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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) xv
302    Claim for repayment of tax payable by virtue of section 285
Effective duration of lease
303    Rules for determining effective duration of lease
304    Applying the rules in section 303
305    Information about effective duration of lease
Other interpretative provisions
306    Provisions about premiums
307    Interpretation
Chapter 5
Profits of property businesses: other rules about receipts and deductions
Furnished accommodation: receipts and deductions
308    Furnished lettings
309    Rent-a-room relief
Treatment of receipts on acquisition of business
310    Acquisition of business: receipts from transferor’s UK property business
Reverse premiums as receipts
311    Reverse premiums
Deductions for expenditure on energy-saving items
312    Deduction for expenditure on energy-saving items
313    Restrictions on relief
314    Regulations
Deductions for expenditure on sea walls
315    Deduction for expenditure on sea walls
316    Transfer of interest in premises
317    Ending of lease of premises
318    Transfer involving company within the charge to corporation tax
Mineral royalties
319    Relief in respect of mineral royalties
Apportionments on sale of land
320    Nature of item apportioned on sale of estate or interest in land
Mutual business
321    Mutual business
Income Tax (Trading and Other Income) Bill (Volume I) xvi
Chapter 6
Commercial letting of furnished holiday accommodation
Introduction
322    Introduction
Definition
323    Meaning of “commercial letting of furnished holiday accommodation”
324    Meaning of “relevant period” in sections 325 and 326
325    Meaning of “qualifying holiday accommodation”
326    Under-used holiday accommodation: averaging elections
Separate profit calculations
327    Capital allowances and loss relief
328    Earned income and relevant UK earnings for pension purposes
Chapter 7
Adjustment income
Adjustment on change of basis
329    Application of Chapter
330    Adjustment income and adjustment expense
331    Income charged
332    Person liable
Treatment of adjustment income and adjustment expense
333    Treatment of adjustment income
334    Treatment of adjustment expense
Chapter 8
Rent receivable in connection with a UK section 12(4) concern
Charge to tax on rent receivable in connection with a UK section 12(4) concern
335    Charge to tax on rent receivable in connection with a UK section 12(4) concern
336    Meaning of “rent receivable in connection with a UK section 12(4) concern”
337    Income charged
338    Person liable
Management expenses of owner of mineral rights
339    Deduction for management expenses of owner of mineral rights
Mineral royalties
340    Relief in respect of mineral royalties
Income Tax (Trading and Other Income) Bill (Volume I) xvii
341    Meaning of “mineral lease or agreement” and “mineral royalties”
342    Extended meaning of “mineral royalties” etc. in Northern Ireland
343    Power of Board to determine what counts as “mineral royalties”
Chapter 9
Rent receivable for UK electric-line wayleaves
Charge to tax on rent receivable for UK electric-line wayleaves
344    Charge to tax on rent receivable for a UK electric-line wayleave
345    Meaning of “rent receivable for a UK electric-line wayleave”
346    Extent of charge to tax
347    Income charged
348    Person liable
Chapter 10
Post-cessation receipts
Charge to tax on post-cessation receipts
349    Charge to tax on post-cessation receipts
350    Extent of charge to tax
351    Income charged
352    Person liable
Meaning of "post-cessation receipts"
353    Basic meaning of “post-cessation receipt”
354    Other rules about what counts as a “post-cessation receipt”
355    Transfer of rights if transferee does not carry on UK property business
Supplementary
356    Application to Schedule A businesses
Chapter 11
Overseas property income
357    Charge to tax on overseas property income
358    Meaning of “overseas property income”
359    Income charged
360    Person liable
Chapter 12
Supplementary
361    Changes in trustees and personal representatives
362    Effect of company starting or ceasing to be within charge to income tax
363    Overseas property businesses and overseas land: adaptation of rules
364    Meaning of “lease” and “premises”
Income Tax (Trading and Other Income) Bill (Volume I) xviii
Part 4
Savings and investment income
Chapter 1
Introduction
365    Overview of Part 4
366    Provisions which must be given priority over Part 4
367    Priority between Chapters within Part 4
368    Territorial scope of Part 4 charges
Chapter 2
Interest
Charge to tax on interest
369    Charge to tax on interest
370    Income charged
371    Person liable
Other income taxed as interest
372    Building society dividends
373    Open-ended investment company interest distributions
374    Date when interest payments under section 373 made
375    Interpretation of sections 373 and 374
376    Authorised unit trust interest distributions
377    Date when interest payments under section 376 made
378    Interpretation of sections 376 and 377
379    Industrial and provident society payments
380    Funding bonds
381    Discounts
Chapter 3
Dividends etc. from UK resident companies etc.
Introduction
382    Contents of Chapter
Charge to tax on dividends and other distributions
383    Charge to tax on dividends and other distributions
384    Income charged
385    Person liable
Income Tax (Trading and Other Income) Bill (Volume I) xix
Amounts treated as dividends
386    Open-ended investment company dividend distributions
387    Date when dividends paid under section 386
388    Interpretation of sections 386 and 387
389    Authorised unit trust dividend distributions
390    Date when dividends paid under section 389
391    Interpretation of sections 389 and 390
Shares in approved share incentive plans ("SIPs")
392    SIP shares: introduction
393    Later charge where cash dividends retained in SIPs are paid over
394    Distribution when dividend shares cease to be subject to SIP
395    Reduction in tax due in cases within section 394
396    Interpretation of sections 392 to 395
Tax credits and payment and deduction of tax
397    Tax credits for qualifying distributions: UK residents and eligible non-UK
residents
398    Increase in amount or value of dividends where tax credit available
399    Qualifying distributions received by persons not entitled to tax credits
400    Non-qualifying distributions
401    Relief: qualifying distribution after linked non-qualifying distribution
Chapter 4
Dividends from non-UK resident companies
Charge to tax on dividends from non-UK resident companies
402    Charge to tax on dividends from non-UK resident companies
403    Income charged
404    Person liable
Shares in approved share incentive plans ("SIPs")
405    SIP shares: introduction
406    Later charge where cash dividends retained in SIPs are paid over
407    Dividend payment when dividend shares cease to be subject to SIP
408    Reduction in tax due in cases within section 407
Chapter 5
Stock dividends from UK resident companies
409    Charge to tax on stock dividend income
410    When stock dividend income arises
411    Income charged
412    Cash equivalent of share capital
413    Person liable
414    Income tax treated as paid
Income Tax (Trading and Other Income) Bill (Volume I) xx
Chapter 6
Release of loan to participator in close company
415    Charge to tax under Chapter 6
416    Income charged
417    Person liable
418    Relief where borrowers liable as settlors
419    Loans and advances to persons who die
420    Loans and advances to trustees of trusts that have ended
421    Income tax treated as paid
Chapter 7
Purchased life annuity payments
422    Charge to tax on purchased life annuity payments
423    Meaning of “purchased life annuity”
424    Income charged
425    Person liable
426    Annuity payments received after deduction of tax
Chapter 8
Profits from deeply discounted securities
Charge to tax under Chapter 8
427    Charge to tax on profits from deeply discounted securities
428    Income charged
429    Person liable
Deeply discounted securities
430    Meaning of “deeply discounted security”
431    Excluded occasions of redemption
432    Securities which are not deeply discounted securities
433    Meaning of “excluded indexed security”
434    Securities issued in separate tranches: preliminary
435    Securities issued in separate tranches: basic rule
436    Deeply discounted securities issued in separate tranches: nominal value rule
Disposals
437    Transactions which are disposals
438    Timing of transfers and acquisitions
Calculating profits
439    Calculating the profit from disposals
440    Market value disposals
441    Market value acquisitions
442    Securities issued in accordance with qualifying earn-out right
Income Tax (Trading and Other Income) Bill (Volume I) xxi
Special rules for strips of government securities
443    Application of this Chapter to strips of government securities
444    Meaning of “strip” in Chapter 8
445    Strips of government securities: acquisitions and disposals
446    Strips of government securities: relief for losses
447    Restriction of profits on strips by reference to original acquisition cost
448    Restriction of losses on strips by reference to original acquisition cost
449    Strips of government securities: manipulation of acquisition, transfer or
redemption payments
450    Market value of strips etc.
451    Market value of strips etc. quoted in foreign stock exchange lists
452    Power to modify this Chapter for strips
Special rules for listed securities held since 26th March 2003
453    Application of sections 454 to 456
454    Listed securities held since 26th March 2003: relief for losses
455    Listed securities held since 26th March 2003: calculating the profit or loss on
disposals
456    Securities issued to connected persons etc. at excessive price: subsequent
transfers to connected persons
Trustees
457    Trustees
458    Non-UK resident trustees
Miscellaneous and supplementary
459    Transfer of assets abroad
460    Minor definitions
Chapter 9
Gains from contracts for life insurance etc.
Charge to tax under Chapter 9
461    Charge to tax under Chapter 9
462    When gains arise from policies and contracts
463    Income charged
Person liable etc.
464    Person liable for tax: introduction
465    Person liable: individuals
466    Person liable: personal representatives
467    Person liable: UK resident trustees
468    Non-UK resident trustees and foreign institutions
469    Two or more persons interested in policy or contract
470    Interests in rights under a policy or contract for section 469
471    Determination of shares etc.
472    Trusts created by two or more persons

© Parliamentary copyright 2005	Revised 4 February 2005