House of Commons - Explanatory Note
Income Tax Bill - continued          House of Commons

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Schedule 3: Repeals and revocations

Part 1: Repeals and revocations: general

3156.     Part 1 contains general repeals and revocations of enactments, including some spent enactments.

Part 2: Repeals having effect in relation to shares issued after 5 April 2007

3157.     Part 2 contains repeals specific to EIS provisions. See the commentary on clause 967.

Schedule 4: Index of defined expressions

3158.     This Schedule provides an index of defined expressions used in this Bill. Nearly all of the definitions appear in this Bill, but a few are contained in other Acts.

FINANCIAL EFFECTS OF THE BILL

3159.     The Bill will not require any additions to previously planned expenditure. Revision of guidance for users and for staff will be undertaken as part and parcel of the process of improving such material and keeping it up to date in response to new legislation and other changes. The minor changes in the law in the Bill are expected to have negligible effect on tax revenues.

EFFECTS OF THE BILL ON PUBLIC SERVICE MANPOWER

3160.     The Bill will not require any increase in the number of staff in HMRC or other departments.

SUMMARY OF THE REGULATORY IMPACT ASSESSMENT

3161.     A regulatory impact assessment of the effects of the Bill is available at www.hmrc.gov.uk/ria/index.htm or from Basil Rajamanie, Tax Law Rewrite Project, HMRC, Room 826, Bush House, South West Wing, London WC2B 4RD (telephone 020 7438 7538).

3162.     In summary the Bill is expected to benefit three groups of people: tax practitioners, taxpayers and HMRC. The benefits can broadly be summarised as follows:

  • less time should have to be expended deciding what the law is, and fewer errors should be caused by misunderstanding of the law;

  • there should be fewer issues on which time and money has to be spent getting specialist advice; and

  • there should be fewer queries from clients to their advisers and from advisers or taxpayers to HMRC. In consequence there should be fewer discussions and disagreements with HMRC about the meaning of legislation and this should lead to less litigation.

3163.     In addition:

  • practitioners coming new to the legislation will find it easier to understand and learn; and

  • greater ease of use for practitioners could result in lower costs in the context both of compliance and advice.

3164.     There will be some one-off costs to business: there will be retraining costs for practitioners and commercial publishers, and software suppliers will need to update their products.

EUROPEAN CONVENTION ON HUMAN RIGHTS

3165.     Section 19 of the Human Rights Act 1998 requires the Minister in charge of a Bill in either House of Parliament to make a statement, before second reading, about the compatibility of the provisions of the Bill with the Convention rights (as defined in section 1 of that Act).

3166.     The Chancellor of the Exchequer has made the following statement:

In my view the provisions of the Income Tax Bill are compatible with the Convention rights.

3167.     The provisions of the Bill have been the subject of careful consideration in order to ensure that they are compatible with the Convention rights. The following provisions have received closest scrutiny. Articles referred to below are Articles of the Convention.

Clauses 45 and 46

3168.     Prior to 5 December 2005 this income tax reduction for couples was only available to married couples under provisions of Chapter 1 of Part 7 of ICTA. The right to this married couple's allowance, and the duty to undertake the actions necessary to ensure that the allowance was obtained, both belonged to the husband in the first instance (subject to rights concerning the transfer of part of the allowance to the wife).

3169.     The relevant provisions of Chapter 1 of Part 7 of ICTA were amended by the Tax and Civil Partnership Regulations 2005 which came into force on 5 December 2005. The amended sections have been rewritten in clauses 45 and 46.

3170.     Clauses 45 and 46 provide for a scheme which differs depending on the date of the marriage and additionally they make provision for civil partnerships. As regards marriages and civil partnerships between eligible couples taking place on or after 5 December 2005 the higher earner of the couple has the right to apply for the allowance (and is subject to other rules formerly pertaining to the husband in respect of married couple's allowance).

3171.     Marriages taking place before 5 December 2005 remain subject to the former rules relating to married couple's allowance. But there is now an opportunity for those married couples jointly to opt in to the new rules. This ensures that it is possible to disturb the status quo for existing marriages and claims but only where both parties consent.

3172.     The clauses, therefore, strike a balance between, on the one hand, the need to ensure that there is no unlawful discrimination (on grounds of gender) and, on the other, to protect existing administrative arrangements and the expectations of those persons who have hitherto been affected by them. The Minister has concluded that such an approach does not breach Article 14 (prohibition of discrimination) in conjunction with Article 1 Protocol 1 (protection of property).

Clauses 56 and 460

3173.     These clauses limit the availability of personal reliefs under Part 3 and Chapter 6 of Part 8 to UK residents and those non-UK residents who meet the conditions in clauses 56(3) and 460(3) respectively. The clauses rewrite section 278 of ICTA apart from subsection (2)(a) of that section.

3174.     The Bill does not rewrite section 278(2)(a) of ICTA. The effect of that provision is to confer entitlement to personal reliefs on non-resident Commonwealth citizens and EEA nationals. The reference to those citizens and nationals engages Article 14 (prohibition of discrimination), taken in conjunction with Article 1 Protocol 1 (protection of property), because it discriminates on grounds of nationality. There is no known objective justification for this discrimination. So it would not have been possible for a statement of compatibility to have been given for the Bill if it had rewritten section 278(2)(a) of ICTA.

3175.     The Bill does not change the existing law in relation to the entitlement of Commonwealth citizens and EEA nationals to personal reliefs. Schedule 1 amends section 278 of ICTA so as to leave undisturbed the entitlement of a non-UK resident Commonwealth citizen or EEA national to personal reliefs under Chapter 1 of Part 7 of ICTA.

3176.     The Bill also ensures that the discriminatory rule in section 278(2)(a) does not have effect on the provisions in the Bill providing for either blind person's allowance or married couple's allowance to be transferred between the husband and wife or civil partners concerned. This is described in the note about Change 7 in Annex 1.

3177.     The transitional provisions in Part 4 of Schedule 2 have the effect that this change will not affect existing claimants to these allowances for a period of two years after the Bill comes into force.

Part 12

3178.     The Bill rewrites a large number of measures which combat tax avoidance. The Minister has concluded that these are proportionate for the purposes of Article 1 Protocol 1 (protection of property). They are also compatible with the other Convention rights.

Clause 642

3179.     This provision ensures that the payment of tax, determined by the tribunal in accordance with clause 639, is not postponed or delayed. It does this by ensuring that an appellant cannot apply to the High Court for a stay of the determination of an earlier appeal to the tax tribunal, pending the outcome of an appeal to the High Court by way of case stated.

3180.     The appeal by way of case stated involves the determination of a public law matter. The Minister therefore concludes that Article 6 (right to a fair trial) does not apply. Assuming for these purposes that Article 1 Protocol 1 (protection of property) applies, the Minister considers that the measure is proportionate in its effect. That is because an appellant is permitted two appeals to a tax tribunal prior to making an appeal to the High Court. The appellant may make an application to postpone payment of the tax until the conclusion of any appeal to the tax tribunal. Furthermore, in accordance with section 1 of TMA, HMRC has a general managerial discretion whether to collect the tax prior to the High Court appeal, which enables it to address cases of exceptional hardship.

Clause 653

3181.     It has been unnecessary to decide whether the charge to tax imposed by this clause is ever capable of being "criminal in nature" for the purposes of Article 6 (right to a fair trial). That is because, if necessary, the provision is capable of being enforced in a manner that is compatible with Article 6.

Clauses 681, 682 and 704

3182.     The Minister has concluded that none of the disclosure obligations of representatives under these clauses breaches Article 14 (prohibition of discrimination) whether taken in conjunction with Article 1 Protocol 1 (protection of property) or Article 8 (right to respect for private life). Those Convention rights appear not to be engaged at all.

3183.     If Convention rights are engaged in respect of any distinction between the obligations of tax advisers and those of lawyers, there is an objective justification for that distinction derived from the nature of legal professional privilege.

Clause 762

3184.     Clause 762 rewrites section 334 of ICTA in part. It also makes a change in the law (Change 116 in Annex 116). Section 334 of ICTA provides that Commonwealth citizens and citizens of the Republic of Ireland are charged to income tax as if they were resident in the UK, if they had been ordinarily resident there and were absent from the UK only for the purposes of temporary residence abroad.

3185.     It is likely that there is no Article 14 (prohibition of discrimination) issue in respect of section 334 concerning discrimination on grounds of nationality in the taxation of those temporarily resident abroad. That is because the common law rules about residence for taxation purposes appear to have had the same effect as the rule in section 334 in all cases of temporary residence abroad.

3186.     Clause 762 nonetheless removes the apparent distinction which operates in section 334 against Commonwealth citizens and citizens of the Republic of Ireland. That is for the sake of clarity and simplicity and to remove any concern about the Convention rights. Clause 762 has the effect that the rule formerly set out in section 334 now applies to all taxpayers without distinction.

Clause 766

3187.     This clause provides for an exemption from UK residence rules for visiting forces (including forces and certain employees attached to allied headquarters) and civilian components of such forces. Certain categories of British nationals are, however, excluded from that exemption and fall to be taxed in the same way as British residents.

3188.     The Minister has concluded that this reference to nationality does not engage Article 14 (prohibition of discrimination) in conjunction with Article 1 Protocol 1 (protection of property). That is because clause 766 enacts provisions of a multilateral international agreement (the NATO Status of Forces Agreement). In that context the use of nationality as a connecting factor does not amount to discrimination.

Clauses 772, 773, 774 and 911

3189.     The Minister has concluded that the distinctions made in these clauses do not engage the Convention rights because the persons affected by the distinctions are not victims within the meaning of section 7(7) of the Human Rights Act 1998.

Part 2 of Schedule 2

3190.     The Bill makes minor changes to the law in the interests of simplification and to bring the legislation into line with current practice. These changes have either no practical effect or have only small effects. A small number may make small increases in the amount of tax payable for a small group of taxpayers. In addition, the wording of the Bill differs from the wording of the legislation it replaces in very many detailed particulars. Although the contents of the Bill have been examined with great care, it is still possible that some of these detailed changes will operate to change the law in ways that cannot now be foreseen. Some of the changes arising in this way may have effect so as to impose a charge to tax in respect of events that have taken place prior to the Bill coming into force.

3191.     Part 2 of Schedule 2, therefore, addresses the possibility of an unfair adverse effect upon a taxpayer, and possibly upon the taxpayer's Convention rights. A corresponding provision was included in ITTOIA. If there is an action or event prior to the coming into force of the Bill which has certain tax consequences, and the effect of the Bill is that those tax consequences change when the Bill comes into force, the taxpayer can opt that the tax consequences after the Bill comes into force are to be the same as they were under the "old" law.

TERRITORIAL EXTENT

3192.     The Bill extends to the whole of the UK.

3193.     Because the Sewel Convention provides that Westminster will not normally legislate with regard to devolved matters in Scotland without the consent of the Scottish Parliament, if amendments were introduced that related to such matters the consent of the Scottish Parliament would be sought for them.

COMMENCEMENT

3194.     The substantive provisions of this Bill will come into force on 6 April 2007. Clause 967 provides for it to have effect:

  • for the purposes of income tax, for the year 2007-08 and subsequent tax years; and

Change 1: Rates of tax: stock dividends and release of loans: clause 13     46

Change 2: Rates of tax: income of personal representative under section 466 of ITTOIA: clause 18     47

Change 3: Tax calculation: relief for deficiencies: amendment to section 539 of ITTOIA: clause 26 and Schedule 1 (section 539 of ITTOIA)     48

Change 4: Tax calculation: order in which tax reductions are allowed: clauses 27 and 28     49

Change 5: References to "officer of Revenue and Customs": clauses 35, 36, 37, 38, 39, 45, 46, 47, 48, 49, 403, 459, 508, 538, 542, 551, 554, 557, 558, 561, 625, 628, 629, 630, 631, 636, 639, 640, 672, 676, 681, 684, 845, 848, 849, 864, 877 and 903, Schedule 1 (sections 256A and 256B of TCGA and section 102 of FA 2004) and Schedule 2 Part 14 (deduction by deposit-takers: discretionary or accumulation settlements)     50

Change 6: Blind person's allowance: enactment of ESC A86: clause 38     51

Change 7: Personal reliefs: transfers between spouses or civil partners: clauses 39, 47, 48, 49, 51, 52 and 53, Schedule 1 (sections 257BA, 257BB and 265 of ICTA) and Schedule 2 Part 4 (personal reliefs)     52

Change 8: Married couple's allowance: calculation of income threshold: clause 58 and Schedule 1 (section 256A of ICTA)     53

Change 9: Trading losses: trades carried on "on a commercial basis": basis periods: clauses 66 and 74 and Schedule 2 Part 5 (trade loss relief against general income and early trade losses relief)     54

Change 10: Trading losses: trade leasing allowance given to individuals: alignment of individual's time commitment with period during which trade carried on: clause 75 and Schedule 2 Part 5 (sideways relief: trade leasing allowances given to individuals)     54

Change 11: Carry-forward of trading losses: business transferred to a company: deletion of rule specifying order in which loss is to be set off against sources of income: clause 86     56

Change 12: Carry back of terminal losses: clauses 89 and 90     56

Change 13: Trading losses given against capital gains: effect of provisions restricting relief: clauses 95, 104, 107, 109, 110, 113, 115 and 725 and Schedule 2 Part 5 (reliefs for limited and non-active partners and for members of LLPs not to exceed contribution to the firm or LLP and members of LLPs and non-active partners: carry forward of losses)     57

Change 14: Post-cessation expenditure: meaning of qualifying event: definition of statutory insolvency arrangement: clause 98     60

Change 15: Trading losses: restrictions: determination of contribution to the firm: clauses 104, 107, 110 and 113     61

Change 16: Trading losses: restrictions: contribution to the firm in place of contribution to the trade: clauses 104, 105, 106, 107, 108, 110, 111, 114, 725, 726, 727, 730, 733, 734, 735, 736, Schedule 2 Part 5 (restriction on reliefs for non-active partners: pre-10 February 2004 events and application of existing regulations under sections 114 and 735) and Schedule 2 Part 13 (individuals in partnership: recovery of excess relief and individuals claiming relief for film-related trading losses)     61

Change 17: Trading losses: restrictions: withdrawal of capital ignored where amounts charged to tax as profits of a trade: clauses 105 and 108     64

Change 18: Employment losses: claims for set-off of losses made by an office holder against general income: clause 128     65

Change 19: Employment losses: disapplication of restriction of set-off of capital allowances against general income: clause 128     65

Change 20: Share loss relief and community investment tax relief: omit the words "for full consideration": clauses 131 and 361     67

Change 21: Share loss relief: transfer of shares between spouses or civil partners: effect of earlier application of clause 135(3) or (4): clause 135     68

Change 22: Share loss relief: transfer of shares between spouses or civil partners: time at which spouses or civil partners are living together: clause 135     69

Change 23: Share loss relief: corresponding bonus shares: clauses 135 and 151     70

Change 24: Share loss relief: resolution of conflicting provisions: clauses 136 and 145 and Schedule 2 Part 6 (disposals of new shares and relief after an exchange of shares for shares in another company)     70

Change 25: Share loss relief: removal of mandatory requirement for pre-clearance of share exchange: clause 145, Schedule 1 (section 576J of ICTA) and Schedule 2 Part 6 (relief after an exchange of shares for shares in another company)     72

Change 26: Share loss relief: restrictions on the amount of relief available: clause 147     74

Change 27: Share loss relief: meaning of a mixed holding: clause 148     76

Change 28: Share loss relief: identification of which shares are disposed of: clause 148     77

Change 29: Share loss relief: identification of shares disposed of out of a mixed holding: clause 148     77

Change 30: Share loss relief: identification of shares disposed of where shares acquired on the same day include approved-scheme shares: clause 149     79

Change 31: Share loss relief: shares to which section 127 of TCGA applies: clause 149     81

Change 32: Share loss relief: nominees and bare trustees: clause 149     82

Change 33: Share loss relief: time of issue of shares transferred between spouses or civil partners: clause 150     83

Change 34: Share loss relief: time of issue of corresponding bonus shares: clause 150     84

Change 35: Share loss relief: time of disposal: clause 151     84

Change 36: EIS: claim in respect of less than the total number of shares, on which claimant is eligible for EIS relief, in a single issue: clauses 158, 201, 210, 218, 219, 220, 226, 227, 228 and 229     85

Change 37: EIS: limit is on the amount of relief in a year: clause 158     87

Change 38: EIS: individuals connected with issuing company: clause 166     88

Change 39: EIS: clarification of the definition of related person in section 291A(2)(i) of ICTA: clause 168     89

Change 40: EIS: carrying on qualifying business activity for four months is a condition of eligibility for EIS relief rather than a condition for claiming it: clause 176     89

Change 41: EIS, VCT and share loss relief: research and development (R&D) benefiting qualifying trade of a group company: clauses 137, 179, 181, 290 and 300, Schedule 1 (section 576B of ICTA) and Schedule 2 Part 6 (the trading requirement) and Part 8 (the trading requirement and meaning of "qualifying trade")     90

Change 42: EIS, VCT and share loss relief: meaning of "qualifying business activity" and the trading requirement: clauses 137, 179 and 181, Schedule 1 (section 576B of ICTA) and Schedule 2 Part 6 (the trading requirement)     93

Change 43: EIS, VCT and share loss relief: the trading requirement: clauses 137, 181, 194, 290 and 305, Schedule 1 (section 576B of ICTA) and Schedule 2 Parts 6 and 8 (excluded activities: leasing of ships)     96

Change 44: EIS and share loss relief: companies controlled by the issuing company must be its own qualifying subsidiaries: clauses 139 and 185, Schedule 1 (section 576D of ICTA) and Schedule 2 Part 6 (the control and independence requirement)     99

Change 45: EIS, VCT and share loss relief: excluded activities: wholesale and retail distribution: clauses 193 and 304 and Schedule 2 Parts 6 and 8 (excluded activities: wholesale and retail distribution)     101

Change 46: EIS and share loss relief: excluded activities: the meaning of trade in relation to the provision of services or facilities for another business: clause 199 and Schedule 2 Part 6 (excluded activities: provision of services or facilities for another business)     103

Change 47: EIS: HMRC to give notice of decisions on compliance certificates: clause 204     105

Change 48: EIS: "gross amount" of EIS relief used to determine whether maximum relief was obtained and adjustment where bonus shares issued: clauses 210, 220 and 229     106

Change 49: EIS: value received or repayment of share capital reduces EIS relief that was given for two separate tax years: clauses 219 and 228     107

Change 50: EIS: value received by other persons: prevent multiple reductions of EIS relief: clause 224     109

Change 51: EIS: repaying share capital of nominal value equal to the authorised minimum if eligible shares are issued before registrar's certificate: clause 230     110

Change 52: EIS: cases where assessment not to be made after disposal of all shares to which EIS relief is attributable: clause 238.     110

Change 53: EIS: Interest and Self Assessment: clause 239     111

Change 54: EIS: information provided by the issuing company and persons connected with the issuing company in respect of certain events: clause 241     115

Change 55: EIS: share transfers between spouses or civil partners: clause 245     116

Change 56: EIS, VCT and share loss relief: the meaning of "a company being in administration": clauses 252 and 331, Schedule 1 (section 312(2A) of ICTA and paragraph 11(10) of Schedule 5 to ITEPA) and Schedule 2 Parts 6 and 8 (meaning of company being "in administration")     117

Change 57: EIS: conditions to be met over a period: clause 257     119

Change 58: VCT: definition of eligible shares for VCT relief: clause 273 and Schedule 2 Part 8 (interpretation of Chapter 2)     120

Change 59: VCT: conditions relating to value of investments: clauses 278 and 285 and Schedule 2 Part 8 (conditions relating to value of investments)     121

Change 60: VCT: excess over the maximum qualifying amount: clause 287 and Schedule 2 Part 8 (the maximum qualifying investment requirement)     123

Change 61: VCT: the trading requirement and the carrying on of a qualifying trade requirement: clauses 290, 291 and Schedule 2 Part 8 (the trading requirement and the carrying on of a qualifying activity requirement)     125

Change 62: VCT: trades whose carrying on by other persons prevents the relevant holding being a qualifying holding: clause 294 and Schedule 2 Part 8 (the relevant company to carry on the relevant qualifying activity requirement)     128

Change 63: VCT: preparing to carry on research and development (R&D) is not treated as preparing to carry on a qualifying trade: clause 300 and Schedule 2 Part 8 (meaning of "qualifying trade")     129

Change 64: VCT: excluded activities: the meaning of trade in relation to the provision of services or facilities for another business: clause 310 and Schedule 2 Part 8 (excluded activities: provision of services or facilities for another business)     131

Change 65: VCT: meaning of "company" and "shares" in Part 6: clause 332 and Schedule 2 Part 8 (meaning of "company", "shares" and "research and development" in Part 6)     133

Change 66: Interest relief: loans partly meeting requirements: clause 386     135

Change 67: Interest relief: exclusion of double relief: finality: clause 387     135

Change 68: Interest relief: loan to buy plant or machinery for partnership use: clauses 388 and 389     136

Change 69: Interest relief: loan to buy machinery or plant: clauses 388 and 390     138

Change 70: Interest relief: loan to invest in partnership: meaning of "member of partnership": clauses 399 and 409     138

Change 71: Interest relief: loan to invest in co-operative: clause 401 and Schedule 2 Part 9 (interest: loans for investing in co-operatives)     139

Change 72: Interest relief: loan to pay inheritance tax: clause 403     139

Change 73: Interest relief: omission of section 368(2) of ICTA: clause 404     140

Change 74: Interest relief: recovered capital: clause 406     141

Change 75: Interest relief: partnership changes and business successions: clauses 409 and 410     142

Change 76: Gift aid: a qualifying donation cannot be a deductible expense in computing income from any source: clause 416     143

Change 77: Gift aid: gifts and benefits linked to periods of less than 12 months: priority between methods of calculating annualised amounts of gifts and benefits: clause 419 and Schedule 2 Part 9 (gift aid: restrictions on associated benefits)     144

Change 78: Gift aid: omission of section 25(9)(c) of FA 1990: clauses 423 and 425     145

Change 79: Gift aid etc: removal of redundant references to certain charities: clauses 430 and 446 and Schedule 1 (section 587B of ICTA and sections 108(4), 620(5) and 628(6) of ITTOIA)     145

Change 80: Gifts of land to charities: qualifying interests in land held jointly: clauses 442 and 443 and Schedule 1 (sections 587BA and 587C(2) and (3) of ICTA)     146

Change 81: Charges on income: general approach: clauses 24, 89, 425, 448, 449, 505, 833, 834, 836, 875, 879, 897 and 912 and Schedule 1 (sections 51 and 272 of ITTOIA)     147

Change 82: Charges on income: when payments are made "out of" profits or gains brought into charge to income tax: clauses 450, 505, 958 and 959     153

Change 83: Relief for payments to trade unions and police organisations: claims requirement: clauses 457 and 458     155

Change 84: Limits to relief for payments to trade unions and police organisations and payments for benefit of family members: clauses 457, 458 and 459     155

Change 85: Settlements: receipts not charged at special trust rates: clauses 481 and 806     156

Change 86: Settlements: taxation of amounts taxable under the accrued income scheme: clause 482 and Schedule 1 (section 720 of ICTA)     157

Change 87: Settlements: trustees' expenses set against accumulated or discretionary income when incurred: clauses 484 and 485 and Schedule 2 Part 10 (trustees' expenses to be set against trustees' trust rate income)     158

Change 88: Settlements: grossing up of trustees' expenses set against accumulated or discretionary income: clause 486     159

Change 89: Settlements: discretionary payments: provisions applying only to UK resident trustees: clauses 493 and 497 and Schedule 2 Part 10 (discretionary payments: trustees' tax pool)     159

Change 90: Settlements: tax statements for settlors: clause 495     160

Change 91: Settlements: trustees' expenses reducing beneficiary's income: clauses 500, 503 and Schedule 1 (section 646A of ITTOIA)     161

Change 92: Charitable trusts: exemption for adjustment income and post-cessation receipts of certain trades and property businesses: clauses 524, 525, 526, 531 and 539     162

Change 93: Charitable trusts: mixed trades: requiring an apportionment to be just and reasonable: clause 525     163

Change 94: Charitable trusts: limit on exemption for profits etc of small-scale trades and certain miscellaneous income: clauses 526 and 528     164

Change 95: Charitable trusts: exemption for profits of fund raising events: clauses 529 and 539     165

Change 96: Charitable trusts: exemption for income from intellectual property etc: clause 536     166

Change 97: Charitable trusts: exemption for income from estates in administration: clauses 537 and 539     166

Change 98: Charitable trusts: meaning of non-charitable expenditure: clauses 543, 544 and 545     167

Change 99: Charitable trusts: tax year in which certain expenditure treated as incurred: clause 546     168

Change 100: Charitable trusts: approved charitable investments: clauses 558, 559, 560 and 955     169

Change 101: Transactions in securities, transfer of assets abroad: power to obtain information: minimum time to respond: clauses 636 and 681     172

Change 102: Transactions in securities: statement of case by tribunal for opinion of court: clause 640 and Schedule 2 Part 13 (transactions in securities: statement of case by tribunal for opinion of High Court or Court of Session)     173

Change 103: Transfer of assets abroad: meaning of "associated operation": clause 652     174

Change 104: Transfer of assets abroad: cessation of entitlement to receive capital sum: clause 662     174

Change 105: Transfer of assets abroad: transferors not subject to charge where benefit received: clause 665     175

Change 106: Transfer of assets abroad: calculation of liability of non-transferors receiving benefit: clause 666     176

Change 107: Transfer of assets abroad, transactions in land and sales of occupation income: power to obtain information: "reasonably require": clauses 681, 704 and 721     178

Change 108: Transactions in land and sales of income from occupation: application to non-UK residents: clauses 689, 692 and 711     178

Change 109: Transactions in land: person liable: provider of opportunity to realise a gain: clause 692     179

Change 110: Transactions in land and sales of occupation income: income treated as the highest part of the taxpayer's income: clauses 701 and 719     180

Change 111: Transactions in land: clearance procedure: clause 703     181

Change 112: Sales of occupation income: restriction on exemption for sales as going concerns: meaning of "income or receipts": clause 718     182

Change 113: Limit on liability to income tax of non-UK resident companies: omission of disregard of any relief to which a company is entitled by virtue of arrangements having effect under section 788 of ICTA: clause 748     183

Change 114: Limit on liability to income tax of non-UK resident companies: substitution of references to income for references to chargeable profits in paragraph 4(3) and (5) of Schedule 26 to FA 2003: clauses 754 and 756     185

Change 115: Limit on liability to income tax of non-UK residents: inclusion of stock dividends from UK resident companies as an additional category of disregarded savings and investment income: clause 758     186

Change 116: Occasional residence abroad: omission of limitation to Commonwealth citizens and citizens of the Republic of Ireland: clause 762     186

Change 117: Individuals in the United Kingdom for temporary purpose: substitution of 183 days for six months: clauses 764 and 765     188

Change 118: Jointly held property and earned income: clause 769 and Schedule 1 (section 189 of FA 2004)     189

Change 119: Deduction of tax: deposit-takers and building societies: enactment of regulations: clauses 785, 786, 804, 805, 879, 880, Schedule 1 (section 17 of TMA and Schedule 2 to FA 2005) and Schedule 2 Part 14 (deduction by deposit-takers: discretionary or accumulation settlements)     191

Change 120: Deduction of tax: deposit-takers and building societies: definition of relevant investment: clauses 784, 789, 791, 792 and 805     194

Change 121: Deduction of tax: deposit-takers and building societies: deduction by reference to beneficiary of payments: clause 789     196

Change 122: Deduction of tax: deposit-takers and building societies: investments to be treated as being or as not being relevant investments: clause 790     197

Change 123: Deduction of tax: deposit-takers and building societies: declarations of non-UK residence: clauses 791, 792, 793 and 794     198

Change 124: Deduction of tax: deposit-takers and building societies: declarations of non-UK residence: Scottish partnerships: clauses 792 and 794     199

Change 125: Deduction of tax: deposit-takers and building societies: inspection of declarations: clause 795     201

Change 126: Deduction of tax: deposit-takers and building societies: qualifying deposit rights: clauses 797 and 822     202

Change 127: Deduction of tax: interest paid by building societies: clauses 807 and 808     202

Change 128: Enactment of the European Investment Bank (Designated International Organisation) Order 1996 (SI 1996/1179): clauses 812, 925 and Schedule 1 (section 840A of ICTA)     204

Change 129: Deduction of tax: statutory interest: clause 821     205

Change 130: Deduction of tax: payments of UK public revenue dividends: application for deduction of tax: clause 828     205

Change 131: Charges on income: year in which payments taken into account: rates for deduction of tax: clauses 833, 834, 835 and 836     206

Change 132: Charges on income: no deduction of tax from certain patent royalty payments: clause 836     207

Change 133: Deduction of tax: scope of duty to deduct from certain royalties: clauses 836 and 839     208

Change 134: Deduction of tax: manufactured overseas dividends: periods for accounting for tax: clause 858     209

Change 135: Deduction of tax: collection: deposit-takers, building societies and certain companies: building society return periods: clause 880     210

Change 136: Deduction of tax: collection: deposit-takers, building societies and certain companies: returns: clauses 882, 885, 886, 890 and 891     210

Change 137: Deduction of tax: collection: deposit-takers, building societies and certain companies: payments made otherwise than in an accounting period: clause 883     211

Change 138: Deduction of tax: collection: deposit-takers, building societies and certain companies: payer's duty to deliver amended return: clause 891     211

Change 139: Deduction of tax: collection: deposit-takers, building societies and certain companies: power to make regulations modifying this Chapter: clause 895     212

Change 140: Deduction of tax: removal of charge to tax: clauses 872, 879, 896, 897 and 904     213

Change 141: Deduction of tax: manufactured interest on UK securities: tax statements: clause 908     214

Change 142: Deduction of tax: meaning of "qualifying certificate of deposit" and "qualifying uncertificated eligible debt security unit": clauses 919 and 920     214

Change 143: Interpretation: definition of "personal representatives" for the purposes of the Income Tax Acts: clause 923     215

Change 144: Interpretation: adopted children: clause 923 and Schedule 1 (section 832 of ICTA)     219

Change 145: Interpretation: references to Scottish and Northern Ireland legislation: clauses 66, 114, 532, 536, 558, 735, 924 and 952     220

Change 146: Tax calculation: highest part of income: priority between items specified in section 833(3) of ICTA: clause 946     221

Change 147: Charges on income etc: calculation of modified net income: clause 958     222

Change 148: Double relief for interest payments: repeal of section 368 of ICTA in relation to relief remaining under section 353 of ICTA: Schedule 1 (section 368 of ICTA)     223

Change 149: Deduction of tax: visiting performers: Schedule 1 (section 556 of ICTA and section 13 of ITTOIA)     224

Change 150: Old double taxation relief arrangements: references to surtax: Schedule 1 (section 789 of ICTA)     225

Change 151: Tax calculation: recovery of excess double taxation relief: Schedule 1 (section 804 of ICTA and paragraph 11 of Schedule 20 to FA 1994)     226

Change 152: Inclusion of civil partners in section 37A of TMA: Schedule 1 (section 37A of TMA)     226

Change 153: Loss relief: claims for set-off of trading losses, employment losses and post-cessation expenditure against capital gains: Schedule 1 (sections 261B to 261E of TCGA)     227

Change 154: Deduction of tax: visiting performers: Schedule 1 (section 48 of ITEPA)     227

Change 155: Estate income: treatment of payments to beneficiaries: Schedule 1 (section 680A of ITTOIA)     228

 
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