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Income Tax Bill


Income Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments

530

 

(b)   

a company, purporting to rely on section 844 of that Act

(double taxation arrangements: deduction at treaty rate),

deducts less from the payment than required by those

Chapters, and

(c)   

at the time the payment is made the payee (as defined in

5

section 846 of that Act) is not entitled to relief under double

taxation arrangements (as defined in section 957 of that Act)

and the company—

(i)   

does not believe that it is entitled to such relief, or

(ii)   

if it does so believe, cannot reasonably do so.”

10

      (6)  

For subsection (4DA) substitute—

“(4DA)   

A payment is within this subsection if—

(a)   

it is a payment from which a sum representing income tax

must be deducted under Chapter 6 (deduction from annual

payments and patent royalties) or 7 (deduction from other

15

payments connected with intellectual property) of Part 14 of

ITA 2007,

(b)   

a company, purporting to rely on section 847 of ITA 2007 (EU

companies: discretion to make payment gross), makes the

payment without deducting a sum representing income tax,

20

and

(c)   

at the time the payment is made the payment is not exempt

from income tax as a result of section 758 of ITTOIA 2005

(exemption for certain interest and royalty payments) and the

company—

25

(i)   

does not believe that the payment is so exempt, or

(ii)   

if it does so believe, cannot reasonably do so.”

      (7)  

In subsection (4E)(b) for “section 349(2)” substitute “section 807 of ITA

2007”.

      (8)  

In the first column of the Table—

30

(a)   

omit the entry relating to regulations under section 42A of ICTA,

(b)   

omit the entry relating to regulations under section 476(1) of ICTA,

(c)   

omit the entry relating to regulations under section 477A(1) of ICTA,

(d)   

omit the entry relating to section 482(3) of ICTA,

(e)   

omit the entry relating to regulations under section 482(11) of ICTA,

35

(f)   

omit the entry relating to section 483 of ICTA,

(g)   

omit the entry relating to regulations under section 555(7) of ICTA,

(h)   

omit the entry relating to section 745(1) of ICTA,

(i)   

omit the entry relating to paragraph 5(2) of Schedule 15B to ICTA,

(j)   

omit the entry relating to regulations under paragraph 11B(5) of

40

Schedule 28B to ICTA,

(k)   

omit the entry relating to section 86(12) of FA 1995,

(l)   

omit the entry relating to regulations under Schedule 33 to FA 2002,

and

(m)   

at the end insert—

45

“sections 242 and 243(1) and (2) of ITA 2007;

section 271(2) of ITA 2007;

regulations under Chapter 5 of Part 6 of ITA 2007;

 

 

Income Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments

531

 

regulations under section 330(5) of ITA 2007;

section 636 of ITA 2007;

section 681(1) and (2) of ITA 2007;

section 704 of ITA 2007;

section 721 of ITA 2007;

5

section 795 of ITA 2007;

regulations under section 804(1) of ITA 2007;

regulations under section 902(1) of ITA 2007;

regulations under section 904(1) of ITA 2007;

paragraph 145(5) of Schedule 2 to ITA 2007.”

10

      (9)  

In the second column of the Table—

(a)   

omit the entry relating to regulations under section 42A of ICTA,

(b)   

omit the entry relating to section 350(1) of ICTA,

(c)   

omit the entry relating to regulations under section 476(1) of ICTA,

(d)   

omit the entry relating to regulations under section 477A(1) of ICTA,

15

(e)   

omit the entry relating to section 482(2) of ICTA,

(f)   

omit the entry relating to regulations under section 482(11) of ICTA,

(g)   

omit the entry relating to regulations under section 555(7) of ICTA,

(h)   

omit the entry relating to paragraph 5(1) of Schedule 15B to ICTA,

(i)   

omit the entry relating to Schedule 16 to ICTA,

20

(j)   

omit the entry relating to regulations under Schedule 33 to FA 2002,

(k)   

omit the entry relating to regulations under section 122 of FA 2006,

and

(l)   

at the end insert—

“sections 240 and 241 of ITA 2007;

25

section 271(1) of ITA 2007;

regulations under Chapter 5 of Part 6 of ITA 2007;

section 373 of ITA 2007;

regulations under section 804(1) of ITA 2007;

Chapter 15 of Part 14 of ITA 2007;

30

Chapter 16 of Part 14 of ITA 2007;

regulations under section 902(1) of ITA 2007;

regulations under section 904(1) of ITA 2007;

regulations under section 906(1) of ITA 2007.”

     (10)  

After the paragraph at the end of the Table insert—

35

   

“References in this Table to sections 240, 241, 242 and 243(1) and (2)

of ITA 2007 are to provisions that apply only in relation to shares

issued after 5 April 2007.”

262        

In section 99A (certificates of non-liability to income tax) for “section 477A

of the principal Act (building societies) or section 480B of that Act (deposit-

40

takers)” substitute “section 785 of ITA 2007”.

 

 

Income Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments

532

 

263        

After section 99A insert—

“99B    

Declarations under Chapter 2 of Part 14 of ITA 2007

Where a person fraudulently or negligently gives any incorrect

information in a declaration under any of sections 791 to 794 of ITA

2007, the person shall be liable to a penalty not exceeding £3,000.”

5

264        

In section 118(1) (interpretation)—

(a)   

in the definition of “company” for “section 832(1) of the principal Act

(with section 468 of that Act)” substitute “section 926(1) of ITA 2007

(with section 468 of the principal Act)”, and

(b)   

after the definition of “ITTOIA 2005” insert—

10

““ITA 2007” means the Income Tax Act 2007,”.

265        

In paragraph 9(2) of Schedule 1A (claims etc not included in returns)—

(a)   

in paragraph (a) for “(personal reliefs for non-residents)” substitute

“or section 56 or 460 of ITA 2007 (residence etc of claimants)”, and

(b)   

in paragraph (c) for “of that Act” substitute “of the principal Act”.

15

Finance Act 1971 (c. 68)

266        

Omit section 21 of, and Schedule 3 to, the Finance Act 1971 (occupational

pension schemes).

Biological Standards Act 1975 (c. 4)

267        

In section 2(4A)(a) of the Biological Standards Act 1975 (general provisions

20

about the Board) for “section 505(1A) of the Income and Corporation Taxes

Act 1988” substitute “section 533(2) of the Income Tax Act 2007”.

House of Commons Disqualification Act 1975 (c. 24)

268        

In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975

(offices disqualifying for membership: other disqualifying offices) after

25

“section 706 of the Income and Corporation Taxes Act 1988” insert “or

section 637 of the Income Tax Act 2007”.

Inheritance Tax Act 1984 (c. 51)

269        

The Inheritance Tax Act 1984 is amended as follows.

270        

In section 157(6) (non-residents’ bank accounts) for “section 840A of the

30

Taxes Act 1988” substitute “section 925 of the Income Tax Act 2007”.

271        

In section 204(5) (limitation of liability) for “section 739 or 740 of the Taxes

Act 1988” substitute “Chapter 2 of Part 12 of the Income Tax Act 2007”.

272        

In section 272 (general interpretation) in the definition of “authorised unit

trust” for the words from “section 469” to “section)” substitute “the Income

35

Tax Acts (see section 941 of the Income Tax Act 2007)”.

Administration of Justice Act 1985 (c. 61)

273        

In paragraph 36(3) of Schedule 2 to the Administration of Justice Act 1985

(a)   

for “sections 745(3) and” substitute “section”, and

 

 

Income Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments

533

 

(b)   

after “1988” insert “and sections 682, 704(5) and (6) and 721(5) and (6)

of the Income Tax Act 2007”.

Building Societies Act 1986 (c. 53)

274        

In section 8(9) of the Building Societies Act 1986 (raising funds and

borrowing) for “482(6) of the Income and Corporation Taxes Act 1988”

5

substitute “799(2) and (3) of the Income Tax Act 2007”.

Finance Act 1988 (c.39)

275        

The Finance Act 1988 is amended as follows.

276   (1)  

Amend section 130 (provisions for securing payment by company of

outstanding tax) as follows.

10

      (2)  

In subsection (7)—

(a)   

in paragraph (a), for “203 of the Taxes Act 1988” substitute “684 of the

Income Tax (Earnings and Pensions) Act 2003”,

(b)   

in paragraph (b), for “to which section 350(4)(a) of that Act (company

payments which are not distributions) applies” substitute “within

15

section 879 of the Income Tax Act 2007 (collection of tax: deposit-

takers, building societies and certain companies)”, and

(c)   

in paragraph (c)—

(i)   

omit sub-paragraphs (i) and (ii) and the “or” immediately

before sub-paragraph (iii), and

20

(ii)   

in sub-paragraph (iii) for “555 of that Act” substitute “899 of

the Income Tax Act 2007”.

      (3)  

After subsection (9) insert—

“(9A)   

In this section any reference to a provision of the Income Tax

(Earnings and Pensions) Act 2003 or the Income Tax Act 2007 shall be

25

construed, in relation to any time at which a corresponding

provision of the Taxes Act 1988 or an enactment repealed by that Act

had effect, as a reference to that corresponding provision.”

277        

In Schedule 6 (commercial woodlands) omit paragraph 3(3) to (5).

278        

In paragraph 6(1)(b) of Schedule 12 (building societies: change of status) for

30

the words from “section 477A” to the end substitute “Chapter 2 of Part 14 of

the Income Tax Act 2007 (deduction of income tax at source: deposit-takers

and building societies)”.

Finance Act 1989 (c. 26)

279        

The Finance Act 1989 is amended as follows.

35

280        

In section 88(1) (corporation tax: policy holders’ fraction of profits) for

“lower rate” substitute “savings rate”.

281        

In section 111 (residence of personal representatives)—

(a)   

omit subsections (1) to (3) and (6) to (8), and

(b)   

in subsection (5) omit the words “Subject to subsections (6) to (8)

40

below,”.

 

 

Income Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments

534

 

282   (1)  

Amend section 151 (assessment of trustees and personal representatives) as

follows.

      (2)  

In subsection (2)(a) omit the words from “other” to “2005,”.

      (3)  

Omit subsection (2)(b) and the “and” immediately before it .

      (4)  

Omit subsection (3).

5

283        

In section 182(3) (disclosure of information) at the end of paragraph (d)

insert “or section 637 of the Income Tax Act 2007”.

284   (1)  

Amend Schedule 5 (employee share ownership trusts) as follows.

      (2)  

In paragraph 15 for “section 840 of the Taxes Act 1988” substitute “section

929 of the Income Tax Act 2007”.

10

      (3)  

In paragraph 16(2)—

(a)   

in paragraph (b) for “section 840 of that Act” substitute “section 929

of the Income Tax Act 2007”, and

(b)   

in paragraph (c) for “that Act” substitute “the Taxes Act 1988”.

Finance Act 1990 (c.29)

15

285   (1)  

Amend section 25 of the Finance Act 1990 (c. 29) (donations to charity by

individuals) as follows.

      (2)  

Omit subsections (1) to (9A), (11) and (13).

      (3)  

In subsection (10)—

(a)   

for “charity”, in both places where it occurs, substitute “charitable

20

company”,

(b)   

after “donation” insert “for the purposes of Chapter 2 of Part 8 of the

Income Tax Act 2007 (gift aid)”, and

(c)   

for “Tax Acts” substitute “Corporation Tax Acts”.

      (4)  

In subsection (12)(a) for “charity” substitute “charitable company”.

25

Finance Act 1991 (c.31)

286        

The Finance Act 1991 (c. 31) is amended as follows.

287        

Omit section 53 (Income Tax (Building Society) Regulations 1986).

288        

Omit section 72 (deduction of trading losses).

Social Security Contributions and Benefits Act 1992 (c.4)

30

289        

The Social Security Contributions and Benefits Act 1992 (c. 4) is amended as

follows.

290        

In section 4A(3)(i)(i) (earnings of workers supplied by service companies etc)

for “section 839 of the Income and Corporation Taxes Act 1988” substitute

“section 927 of the Income Tax Act 2007”.

35

291   (1)  

Amend Schedule 2 (levy of Class 4 contributions with income tax) as

follows.

 

 

Income Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments

535

 

      (2)  

In paragraph 1 after paragraph (ab) insert—

“(ac)   

“ITA 2007” means the Income Tax Act 2007;”.

      (3)  

In paragraph 3—

(a)   

in sub-paragraph (1)—

(i)   

for “the Act of 1988” substitute “ITA 2007”,

5

(ii)   

in paragraph (a) for “sections 380 and 381” substitute

“sections 64 and 72”,

(iii)   

in paragraph (c) for “section 385” substitute “section 83”, and

(iv)   

in paragraph (d) for “sections 388 and 389” substitute “section

89”,

10

(b)   

in sub-paragraph (2)—

(i)   

omit “of the Act of 1988”,

(ii)   

in paragraph (a) after “Chapter I of Part VII” insert “of the Act

of 1988 and Chapters 2 and 3 of Part 3 and sections 457, 458

and 459 of ITA 2007”,

15

(iii)   

in paragraph (b) for “section 353” substitute “section 383 of

ITA 2007”,

(iv)   

omit paragraph (c), and

(v)   

in paragraph (d) for “section 390” substitute “sections 88 and

94 of ITA 2007”,

20

(c)   

in sub-paragraph (4) for “total income” substitute “net income”,

(d)   

in sub-paragraph (5)—

(i)   

omit paragraph (a), and

(ii)   

in paragraph (b) for “section 353 of that Act” substitute

“section 383 of ITA 2007”.

25

      (4)  

In paragraph 9(4) for “section 832 of the Act of 1988” substitute “section 923

of ITA 2007”.

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c.7)

292        

The Social Security Contributions and Benefits (Northern Ireland) Act 1992

is amended as follows.

30

293        

In section 4A(3)(i)(i) (earnings of workers supplied by service companies etc)

for “section 839 of the Income and Corporation Taxes Act 1988” substitute

“section 927 of the Income Tax Act 2007”.

294   (1)  

Amend Schedule 2 (Schedule 2 to the Social Security Contributions and

Benefits Act 1992: levy of Class 4 contributions with income tax) as follows.

35

      (2)  

In paragraph 1 after paragraph (ab) insert—

“(ac)   

“ITA 2007” means the Income Tax Act 2007;”.

      (3)  

In paragraph 3—

(a)   

in sub-paragraph (1)—

(i)   

for “the Act of 1988” substitute “ITA 2007”,

40

(ii)   

in paragraph (a) for “sections 380 and 381” substitute

“sections 64 and 72”,

(iii)   

in paragraph (c) for “section 385” substitute “section 83”, and

(iv)   

in paragraph (d) for “sections 388 and 389” substitute “section

89”,

45

 

 

Income Tax Bill
Schedule 1 — Minor and consequential amendments
Part 2 — Other enactments

536

 

(b)   

in sub-paragraph (2)—

(i)   

omit “of the Act of 1988”,

(ii)   

in paragraph (a) after “Chapter I of Part VII” insert “of the Act

of 1988 and Chapters 2 and 3 of Part 3 and sections 457, 458

and 459 of ITA 2007”,

5

(iii)   

in paragraph (b) for “section 353” substitute “section 383 of

ITA 2007”,

(iv)   

omit paragraph (c), and

(v)   

in paragraph (d) for “section 390” substitute “sections 88 and

94 of ITA 2007”,

10

(c)   

in sub-paragraph (4) for “total income” substitute “net income”,

(d)   

in sub-paragraph (5)—

(i)   

omit paragraph (a), and

(ii)   

in paragraph (b) for “section 353 of that Act” substitute

“section 383 of ITA 2007”.

15

      (4)  

In paragraph 9(4) for “section 832 of the Act of 1988” substitute “section 923

of ITA 2007”.

Taxation of Chargeable Gains Act 1992 (c. 12)

295        

The Taxation of Chargeable Gains Act 1992 is amended as follows.

296   (1)  

Amend section 4 (rates of capital gains tax) as follows.

20

      (2)  

In subsection (1) for “lower rate” substitute “savings rate”.

      (3)  

In subsection (1AA) for “rate applicable to trusts under section 686 of the

Taxes Act” substitute “trust rate”.

      (4)  

In subsection (1AB) for the words from “(after” to “total income” substitute

“an individual has no Step 3 income for a year of assessment or the

25

individual’s Step 3 income”.

      (5)  

In subsection (1AC) for the words from “his total income” to the end

substitute “the individual’s Step 3 income”.

      (6)  

In subsection (4) for the words from “his total income” to the end substitute

“the individual’s Step 3 income”.

30

      (7)  

At the end insert—

“(5)   

For the purposes of this section the “Step 3 income” of an individual

means the individual’s net income less allowances deducted at Step

3 of the calculation in section 23 of ITA 2007 for the purpose of

calculating the individual’s income tax liability.

35

(6)   

Section 923 of ITA 2007 (the definitions) applies for the purposes of

this section as it applies for income tax purposes.”

297   (1)  

Amend section 6 (rates of capital gains tax: special cases) as follows.

      (2)  

In subsection (2)—

(a)   

in paragraph (a) for the words from “a deduction” to “liability”

40

substitute “a person is entitled to relief by reference to the amount of

a deficiency”,

 

 

 
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