beginning with “If any sum”,

 
  

and

 
  

(c)   

in subsection (4A), the unnumbered

 
  

paragraph beginning with “If any

 

25

  

sum”.

 
  

Section 110A and the italic cross-heading before

 
  

it.

 
  

In section 111, subsections (2) to (13).

 
  

Sections 112 and 113.

 

30

  

Section 121(1).

 
  

In section 122—

 
  

(a)   

in subsection (1), the words “for the

 
  

purposes of income tax, or as the case

 
  

may be” and the words “year or” in both

 

35

  

places where they occur,

 
  

(b)   

in subsection (2)(a), the words from

 
  

“brought into account” to “may be,”,

 
  

and

 
  

(c)   

subsection (4).

 

40

  

Sections 127 and 127A.

 
  

Section 128(1).

 
  

In section 214(1)(a), the words “chargeable to

 
  

tax under Case VI of Schedule D”.

 
  

In section 231, in subsection (1) the words “or a

 

45

  

person resident in the United Kingdom, not

 
  

being a company”, and subsections (3) and

 
  

(3AA).

 
  

In section 231AA(1A), the second sentence.

 
  

In section 231AB(1A), the second sentence.

 

50

  

Sections 232 and 233.

 
  

In section 249, subsections (4) to (7) and in

 
  

subsection (8) the words from “and

 
  

subsections (5)” onwards.

 
 

 

Income Tax (Trading and Other Income) Bill
Schedule 3 — Repeals and revocations

574

 
 

Reference

Extent of repeal or revocation

 
 

Income and Corporation Taxes

Section 251(2) to (6).

 
 

Act 1988 (c. 1)—cont.

Sections 251A to 251D.

 
  

In section 273, the words “, 617(3)”.

 
  

Section 314.

 

5

  

Section 322.

 
  

Sections 324 to 327A.

 
  

Sections 329 to 329AB.

 
  

Section 331.

 
  

Section 331A.

 

10

  

Section 332(3).

 
  

In section 332A, the words “and distributions by

 
  

such trusts”.

 
  

Section 333A.

 
  

In section 333B(9), the definition of “section 333

 

15

  

business”.

 
  

Section 347A(4) and (5).

 
  

In section 349(4)—

 
  

(a)   

in the definition of “qualifying certificate

 
  

of deposit” the words “as defined in

 

20

  

section 56(5)”, and

 
  

(b)   

in paragraph (b) of the definition of

 
  

“qualifying deposit right” the words “as

 
  

defined in section 56(5)”.

 
  

Section 349B(5).

 

25

  

Section 368(4).

 
  

In section 382(3), the words “under the

 
  

provisions of the Income Tax Acts applicable

 
  

to Case I or II of Schedule D”.

 
  

In section 385(4)—

 

30

  

(a)   

the words “under Case I of Schedule D”,

 
  

(b)   

the words “under that Case” in both

 
  

places where they occur.

 
  

In section 386(1), the words “under Schedule D”.

 
  

In section 388—

 

35

  

(a)   

in subsection (1), the words “under

 
  

Schedule D”,

 
  

(b)   

in subsection (4), the words “under

 
  

Schedule D”, and

 
  

(c)   

in that subsection, the words “under

 

40

  

Case I of Schedule D” in both places

 
  

where they occur.

 
  

In section 399—

 
  

(a)   

subsections (1) and (1A), and

 
  

(b)   

in subsection (5), the words from “and

 

45

  

the reference” to the end.

 
  

In section 421, in subsection (1), paragraphs (c)

 
  

and (d) and subsections (2) and (3).

 
  

Section 434(1A).

 
  

In section 437(1C), the word “and” at the end of

 

50

  

paragraph (b).

 
  

In section 477A, subsections (5) and (6) and in

 
  

subsection (9) the words from “but” to the

 
  

end of the subsection.

 
  

Section 480C.

 

55

 

 

Income Tax (Trading and Other Income) Bill
Schedule 3 — Repeals and revocations

575

 
 

Reference

Extent of repeal or revocation

 
 

Income and Corporation Taxes

In section 481, in subsection (5A)(c) the words

 
 

Act 1988 (c. 1)—cont.

“or 480C” and in subsection (6) the word “,

 
  

480C”.

 
  

Section 486(5).

 

5

  

In section 491—

 
  

(a)   

in subsection (4), the words “113 or”,

 
  

(b)   

subsection (5), and

 
  

(c)   

in subsection (10), the words “or

 
  

vocation”.

 

10

  

In section 503—

 
  

(a)   

in subsection (1), the words “in the

 
  

United Kingdom”, and

 
  

(b)   

subsections (2) and (3).

 
  

In section 504—

 

15

  

(a)   

subsection (4),

 
  

(b)   

in subsection (6), the words “year of

 
  

assessment or” and the words “year or”

 
  

wherever they occur,

 
  

(c)   

in subsection (7), the words “year of

 

20

  

assessment or” and the words “year or”

 
  

in both places where they occur, and

 
  

(d)   

in subsection (8), the words “year of

 
  

assessment or”.

 
  

In section 505(1)(c)(iia) the words “IV or”.

 

25

  

Section 514.

 
  

In section 524—

 
  

(a)   

in subsection (2A), paragraph (a),

 
  

(b)   

in that subsection, in paragraph (b), the

 
  

words “in the case of an election for the

 

30

  

purposes of corporation tax”,

 
  

(c)   

subsection (4), and

 
  

(d)   

in subsection (6), the words “subsection

 
  

(4) shall not apply, but”.

 
  

In section 525—

 

35

  

(a)   

subsection (2), and

 
  

(b)   

in subsection (4), the words “(or, if he is

 
  

dead, his personal representatives)” and

 
  

paragraph (b) and the word “and”

 
  

immediately preceding it

 

40

  

Section 526(2).

 
  

In section 528—

 
  

(a)   

subsection (2),

 
  

(b)   

in subsection (3), the words “as that

 
  

provision applies for the purposes of

 

45

  

corporation tax”, and

 
  

(c)   

in subsection (3A), the words “a person’s

 
  

or” and “479 or”.

 
  

Section 529.

 
  

Section 531(6).

 

50

  

Section 539(8).

 
 

 

 
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