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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 (Volume I) viii
147    Expenditure and receipts treated as revenue in nature
148    Credits or debits arising from revaluation
Chapter 11
Trade profits: other specific trades
Dealers in securities etc.
149    Taxation of amounts taken to reserves
150    Conversion etc. of securities held as circulating capital
151    Exchanges of gilts for gilt strips
152    Consolidation of gilt strips
153    Meaning of “gilt-edged security” and “strip”
154    Regulations for determining market value of securities or strips
Persons authorised for purposes of FISMA 2000
155    Levies and repayments under FISMA 2000
Dealers in land etc.
156    Purchase or sale of woodlands
157    Relief in respect of mineral royalties
158    Lease premiums etc: reduction of receipts
Ministers of religion
159    Ministers of religion
Barristers and advocates
160    Alternative basis of calculation in early years of practice
Mineral exploration and access
161    Mineral exploration and access
Persons liable to pool betting duty
162    Payments by persons liable to pool betting duty
Intermediaries treated as making employment payments
163    Deduction for deemed employment payment
164    Special rules for partnerships
Waste disposal
165    Deduction for site preparation expenditure
166    Allocation of site preparation expenditure
167    Site preparation expenditure: supplementary
168    Site restoration payments
Income Tax (Trading and Other Income) Bill (Volume I) ix
Cemeteries and crematoria
169    Cemeteries and crematoria: introduction
170    Deduction for capital expenditure
171    Allocation of ancillary capital expenditure
172    Exclusion of expenditure met by subsidies
Chapter 12
Trade profits: valuation of stock and work in progress
Valuation of trading stock
173    Valuation of trading stock on cessation
174    Meaning of “trading stock”
175    Basis of valuation of trading stock
176    Sale basis of valuation: sale to unconnected person
177    Sale basis of valuation: sale to connected person
178    Sale basis of valuation: election by connected persons
179    Connected persons
180    Cost to buyer of stock valued on sale basis of valuation
181    Meaning of “sale” and related expressions
Valuation of work in progress
182    Valuation of work in progress on cessation
183    Meaning of “work in progress”
184    Basis of valuation of work in progress
185    Election for valuation at cost
Supplementary
186    Determination of questions by Commissioners
Chapter 13
Deductions from profits: unremittable amounts
187    Professions and vocations
188    Application of Chapter
189    Relief for unremittable amounts
190    Restrictions on relief
191    Withdrawal of relief
Chapter 14
Disposal and acquisition of know-how
192    Meaning of “know-how” etc.
193    Disposal of know-how if trade continues to be carried on
194    Disposal of know-how as part of disposal of all or part of a trade
195    Seller controlled by buyer etc.
Income Tax (Trading and Other Income) Bill (Volume I) x
Chapter 15
Basis periods
Introduction
196    Professions and vocations
Accounting date
197    Meaning of “accounting date”
The normal rules
198    General rule
199    First tax year
200    Second tax year
201    Tax year in which there is no accounting date
202    Final tax year
Apportionment of profits
203    Apportionment etc. of profits to basis periods
Overlap profits and losses
204    Meaning of “overlap period” and “overlap profit”
205    Deduction for overlap profit in final tax year
206    Restriction on bringing losses into account twice
207    Treatment of business start-up payments received in an overlap period
Rules where first accounting date shortly before end of tax year
208    When the late accounting date rules apply
209    Rule if there is an accounting date
210    Rules if there is no accounting date
Slight variations in accounting date
211    Treating middle date as accounting date
212    Consequence of treating middle date as accounting date
213    Circumstances in which middle date not treated as accounting date
Special rules if accounting date changes
214    When a change of accounting date occurs
215    Change of accounting date in third tax year
216    Change of accounting date in later tax year
217    Conditions for basis period to end with new accounting date
218    Commercial reasons for change of accounting date
219    The year after an ineffective change of accounting date
220    Deduction for overlap profit on change of accounting date
Income Tax (Trading and Other Income) Bill (Volume I) xi
Chapter 16
Averaging profits of farmers and creative artists
221    Claim for averaging of fluctuating profits
222    Circumstances in which claim may be made
223    Adjustment of profits
224    Effect of adjustment
225    Effect of later adjustment of profits
Chapter 17
Adjustment income
Introduction
226    Professions and vocations
Adjustment on change of basis
227    Application of Chapter
228    Adjustment income and adjustment expense
229    Income charged
230    Person liable
231    Calculation of the adjustment
Treatment of adjustment income and adjustment expense
232    Treatment of adjustment income
233    Treatment of adjustment expense
Expenses previously brought into account
234    No adjustment for certain expenses previously brought into account
Realising or writing off assets
235    Cases where adjustment not required until assets realised or written off
Mark to market
236    Change from realisation basis to mark to market
237    Election for spreading if section 236 applies
Spreading of adjustment income: barristers and advocates
238    Spreading on ending of exemption for barristers and advocates
239    Election to accelerate charge under section 238
Supplementary
240    Liability of personal representatives if person liable dies
Income Tax (Trading and Other Income) Bill (Volume I) xii
Chapter 18
Post-cessation receipts
Introduction
241    Professions and vocations
Charge to tax on post-cessation receipts
242    Charge to tax on post-cessation receipts
243    Extent of charge to tax
244    Income charged
245    Person liable
Meaning of "post-cessation receipts"
246    Basic meaning of “post-cessation receipt”
247    Other rules about what counts as post-cessation receipts
Sums treated as post-cessation receipts
248    Debts paid after cessation
249    Debts released after cessation
250    Receipts relating to post-cessation expenditure
251    Transfer of rights if transferee does not carry on trade
Sums that are not post-cessation receipts
252    Transfer of trading stock or work in progress
253    Lump sums paid to personal representatives for copyright etc.
Deductions
254    Allowable deductions
255    Further rules about allowable deductions
Reliefs
256    Treatment of post-cessation receipts
257    Election to carry back
Chapter 19
Supplementary
258    Changes in trustees and personal representatives
259    Meaning of “statutory insolvency arrangement”
Income Tax (Trading and Other Income) Bill (Volume I) xiii
Part 3
Property income
Chapter 1
Introduction
260    Overview of Part 3
261    Provisions which must be given priority over Part 3
262    Priority between Chapters within Part 3
Chapter 2
Property businesses
Introduction
263    Introduction
Basic meaning of UK and overseas property business
264    UK property business
265    Overseas property business
Generating income from land
266    Meaning of “generating income from land”
267    Activities not for generating income from land
Chapter 3
Profits of property businesses: basic rules
Charge to tax on profits of a property business
268    Charge to tax on profits of a property business
269    Territorial scope of charge to tax
270    Income charged
271    Person liable
Calculation of profits
272    Profits of a property business: application of trading income rules
273    Amounts not brought into account as part of a property business
274    Relationship between rules prohibiting and allowing deductions
Apportionment of profits
275    Apportionment etc. of profits to tax year
Income Tax (Trading and Other Income) Bill (Volume I) xiv
Chapter 4
Profits of property businesses: lease premiums etc.
Introduction
276    Introduction
Amounts treated as receipts: leases
277    Lease premiums
278    Amount treated as lease premium where work required
279    Sums payable instead of rent
280    Sums payable for surrender of lease
281    Sums payable for variation or waiver of term of lease
282    Assignments for profit of lease granted at undervalue
283    Provisions supplementary to section 282
Other amounts treated as receipts
284    Sales with right to reconveyance
285    Sale and leaseback transactions
286    Provisions supplementary to sections 284 and 285
Additional calculation rule for reducing certain receipts
287    Circumstances in which additional calculation rule applies
288    The additional calculation rule
289    The additional calculation rule: special cases
290    Meaning of “unused amount” and “unreduced amount”
Deductions in relation to certain receipts
291    Deductions for expenses under section 292
292    Tenants under taxed leases treated as incurring expenses
293    Restrictions on section 292 expenses: the additional calculation rule
294    Restrictions on section 292 expenses: lease of part of premises
Limit on effect of additional calculation rule and deductions
295    Limit on reductions and deductions
Relationship with ICTA
296    Corporation tax receipts treated as taxed receipts
297    Taking account of reductions in corporation tax receipts
298    Taking account of deductions for rent as a result of section 37(4) or 87(2) of
ICTA
Certain administrative provisions
299    Payment of tax by instalments
300    Statement of accuracy for purposes of section 282
301    Claim for repayment of tax payable by virtue of section 284

© Parliamentary copyright 2005	Revised 4 February 2005