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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) xxii
Policies and contracts to which Chapter 9 applies
473    Policies and contracts to which Chapter 9 applies: general
474    Special rules: qualifying policies
475    Special rules: personal portfolio bonds
476    Special rules: foreign policies
477    Special rules: certain older policies and contracts
478    Exclusion of mortgage repayment policies
479    Exclusion of pension policies
480    Exclusion of excepted group life policies
481    Excepted group life policies: conditions about benefits
482    Excepted group life policies: conditions about persons intended to benefit
483    Exclusion of credit union group life policies
When chargeable events occur: general
484    When chargeable events occur
485    Disregard of certain events in relation to qualifying policies
486    Exclusion of maturity of capital redemption policies in certain circumstances
487    Disregard of certain assignments
488    Disregard of some events after alterations of life insurance policy terms
489    Conditions applicable to alterations of life insurance policy terms
490    Last payment under guaranteed income bonds etc. treated as total surrender
Calculating gains: general
491    Calculating gains: general rules
492    The total benefit value of a policy or contract
493    The value of a policy or contract
494    The total allowable deductions for a policy or contract
495    Disregard of certain amounts in calculating gains under section 491
496    Modification of section 494: qualifying endowment policies held as security
for company debts
497    Disregard of trivial inducement benefits
Part surrenders and assignments: periodic calculations and excess events
498    Requirement for periodic calculations in part surrender or assignment cases
499    Meaning of “insurance year” and “final insurance year”
500    Events treated as part surrenders
501    Part surrenders: loans
502    Exception from section 501 for loans to buy life annuities
503    Exception from section 501 for certain loans under qualifying policies
504    Part surrenders: payments under guaranteed income bonds etc.
505    Assignments etc. involving co-ownership
506    Assignments occurring when there is a co-ownership transaction
507    Method for making periodic calculations under section 498
508    The value of rights partially surrendered or assigned
509    Chargeable events in certain cases where periodic calculations show gains
Transaction-related calculations and part surrender or assignment events
510    Requirement for transaction-related calculations in certain part surrender and
assignment cases
511    Method for making transaction-related calculations under section 510
Income Tax (Trading and Other Income) Bill (Volume I) xxiii
512    Available premium left for relevant transaction
513    Special rules for part surrenders and assignments in final insurance year
514    Chargeable events where transaction-related calculations show gains
Personal portfolio bonds
515    Requirement for annual calculations in relation to personal portfolio bonds
516    Meaning of “personal portfolio bond”
517    Policies and contracts which are not personal portfolio bonds
518    The index categories
519    The index selection conditions
520    The property categories
521    The property selection conditions
522    Method for making annual calculations under section 515
523    The total amount of personal portfolio bond excesses
524    The total amount of part surrender gains
525    Chargeable events where annual calculations show gains
526    Power to make regulations about personal portfolio bonds
Reductions from gains
527    Reduction for sums taken into account otherwise than under Chapter 9
528    Reduction in amount charged: non-UK resident policy holders
529    Exceptions to section 528
Income tax treated as paid and reliefs
530    Income tax treated as paid etc.
531    Exceptions to section 530
532    Relief for policies and contracts with European Economic Area insurers
533    Meaning of “comparable EEA tax charge”
534    Regulations providing for relief in other cases where foreign tax chargeable
535    Top slicing relief
536    Top slicing relieved liability: one chargeable event
537    Top slicing relieved liability: two or more chargeable events
538    Recovery of tax from trustees
Deficiencies
539    Relief for deficiencies
540    When deficiencies arise: events following calculation events
541    Calculation of deficiencies
Supplementary
542    Replacement of qualifying policies
543    Issue time of qualifying policy replacing foreign policy
544    Application of Chapter to policies and contracts in which companies
interested
545    Minor definitions
546    Table of provisions subject to special rules for older policies and contracts
Income Tax (Trading and Other Income) Bill (Volume I) xxiv
Chapter 10
Distributions from unauthorised unit trusts
547    Charge to tax under Chapter 10
548    Income charged
549    Person liable
550    Income tax treated as paid
Chapter 11
Transactions in deposits
551    Charge to tax on profits from disposal of deposit rights
552    Meaning of “deposit rights”
553    Income charged
554    Person liable
Chapter 12
Disposals of futures and options involving guaranteed returns
Charge to tax under Chapter 12
555    Charge to tax under Chapter 12
556    Income charged
557    Person liable
558    Meaning of “future”, “option” etc.
When disposals involve guaranteed returns
559    When disposals involve guaranteed returns
560    Production of guaranteed returns
561    The return from one or more disposals
When disposals of futures and options occur
562    When disposals of futures and options occur: general
563    Timing of certain grants of options where related disposals occur later
564    Deemed disposal where futures run to delivery or options are exercised
565    Interpretation of section 564
566    When transactions are related
Losses
567    Losses
Trustees
568    Special rule for certain income of trustees
Transfer of assets abroad
569    Anti-avoidance: transfer of assets abroad
Income Tax (Trading and Other Income) Bill (Volume I) xxv
Chapter 13
Sales of foreign dividend coupons
570    Charge to tax under Chapter 13
571    Meaning of “foreign holdings” etc.
572    Income charged
573    Person liable
Part 5
Miscellaneous income
Chapter 1
Introduction
574    Overview of Part 5
575    Provisions which must be given priority over Part 5
576    Priority between Chapters within Part 5
577    Territorial scope of Part 5 charges
Chapter 2
Receipts from intellectual property
Introduction
578    Contents of Chapter
Charge to tax on non-trading income from intellectual property
579    Charge to tax on royalties and other income from intellectual property
580    Income charged under section 579
581    Person liable for tax under section 579
582    Deductions in calculating certain income charged under section 579
Disposals of know-how
583    Charge to tax on income from disposals of know-how
584    Exceptions to charge under section 583
585    Income charged under section 583
586    Person liable for tax under section 583
Sales of patent rights
587    Charge to tax on income from sales of patent rights
588    Income charged under section 587
589    Person liable for tax under section 587
590    UK resident sellers: spreading rules
591    Non-UK resident sellers: election for spreading
592    Further provision about elections for spreading: instalments
593    Death of seller
594    Winding up of a body corporate
Income Tax (Trading and Other Income) Bill (Volume I) xxvi
595    Deduction of tax from payments to non-UK residents
596    Adjustments where tax has been deducted
597    Licences connected with patents
598    Rights to acquire future patent rights
599    Sums paid for Crown use etc. treated as paid under licence
Relief from income tax on patent income
600    Relief for expenses: patent income
601    How relief is given under section 600
Payments received after deduction of tax
602    Payments received after deduction of tax
Supplementary
603    Contributions to expenditure
604    Contributions not made by public bodies nor eligible for tax relief
605    Exchanges
606    Apportionment where property sold together
607    Questions about apportionments affecting two or more persons
608    Meaning of “capital sums” etc.
Chapter 3
Films and sound recordings: non-trade businesses
609    Charge to tax on films and sound recordings businesses
610    Income charged
611    Person liable
612    Calculation of income
613    Application of trading income rules to non-trade businesses
Chapter 4
Certain telecommunication rights: non-trading income
614    Charge to tax on certain telecommunication rights of a non-trader
615    Income charged
616    Person liable
617    Deductions in calculating certain income charged
618    Payments received after deduction of tax
Chapter 5
Settlements: amounts treated as income of settlor
Charge to tax under Chapter 5
619    Charge to tax under Chapter 5
620    Meaning of “settlement” and “settlor”
Income Tax (Trading and Other Income) Bill (Volume I) xxvii
Income charged and person liable
621    Income charged
622    Person liable
Rules for calculating income
623    Calculation of income
Income treated as income of settlor: retained interests
624    Income where settlor retains an interest
625    Settlor’s retained interest
626    Exception for outright gifts between spouses
627    Exceptions for certain types of income
628    Exception for gifts to charities
Income treated as income of settlor: unmarried children
629    Income paid to unmarried minor children of settlor
630    Exception for gifts to charities
631    Retained and accumulated income
632    Offshore income gains
Capital sums treated as income of settlor: trustees’ payments
633    Capital sums paid to settlor by trustees of settlement
634    Meaning of “capital sum” and “sums paid to settlor”
635    Amount of available income
636    Calculation of undistributed income
637    Qualifications to section 636
Trustees’ payments: further provisions
638    Capital sums paid by way of loan or repayment of loan
639    Loans to participators in close companies
640    Grossing-up of deemed income
Capital sums treated as income of settlor: connected bodies
641    Capital sums paid to settlor by body connected with settlement
642    Exception for certain loans or repayments of loans
643    Interpretation of sections 641 and 642
Settlements by two or more settlors
644    Application to settlements by two or more settlors
645    Property or income originating from settlor
Other supplementary provisions
646    Adjustments between settlor and trustees etc.
647    Power to obtain information
648    Income arising under a settlement
Income Tax (Trading and Other Income) Bill (Volume I) xxviii
Chapter 6
Beneficiaries’ income from estates in administration
Charge to tax on estate income
649    Charge to tax on estate income
650    Absolute, limited and discretionary interests
651    Meaning of “UK estate” and “foreign estate”
Types of estate income
652    Estate income: absolute interests in residue
653    Meaning of “the administration period” and “the final tax year”
654    Estate income: limited interests in residue
655    Estate income: discretionary interests in residue
Income charged and person liable
656    Income charged: UK estates
657    Income charged: foreign estates
658    Special rules for foreign income
659    Person liable
Basic amount of estate income: general calculation rules
660    Basic amount of estate income: absolute interests
661    Basic amount of estate income: limited interests
662    Basic amount of estate income: discretionary interests
663    The applicable rate for grossing up basic amounts of estate income
664    The aggregate income of the estate
Further provisions for calculating estate income relating to absolute interests
665    Assumed income entitlement
666    The residuary income of the estate
667    Shares of residuary income of estate
668    Reduction in share of residuary income of estate
669    Reduction in residuary income: inheritance tax on accrued income
670    Applicable rate for determining assumed income entitlement (UK estates)
Special rules for successive interests
671    Successive absolute interests
672    Successive interests: assumed income entitlement of holder of absolute
interest following limited interest
673    Successive interests: payments in respect of limited interests followed by
absolute interests
674    Successive interests: holders of limited interests
675    Basic amount of estate income: successive limited interests
676    Apportionments

© Parliamentary copyright 2005	Revised 4 February 2005