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House of Commons

Session 2006 - 07 Internet Publications Other Bills before Parliament

Income Tax Bill

Income Tax Bill xxvii
608    Exceptions to section 607
Additional tax treatment
609    Additional income tax consequences of price differences
Interpretation
610    Repurchase price in deemed manufactured payment case
Power to modify
611    Power to modify Chapter in non-arm’s length case
Chapter 6
Powers to modify repo provisions
612    Non-standard repo cases
613    Redemption arrangements
614    Sections 612 and 613: supplementary
Part 12
Tax avoidance
Chapter 1
Transactions in securities
Introduction
615    Overview of Chapter
616    Meaning of “income tax advantage”
Person liable to counteraction of income tax advantages
617    Person liable to counteraction of income tax advantage
618    Exception where no tax avoidance object shown
Circumstances in which income tax advantages obtained or obtainable
619    Abnormal dividends used for exemptions or reliefs (circumstance A)
620    Deductions from profits obtained following distribution or dealings
(circumstance B)
621    Receipt of consideration representing company’s assets, future receipts or
trading stock (circumstance C)
622    Receipt of consideration in connection with relevant company distribution
(circumstance D)
623    Receipt of assets of relevant company (circumstance E)
624    Meaning of “relevant company” in sections 622 and 623
625    Abnormal dividends: general
626    Abnormal dividends: the excessive return condition
627    Abnormal dividends: the excessive accrual condition
Income Tax Bill xxviii
Procedure for counteraction of income tax advantages
628    Preliminary notification that section 617 may apply
629    Opposed notifications: statutory declarations
630    Opposed notifications: determinations by tribunal
631    Counteraction notices
632    Limit on amount assessed in section 622 and 623 cases
633    Timing of assessments in section 623 cases
Clearance procedure and information powers
634    Application for clearance of transactions
635    Effect of clearance notification under section 634
636    Power to obtain information
The tribunal
637    The tribunal
Appeals
638    Appeals against counteraction notices
639    Rehearing by tribunal of appeal against counteraction notice
640    Statement of case by tribunal for opinion of High Court or Court of Session
641    Cases before High Court or Court of Session
642    Effect of appeals against tribunal’s determination under section 639
643    Appeals from High Court or Court of Session
644    Proceedings in Northern Ireland
Supplementary
645    Application of Chapter where individual within section 617 dies
646    Interpretation of Chapter
Chapter 2
Transfer of assets abroad
Introduction
647    Overview of Chapter
648    Meaning of “relevant transaction”
649    Meaning of “relevant transfer” and “transfer”
650    Meaning of “assets” etc
651    Meaning of “person abroad” etc
652    Meaning of “associated operation”
Charge where power to enjoy income
653    Charge to tax on income treated as arising under section 654
654    Individuals with power to enjoy income as a result of relevant transactions
655    When an individual has power to enjoy income of person abroad
656    The enjoyment conditions
657    Special rules where benefit provided out of income of person abroad
658    Reduction in amount charged where controlled foreign company involved
Income Tax Bill xxix
659    Non-domiciled individuals
Charge where capital sums received
660    Charge to tax on income treated as arising under section 661
661    Individuals receiving capital sums as a result of relevant transactions
662    The capital receipt conditions
663    Non-domiciled individuals
Charge where benefit received
664    Charge to tax on income treated as arising under section 665
665    Non-transferors receiving a benefit as a result of relevant transactions
666    Income charged under section 664
667    Reduction in amount charged: previous capital gains tax charge
668    Non-domiciled individuals
Exemptions: no tax avoidance purpose or genuine commercial transaction
669    Exemptions: introduction
670    Exemption: all relevant transactions post-4 December 2005 transactions
671    Meaning of “commercial transaction”
672    Exemption: all relevant transactions pre-5 December 2005 transactions
673    Exemption: relevant transactions include both pre-5 December 2005 and post-
4 December 2005 transactions
674    Application of section 675 (partial exemption)
675    Partial exemption where later associated operations fail conditions
General
676    No duplication of charges
677    Meaning of taking income into account in charging income tax for section 676
678    Rates of tax applicable to income charged under sections 653 and 660 etc
679    Deductions and reliefs where individual charged under section 653 or 660
680    Amounts corresponding to accrued income scheme profits and related
interest
Supplementary
681    Power to obtain information
682    Restrictions on particulars to be provided by solicitors
683    Restrictions on particulars to be provided by banks
684    Special Commissioners’ jurisdiction on appeals
Chapter 3
Transactions in land
Introduction
685    Overview of Chapter
686    Meaning of disposing of land
687    Priority of other income tax provisions
Income Tax Bill xxx
Charge on gains from transactions in land
688    Charge to tax on gains from transactions in land
689    Income treated as arising when gains obtained from some land disposals
690    Person obtaining gain
691    Income charged
692    Person liable
693    Method of calculating gain
Further provisions relevant to the charge
694    Transactions, arrangements, sales and realisations relevant for Chapter
695    Tracing value
696    Meaning of “another person”
697    Valuations and apportionments
Exemptions
698    Exemption: gain attributable to period before intention to develop formed
699    Exemption: disposals of shares in companies holding land as trading stock
700    Exemption: private residences
Recovery of tax
701    Recovery of tax where consideration receivable by person not assessed
702    Recovery of tax: certificates of tax paid etc
Clearances and power to obtain information
703    Clearance procedure
704    Power to obtain information
Interpretation
705    Interpretation of Chapter
Chapter 4
Sales of occupation income
Introduction
706    Overview of Chapter
707    Meaning of “occupation”
708    Priority of other tax provisions
Charge on sale of occupation income
709    Charge to tax on sale of occupation income
710    Conditions for sections 711 and 712 to apply
711    Income arising where capital amount other than derivative property or right
obtained
712    Income arising where derivative property or right obtained
Income Tax Bill xxxi
Further provisions relevant to the charge
713    Transactions, arrangements, sales and realisations relevant for Chapter
714    Tracing value
715    Meaning of “other person”
716    Valuations and apportionments
Exemption for sales of going concerns
717    Exemption for sales of going concerns
718    Restriction on exemption: sales of future earnings
Recovery of tax
719    Recovery of tax where consideration receivable by person not assessed
720    Recovery of tax: certificates of tax paid etc
Power to obtain information
721    Power to obtain information
Interpretation
722    Minor definitions
Chapter 5
Avoidance involving trading losses
Introduction
723    Overview of Chapter
Individuals in partnership: recovery of excess relief
724    Charge to tax on income treated as received under section 725
725    Partners claiming excess sideways or capital gains relief
726    Calculating the amount of income treated as received
727    Meaning of “the total amount of trade losses claimed” etc
728    Meaning of “post-1 December 2004 loss”
Individuals claiming relief for film-related trading losses
729    Charge to tax on income treated as received under section 730
730    Individuals claiming sideways or capital gains relief for film-related losses
731    Meaning of “non-taxable consideration” etc
732    Meaning of “disposal of a right of the individual to profits” etc
733    Meaning of “film-related losses” etc
734    Meaning of “capital contribution”
735    Exclusion of amounts in calculating capital contribution by a partner
736    Prohibition against double counting
Individuals in partnership claiming relief for licence-related trading losses
737    Charge to tax on income treated as received under section 738
Income Tax Bill xxxii
738    Partners claiming relief for licence-related trading losses
739    Calculation of amount of income treated as received by the individual
740    Supplementary provision relating to calculation in section 739
741    Meaning of “disposal of the licence” etc
742    Other definitions
Part 13
Income tax liability: miscellaneous rules
Chapter 1
Limits on liability to income tax of non-UK residents
Introduction
743    Overview of Chapter
Limit for non-UK resident individuals, trustees etc
744    Limit on liability to income tax of non-UK residents
745    Case where limit not to apply
746    Meaning of “disregarded income”
747    Meaning of “disregarded transaction income”
Limit for non-UK resident companies
748    Limit on liability to income tax of non-UK resident companies
749    Meaning of “disregarded company income”
The independent broker conditions
750    The independent broker conditions
The independent investment manager conditions
751    The independent investment manager conditions
752    Investment managers: the 20% rule
753    Meaning of “qualifying period”
754    Meaning of “relevant disregarded income”
755    Meaning of “beneficial entitlement”
756    Treatment of transactions where requirements of 20% rule not met
757    Application of 20% rule to collective investment schemes
Supplementary
758    Meaning of “disregarded savings and investment income”
759    Meaning of “disregarded annual payments”
760    Meaning of “investment manager” and “investment transaction”
761    Transactions through brokers and investment managers
Income Tax Bill xxxiii
Chapter 2
Residence
762    Residence of individuals temporarily abroad
763    Residence of individuals working abroad
764    Foreign income of individuals in the United Kingdom for temporary purpose
765    Employment income of individuals in the United Kingdom for temporary
purpose
766    Visiting forces and staff of designated allied headquarters
767    Residence of personal representatives
768    Residence rules for trustees and companies
Chapter 3
Jointly held property
769    Jointly held property
770    Jointly held property: declarations of unequal beneficial interests
Chapter 4
Other miscellaneous rules
771    Local authorities and local authority associations
772    Issue departments of the Reserve Bank of India and the State Bank of Pakistan
773    Government securities held by non-UK resident central banks
774    Official agents of Commonwealth countries etc
775    European Economic Interest Groupings
776    Restriction of deductions for annual payments
777    Letters patent etc: exempting provisions
778    Extra return to be treated as interest etc
779    Interpretation of section 778
Part 14
Deduction of income tax at source
Chapter 1
Introduction
780    Overview of Part
781    Income tax deducted at source treated as income tax paid by recipient
782    Interaction with other Income Tax Acts provisions
Chapter 2
Deduction by deposit-takers and building societies
Introduction
783    Overview of Chapter

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