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953 | Meaning of “certificate of deposit” |
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In this Act “certificate of deposit” means a document— |
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(a) | relating to the deposit of money in any currency, |
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(b) | recognising an obligation to pay a stated principal amount to bearer or |
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to order, with or without interest, and |
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(c) | by the delivery of which, with or without endorsement, the right to |
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receive that stated amount, with or without interest, is transferable. |
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(1) | In this Act any reference to a claim or election is to a claim or election in writing |
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or in any form authorised (in relation to the case in question) by directions |
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under section 118 of FA 1998. |
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(2) | For further information about claims and elections, see TMA 1970 (in |
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particular, section 42(2), (10) and (11) and Schedule 1A). |
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955 | Application of definitions of “connected” persons and “control” |
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(1) | Section 927 (meaning of “connected” persons) applies for the purposes of this |
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Act unless otherwise indicated. |
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(2) | Section 929 (meaning of “control”) applies for the purposes of this Act unless |
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956 | Meaning of “debenture” |
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(1) | In this Act “debenture” has the meaning given by section 744 of the Companies |
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(2) | This section does not apply for the purposes of sections 559, 560 and 624. |
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957 | Meaning of “double taxation arrangements” |
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In this Act “double taxation arrangements” means arrangements which have |
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effect under section 788 of ICTA. |
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958 | Meaning of “modified net income” |
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(1) | For the purposes of this Act a person’s modified net income for a tax year |
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(“year X”) is the person’s net income for year X calculated in accordance with |
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Steps 1 and 2 of section 23 (calculation of income tax liability) as modified by |
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(2) | In applying Steps 1 and 2 of section 23, ignore— |
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(a) | any non-qualifying income included in the person’s total income (see |
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(b) | any relief under Chapter 2 of Part 4 for a loss incurred or treated as incurred, |
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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 |
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(d) | any adjustment of profits resulting from a claim under Chapter 16 of Part 2 of |
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ITTOIA 2005 (averaging profits of farmers and creative artists), if year X is |
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the earlier of the tax years in relation to which the claim is made, |
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(e) | any adjustment resulting from an election under section 257 of ITTOIA 2005 |
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(election to carry back post-cessation receipts), and |
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(f) | any relief or adjustment resulting from the making, amendment or revocation |
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of a claim for relief, if the claim, amendment or revocation would have been out |
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of time but for section 224(4) of ITTOIA 2005 (averaging profits of farmers |
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and creative artists: extension of deadline for claiming other reliefs). |
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(3) | But this section applies for the purposes of section 427 as if subsection (2)(c) |
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(4) | And this section applies for the purposes of Chapter 9 of Part 9 and Chapter 13 |
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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 |
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(5) | In this section “claim” includes an election or notice. |
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959 | Meaning of “non-qualifying income” for the purposes of section 958 |
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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— |
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(a) | income on which income tax is treated as paid under section 399(2) or |
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400(2) of ITTOIA 2005 (distributions from UK resident companies etc |
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on which there is no tax credit), |
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(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 |
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section 413(3) of that Act (stock dividend income), |
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(c) | income on which any person is liable to income tax under Chapter 6 of |
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Part 4 of ITTOIA 2005 (release of loan to participator in a close |
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(d) | income on which an individual is liable to income tax as a result of |
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section 465 of ITTOIA 2005 or trustees are so liable as a result of section |
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467 of that Act (gains from contracts for life insurance etc), being |
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income to which section 530 of that Act applies (income tax treated as |
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(e) | income which is included in the aggregate income of an estate as a |
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result of section 664(2)(c), (d) or (e) of ITTOIA 2005 (income arising to |
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personal representatives and corresponding to income within |
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paragraph (b), (c) or (d)), |
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(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 |
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(g) | an amount that a person is treated as having received under section |
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804(5B) of ICTA (double taxation relief: special rules about overlap |
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960 | Minor and consequential amendments |
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Schedule 1 (minor and consequential amendments) has effect. |
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961 | Power to make consequential provision |
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(1) | The Treasury may by order make such provision as the Treasury consider |
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appropriate in consequence of this Act. |
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(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 |
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(4) | An order under this section may contain provision having retrospective effect. |
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(5) | An order under this section may contain incidental, supplemental, |
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consequential and transitional provision and savings. |
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962 | Power to undo changes |
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(1) | The Treasury may by order make such provision as the Treasury consider appropriate, |
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in relation to a case in which the Treasury consider that a provision of this Act changes |
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the effect of the law, for the purpose of returning the effect of the law to what it was |
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immediately before 6 April 2007. |
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(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 |
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by or under this Act or by or under any other Act. |
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(4) | An order under this section may contain provision having retrospective effect. |
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(5) | An order under this section may contain incidental, supplemental, |
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consequential and transitional provision and savings. |
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963 | Transitional provisions and savings |
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(1) | Schedule 2 (transitional provisions and savings) has effect. |
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(2) | The Treasury may by order make such transitional or saving provision as the |
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Treasury consider appropriate in connection with the coming into force of this |
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(3) | An order under subsection (2) may contain provision having retrospective |
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(4) | At any time before section 948 of this Act (orders and regulations) comes into |
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force, section 828(4) of ICTA (order-making powers excluded from negative |
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resolution procedure) has effect as if it included a reference to an order made |
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under subsection (2) of this section. |
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964 | Repeals and revocations |
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Schedule 3 (repeals and revocations, including of spent enactments) has effect. |
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965 | Index of defined expressions |
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(1) | Schedule 4 (index of defined expressions that apply for the purposes of this |
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(2) | That Schedule lists the places where some of the expressions used in this Act |
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are defined or otherwise explained. |
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(1) | This Act extends to England and Wales, Scotland and Northern Ireland (but |
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(2) | An amendment, repeal or revocation contained in Schedule 1 or 3 has the same |
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extent as the provision amended, repealed or revoked. |
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(1) | This Act comes into force on 6 April 2007 and has effect— |
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(a) | for income tax purposes, for the tax year 2007-08 and subsequent tax |
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(b) | for corporation tax purposes, for accounting periods ending after 5 |
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(2) | Subsection (1) is subject to subsections (3) and (4). |
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(a) | Part 5 (enterprise investment scheme), |
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(b) | Part 3 of Schedule 1 (consequential amendment associated with Part 5), |
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(c) | Part 2 of Schedule 3 (repeals so associated), |
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| do not have effect in relation to shares issued before 6 April 2007. |
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(4) | Subsection (1) does not apply to the following provisions of this Act (which |
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therefore come into force on the passing of this Act)— |
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(a) | in Part 14, section 785, and |
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This Act may be cited as the Income Tax Act 2007. |
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