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
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
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
647
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
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
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
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
681
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
685
686
Meaning of disposing of land
687
Priority of other income tax provisions
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
705
Chapter 4
Sales of occupation income
706
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
xxxi
713
714
715
Meaning of “other person”
716
Exemption for sales of going concerns
717
718
Restriction on exemption: sales of future earnings
719
720
721
722
Minor definitions
Chapter 5
Avoidance involving trading losses
723
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
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
Limits on liability to income tax of non-UK residents
743
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 investment manager conditions
751
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
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
xxxiii
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
Jointly held property
769
770
Jointly held property: declarations of unequal beneficial interests
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
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
Deduction by deposit-takers and building societies
783