|
| |
|
(14) | In paragraph 25(1), omit “is a company and”. |
| |
| |
(a) | in sub-paragraph (1), omit paragraph (a), |
| |
(b) | in sub-paragraph (2), omit “income or”, for “a tax year or” substitute |
| |
“an” and, in paragraph (b)(i), omit “year or”, |
| 5 |
(c) | in sub-paragraphs (3) and (4), omit “income tax or”, and |
| |
(d) | in sub-paragraph (5), for “a tax year or” substitute “an” and for “that |
| |
year or period” substitute “that period”. |
| |
| |
(a) | omit sub-paragraphs (2) and (3), and |
| 10 |
(b) | in sub-paragraph (4), omit “Where the investor is a company,”. |
| |
(17) | In paragraph 28(1), omit “tax year or”. |
| |
| |
(a) | in sub-paragraph (2), omit “tax year or”, |
| |
(b) | in sub-paragraph (3), for “a tax year or” substitute “an”, |
| 15 |
(c) | in sub-paragraph (5), omit “tax year or” and for “that year or period”, |
| |
in both places where it occurs, substitute “that period”, and |
| |
(d) | in sub-paragraph (6), for “a tax year or” substitute “an”. |
| |
(19) | In paragraph 30(1), omit “tax year or”. |
| |
(20) | In paragraphs 31(5), 32(1)(b), 32(3) and 34(5)(b)(ii) for “he” and “him” |
| 20 |
substitute “the investor”. |
| |
(21) | In paragraph 31(8), omit “tax years or”. |
| |
| |
(a) | in sub-paragraph (1), omit “tax year or”, and |
| |
(b) | in sub-paragraph (5), omit “tax years or”. |
| 25 |
(23) | In paragraph 35(1)(d)(ii), omit “if the investor is a company,”. |
| |
(24) | In paragraph 35(5)(a) for “his” substitute “the investor’s”. |
| |
(25) | In paragraph 36(d)(ii), for “his” substitute “the investor”. |
| |
(26) | In paragraph 37(6), for “him” substitute “the investor”. |
| |
| 30 |
(a) | in sub-paragraph (1), for “him” substitute “the investor”. |
| |
(b) | in sub-paragraph (2), omit “tax year or”, |
| |
(c) | in sub-paragraph (3), omit “tax years or” and, in both places where it |
| |
occurs, “tax year or”, and |
| |
(d) | in sub-paragraph (4), for “he” substitute “the investor”. |
| 35 |
(28) | Omit paragraphs 40 and 41. |
| |
| |
(a) | in sub-paragraph (1), omit “tax year or”, and |
| |
(b) | in sub-paragraph (2), omit paragraph (a) and the “and” immediately |
| |
after it and, in paragraph (b), “if the investor is a company,”. |
| 40 |
(30) | In paragraph 43(1), for “Tax Acts” substitute “Corporation Tax Acts”. |
| |
|
| |
|
| |
|
(31) | In paragraph 45, for “person”, in both places where it occurs, substitute |
| |
| |
(32) | In paragraph 46(2), for “person”, in both places where it occurs, substitute |
| |
| |
| 5 |
(a) | in sub-paragraph (1), omit “tax years or”, |
| |
(b) | in sub-paragraphs (3) and (4), omit “of capital gains tax or |
| |
corporation tax on chargeable gains and”, |
| |
(c) | omit sub-paragraphs (5) and (6), and |
| |
(d) | in sub-paragraph (7) for “that Act” substitute “the 1992 Act”. |
| 10 |
| |
(a) | omit “, and for the purposes of capital gains tax or corporation tax on |
| |
| |
(b) | for “paragraph 41 he” substitute “section 151BC(1) of the 1992 Act the |
| |
| 15 |
(35) | In paragraph 49(2), for “he”, in both places where it occurs, substitute “the |
| |
| |
(36) | In paragraph 51(1), omit the definition of “tax year”. |
| |
(37) | In paragraph 52 before the entry for “associate” insert— |
| |
|
416 (1) | Amend Schedule 18 (relief for community amateur sports clubs) as follows. |
| |
| |
(a) | in sub-paragraph (3)(b) omit the words from “as it applies” to the |
| |
| |
(b) | after that sub-paragraph insert— |
| 25 |
“(4) | For the purposes of this paragraph, section 25(10) of the |
| |
Finance Act 1990 (gift aid) has effect as if a registered club |
| |
were a charitable company.” |
| |
(3) | In paragraph 9 for sub-paragraph (1) substitute— |
| |
“(1) | Chapter 2 of Part 8 of ITA 2007 (gift aid) confers relief from income |
| 30 |
tax for donors to registered clubs (see section 430 of that Act).” |
| |
417 | In Schedule 25 (loan relationships), omit paragraph 57. |
| |
418 (1) | Amend Schedule 26 (derivative contracts) as follows. |
| |
(2) | In paragraph 24 (derivative contracts for unallowable purposes: |
| |
supplementary) for sub-paragraph (5) substitute— |
| 35 |
“(5) | In this paragraph “tax advantage” has the meaning given by |
| |
section 840ZA of the Taxes Act 1988.” |
| |
| |
|
| |
|
| |
|
(4) | In paragraph 45I(3) in the definition of “the retail prices index” for “section |
| |
833(2) of the Taxes Act 1988” substitute “section 923 of ITA 2007”. |
| |
(5) | In paragraph 45J(10), in paragraph (b) of the definition of “securities house”, |
| |
for “section 349(5) and (6) of the Taxes Act 1988” substitute “section 917 of |
| |
| 5 |
(6) | For paragraph 51 substitute— |
| |
“51 | See section 913 of ITA 2007 (derivative contracts: exception from |
| |
| |
419 | Omit Schedule 33 (venture capital trusts). |
| |
Income Tax (Earnings and Pensions) Act 2003 (c. 1) |
| 10 |
420 | The Income Tax (Earnings and Pensions) Act 2003 is amended as follows. |
| |
421 | In section 1 (overview of contents of Act) omit subsection (2). |
| |
422 | In section 11(3) (calculation of “net taxable earnings”) for “section 380(1) of |
| |
ICTA” substitute “section 128 of ITA 2007”. |
| |
423 | In section 24(6)(a) (limit on chargeable overseas earnings where duties of |
| 15 |
associated employment performed in UK) for “section 840 of ICTA” |
| |
substitute “section 929 of ITA 2007”. |
| |
424 | In section 48(2) (scope of Chapter) for “subject to deduction of tax under |
| |
section 555 of ICTA (payments to non-resident entertainers and sportsmen)” |
| |
substitute “or transfers to which section 899(3) or (4) of ITA 2007 applies |
| 20 |
(visiting performers: duty to deduct and account for sums representing |
| |
| |
425 | In section 69(1) (extended meaning of “control”) for “section 840 of ICTA” |
| |
substitute “section 929 of ITA 2007”. |
| |
426 | In section 178 (exception for loans where interest qualifies for tax relief)— |
| 25 |
(a) | in paragraph (a) for the words from “(general” to “MIRAS)” |
| |
substitute “or section 383 of ITA 2007 (relief for interest payments)”, |
| |
| |
(b) | in paragraph (b) for “that section” substitute “section 353 of ICTA”. |
| |
427 | In section 180(5) (threshold for benefit of loan to be treated as earnings)— |
| 30 |
(a) | in paragraph (a) for the words from “(general” to “MIRAS)” |
| |
substitute “or section 383 of ITA 2007 (relief for interest payments)”, |
| |
| |
(b) | in paragraph (b) for “that section” substitute “section 353 of ICTA”. |
| |
428 | In section 230(5)(a) (the approved amount for mileage allowance payments) |
| 35 |
for “section 840 of ICTA” substitute “section 929 of ITA 2007”. |
| |
429 | In section 329(6) (deductions from earnings not to exceed earnings) for |
| |
“section 380 of ICTA” substitute “section 128 of ITA 2007”. |
| |
430 | In section 347(2) (payments made after leaving an employment) for “from |
| |
total income” substitute “in calculating net income”. |
| 40 |
431 | In section 357(2) after “section 505(1)(e) of ICTA” insert “or section 524 of |
| |
| |
|
| |
|
| |
|
432 | After section 404 insert— |
| |
“404A | Amounts charged to be treated as highest part of total income |
| |
(1) | A payment or other benefit which counts as a person’s employment |
| |
income as a result of section 403 is treated as the highest part of the |
| |
| 5 |
(2) | Subsection (1) has effect for all income tax purposes except the |
| |
purposes of sections 535 to 537 of ITTOIA 2005 (gains from contracts |
| |
for life insurance etc: top slicing relief). |
| |
(3) | See section 946 of ITA 2007 (relationship between highest part rules) |
| |
for the relationship between— |
| 10 |
(a) | the rule in subsection (1), and |
| |
(b) | other rules requiring particular income to be treated as the |
| |
highest part of a person’s total income.” |
| |
433 | In section 476 (charge on occurrence of chargeable event) after subsection (5) |
| |
| 15 |
“(5A) | An amount charged under subsection (5)(a) is treated for income tax |
| |
purposes as an amount of income.” |
| |
434 (1) | Amend section 515 (tax advantages and charges relating to SIPs) as follows. |
| |
| |
(a) | for “provisions of ICTA relate” substitute “provision of ICTA |
| 20 |
| |
(b) | omit paragraph (b) and the “and” immediately after it. |
| |
| |
(a) | omit the “and” immediately after paragraph (b), and |
| |
(b) | after paragraph (c) insert “, and |
| 25 |
(d) | Chapter 5 of Part 9 of ITA 2007 (which provides for |
| |
section 479 of that Act not to apply to income of the |
| |
trustees of an approved SIP in certain |
| |
| |
| 30 |
435 (1) | Amend section 555 (deduction for liabilities related to former employment) |
| |
| |
| |
(a) | for “when computing the former employee’s total income” substitute |
| |
“in calculating the former employee’s net income”, and |
| 35 |
(b) | at the end insert “(see Step 2 of the calculation in section 23 of ITA |
| |
| |
(3) | For subsection (6) substitute— |
| |
“(6) | See section 263ZA of TCGA 1992 for relief from capital gains tax |
| |
where the amount of the deduction allowed under this section |
| 40 |
exceeds the remaining total income (as defined in that section).” |
| |
(4) | In the sidenote for “from total income” substitute “in calculating net |
| |
| |
|
| |
|
| |
|
(5) | In the italic cross-heading before the section for “from total income” |
| |
substitute “in calculating net income”. |
| |
436 | In section 609(1) after “section 273 of ICTA” insert “or section 459 of ITA |
| |
| |
437 | Omit section 627 (meaning of “grossing up”). |
| 5 |
438 | In section 718 (connected persons) for “Section 839 of ICTA” substitute |
| |
“Section 927 of ITA 2007”. |
| |
439 | In section 719 (control in relation to a body corporate)— |
| |
(a) | for “Section 840 of ICTA (meaning of control in relation to a body |
| |
corporate)” substitute “Section 929 of ITA 2007 (meaning of |
| 10 |
| |
(b) | for the sidenote substitute “Meaning of “control””. |
| |
440 (1) | Amend section 721 (other definitions) as follows. |
| |
| |
(a) | after the definition of “foreign employer” insert “and”, and |
| 15 |
(b) | omit the words after the definition of “non-cash voucher”. |
| |
| |
441 | In Part 1 of Schedule 1 (abbreviations) in the appropriate place insert— |
| |
| | The Income Tax Act 2007”. |
| | |
|
442 (1) | Amend Part 2 of Schedule 1 (defined expressions) as follows. |
| 20 |
(2) | In the entry for “assignment (in the application of the Act to Scotland)”, in |
| |
the second column, for “section 721(2)” substitute “section 942(1) of ITA |
| |
| |
(3) | In the entry for “basic rate”, in the second column, for “section 832(1) of |
| |
ICTA” substitute “section 6(2) of ITA 2007 (as applied by section 923 of that |
| 25 |
| |
(4) | In the entry for “body of persons”, in the second column, for “section 832(1) |
| |
of ICTA” substitute “section 923 of ITA 2007”. |
| |
(5) | In the entry for “capital allowance”, in the second column, for “section 832(1) |
| |
of ICTA” substitute “section 923 of ITA 2007”. |
| 30 |
(6) | In the entry for “child, children”, in the second column, omit “section 832(5) |
| |
| |
(7) | In the entry for “close company”, in the second column, for “section 832(1) |
| |
of ICTA” substitute “section 923 of ITA 2007”. |
| |
(8) | In the entry for “company”, in the second column, for “section 832(1) of |
| 35 |
ICTA” substitute “section 926 of ITA 2007”. |
| |
(9) | In the entry for “connected”, in the second column, for “section 839 of ICTA” |
| |
substitute “section 927 of ITA 2007”. |
| |
|
| |
|
| |
|
(10) | In the entry for “control”, in the second column, for “section 840 of ICTA” |
| |
substitute “section 929 of ITA 2007”. |
| |
(11) | In the entry for “distribution”, in the second column, for “section 832(1) of |
| |
ICTA” substitute “section 923 of ITA 2007”. |
| |
(12) | In the entry for “generally accepted accounting practice”, in the second |
| 5 |
column, for “section 832(1) of ICTA” substitute “section 931 of ITA 2007”. |
| |
(13) | After the entry for “generally accepted accounting practice” insert— |
| |
|
(14) | Omit the entry for “interest”. |
| 10 |
(15) | In the entry for “local authority”, in the second column, for “section 842A of |
| |
ICTA” substitute “section 933 of ITA 2007”. |
| |
(16) | After the entry for “national insurance contributions” insert— |
| |
|
(17) | In the entry for “the normal self-assessment filing date”, in the second |
| |
column, for “section 721(1)” substitute “section 923 of ITA 2007”. |
| |
(18) | In the entry for “notice”, in the second column, for “section 832(1) of ICTA” |
| |
substitute “section 923 of ITA 2007”. |
| 20 |
(19) | In the entry for “offshore installation”, in the second column, for “section |
| |
837C of ICTA” substitute “sections 935 and 936 of ITA 2007”. |
| |
(20) | In the entry for “ordinary share capital”, in the second column, for “section |
| |
832(1) of ICTA” substitute “section 923 of ITA 2007”. |
| |
(21) | In the entry for “personal representatives”, in the second column, for |
| 25 |
“section 721(1)” substitute “section 923 of ITA 2007”. |
| |
(22) | In the entry for “recognised stock exchange”, in the second column, for |
| |
“section 841 of ICTA” substitute “section 939 of ITA 2007”. |
| |
(23) | In the entry for “registered pension scheme”, in the second column, for |
| |
“section 832(1) of ICTA” substitute “section 150(2) of FA 2004 (as applied by |
| 30 |
section 923 of ITA 2007)”. |
| |
(24) | In the entry for “Schedule A business”, in the second column, for “section |
| |
832(1) of ICTA” substitute “section 923 of ITA 2007”. |
| |
(25) | In the entry for “stepchild”, in the second column, for “section 832(1) of |
| |
ICTA” substitute “section 246 of the Civil Partnership Act 2004 (as applied |
| 35 |
by section 923 of ITA 2007)”. |
| |
(26) | In the entry for “51% subsidiary”, in the second column, for “section 838(1) |
| |
of ICTA” substitute “section 923 of ITA 2007”. |
| |
|
| |
|
| |
|
(27) | In the entry for “tax”, in the second column, at the end insert “(as applied by |
| |
section 923 of ITA 2007)”. |
| |
(28) | In the entry for “tax credit”, in the second column, for “section 832(1) of |
| |
ICTA” substitute “section 397(1) of ITTOIA 2005 (as applied by section 923 |
| |
| 5 |
(29) | In the entry for “tax year”, in the second column, for “section 721(1)” |
| |
substitute “section 4(2) of ITA 2007 (as applied by section 923 of that Act)”. |
| |
(30) | In the entry for “the tax year 2003-04 etc”, in the second column, for “section |
| |
721(1)” substitute “section 4(4) of ITA 2007 (as applied by section 923 of that |
| |
| 10 |
(31) | In the entry for “total income” for “section 835 of ICTA” substitute “section |
| |
23 of ITA 2007 (as applied by section 923 of that Act)”. |
| |
(32) | In the entry for “trade”, in the second column, for “section 832(1) of ICTA” |
| |
substitute “section 923 of ITA 2007”. |
| |
(33) | In the entry for “United Kingdom”, in the second column, for “section 830 of |
| 15 |
ICTA” substitute “section 947 of ITA 2007”. |
| |
(34) | In the entry for “UK property business”, in the second column, omit “section |
| |
832(1) of ICTA and” and at the end insert “(as applied by section 923 of ITA |
| |
| |
443 (1) | Amend Schedule 2 (approved share incentive plans) as follows. |
| 20 |
| |
(a) | in paragraph (a) for “section 840A(1)(b) of ICTA” substitute “section |
| |
925(2)(b) of ITA 2007”, and |
| |
(b) | in paragraph (c) for “section 840A(1)(c) of ICTA” substitute “section |
| |
| 25 |
| |
(a) | in the entry for “building society”, in the second column, for “section |
| |
832(1) of ICTA” substitute “section 923 of ITA 2007”, |
| |
(b) | in the entry for “child”, in the second column, for “section 832(5) of |
| |
ICTA (and see section 721(6))” substitute “section 721(6)”, |
| 30 |
(c) | in the entry for “close company”, in the second column, for “section |
| |
832(1) of ICTA” substitute “section 923 of ITA 2007”, |
| |
(d) | in the entry for “distribution”, in the second column, for “section |
| |
832(1) of ICTA” substitute “section 923 of ITA 2007”, |
| |
(e) | in the entry for “notice”, in the second column, for “section 832(1) of |
| 35 |
ICTA” substitute “section 923 of ITA 2007”, |
| |
(f) | in the entry for “ordinary share capital”, in the second column, for |
| |
“section 832(1) of ICTA” substitute “section 923 of ITA 2007”, |
| |
(g) | in the entry for “personal representatives”, in the second column, for |
| |
“section 721(1)” substitute “section 923 of ITA 2007”, |
| 40 |
(h) | in the entry for “recognised stock exchange”, in the second column, |
| |
for “section 841 of ICTA” substitute “section 939 of ITA 2007”, |
| |
(i) | in the entry for “tax”, in the second column, at the end insert “(as |
| |
applied by section 923 of ITA 2007)”, and |
| |
|
| |
|