Income Tax (Trading and Other Income) Bill

House of Commons

Session 2004 - 05
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Other Bills before Parliament

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).