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Income Tax Bill


Income Tax Bill
Schedule 2 — Transitionals and savings
Part 14 — Deduction of income tax at source

656

 

(b)   

end on or after that date.

158   (1)  

This paragraph applies to a payment—

(a)   

which is made in an accounting period beginning before 6 April 2007

and ending on or after that date, and

(b)   

which was made before 6 April 2007, but which would have been a

5

payment within section 879 if it had been made on or after that date.

      (2)  

A payment to which this paragraph applies is to be treated as a payment

within section 879 if it is made in a return period which—

(a)   

falls within the accounting period,

(b)   

begins before 6 April 2007, and

10

(c)   

ends on or after that date.

      (3)  

In addition, a payment to which this paragraph applies which was made in

an earlier return period which falls within the accounting period is to be

treated as a payment within section 879.

Deduction from certain payments of yearly interest: interest paid by banks

15

159   (1)  

In the case of payments of interest to which this paragraph applies, section

811 (exceptions from duty to deduct: interest paid by banks) has effect with

the modification in sub-paragraph (2).

      (2)  

The modification is the substitution for subsections (1) and (2) of that section

of “The duty to deduct a sum representing income tax under section 807

20

does not apply to a payment of interest by a bank carrying on a genuine

banking business in the United Kingdom.”

      (3)  

This paragraph applies to interest payable on an advance made before 29

April 1996.

Deduction from certain payments of yearly interest: interest paid on advances from banks

25

160   (1)  

In the case of payments of interest to which this paragraph applies, section

812 (exceptions from duty to deduct: interest paid on advances from banks)

has effect with the modification in sub-paragraph (2).

      (2)  

The modification is the substitution for subsections (1) to (4) of that section

of “The duty to deduct a sum representing income tax under section 807

30

does not apply to a payment of interest in the United Kingdom on an

advance from a bank carrying on a genuine banking business in the United

Kingdom.”

      (3)  

This paragraph applies to interest payable before 29 April 1996.

      (4)  

In the case of an institution which—

35

(a)   

immediately before 29 April 1996 was not treated for the purposes of

section 349(3)(a) of ICTA as a bank carrying on a genuine banking

business in the United Kingdom, and

(b)   

on that day fell within the definition of “bank” given by section 840A

of ICTA,

40

           

this paragraph applies to interest payable on an advance made before that

day.

      (5)  

In the case of an institution which—

 

 

Income Tax Bill
Schedule 2 — Transitionals and savings
Part 14 — Deduction of income tax at source

657

 

(a)   

immediately before 29 April 1996 was treated for the purposes of

section 349(3)(a) of ICTA as a bank carrying on a genuine banking

business in the United Kingdom, and

(b)   

on that day did not fall within the definition of “bank” given by

section 840A(1) of ICTA,

5

           

this paragraph applies to the interest mentioned in sub-paragraph (6).

      (6)  

That interest is any interest payable on an advance made before 29 April

1996, if at the time when the interest is paid the person beneficially entitled

to the interest is within the charge to corporation tax as respects the interest.

Deduction from certain UK public revenue dividends

10

161   (1)  

This paragraph applies if—

(a)   

any person holds any gilt-edged securities in relation to which a

direction was given under section 50(1) of ICTA at any time before 6

April 1998, and

(b)   

that person at any time before that date made an application under

15

section 50(2) of that Act with respect to those securities.

      (2)  

The person is treated as having made a deduction at source application

under section 828 in respect of the securities which (unless withdrawn) is

treated as having effect from that date.

162   (1)  

This paragraph applies in relation to any gilt-edged securities issued before

20

6 April 1998 which—

(a)   

are securities the interest on which, if paid immediately before that

date, would have fallen to be paid after deduction of income tax, and

(b)   

are registered within the meaning of section 828 but are not securities

in relation to which any direction under section 50 of ICTA was

25

given before that date.

      (2)  

Chapter 5 of Part 14 has effect as if the appropriate person had made a

deduction at source application under section 828 in respect of the securities

so as to enable that application to have effect from (and including) that date.

      (3)  

In sub-paragraph (2) “the appropriate person” means—

30

(a)   

in the case of securities transferred before 6 April 1998 but after the

time when the balance was struck for a dividend on them falling due

on or after that date, the person who held the securities at the time

when the balance was struck,

(b)   

in any other case, the person holding the securities in question

35

immediately before 6 April 1998.

Unauthorised unit trusts: calculation of trustees’ income pool

163   (1)  

This paragraph applies for the purposes of section 876.

      (2)  

The amount of any trustees’ income pool as at the start of the tax year 2007-

08 is an amount equal to what would have been the trustees’ uncredited

40

surplus for the tax year 2007-08 apart from this Act had section 469(5A) to

(5D) of ICTA applied in relation to the trustees for the tax year 2007-08.

164   (1)  

This paragraph applies for the purposes of section 876 in its application to

any trustees if—

(a)   

the current tax year is a tax year subsequent to the tax year 2007-08,

45

 

 

Income Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations: general

658

 

(b)   

subsection (3) of section 876 does not apply, and

(c)   

the last tax year prior to the current tax year for which the trustees

were UK resident is a tax year prior to the tax year 2007-08.

      (2)  

The amount of the trustees’ income pool as at the start of the current tax year

is an amount equal to what would have been the trustees’ uncredited

5

surplus for the tax year 2007-08 apart from this Act had section 469(5A) to

(5D) of ICTA applied in relation to the trustees for the tax year 2007-08.

Non-resident landlords

165   (1)  

Sub-paragraph (2) applies to any references in the Taxation of Income from

Land (Non-residents) Regulations 1995 (S.I. 1995/2902) to payments to be

10

made to the Board in respect of tax that is or may become chargeable as the

income from a business of a non-resident (as defined in those regulations).

      (2)  

On and after 6 April 2007 those references are to be read as references to

income tax to be paid to the Commissioners for Her Majesty’s Revenue and

Customs in respect of non-resident landlord income (as defined in section

15

904(2)).

Interpretation

166        

Expressions used in this Part of this Schedule and in Part 14 have the same

meaning as they have in Part 14.

Part 15

20

Other provisions

Old references to surtax and standard rate tax

167        

The repeal by this Act of section 819 of ICTA has no effect in relation to any

instrument (of whatever nature), will or codicil made before the date on

which this Act comes into force.

25

Section 820 of ICTA

168        

Section 820 of ICTA (application of Income Tax Acts from year to year)

applies to this Act as if this Act were in force on the day before 6 April 2007.

Schedule 3

Section 964

 

Repeals and revocations

30

Part 1

Repeals and revocations: general

 

Reference

Extent of repeal or revocation

 
 

Finance Act 1950 (c. 15)

Sections 39 and 40.

 
 

Taxes Management Act 1970

In section 12AB(1)(a), sub-paragraph (iv) and

 

35

 

(c. 9)

the “and” immediately before it.

 
 

 

Income Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations: general

659

 
 

Reference

Extent of repeal or revocation

 
 

Taxes Management Act 1970

In section 46C(1)(b) and (3), the words “of the

 
 

(c. 9)—cont.

principal Act”.

 
  

Section 55(1)(c).

 
  

Section 98(4C).

 

5

  

In the first column of the Table in section 98—

 
  

(a)   

the entry relating to regulations under

 
  

section 42A of ICTA,

 
  

(b)   

the entry relating to regulations under

 
  

section 476(1) of ICTA,

 

10

  

(c)   

the entry relating to regulations under

 
  

section 477A(1) of ICTA,

 
  

(d)   

the entry relating to section 482(3) of

 
  

ICTA

 
  

(e)   

the entry relating to regulations under

 

15

  

section 482(11) of ICTA,

 
  

(f)   

the entry relating to section 483 of ICTA,

 
  

(g)   

the entry relating to regulations under

 
  

section 555(7) of ICTA,

 
  

(h)   

the entry relating to section 745(1) of

 

20

  

ICTA,

 
  

(i)   

the entry relating to paragraph 5(2) of

 
  

Schedule 15B to ICTA,

 
  

(j)   

the entry relating to regulations under

 
  

paragraph 11B(5) of Schedule 28B to

 

25

  

ICTA,

 
  

(k)   

the entry relating to section 86(12) of FA

 
  

1995, and

 
  

(l)   

the entry relating to regulations under

 
  

Schedule 33 to FA 2002.

 

30

 

 

Income Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations: general

660

 
 

Reference

Extent of repeal or revocation

 
 

Taxes Management Act 1970

In the second column of the Table in section

 
 

(c. 9)—cont.

98—

 
  

(a)   

the entry relating to regulations under

 
  

section 42A of ICTA,

 

5

  

(b)   

the entry relating to section 350(1) of

 
  

ICTA,

 
  

(c)   

the entry relating to regulations under

 
  

section 476(1) of ICTA,

 
  

(d)   

the entry relating to regulations under

 

10

  

section 477A(1) of ICTA,

 
  

(e)   

the entry relating to section 482(2) of

 
  

ICTA,

 
  

(f)   

the entry relating to regulations under

 
  

section 482(11) of ICTA,

 

15

  

(g)   

the entry relating to regulations under

 
  

section 555(7) of ICTA,

 
  

(h)   

the entry relating to paragraph 5(1) of

 
  

Schedule 15B to ICTA,

 
  

(i)   

the entry relating to Schedule 16 to

 

20

  

ICTA,

 
  

(j)   

the entry relating to regulations under

 
  

Schedule 33 to FA 2002, and

 
  

(k)   

the entry relating to regulations under

 
  

section 122 of FA 2006.

 

25

 

Finance Act 1971 (c. 68)

Section 21.

 
  

Schedule 3.

 
 

Income Tax (Prescribed

The whole Order.

 
 

Deposit-takers) (No.1) Order

  
 

(S.I. 1984/1801)

  

30

 

Income Tax (Composite Rate)

The whole Order.

 
 

(Prescribed Deposit-takers)

  
 

Order (S.I. 1985/1696)

  
 

Income and Corporation Taxes

Sections 1 to 4.

 
 

Act 1988 (c. 1)

Section 7(1).

 

35

  

In section 9(6), the words from the beginning to

 
  

“this Act; and”.

 
  

Section 42A.

 
  

Sections 50, 51 and 51AA.

 
  

In section 105(2), the words “or by virtue of

 

40

  

section 90(4) of the Finance Act 1995”.

 
  

Section 109A.

 
  

Section 117.

 
  

In section 118(2)—

 
  

(a)   

in the definition of “relevant accounting

 

45

  

period”, the words “(within the meaning

 
  

of section 117(2))”, and

 
  

(b)   

in the definition of “the relevant sum”,

 
  

the words “(within the meaning of

 
  

section 117(3))”.

 

50

 

 

Income Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations: general

661

 
 

Reference

Extent of repeal or revocation

 
 

Income and Corporation Taxes

In section 118ZC—

 
 

Act 1988 (c. 1)—cont.

(a)   

in subsection (2), the words “that section

 
  

and”, and

 
  

(b)   

subsection (5).

 

5

  

In section 118ZD(1), the words “117 or”.

 
  

Sections 118ZE to 118ZO.

 
  

In section 125—

 
  

(a)   

in subsection (1), the words “shall be

 
  

made without deduction of income tax

 

10

  

and”,

 
  

(b)   

in subsection (2)(b), the words “income

 
  

tax or”,

 
  

(c)   

in subsection (3), paragraph (d) and the

 
  

“or” immediately before it.

 

15

  

Section 214(1)(b).

 
  

In section 231AA—

 
  

(a)   

in subsection (1), the words “above or

 
  

section 397(1) of ITTOIA 2005”, and

 
  

(b)   

subsection (1A).

 

20

  

In section 231AB—

 
  

(a)   

in subsection (1), the words “above or

 
  

section 397(1) of ITTOIA 2005”, and

 
  

(b)   

subsection (1A).

 
  

Section 256(3).

 

25

  

Section 257BA(6).

 
  

Section 257BB(3A).

 
  

In section 265—

 
  

(a)   

in subsection (1), the words “from his

 
  

total income”, and

 

30

  

(b)   

subsection (3).

 
  

In section 266—

 
  

(a)   

in subsection (3), the words from “,

 
  

except” to “subsection (6) below”,

 
  

(b)   

subsections (6) and (6A),

 

35

  

(c)   

in subsection (8), the words “(subject to

 
  

section 278(3))”, and

 
  

(d)   

in subsection (13), the words “this

 
  

section and”.

 
  

Section 276.

 

40

  

Section 277.

 
  

In section 278—

 
  

(a)   

subsection (1), and

 
  

(b)   

in subsection (2), paragraphs (b) to (e)

 
  

and the “or” immediately before

 

45

  

paragraph (b).

 
  

Sections 282 to 282B.

 
  

Section 305A.

 
  

Section 320.

 
  

Section 323.

 

50

  

Section 332A.

 
  

Sections 334 to 336.

 
 

 

Income Tax Bill
Schedule 3 — Repeals and revocations
Part 1 — Repeals and revocations: general

662

 
 

Reference

Extent of repeal or revocation

 
 

Income and Corporation Taxes

In section 347A—

 
 

Act 1988 (c. 1)—cont.

(a)   

subsection (2A), and

 
  

(b)   

in subsection (6) the words “or (2A)”.

 
  

Sections 347B to 352.

 

5

  

In section 353—

 
  

(a)   

in subsection (1) the words “sections 359

 
  

to 368 of this Act and”,

 
  

(b)   

subsection (1B),

 
  

(c)   

in subsection (1E) the words “under this

 

10

  

section”, and

 
  

(d)   

subsections (1F) to (1H).

 
  

Sections 359 to 364.

 
  

In section 366(1)(c), the words from “(or” to

 
  

“income)”.

 

15

  

Section 367(2) to (4).

 
  

Section 368.

 
  

Chapter 1 of Part 10.

 
  

In section 397—

 
  

(a)   

subsection (1),

 

20

  

(b)   

in subsection (5), the definition of

 
  

“chargeable period” and in the definition

 
  

of “prior period of loss” the words

 
  

“years of assessment or”,

 
  

(c)   

in subsection (7), the words “the

 

25

  

calculation of the profits of a trade in

 
  

Part 2 of ITTOIA 2005 or to” and “, in

 
  

relation to a chargeable period of a

 
  

company,”, and

 
  

(d)   

in subsection (10), the words “from

 

30

  

income tax or from corporation tax”.

 
  

In section 398—

 
  

(a)   

the words “above or Chapter 11 of Part 4

 
  

of ITTOIA 2005 (transactions in

 
  

deposits)”, and

 

35

  

(b)   

in paragraph (a), the words “above or

 
  

that Chapter”.

 
  

In section 399(2)(a), the words “and that person

 
  

or one or more of the other partners was a

 
  

company”.

 

40

  

In section 458—

 
  

(a)   

in subsection (1), the words “and the

 
  

Income Tax Acts”,

 
  

(b)   

in subsection (2), the words “section 380

 
  

or”, and

 

45

  

(c)   

subsection (2)(b) and the “and”

 
  

immediately before it.

 
  

In section 459, the words “income tax and”.

 
  

In section 460(1), the words “income tax and”.

 
  

In section 461, in subsection (1) the words

 

50

  

“income tax and” and in subsection (4)(b) the

 
  

words “income tax or”.

 
 

 

 
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