|
| |
|
Partnerships involving companies |
| |
8 (1) | References in this Act to any person are to be read, in the case of a person |
| |
acting in partnership with other persons of whom at least one is a company |
| |
chargeable to corporation tax, as references to all the partners so far as is |
| |
required for the purposes of preserving the continuity of the law. |
| 5 |
(2) | References to a company or other person in any provision amended in its |
| |
application for corporation tax purposes by this Act are to be read, in the |
| |
case of a company acting in partnership with other persons of whom at least |
| |
one is not a company, as references to all the partners so far as is required for |
| |
the purposes of preserving the continuity of the law. |
| 10 |
| |
| |
“enactment” includes subordinate legislation (within the meaning of |
| |
the Interpretation Act 1978 (c. 30)), |
| |
“relevant tax purposes” means, in relation to a superseded enactment, |
| 15 |
tax purposes for which the enactment has been rewritten by this Act, |
| |
| |
“superseded enactment” means an earlier enactment which has been |
| |
rewritten by this Act for certain tax purposes (whether it applied |
| |
only for those purposes or for those and other tax purposes). |
| 20 |
(2) | References in this Part to the repeal of a provision include references to its |
| |
revocation and to its express or implied disapplication for income tax |
| |
| |
(3) | References in this Part to tax purposes are not limited to income tax |
| |
| 25 |
| |
| |
10 (1) | This paragraph applies if, in the case of any person— |
| |
(a) | a thing is done or an event occurs before 6 April 2007, and |
| |
(b) | because of a change in the law made by this Act, the tax |
| 30 |
consequences of that thing or event for the relevant period are |
| |
different from what they would otherwise have been. |
| |
(2) | If that person so elects, this Act applies with such modifications as may be |
| |
necessary to secure that the tax consequences for the relevant period are the |
| |
same as they would have been if the change in the law had not been made. |
| 35 |
(3) | In sub-paragraphs (1) and (2) “the relevant period” means— |
| |
(a) | for income tax purposes, any period of account beginning before and |
| |
ending on or after 6 April 2007, and |
| |
(b) | for corporation tax purposes, any accounting period beginning |
| |
before and ending on or after 6 April 2007. |
| 40 |
(4) | If this paragraph applies in the case of two or more persons in relation to the |
| |
same thing or event, an election made under this paragraph by any one of |
| |
those persons is of no effect unless a corresponding election is made by the |
| |
other or each of the others. |
| |
|
| |
|
| |
|
(5) | An election under this paragraph must be made— |
| |
(a) | for income tax purposes, on or before the first anniversary of the |
| |
normal self-assessment filing date for the tax year in which the |
| |
period of account ends, and |
| |
(b) | for corporation tax purposes, not later than two years after the end of |
| 5 |
| |
| |
Rates at which income tax is charged |
| |
11 | In relation to a tax year before 2007-08— |
| |
(a) | references in this Act, another enactment or an instrument or |
| 10 |
document to the savings rate are to be read as references to the lower |
| |
| |
(b) | references in this Act, another enactment or an instrument or |
| |
document to the trust rate are to be read as references to the rate |
| |
| 15 |
12 | In relation to the tax year 2007-08 or any subsequent tax year— |
| |
(a) | references in an enactment, instrument or document to the lower rate |
| |
are to be read as references to the savings rate, and |
| |
(b) | references in an enactment, instrument or document to the rate |
| |
applicable to trusts are to be read as references to the trust rate. |
| 20 |
13 | In this Part “enactment” includes subordinate legislation (within the |
| |
meaning of the Interpretation Act 1978 (c. 30)). |
| |
| |
| |
14 | Paragraphs 15 to 17 do not apply after 5 April 2009. |
| 25 |
15 (1) | Sub-paragraphs (2) and (3) apply in relation to an individual who, |
| |
immediately before 6 April 2007, is entitled to a blind person’s allowance |
| |
under section 265 of ICTA. |
| |
(2) | Section 39 has effect with the insertion in subsection (1) after “section 38” of |
| |
“of this Act or section 265 of ICTA”. |
| 30 |
(3) | Section 265 of ICTA (as amended by Schedule 1) has effect— |
| |
(a) | with the insertion in subsection (2)(a) after “subsection (1) above” of |
| |
“or section 38 of ITA 2007”, |
| |
(b) | with the insertion in subsection (5) after “subsection (1)” of “or |
| |
| 35 |
16 (1) | Sub-paragraphs (2) to (5) apply in relation to an individual if, immediately |
| |
before 6 April 2007, the individual’s spouse or civil partner is entitled to a |
| |
tax reduction under section 257A or 257AB of ICTA. |
| |
(2) | Sections 47 and 48 have effect— |
| |
(a) | with the insertion in subsections (1)(a) and (3) after “section 45 or 46” |
| 40 |
of “of this Act or section 257A or 257AB of ICTA”, |
| |
|
| |
|
| |
|
(b) | with the insertion in subsection (4) after paragraph (b) of “, or |
| |
(c) | if the individual’s spouse or civil partner is entitled to |
| |
a tax reduction under section 257A or 257AB of ICTA, |
| |
the amount by reference to which the calculation of |
| |
the tax reduction is to be made.” |
| 5 |
(3) | Section 51 has effect— |
| |
(a) | with the insertion in subsections (1)(a) and (2)(a) after “section 45 or |
| |
46” of “of this Act or section 257A or 257AB of ICTA”, |
| |
(b) | with the insertion in subsection (2)(b) after “section 49” of “of this Act |
| |
or section 257BA(3) of ICTA”. |
| 10 |
(4) | Section 257BA of ICTA (as amended by Schedule 1) has effect with the |
| |
insertion in subsection (1) after “section 257A or 257AB” of “of this Act or |
| |
section 45 or 46 of ITA 2007”. |
| |
(5) | Section 257BB of ICTA (as amended by Schedule 1) has effect with the |
| |
insertion in subsection (3) after ““section 257A or 257AB” of “of this Act or |
| 15 |
section 45 or 46 of ITA 2007”. |
| |
17 (1) | Sub-paragraphs (2) to (5) apply in relation to an individual who, |
| |
immediately before 6 April 2007, is entitled to a tax reduction under section |
| |
| |
(2) | Section 49 has effect with the insertion in subsection (1) after “section 45 or |
| 20 |
46 of “of this Act or section 257A or 257AB of ICTA”. |
| |
(3) | Section 52 has effect with the insertion in subsection (4) after “section 45, 46 |
| |
or 49” of “of this Act or section 257A, 257AB or 257BA(3) of ICTA”. |
| |
(4) | Section 53 has effect with the insertion in subsection (3) after “this Chapter” |
| |
of “or section 257A, 257AB, 257BA or 257BB of ICTA”. |
| 25 |
(5) | Section 257BA of ICTA (as amended by Schedule 1) has effect— |
| |
(a) | with the insertion in subsections (2) and (3)(a) after “section 257A or |
| |
257AB” of “of this Act or section 45 or 46 of ITA 2007”, |
| |
(b) | with the substitution for subsection (3A) of— |
| |
“(3A) | In this section “the appropriate amount” means— |
| 30 |
(a) | if the individual, or the individual’s spouse or civil |
| |
partner, is entitled to a tax reduction under section |
| |
257A or 257AB, the amount by reference to which the |
| |
calculation of the tax reduction is to be made, |
| |
(b) | if the individual, or the individual’s spouse, is |
| 35 |
entitled to a tax reduction under section 45 of ITA |
| |
2007, the amount specified in section 45(3)(a) or (b) of |
| |
that Act (as applicable), after any reductions under |
| |
section 45(4) and 54(2) of that Act, or |
| |
(c) | if the individual, or the individual’s spouse or civil |
| 40 |
partner, is entitled to a tax reduction under section 46 |
| |
of ITA 2007, the amount specified in section 46(3)(a) |
| |
or (b) of that Act (as applicable), after any reductions |
| |
under section 46(4) and 54(2) of that Act.” |
| |
(6) | Section 257BB of ICTA (as amended by Schedule 1) has effect— |
| 45 |
(a) | with the insertion in subsections (1)(a) and (1A)(a) after “section |
| |
257A or 257AB” of “of this Act or section 45 or 46 of ITA 2007”, |
| |
|
| |
|
| |
|
(b) | with the insertion in subsection (1A)(b) after “section 257BA(3)” of |
| |
“of this Act or section 49 of ITA 2007”, |
| |
(c) | with the insertion in subsection (5C) after “this section” of “, or |
| |
Chapter 3 of Part 3 of ITA 2007,”. |
| |
| 5 |
Losses (except losses on disposal of shares) |
| |
General: carry forward loss reliefs |
| |
18 (1) | The repeal by this Act of the superseded carry forward provisions does not |
| |
alter the effect of those provisions so far as they determine— |
| |
| 10 |
| |
| relief for any loss made (or treated as made) in a tax year before the tax year |
| |
2007-08 is to be given for the tax year 2007-08 or any subsequent tax year. |
| |
(2) | But any relief for the loss (or any part of the loss) which is given for the tax |
| |
year 2007-08 or any subsequent tax year is to be given in accordance with the |
| 15 |
relevant provisions of Part 4 of this Act. |
| |
(3) | In this paragraph “the superseded carry forward provisions” means— |
| |
(a) | sections 379A and 379B of ICTA (carry forward of loss in Schedule A |
| |
business or overseas property business), |
| |
(b) | sections 385, 387, 390 and 391 (so far as applying to section 385) of |
| 20 |
ICTA (carry forward of loss in trade, profession or vocation), |
| |
(c) | section 392(2)(b) and (5) of ICTA (carry forward of miscellaneous |
| |
| |
(d) | any provision inserting or amending, or affecting the application of, |
| |
any of the above provisions. |
| 25 |
Trade loss relief against general income |
| |
19 (1) | This paragraph applies for the purposes of section 64 if the loss is made in |
| |
| |
(2) | Relief for the loss can be given for the tax year 2006-07. |
| |
(3) | Sub-paragraphs (4) and (5) apply if relief for the loss is claimed for the tax |
| 30 |
| |
(4) | If relief is to be given, the relief is given in the way it would have been given |
| |
had it been given under section 380(1)(b) of ICTA ignoring this Act (and |
| |
section 65 of this Act is to be read accordingly). |
| |
(5) | Section 72 of FA 1991 applies as if the relief had been claimed under section |
| 35 |
| |
20 (1) | This paragraph applies if— |
| |
(a) | a person makes a loss (“the 2006-07 loss”) in a trade in the tax year |
| |
| |
(b) | relief under section 380 of ICTA is not available for the 2006-07 loss |
| 40 |
because of section 384(1) of that Act, |
| |
(c) | the person makes a loss (“the 2007-08 loss”) in the trade in the tax |
| |
| |
|
| |
|
| |
|
(d) | (apart from this paragraph) relief under section 64 of this Act is not |
| |
available for the 2007-08 loss because of section 66 of this Act, |
| |
(e) | the basis period for the tax year 2007-08 overlaps with the tax year |
| |
| |
(f) | ignoring this Act, section 384(1) of ICTA would not have prevented |
| 5 |
relief under section 380 of that Act being available for the 2007-08 |
| |
| |
(2) | Section 66 of this Act is not to apply in relation to the 2007-08 loss. |
| |
(3) | This paragraph applies to professions and vocations as it applies to trades. |
| |
Early trade losses relief |
| 10 |
21 (1) | This paragraph applies for the purposes of section 72 if the loss is made in |
| |
the tax year 2007-08, 2008-09 or 2009-10. |
| |
(2) | Relief for the loss can be given for one or more of the tax years 2004-05, 2005- |
| |
06 and 2006-07 (depending on the tax year in which the loss is made). |
| |
(3) | If relief for the loss is to be given for one or more of those tax years, the relief |
| 15 |
is given in the way in which it would have been given had it been given |
| |
under section 381 of ICTA ignoring this Act (and section 73 of this Act is to |
| |
| |
22 (1) | This paragraph applies if— |
| |
(a) | a person makes a loss (“the 2006-07 loss”) in a trade in the tax year |
| 20 |
| |
(b) | relief under section 381 of ICTA is not available for the 2006-07 loss |
| |
because of subsection (4) of that section, |
| |
(c) | the person makes a loss (“the 2007-08 loss”) in the trade in the tax |
| |
| 25 |
(d) | (apart from this paragraph) relief under section 72 of this Act is not |
| |
available for the 2007-08 loss because of section 74(1) of this Act, |
| |
(e) | the basis period for the tax year 2007-08 overlaps with the tax year |
| |
| |
(f) | ignoring this Act, subsection (4) of section 381 of ICTA would not |
| 30 |
have prevented relief under that section being available for the 2007- |
| |
| |
(2) | Section 74(1) of this Act is not to apply in relation to the 2007-08 loss. |
| |
(3) | This paragraph applies to professions and vocations as it applies to trades. |
| |
Sideways relief: trade leasing allowances given to individuals |
| 35 |
23 (1) | This paragraph applies if— |
| |
(a) | a person makes a loss (“the 2006-07 loss”) in a trade in the tax year |
| |
| |
(b) | relief under section 380 or 381 of ICTA is not available for the 2006- |
| |
07 loss (or for part of it) because of section 384(6) of that Act, |
| 40 |
(c) | the person makes a loss (“the 2007-08 loss”) in the trade in the tax |
| |
| |
|
| |
|
| |
|
(d) | (apart from this paragraph) relief under section 64 or 72 of this Act is |
| |
not available for the 2007-08 loss (or for part of it) because of section |
| |
| |
(e) | the basis period for the tax year 2007-08 overlaps with the tax year |
| |
| 5 |
(f) | ignoring this Act, section 384(6) of ICTA would not have prevented |
| |
relief under section 380 or 381 of that Act being available for the 2007- |
| |
08 loss (or for the part). |
| |
(2) | Section 75 of this Act is not to apply in relation to the 2007-08 loss (or to the |
| |
| 10 |
Sideways relief: dealings in commodity futures |
| |
24 | Section 81 does not apply if the arrangements mentioned in that section were |
| |
made wholly before 6 April 1976. |
| |
Terminal trade loss relief |
| |
25 (1) | This paragraph applies for the purposes of section 89 if the final tax year is |
| 15 |
the tax year 2007-08, 2008-09 or 2009-10. |
| |
(2) | Relief for the terminal losses in question can be given for one or more of the |
| |
tax years 2004-05, 2005-06 and 2006-07 (depending on which tax year is the |
| |
| |
(3) | If relief for the terminal losses is to be given for one or more of those tax |
| 20 |
years, the relief is given in the way in which it would have been given had it |
| |
been given under section 388 of ICTA ignoring this Act (and section 91 of |
| |
this Act is to be read accordingly). |
| |
Post-cessation trade loss relief and post-cessation property relief |
| |
26 | The events covered by section 98(5) (including as applied by section |
| 25 |
125(6)(b)) include events— |
| |
(a) | which occur before the tax year 2007-08, and |
| |
(b) | in relation to which no claim is made under section 109A of ICTA. |
| |
Reliefs for limited partners not to exceed contribution to the firm |
| |
27 (1) | The relief covered by section 104(5) includes— |
| 30 |
(a) | relief given for a loss as a result of section 380 or 381 of ICTA, |
| |
(b) | any amount that, ignoring this Act, would have been included in the |
| |
individual’s aggregate amount in relation to the trade for the |
| |
purposes of section 117 of ICTA as a result of paragraph 22(3) of |
| |
Schedule 2 to CAA 2001, and |
| 35 |
(c) | the treatment of a loss as an allowable loss by virtue of section 72 of |
| |
| |
(2) | The income covered by section 104(6) includes amounts treated as received |
| |
as a result of the application of section 74 of FA 2005. |
| |
Reliefs for members of LLPs not to exceed contribution to the LLP |
| 40 |
28 (1) | The relief covered by section 107(6) includes— |
| |
|
| |
|
| |
|
(a) | relief given for a loss as a result of section 380 or 381 of ICTA, and |
| |
(b) | the treatment of a loss as an allowable loss by virtue of section 72 of |
| |
| |
(2) | The income covered by section 107(7) includes amounts treated as received |
| |
as a result of the application of section 74 of FA 2005. |
| 5 |
Members of LLPs: carry-forward of losses |
| |
29 (1) | The amounts of loss covered by section 109(1)(b) include amounts of loss |
| |
which, as a result of section 117 of ICTA (as applied by section 118ZB of that |
| |
| |
(a) | relieved under section 380 or 381 of ICTA, or |
| 10 |
(b) | treated as an allowable loss by virtue of section 72 of FA 1991. |
| |
| |
(a) | references to section 109 include references to section 118ZD of |
| |
| |
(b) | references to sideways relief include references to relief under |
| 15 |
section 380 or 381 of ICTA, and |
| |
(c) | references to capital gains relief include references to the treatment |
| |
of a loss as an allowable loss by virtue of section 72 of FA 1991. |
| |
Reliefs for non-active partners not to exceed contribution to the firm |
| |
30 (1) | The relief covered by section 110(5) includes— |
| 20 |
(a) | relief given for a loss as a result of section 380 or 381 of ICTA, and |
| |
(b) | the treatment of a loss as an allowable loss by virtue of section 72 of |
| |
| |
(2) | Sub-paragraph (1) is subject to paragraph 33. |
| |
(3) | The income covered by section 110(6) includes amounts treated as received |
| 25 |
as a result of the application of section 74 of FA 2005. |
| |
Non-active partners: carry-forward of losses |
| |
31 (1) | The amounts of loss covered by section 113(1)(b) include amounts of loss |
| |
which, as a result of section 118ZE of ICTA, are not— |
| |
(a) | relieved under section 380 or 381 of ICTA, or |
| 30 |
(b) | treated as an allowable loss by virtue of section 72 of FA 1991. |
| |
| |
(a) | references to section 113 include references to section 118ZI of ICTA, |
| |
(b) | references to sideways relief include references to relief under |
| |
section 380 or 381 of ICTA, and |
| 35 |
(c) | references to capital gains relief include references to the treatment |
| |
of a loss as an allowable loss by virtue of section 72 of FA 1991. |
| |
(3) | In section 113(8) the reference to section 109 includes a reference to section |
| |
| |
|
| |
|