|
| |
|
465 | Omit sections 126 to 130 (individuals in partnership: exit charge). |
| |
466 | In section 155(6)(a) and (b) (persons by whom scheme may be established: |
| |
supplementary) for “section 840A(1)(b) of ICTA” substitute “section |
| |
| |
467 | In section 161 (meaning of “payment” etc) for subsection (8) substitute— |
| 5 |
“(8) | For the purposes of this section whether a person is connected with |
| |
another person is determined in accordance with section 993 of ITA |
| |
| |
468 (1) | Amend section 162 (meaning of “loan”) as follows. |
| |
(2) | In subsection (2)(a) for “section 841 of ICTA” substitute “section 1005 of ITA |
| 10 |
| |
(3) | For subsection (6) substitute— |
| |
“(6) | For the purposes of this section whether a person is connected with |
| |
another person is determined in accordance with section 993 of ITA |
| |
| 15 |
469 | In section 172A (surrender) for subsection (11) substitute— |
| |
“(11) | For the purposes of this section whether a person is connected with |
| |
another person is determined in accordance with section 993 of ITA |
| |
| |
470 | In section 172B (increase in rights of connected person on death) for |
| 20 |
subsection (9) substitute— |
| |
“(9) | For the purposes of this section whether a person is connected with |
| |
another person is determined in accordance with section 993 of ITA |
| |
| |
471 | In section 172C (allocation of unallocated employer contributions) for |
| 25 |
subsection (7) substitute— |
| |
“(7) | For the purposes of this section whether a person is connected with |
| |
another person is determined in accordance with section 993 of ITA |
| |
| |
472 | In section 172D (limit on increase in benefits) for subsection (6) substitute— |
| 30 |
“(6) | For the purposes of this section whether a person is connected with |
| |
another person is determined in accordance with section 993 of ITA |
| |
| |
473 (1) | Amend section 189 (relevant UK individual) as follows. |
| |
| 35 |
(a) | omit the “and” immediately after paragraph (b), |
| |
(b) | after paragraph (b) insert— |
| |
“(ba) | income which is chargeable under Part 3 of ITTOIA |
| |
2005 and is immediately derived from the carrying on |
| |
of a UK furnished holiday lettings business (whether |
| 40 |
individually or as a partner acting personally in a |
| |
| |
|
| |
|
| |
|
(c) | for paragraph (c) substitute— |
| |
“(c) | income to which subsection (2A) applies.” |
| |
(3) | After subsection (2) insert— |
| |
“(2A) | This subsection applies to income if— |
| |
(a) | it is patent income, and |
| 5 |
(b) | the individual, alone or jointly, devised the invention for |
| |
which the patent in question was granted.” |
| |
(4) | After subsection (4) insert— |
| |
“(5) | “UK furnished holiday lettings business” means a UK property |
| |
business so far as consisting of the commercial letting of furnished |
| 10 |
holiday accommodation (within the meaning of Chapter 6 of Part 3 |
| |
| |
(6) | If there is a letting of accommodation only part of which is holiday |
| |
accommodation, just and reasonable apportionments are to be made |
| |
for the purpose of determining what is comprised in a UK furnished |
| 15 |
holiday lettings business. |
| |
(7) | “Patent income” means— |
| |
(a) | royalties or other sums paid in respect of the use of a patent |
| |
charged to tax under section 579 of ITTOIA 2005, |
| |
(b) | amounts on which tax is payable under section 587 or 593 of |
| 20 |
| |
(c) | amounts on which tax is payable under— |
| |
(i) | section 472(5) of the Capital Allowances Act, or |
| |
(ii) | paragraph 100 of Schedule 3 to that Act.” |
| |
474 | In section 192 (relief at source) omit subsection (5). |
| 25 |
475 | In section 193(6) (relief under net pay arrangements)— |
| |
(a) | for “from the total income” substitute “in calculating the net income”, |
| |
| |
(b) | at the end insert “(see Step 2 of the calculation in section 23 of ITA |
| |
| 30 |
476 | In section 194(1) (relief on making of claim)— |
| |
(a) | for “from the total income” substitute “in calculating the net income”, |
| |
| |
(b) | at the end insert “(see Step 2 of the calculation in section 23 of ITA |
| |
| 35 |
477 | In section 266A (member’s liability) for subsection (7) substitute— |
| |
“(7) | For the purposes of this section whether a person is connected with |
| |
another person is determined in accordance with section 993 of ITA |
| |
| |
478 | In section 273 (members liable as scheme administrator) for subsection (11) |
| 40 |
| |
“(11) | For the purposes of this section whether a person is connected with |
| |
another person is determined in accordance with section 993 of ITA |
| |
| |
|
| |
|
| |
|
479 | In section 278 (market value) for subsection (4) substitute— |
| |
“(4) | For the purposes of this section whether a person is connected with |
| |
another person is determined in accordance with section 993 of ITA |
| |
| |
480 (1) | Amend section 279 (other definitions) as follows. |
| 5 |
| |
(a) | omit the definition of “charity”, |
| |
(b) | after the definitions of “pension credit” and “pension debit” insert |
| |
| |
(c) | omit the words after the definition of “pension sharing order or |
| 10 |
| |
(3) | After that subsection insert— |
| |
“(1A) | In this Part, so far as it forms part of the Corporation Tax Acts, |
| |
expressions which are defined for the purposes of the Income Tax |
| |
Acts are to be given the same meaning as they have in the Income |
| 15 |
| |
481 (1) | Amend section 280 (abbreviations and general index) as follows. |
| |
(2) | In subsection (1) omit the “and” immediately before the definition of |
| |
“ITTOIA 2005” and after that definition insert “, and |
| |
“ITA 2007” means the Income Tax Act 2007.” |
| 20 |
| |
(a) | in the entry for “basic rate”, in the second column, for “section 832(1) |
| |
of ICTA” substitute “section 6(2) of ITA 2007 (as applied by section |
| |
| |
(b) | in the entry for “basic rate limit”, in the second column, for “section |
| 25 |
832(1) of ICTA” substitute “section 20(2) of ITA 2007 (as applied by |
| |
section 989 of that Act)”, |
| |
(c) | in the entry for “chargeable gain”, in the second column, for “section |
| |
832(1) of ICTA” substitute “section 989 of ITA 2007”, |
| |
(d) | in the entry for “charity”, in the second column, for “section 279(1)” |
| 30 |
substitute “section 989 of ITA 2007”, |
| |
(e) | in the entry for “company”, in the second column, for “section 832(1) |
| |
of ICTA” substitute “section 992 of ITA 2007”, |
| |
(f) | in the entry for “higher rate”, in the second column, for “section |
| |
832(1) of ICTA” substitute “section 6(2) of ITA 2007 (as applied by |
| 35 |
section 989 of that Act)”, |
| |
(g) | after the entry for “money purchase benefits” insert— |
| |
|
(h) | in the entry for “period of account”, in the second column, for |
| |
“section 832(1) of ICTA” substitute “section 989 of ITA 2007”, |
| |
(i) | in the entry for “personal representatives”, in the second column, for |
| |
“section 279(1)” substitute “section 989 of ITA 2007”, |
| |
|
| |
|
| |
|
(j) | in the entry for “property investment LLP”, in the second column, for |
| |
“section 842B of ICTA” substitute “section 1004 of ITA 2007”, |
| |
(k) | in the entry for “retail prices index”, in the second column, for |
| |
“section 279(1)” substitute “section 989 of ITA 2007”, |
| |
(l) | in the entry for “tax year”, in the second column, for “section 279(1)” |
| 5 |
substitute “section 4(2) of ITA 2007 (as applied by section 989 of that |
| |
| |
(m) | in the entry for “the tax year 2006-07 etc”, in the second column, for |
| |
“section 279(1)” substitute “section 4(4) of ITA 2007 (as applied by |
| |
section 989 of that Act)”, and |
| 10 |
(n) | in the entry for “total income” for “section 835 of ICTA” substitute |
| |
“section 23 of ITA 2007 (as applied by section 989 of that Act)”. |
| |
482 (1) | Amend Schedule 15 (charge to income tax on benefits received by former |
| |
owner of property) as follows. |
| |
(2) | For paragraph 2 substitute— |
| 15 |
“2 (1) | For the purposes of this Schedule whether a person is connected |
| |
with another person is determined in accordance with section 993 |
| |
of the Income Tax Act 2007. |
| |
(2) | But for those purposes sections 993 and 994 of that Act are to be |
| |
read as if in those sections— |
| 20 |
(a) | “relative” included uncle, aunt, nephew and niece, and |
| |
(b) | “settlement”, “settlor” and “trustee” had the same |
| |
meanings as in IHTA 1984.” |
| |
(3) | In paragraph 9(1) for paragraph (c) substitute— |
| |
“(c) | sections 720 to 730 of the Income Tax Act 2007,”. |
| 25 |
483 | In paragraph 4 of Schedule 27 (meaning of “offshore installation”) for |
| |
“sections 573 and 574” substitute “section 573”. |
| |
484 | In paragraph 4 of Schedule 29A (investment-regulated pension schemes) for |
| |
sub-paragraph (2) substitute— |
| |
“(2) | For the purposes of sub-paragraph (1) whether a person is |
| 30 |
connected with another person is determined in accordance with |
| |
section 993 of ITA 2007.” |
| |
485 | In paragraph 11D of Schedule 36 (transitional provisions) for sub-paragraph |
| |
| |
“(5) | For the purposes of this paragraph whether a person is connected |
| 35 |
with another person is determined in accordance with section 993 |
| |
| |
Pensions Act 2004 (c. 35) |
| |
486 | The Pensions Act 2004 is amended as follows. |
| |
487 | In Schedule 3 (restricted information held by the Regulator: certain |
| 40 |
permitted disclosures to facilitate exercise of functions), in the entry relating |
| |
to the Commissioners of Inland Revenue or their officers— |
| |
(a) | omit the “or” immediately after paragraph (f), and |
| |
|
| |
|
| |
|
(b) | in the second column after paragraph (g) insert “or— |
| |
(h) | the Income Tax Act 2007 (so far as relating to |
| |
functions previously exercised under the Income and |
| |
Corporation Taxes Act 1988).” |
| |
488 | In Schedule 8 (restricted information held by the Board: certain permitted |
| 5 |
disclosures to facilitate exercise of functions), in the entry relating to the |
| |
Commissioners of Inland Revenue or their officers— |
| |
(a) | omit the “or” immediately after paragraph (e), and |
| |
(b) | in the second column after paragraph (f) insert “or— |
| |
(g) | the Income Tax Act 2007 (so far as relating to |
| 10 |
functions previously exercised under the Income and |
| |
Corporation Taxes Act 1988).” |
| |
Constitutional Reform Act 2005 (c. 4) |
| |
489 | The Constitutional Reform Act 2005 is amended as follows. |
| |
490 | In paragraph 4 of Schedule 7 (protected functions of the Lord Chancellor) at |
| 15 |
the end of Part A (general) insert— |
| |
| |
| |
491 | In the table in Part 3 of Schedule 14 (appointments by the Lord Chancellor: |
| |
offices to which paragraph 2(2)(d) of Schedule 12 to the Act applies) at the |
| 20 |
| |
| | Section 704(1) of the Income |
| | | | | | | | | | | | | | | | | 25 |
|
Income Tax (Trading and Other Income) Act 2005 (c. 5) |
| |
492 | The Income Tax (Trading and Other Income) Act 2005 is amended as |
| |
| |
493 | In section 1 (overview of Act) omit subsection (2). |
| |
494 | In section 12(3) (profits of mines etc) for “Chapter 1 of Part 10 of ICTA” |
| 30 |
substitute “Part 4 of ITA 2007”. |
| |
495 (1) | Amend section 13 (visiting performers) as follows. |
| |
(2) | In subsection (8) omit the definitions of “payment” and “transfer”. |
| |
(3) | After that subsection insert— |
| |
“(9) | In this section and section 14— |
| 35 |
(a) | references to a payment include references to a payment by |
| |
way of loan of money, and |
| |
(b) | references to a transfer do not include references to a transfer |
| |
of money but, subject to that, include references to— |
| |
|
| |
|
| |
|
(i) | a temporary transfer (as by way of loan), and |
| |
(ii) | a transfer of a right (whether or not a right to receive |
| |
| |
(10) | This section does not apply to payments or transfers of a kind |
| |
prescribed in regulations under section 966(6) of ITA 2007.” |
| 5 |
496 | In section 17(3) (effect of becoming or ceasing to be a UK resident) for “set |
| |
off under section 385 of ICTA against” substitute “deducted under section 83 |
| |
| |
497 | Omit section 51 (patent royalties). |
| |
498 (1) | Amend section 52 (exclusion of double relief for interest) as follows. |
| 10 |
(2) | In subsections (1), (5) and (6) for “section 353 of ICTA” substitute “section |
| |
| |
(3) | In subsection (6) for “section 368(3) of ICTA” substitute “section 387(2) and |
| |
| |
499 | In section 87(5) (expenses of research and development) for “section 837A of |
| 15 |
ICTA” substitute “section 1006 of ITA 2007”. |
| |
500 | In section 108(4) (gifts of trading stock etc to charities) omit paragraphs (c) |
| |
| |
501 | In section 179(a) (connected persons) for “section 839 of ICTA” substitute |
| |
“section 993 of ITA 2007”. |
| 20 |
502 (1) | Amend section 232 (treatment of trading adjustment income) as follows. |
| |
(2) | In subsection (3) for “Chapter 1 of Part 10 of ICTA” substitute “Part 4 of ITA |
| |
| |
(3) | In subsection (4) for the words from “the trade” to the end substitute “the |
| |
trade is relevant UK earnings within section 189(2)(b) of FA 2004, |
| 25 |
adjustment income is similarly relevant UK earnings.” |
| |
503 | In section 248(3) (debts paid after cessation)— |
| |
(a) | for “section 109A(4) or (4A) of ICTA” substitute “section 96 of ITA |
| |
| |
(b) | after “expenditure)” insert “as a result of subsection (1)(b) of that |
| 30 |
| |
504 (1) | Amend section 250 (receipts relating to post-cessation expenditure) as |
| |
| |
(2) | In subsection (1) for “section 109A of ICTA” substitute “section 96 of ITA |
| |
| 35 |
| |
(a) | in paragraph (a) for “section 109A(2)(a) or (b) of ICTA” substitute |
| |
“section 97(2) or (3) of ITA 2007”, |
| |
(b) | in paragraph (b) for “section 109A(2)(c) of ICTA” substitute “section |
| |
| 40 |
(c) | in paragraph (c) for “section 109A(2)(d) of ICTA” substitute “section |
| |
| |
|
| |
|
| |
|
505 | In section 254(3)(b) (allowable deductions) for “section 90(4) of FA 1995” |
| |
substitute “section 261D of TCGA 1992”. |
| |
506 (1) | Amend section 256 (treatment of post-cessation receipts) as follows. |
| |
(2) | In subsection (1)(b) omit “earned income within section 833(4)(c) of ICTA |
| |
| 5 |
(3) | In subsection (2) omit “earned income or”. |
| |
507 | In section 272(2) (profits of a property business: application of trading |
| |
income rules), omit the entry in the table relating to section 51. |
| |
508 | In section 322(2) (commercial letting of furnished holiday |
| |
| 10 |
(a) | omit paragraphs (b) and (c), and |
| |
(b) | for paragraph (f) and the “and” immediately before that paragraph |
| |
| |
“(f) | section 189(2)(ba) of FA 2004 (meaning of “relevant |
| |
UK earnings” for pension purposes), |
| 15 |
(g) | Part 4 of ITA 2007 ( loss relief: see section 127 of that |
| |
| |
(h) | section 836(3) of ITA 2007 (jointly held property: see |
| |
| |
509 | In section 327(2)(b) (capital allowances and loss relief) for “Chapter 1 of Part |
| 20 |
10 of ICTA” substitute “Part 4 of ITA 2007”. |
| |
510 (1) | Amend section 328 (earned income and relevant UK earnings for pension |
| |
| |
(2) | In subsection (2) for “treated as” to the end substitute “relevant UK earnings |
| |
within section 189(2)(ba) of FA 2004.” |
| 25 |
(3) | In the sidenote omit “Earned income and”. |
| |
511 | In section 333(3) (treatment of property business adjustment income) for |
| |
“Chapter 1 of Part 10 of ICTA” substitute “Part 4 of ITA 2007”. |
| |
512 | In section 354(2) (other rules about what counts as a “post-cessation |
| |
| 30 |
(a) | after “section 248 (debts paid after cessation)” insert “(reading the |
| |
reference in subsection (3) to section 96 of ITA 2007 as a reference to |
| |
section 125 of that Act)”, and |
| |
(b) | after “section 250 (receipts relating to post-cessation expenditure)” |
| |
insert “(reading the reference in subsection (1) to section 96 of ITA |
| 35 |
2007 as a reference to section 125 of that Act)”. |
| |
513 | In section 369(4) (charge to tax on interest) for the words from “sections |
| |
714(5)” to the end substitute “Chapter 3 of Part 12 of ITA 2007 (exemption for |
| |
interest on securities to which Chapter 2 of that Part applies)”. |
| |
514 | In section 372(2) (building society dividends) for the words from “has” to the |
| 40 |
end substitute “includes any distribution (whether or not described as a |
| |
| |
515 (1) | Amend section 397 (tax credits for qualifying distributions: UK residents |
| |
and eligible non-UK residents) as follows. |
| |
|
| |
|