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Income Tax Bill


Income Tax Bill
Part 16 — Definitions for purposes of Act and final provisions

473

 

953     

Meaning of “certificate of deposit”

In this Act “certificate of deposit” means a document—

(a)   

relating to the deposit of money in any currency,

(b)   

recognising an obligation to pay a stated principal amount to bearer or

to order, with or without interest, and

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(c)   

by the delivery of which, with or without endorsement, the right to

receive that stated amount, with or without interest, is transferable.

954     

Claims and elections

(1)   

In this Act any reference to a claim or election is to a claim or election in writing

or in any form authorised (in relation to the case in question) by directions

10

under section 118 of FA 1998.

(2)   

For further information about claims and elections, see TMA 1970 (in

particular, section 42(2), (10) and (11) and Schedule 1A).

955     

Application of definitions of “connected” persons and “control”

(1)   

Section 927 (meaning of “connected” persons) applies for the purposes of this

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Act unless otherwise indicated.

(2)   

Section 929 (meaning of “control”) applies for the purposes of this Act unless

otherwise indicated.

956     

Meaning of “debenture”

(1)   

In this Act “debenture” has the meaning given by section 744 of the Companies

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Act 1985 (c. 6).

(2)   

This section does not apply for the purposes of sections 559, 560 and 624.

957     

Meaning of “double taxation arrangements”

In this Act “double taxation arrangements” means arrangements which have

effect under section 788 of ICTA.

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958     

Meaning of “modified net income”

(1)   

For the purposes of this Act a person’s modified net income for a tax year

(“year X”) is the person’s net income for year X calculated in accordance with

Steps 1 and 2 of section 23 (calculation of income tax liability) as modified by

subsection (2).

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(2)   

In applying Steps 1 and 2 of section 23, ignore—

(a)   

any non-qualifying income included in the person’s total income (see

section 959),

(b)   

any relief under Chapter 2 of Part 4 for a loss incurred or treated as incurred,

or a payment made, in a tax year later than year X,

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(c)   

any reliefs to which the person may be entitled under Chapter 4 of Part

8,

(d)   

any adjustment of profits resulting from a claim under Chapter 16 of Part 2 of

ITTOIA 2005 (averaging profits of farmers and creative artists), if year X is

the earlier of the tax years in relation to which the claim is made,

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Income Tax Bill
Part 16 — Definitions for purposes of Act and final provisions

474

 

(e)   

any adjustment resulting from an election under section 257 of ITTOIA 2005

(election to carry back post-cessation receipts), and

(f)   

any relief or adjustment resulting from the making, amendment or revocation

of a claim for relief, if the claim, amendment or revocation would have been out

of time but for section 224(4) of ITTOIA 2005 (averaging profits of farmers

5

and creative artists: extension of deadline for claiming other reliefs).

(3)   

But this section applies for the purposes of section 427 as if subsection (2)(c)

were omitted.

(4)   

And this section applies for the purposes of Chapter 9 of Part 9 and Chapter 13

of Part 14 as if for subsection (2)(c) there were substituted—

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“(c)   

any reliefs to which the person may be entitled under section

505,”.

(5)   

In this section “claim” includes an election or notice.

959     

Meaning of “non-qualifying income” for the purposes of section 958

For the purposes of section 958 an amount included in a person’s total income

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is non-qualifying income if it is—

(a)   

income on which income tax is treated as paid under section 399(2) or

400(2) of ITTOIA 2005 (distributions from UK resident companies etc

on which there is no tax credit),

(b)   

income on which an individual is liable to income tax as a result of

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section 413(2) of ITTOIA 2005 or trustees are so liable as a result of

section 413(3) of that Act (stock dividend income),

(c)   

income on which any person is liable to income tax under Chapter 6 of

Part 4 of ITTOIA 2005 (release of loan to participator in a close

company),

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(d)   

income on which an individual is liable to income tax as a result of

section 465 of ITTOIA 2005 or trustees are so liable as a result of section

467 of that Act (gains from contracts for life insurance etc), being

income to which section 530 of that Act applies (income tax treated as

paid etc),

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(e)   

income which is included in the aggregate income of an estate as a

result of section 664(2)(c), (d) or (e) of ITTOIA 2005 (income arising to

personal representatives and corresponding to income within

paragraph (b), (c) or (d)),

(f)   

income on which income tax is treated as paid under section 685A(3) of

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ITTOIA 2005 (settlor-interested settlements), or

(g)   

an amount that a person is treated as having received under section

804(5B) of ICTA (double taxation relief: special rules about overlap

profit).

Final provisions

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960     

Minor and consequential amendments

Schedule 1 (minor and consequential amendments) has effect.

 
 

Income Tax Bill
Part 16 — Definitions for purposes of Act and final provisions

475

 

961     

Power to make consequential provision

(1)   

The Treasury may by order make such provision as the Treasury consider

appropriate in consequence of this Act.

(2)   

The power conferred by subsection (1) may not be exercised after 5 April 2010.

(3)   

An order under this section may amend, repeal or revoke any provision made

5

by or under an Act.

(4)   

An order under this section may contain provision having retrospective effect.

(5)   

An order under this section may contain incidental, supplemental,

consequential and transitional provision and savings.

962     

Power to undo changes

10

(1)   

The Treasury may by order make such provision as the Treasury consider appropriate,

in relation to a case in which the Treasury consider that a provision of this Act changes

the effect of the law, for the purpose of returning the effect of the law to what it was

immediately before 6 April 2007.

(2)   

The power conferred by subsection (1) may not be exercised after 5 April 2010.

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(3)   

An order under this section may amend, repeal or revoke any provision made

by or under this Act or by or under any other Act.

(4)   

An order under this section may contain provision having retrospective effect.

(5)   

An order under this section may contain incidental, supplemental,

consequential and transitional provision and savings.

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963     

Transitional provisions and savings

(1)   

Schedule 2 (transitional provisions and savings) has effect.

(2)   

The Treasury may by order make such transitional or saving provision as the

Treasury consider appropriate in connection with the coming into force of this

Act.

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(3)   

An order under subsection (2) may contain provision having retrospective

effect.

(4)   

At any time before section 948 of this Act (orders and regulations) comes into

force, section 828(4) of ICTA (order-making powers excluded from negative

resolution procedure) has effect as if it included a reference to an order made

30

under subsection (2) of this section.

964     

Repeals and revocations

Schedule 3 (repeals and revocations, including of spent enactments) has effect.

965     

Index of defined expressions

(1)   

Schedule 4 (index of defined expressions that apply for the purposes of this

35

Act) has effect.

(2)   

That Schedule lists the places where some of the expressions used in this Act

are defined or otherwise explained.

 
 

Income Tax Bill
Part 16 — Definitions for purposes of Act and final provisions

476

 

966     

Extent

(1)   

This Act extends to England and Wales, Scotland and Northern Ireland (but

see subsection (2)).

(2)   

An amendment, repeal or revocation contained in Schedule 1 or 3 has the same

extent as the provision amended, repealed or revoked.

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967     

Commencement

(1)   

This Act comes into force on 6 April 2007 and has effect—

(a)   

for income tax purposes, for the tax year 2007-08 and subsequent tax

years, and

(b)   

for corporation tax purposes, for accounting periods ending after 5

10

April 2007.

(2)   

Subsection (1) is subject to subsections (3) and (4).

(3)   

The following—

(a)   

Part 5 (enterprise investment scheme),

(b)   

Part 3 of Schedule 1 (consequential amendment associated with Part 5),

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and

(c)   

Part 2 of Schedule 3 (repeals so associated),

   

do not have effect in relation to shares issued before 6 April 2007.

(4)   

Subsection (1) does not apply to the following provisions of this Act (which

therefore come into force on the passing of this Act)—

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(a)   

in Part 14, section 785, and

(b)   

in this Part, sections 951, 952, 961, 962, 963(2) and (3), 966, this section

and section 968.

968     

Short title

This Act may be cited as the Income Tax Act 2007.

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