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House of Commons

Session 2006 - 07 Internet Publications Other Bills before Parliament

Income Tax Bill

Income Tax Bill xxix
Special rules about some calculations
659    Transfers with or without accrued interest: interest in default
660    Transfers with unrealised interest: interest in default
661    Successive transfers with unrealised interest in default
662    New securities issued with extra return: special rules about payments
663    Transfers without accrued interest to makers of manufactured payments
664    Foreign currency securities: sterling equivalent of payments on transfers
665    Foreign currency securities: unrealised interest payable in foreign currency
Nominees and trustees
666    Certain transfers by or to nominees or trustees treated as made by or to others
667    Trustees’ accrued income profits treated as settlement income
Relief where transfer proceeds unremittable
668    Relief for unremittable transfer proceeds: general
669    Relief for unremittable transfer proceeds: section 630 profits
670    Withdrawal of relief
Interpretation
671    Meaning of “interest”
672    Meaning of “interest payment day”
673    Meaning of “interest period”
674    Meaning of “the settlement day”
675    The holding of securities
676    Nominal value of securities: general
677    Nominal value: foreign currency securities
Chapter 3
Exemptions relating to interest on securities
678    Exemptions relating to interest on securities: preliminary
679    Interest on securities involving accrued income losses: general
680    Interest on securities involving accrued income losses: foreign trustees
681    Unrealised interest received by transferee after transfer
Part 13
Tax avoidance
Chapter 1
Transactions in securities
Introduction
682    Overview of Chapter
683    Meaning of “income tax advantage”
Income Tax Bill xxx
Person liable to counteraction of income tax advantages
684    Person liable to counteraction of income tax advantage
685    Exception where no tax avoidance object shown
Circumstances in which income tax advantages obtained or obtainable
686    Abnormal dividends used for exemptions or reliefs (circumstance A)
687    Deductions from profits obtained following distribution or dealings
(circumstance B)
688    Receipt of consideration representing company’s assets, future receipts or
trading stock (circumstance C)
689    Receipt of consideration in connection with relevant company distribution
(circumstance D)
690    Receipt of assets of relevant company (circumstance E)
691    Meaning of “relevant company” in sections 689 and 690
692    Abnormal dividends: general
693    Abnormal dividends: the excessive return condition
694    Abnormal dividends: the excessive accrual condition
Procedure for counteraction of income tax advantages
695    Preliminary notification that section 684 may apply
696    Opposed notifications: statutory declarations
697    Opposed notifications: determinations by tribunal
698    Counteraction notices
699    Limit on amount assessed in section 689 and 690 cases
700    Timing of assessments in section 690 cases
Clearance procedure and information powers
701    Application for clearance of transactions
702    Effect of clearance notification under section 701
703    Power to obtain information
The tribunal
704    The tribunal
Appeals
705    Appeals against counteraction notices
706    Rehearing by tribunal of appeal against counteraction notice
707    Statement of case by tribunal for opinion of High Court or Court of Session
708    Cases before High Court or Court of Session
709    Effect of appeals against tribunal’s determination under section 706
710    Appeals from High Court or Court of Session
711    Proceedings in Northern Ireland
Supplementary
712    Application of Chapter where individual within section 684 dies
713    Interpretation of Chapter
Income Tax Bill xxxi
Chapter 2
Transfer of assets abroad
Introduction
714    Overview of Chapter
715    Meaning of “relevant transaction”
716    Meaning of “relevant transfer” and “transfer”
717    Meaning of “assets” etc
718    Meaning of “person abroad” etc
719    Meaning of “associated operation”
Charge where power to enjoy income
720    Charge to tax on income treated as arising under section 721
721    Individuals with power to enjoy income as a result of relevant transactions
722    When an individual has power to enjoy income of person abroad
723    The enjoyment conditions
724    Special rules where benefit provided out of income of person abroad
725    Reduction in amount charged where controlled foreign company involved
726    Non-domiciled individuals
Charge where capital sums received
727    Charge to tax on income treated as arising under section 728
728    Individuals receiving capital sums as a result of relevant transactions
729    The capital receipt conditions
730    Non-domiciled individuals
Charge where benefit received
731    Charge to tax on income treated as arising under section 732
732    Non-transferors receiving a benefit as a result of relevant transactions
733    Income charged under section 731
734    Reduction in amount charged: previous capital gains tax charge
735    Non-domiciled individuals
Exemptions: no tax avoidance purpose or genuine commercial transaction
736    Exemptions: introduction
737    Exemption: all relevant transactions post-4 December 2005 transactions
738    Meaning of “commercial transaction”
739    Exemption: all relevant transactions pre-5 December 2005 transactions
740    Exemption: relevant transactions include both pre-5 December 2005 and post-
4 December 2005 transactions
741    Application of section 742 (partial exemption)
742    Partial exemption where later associated operations fail conditions
General
743    No duplication of charges
744    Meaning of taking income into account in charging income tax for section 743
745    Rates of tax applicable to income charged under sections 720 and 727 etc
Income Tax Bill xxxii
746    Deductions and reliefs where individual charged under section 720 or 727
747    Amounts corresponding to accrued income profits and related interest
Supplementary
748    Power to obtain information
749    Restrictions on particulars to be provided by solicitors
750    Restrictions on particulars to be provided by banks
751    Special Commissioners’ jurisdiction on appeals
Chapter 3
Transactions in land
Introduction
752    Overview of Chapter
753    Meaning of disposing of land
754    Priority of other income tax provisions
Charge on gains from transactions in land
755    Charge to tax on gains from transactions in land
756    Income treated as arising when gains obtained from some land disposals
757    Person obtaining gain
758    Income charged
759    Person liable
760    Method of calculating gain
Further provisions relevant to the charge
761    Transactions, arrangements, sales and realisations relevant for Chapter
762    Tracing value
763    Meaning of “another person”
764    Valuations and apportionments
Exemptions
765    Exemption: gain attributable to period before intention to develop formed
766    Exemption: disposals of shares in companies holding land as trading stock
767    Exemption: private residences
Recovery of tax
768    Recovery of tax where consideration receivable by person not assessed
769    Recovery of tax: certificates of tax paid etc
Clearances and power to obtain information
770    Clearance procedure
771    Power to obtain information
Income Tax Bill xxxiii
Interpretation
772    Interpretation of Chapter
Chapter 4
Sales of occupation income
Introduction
773    Overview of Chapter
774    Meaning of “occupation”
775    Priority of other tax provisions
Charge on sale of occupation income
776    Charge to tax on sale of occupation income
777    Conditions for sections 778 and 779 to apply
778    Income arising where capital amount other than derivative property or right
obtained
779    Income arising where derivative property or right obtained
Further provisions relevant to the charge
780    Transactions, arrangements, sales and realisations relevant for Chapter
781    Tracing value
782    Meaning of “other person”
783    Valuations and apportionments
Exemption for sales of going concerns
784    Exemption for sales of going concerns
785    Restriction on exemption: sales of future earnings
Recovery of tax
786    Recovery of tax where consideration receivable by person not assessed
787    Recovery of tax: certificates of tax paid etc
Power to obtain information
788    Power to obtain information
Interpretation
789    Minor definitions
Chapter 5
Avoidance involving trading losses
Introduction
790    Overview of Chapter
Income Tax Bill xxxiv
Individuals in partnership: recovery of excess relief
791    Charge to tax on income treated as received under section 792
792    Partners claiming excess sideways or capital gains relief
793    Calculating the amount of income treated as received
794    Meaning of “the total amount of trade losses claimed” etc
795    Meaning of “post-1 December 2004 loss”
Individuals claiming relief for film-related trading losses
796    Charge to tax on income treated as received under section 797
797    Individuals claiming sideways or capital gains relief for film-related losses
798    Meaning of “non-taxable consideration” etc
799    Meaning of “disposal of a right of the individual to profits” etc
800    Meaning of “film-related losses” etc
801    Meaning of “capital contribution”
802    Exclusion of amounts in calculating capital contribution by a partner
803    Prohibition against double counting
Individuals in partnership claiming relief for licence-related trading losses
804    Charge to tax on income treated as received under section 805
805    Partners claiming relief for licence-related trading losses
806    Calculation of amount of income treated as received by the individual
807    Supplementary provision relating to calculation in section 806
808    Meaning of “disposal of the licence” etc
809    Other definitions
Part 14
Income tax liability: miscellaneous rules
Chapter 1
Limits on liability to income tax of non-UK residents
Introduction
810    Overview of Chapter
Limit for non-UK resident individuals, trustees etc
811    Limit on liability to income tax of non-UK residents
812    Case where limit not to apply
813    Meaning of “disregarded income”
814    Meaning of “disregarded transaction income”
Limit for non-UK resident companies
815    Limit on liability to income tax of non-UK resident companies
816    Meaning of “disregarded company income”
The independent broker conditions
817    The independent broker conditions
Income Tax Bill xxxv
The independent investment manager conditions
818    The independent investment manager conditions
819    Investment managers: the 20% rule
820    Meaning of “qualifying period”
821    Meaning of “relevant disregarded income”
822    Meaning of “beneficial entitlement”
823    Treatment of transactions where requirements of 20% rule not met
824    Application of 20% rule to collective investment schemes
Supplementary
825    Meaning of “disregarded savings and investment income”
826    Meaning of “disregarded annual payments”
827    Meaning of “investment manager” and “investment transaction”
828    Transactions through brokers and investment managers
Chapter 2
Residence
829    Residence of individuals temporarily abroad
830    Residence of individuals working abroad
831    Foreign income of individuals in the United Kingdom for temporary purpose
832    Employment income of individuals in the United Kingdom for temporary
purpose
833    Visiting forces and staff of designated allied headquarters
834    Residence of personal representatives
835    Residence rules for trustees and companies
Chapter 3
Jointly held property
836    Jointly held property
837    Jointly held property: declarations of unequal beneficial interests
Chapter 4
Other miscellaneous rules
838    Local authorities and local authority associations
839    Issue departments of the Reserve Bank of India and the State Bank of Pakistan
840    Government securities held by non-UK resident central banks
841    Official agents of Commonwealth countries etc
842    European Economic Interest Groupings
843    Restriction of deductions for annual payments
844    Letters patent etc: exempting provisions
845    Extra return to be treated as interest etc
846    Interpretation of section 845

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