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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

 
 

 
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Revised 4 February 2005