Income Tax Bill
xx
438
Market value of qualifying investments
439
Meaning of “disposal-related obligation”
440
Meaning and amount of “disposal-related liability”
Special provisions about qualifying interests in land
441
Certificate required from charity
442
Qualifying interests in land held jointly
443
Calculation of relievable amount where joint disposal of interest in land
444
Disqualifying events
Supplementary
445
Prohibition against double relief
446
“Charity” to include exempt bodies
Chapter 4
Annual payments and patent royalties
447
Overview of Chapter
448
Relief for individuals
449
Relief for other persons
450
Other persons: payments ineligible for relief
451
Special rule for persons affected by section 733 of ICTA
452
The gross amount of a payment
Chapter 5
Qualifying maintenance payments
453
Tax reduction for qualifying maintenance payments
454
Meaning of “qualifying maintenance payment”
455
Child support maintenance payments
456
Payments under orders for recovery of benefit etc
Chapter 6
Miscellaneous other reliefs
Payments for life insurance etc
457
Payments to trade unions
458
Payments to police organisations
459
Payments for benefit of family members
460
Residence etc of claimants
Patent royalty receipts
461
Spreading of patent royalty receipts
xxi
Part 9
Special rules about settlements and trustees
Chapter 1
Introduction
462
Overview of Part
463
Interpretation of Part
464
Scottish trusts
Chapter 2
General provision about settlements and trustees
Overview
465
Overview of Chapter and interpretation
Settled property
466
Meaning of “settled property” etc
Settlors
467
Meaning of “settlor” etc
468
Meaning of “disposable property”
469
Person ceasing to be a settlor
470
Transfers between settlements
471
Identification of settlor following transfer covered by section 470
472
Settlor where property becomes settled because of variation of will etc
473
Deceased person as settlor where variation of will etc
Trustees
474
Trustees of settlement to be treated as a single and distinct person
475
Residence of trustees
476
How to work out whether settlor meets condition C
Sub-funds
477
Sub-fund elections under Schedule 4ZA to TCGA 1992
Regulations
478
References to settled property etc in regulations
Chapter 3
Special rates for trustees’ income
479
Trustees’ accumulated or discretionary income to be charged at special rates
480
Meaning of “accumulated or discretionary income”
xxii
481
Other amounts to be charged at special rates for trustees
482
Types of amount to be charged at special rates for trustees
483
Sums paid by personal representatives to trustees
Trustees’ expenses and special rates for trustees
484
Trustees’ expenses to be set against trustees’ trust rate income
485
Carry forward of unused expenses
486
How allowable expenses are to be set against trust rate income
487
Non-UK resident trustees
Share incentive plans
488
Application of section 479 to trustees of approved share incentive plans
489
“The applicable period” in relation to shares
490
Interpretation of Chapter
Trustees’ first slice of trust rate income
491
Special rates not to apply to first slice of trustees’ trust rate income
492
Cases where settlor has made more than one settlement
Chapter 7
Discretionary payments
493
Discretionary payments by trustees
494
Grossing up of discretionary payment and payment of income tax
495
Statement about deduction of income tax
496
Income tax charged on trustees
497
Calculation of trustees’ tax pool
498
Types of income tax for the purposes of section 497
Chapter 8
Trustees’ expenses and beneficiary’s income
499
Application of Chapter
500
Restrictions on use of trustees’ expenses to reduce the beneficiary’s income
501
Non-UK resident beneficiaries
502
Meaning of “untaxed income” in section 501
503
How beneficiary’s income is reduced
Chapter 9
Unauthorised unit trusts
504
Treatment of income of unauthorised unit trust
xxiii
505
Relief for trustees of unauthorised unit trust
506
Special rules for trustees affected by section 733 of ICTA
Chapter 10
Heritage maintenance settlements
507
Trustees’ election in respect of income etc
508
Election by trustees
509
Change of circumstances during a tax year
Absence of election and income treated as income of settlor: special rules
510
Sums applied for property maintenance purposes
511
Prevention of double taxation: reimbursement of settlor
Application of property for non-heritage purposes: charge to tax
512
Charge to tax on some settlements
513
Income charged
514
Persons liable
515
Rate of tax
516
Transfer of property between settlements
517
Exemption for income treated as income of settlor
Part 10
Special rules about charitable trusts etc
518
519
Meaning of “charitable trust”
Gifts and other payments
520
Gifts entitling donor to gift aid relief: income tax treated as paid
521
Gifts entitling donor to gift aid relief: income tax liability and exemption
522
Gifts of money from companies: income tax liability and exemption
523
Payments from other charities: income tax liability and exemption
Other exemptions
524
Exemption for profits etc of charitable trades
525
Meaning of “charitable trade”
526
Exemption for profits etc of small-scale trades
527
Exemption from charges under provisions to which section 950 applies
528
Condition as to trading and miscellaneous incoming resources
529
Exemption for profits from fund-raising events
xxiv
530
Exemption for profits from lotteries
531
Exemption for property income etc
532
Exemption for savings and investment income
533
Exemption for public revenue dividends
534
Exemption for transactions in deposits
535
Exemption for offshore income gains
536
Exemption for certain miscellaneous income
537
Exemption for income from estates in administration
Claims
538
Requirement to make claim
Restrictions on exemptions
539
540
The non-exempt amount
541
Attributing income to the non-exempt amount
542
How income is attributed to the non-exempt amount
Non-charitable expenditure
543
Meaning of “non-charitable expenditure”
544
Section 543: supplementary
545
Section 543(1)(f): meaning of expenditure
546
Section 543(1)(f): tax year in which certain expenditure treated as incurred
547
Section 543(1)(f): payment to body outside the UK
548
Section 543(1)(i) and (j): investments and loans
Substantial donor transactions
549
Transactions with substantial donors
550
Meaning of “relievable gift”
551
Non-charitable expenditure in substantial donor transactions
552
Adjustment if section 551(1) and (2) applied to single transaction
553
Section 551: certain payments and benefits to be ignored
554
Transactions: exceptions
555
Donors: exceptions
556
Connected charities
557
Substantial donor transactions: supplementary
Approved charitable investments and loans
558
Approved charitable investments
559
Securities which are approved charitable investments
560
Conditions to be met for some securities
561
Approved charitable loans
Carry back of excess non-charitable expenditure
562
Excess expenditure treated as non-charitable expenditure of earlier years
563
Rules for attributing excess expenditure to earlier years
564
Adjustments in consequence of section 562
xxv
Part 11
Manufactured payments and repos
565
566
Meaning of “UK shares” and “UK securities”
567
Meaning of “overseas securities” and “overseas dividend”
568
Meaning of “stock lending arrangement”
569
Meaning of “repo”
570
Meaning of “buying back” securities etc
571
Meaning of “related” agreements
Manufactured payments
572
Manufactured dividends on UK shares
573
574
Allowable deductions: matching
575
Allowable deductions: restriction on double-counting
576
Manufactured dividends on UK shares: Real Estate Investment Trusts
577
Statements about manufactured dividends
Manufactured interest on UK securities
578
579
580
Allowable deductions: restriction on double counting
Manufactured overseas dividends
581
582
Powers about manufactured overseas dividends
Special cases
583
Manufactured payments exceeding underlying payments
584
Manufactured payments less than underlying payments
585
Power to deal with other special cases
General regulation-making powers
586
Powers about administrative provisions
587
Power for manufactured payments to be eligible for relief
588
Regulation-making powers: general
xxvi
Interpretation
589
Meaning of “gross amount”: interest and manufactured overseas dividends
590
Meaning of “relevant withholding tax”
591
Interpretation of other terms used in Chapter
Tax credits: stock lending arrangements and repos
Stock lending arrangements
592
No tax credits for borrower under stock lending arrangement
Repos
593
No tax credits for interim holder under repo
594
No tax credits for original owner under repo
595
Meaning of “manufactured dividend”
Deemed manufactured payments
596
Deemed manufactured payments: stock lending arrangements
597
Deemed interest: cash collateral under stock lending arrangements
598
Cash collateral under stock lending arrangements: supplementary
599
Sections 597 and 598: quasi-stock lending arrangements and quasi-cash
collateral
600
Meaning of “quasi-stock lending arrangements” and “quasi-cash collateral”
601
Repo cases in which deeming rules apply
602
Deemed manufactured payments: repos
603
Deemed deductions of tax
604
Deemed increase in repurchase price: price differences under repos
605
Deemed increase in repurchase price: other income tax purposes
606
Price differences under repos
Main tax treatment
607
Treatment of price differences under repos