LegalizeReform history
Income and Corporation Taxes Act 1988
100 versions
· 1988-02-09
2022-07-14
Income and Corporation Taxes Act 1988
2019-07-05
Income and Corporation Taxes Act 1988
2019-02-12
Income and Corporation Taxes Act 1988
2017-11-16
Income and Corporation Taxes Act 1988
2017-04-27
Income and Corporation Taxes Act 1988
2017-04-06
Income and Corporation Taxes Act 1988
2016-12-14
Income and Corporation Taxes Act 1988
2016-09-15
Income and Corporation Taxes Act 1988
Changes on 2016-09-15
@@ -10,13 +10,13 @@
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#### Transfers of business: election for transferee to pay tax of transferor
#### Relief for individuals.
##### 2
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#### “Distribution” to include certain expenses of close companies.
#### Income arising under settlement where settlor retains an interest.
##### 3
@@ -28,7 +28,7 @@
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#### Building societies: time for payment of tax.
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##### 5
@@ -64,7 +64,7 @@
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#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 9
@@ -6450,7 +6450,7 @@
- (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) Subsections (1) . . . above shall with the necessary modifications apply to a payment of the whole or part of a tax credit as they apply to a repayment falling within subsection (1) of income tax paid in the year of assessment to which the tax credit relates.
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2A) Subsection (1) above shall apply to a repayment made in consequence of a claim under section 228 of the Income Tax Act 1952 (relief in respect of income accumulated under trusts) as if the repayment were of income tax paid by the claimant for the year of assessment in which the contingency mentioned in that section happened.
@@ -6510,9 +6510,9 @@
- (4A) In this section any reference to income tax deducted at source for a year of assessment is a reference to—
- (a) income tax deducted or treated as deducted from any income, or treated as paid on any income, in respect of that year, and
- (b) amounts which, in respect of that year, are tax credits to which section 397(1) or 397A(1) of ITTOIA 2005 applies,
- (a) income tax deducted or treated as deducted from any income, or treated as paid on any income, in respect of that year, . . .
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
but does not include a reference to amounts which, in that year, are deducted at source under PAYE regulations in respect of previous years.
@@ -6538,15 +6538,15 @@
- (1) This section applies to the following payments made to a company in connection with any accounting period for which the company was resident in the United Kingdom (“*the relevant accounting period*”), that is to say—
- (a) a repayment of corporation tax paid by the company for that accounting period (including advance corporation tax paid in respect of distributions made by the company in that accounting period*and any sum paid in respect of that period on an assessment under section* 430(7)(a)) ; or
- (b) a repayment of income tax in respect of a payment received by the company in that accounting period on which the company bore income tax by deduction; or
- (c) a payment of the whole or part of the tax credit comprised in any franked investment income received by the company in that accounting period.
- (a) a repayment of corporation tax paid by the company for that accounting period (including advance corporation tax paid in respect of distributions made by the company in that accounting period . . . ); or
- (b) a repayment of income tax in respect of a payment received by the company in that accounting period on which the company bore income tax by deduction; . . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) Subject to the following provisions of this section, where a payment . . . to which this section applies is made by the Board or an inspector after the end of the 12 months beginning with the material date, the payment shall be increased under this section by an amount (a “*repayment supplement*”) equal to interest on the amount paid at the rate applicable under section 178 of the Finance Act 1989 for each complete tax month contained in the period (if any) beginning with the relevant date and ending at the end of the tax month in which the order for the payment is issued.
- (2A) *In relation to any complete tax month beginning before* 6th*April* 1974*which is contained in the last-mentioned period, subsection* (2)*above shall have effect as if the rate of interest specified in it were* 6*per cent. per annum (instead of the rate so specified or any other rate in force by virtue of subsection* (5)*below or section* 48(6)*of the Finance* (No.2) Act 1975).
- (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) For the purposes of subsection (2) above—
@@ -6560,7 +6560,7 @@
- (a) a repayment of corporation tax made in consequence of a claim by a company under section 239(3) to have the whole or any part of an amount of surplus advance corporation tax arising in the case of any accounting period treated as if it were advance corporation tax paid in respect of distributions made by the company in any earlier accounting period shall be treated as a repayment of corporation tax paid for the accounting period in the case of which that amount of surplus advance corporation tax arose; and
- (b) a repayment of income tax or corporation tax made on a claim under subsection (4) of section 419 shall be treated as if it were a repayment of corporation tax paid for the accounting period in which the repayment of, or of the part in question of, the loan or advance mentioned in that subsection was made. and
- (b) a repayment of income tax or corporation tax made on a claim under subsection (4) of section 419 shall be treated as if it were a repayment of corporation tax paid for the accounting period in which the repayment of, or of the part in question of, the loan or advance mentioned in that subsection was made; and
- (c) a repayment of corporation tax or income tax falling to be made as a result of a claim under section 393A(1) to have the whole or any part of a loss incurred in an accounting period set off against profits of an earlier accounting period (“*the earlier period*”)—
@@ -6570,7 +6570,7 @@
- (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) *Without prejudice to subsection* (2A)*above* the Treasury may by order from time to time increase or decrease the rate of interest by reference to which repayment supplements are calculated under subsection (2) above.
- (5) . . . The Treasury may by order from time to time increase or decrease the rate of interest by reference to which repayment supplements are calculated under subsection (2) above.
- (6) A repayment supplement shall not be payable under this section in respect of a payment made in consequence of an order or judgment of a court having power to allow interest on the payment.
@@ -6596,7 +6596,7 @@
- (b) a repayment of income tax falls to be made in respect of a payment received by a company in such an accounting period; or
- (c) a payment falls to be made to a company of the whole or part of the tax credit comprised in any franked investment income received by the company in such an accounting period ; or
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (d) a payment of R&D tax credit falls to be made to a company under Chapter 2 or 7 of Part 13 of CTA 2009 in respect of an accounting period; or
@@ -6612,6 +6612,8 @@
- (fc) a payment of theatre tax credit falls to be made to a company; or
- (fd) a payment of orchestra tax credit falls to be made to a company; or
- (g) a payment of first-year tax credit falls to be made to a company under Schedule A1 to the Capital Allowances Act,
then, from the material date until the order for repayment or payment is issued, the repayment or payment shall carry interest at the rate which, under section 89 of the Management Act, is for the time being the prescribed rate for the purposes of this section.
@@ -6620,7 +6622,7 @@
- (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) In relation to a repayment of income tax falling within subsection (1)(b) above or a payment of the whole or part of a tax credit falling within subsection (1)(c) above, the material date is the day after the end of the accounting period in which the payment referred to in subsection (1)(b) above or, as the case may be, the franked investment income referred to in subsection (1)(c) above was received by the company.
- (3) In relation to a repayment of income tax falling within subsection (1)(b) above . . . , the material date is the day after the end of the accounting period in which the payment referred to in subsection (1)(b) above . . . was received by the company.
- (3A) In relation to a payment of R&D tax credit falling within subsection (1)(d) above the material date is whichever is the later of—
@@ -6640,7 +6642,7 @@
For this purpose “*the filing date*”, in relation to a company tax return, has the same meaning as in Schedule 18 to the Finance Act 1998.
- (3C) In relation to a payment of film tax credit , television tax credit , video game tax credit or theatre tax credit the material date is whichever is the later of—
- (3C) In relation to a payment of film tax credit , television tax credit , video game tax credit , theatre tax credit or orchestra tax credit the material date is whichever is the later of—
- (a) the filing date for the company's company tax return for the accounting period for which the tax credit is payable, and
@@ -6722,13 +6724,13 @@
- (8A) Where—
- (a) interest has been paid to a company under subsection (1)(a) , (d), (e) (f), (fa), (fb) or (fc) above,
- (a) interest has been paid to a company under subsection (1)(a) , (d), (e) (f), (fa), (fb) , (fc) or (fd) above,
- (b) there is—
- (i) a change in the company’s assessed liability to corporation tax, or
- (ii) a change in the amount of the R&D tax credit . . . , land remediation tax credit or life assurance company tax creditor film tax creditor television tax credit or video game tax creditor theatre tax creditor first-year tax credit under Schedule A1 to the Capital Allowances Act payable to the company (which does not result in a change falling within sub-paragraph (i)),
- (ii) a change in the amount of the R&D tax credit . . . , land remediation tax credit or life assurance company tax creditor film tax creditor television tax credit or video game tax creditor theatre tax creditor orchestra tax creditor first-year tax credit under Schedule A1 to the Capital Allowances Act payable to the company (which does not result in a change falling within sub-paragraph (i)),
other than a change which in whole or in part corrects an error made by the Board or an officer of the Board, and
@@ -6744,7 +6746,7 @@
whether or not any previous assessment or determination has been made.
- (8BA) For the purposes of subsection (8A)(b) above, the cases where there is a change in the amount of the R&D tax credit . . . , the land remediation tax credit or the life assurance company tax creditor film tax creditor television tax credit or video game tax creditor theatre tax creditor first-year tax credit under Schedule A1 to the Capital Allowances Act payable to the company are those cases where an assessment, or an amendment to an assessment, is made to recover an amount of R&D tax credit . . . , land remediation tax credit or life assurance company tax creditor film tax creditor television tax credit or video game tax creditor theatre tax creditor first-year tax credit under Schedule A1 to the Capital Allowances Act paid to the company for the accounting period in question.
- (8BA) For the purposes of subsection (8A)(b) above, the cases where there is a change in the amount of the R&D tax credit . . . , the land remediation tax credit or the life assurance company tax creditor film tax creditor television tax credit or video game tax creditor theatre tax creditor orchestra tax creditor first-year tax credit under Schedule A1 to the Capital Allowances Act payable to the company are those cases where an assessment, or an amendment to an assessment, is made to recover an amount of R&D tax credit . . . , land remediation tax credit or life assurance company tax creditor film tax creditor television tax credit or video game tax creditor theatre tax creditor orchestra tax creditor first-year tax credit under Schedule A1 to the Capital Allowances Act paid to the company for the accounting period in question.
- (8C) In subsection (8A)(b) above “*error*” includes—
@@ -13431,7 +13433,7 @@
## SCHEDULE 31
#### Application of lower rate to income from savings and distributions.
#### The charge to income tax.
##### 1A
@@ -13467,7 +13469,7 @@
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#### Relief for rent etc. not paid.
#### Appeals against determinations under . . . Chapter 4 of Part 3 of ITTOIA 2005.
##### 21A
@@ -13485,7 +13487,7 @@
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#### Disposal or exercise of rights in pursuance of deposits.
#### Deep discount securities.
##### 31ZB
@@ -13503,7 +13505,7 @@
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#### Costs of establishing employee share ownership trusts: relief.
#### Payments to trustees of approved profit sharing schemes.
### Connected persons
@@ -13643,6451 +13645,6397 @@
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#### Relief for necessary expenses.
##### 79A
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##### 79B
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##### 82A
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##### 82B
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##### 83A
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##### 84A
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##### 85A
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##### 85B
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##### 86A
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#### Application of lower rate to company distributions.
##### 87A
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#### Meaning of “distribution”.
##### 88A
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##### 88B
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##### 88C
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##### 88D
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##### 91A
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##### 91B
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##### 91BA
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##### 91C
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### Payments for restrictive undertakings
##### 76ZA
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### Seconded employees
##### 76ZB
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### Counselling and retraining expenses
##### 76ZC
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##### 76ZD
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##### 76ZE
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### Redundancy payments etc
##### 76ZF
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##### 76ZG
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##### 76ZH
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##### 76ZI
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##### 76ZJ
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### Contributions to local enterprise organisations or urban regeneration companies
##### 76ZK
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### Unpaid remuneration
##### 76ZL
- (1) This section applies if—
- (a) an amount is charged in respect of employees' remuneration in the accounts for a period of a company to which section 76 applies,
- (b) the amount would apart from this section be brought into account under section 76 as expenses payable, and
- (c) the remuneration is not paid before the end of the period of 9 months immediately following the end of the period of account.
- (2) If the remuneration is paid after the end of that period of 9 months, the amount is brought into account for the period of account in which it is paid.
- (3) But—
- (a) subsection (2) is subject to section 86 of FA 1989 (spreading of relief for acquisition expenses), and
- (b) in interpreting that section the remuneration is treated as expenses payable which fall to be included at Step 1 in section 76(7) for the period of account in which the remuneration is paid.
- (4) The amount is not brought into account under section 76 as expenses payable if it is not paid.
##### 76ZM
- (1) For the purposes of section 76ZL an amount charged in the accounts in respect of employees' remuneration includes an amount for which provision is made in the accounts with a view to its becoming employees' remuneration.
- (2) For the purposes of section 76ZL it does not matter whether an amount is charged for—
- (a) particular employments, or
- (b) employments generally.
- (3) If the profits of the company are calculated before the end of the 9 month period mentioned in section 76ZL(1)(c)—
- (a) it must be assumed, in making the calculation, that any remuneration which is unpaid when the calculation is made will not be paid before the end of that period, but
- (b) if the remuneration is subsequently paid before the end of that period, nothing in this subsection prevents the calculation being revised and any tax return being amended accordingly.
- (4) For the purposes of this section and section 76ZL remuneration is paid when it—
- (a) is treated as received by an employee for the purposes of ITEPA 2003 by section 18 or 19 of that Act (receipt of money and non-money earnings), or
- (b) would be so treated if it were not exempt income.
- (5) In this section and section 76ZL—
- “*employee*” includes an office-holder and “*employment*” therefore includes an office, and
- “*remuneration*” means an amount which is or is treated as earnings for the purposes of Parts 2 to 7 of ITEPA 2003.
### Car or motor cycle hire
##### 76ZN
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##### 76ZO
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##### 95ZA
- (1) If the total amount of relevant distributions received by a company in an accounting period exceeds £50,000, those distributions are to be taken into account in calculating for corporation tax purposes the profits of the company in that period (and accordingly section 130(2) of CTA 2009 does not apply in relation to those distributions).
- (2) A company (“company A”) receives a “relevant distribution” if—
- (a) it receives a distribution made by a company . . . (“company B”),
- (b) the value of the shares or stock in respect of which the distribution is made (“the holding”) is materially reduced by reason of the distribution,
- (c) a profit on the sale of the holding (to anyone other than company B) would be taken into account in calculating company A's profits in respect of relevant insurance business, and
- (d) either—
- (i) the holding amounts to, or is an ingredient in a holding amounting to, 10% of all holdings of the same class in company B, or
- (ii) the period between the acquisition by company A of the holding and that company first taking steps to dispose of the holding does not exceed 30 days.
- (3) In this section “*relevant insurance business*” means any kind of insurance business other than business in relation to which section 111 of the Finance Act 2012 applies.
- (4) Section 177(7) of TCGA 1992 (provision supplementing provision corresponding to subsection (2)(d)(i) above) applies for the purposes of subsection (2)(d)(i).
- (5) Section 731(4) below (interpretation of “taking steps to dispose of securities”) applies for the purposes of subsection (2)(d)(ii) as if the reference to the securities were to the holding.
##### 95A
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### Relief for post-cessation expenditure
##### 109A
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### Change of residence
##### 110A
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#### Interest etc. paid in respect of certain securities.
### Limited liability partnerships
##### 118ZA
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##### 118ZB
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##### 118ZC
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##### 118ZD
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### Non-active general partners and non-active members of limited liability partnerships
##### 118ZE
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##### 118ZF
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#### Dividends etc. paid by one member of a group to another.
##### 118ZG
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##### 118ZH
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##### 118ZI
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##### 18ZJ
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##### 118ZK
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### Partnerships exploiting films
##### 118ZL
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##### 118ZM
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### Partners: meaning of “contribution to the trade”
#### Life assurance premiums paid by employer
##### 118ZN
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##### 118ZO
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### Chapter VIIA — Paying and collecting agents
##### 118A
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##### 118B
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##### 118C
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##### 118D
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##### 118E
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##### 118F
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##### 118G
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##### 118H
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##### 118I
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##### 118J
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##### 118K
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#### Levies and repayments under the Financial Services and Markets Act 2000.
##### 126A
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##### 127A
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##### 129A
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##### 129B
- (1) The income which, as income deriving from investments of a description specified in any of the relevant provisions, is eligible for relief from tax by virtue of that provision shall be taken to include any relevant stock lending fee.
- (2) For the purposes of this section the relevant provisions are sections 613(4) and 614(3) and section 186 of the Finance Act 2004.
- (3) In this section “*relevant stock lending fee*”, in relation to investments of any description, means any amount, in the nature of a fee, which is payable in connection with any stock lending arrangement relating to investments which, but for any transfer under the arrangement, would be investments of that description.
- (4) In this section “*stock lending arrangement*” has the same meaning as in section 263B of the 1992 Act.
#### Life assurance premiums paid by employer
#### Losses from UK property business.
#### Certified unit trusts: distributions.
##### 140A
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##### 140B
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##### 140C
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##### 140D
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##### 140E
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##### 140F
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##### 140G
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##### 140H
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#### Dividends paid to investment trusts.
##### 144A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 146A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 151A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Building societies: time for payment of tax.
##### 156A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 157A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 161A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 161B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Determination of reduced rate for building societies and composite rate for banks etc.
#### Treatment of oil extraction activities etc. for tax purposes.
##### 177A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 177B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Contributions in respect of share option gains
#### Savings banks: exemption from tax.
##### 187A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Removal expenses and benefits
##### 191A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 191B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 192A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reserves of marketing boards and certain other statutory bodies.
##### 197A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Mileage allowances
##### 197AD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 520.
##### 197AF
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AG
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AH
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Mileage allowances
##### 197B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Sporting and recreational facilities
##### 197G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 198A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 201AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 201A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 202A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 202B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203FA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203FB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 206A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 207A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfers of trade to obtain balancing allowances
##### 209A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 209B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 213A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Industrial and provident society dividends etc
##### 230A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 231A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 231AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 231AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 231B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sections 434AZA and 434AZB: supplementary
##### 234A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 245A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 245B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Chapter VA — Foreign Income Dividends
### Election by company paying dividend
#### Introductory.
##### 246A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Recipient of foreign income dividend
##### 246C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Companies: payments and receipts
##### 246E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Foreign source profit and distributable foreign profit
##### 246I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Matching of dividend with distributable foreign profit
##### 246J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246M
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Repayment or set-off of advance corporation tax
##### 246N
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246P
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246Q
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246R
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### International headquarters companies
##### 246S
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246T
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246U
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246V
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246W
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Adjustments
##### 246X
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Application of this Chapter
##### 246Y
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Modifications where tax charged under section 35 of CTA 2009.
### Approved share incentive plans
##### 251A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 251B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 251C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Overseas life assurance business.
##### 251D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 256A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 256B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Non-resident policies and off-shore capital redemption policies.
##### 257BA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257B
- (1) Where—
- (a) a man is entitled to relief under section 257A, but
- (b) the amount which he is entitled to deduct from his total income by virtue of that section exceeds what is left of his total income after all other deductions have been made from it,
his wife shall be entitled to a deduction from her total income of an amount equal to the excess.
- (2) In determining for the purposes of subsection (1)(b) above the amount that is left of a person’s total income for a year of assessment after other deductions have been made from it, there shall be disregarded any deduction made—
- (a) on account of any payments of relevant loan interest which become due in that year and to which section 369 applies, or
- (b) under section 289 or
- (c) on account of any payments to which section 593(2) or 639(3) applies,or
- (d) on account of any payments to which section 54(5) of the Finance Act 1989 applies.
, or
- (e) on account of any payments to which section 32(4) of the Finance Act 1991 applies.
- (3) This section shall not apply for a year of assessment unless the claimant’s husband has given to the inspector written notice that it is to apply; and any such notice—
- (a) shall be given not later than six years after the end of the year of assessment to which it relates,
- (b) shall be in such form as the Board may determine, and
- (c) shall be irrevocable.
##### 257C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 261A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 266A
- (1) This section applies if—
- (a) pursuant to an employer-financed retirement benefits scheme, the employer in any year of assessment pays a sum with a view to the provision of any relevant benefits for or in respect of any employee of that employer, and
- (b) the payment is made under such an insurance or contract as is mentioned in section 266.
This section applies whether or not the accrual of the relevant benefits is dependent on any contingency.
- (2) Relief, if not otherwise allowable, shall be given to that employee under section 266 in respect of the payment to the extent, if any, to which such relief would have been allowable to him if—
- (a) the payment had been made by him, and
- (b) the insurance or contract under which the payment is made had been made with him.
- (3) For the purposes of subsection (1)(a) benefits are provided in respect of an employee if they are provided for the employee’s spouse, widow or widower, children, dependants or personal representatives.
- (4) If a sum within subsection (1) is paid with a view to the provision of benefits for or in respect of more than one employee of the employer, part of it is to be treated as paid for or in respect of each of them.
- (5) The amount treated as paid for or in respect of each employee is—
$$A×BC$where—A is the sum paid,B is the amount which would have had to be paid to secure the benefits to be provided for or in respect of the employee in question, andC is the total amount which would have had to be paid to secure the benefits to be provided for or in respect of all the employees if separate payments had been made in the case of each of them.$
- (6) This section does not apply if—
- (a) in the year of assessment in which the sum is paid the earnings from the employee’s employment are (or, if there are none, would be if there were any) earnings charged on remittance, or
- (b) the employee is not domiciled in the United Kingdom in the tax year in which the sum is paid and the conditions in subsection (7) are met.
- (7) Those conditions are—
- (a) that the employment is with a foreign employer, and
- (b) that, on a claim made by the employee, the Board are satisfied that the pension scheme corresponds to a registered pension scheme.
- (8) In subsection (6)(a) “*earnings charged on remittance*” means earnings which are taxable earnings under—
- (a) section 22 of ITEPA 2003 (chargeable overseas earnings for year when remittance basis applies and employee outside section 26), or
- (b) section 26 of that Act (foreign earnings for year when remittance basis applies and employee meets section 26A requirement).
- (9) In this section—
- “*employer-financed retirement benefits scheme*”, and
- “*relevant benefits*”,
- have the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act).
#### Gifts of shares, securities and real property to charities etc
##### 282A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 282B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Overseas life assurance business: life policies.
##### 289A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 289B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 290A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions for approval of retirement benefit schemes.
##### 291A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 291B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 299A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 299B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 300A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 301A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 303AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cessation of approval: tax on certain schemes.
##### 303A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Termination of relief under this Chapter, and transitional provisions.
##### 304A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 305A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation in respect of other business: incorporated friendly societies qualifying for exemption.
#### Transfers of other business
##### 326A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 326B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 326BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 326C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 326D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 327A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assets of branch of registered friendly society to be treated as assets of society after incorporation.
##### 329AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 329AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 329A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 329B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 329C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 331A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 332A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 333A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 333B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 338B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 337A
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 338A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 339A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 342A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Revocable settlements allowing release of obligation.
#### Cancellation of corporation tax advantage.
##### 343ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 343A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Stock lending.
#### Imputation of chargeable profits and creditable tax of controlled foreign companies
#### Change in ownership of company with investment business: deductions generally
##### 347A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 347B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special rule for computing chargeable profits.
##### 349ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 349A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Election that assets not be foreign business assets
##### 349B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 349C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 349D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 349E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 350A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 356A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 356B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 356C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 356D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Section 432B apportionment: supplementary provisions.
##### 357A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 357B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 357C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 360A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Profits reserved for policy holders and annuitants.
#### Returns.
##### 367A
- (1) Sections 353 and 365 have effect as if—
- (a) purchase and resale arrangements involved the making of a loan, and
- (b) alternative finance return were interest.
- (2) Section 366 has effect accordingly.
- (3) In this section—
- “*alternative finance return*” has the meaning given in sections 564I to 564L of ITA 2007, and
- “*purchase and resale arrangements*” means arrangements to which section 564C of ITA 2007 applies.
#### Interpretation of credit code.
##### 374A
- (1) This section applies where, in the case of any loan, interest on the loan never has been relevant loan interest or the borrower never has been a qualifying borrower.
- (2) Without prejudice to subsection (3) below, in relation to a payment of interest—
- (a) as respects which either of the conditions mentioned in paragraphs (a) and (b) of section 374(1) is fulfilled, and
- (b) from which a deduction was made as mentioned in section 369(1),
section 369 shall have effect as if the payment of interest were a payment of relevant loan interest made by a qualifying borrower.
- (3) Nothing in subsection (2) above shall be taken as regards the borrower as entitling him to make any deduction or to retain any amount deducted and, accordingly, where any amount has been deducted, he shall be liable to make good that amount and an officer of the Board may make such assessments as may in his judgment be required for recovering that amount.
- (4) The Management Act shall apply to an assessment under subsection (3) above as if it were an assessment to income tax for the year of assessment in which the deduction was made . . . .
- (5) If the borrower fraudulently or negligently makes any false statement or representation in connection with the making of any deduction, he shall be liable to a penalty not exceeding the amount deducted.
##### 375A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 376A
- (1) The Board shall maintain, and publish in such manner as they consider appropriate, a register for the purposes of section 376(4).
- (1A) The following are entitled to be registered—
- (a) a person who has permission under Part 4A of the Financial Services and Markets Act 2000—
- (i) to accept deposits; or
- (ii) to effect or carry out contracts of general insurance;
- (b) a 90 per cent subsidiary of a person mentioned in—
- (i) section 376(4)(e); or
- (ii) paragraph (a) above;
- (c) any other body whose activities and objects appear to the Board to qualify it for registration.
- (2) If the Board are satisfied that an applicant for registration is entitled to be registered, they may register the applicant generally or in relation to any description of loan specified in the register, with effect from such date as may be so specified; and a body which is so registered shall become a qualifying lender in accordance with the terms of its registration.
- (3) The registration of any body may be varied by the Board—
- (a) where it is general, by providing for it to be in relation to a specified description of loan, or
- (b) where it is in relation to a specified description of loan, by removing or varying the reference to that description of loan,
and where they do so, they shall give the body written notice of the variation and of the date from which it is to have effect.
- (4) If it appears to the Board at any time that a body which is registered under this section would not be entitled to be registered if it applied for registration at that time, the Board may by written notice given to the body cancel its registration with effect from such date as may be specified in the notice.
- (5) The date specified in a notice under subsection (3) or (4) above shall not be earlier than the end of the period of 30 days beginning with the date on which the notice is served.
- (6) Any body which is aggrieved by the failure of the Board to register it under this section, or by the variation or cancellation of its registration, may appeal, by notice given to the Board before the end of the period of 30 days beginning with the date on which the body is notified of the Board’s decision. . . .
### Losses from UK property business or overseas property business
##### 379A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 379B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements made under old law.
##### 384A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Losses from UK property business or overseas property business
##### 392A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 392B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 393A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 393B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Section 591C: supplementary.
##### 403ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403ZC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403ZD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403ZE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 411ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 411A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: companies.
#### Approval of schemes.
#### Arrangements to avoid section 812.
#### Interest on tax overpaid.
#### Taxation in respect of other business: incorporated friendly societies qualifying for exemption.
##### 431ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfers of other business
#### Interest on tax overpaid.
##### 434A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on tax overpaid.
##### 438A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Imputation of chargeable profits and creditable tax of controlled foreign companies
##### 440A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 441A
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Classes of life assurance business
##### 431B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431BA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431EA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Basis of taxation etc
##### 431G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432YA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432CA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432CB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 79A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 79B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 82A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 82B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 83A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 84A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 85A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 85B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 86A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for contributions in respect of share option gains.
##### 87A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Definitions.
##### 88A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 88B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 88C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 88D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 91A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 91B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 91BA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 91C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Payments for restrictive undertakings
##### 76ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Seconded employees
##### 76ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Counselling and retraining expenses
##### 76ZC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 76ZD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 76ZE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Redundancy payments etc
##### 76ZF
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 76ZG
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 76ZH
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 76ZI
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 76ZJ
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Contributions to local enterprise organisations or urban regeneration companies
##### 76ZK
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Unpaid remuneration
##### 76ZL
- (1) This section applies if—
- (a) an amount is charged in respect of employees' remuneration in the accounts for a period of a company to which section 76 applies,
- (b) the amount would apart from this section be brought into account under section 76 as expenses payable, and
- (c) the remuneration is not paid before the end of the period of 9 months immediately following the end of the period of account.
- (2) If the remuneration is paid after the end of that period of 9 months, the amount is brought into account for the period of account in which it is paid.
- (3) But—
- (a) subsection (2) is subject to section 86 of FA 1989 (spreading of relief for acquisition expenses), and
- (b) in interpreting that section the remuneration is treated as expenses payable which fall to be included at Step 1 in section 76(7) for the period of account in which the remuneration is paid.
- (4) The amount is not brought into account under section 76 as expenses payable if it is not paid.
##### 76ZM
- (1) For the purposes of section 76ZL an amount charged in the accounts in respect of employees' remuneration includes an amount for which provision is made in the accounts with a view to its becoming employees' remuneration.
- (2) For the purposes of section 76ZL it does not matter whether an amount is charged for—
- (a) particular employments, or
- (b) employments generally.
- (3) If the profits of the company are calculated before the end of the 9 month period mentioned in section 76ZL(1)(c)—
- (a) it must be assumed, in making the calculation, that any remuneration which is unpaid when the calculation is made will not be paid before the end of that period, but
- (b) if the remuneration is subsequently paid before the end of that period, nothing in this subsection prevents the calculation being revised and any tax return being amended accordingly.
- (4) For the purposes of this section and section 76ZL remuneration is paid when it—
- (a) is treated as received by an employee for the purposes of ITEPA 2003 by section 18 or 19 of that Act (receipt of money and non-money earnings), or
- (b) would be so treated if it were not exempt income.
- (5) In this section and section 76ZL—
- “*employee*” includes an office-holder and “*employment*” therefore includes an office, and
- “*remuneration*” means an amount which is or is treated as earnings for the purposes of Parts 2 to 7 of ITEPA 2003.
### Car or motor cycle hire
##### 76ZN
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 76ZO
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 95ZA
- (1) If the total amount of relevant distributions received by a company in an accounting period exceeds £50,000, those distributions are to be taken into account in calculating for corporation tax purposes the profits of the company in that period (and accordingly section 130(2) of CTA 2009 does not apply in relation to those distributions).
- (2) A company (“company A”) receives a “relevant distribution” if—
- (a) it receives a distribution made by a company . . . (“company B”),
- (b) the value of the shares or stock in respect of which the distribution is made (“the holding”) is materially reduced by reason of the distribution,
- (c) a profit on the sale of the holding (to anyone other than company B) would be taken into account in calculating company A's profits in respect of relevant insurance business, and
- (d) either—
- (i) the holding amounts to, or is an ingredient in a holding amounting to, 10% of all holdings of the same class in company B, or
- (ii) the period between the acquisition by company A of the holding and that company first taking steps to dispose of the holding does not exceed 30 days.
- (3) In this section “*relevant insurance business*” means any kind of insurance business other than business in relation to which section 111 of the Finance Act 2012 applies.
- (4) Section 177(7) of TCGA 1992 (provision supplementing provision corresponding to subsection (2)(d)(i) above) applies for the purposes of subsection (2)(d)(i).
- (5) Section 731(4) below (interpretation of “taking steps to dispose of securities”) applies for the purposes of subsection (2)(d)(ii) as if the reference to the securities were to the holding.
##### 95A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Relief for post-cessation expenditure
##### 109A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Change of residence
##### 110A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses of insurance companies
### Limited liability partnerships
##### 118ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118ZC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118ZD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Non-active general partners and non-active members of limited liability partnerships
##### 118ZE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118ZF
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exempt distributions.
##### 118ZG
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118ZH
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118ZI
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 18ZJ
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118ZK
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Partnerships exploiting films
##### 118ZL
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118ZM
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Partners: meaning of “contribution to the trade”
#### Interest etc. paid in respect of certain securities.
##### 118ZN
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118ZO
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Chapter VIIA — Paying and collecting agents
##### 118A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 118K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Levies and repayments under the Financial Services and Markets Act 2000.
##### 126A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 127A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 129A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 129B
- (1) The income which, as income deriving from investments of a description specified in any of the relevant provisions, is eligible for relief from tax by virtue of that provision shall be taken to include any relevant stock lending fee.
- (2) For the purposes of this section the relevant provisions are sections 613(4) and 614(3) and section 186 of the Finance Act 2004.
- (3) In this section “*relevant stock lending fee*”, in relation to investments of any description, means any amount, in the nature of a fee, which is payable in connection with any stock lending arrangement relating to investments which, but for any transfer under the arrangement, would be investments of that description.
- (4) In this section “*stock lending arrangement*” has the same meaning as in section 263B of the 1992 Act.
#### Life assurance premiums paid by employer
#### Relevant loan interest.
#### Taxation in respect of other business: withdrawal of “qualifying” status from incorporated friendly society.
##### 140A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Maximum benefits payable to members.
##### 144A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 146A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 151A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Funds of funds: distributions.
##### 156A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 157A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 161A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 161B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Distribution accounts.
#### Interest paid on deposits with banks etc.
##### 177A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 177B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Contributions in respect of share option gains
#### Savings banks: exemption from tax.
##### 187A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Removal expenses and benefits
##### 191A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 191B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 192A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reserves of marketing boards and certain other statutory bodies.
##### 197A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Mileage allowances
##### 197AD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 520.
##### 197AF
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AG
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AH
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Mileage allowances
##### 197B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Sporting and recreational facilities
##### 197G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 198A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 200J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 201AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 201A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 202A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 202B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203FA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203FB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 206A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 207A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfers of trade to obtain balancing allowances
##### 209A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 209B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 213A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Industrial and provident society dividends etc
##### 230A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 231A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 231AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 231AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 231B
- (1) This section applies in any case where—
- (a) a person (“A”) is entitled to a tax credit in respect of a qualifying distribution;
- (b) arrangements subsist such that another person (“B”) obtains, whether directly or indirectly, a payment representing any of the value of the tax credit;
- (c) the arrangements (whether or not made directly between A and B) were entered into for an unallowable purpose; and
- (d) the condition in subsection (2) below is satisfied.
- (2) The condition is that if B had been the person entitled to the tax credit and the qualifying distribution to which it relates, and had received the distribution when it was made, then—
- (a) B would not have been entitled to obtain any payment under section 231(2) or (3) in respect of the tax credit; and
- (b) if B is a company, B could not have used the income consisting of the distribution to frank a distribution actually made in the accounting period in which it would have received the distribution to which the tax credit relates.
- (3) This section does not apply if and to the extent that any other provision of the Tax Acts has the effect of cancelling or reducing the tax advantage which would otherwise be obtained by virtue of the arrangements.
- (4) Where this section applies—
- (a) no claim shall be made under section 231(2) for payment of the amount of the tax credit;
- (b) no claim shall be made under section 397(2) of ITTOIA 2005. . . in respect of the tax credit; and
- (c) the income consisting of the distribution in respect of which A is entitled to the tax credit shall not be regarded for the purposes of section 241 as franked investment income; . . .
- (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) For the purposes of this section, the question whether any arrangements were entered into for an “unallowable purpose” shall be determined in accordance with subsections (6) and (7) below.
- (6) Arrangements are entered into for an unallowable purpose if the purposes for which at least one person is a party to the arrangements include a purpose which is not amongst the business or other commercial purposes of that person.
- (7) Where one of the purposes for which a person enters into any arrangements is the purpose of securing that that person or another obtains a tax advantage, that purpose shall be regarded as a business or other commercial purpose of the person only if it is neither the main purpose, nor one of the main purposes, for which the person enters into the arrangements.
- (8) Any reference in this section to a person obtaining a tax advantage includes a reference to a person obtaining a payment representing any of the value of a tax credit in circumstances where, had the person obtaining the payment been entitled to the tax credit and the qualifying distribution to which it relates, that person—
- (a) would not have been entitled to obtain any payment under section 231(2) or (3) in respect of the tax credit; and
- (b) if that person is a company, could not have used the income consisting of the distribution to frank a distribution actually made in the accounting period in which it would have received the distribution to which the tax credit relates.
- (9) If an amount representing any of the value of a tax credit to which a person is entitled is applied at the direction of, or otherwise in favour of, some other person (whether by way of set off or otherwise), the case shall be treated for the purposes of this section as one where that other person obtains a payment representing any of the value of the tax credit.
- (10) In determining for the purposes of subsections (2)(b) and (8)(b) b above whether a company could have used the income consisting of the distribution in question to frank a distribution of the company, the company shall be taken to use its actual franked investment income to frank distributions before using the income consisting of the distribution in question.
- (11) References in this section to using franked investment income to frank a distribution of a company have the same meaning as in Chapter V of Part VI.
##### 432F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous provisions relating to life assurance business
##### 434AZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction in chargeable profits for certain financing income
##### 434AZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434AZC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434B
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 436A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 436B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 437A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 438B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 438C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 439A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 439B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 440B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 440C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special rule for computing chargeable profits.
##### 440D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 441B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 442A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction in chargeable profits: failure to qualify for exemptions
##### 444AZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ABA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ABAA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ABB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ABBA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ABC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ABD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ACZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ACA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AEA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AEB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AEC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AECA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AECB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AECC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AED
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Surpluses of mutual and former mutual businesses
##### 444AF
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AG
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AH
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AI
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AJ
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AK
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AL
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Provisions applying in relation to overseas life insurance companies
##### 444B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Equalisation reserves
##### 444BA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444BC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444BD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 458A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 461A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 461B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 461C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 461D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 462A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treatment of umbrella funds
##### 465A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deductions: asset transferred within group.
##### 468EE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Distributions of authorised unit trusts: general
##### 468H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Dividend and foreign income distributions
##### 468J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Interest distributions
##### 468L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468M
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468N
- (1) Subsection (2) below applies where—
- (a) an interest distribution is made for a distribution period to a unit holder; and
- (b) the gross income entered in the distribution accounts for the purposes of computing the total amount available for distribution to unit holders does not derive from eligible income entirely.
- (2) Where this subsection applies, the obligation to deduct under section 349(2) shall not apply to the relevant amount of the interest distribution to the unit holder if the residence condition is on the distribution date fulfilled with respect to him.
- (3) Section 468O makes provision with respect to the circumstances in which the residence condition is fulfilled with respect to a unit holder.
- (4) This is how to calculate the relevant amount of the interest distribution—
$$R=AxBC$Where—R = the relevant amount;A = the amount of the interest distribution before deduction of tax to the unit holder in question;B = such amount of the gross income as derives from eligible income;C = the amount of the gross income.$
- (5) In subsection (4) above the references to the gross income are references to the gross income entered as mentioned in subsection (1)(b) above.
##### 468O
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468P
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468PA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468PB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Distributions to corporate unit holder
##### 468Q
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468R
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 469A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 472A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 477A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 477B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 480A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 480B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of chargeable profits and creditable tax
##### 480C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
##### 482A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### PETROLEUM EXTRACTION ACTIVITIES
##### 494AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 494A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 496A
Schedule 19B to this Act (exploration expenditure supplement) shall have effect.
##### 496B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### How averaging claim is given effect
##### 501A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 501B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Chapter 5A — Special rules for long funding leases of plant or machinery: corporation tax
### Introductory
##### 502A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessors under long funding finance leases
##### 502B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessors under long funding operating leases
##### 502E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessors under long funding finance or operating leases: avoidance etc
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502GA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502GB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502GC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502GD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Insurance company as lessor
##### 502H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessees under long funding finance leases
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessees under long funding operating leases
##### 502K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Interpretation of Chapter
##### 502L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 504A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowances for expenditure on purchase of patent rights: post-31st March 1986 expenditure.
#### Arrangements made under old law.
##### 506A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 506B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 506C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of United Kingdom taxes by amount of credit due.
##### 508A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 508B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 510A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 519A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery of tax credits incorrectly paid.
#### Recovery of tax credits incorrectly paid.
#### Relief by agreement with other territories.
#### Recovery of tax credits incorrectly paid.
### Designs
##### 537A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 537B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The qualifying subsidiaries requirement
##### 539ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 539A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for individuals.
##### 546A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 546B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 546C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 546D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 547A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 548A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 548B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 551A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 552ZA
- (1) This section supplements section 552 and shall be construed as one with it.
- (2) Where the obligations under any policy or contract of the body that issued, entered into or effected it (“*the original insurer*”) are at any time the obligations of another body (“*the transferee*”) to whom there has been a transfer of the whole or any part of a business previously carried on by the original insurer, section 552 shall have effect in relation to that time, except where the chargeable event—
- (a) happened before the transfer, and
- (b) in the case of a death or an assignment, is an event of which the notification mentioned in subsection (6) or (7) of that section was given before the transfer,
as if the policy or contract had been issued, entered into or effected by the transferee.
- (3) Where, in consequence of . . . section 514(1) of ITTOIA 2005, paragraph (a) or (b) of section 552(1) requires certificates to be delivered in respect of two or more surrenders, happening in the same year, of part of or a share in the rights conferred by the policy or contract, a single certificate may be delivered under the paragraph in question in respect of all those surrenders (and may treat them as if they together constituted a single surrender) unless between the happening of the first and the happening of the last of them there has been—
- (a) an assignment of part of or a share in the rights conferred by the policy or contract; or
- (b) an assignment, otherwise than for money or money’s worth, of the whole of the rights conferred by the policy or contract.
- (4) Where the appropriate policy holder is two or more persons—
- (a) section 552(1)(a) requires a certificate to be delivered to each of them; but
- (b) nothing in section 552 or this section requires a body to deliver a certificate under subsection (1)(a) of that section to any person whose address has not been provided to the body (or to another body, at a time when the obligations under the policy or contract were obligations of that other body).
- (5) A certificate under section 552(1)(b) or (3)—
- (a) shall be in a form prescribed for the purpose by the Board; and
- (b) shall be delivered by any means prescribed for the purpose by the Board;
and different forms, or different means of delivery, may be prescribed for different cases or different purposes.
- (6) The Board may by regulations make such provision as they think fit for securing that they are able—
- (a) to ascertain whether there has been or is likely to be any contravention of the requirements of section 552 or this section; and
- (b) to verify any certificate under that section.
- (7) Regulations under subsection (6) above may include, in particular, provisions requiring persons to whom premiums under any policy are or have at any time been payable—
- (a) to supply information to the Board; and
- (b) to make available books, documents and other records for inspection on behalf of the Board.
- (8) Regulations under subsection (6) above may—
- (a) make different provision for different cases; and
- (b) contain such supplementary, incidental, consequential or transitional provision as appears to the Board to be appropriate.
##### 552ZB
- (1) The Commissioners for Her Majesty's Revenue and Customs may make regulations—
- (a) requiring relevant persons—
- (i) to provide prescribed information to persons who apply for the issue of qualifying policies or who are, or may be, required to make statements under paragraph B3(2) of Schedule 15;
- (ii) to provide to an officer of Revenue and Customs prescribed information about qualifying policies which have been issued by them or in relation to which they are or have been a relevant transferee;
- (b) making such provision (not falling within paragraph (a)) as the Commissioners think fit for securing that an officer of Revenue and Customs is able—
- (i) to ascertain whether there has been or is likely to be any contravention of the requirements of the regulations or of paragraph B3(2) of Schedule 15;
- (ii) to verify any information provided to an officer of Revenue and Customs as required by the regulations.
- (2) The provision that may be made by virtue of subsection (1)(b) includes, in particular, provision requiring relevant persons to make available books, documents and other records for inspection by or on behalf of an officer of Revenue and Customs.
- (3) The regulations may—
- (a) make different provision for different cases or circumstances, and
- (b) contain incidental, supplementary, consequential, transitional, transitory or saving provision.
- (4) In this section—
- “*prescribed*” means prescribed by the regulations,
- “*qualifying policy*” includes a policy which would be a qualifying policy apart from—paragraph A1(2), B1(2), B2(2) or B3(3) of Schedule 15, orparagraph 17(2)(za) of that Schedule (including as applied by paragraph 18), and
- “*relevant person*” means a person—who issues, or has issued, qualifying policies, orwho is, or has been, a relevant transferee in relation to qualifying policies.
- (5) For the purposes of this section a person (“X”) is at any time a “*relevant transferee*” in relation to a qualifying policy if the obligations under the policy of its issuer are at that time the obligations of X as a result of there having been a transfer to X of the whole or any part of a business previously carried on by the issuer.
##### 552A
- (1) This section has effect for the purpose of securing that, where it applies to an overseas insurer, another person is the overseas insurer’s tax representative.
- (2) In this section “*overseas insurer*” means a person who is not resident in the United Kingdom who carries on a business which consists of or includes the effecting and carrying out of—
- (a) policies of life insurance;
- (b) contracts for life annuities; or
- (c) capital redemption policies.
- (3) This section applies to an overseas insurer—
- (a) if the condition in subsection (4) below is satisfied on the designated day; or
- (b) where that condition is not satisfied on that day, if it has subsequently become satisfied.
- (4) The condition mentioned in subsection (3) above is that—
- (a) there are in force relevant insurances the obligations under which are obligations of the overseas insurer in question or of an overseas insurer connected with him; and
- (b) the total amount or value of the gross premiums paid under those relevant insurances is £1 million or more.
- (5) In this section “*relevant insurance*” means any policy of life insurance, contract for a life annuity or capital redemption policy . . . in the case of which—
- (a) the holder is resident in the United Kingdom;
- (b) the obligations of the insurer are obligations of a person not resident in the United Kingdom; and
- (c) those obligations are not attributable to a branch or agency of that person’s in the United Kingdom.
- (6) Before the expiration of the period of three months following the day on which this section first applies to an overseas insurer, the overseas insurer must nominate to the Board a person to be his tax representative.
- (7) A person shall not be a tax representative unless—
- (a) if he is an individual, he is resident in the United Kingdom and has a fixed place of residence there, or
- (b) if he is not an individual, he has a business establishment in the United Kingdom,
and, in either case, he satisfies such other requirements (if any) as are prescribed in regulations made for the purpose by the Board.
- (8) A person shall not be an overseas insurer’s tax representative unless—
- (a) his nomination by the overseas insurer has been approved by the Board; or
- (b) he has been appointed by the Board.
- (9) The Board may by regulations make provision supplementing this section; and the provision that may be made by any such regulations includes provision with respect to—
- (a) the making of a nomination by an overseas insurer of a person to be his tax representative;
- (b) the information which is to be provided in connection with such a nomination;
- (c) the form in which such a nomination is to be made;
- (d) the powers and duties of the Board in relation to such a nomination;
- (e) the procedure for approving, or refusing to approve, such a nomination, and any time limits applicable to doing so;
- (f) the termination, by the overseas insurer or the Board, of a person’s appointment as a tax representative;
- (g) the appointment by the Board of a person as the tax representative of an overseas insurer (including the circumstances in which such an appointment may be made);
- (h) the nomination by the overseas insurer, or the appointment by the Board, of a person to be the tax representative of an overseas insurer in place of a person ceasing to be his tax representative;
- (j) circumstances in which an overseas insurer to whom this section applies may, with the Board’s agreement, be released (subject to any conditions imposed by the Board) from the requirement that there must be a tax representative;
- (k) appeals to the tribunal against decisions of the Board under this section or regulations under it.
- (10) The provision that may be made by regulations under subsection (9) above also includes provision for or in connection with the making of other arrangements between the Board and an overseas insurer for the purpose of securing the discharge by or on behalf of the overseas insurer of the relevant duties, within the meaning of section 552B.
- (11) Section 1122 of CTA 2010 (connected persons) applies for the purposes of this section.
- (12) In this section—
- “*arrangements*” means arrangements of any kind, whether in writing or not (and includes a series of arrangements, whether or not between the same parties);
- “*business or other commercial purposes*” includes the efficient management of investments;
- “*franked investment income*” has the same meaning as in Chapter V of Part VI and references to income consisting of a distribution shall be construed accordingly;
- “*tax advantage*” has the meaning given by section 1139 of CTA 2010.
#### Sections 434AZA and 434AZB: supplementary
##### 234A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 245A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 245B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Chapter VA — Foreign Income Dividends
### Election by company paying dividend
#### Determination of policy holders’ share for purposes of s.438B
##### 246A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Recipient of foreign income dividend
##### 246C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Companies: payments and receipts
##### 246E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Foreign source profit and distributable foreign profit
##### 246I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Matching of dividend with distributable foreign profit
##### 246J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246M
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Repayment or set-off of advance corporation tax
##### 246N
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246P
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246Q
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246R
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### International headquarters companies
##### 246S
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246T
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246U
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246V
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 246W
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Adjustments
##### 246X
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Application of this Chapter
##### 246Y
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Modifications where tax charged under section 35 of CTA 2009.
### Approved share incentive plans
##### 251A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 251B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 251C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Overseas life assurance business.
##### 251D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 256A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 256B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Non long-term fund transferred assets
##### 257BA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257B
- (1) Where—
- (a) a man is entitled to relief under section 257A, but
- (b) the amount which he is entitled to deduct from his total income by virtue of that section exceeds what is left of his total income after all other deductions have been made from it,
his wife shall be entitled to a deduction from her total income of an amount equal to the excess.
- (2) In determining for the purposes of subsection (1)(b) above the amount that is left of a person’s total income for a year of assessment after other deductions have been made from it, there shall be disregarded any deduction made—
- (a) on account of any payments of relevant loan interest which become due in that year and to which section 369 applies, or
- (b) under section 289 or
- (c) on account of any payments to which section 593(2) or 639(3) applies,or
- (d) on account of any payments to which section 54(5) of the Finance Act 1989 applies.
, or
- (e) on account of any payments to which section 32(4) of the Finance Act 1991 applies.
- (3) This section shall not apply for a year of assessment unless the claimant’s husband has given to the inspector written notice that it is to apply; and any such notice—
- (a) shall be given not later than six years after the end of the year of assessment to which it relates,
- (b) shall be in such form as the Board may determine, and
- (c) shall be irrevocable.
##### 257C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 257F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 261A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 266A
- (1) This section applies if—
- (a) pursuant to an employer-financed retirement benefits scheme, the employer in any year of assessment pays a sum with a view to the provision of any relevant benefits for or in respect of any employee of that employer, and
- (b) the payment is made under such an insurance or contract as is mentioned in section 266.
This section applies whether or not the accrual of the relevant benefits is dependent on any contingency.
- (2) Relief, if not otherwise allowable, shall be given to that employee under section 266 in respect of the payment to the extent, if any, to which such relief would have been allowable to him if—
- (a) the payment had been made by him, and
- (b) the insurance or contract under which the payment is made had been made with him.
- (3) For the purposes of subsection (1)(a) benefits are provided in respect of an employee if they are provided for the employee’s spouse, widow or widower, children, dependants or personal representatives.
- (4) If a sum within subsection (1) is paid with a view to the provision of benefits for or in respect of more than one employee of the employer, part of it is to be treated as paid for or in respect of each of them.
- (5) The amount treated as paid for or in respect of each employee is—
$$A×BC$where—A is the sum paid,B is the amount which would have had to be paid to secure the benefits to be provided for or in respect of the employee in question, andC is the total amount which would have had to be paid to secure the benefits to be provided for or in respect of all the employees if separate payments had been made in the case of each of them.$
- (6) This section does not apply if—
- (a) in the year of assessment in which the sum is paid the earnings from the employee’s employment are (or, if there are none, would be if there were any) earnings charged on remittance, or
- (b) the employee is not domiciled in the United Kingdom in the tax year in which the sum is paid and the conditions in subsection (7) are met.
- (7) Those conditions are—
- (a) that the employment is with a foreign employer, and
- (b) that, on a claim made by the employee, the Board are satisfied that the pension scheme corresponds to a registered pension scheme.
- (8) In subsection (6)(a) “*earnings charged on remittance*” means earnings which are taxable earnings under—
- (a) section 22 of ITEPA 2003 (chargeable overseas earnings for year when remittance basis applies and employee outside section 26), or
- (b) section 26 of that Act (foreign earnings for year when remittance basis applies and employee meets section 26A requirement).
- (9) In this section—
- “*employer-financed retirement benefits scheme*”, and
- “*relevant benefits*”,
- have the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act).
#### Regulations in relation to qualifying policies
##### 282A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 282B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Overseas life assurance business: life policies.
##### 289A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 289B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 290A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Business entertaining expenses.
##### 291A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 291B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 299A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 299B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 300A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 301A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 303AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Modification of section 440.
##### 303A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cessation of approval: general provisions.
##### 304A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 305A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation in respect of other business: incorporated friendly societies qualifying for exemption.
#### Transfers of other business
##### 326A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 326B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 326BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 326C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 326D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 327A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assets of branch of registered friendly society to be treated as assets of society after incorporation.
##### 329AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 329AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 329A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 329B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 329C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 331A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 332A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 333A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 333B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 338B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 337A
- “*capital redemption policy*” means a capital redemption policy in relation to which . . . Chapter 9 of Part 4 of ITTOIA 2005 has effect;
- “*contract for a life annuity*” means a contract for a life annuity in relation to which . . . Chapter 9 of Part 4 of ITTOIA 2005 has effect;
- “*the designated day*” means such day as the Board may specify for the purpose in regulations;
- “*policy of life insurance*” means a policy of life insurance in relation to which . . . Chapter 9 of Part 4 of ITTOIA 2005 has effect;
- “*tax representative*” means a tax representative under this section.
##### 552B
- (1) It shall be the duty of an overseas insurer’s tax representative to secure (where appropriate by acting on the overseas insurer’s behalf) that the relevant duties are discharged by or on behalf of the overseas insurer.
- (2) For the purposes of this section “*the relevant duties*” are—
- (a) the duties imposed by section 552,
- (b) the duties imposed by section 552ZA(2), (4) or (5), . . .
- (c) any duties imposed by regulations made under subsection (6) of section 552ZA by virtue of subsection (7) of that section, and
- (d) any duties imposed by regulations under section 552ZB,
so far as relating to relevant insurances under which the overseas insurer in question has any obligations.
- (3) An overseas insurer’s tax representative shall be personally liable—
- (a) in respect of any failure to secure the discharge of the relevant duties, and
- (b) in respect of anything done for purposes connected with acting on the overseas insurer’s behalf,
as if the relevant duties were imposed jointly and severally on the tax representative and the overseas insurer.
- (4) In the application of this section in relation to any particular tax representative, it is immaterial whether any particular relevant duty arose before or after his appointment.
- (5) This section has effect in relation to relevant duties relating to chargeable events happening on or after the day by which section 552A(6) requires the nomination of the overseas insurer’s first tax representative to be made.
- (5A) In subsection (5) “*chargeable event*” has the same meaning as in section 552 (see subsection (10) of that section).
- (6) Expressions used in this section and in section 552A have the same meaning in this section as they have in that section.
##### 553A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 553B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 553C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 559A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
### Chapter 5A — Share loss relief
### Relief for losses on unquoted shares in trading companies
##### 576A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Qualifying trading companies: the requirements
##### 576B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: companies.
##### 576C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Qualifying trading companies: supplementary provisions
##### 576J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplemental
##### 576L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: mileage allowance payments
##### 577A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 578A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 578B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Company vehicles
##### 581A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 582A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on payments in respect of corporation tax and meaning of “the material date".
##### 587A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 587B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 587BA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 587C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Corporation Tax Acts etc.
##### 589A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 589B
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 338A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 339A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 342A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Authorised unit trusts.
#### Interest paid on deposits with banks etc.
##### 343ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 343A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### “Deposit-taker”, “deposit” and “relevant deposit”.
#### The prescribed circumstances.
#### Deemed interest: cash collateral under stock lending arrangements
##### 347A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 347B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special rule for computing chargeable profits.
##### 349ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 349A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Election that assets not be foreign business assets
##### 349B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 349C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 349D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 349E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 350A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 356A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 356B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 356C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 356D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Section 432B apportionment: supplementary provisions.
##### 357A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 357B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 357C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 360A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Profits reserved for policy holders and annuitants.
#### Returns.
##### 367A
- (1) Sections 353 and 365 have effect as if—
- (a) purchase and resale arrangements involved the making of a loan, and
- (b) alternative finance return were interest.
- (2) Section 366 has effect accordingly.
- (3) In this section—
- “*alternative finance return*” has the meaning given in sections 564I to 564L of ITA 2007, and
- “*purchase and resale arrangements*” means arrangements to which section 564C of ITA 2007 applies.
#### Qualifying interests in land held jointly
##### 374A
- (1) This section applies where, in the case of any loan, interest on the loan never has been relevant loan interest or the borrower never has been a qualifying borrower.
- (2) Without prejudice to subsection (3) below, in relation to a payment of interest—
- (a) as respects which either of the conditions mentioned in paragraphs (a) and (b) of section 374(1) is fulfilled, and
- (b) from which a deduction was made as mentioned in section 369(1),
section 369 shall have effect as if the payment of interest were a payment of relevant loan interest made by a qualifying borrower.
- (3) Nothing in subsection (2) above shall be taken as regards the borrower as entitling him to make any deduction or to retain any amount deducted and, accordingly, where any amount has been deducted, he shall be liable to make good that amount and an officer of the Board may make such assessments as may in his judgment be required for recovering that amount.
- (4) The Management Act shall apply to an assessment under subsection (3) above as if it were an assessment to income tax for the year of assessment in which the deduction was made . . . .
- (5) If the borrower fraudulently or negligently makes any false statement or representation in connection with the making of any deduction, he shall be liable to a penalty not exceeding the amount deducted.
##### 375A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 376A
- (1) The Board shall maintain, and publish in such manner as they consider appropriate, a register for the purposes of section 376(4).
- (1A) The following are entitled to be registered—
- (a) a person who has permission under Part 4A of the Financial Services and Markets Act 2000—
- (i) to accept deposits; or
- (ii) to effect or carry out contracts of general insurance;
- (b) a 90 per cent subsidiary of a person mentioned in—
- (i) section 376(4)(e); or
- (ii) paragraph (a) above;
- (c) any other body whose activities and objects appear to the Board to qualify it for registration.
- (2) If the Board are satisfied that an applicant for registration is entitled to be registered, they may register the applicant generally or in relation to any description of loan specified in the register, with effect from such date as may be so specified; and a body which is so registered shall become a qualifying lender in accordance with the terms of its registration.
- (3) The registration of any body may be varied by the Board—
- (a) where it is general, by providing for it to be in relation to a specified description of loan, or
- (b) where it is in relation to a specified description of loan, by removing or varying the reference to that description of loan,
and where they do so, they shall give the body written notice of the variation and of the date from which it is to have effect.
- (4) If it appears to the Board at any time that a body which is registered under this section would not be entitled to be registered if it applied for registration at that time, the Board may by written notice given to the body cancel its registration with effect from such date as may be specified in the notice.
- (5) The date specified in a notice under subsection (3) or (4) above shall not be earlier than the end of the period of 30 days beginning with the date on which the notice is served.
- (6) Any body which is aggrieved by the failure of the Board to register it under this section, or by the variation or cancellation of its registration, may appeal, by notice given to the Board before the end of the period of 30 days beginning with the date on which the body is notified of the Board’s decision. . . .
### Losses from UK property business or overseas property business
##### 379A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 379B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements made under old law.
##### 384A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Losses from UK property business or overseas property business
##### 392A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 392B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 393A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 393B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Section 591C: supplementary.
##### 403ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403ZC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403ZD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403ZE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 403G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 411ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 411A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exemption from tax in respect of qualifying premiums.
#### Approval of schemes.
#### Arrangements to avoid section 812.
#### Modification of s. 444BA for mutual or overseas business and for non-resident companies.
#### Taxation in respect of other business: incorporated friendly societies qualifying for exemption.
##### 431ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfers of other business
#### Interest on tax overpaid.
##### 434A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on tax overpaid.
##### 438A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Imputation of chargeable profits and creditable tax of controlled foreign companies
##### 440A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 441A
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 590A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 590B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 590C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 591A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 591B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 591C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 591D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Income arising under settlement where settlor retains an interest.
##### 596A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 596B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 596C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 599A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 605A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 606A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 611A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 611AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 611A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 617A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Revocable settlements allowing release of obligation.
#### Settlements made after 6th April 1965.
##### 631A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 632A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 632B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 634A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 636A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 637A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 638ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 638A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Settlements made after 6th April 1965.
##### 640A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 641A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schedule 4 directions.
#### Interpretation.
##### 646A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 646B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 646C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 646D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Annuities: charge to tax
##### 648A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 648B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 650A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 651A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 653A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 658A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 659A
- (1) For the purposes of sections . . . 613(4), 614(3) and (4) . . . —
- (a) “*investments*” (or “*investment*”) includes futures contracts and options contracts, and
- (b) income derived from transactions relating to such contracts shall be regarded as income derived from (or income from) such contracts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) For the purposes of subsection (1) above a contract is not prevented from being a futures contract or an options contract by the fact that any party is or may be entitled to receive or liable to make, or entitled to receive and liable to make, only a payment of a sum (as opposed to a transfer of assets other than money) in full settlement of all obligations.
##### 659B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 659C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 659D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 659E
- (1) The exemptions specified below do not apply to income derived from investments, deposits or other property held as a member of a property investment LLP (see section 1004 of ITA 2007).
- (2) The exemptions are those provided by—
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- section 613(4) (Parliamentary pension funds),
- section 614(3) (certain colonial, &c. pension funds),
- section 614(4) (the Overseas Service Pension Fund),
- section 614(5) (other pension funds for overseas employees),
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) The income to which subsection (1) above applies includes relevant stock lending fees, in relation to any investments, to which any of the provisions listed in subsection (2) above would apply by virtue of section 129B.
- (4) Section 659A (treatment of futures and options) applies for the purposes of subsection (1) above.
### Chapter IA — Liability of settlor
### Main provisions
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660C
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplementary provisions
##### 660E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 674A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### How averaging claim is given effect
##### 682A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### . . .
### . . .
##### 685A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustment of profits on averaging claim
##### 685F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 686A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 686B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 686C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 686D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustment of profits on averaging claim
##### 686E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 687A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Chapter ID — Trust management expenses
##### 689A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 689B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 698A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 699A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 705A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 705B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of chargeable profits and creditable tax
#### General definition of offshore fund
#### Deductions: asset transferred within group.
##### 722A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in ownership of company carrying on property business.
##### 726A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 727A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provision not at arm’s length.
##### 730A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 730B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 730BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 730C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sections 774B and 774D: exceptions
##### 736A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sections 774B and 774D: exceptions
##### 736B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 736C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 736D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sections 774A to 774D: minor definitions etc
##### 737A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 737B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 737C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 737D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 737E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 741A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 741B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 741C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 741D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfers of rights to receive annual payments
##### 747A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 748ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 748A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 749A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 749B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 750A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 751A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leased assets subject to hire-purchase agreements.
##### 751AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 751AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Company vehicles
##### 751AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
##### 751B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
##### 752A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 752B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 752C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 754A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 754B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 755A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 755B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 755C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 755D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Meaning of offshore fund
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 756A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Treatment of umbrella funds
##### 756B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Treatment of funds comprising more than one class of interest
##### 756C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sale by individual of income derived from his personal activities.
##### 762ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 762ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 762A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 765A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assets leased to traders and others.
##### 767A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 767AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 767B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 767C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 770A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Factoring of income receipts etc
##### 774A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 775A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction of relief for payments of interest.
##### 785ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief by agreement with other territories.
##### 785E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction to section 807E
#### Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets
##### 793A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 795A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 797A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 797B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
##### 798A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 798B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 798C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 801A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 801B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 801C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 803A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804ZC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Foreign dividends: onshore pooling and utilisation of eligible unrelieved foreign tax
##### 806A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Application of foreign dividend provisions to branches or agencies in the UK of persons resident elsewhere
##### 806K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Unrelieved foreign tax: profits of overseas branch or agency
##### 806L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806M
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 807A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 808A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 808B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery of tax credits incorrectly paid.
#### Mutual agreement procedure and presentation of cases under arrangements.
##### 815A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 815AZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to inspect documents.
##### 815AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 815B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 815C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: companies.
#### Repayment supplements: companies.
##### 826A
- (1) The Treasury may by regulations make provision applying section 826, with such modifications as may be prescribed, for the purpose of conferring on companies of such descriptions as may be prescribed a right to interest—
- (a) on such payments made by them in respect of corporation tax as may be prescribed,
- (b) at the rate applicable under section 178 of the Finance Act 1989, and
- (c) for such period as may be prescribed,
and for treating any such interest for the purposes, or prescribed purposes, of the Tax Acts as interest under section 826(1)(a) on a repayment of corporation tax.
- (2) The Treasury may by regulations make provision modifying section 826(2) in relation to companies of such description as may be prescribed.
- (3) Subsections (1) and (2) above do not apply in relation to companies in relation to which section 826(2) is modified or otherwise affected by regulations under section 59E of the Management Act (alteration of date on which corporation tax becomes due and payable) in relation to the accounting period to which the corporation tax in question relates.
- (4) Where the Treasury make regulations under subsection (2) above in relation to companies of any description, they may also make regulations modifying section 59DA(2) of the Management Act in relation to those companies, or any description of such companies, by varying the date before which the claim there mentioned may not be made.
- (5) Regulations under this section—
- (a) may make different provision in relation to different cases or circumstances or in relation to companies or accounting periods of different descriptions;
- (b) may make such supplementary, incidental, consequential or transitional provision as appears to the Treasury to be necessary or expedient.
- (6) Regulations under this section may not make provision in relation to accounting periods ending before the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (corporation tax self-assessment).
- (7) In this section “*prescribed*” means prescribed by regulations made under this section.
##### 827A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: companies.
##### 834A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 834B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 834C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 836A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 836B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery of tax credits incorrectly paid.
##### 837A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 837B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 837C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 840ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 840A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 841A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 842AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 842A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 842B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## SCHEDULE A1
## Part 1 — Introduction
### Introduction
##### 1
- (1) The provisions of this Schedule have effect for supplementing section 11AA as regards the determination of the profits attributable to a permanent establishment in the United Kingdom of a company that is not resident in the United Kingdom (“*the non-resident company*”).
- (2) In this Schedule “*the separate enterprise principle*” means the principle in section 11AA(2) (read with subsection (3) of that section).
## Part 2 — General provisions
### Transactions treated as taking place at arm’s length
##### 2
In accordance with the separate enterprise principle, transactions between the permanent establishment and any other part of the non-resident company are treated as taking place on such terms as would have been agreed between parties dealing at arm’s length.
### Application of general provision as to allowable deductions
##### 3
- (1) Section 11AA(4) (general provision as to allowable deductions) applies whether or not the expenses are incurred by, or reimbursed by, the permanent establishment.
- (2) The amount of expenses to be taken into account under section 11AA(4) is the actual cost to the non-resident company.
### Prohibition of deductions for payments in respect of intangible assets
##### 4
- (1) No deduction is allowed in respect of royalties paid, or other similar payments made, by the permanent establishment to any other part of the non-resident company in respect of the use of intangible assets held by the company.
- (2) This does not prevent a deduction in respect of any contribution by the permanent establishment to the costs of creation of an intangible asset.
- (3) In this paragraph “*intangible asset*” has the meaning it has for accounting purposes, and includes any intellectual property (as defined in paragraph 2(2) of Schedule 29 to the Finance Act 2002).
### Prohibition of deductions for interest or other financing costs
##### 5
- (1) No deduction is allowed in respect of payments of interest or other financing costs by the permanent establishment to any other part of the non-resident company, except as provided by sub-paragraph (2).
- (2) The restriction in sub-paragraph (1) above does not apply to interest or other costs of financing that are payable in respect of borrowing by the permanent establishment in the ordinary course of a financial business carried on by it.
- (3) In sub-paragraph (2) “*financial business*” means any of the following—
- (a) banking, deposit-taking, money-lending or debt-factoring, or a business similar to any of those;
- (b) dealing in commodity or financial futures.
### Provision of goods or services for permanent establishment
##### 6
- (1) This paragraph applies where the non-resident company provides the permanent establishment with goods or services.
- (2) If the goods or services are of a kind that the company supplies, in the ordinary course of its business, to third parties dealing with it at arm’s length, the matter is dealt with as a transaction to which the separate enterprise principle applies.
- (3) If not, the matter is dealt with as an expense incurred by the non-resident company for the purposes of the permanent establishment.
## Part 3 — Provisions applicable to non-resident banks
### Application of this Part
##### 7
- (1) The provisions of this Part of this Schedule have effect where the non-resident company is a bank.
- “*Bank*” for this purpose has the meaning given by section 840A.
- (2) Nothing in this Part of this Schedule shall be read as preventing the application of principles similar to those provided for in this Part in applying the separate enterprise principle to a non-resident company that is not a bank.
### Non-resident banks: transfer of financial assets
##### 8
- (1) In accordance with the separate enterprise principle, transfers of loans and other financial assets between the permanent establishment and any other part of the company are recognised only if they would have taken place between independent enterprises.
- (2) Such a transfer is not recognised where it cannot reasonably be considered that it is carried out for valid commercial reasons. For this purpose the obtaining of a tax advantage is not a valid commercial reason.
### Loans by non-resident banks: attribution of financial assets and profits arising
##### 9
- (1) In accordance with the separate enterprise principle, loans and other financial assets, and profits arising from them, are attributed to a permanent establishment to the extent that they can reasonably be regarded as having been generated by the activities of the permanent establishment.
- (2) The following provisions have effect as regards the factors to be taken into account.
- (3) Particular account shall be taken of the extent to which the permanent establishment is responsible for—
- (a) obtaining the offer of new business;
- (b) establishing the potential borrower’s credit rating and the risk involved in providing credit;
- (c) negotiating the terms of the loan with the borrower;
- (d) deciding whether, and if so on what conditions, to make or extend the loan.
- (4) Account may also be taken of the extent to which the permanent establishment is responsible for—
- (a) concluding the loan agreement and disbursing the proceeds of the loan;
- (b) administering the loan (including handling and monitoring the service of it) and holding and controlling any securities pledged.
- (5) References in this paragraph to a financial asset include any financial risk in relation to a loan, or potential loan, that is capable of giving rise to fees or other receipts and for which the holding of capital is required (or would be required if the transaction were between parties at arm’s length).
### Borrowing by non-resident banks: permanent establishment acting as agent or intermediary
##### 10
- (1) This paragraph applies where a permanent establishment—
- (a) borrows funds for the purposes of another part of the non-resident company, and
- (b) in relation to that borrowing acts only as an agent or intermediary.
- (2) In such a case, in accordance with the separate enterprise principle—
- (a) the profits attributable to the permanent establishment, and
- (b) the capital attributable to the permanent establishment under section 11AA(3),
shall be that appropriate in the case of an agent acting at arm’s length, taking into account the risks and costs borne by the establishment.
## SCHEDULE A2
## Part 1 — General provisions
### Introduction
##### 1
The provisions of this Schedule supplement section 13AB (corporation tax: the non-corporate distribution rate).
### Meaning of “non-corporate distribution”
##### 2
- (1) A “*non-corporate distribution*” means a distribution made by a company to a recipient who is not a company.
- “*Recipient*” here means the person beneficially entitled to the distribution.
- (2) A distribution made to a partnership is treated as made to the partners notwithstanding that the partnership is regarded as a legal person, or as a body corporate, under the law of the country or territory under which it is formed.
### Calculation of company’s “underlying rate of corporation tax”
##### 3
- (1) A company’s underlying rate of corporation tax for an accounting period is determined as follows:
*Step One*
Take the company’s basic profits for the accounting period (“BP”).
*Step Two*
Find the amount of corporation tax chargeable on those profits apart from section 13AB (“CT”).
*Step Three*
The company’s underlying rate of corporation tax is the percentage determined as follows—
$(CTBP)×100$
- (2) In determining CT—
- (a) apply the rate of corporation tax fixed for companies generally, and
- (b) if the company is entitled to and claims relief under section 13 (small companies' relief) or section 13AA (corporation tax starting rate), apply the provisions of those sections.
But take no account of any other relief that is given by reducing the amount or rate of tax payable (as opposed to the amount of the profits chargeable to tax).
### Matching: distributions not exceeding basic profits
##### 4
Where in an accounting period the total amount of the distributions made (or treated as made) by a company does not exceed the amount of its basic profits, the amount of the company’s basic profits matched with non-corporate distributions is equal to the total amount of the non-corporate distributions made (or treated as made) by the company in that period.
### Matching: distributions exceeding basic profits
##### 5
Where in an accounting period the total amount of the distributions made (or treated as made) by a company exceeds its basic profits, the amount of the company’s basic profits for that period matched with non-corporate distributions is—
## Part 2 — Allocation of excess NCDs to other companies
### Allocation of excess NCDs to other companies
##### 6
- (1) This Part of this Schedule provides for the allocation to other companies of any amount by which the total amount of the non-corporate distributions made (or treated as made) by a company (the “distributing company”) in an accounting period (the “distribution period”) exceeds the amount of the company’s basic profits for that period that are matched under paragraph 5.
- (2) That amount is referred to in this Schedule as “*excess NCDs*”.
- (3) A company to which an amount of excess NCDs is allocated (a “*recipient company*”) is treated as if it had made a non-corporate distribution of that amount in the period to which it is allocated.
### Allocation of excess NCDs to other group companies
##### 7
- (1) If at the end of the distribution period the distributing company is a member of a group, excess NCDs must be allocated, so far as possible, to the other group companies.
The allocation must be made in accordance with the following rules.
- (2) Excess NCDs may not be allocated to a recipient company unless it has available profits for the accounting period to which they are to be allocated.
- (3) The amount of a recipient company’s available profits for an accounting period is given by:
$$BP-NCD$where—BP is the amount of that company’s basic profits for that accounting period, andNCD is the total amount of non-corporate distributions made (or treated as made) by that company in that period.$
- (4) The maximum amount of excess NCDs that may be allocated to an accounting period of a recipient company is:
$$(NCDD)×AP$where—NCD is the total amount of the non-corporate distributions made (or treated as made) by the distributing company in the distribution period;D is the total amount of all the distributions made (or treated as made) by that company in that period; andAP is the amount of the recipient company’s available profits for that period.$
- (5) In determining the amount of a company’s available profits at any time account shall only be taken of excess NCDs allocated to it by virtue of an allocation made before that time that remains (or so far as it remains) effective.
### Allocation of excess NCDs: period or periods to which amount to be allocated
##### 8
- (1) Excess NCDs falling to be allocated to another company under paragraph 7 (allocation to other group companies) may be allocated to any accounting period identified by this paragraph as a corresponding accounting period.
If there is more than one such period, excess NCDs must be allocated to the first to the full extent possible before any allocation is made to the second, and so on.
- (2) The accounting period of a recipient company that includes the last day of the distribution period is its first corresponding accounting period.
Unless that accounting period is shorter than the distribution period, it is the recipient company’s only corresponding accounting period.
- (3) If the first corresponding accounting period is shorter than the distribution period, any subsequent accounting period of the recipient company beginning before the end of the period specified in sub-paragraph (4) is a corresponding accounting period.
- (4) The period referred to in sub-paragraph (3) is a period—
- (a) of the same length as the distribution period, and
- (b) beginning on the same day as the recipient company’s first corresponding accounting period.
### Allocation of excess NCDs: degrouping
##### 9
- (1) This paragraph applies where a company (“company A”) ceases to be a member of the same group as another company (“company B”) but the companies remain under the control of the same person or persons.
This is referred to below as “*degrouping*”.
- (2) If at the end of any accounting period of company A ending on or after the degrouping but no more than two years after the degrouping—
- (a) company A has excess NCDs that (apart from this paragraph) cannot be allocated to other companies,
- (b) the business activities of company A and any other companies in the same group as that company are negligible, and
- (c) the business activities of company B and any other companies in the same group as that company are not negligible,
the provisions of sub-paragraphs (3) to (5) below apply.
The end of the accounting period when the above conditions are met is referred to in those provisions as “*the relevant time*”.
- (3) Company B and any other companies in the same group as that company at the relevant time (the “B group”) shall be treated for the purposes of allocating the excess NCDs as if they were members of the same group as company A.
- (4) Any excess NCDs remaining after any allocation made by virtue of sub-paragraph (3) must be allocated—
- (a) to company B or, if different, the company in the B group that at the relevant time has the greatest number of members who are not companies, and
- (b) to the accounting period of that company that includes the relevant time.
This allocation is not subject to the restrictions in paragraph 7 on the amount that may be allocated to another company.
- (5) If there is more than one company answering the description in sub-paragraph (4)(a), the excess NCDs shall be apportioned between them according to the amount of their basic profits for the accounting period to which the amount falls to be allocated.
- (6) In this paragraph “*control*” shall be construed in accordance with section 416(2) to (6).
### Allocation of excess NCDs: procedure
##### 10
- (1) The basic rule is that the allocation of excess NCDs to another company must be made by the distributing company with the agreement of the recipient company.
- (2) If excess NCDs are not so allocated within nine months after—
- (a) in a case within paragraph 7, the end of the distribution period, or
- (b) in a case within paragraph 9, the relevant time within the meaning of that paragraph,
they may be allocated at any time thereafter by an officer of the Board.
- (3) An allocation under sub-paragraph (1) or (2) may be varied—
- (a) by agreement between the relevant companies, or
- (b) if further excess NCDs are required to be allocated and no variation is agreed within one year after its becoming apparent that a variation is required, by an officer of the Board.
Any such variation may in turn be varied as mentioned in paragraph (a) or (b).
- (4) No allocation or variation of an allocation of excess NCDs may be made after the end of the period of one year after whichever of the following last occurs—
- (a) the final determination of the tax affairs of the distributing company in relation to the distribution period,
- (b) in a case within paragraph 7, the final determination of the tax affairs of all recipient or potential recipient companies in relation to accounting periods that are or could be corresponding accounting periods, or
- (c) in a case within paragraph 9, the final determination of the tax affairs of all recipient or potential recipient companies in relation to accounting periods to which an allocation may be made under that paragraph.
- (5) If circumstances arise as a result of which the tax affairs of any such company for any such period are reopened, an allocation or variation of an allocation may (and shall if necessary) be made at any time before the end of the period of one year after the tax affairs of the company are again finally determined.
- (6) For the purposes of sub-paragraphs (4) and (5) the tax affairs of a company for a period are finally determined when the amounts are conclusively determined within the meaning of paragraph 88 of Schedule 18 to the Finance Act 1998 (c. 36) (company tax returns: conclusiveness of amounts stated in return).
- (7) References in this paragraph to variation of an allocation include reducing the amount allocated to nil.
### Allocation of excess NCDs: amounts proving to be excessive
##### 11
- (1) This paragraph applies where an amount of excess NCDs allocated to another company in accordance with this Part of this Schedule later proves to be excessive.
- (2) The excess shall revert to the distributing company.
- (3) If allocations to two or more companies are involved, the amounts shall revert in the opposite order to that in which the allocations were made.
- (4) In the case of allocations made at the same time, the amounts reverting to the distributing company shall be in proportion to the original allocations.
### Allocation of excess NCDs to companies not resident in the United Kingdom
##### 12
- (1) The provisions of this Part of this Schedule as to the allocation of excess NCDs to other companies apply, with any necessary modifications, to companies that are not resident in the United Kingdom as they apply to companies that are so resident.
- (2) In particular, references to the company’s basic profits and accounting periods shall be read in relation to a company that is not resident in the United Kingdom as references to what would have been the case if the company had been resident in the United Kingdom at all material times.
## Part 3 — Other supplementary provisions
### Carry forward of excess NCDs
##### 13
- (1) Any excess NCDs not allocated to another company under Part 2 shall be carried forward by the distributing company.
- (2) That company shall be treated as if it had made a non-corporate distribution of the amount carried forward (in addition to any distributions actually made by it) in its next accounting period.
- (3) Where an allocation is made under paragraph 9(4) references in this paragraph to the distributing company shall be read as references to the company to which that allocation is made (which is treated by virtue of paragraph 6(3) as having made a distribution in the accounting period to which the allocation is made).
### Definition of a group
##### 14
- (1) For the purposes of section 13AB and this Schedule a company and all its 51% subsidiaries form a group, and if any of those subsidiaries have 51% subsidiaries the group includes them and their 51% subsidiaries, and so on.
- (2) The question whether a company is a 51% subsidiary shall be determined in accordance with section 838, subject to the following provisions.
- (3) A company (“company A”) shall be treated for the purposes of this Schedule as if it were a 51% subsidiary of another company (“company B”) if company B has rights to, or in fact receives, more than 50% of the distributions made by company A.
- (4) For the purposes of this paragraph a company shall be treated as not being the owner—
- (a) of any share capital that it owns directly if a profit on the sale of the shares would be treated as a trading receipt of its trade, or
- (b) of any share capital that it owns indirectly and that is owned directly by a body corporate for which a profit on the sale of the shares would be treated as a trading receipt of its trade.
### Accounting period treated as ending if company ceases to be a member of a group
##### 15
- (1) Section 13AB and this Schedule apply in relation to an accounting period of a company in which it ceases to be a member of the group as if there were two accounting periods, one ending immediately before the company ceases to be a member of the group and the other consisting of the remainder of the period.
- (2) For this purpose a company ceases to be in a group if it and another company cease to be in the same group, whether as a result it is no longer in a group, becomes a member of another group or continues to be in the same group as one or more other companies.
### Treatment of distributions made otherwise than in an accounting period
##### 16
For the purposes of section 13AB and this Schedule, a non-corporate distribution made by a company otherwise than in an accounting period of the company shall be treated as made in the next accounting period of the company.
### Holding companies treated as carrying on a business
##### 17
- (1) For the purposes of section 13AB and this Schedule a holding company that is not otherwise carrying on a business shall be deemed to be carrying on a business and to be within the charge to corporation tax.
- (2) For this purpose “*a holding company*” means a company that has one or more 51% subsidiaries from which it receives or has received one or more distributions.
### Interpretation
##### 18
In section 13AB and this Schedule—
- “*basic profits*” means the amount of a company’s profits for an accounting period on which corporation tax finally falls to be borne;
- “*corresponding accounting period*”, in relation to a recipient company, has the meaning given by paragraph 8;
- “*distributing company*” has the meaning given by paragraph 6(1);
- “*distribution*” does not include an amount treated as a dividend under paragraph 2(2) of Schedule 23A (manufactured dividends and interest);
- “*distribution period*” has the meaning given by paragraph 6(1); and
- “*excess NCDs*” has the meaning given by paragraph 6(2);
- “*group*” has the meaning given by paragraph 14 (and references to a group company and membership of a group have a corresponding meaning);
- “*non-corporate distribution*” has the meaning given by paragraph 2;
- “*recipient company*” has the meaning given by paragraph 6(3);
- “*underlying rate of corporation tax*” has the meaning given by paragraph 3.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 6A
- (1) On the fourteenth day following the month in which a transaction such as is mentioned in paragraph 6 above is effected, income tax (at the lower rate in force at the time of payment) shall become due in respect of the relevant dividends or proceeds.
- (2) The tax shall be payable by the chargeable person on behalf of the persons entitled to the dividends or proceeds.
- (2A) Payments of tax made on any person’s behalf under this paragraph shall be treated as made for the purpose only of being applied in the discharge of that person’s liability to tax charged (otherwise than by virtue of this paragraph) on the dividends or proceeds to which the payments relate.
- (3) The tax shall be payable without the making of any assessment.
- (4) For the purposes of sub-paragraph (1) above the applicable rate shall be—
- (a) the lower rate, in the case of a foreign dividend which is neither interest nor any other annual payment which is made otherwise than by way of dividend; and
- (b) the basic rate in any other case.
##### 6B
Any tax due under paragraph 6A above shall carry interest, at the rate applicable under section 178 of the Finance Act 1989, from the date on which it becomes due until it is paid.
##### 6C
- (1) For each quarter in which a person effects a transaction in respect of which he is a chargeable person, he shall make a return to the Board.
- (2) The return shall specify the chargeable person’s name and address and give, in respect of each such transaction effected by him in the quarter, correct and complete particulars of—
- (a) the relevant dividends or proceeds, and
- (b) the income tax on those dividends or proceeds for which he has accounted, or is accountable, under paragraph 6A above.
- (3) The return shall be made within 30 days from the end of the quarter.
- (4) In this paragraph and paragraphs 6D to 6F below, “*quarter*” means any period of three months ending with 31st March, 30th June, 30th September or 31st December.
##### 6D
- (1) Any income tax which has become due under paragraph 6A above and particulars of which are included in a return may be assessed on the chargeable person (whether or not it has been paid when the assessment is made) if it, or any part of it, was not paid on or before the date on which it became due.
- (2) If it appears to the Board that there are any dividends or proceeds particulars of which ought to have been and have not been included in a return, or if the Board are not satisfied with any return, the Board may make an assessment on the chargeable person of the amount, or further amount, of income tax for which he is in their opinion accountable.
- (3) Where the Board make an assessment under sub-paragraph (2) above they shall specify—
- (a) which of the months in the quarter was the one in which they consider the transactions in question were effected, or
- (b) where they consider that the transactions were effected in more than one of the months in the quarter, the proportion of the total amount of the assessment that is to be attributed to each of those months.
- (4) Any income tax assessed under sub-paragraph (2) above shall be due within 14 days after the issue of the notice of assessment; but for the purposes of paragraph 6B above—
- (a) it shall be treated as having become due on the fourteenth day following the month specified under sub-paragraph (3)(a) above, or
- (b) each of the portions of it specified under sub-paragraph (3)(b) above shall be treated as having become due on the fourteenth day following the month to which it is to be attributed.
##### 6E
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) For the purposes of sections 34 and 36(1) of the Management Act (time limits for making assessments), an assessment under paragraph 6D above shall be taken to relate to the year of assessment in which the quarter to which the assessment relates ends.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 6F
If a person has made a payment purporting to be a payment of tax due under paragraph 6A above but it appears to the Board that—
- (a) he was not liable to make any payment under that paragraph, or
- (b) the sum paid exceeded his liability under that paragraph,
the Board shall make or allow to be made such repayments, adjustments or set-offs against unpaid tax as they think appropriate.
##### 11A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Issue price
##### 11B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Retirement benefit schemes
##### 15
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Stock lending
##### 16
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Trustees
##### 17
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Underwriters
##### 18
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Gilts: special rules
##### 19
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Non-gilts: special rules
##### 20
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Convertible securities: special rules
##### 21
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## SCHEDULE 4AA
### Introductory
##### 1
- (1) This Schedule forms part of the SIP code (see section 488 of ITEPA 2003 (approved share incentive plans)).
- (2) Accordingly, expressions used in this Schedule and contained in the index at the end of Schedule 2 to that Act (approved share incentive plans) have the meaning indicated by that index.
- (3) References in this Schedule to deductions are to deductions by a company in calculating for the purposes of corporation tax the profits of a trade carried on by it.
- (4) Sub-paragraph (3) is subject to paragraph 13 (application of provisions to expenses of management of companies with investment business etc.).
### Deduction for providing free or matching shares
##### 2
- (1) Where, under an approved share incentive plan, shares are awarded to employees as free or matching shares by reason of their employment with a company, a deduction is allowed under this paragraph to that company.
- (2) Any such deduction—
- (a) is of an amount equal to the market value of the shares at the time they are acquired by the trustees, and
- (b) must be made for the period of account in which the shares are awarded to employees in accordance with the plan.
- (3) Except as provided by sub-paragraph (1), no deduction may be made by the company or any associated company in respect of the provision of those shares.
This is subject to paragraphs 7 and 8 (deductions for costs of setting up, and contributions to running expenses of, plan).
- (4) Where the shares are awarded under a group plan, the market value of the shares at the time they are acquired by the trustees shall for the purposes of this paragraph be taken to be the relevant proportion of the total market value of the shares included in the award.
- (5) For the purposes of sub-paragraph (4) “*the relevant proportion*” means the proportion that the number of shares in the award awarded to the employees of the company concerned bears to the total number of shares in the award.
- (6) In determining the market value of any shares for the purposes of this paragraph, if shares have been acquired by the trustees on different days it shall be assumed that those acquired on an earlier day are awarded to employees under the plan before those acquired by the trustees on a later day.
- (7) If a deduction is made under this paragraph by a company, no deduction may be made by any other company under this paragraph in respect of the provision of the shares.
- (8) This paragraph has effect subject to paragraph 4 (cases in which no deduction is allowed).
### Deduction for additional expenses in providing partnership shares
##### 3
- (1) Where under an approved share incentive plan—
- (a) partnership shares are awarded to employees by reason of their employment with a company, and
- (b) the market value of those shares at the time they are acquired by the trustees exceeds the partnership share money paid by the participants to acquire those shares,
a deduction is allowed under this paragraph to that company.
- (2) Any such deduction—
- (a) is of an amount equal to the amount of the excess referred to in sub-paragraph (1)(b), and
- (b) must be made for the period of account in which the shares are awarded to employees in accordance with the plan.
- (3) Except as provided by sub-paragraph (1), no deduction may be made by that company or any associated company in respect of the provision of those shares.
This is subject to paragraphs 7 and 8 (deductions for costs of setting up, and contributions to running expenses of, plan).
- (4) If a deduction is made under this paragraph by a company, no deduction may be made by any other company under this paragraph in respect of the provision of the shares.
- (5) This paragraph has effect subject to paragraph 4 (cases in which no deduction is allowed).
### Cases in which no deduction is allowed
##### 4
- (1) No deduction is allowed under paragraph 2 or 3 (deductions for providing free or matching shares or for additional expenses in providing partnership shares) in the following cases.
- (2) No deduction is allowed in respect of shares awarded to an individual under the plan unless, at the time of the award, any earnings from the required employment are (or would be) chargeable earnings.
- (3) In sub-paragraph (2)—
- “*chargeable earnings*” means general earnings to which any of the charging provisions of Chapter 4 or 5 of Part 2 of ITEPA 2003 apply, and
- the “*required employment*” means the employment by reference to which the individual is eligible to participate in the award.
- (4) In sub-paragraph (3), the reference to any of the charging provisions of Chapter 4 or 5 of Part 2 of that Act has the same meaning as it has in the employment income Parts of ITEPA 2003 (see sections 14(3) and 20(3) of that Act).
- (5) No deduction is allowed in respect of shares that are liable to depreciate substantially in value for reasons that do not apply generally to shares in the company.
- (6) No deduction is allowed if a deduction has been made—
- (a) by the company, or
- (b) by an associated company of the company,
in respect of the provision of the same shares for this or another trust.
- (7) Sub-paragraph (6) applies whatever the nature or purpose of the other trust and whatever the basis on which the deduction was made.
- (8) For the purposes of determining whether the same shares have been provided to more than one trust, if shares have been acquired by the trustees of the plan trust on different days it shall be assumed that those acquired on an earlier day are awarded under the plan before those acquired by the trustees on a later day.
- (9) No deduction is allowed in respect of the award of shares acquired by the trustees by virtue of a payment in respect of which a deduction has been made under paragraph 9 (deduction for contribution to plan trust) or 10(3) (further deduction where deduction under paragraph 9 withdrawn).
### No deduction for expenses in providing dividend shares
##### 5
- (1) No deduction is allowed for expenses in providing shares that are acquired on behalf of individuals under an approved share incentive plan as dividend shares.
- (2) This is subject to paragraph 8 (deductions for contributions to running expenses of plan).
### Treatment of forfeited shares
##### 6
- (1) This paragraph applies if any of a participant’s plan shares are forfeited.
- (2) The shares are treated for the purposes of this Schedule as acquired by the trustees—
- (a) when the forfeiture occurs, and
- (b) for no consideration.
- (3) No deduction is allowed under paragraph 2 or 3 (deductions for providing free or matching shares or for additional expenses in providing partnership shares) in respect of any subsequent award of those shares under the plan.
### Deduction for costs of setting up the plan
##### 7
- (1) A deduction is allowed under this paragraph for expenses incurred by a company in establishing a share incentive plan which is approved by the Inland Revenue.
- (2) No deduction may be made under this paragraph if—
- (a) any employee acquires rights under the plan, or
- (b) the trustees acquire any shares for the purposes of the plan,
before the Inland Revenue approve the plan.
- (3) If Inland Revenue approval of the plan is given more than nine months after the end of the period of account in which the expenses are incurred, the expenses are treated for the purposes of this paragraph as deductible for the period in which the approval is given.
- (4) No other deduction is allowed in respect of expenses for which a deduction is allowed under this paragraph.
### Deductions for contributions to running expenses of plan
##### 8
- (1) Nothing in this Schedule affects any deduction for expenses incurred by a company in contributing to the expenses of the trustees in operating an approved share incentive plan.
- (2) For this purpose the expenses of the trustees in operating the plan—
- (a) do not include expenses in acquiring shares for the purposes of the trust, other than incidental acquisition costs, but
- (b) do include the payment of interest on money borrowed by them for that purpose.
- (3) In sub-paragraph (2)(a) “*incidental acquisition costs*” means any fees, commission, stamp duty and similar incidental costs attributable to the acquisition of the shares.
### Deduction for contribution to plan trust
##### 9
- (1) A deduction is allowed to a company under this paragraph where—
- (a) on or after 6th April 2003, that company makes a payment to the trustees of an approved share incentive plan in order to enable them to acquire shares in that company or a company which controls it,
- (b) the payment is applied by the trustees to acquire such shares,
- (c) the shares are not acquired from a company, and
- (d) the condition in sub-paragraph (2) is met in relation to the company in which the shares are acquired.
- (2) The condition in this sub-paragraph is that, at the end of the period of 12 months beginning with the date of the acquisition, the trustees hold shares in the company for the plan trust that—
- (a) constitute not less than 10 per cent of the ordinary share capital of the company, and
- (b) carry rights to not less than 10 per cent of—
- (i) any profits available for distribution to shareholders of the company,
- (ii) any assets of that company available for distribution to its shareholders in the event of a winding-up.
- (3) For the purposes of sub-paragraph (2), shares that have been appropriated to, and acquired on behalf of, an individual under the plan shall continue to be treated as held by the trustees of the plan trust for the beneficiaries of that trust until such time as they cease to be subject to the plan (within the meaning of the SIP code).
- (4) A deduction allowed under this paragraph—
- (a) is of an amount equal to the amount of the payment referred to in sub-paragraph (1), and
- (b) must be made for the period of account in which the condition in sub-paragraph (2) is met.
- (5) No other deduction is allowed for any amount in respect of which a deduction has been made under this paragraph (except as specified in paragraph 10).
### Withdrawal of deduction under paragraph 9
##### 10
- (1) The Inland Revenue may by notice direct that the benefit of a deduction made under paragraph 9 is withdrawn where—
- (a) fewer than 30 per cent of the shares acquired by virtue of the payment in respect of which the deduction is made have been awarded under the plan before the end of the period of 5 years beginning with the date of acquisition, or
- (b) not all the shares acquired by virtue of that payment have been so awarded before the end of the period of 10 years beginning with that date.
- (2) The effect of a direction under sub-paragraph (1)(a) or (b) is that the amount of the deduction is treated as a trading receipt of the company for the period of account in which the direction is given.
- (3) However, where—
- (a) the Inland Revenue give a direction under sub-paragraph (1)(a) or (b) in respect of any deduction, and
- (b) at any time after the giving of the direction, all the shares acquired by virtue of the payment in respect of which the deduction was made are awarded under the plan,
a further deduction is allowed under this sub-paragraph to the company which made the payment.
- (4) A deduction under sub-paragraph (3)—
- (a) is of an amount equal to the amount of the payment referred to in that sub-paragraph, and
- (b) must be made for the period of account in which sub-paragraph (3)(b) is first satisfied.
- (5) No other deduction is allowed in respect of any amount for which a deduction has been made under sub-paragraph (3).
- (6) Sub-paragraph (8) applies where—
- (a) a deduction is made under paragraph 9 (deduction for contribution to plan trust) or sub-paragraph (3) in respect of a payment for the acquisition of shares, but
- (b) shares are awarded under the plan to an individual at a time when the earnings from the required employment are not (or would not be if there were any) chargeable earnings.
- (7) In sub-paragraph (6) “required employment” and “*chargeable earnings*”, in relation to an individual, have the same meanings as they have in paragraph 4(2) (cases in which no deduction is allowed).
- (8) An amount equal to the appropriate proportion of the deduction is treated as a trading receipt of the company for the period of account in which the shares are so awarded.
- (9) For the purposes of sub-paragraph (8), the appropriate proportion of the deduction is the proportion which the number of shares awarded to the individual bears to the total number of shares acquired by virtue of the payment.
- (10) For the purposes of this paragraph, where shares are acquired by the trustees on different days, it shall be assumed that those acquired on an earlier day are awarded to employees under the plan before those acquired by the trustees on a later day.
### Withdrawal of deductions on withdrawal of approval
##### 11
- (1) If approval of a share incentive plan is withdrawn the Inland Revenue may by notice to a company direct that the benefit of—
- (a) any deductions under paragraph 2 (deduction for providing free or matching shares),
- (b) any deductions under paragraph 3 (deduction for additional expenses in providing partnership shares),
- (c) any deductions under paragraph 9 (deduction for contribution to plan trust) (in so far as not already withdrawn under paragraph 10), or
- (d) any deductions under paragraph 10(3) (further deduction where deduction under paragraph 9 withdrawn),
in relation to the plan is also withdrawn.
- (2) The effect of the direction is that the aggregate amount of the deductions is treated as a trading receipt of that company for the period of account in which the Inland Revenue give notice of the withdrawal of approval.
### Termination of plan: shares acquired as mentioned in paragraph 9 but not yet awarded
##### 12
- (1) This paragraph applies where the company has issued a plan termination notice under paragraph 89 of Schedule 2 to ITEPA 2003 (termination of plan).
- (2) In a case where—
- (a) by virtue of a payment made to the trustees by the company, the trustees acquire shares in the company, or a company which controls it,
- (b) a deduction under paragraph 9 (deduction for contribution to plan trust) has been made in respect of that payment (and has not been withdrawn under paragraph 10), and
- (c) not all the shares acquired by virtue of the payment have been awarded under the plan before issue of the plan termination notice,
an amount equal to the appropriate proportion of the deduction is treated as a trading receipt of the company for the period of account in which the plan termination notice is given.
- (3) For the purposes of sub-paragraph (2), the appropriate proportion of the deduction is the proportion which the number of shares acquired by virtue of the payment and not awarded as specified in sub-paragraph (2)(c) bears to the total number of shares so acquired.
### Application of provisions to expenses of management of companies with investment business etc
##### 13
- (1) The provisions of this Schedule apply in relation to—
- (a) companies with investment business, and
- (b) companies in relation to which section 76 applies (expenses of insurance companies),
in accordance with the following provisions.
- (2) The provisions of this Schedule which allow a deduction in calculating the profits of a trade apply—
- (a) in relation to a company with investment business, to treat amounts as expenses of management, and
- (b) in relation to companies in relation to which section 76 applies, to treat amounts as expenses payable falling to be brought into account at Step 1 in section 76(7).
- (3) Paragraph 11(2) applies as if the reference to a trading receipt for the period of account in which the Inland Revenue give notice of the withdrawal of approval were a reference to profits or gains chargeable to tax under Case VI of Schedule D arising when the Inland Revenue give notice of the withdrawal.
## SCHEDULE 4A
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 1
This Schedule enables an individual (“*the taxpayer*”) to make a claim (an “*averaging claim*”) if his profits from a qualifying trade, profession or vocation (his “*relevant profits*”) fluctuate from one tax year to the next.
##### 2
- (1) A trade, profession or vocation is a “*qualifying trade, profession or vocation*” if the taxpayer’s profits from it—
- (a) are derived wholly or mainly from qualifying creative works, and
- (b) are chargeable to tax under Case I or II of Schedule D.
- (2) In sub-paragraph (1) “*qualifying creative works*” means—
- (a) literary, dramatic, musical or artistic works, or
- (b) designs,
created by the taxpayer personally or, where the trade, profession or vocation is carried on by the taxpayer in partnership, by one or more of the partners personally.
##### 3
- (1) An averaging claim may be made if the taxpayer has been carrying on the qualifying trade, profession or vocation in two consecutive tax years and either—
- (a) his relevant profits for one of the tax years are less than 75% of his relevant profits for the other, or
- (b) his relevant profits for one (but not both) of the tax years are nil.
- (2) For the purposes of paragraph 4 (years in respect of which averaging claim may be made) an averaging claim relates to both of the years involved.
##### 4
- (1) An averaging claim may not be made in relation to a tax year if an averaging claim in respect of the same qualifying trade, profession or vocation has already been made in relation to a later tax year.
- (2) An averaging claim may not be made in relation to a tax year in which—
- (a) the taxpayer starts, or permanently ceases, to carry on the trade, profession or vocation, or
- (b) the trade, profession or vocation begins or ceases to be a qualifying trade, profession or vocation.
- (3) An averaging claim may be made in relation to a tax year which was the later year on a previous averaging claim.
##### 5
An averaging claim must be made not later than twelve months after the 31st January next following the end of the later of the tax years to which it relates.
#### Supplement in respect of a pre-commencement accounting period
##### 6
- (1) Where the taxpayer is entitled to make, and makes, an averaging claim, the amount taken to be his profits from the qualifying trade, profession or vocation for each of the tax years to which the claim relates is adjusted in accordance with this paragraph.
- (2) If—
- (a) the taxpayer’s relevant profits for one of the years amount to 70% or less of his relevant profits for the other year, or
- (b) the taxpayer’s relevant profits for one (but not both) of the years are nil,
the amount of the adjusted profits for each of the years to which the claim relates is the average of the relevant profits for the two years.
- (3) If the taxpayer’s relevant profits for one of the years amount to more than 70%, but less than 75%, of his relevant profits for the other year, the amount of the profits in each of the years is calculated as follows, so as to reduce the variation between them.
*Step 1*
The amount of the adjustment is given by the formula—
$$(D×3)-(P×0.75)$where—D is the difference between the taxpayer’s relevant profits for the two tax years, andP is the taxpayer’s relevant profits for the year in which those profits are higher.$
*Step 2*
Add the amount of the adjustment to the taxpayer’s relevant profits for the year in which those profits are lower.
The result is the amount of the adjusted profits for that year.
*Step 3*
Subtract the amount of the adjustment from the taxpayer’s relevant profits for the year in which those profits are higher.
The result is the amount of the adjusted profits for that year
- (4) Subject to the following provisions of this Schedule, the adjusted profits are taken to be the taxpayer’s relevant profits for the years to which the claim relates for all the purposes of the Income Tax Acts, including the further application of this Schedule.
##### 7
- (1) An averaging claim relating to two tax years (“*the earlier year*” and “*the later year*”) is given effect in the later year.
- (2) In so far as the claim involves an adjustment to the profits for the earlier year it is treated as a claim for the amount of the difference between—
- (a) the amount in which the taxpayer is chargeable to tax for the earlier year (“*amount A*”), and
- (b) the amount in which he would be so chargeable if effect were given to the adjustment in that year (“*amount B*”).
- (3) That claim is given effect in the later year by increasing the amount referred to in section 59B(1)(b) of the Management Act (aggregate amount of payments on account made by the taxpayer) or, as the case may require, by increasing the amount of tax payable.
- (4) Where effect falls to be given to two or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the other claim or claims in relation to the earlier year.
- (5) Where this paragraph applies twice in relation to the same tax year, the increase or reduction in the amount of tax payable for that year as a result of the earlier application shall be disregarded in determining amounts A and B above for the purposes of the later application.
##### 8
- (1) A claim by the taxpayer for relief under any other provision of the Income Tax Acts for either of the years to which an averaging claim relates (“*the other claim*”)—
- (a) is not out of time if made on or before the last date on which the averaging claim could have been made, and
- (b) if already made, may be amended or revoked on or before that date.
- (2) If the other claim is made by being included in a return, the reference in sub-paragraph (1)(b) to amending or revoking the claim shall be read as a reference to amending the return by amending or omitting the claim.
##### 9
- (1) This paragraph applies where—
- (a) the taxpayer makes or amends a claim for relief under any other provision of the Income Tax Acts for either of the years to which an averaging claim relates, and
- (b) the making or amendment of the claim would be out of time but for paragraph 8.
- (2) The claim or amendment is given effect in the later year.
- (3) In so far as the claim or amendment relates to income of the earlier year, the amount claimed, or (as the case may be) the increase or reduction in the amount claimed, shall be equal to the difference between—
- (a) the amount in which the taxpayer is chargeable to tax for the earlier year (“*amount A*”), and
- (b) the amount in which he would be so chargeable on the assumption that effect could be, and was, given to the claim or amendment in relation to that year (“*amount B*”).
- (4) That claim or amendment is given effect in the later year by increasing the amount referred to in section 59B(1)(b) of the Management Act (aggregate amount of payments on account made by the taxpayer) or, as the case may require, by increasing the amount of tax payable.
- (5) Where effect falls to be given to two or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the other claim or claims in relation to the earlier year.
- (6) In this paragraph “*amend*” includes revoke and “*amendment*” has a corresponding meaning.
##### 10
- (1) If after the taxpayer has made an averaging claim, his relevant profits in either or both of the tax years to which the claim relates are adjusted for some other reason—
- (a) the averaging claim shall be disregarded, and
- (b) a further averaging claim may be made in relation to the taxpayer’s relevant profits as adjusted.
- (2) A further averaging claim is not out of time provided it is made not later than twelve months after the 31st January next following the tax year in which the adjustment for the other reason is made.
##### 11
- (1) References in this Schedule to the taxpayer’s profits from a qualifying trade, profession or vocation are to profits before making deductions for losses sustained in any tax year.
- (2) If the taxpayer sustains a loss in the qualifying trade, profession or vocation in any tax year, the profits of that year for the purposes of this Schedule are nil.
This shall not be read as preventing the taxpayer from obtaining relief under the Income Tax Acts for a loss sustained by him in that or any other tax year.
##### 12
In this Schedule any reference to the amount in which a person is chargeable to tax is a reference to the amount in which he is so chargeable after taking into account any relief or allowance for which a claim is made.
##### 13
- (1) In this Schedule any reference to a claim includes a reference to an election or notice.
- (2) For the purposes of this Schedule, two or more claims made by the same person are associated with each other if each of them is any of the following—
- (a) a claim to which this Schedule applies, or
- (b) a claim to which Schedule 1B to the Management Act applies (other claims involving more than one year to be given effect in later year),
and the same tax year is the earlier year in relation to each of those claims.
- (3) In sub-paragraph (2)—
- (a) the reference to a claim to which this Schedule applies includes amendments and revocations to which paragraph 9 above applies;
- (b) the reference to a claim to which Schedule 1B to the Management Act applies includes amendments and revocations to which paragraph 4 of that Schedule applies.
##### 14
In this Schedule a “*tax year*” means a year of assessment.
## SCHEDULE 5AA
### Charge to tax etc.
##### 1
- (1) Subject to sub-paragraph (2) below, profits and gains arising from a transaction to which this Schedule applies (including those which, apart from this sub-paragraph, would be taken to be of a capital nature) shall be treated, when realised—
- (a) as income of the person by whom they are realised; and
- (b) as chargeable to tax under Case VI of Schedule D for the chargeable period in which they are realised.
- (2) Sub-paragraph (1) above does not apply to—
- (a) so much of any profits or gains arising to a person from a transaction as are charged to tax in his case under Case I or V of Schedule D;
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) For the purposes of this Schedule the profits and gains arising from a transaction to which this Schedule applies are to be taken to be realised at the time when the disposal comprised in the transaction takes place.
- (5) For the purposes of sections 392 . . . any loss in a transaction to which this Schedule applies is to be taken to be sustained at the time when, in accordance with sub-paragraph (4) above, any profits or gains arising from that transaction would have been realised.
- (6) Subject to sub-paragraph (7) below, the following, namely—
- (a) profits and gains to which sub-paragraph (1) above applies, and
- (b) losses in transactions the profits and gains from which (if there were any) would be profits and gains to which that sub-paragraph applies,
shall not be brought into account for the purposes of income tax . . . or capital gains tax except by virtue of this Schedule and, in the case of losses, section 392 . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Classes of life assurance business
##### 431B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431BA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431EA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Basis of taxation etc
##### 431G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 431H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432YA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432CA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432CB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cases where section 747(3) does not apply.
##### 432F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 432G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous provisions relating to life assurance business
##### 434AZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction in chargeable profits for certain financing income
##### 434AZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434AZC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434B
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 434E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 436A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 436B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 437A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 438B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 438C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 439A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 439B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 440B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 440C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special rule for computing chargeable profits.
##### 440D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 441B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 442A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction in chargeable profits: failure to qualify for exemptions
##### 444AZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ABA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ABAA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Transactions to which Schedule applies
##### 2
- (1) This Schedule applies to a transaction if—
- (a) it is a disposal of futures or options;
- (b) it is one of two or more related transactions designed to produce a guaranteed return; and
- (c) the guaranteed return comprises the return from that disposal or from a number of disposals of futures or options, of which that disposal is one, taken together.
- (2) For the purposes of this Schedule two or more related transactions are transactions designed to produce a guaranteed return if, taking the transactions together, it would be reasonable to assume, from either or both of—
- (a) the likely effect of the transactions, and
- (b) the circumstances in which the transactions are entered into, or in which any of them is entered into,
that their main purpose, or one of their main purposes, is or was the production of a guaranteed return from one or more disposals of futures or options.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Production of guaranteed return
##### 3
- (1) For the purposes of this Schedule a guaranteed return is produced from one or more disposals of futures or options wherever (taking all the disposals together where there is more than one) risks from fluctuations in the underlying subject matter are so eliminated or reduced as to produce a return from the disposal or disposals—
- (a) the amount of which is not, to any significant extent, attributable (otherwise than incidentally) to any such fluctuations; and
- (b) which equates, in substance, to the return on an investment of money at interest.
- (2) For the purposes of sub-paragraph (1) above the cases where risks from fluctuations in the underlying subject matter are eliminated or reduced shall be deemed to include any case where the main reason, or one of the main reasons, for the choice of that subject matter is—
- (a) that there appears to be no risk that it will fluctuate; or
- (b) that the risk that it will fluctuate appears to be insignificant.
- (3) In this paragraph the references, in relation to a disposal of futures or options, to the underlying subject matter are references to or to the value of the commodities, currencies, shares, stock or securities, interest rates, indices or other matters to which, or to the value of which, those futures or options are referable.
### Disposals of futures or options
##### 4
- (1) For the purposes of this Schedule a disposal is a disposal of futures or options if it consists in—
- (a) the disposal of one or more futures;
- (b) the disposal of one or more options; or
- (c) the disposal of one or more futures together with one or more options.
- (2) Subject to sub-paragraph (4) below, any question for the purposes of this Schedule as to whether there is a disposal falling within sub-paragraph (1)(a) to (c) above, or as to when such a disposal is made, shall be determined, on the assumptions specified in sub-paragraph (3) below, in accordance with—
- (a) section 143(5) and (6), 144 and 144A of the 1992 Act (closing out and settlement of futures contracts and rules in relation to options); and
- (b) the other provisions having effect for determining for the purposes of that Act whether or when an asset is disposed of;
and references in this Schedule to entering into a transaction are references, in relation to a transaction consisting in a disposal, to the making of the disposal.
- (3) Those assumptions are—
- (a) that all futures are assets for the purposes of the 1992 Act;
- (b) that the words “*in the course of dealing in commodity or financial futures*” are omitted in each place where they occur in section 143(5) and (6) of that Act; and
- (c) that any reference in that Act to a financial option within the meaning given by section 144(8) of that Act is a reference to any option that is not a traded option.
- (4) Subject to sub-paragraph (5) below, where—
- (a) one of a number of related transactions designed to produce a guaranteed return is the grant of an option,
- (b) at least one of the other transactions is a transaction entered into after the grant of the option, and
- (c) the transaction or transactions entered into after the grant of the option is or include a disposal which is not itself the grant of an option,
the disposal consisting in the grant of the option shall be deemed for the purposes of this Schedule to be a disposal made on the first occasion after the grant of the option when one of the other transactions which is a disposal but is not itself the grant of an option is entered into.
- (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) Nothing in sub-paragraph (4) above affects so much of sub-paragraph (2) above as (by applying section 144(2) or 144A(2) of the 1992 Act (cases where options are exercised))—
- (a) requires the grant of an option and the transaction entered into by the grantor in fulfilment of his obligations under that option to be treated for the purposes of this Schedule as a single transaction; or
- (b) determines the time at which such a single transaction is to be treated for the purposes of this Schedule as entered into.
- (6) In this paragraph—
- “*future*” means outstanding rights and obligations under a commodity or financial futures contract;
- “*option*” means a traded option or an option which is not a traded option but is an option relating to—currency, shares, stock, securities or an interest rate; orrights under a commodity or financial futures contract;and includes any liability or entitlement under an option.
- “*traded option*” has the meaning given for the purposes of subsection (4) of section 144 of the 1992 Act by subsection (8) of that section.
### Futures running to delivery and options exercised
##### 4A
- (1) This paragraph applies where for the purposes of this Schedule—
- (a) there are or, apart from section 144(2) or (3) of the 1992 Act, would be two or more related transactions;
- (b) one of those transactions is or would be the creation or acquisition (by the making or receiving of a grant or otherwise) of a future or option;
- (c) the other transaction, or one of the other transactions, is or would be the running of the future to delivery or the exercise of the option; and
- (d) the transaction mentioned in paragraph (c) above is not treated for those purposes as a disposal of a future or option.
- (2) This Schedule shall have effect in relation to the parties to the future or option as if the transaction specified in sub-paragraph (3) below—
- (a) were a transaction for which the scheme or arrangements by reference to which the transactions are related transactions provided; and
- (b) were a transaction which in fact takes place at the time (“the relevant time") immediately before the future runs to delivery or, as the case may be, the option is exercised.
- (3) That transaction is a disposal of the future or option which—
- (a) in the case of a person whose rights and entitlements under the future or option have a market value at the relevant time, consists in a disposal for a consideration equal to that market value; and
- (b) in the case of any other party to the future or option, consists in a disposal which—
- (i) is made for a nil consideration; and
- (ii) involves that person in incurring costs equal to the amount specified in sub-paragraph (4) below.
- (4) That amount is the amount which that party to the future or option might reasonably have been expected to pay, in a transaction at arm’s length entered into at the relevant time, for the release of his obligations and liabilities under the future or option.
- (5) Where, in a case in which a transaction is deemed to take place by virtue of sub-paragraph (2)(b) above (“the deemed transaction")—
- (a) any profits or gains arising from the deemed transaction are chargeable to tax under Case VI of Schedule D in accordance with paragraph 1(1) above, or
- (b) any loss arising in the deemed transaction is brought into account for the purposes of section 392 . . . in accordance with paragraph 1(5) above,
amounts taken into account or allowable as deductions in computing those profits or gains, or that loss, shall not be excluded by virtue of section 37 or 39 of the 1992 Act (exclusion of amounts taken into account or allowable for the purposes of the taxation of income and profits) from any computation made for the purposes of that Act, but paragraph 1(6) above shall be given effect to in relation to the 1992 Act in accordance with sub-paragraphs (6) to (10) below.
- (6) Where there are profits or gains arising to any person (“the taxpayer") from the deemed transaction, an increase equal to the amount of those profits or gains shall be made in the amount that would otherwise be taken for the purposes of the 1992 Act to be—
- (a) the amount of the consideration for the acquisition of any asset acquired by the taxpayer by means of the future running to delivery or, as the case may be, by the exercise of the option; or
- (b) the amount of the consideration for the acquisition by him of any asset disposed of by him by means of the future running to delivery or, as the case may be, in consequence of the exercise of the option;
but any increase made by virtue of paragraph (b) above in the amount of any consideration shall be disregarded in computing the amount of any indexation allowance.
- (7) Where there is a loss for any person (“the taxpayer") in the deemed transaction—
- (a) a reduction equal to the smaller of the amount of the loss and the amount to be reduced shall be made in the amount that would otherwise be taken for the purposes of the 1992 Act to be the amount of the consideration mentioned in sub-paragraph (6)(a) or (b) above; and
- (b) the amount (if any) by which the amount of the loss exceeds the amount to be reduced shall be deemed to be a chargeable gain accruing to the taxpayer on the occasion specified in sub-paragraph (8) below.
- (8) That occasion is—
- (a) in a case where the consideration mentioned in paragraph (a) of sub-paragraph (6) above has been reduced to nil, the first occasion after the acquisition mentioned in that paragraph when there is a disposal of the asset in question; and
- (b) in a case where it is the consideration mentioned in sub-paragraph (6)(b) above that has been reduced to nil, the occasion of the disposal made by the taxpayer by means of the future running to delivery or, as the case may be, in consequence of the exercise of the option.
- (9) For the purposes of sub-paragraphs (6) and (7) above, where in any case there is a deemed disposal of an option by the person who granted it, any determination—
- (a) of the profits arising to the grantor of the option from that disposal, or
- (b) of the losses for the grantor in that disposal,
shall be made as if that disposal and the disposal by which the option was granted were a single transaction.
- (10) In sub-paragraph (8) above—
- (a) the reference in paragraph (a) to a disposal of the asset in question includes a reference to anything that would be such a disposal but for the provisions of section 116(10) or 127 of the 1992 Act; and
- (b) the references in each of paragraphs (a) and (b) to a disposal include references to a disposal which, in accordance with the 1992 Act, would (apart from sub-paragraph (7)(b) above) be a disposal on which neither a gain nor a loss accrues.
- (10A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (11) In this paragraph—
- “*future*” and “*option*” have the same meanings as in paragraph 4 above;
- “*market value*” has the same meaning as in the 1992 Act;
- “*party*”, in relation to a future or option, means one of the persons who has any right or entitlement comprised in or arising under the future or option or who is subject to any obligation or liability so comprised or arising;
and references in this paragraph to a future running to delivery are references to the discharge by performance of the obligations owed under the commodity or financial futures contract in question to the party to the future whose rights are in relation to its underlying subject matter.
- (12) Sub-paragraph (3) of paragraph 3 above applies for the purposes of sub-paragraph (11) above as it applies for the purposes of that paragraph.
### The return from one or more disposals
##### 5
- (1) In this Schedule references to the return from one or more disposals are references to the return on investment represented either—
- (a) by the total net profits and gains arising from the disposal or disposals; or
- (b) by all but an insignificant part of those net profits and gains.
- (2) For the purposes of the references in sub-paragraph (1) above to the total net profits and gains from any two or more disposals, it shall be assumed that profits and gains realised, and losses sustained, by persons who are associated with each other are all realised or sustained by the same person.
- (3) For the purposes of sub-paragraph (2) above persons are associated with each other in relation to any two or more disposals made in pursuance of the same scheme or arrangements if—
- (a) each of those persons shares or is to share, to an extent determined for the purposes of or in accordance with the scheme or arrangements, in the net return represented by the aggregate of all the profits, gains and losses realised or sustained on those disposals;
- (b) those persons are associated companies at the time when the last of those disposals is made; or
- (c) those persons have been associated companies at an earlier time falling after the first occasion on which a transaction was entered into in pursuance of the scheme or arrangements.
- (4) In this paragraph—
- “*associated company*” shall be construed in accordance with section 416; and
- “*scheme or arrangements*” shall be construed in accordance with paragraph 6(4) below.
### Related transactions
##### 6
- (1) For the purposes of this Schedule two or more transactions are related if all of them are entered into in pursuance of the same scheme or arrangements.
- (2) Nothing in this Schedule shall be construed as preventing transactions with different parties, or transactions with parties different from the parties to the scheme or arrangements in pursuance of which they are entered into, from being related transactions.
- (3) For the purposes of this paragraph the cases in which any two or more transactions are to be taken to be entered into in pursuance of the same scheme or arrangements shall include any case in which it would be reasonable to assume, from either or both of—
- (a) the likely effect of the transactions, and
- (b) the circumstances in which the transactions are entered into, or in which any of them is entered into,
that neither of them or, as the case may be, none of them would have been entered into independently of the other or others.
- (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) In this paragraph “*scheme or arrangements*” includes schemes, arrangements and understandings of any kind, whether or not legally enforceable.
### Special rule for trusts
##### 7
- (1) Where any profits or gains are treated, in accordance with paragraph 1 above, as income arising to trustees for any year of assessment, the relevant part of that income shall be treated for the purposes of the Tax Acts as if it were income to which section 686 applies (income taxable at the rate applicable to trusts).
- (2) In sub-paragraph (1) above the reference to the relevant part of any income is a reference to so much (if any) of that income as—
- (a) does not fall to be treated for the purposes of the Income Tax Acts as income of a settlor;
- (b) is not income arising under a trust established for charitable purposes; and
- (c) is not income from investments, deposits or other property held for any such purposes as are mentioned in sub-paragraph (i) or (ii) of section 686(2)(c) (property held for pension purposes).
- (3) Subsection (6) of section 686 (meaning of “*trustees*” etc.) shall apply for the purposes of this paragraph as it applies for the purposes of that section.
### Transfer of assets abroad
##### 8
For the purpose of determining whether an individual ordinarily resident in the United Kingdom has a liability for income tax in respect of any profit or gain which—
- (a) is realised by a person resident or domiciled outside the United Kingdom, and
- (b) arises from a transaction to which this Schedule applies,
sections 739 and 740 (transfer of assets abroad) shall have effect as if that profit or gain, when realised, constituted income becoming payable to the person resident or domiciled outside the United Kingdom.
### Apportionment in the case of insurance companies
##### 9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## SCHEDULE 5A
### Introductory
##### 1
- (1) In this Schedule—
- (a) “*approved stock lending arrangement*” means an arrangement such as is mentioned in subsection (1), (2) or (2A) of section 129 and in relation to which that section and section 271(9) of the 1992 Act apply;
- (b) “*the borrower*”, in relation to such an arrangement, means the person to whom the securities are transferred under the arrangement; and
- (c) “*the lender*” means the person making that transfer and to whom, in return, securities of the same kind and amount are to be transferred.
- (2) References in this Schedule to the borrower or lender under an approved stock lending arrangement include any person acting as the nominee of the borrower or lender.
### Treatment of interest earned on cash collateral
##### 2
- (1) This paragraph applies where in connection with an approved stock lending arrangement—
- (a) the borrower pays to the lender an amount (“cash collateral”) by way of security for the performance of the obligation to transfer to the lender securities of the same kind and amount as those transferred by him;
- (b) interest is earned by the lender on the whole of the cash collateral in respect of the period for which he holds it, and is paid to him without deduction of tax; and
- (c) the lender pays to the borrower an amount (“rebate interest”) equal to the amount of interest earned by him on the cash collateral.
- (2) Where this paragraph applies—
- (a) the interest earned by the lender on the cash collateral shall be treated for all purposes of the Tax Acts as the income of the borrower and not as the income of the lender;
- (b) the lender shall not be required to deduct from the payment of rebate interest any sum representing income tax thereon;
- (c) no relief shall be given to the lender in respect of the payment under any provision of the Tax Acts; and
- (d) the rebate interest shall not be regarded as the income of the borrower.
- (3) This paragraph does not apply unless the amount of the rebate interest is identified as such by the parties separately from any fee or other amount payable in connection with the arrangement.
### Application of paragraph 2 in case of chain of arrangements
##### 3
- (1) Where the lender under one or more approved stock lending arrangements (“the lending arrangements”) is also the borrower under one or more other such arrangements (“the borrowing arrangements”) entered into to enable him to fulfil his obligations under the former arrangements, the interest which by virtue of paragraph 2(2)(a) above as it applies in relation to the borrowing arrangements is treated as his (the “attributed interest”) shall be treated for the purposes of that paragraph as it applies in relation to the lending arrangements as interest earned by him on the cash collateral provided under those arrangements, as follows.
- (2) Where the aggregate amount of the cash collateral provided under the borrowing arrangements equals that provided under the lending arrangements, the whole of the attributed interest shall be so treated.
- (3) Where the aggregate amount of the cash collateral provided under the borrowing arrangements exceeds that provided under the lending arrangements, a part of the attributed interest shall be so treated.
- (4) Where the aggregate amount of the cash collateral provided under the borrowing arrangements is less than that provided under the lending arrangements, the attributed interest shall be treated as earned by him on a part of the cash collateral provided under the lending arrangements.
### Interpretation
##### 4
In this Schedule—
- “*relief*” means relief by way of—deduction in computing profits or gains, ordeduction or set off against income or total profits; and
- “*securities*” includes stocks and shares.
## Schedule 6A
## Part I — Basic Case
### Cash equivalent
##### 1
- (1) This paragraph applies where the van mentioned in section 159AA(1)—
- (a) is not a van to which Part II of this Schedule applies for the year concerned, or
- (b) is a van to which that Part applies for the year concerned but is a shared van (within the meaning there given) for part only of the year.
- (2) Subject to paragraphs 2 and 3 below, the cash equivalent of the benefit is—
- (a) £500, if the van is aged less than 4 years at the end of the year concerned;
- (b) £350, if the van is aged 4 years or more at the end of the year concerned.
### Reductions for periods where van unavailable
##### 2
- (1) Subject to paragraph 3 below, where paragraph 1 above applies and for any part of the year concerned—
- (a) the van is unavailable, or
- (b) the van is a shared van (within the meaning given by Part II of this Schedule),
the cash equivalent of the benefit is the amount ascertained under paragraph 1 above (the full amount) reduced by an amount which bears to the full amount the same proportion as the number of excluded days in the year bears to 365.
- (2) For the purposes of sub-paragraph (1) above a van is to be treated as being unavailable on any day if—
- (a) the day falls before the first day on which the van is available to the employee,
- (b) the day falls after the last day on which the van is available to the employee, or
- (c) the day falls within a period, of 30 days or more, throughout which the van is not available to the employee.
- (3) For the purposes of sub-paragraph (1) above an excluded day is a day on which the van falls within paragraph (a) or (b) of that sub-paragraph.
### Reduction for payments for use of van
##### 3
- (1) Where paragraph 1 above applies and in the year concerned the employee is required, as a condition of the van being available for his private use, to pay any amount of money (whether by way of deduction from his emoluments or otherwise) for that use, then—
- (a) if the amount ascertained under paragraphs 1 and 2 above exceeds the relevant sum, the cash equivalent of the benefit is an amount equal to the excess;
- (b) if the relevant sum exceeds or is equal to the amount ascertained under paragraphs 1 and 2 above, the cash equivalent of the benefit is nil.
- (2) In sub-paragraph (1) above—
- (a) “*the relevant sum*” means the amount paid by the employee, as there mentioned, in respect of the year concerned, and
- (b) the reference to the van being available for the employee’s private use includes a reference to the van being available for the private use of others being members of his family or household.
- (3) If the van is a shared van (within the meaning given by Part II of this Schedule) for part of the year concerned, the reference in sub-paragraph (2) above to the year shall be construed as a reference to the part of the year when the van is not a shared van.
## Part II — SHARED VANS
### Introduction
##### 4
- (1) This Part of this Schedule applies to a van for a year if it is a shared van for any period in the year.
- (2) A van is a shared van for a period if the period is one throughout which the van is available concurrently to more than one employee of the same employer.
- (3) A van is also a shared van for a period if—
- (a) the period is one throughout which the van is available to different employees of the same employer, but
- (b) the circumstances are such that the employee or employees to whom the van is available at any given time in the period are not necessarily the same as the employee or employees to whom it is available at any other given time in the period.
- (4) But if the van is available to one employee only for a period exceeding 30 days (an exclusive period)—
- (a) the exclusive period shall not count towards any period that would otherwise fall within sub-paragraph (3) above;
- (b) any period falling within sub-paragraph (3) above shall be treated as ending when the exclusive period begins (without prejudice to the start after the exclusive period of a further period falling within sub-paragraph (3) above).
- (5) If a van would (apart from this sub-paragraph) be treated as shared during part of a day it shall be treated as shared throughout the day.
### Benefit to employee
##### 5
- (1) This paragraph applies where for any year this Part of this Schedule—
- (a) applies to a van, or
- (b) applies to each of two or more vans made available by the same employer.
- (2) For the purposes of this paragraph a participating employee is an employee to whom—
- (a) the van is available for his private use while it is a shared van (where only one van is involved),
- (b) one of the vans is available for his private use while it is a shared van (where more than one van is involved), or
- (c) some or all of the vans are available for his private use while they are shared vans (where more than one van is involved);
but an employee is not a participating employee unless he makes private use of the van, or (if more than one is involved) he makes private use of at least one of them, at least once while it is a shared van.
- (3) In sub-paragraph (2) above—
- (a) any reference to a van being available for an employee’s private use includes a reference to the van being available for the private use of others being members of his family or household, and
- (b) any reference to an employee making private use of a van includes a reference to a member of his family or household making private use of it.
- (4) This paragraph shall apply to each participating employee in the same way, irrespective of—
- (a) the number available to a particular employee of the vans involved;
- (b) the fact that a particular van involved is or is not available to him or used by him;
- (c) the extent to which a particular van involved is available to him or used by him.
- (5) Where this paragraph applies—
- (a) find the basic value of the van for the year or (as the case may be) the basic value for the year of each van involved;
- (b) take that basic value or (as the case may be) the aggregate of those basic values;
- (c) find for each participating employee a portion of the figure taken under paragraph (b) above by dividing it equally among the participating employees.
- (6) The figure found for a participating employee shall be taken to be the cash equivalent of the benefit to him in the year of—
- (a) the van available to him while it is a shared van (where only one van is involved or only one of the vans involved is available to him), or
- (b) the vans available to him while they are shared vans (where more than one van is involved and more than one of them is available to him).
### Basic value
##### 6
- (1) Subject to sub-paragraph (2) below, the basic value of a van for a year is—
- (a) £500, if the van is aged less than 4 years at the end of the year concerned;
- (b) £350, if the van is aged 4 years or more at the end of the year concerned.
- (2) Where for any part of the year—
- (a) the van is not a shared van, or
- (b) the van is incapable of use,
its basic value is the amount ascertained under sub-paragraph (1) above (the full value) reduced by an amount which bears to the full value the same proportion as the number of excluded days in the year bears to 365.
- (3) For the purposes of sub-paragraph (2) above a van is to be treated as being incapable of use on any day if the day falls within a period, of 30 days or more, throughout which the van is incapable of being used at all.
- (4) For the purposes of sub-paragraph (2) above an excluded day is a day on which the van falls within paragraph (a) or (b) of that sub-paragraph.
### Limit of benefit
##### 7
Where (apart from this paragraph) the figure found under paragraph 5 above for a participating employee for a year would exceed £500, the figure for the employee for the year shall be taken to be £500.
### Alternative calculation
##### 8
- (1) In a case where—
- (a) a figure is found under paragraph 5 or 7 above for a participating employee for a year, and
- (b) the employee makes a claim for this paragraph to be applied,
the figure found for the employee for the year shall be taken to be the alternative figure found under this paragraph.
- (2) The alternative figure is a figure found by—
- (a) taking for each van involved the number of relevant days;
- (b) aggregating the numbers found under paragraph (a) above where more than one van is involved;
- (c) multiplying the number found under paragraph (a) (or paragraphs (a) and (b)) above by £5.
- (3) For the purposes of sub-paragraph (2)(a) above a relevant day is a day which falls in the year and during which (or part of which) the employee, or a member of his family or household, makes private use of the van concerned while it is a shared van.
- (4) For the purposes of section 95 of the Taxes Management Act 1970 (incorrect return etc.) a claim under this paragraph shall be taken to be a claim for relief.
### Reduction for payments for use
##### 9
- (1) Where this Part of this Schedule applies and in the year concerned a participating employee is required, as a condition of the van or vans being available for his private use, to pay any amount of money (whether by way of deduction from his emoluments or otherwise) for that use, then—
- (a) if the figure found for the employee for the year under paragraph 5 or 7 or 8 above exceeds the relevant sum, the figure shall be taken to be a figure equal to the excess;
- (b) if the relevant sum exceeds or is equal to the figure found for the employee for the year under paragraph 5 or 7 or 8 above, the figure shall be taken to be nil.
- (2) For the purposes of this paragraph the relevant sum shall be found by—
- (a) taking for any van involved the amount paid by the employee, as a condition of it being available for his private use, in respect of the period when the van is a shared van in the year concerned, and
- (b) where more than one van is involved, aggregating the amounts found under paragraph (a) above.
- (3) Any reference in this paragraph to a van being available for the employee’s private use includes a reference to the van being available for the private use of others being members of his family or household.
## Part III — GENERAL
### Interaction of Parts I and II
##### 10
- (1) This paragraph applies where—
- (a) a cash equivalent of the benefit of a van to an employee in a year is found under Part I of this Schedule, and
- (b) a cash equivalent of the benefit of the same van (or of vans including the same van) to the employee in the year is found under Part II of this Schedule.
- (2) Once the different cash equivalents are so found, the employee shall be charged to tax as if the van concerned were different vans, one having a cash equivalent found under Part I of this Schedule and the other having (or counting towards) a cash equivalent found under Part II of this Schedule.
### Limit of cash equivalent
##### 11
In a case where—
- (a) the cash equivalent of the benefit of vans to an employee in a year would (apart from this paragraph) total more than £500, and
- (b) no more than one of the vans is available to him for his private use, or the private use of others being members of his family or household, at any one time in the year,
the cash equivalent of the benefit of the vans to him in the year shall be £500.
### Interpretation
##### 12
For the purposes of this Schedule a van is available to an employee at a particular time if it is then made available, by reason of his employment and without any transfer of the property in it, either to him or to others being members of his family or household.
### Apportionment of cash equivalent in case of joint loan etc.
##### 5A
- (1) Where in any year there are two or more employees chargeable to tax in respect of the same loan—
- (a) the cash equivalent of the benefit of the loan (determined in accordance with this Schedule) shall be apportioned between them in a fair and reasonable manner, and
- (b) the portion allocated to each employee shall be treated as the cash equivalent of the benefit of the loan so far as he is concerned.
- (2) For the purposes of determining the cash equivalent in such a case, the references in paragraph 5 above to the employee shall be construed as references to all the chargeable employees.
##### 13
This Part of this Schedule is subject to the provisions of Part IV below.
## PART IV — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 14
This Part of this Schedule applies in relation to the employee for any year for which he is, or, apart from paragraph 7, 8 or 9 above as they apply in relation to home loans, would be, liable to income tax at a rate higher than basic rate or to tax chargeable in respect of excess liability.
##### 15
Where this Part of this Schedule applies in relation to the employee for any year, none of paragraphs 7, 8 and 9 above shall apply in his case in relation to any home loan in that year, except as provided by paragraph 17 below.
##### 16
- (1) Where, by virtue only of paragraph 15 above, paragraph 7, 8 or 9 above does not apply in the case of the employee in relation to a home loan in any year, there shall be treated as interest eligible for relief under section 353 by virtue of section 355(1)(a) in that year—
- (a) in a case where, apart from paragraph 15 above, paragraph 7 would have applied in relation to the home loan, an amount equal to the cash equivalent of the benefit of that loan in that year, apart from paragraph 7, or
- (b) in a case where, apart from paragraph 15 above, paragraph 8 or 9 would have applied in relation to the home loan, an amount equal to the difference between—
- (i) the cash equivalent of the benefit of the home loan in that year, apart from paragraphs 8 and 9, and
- (ii) what the cash equivalent of the benefit of the home loan would have been in that year, apart from paragraph 15 above,
but subject to the following provisions of this paragraph.
- (2) In the application of section 353 by virtue of this paragraph—
- (a) the amount that falls to be treated as mentioned in sub-paragraph (1) above shall be taken to fall within paragraph (a) of subsection (1) of that section; and
- (b) subsections (2) and (3) of that section shall be disregarded in relation to that amount.
##### 17
Paragraph 15 above shall not prevent paragraph 7, 8 or 9 applying in the case of the employee in any year if, apart from paragraph 15—
- (a) he would not have been charged for that year to income tax at any rate higher than basic rate in respect of any of his total income or to tax in respect of excess liability; and
- (b) the aggregate of the following amounts, that is to say—
- (i) the amount of income in respect of which, apart from any home loans, he would have been charged to income tax for that year at the basic rate,
- (ii) any income which is treated by virtue of section 683(1) or 684(1) as his income for that year for the purposes of excess liability, notwithstanding that he would not have been charged to tax otherwise than at the basic rate,
- (iii) the cash equivalents, apart from paragraphs 7, 8 and 9 above, of the benefit of any home loans in that year, and
- (iv) his nominal element (if any) for that year, reduced by an amount equal to the cash equivalents, apart from paragraph 15 above, of the benefit of any home loans in that year,
does not exceed the basic rate limit by more than the amount specified in section 161(1) for that year.
##### 18
If, in the case of the employee, there is a home loan in any year and that is a year for which—
- (a) he is liable to income tax at a rate higher than basic rate or to tax chargeable in respect of excess liability (whether or not by virtue of this Part of this Schedule), but
- (b) he would not have been so liable apart from any home loans, and
- (c) there is in his case a nominal element,
then, in computing his liability to income tax for that year, the amount which falls to be treated as emoluments under section 160(1) in consequence of the operation of paragraph 15 above (or, if more than one, the aggregate of those amounts) shall be taken to be the highest part of the income charged to tax, and an amount equal to the nominal element shall be taken to be the lowest portion of that part.
## PART V — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 19
- (1) In this Schedule—
- “*eligible for relief*” shall be construed in accordance with sub-paragraph (2) below;
- “*eligible loan*” means—
- (a) any loan the interest on which is eligible for relief, other than a home loan; and
- (b) in a case where part of the interest on a loan is eligible for relief otherwise than by virtue of section 355(1)(a), 356(1) or 365, that proportion of the loan which that part of the interest bears to the whole of the interest;
and in determining for the purposes of this definition whether the whole or any part of the interest on a loan is so eligible for relief, it shall be assumed that interest at a uniform rate is paid on the loan, whether or not that is in fact the case;
- “*excess liability*” means liability to income tax over what it would be if all income tax not chargeable at the lower rateby virtue of section 1(2)(aa) were charged at the basic rate, or (so far as applicable in accordance with section 207A) the lower rate,, to the exclusion of any higher rate;
- “*home loan*” means—
- (a) any loan the interest on which is, or apart from section 357 would have been, eligible for relief by virtue of section 355(1)(a), 356(1) or 365; and
- (b) in a case where part of the interest on a loan is or would have been so eligible for relief, that proportion of the loan which that part of the interest bears to the whole of the interest;
and in determining for the purposes of this definition whether the whole or any part of the interest on a loan is or would have been so eligible for relief, it shall be assumed that interest at a uniform rate is paid on the loan, whether or not that is in fact the case;
- “*loan*”, except in Part I of this Schedule, shall be construed in accordance with sub-paragraphs (3) to (5) below;
- “*nominal element*”, in relation to the employee, means the amount (if any) which, apart from paragraph 15 above, would, by virtue of section 161(1), not have been charged to tax under section 160 in that year in his case.
- (2) Interest is “*eligible for relief*” for the purposes of this Schedule if it is eligible for relief under section 353 or would be eligible for such relief apart from subsection (2) of that section.
- (3) In the definitions of “*eligible loan*” and “*home loan*” in sub-paragraph (1) above, “*loan*” means any such loan as is mentioned in section 160(1), and for this purpose sub-paragraphs (4) and (5) below shall be disregarded.
- (4) Where by virtue of sub-paragraph (1) above part of a loan constitutes a home loan or an eligible loan, the loan shall be treated for the purposes of this Schedule, apart from Part I, as if it were two or more separate loans, consisting respectively—
- (a) of the part (if any) which is a home loan,
- (b) of the part (if any) which is an eligible loan, and
- (c) of the part (if any) which is neither a home loan nor an eligible loan,
and, subject to sub-paragraph (5) below, references in this Schedule, apart from Part I, to loans, home loans and eligible loans shall be construed accordingly.
- (5) Except for home loans and eligible loans, all the loans between the same lender and borrower for which a cash equivalent falls to be ascertained and which are outstanding at any time, as to any amount, in any year are to be treated for the purposes of this Schedule, apart from Part I, as a single loan.
## SCHEDULE 7A
### Introduction
##### 1
For the purposes of section 161B(1) a loan “*on ordinary commercial terms*” means a loan—
- (a) made by a person (“*the lender*”) in the ordinary course of a business carried on by him which includes—
- (i) the lending of money, or
- (ii) the supplying of goods or services on credit, and
- (b) in relation to which the requirements of paragraph 2, 3 or 4 below are met.
### Requirements relating to original loan
##### 2
- (1) This paragraph applies to any loan and the relevant time for the purposes of this paragraph is the time the loan was made.
- (2) The requirements of this paragraph are—
- (a) that at the relevant time comparable loans were available to all those who might be expected to avail themselves of the services provided by the lender in the course of his business;
- (b) that a substantial proportion of the relevant loans were made to members of the public;
- (c) that the loan in question and comparable loans generally made by the lender at or about the relevant time to members of the public are held on the same terms; and
- (d) that if those terms differ from those applicable immediately after the relevant time they were imposed in the ordinary course of the lender’s business.
- (3) For the purposes of this paragraph a loan is comparable to another loan if it is made for the same or similar purposes and on the same terms and conditions.
- (4) The relevant loans for the purposes of sub-paragraph (2)(b) are—
- (a) the loan in question, and
- (b) comparable loans made by the lender at or about the relevant time.
- (5) In determining for the purposes of this paragraph whether any loans made by any person before 1st June 1994 are made on the same terms or conditions, or held on the same terms, there shall be left out of account any amounts, by way of fees, commission or other incidental expenses, incurred for the purpose of obtaining any of those loans by the persons to whom they are made.
### Requirements relating to loan varied before 6th April 2000
##### 3
- (1) This paragraph applies to a loan that has been varied before 6th April 2000 and the relevant time for the purposes of this paragraph is the time of the variation.
- (2) The requirements of this paragraph are—
- (a) that a substantial proportion of the relevant loans were made to members of the public;
- (b) that the loan in question and relevant loans generally made by the lender at or about the relevant time to members of the public are held on the same terms; and
- (c) that if those terms differ from those applicable immediately after the relevant time they were imposed in the ordinary course of the lender’s business.
- (3) The relevant loans for the purposes of sub-paragraph (2)(a) are—
- (a) the loan in question;
- (b) any existing loans which were varied at or about the time of the variation of the loan in question so as to be held on the same terms as that loan after it was varied;
- (c) any new loans made by the lender, at or about that time, which are held on those terms.
### Requirements relating to loan varied on or after 6th April 2000
##### 4
- (1) The requirements of this paragraph apply to a loan that has been varied on or after 6th April 2000 and the relevant time for the purposes of this paragraph is the time of the variation.
- (2) The first requirement is that at the relevant time members of the public that had loans from the lender for similar purposes had a right to vary their loans on the same terms and conditions as applied in relation to the variation of the loan in question.
- (3) The second requirement is that any existing loans so varied and the loan in question as varied are held on the same terms.
- (4) The third requirement is that if those terms differ from the terms applicable immediately after the relevant time, they were imposed in the ordinary course of the lender’s business.
- (5) The fourth requirement is that a substantial proportion of the relevant loans were made to members of the public.
- (6) The relevant loans for the purposes of sub-paragraph (5) are—
- (a) the loan in question;
- (b) any existing loans which were varied at or about the time of the variation of the loan in question so as to be held on the same terms as that loan after it was varied;
- (c) any new loans made by the lender, at or about that time, which are held on those terms.
### Disregard of certain penalties, fees, etc.
##### 5
Amounts incurred by the person to whom a loan is made—
- (a) on penalties or interest or similar amounts incurred as a result of varying the loan, and
- (b) on fees, commission or other incidental expenses, incurred for the purpose of obtaining the loan,
shall be left out of account in determining for the purposes of paragraph 3 or 4 whether rights to vary loans are exercisable on the same terms and conditions or loans are held on the same terms.
### Meaning of 'member of the public’
##### 6
For the purposes of this Schedule a “*member of the public*” means a member of the public at large with whom the lender deals at arm’s length.
##### 13A
- (1) Where a scheme includes provision by virtue of paragraph 13(4) or (5) above the scheme must be so framed that in arriving at the profits for the base year or for the previous profit period any profit-related pay and any secondary Class I contributions in respect of it are accorded the same accountancy treatment as is accorded to any profit-related pay and any secondary Class I contributions in respect of it in arriving at the profits in the profit period.
- (2) In sub-paragraph (1) above—
- (a) “*profit-related pay*” means profit-related pay under whatever scheme;
- (b) “*secondary Class I contributions*” means secondary Class I contributions under Part I of the Social Security Act 1975 or Part I of the Social Security (Northern Ireland) Act 1975 or Part I of the Social Security Contributions and Benefits Act 1992 or Part I of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
- (3) Sub-paragraph (1) above shall apply notwithstanding anything in paragraph 19 below.
- (4) Where a scheme includes provision by virtue of paragraph 13(4) above the scheme must also include provision that if the pay for the profit period is less than the pay for the base year or for the previous profit period (as the case may be) the percentage to be applied for the purposes of the provision included by virtue of paragraph 13(4) above shall be the increased percentage (instead of any other percentage).
- (5) The increased percentage must be one arrived at by—
- (a) taking the percentage that would be applied for the purposes of the provision included by virtue of paragraph 13(4) above apart from the provision included by virtue of sub-paragraph (4) above, and
- (b) adding the percentage found by expressing the difference in pay as a percentage of the profits for the base year or for the previous profit period (as the case may be).
- (6) For the purposes of this paragraph—
- (a) the pay for the profit period or for the previous profit period or for the base year is the pay paid to employees in respect of employment in the period or year concerned in the employment unit concerned;
- (b) the difference in pay is the difference between the pay for the profit period and the pay for the previous profit period or for the base year (as the case may be);
and any profit-related pay shall be ignored in applying paragraph (a) above.
##### 14A
- (1) Where a scheme includes provision to give effect to paragraph 14(3) above or provision by virtue of paragraph 14(4) above the scheme must be so framed that in arriving at the profits in the preceding period of 12 months any profit-related pay and any secondary Class I contributions in respect of it are accorded the same accountancy treatment as is accorded to any profit-related pay and any secondary Class I contributions in respect of it in arriving at the profits in the profit period.
- (2) Where a scheme includes provision by virtue of paragraph 14(5) above the scheme must be so framed that in arriving at the profits in the relevant period of 12 months any profit-related pay and any secondary Class I contributions in respect of it are accorded the same accountancy treatment as is accorded to any profit-related pay and any secondary Class I contributions in respect of it in arriving at the profits in the profit period; and for this purpose the relevant period of 12 months is the period of 12 months immediately preceding the first or only profit period to which the scheme relates.
- (3) In sub-paragraphs (1) and (2) above—
- (a) “*profit-related pay*” means profit-related pay under whatever scheme;
- (b) “*secondary Class I contributions*” means secondary Class I contributions under Part I of the Social Security Contributions and Benefits Act 1992 or Part I of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
- (4) Sub-paragraphs (1) and (2) above shall apply notwithstanding anything in paragraph 19 below.
- (5) Where a scheme includes provision by virtue of paragraph 14(4) above the scheme must also include provision that if the pay for the profit period is less than the pay for the preceding period of 12 months the percentage to be applied for the purposes of the provision included by virtue of paragraph 14(4) above shall be the increased percentage (instead of any other percentage).
- (6) The increased percentage must be one arrived at by—
- (a) taking the percentage that would be applied for the purposes of the provision included by virtue of paragraph 14(4) above apart from the provision included by virtue of sub-paragraph (5) above, and
- (b) adding the percentage found by expressing the difference in pay as a percentage of the profits in the preceding period of 12 months.
- (7) For the purposes of this paragraph—
- (a) the pay for the profit period or for the preceding period of 12 months is the pay paid to employees in respect of employment in the period concerned in the employment unit concerned;
- (b) the difference in pay is the difference between the pay for the profit period and the pay for the preceding period of 12 months;
and any profit-related pay shall be ignored in applying paragraph (a) above.
##### 19A
- (1) The Treasury may by order amend paragraph 19 above so as to add to, delete or vary any of the items mentioned in sub-paragraph (6) of that paragraph.
- (2) In this paragraph references to an order are references to an order under sub-paragraph (1) above.
- (3) Subject to sub-paragraphs (4) to (8) below, any amendment or amendments made by virtue of an order shall have effect in relation to the preparation, for the purposes of a scheme, of a profit and loss account in respect of a period beginning on or after the day on which the order comes into force.
- (4) Any amendment or amendments made by virtue of an order shall not have effect in relation to an existing scheme unless, before the end of the period of 6 months beginning with the day on which the order comes into force, the scheme is altered to take account of the amendment or amendments.
- (5) Sub-paragraphs (6) to (8) below apply where, before the end of the period mentioned in sub-paragraph (4) above, an existing scheme is altered as mentioned in that sub-paragraph.
- (6) The provision made by the scheme in compliance with paragraph 20(1) below shall not prevent a profit and loss account being prepared in accordance with the alteration.
- (7) Where the distributable pool would but for this sub-paragraph be determined by reference—
- (a) to an amount shown in a profit and loss account prepared in accordance with the altered scheme, and
- (b) to an amount shown in a profit and loss account (“an earlier account”) prepared in accordance with the scheme in a form in which it stood before the alteration,
then, for the purposes of the determination of the pool, the amount shown in the earlier account shall be recalculated using the same method as that used to calculate the amount mentioned in paragraph (a) above.
- (8) The alteration of the existing scheme shall be treated as being within subsection (8) of section 177B.
- (9) An order may include such supplementary, incidental or consequential provisions as appear to the Treasury to be necessary or expedient.
- (10) In this paragraph “*an existing scheme*”, in relation to an order, means a scheme which, immediately before the day on which the order comes into force, is a registered scheme.
### Parts of undertakings
##### 21
- (1) This paragraph shall apply to a scheme if the employment unit is a part of an undertaking, and the scheme states that the profits or losses of the unit are for the purposes of the scheme to be taken to be equivalent to those of the whole undertaking (which must be identified by the scheme).
- (2) Where this paragraph applies to a scheme, this Schedule shall have effect as if any reference to the profits or losses of the employment unit were a reference to the profits or losses of the undertakings of which it forms part.
##### 22
- (1) Where paragraph 21 above applies to a scheme, the scheme must contain provisions ensuring that no payments are made under it by reference to a profit period unless, at the beginning of that profit period,—
- (a) there is at least one other registered scheme which relates to employees employed in the same undertaking as that of which the employment unit forms part, and
- (b) the number of the employees to whom the scheme relates does not exceed 33 per cent. of the number of the employees to whom that other scheme relates (or if there is more than one other scheme, the aggregate number of the employees to whom they relate).
- (2) Another registered scheme shall be disregarded for the purposes of sub-paragraph (1) above—
- (a) if paragraph 21 above applies to it, or
- (b) if, by virtue of provisions of the kind described in paragraph 6 above, no payments could be made under it by reference to the profit period concerned.
- (3) Where paragraph 21 above applies to two or more schemes relating to employment units which are parts of the same undertaking, an employee to whom another scheme relates shall not be counted for the purposes of sub-paragraph (1)(b) above in connection with more than one of those schemes.
##### 23
- (1) In a case where—
- (a) paragraph 21 above applies to a scheme, and
- (b) method A (specified in paragraph 13 above) is employed for the purposes of the scheme,
the scheme must contain provisions which comply with this paragraph and which apply as regards each profit period to which the scheme relates.
- (2) The scheme must ensure that no payments are made under it by reference to a given profit period if the percentage mentioned in paragraph 13(1) above exceeds the permitted percentage.
- (3) The scheme must ensure that the permitted percentage is a percentage found by—
- (a) taking the pay paid to employees in respect of employment in the relevant year in the employment unit to which the other scheme mentioned in paragraph 22(1)(a) above relates or (if there are two or more other schemes) the aggregate of the pay paid to employees in respect of employment in the relevant year in the employment units to which the other schemes relate;
- (b) taking the profit-related pay paid to employees in respect of employment in the relevant year in the employment unit to which the other scheme mentioned in paragraph 22(1)(a) above relates or (if there are two or more other schemes) the aggregate of the profit-related pay paid to employees in respect of employment in the relevant year in the employment units to which the other schemes relate;
- (c) taking the pay paid to employees in respect of employment in the relevant year in the employment unit to which the scheme mentioned in paragraph 21 above relates;
- (d) taking the fraction whose denominator is equal to the number of whole pounds found under paragraph (a) above and whose numerator is equal to the number of whole pounds found under paragraph (b) above;
- (e) multiplying the amount found under paragraph (c) above by the fraction found under paragraph (d) above;
- (f) taking the profits for the relevant year of the undertaking mentioned in paragraph 21 above;
- (g) expressing the amount found under paragraph (e) above as a percentage of the amount found under paragraph (f) above;
- (h) taking the percentage found under paragraph (g) above as the permitted percentage.
- (4) The scheme must ensure that the relevant year is a period of 12 months identified in the scheme and ending at a time within the period of two years immediately preceding the given profit period.
##### 24
- (1) In a case where—
- (a) paragraph 21 above applies to a scheme, and
- (b) method B (specified in paragraph 14 above) is employed for the purposes of the scheme,
the scheme must contain provisions which comply with this paragraph and which apply as regards each profit period to which the scheme relates.
- (2) The scheme must ensure that no payments are made under it by reference to the first or only profit period to which the scheme relates if the notional pool mentioned in paragraph 14(1)(a) above exceeds the permitted limit.
- (3) The scheme must also ensure that no payments are made under it by reference to a given profit period other than the first if the distributable pool for the previous profit period (mentioned in paragraph 14(1)(b) above) exceeds the permitted limit.
- (4) The scheme must ensure that the permitted limit is a limit found by—
- (a) taking the pay paid to employees in respect of employment in the relevant year in the employment unit to which the other scheme mentioned in paragraph 22(1)(a) above relates or (if there are two or more other schemes) the aggregate of the pay paid to employees in respect of employment in the relevant year in the employment units to which the other schemes relate;
- (b) taking the profit-related pay paid to employees in respect of employment in the relevant year in the employment unit to which the other scheme mentioned in paragraph 22(1)(a) above relates or (if there are two or more other schemes) the aggregate of the profit-related pay paid to employees in respect of employment in the relevant year in the employment units to which the other schemes relate;
- (c) taking the pay paid to employees in respect of employment in the relevant year in the employment unit to which the scheme mentioned in paragraph 21 above relates;
- (d) taking the fraction whose denominator is equal to the number of whole pounds found under paragraph (a) above and whose numerator is equal to the number of whole pounds found under paragraph (b) above;
- (e) multiplying the amount found under paragraph (c) above by the fraction found under paragraph (d) above;
- (f) taking the amount found under paragraph (e) above as the permitted limit.
- (5) The scheme must ensure that the relevant year is—
- (a) a period of 12 months identified in the scheme and ending at a time within the period of two years immediately preceding the first or only profit period to which the scheme relates (in the case of provisions contained in the scheme by virtue of sub-paragraph (2) above);
- (b) a period of 12 months identified in the scheme and ending at a time within the period of two years immediately preceding the given profit period (in the case of provisions contained in the scheme by virtue of sub-paragraph (3) above).
##### 8A
- (1) In the case of a savings-related share option scheme or a profit sharing scheme, the scheme must specify what age is to be the specified age for the purposes of the scheme.
- (2) The age specified—
- (a) must be the same for men and women, and
- (b) must be not less than 60 and not more than 75.
##### 11A
- (1) In the case of a profit sharing scheme, scheme shares must not be shares—
- (a) in an employer company, or
- (b) in a company that—
- (i) has control of an employer company, and
- (ii) is under the control of a person or persons within sub-paragraph (2)(b)(i) below in relation to an employer company.
- (2) For the purposes of this paragraph a company is “*an employer company*” if—
- (a) the business carried on by it consists substantially in the provision of the services of the persons employed by it, and
- (b) the majority of those services are provided to—
- (i) a person who has, or two or more persons who together have, control of the company, or
- (ii) a company associated with the company.
- (3) For the purposes of sub-paragraph (2)(b)(ii) above a company shall be treated as associated with another company if both companies are under the control of the same person or persons.
- (4) For the purposes of sub-paragraphs (1) to (3) above—
- (a) references to a person include a partnership, and
- (b) where a partner, alone or together with others, has control of a company, the partnership shall be treated as having like control of that company.
- (5) For the purposes of this paragraph the question whether a person controls a company shall be determined in accordance with section 416(2) to (6).
### Shares subject to an employee benefit trust
##### 40
- (1) Where an individual has an interest in shares or obligations of the company as a beneficiary of an employee benefit trust, the trustees shall not be regarded as associates of his by reason only of that interest unless sub-paragraph (3) below applies in relation to him.
- (2) In this paragraph “*employee benefit trust*” has the same meaning as in paragraph 7 of Schedule 8.
- (3) This sub-paragraph applies in relation to an individual if at any time on or after 14th March 1989—
- (a) the individual, either on his own or with any one or more of his associates, or
- (b) any associate of his, with or without other such associates,
has been the beneficial owner of, or able (directly or through the medium of other companies or by any other indirect means) to control, more than 25 per cent., or in the case of a share option scheme which is not a savings-related share option scheme more than 10 per cent., of the ordinary share capital of the company.
- (4) Sub-paragraphs (9) to (12) of paragraph 7 of Schedule 8 shall apply for the purposes of this paragraph in relation to an individual as they apply for the purposes of that paragraph in relation to an employee.
##### 3A
- (1) In paragraph 3 above the reference to the relevant age shall be construed as follows.
- (2) Where the scheme is approved before 25th July 1991 and the event occurs before 30th November 1993, the relevant age is
- (a) in the case of a man, 65, and
- (b) in the case of a woman, 60.
- (3) Where—
- (a) the scheme is approved before 25th July 1991,
- (b) the event occurs on or after 30th November 1993,
- (c) the scheme defines the period of retention by reference to the age of 60 for both men and women, and
- (d) the reference to that age is incorporated in the definition by virtue of an alteration approved by the Board under paragraph 4 of Schedule 9 before the event occurs,
the relevant age is 60.
- (4) Where—
- (a) the scheme is approved before 25th July 1991,
- (b) the event occurs on or after 30th November 1993, and
- (c) sub-paragraph (3) above does not apply,
the relevant age is in the case of a man, 65, and in the case of a woman, 60.
- (5) Where the scheme is approved on or after 25th July 1991, the relevant age is the specified age.
##### 5A
- (1) Paragraph 5(2) to (6) above apply where there occurs in relation to any of a participant’s shares (“*the original holding*”) a relevant transaction which would result in a new holding being equated with the original holding for the purposes of capital gains tax, were it not for the fact that what would be the new holding consists of or includes a qualifying corporate bond; and “*relevant transaction*” here means a transaction mentioned in Chapter II of Part IV of the 1992 Act.
- (2) In paragraph 5(2) to (6) above as applied by this paragraph—
- (a) references to a company reconstruction are to the transaction referred to in sub-paragraph (1) above;
- (b) references to the new holding are to what would be the new holding were it not for the fact mentioned in sub-paragraph (1) above;
- (c) references to the original holding shall be construed in accordance with sub-paragraph (1) above (and not paragraph 5(1));
- (d) references to shares, in the context of the new holding, include securities and rights of any description which form part of the new holding.
- (3) In sub-paragraph (1) above “*qualifying corporate bond*” shall be construed in accordance with section 117 of the 1992 Act.
## SCHEDULE 11A
## Part I — TAX RELIEF
##### 1
- (1) Where by reason of a person’s employment—
- (a) any sums are paid to that person (the employee) in respect of qualifying removal expenses,
- (b) any sums are paid on behalf of the employee to another person in respect of qualifying removal expenses, or
- (c) any qualifying removal benefit is provided for the employee or for others being members of his family or household,
the employee shall not thereby be regarded as receiving emoluments of the employment for any purpose of Case I or Case II of Schedule E.
- (2) Sub-paragraph (1) above shall have effect subject to Part V of this Schedule.
##### 2
- (1) This paragraph applies where—
- (a) any payment or benefit would (apart from paragraph 1 above) constitute emoluments of an employment for any purpose of Case I or Case II of Schedule E, and
- (b) by virtue of that paragraph it is treated as not being such emoluments.
- (2) The payment or benefit shall be treated as not being emoluments of the employment for any purpose of Case III of Schedule E.
## Part II — QUALIFYING EXPENSES AND QUALIFYING BENEFITS
### Qualifying removal expenses
##### 3
- (1) Expenses are not qualifying removal expenses unless they are eligible removal expenses and the conditions set out in this paragraph and paragraph 5 below are fulfilled.
- (2) The expenses must be reasonably incurred by the employee in connection with a change of his residence.
- (3) The expenses must be incurred on or before the relevant day.
### Qualifying removal benefits
##### 4
- (1) A benefit is not a qualifying removal benefit unless it is an eligible removal benefit and the conditions set out in this paragraph and paragraph 5 below are fulfilled.
- (2) The benefit must be reasonably provided in connection with a change of the employee’s residence.
- (3) The benefit must be provided on or before the relevant day.
### Connection with employment
##### 5
- (1) The change of residence mentioned in paragraphs 3(2) and 4(2) above must result from—
- (a) the employee becoming employed by an employer,
- (b) an alteration of the duties of the employee’s employment (where his employer remains the same), or
- (c) an alteration of the place where the employee is normally to perform the duties of his employment (where both his employer and the duties of his employment remain the same).
- (2) The change must be made wholly or mainly to allow the employee to have his residence within a reasonable daily travelling distance of—
- (a) the place where he performs, or is to perform, the duties of his employment (where sub-paragraph (1)(a) above applies);
- (b) the place where he performs, or is to perform, the new duties of his employment (where sub-paragraph (1)(b) above applies);
- (c) the new place where he performs, or is to perform, the duties of his employment (where sub-paragraph (1)(c) above applies);
and any reference in this sub-paragraph to the place where the employee performs, or is to perform, duties of his employment is to the place where he normally performs, or is normally to perform, those duties.
- (3) The employee’s former residence must not be within a reasonable daily travelling distance of the place mentioned in sub-paragraph (2) above.
### The relevant day
##### 6
- (1) Subject to sub-paragraph (2) below, the relevant day, in relation to a particular change of residence, is the day on which the relevant year ends; and for the purposes of this sub-paragraph the relevant year is the year of assessment next following the year of assessment in which—
- (a) the employee begins to perform the duties of his employment (where paragraph 5(1)(a) above applies);
- (b) the employee begins to perform the new duties of his employment (where paragraph 5(1)(b) above applies);
- (c) the employee begins to perform the duties of his employment at the new place (where paragraph 5(1)(c) above applies).
- (2) If it appears reasonable to the Board to do so, having regard to all the circumstances of a particular change of residence, they may direct that in relation to that change the relevant day is a day which—
- (a) falls after the day mentioned in sub-paragraph (1) above, and
- (b) is a day on which a year of assessment ends.
## Part III — ELIGIBLE REMOVAL EXPENSES
### Introduction
##### 7
Expenses are eligible removal expenses if they fall into one of the following categories—
- (a) expenses of disposal,
- (b) expenses of acquisition,
- (c) expenses of abortive acquisition,
- (d) expenses of transporting belongings,
- (e) travelling and subsistence expenses,
- (f) bridging loan expenses, and
- (g) duplicate expenses;
and paragraphs 8 to 14 below apply for the purpose of interpreting the preceding provisions of this paragraph.
### Expenses of disposal
##### 8
- (1) Expenses fall within paragraph 7(a) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) that interest is disposed of, or is intended to be disposed of, in consequence of the change of residence, and
- (c) the expenses fall within sub-paragraph (2) below.
- (2) Expenses fall within this sub-paragraph if they consist of one of the following—
- (a) legal expenses connected with the disposal or intended disposal of the employee’s interest in his former residence (including legal expenses connected with the redemption of any loan relating to the residence),
- (b) any penalty for redeeming, for the purpose of the disposal or intended disposal, any loan relating to the residence,
- (c) fees of any estate agent or auctioneer engaged in the disposal or intended disposal,
- (d) expenses of advertising the disposal or intended disposal,
- (e) charges for disconnecting, for the purpose of the disposal or intended disposal, public utilities serving the residence,
- (f) expenses of maintaining, insuring, or preserving the security of the residence at any time when unoccupied pending the disposal or intended disposal, and
- (g) any rent paid in respect of the residence at any such time.
- (3) The reference in this paragraph to the employee having an interest in his former residence includes a reference to—
- (a) one or more members of the employee’s family or household having such an interest;
- (b) the employee and one or more members of his family or household having such an interest;
and references to the disposal or intended disposal of the employee’s interest in his former residence shall be construed accordingly.
- (4) For the purposes of this paragraph a loan relates to a residence if the loan was raised to obtain an interest in the residence, or an interest in the residence forms security for the loan, or both.
### Expenses of acquisition
##### 9
- (1) Expenses fall within paragraph 7(b) above if (and only if) the employee acquires an interest in his new residence and the expenses consist of one of the following—
- (a) legal expenses connected with the acquisition by the employee of the interest (including legal expenses connected with any loan raised to acquire the interest),
- (b) any procurement fees connected with any such loan,
- (c) the costs of any insurance effected to cover risks which are incurred by the maker of any such loan and which arise because the amount of the loan is equal to the whole, or a substantial part, of the value of the interest,
- (d) fees relating to any survey or inspection of the residence undertaken in connection with the acquisition by the employee of the interest,
- (e) fees payable to an appropriate registry or appropriate register in connection with the acquisition by the employee of the interest,
- (f) stamp duty charged on the acquisition, and
- (g) charges for connecting any public utility for use by the employee, if the utility serves the residence.
- (2) References in this paragraph to the employee acquiring an interest in his new residence include references to—
- (a) one or more members of the employee’s family or household acquiring such an interest;
- (b) the employee and one or more members of his family or household acquiring such an interest.
- (3) References in this paragraph to a loan are to a loan raised by the employee, by one or more members of the employee’s family or household or by the employee and one or more members of his family or household.
- (4) The reference in this paragraph to a utility for use by the employee includes a reference to a utility for use by the employee and one or more members of his family or household.
- (5) For the purposes of this paragraph an appropriate registry is any of the following—
- (a) Her Majesty’s Land Registry;
- (b) the Land Registry in Northern Ireland;
- (c) the Registry of Deeds for Northern Ireland;
and an appropriate register is any register under the management and control of the Keeper of the Registers of Scotland.
### Expenses of abortive acquisition
##### 10
Expenses fall within paragraph 7(c) above if (and only if)—
- (a) they are incurred with a view to the acquisition of an interest in a residence, the interest is not acquired, but (if it were) the residence would be the employee’s new residence,
- (b) they would fall within paragraph 7(b) above if the interest were acquired, and
- (c) the interest is not acquired because of circumstances outside the control of the person seeking to acquire the interest, or because that person reasonably declines to proceed.
### Expenses of transporting belongings
##### 11
- (1) Expenses fall within paragraph 7(d) above if (and only if) they consist of one of the following—
- (a) expenses connected with transporting domestic belongings from the employee’s former residence to his new residence, and
- (b) the costs of any insurance effected to cover such transporting.
- (2) For the purposes of this paragraph transporting includes—
- (a) packing and unpacking belongings,
- (b) temporarily storing them if a direct move from the former to the new residence is not made,
- (c) detaching domestic fittings from the former residence if they are to be taken to the new residence, and
- (d) attaching domestic fittings to the new residence, and adapting them, if they are brought from the old residence.
- (3) For the purposes of this paragraph domestic belongings are those of the employee and of members of his family or household.
### Travelling and subsistence expenses
##### 12
- (1) Expenses fall within paragraph 7(e) above if (and only if) they consist of one of the following—
- (a) the costs of travelling and subsistence of the employee and members of his family or household while making temporary visits to the new area for purposes connected with the change,
- (b) the employee’s costs of travelling between his former residence and the place where he normally performs his new duties or (where paragraph 5(1)(c) above applies) between his former residence and the new place where he normally performs the duties of his employment,
- (c) where paragraph 5(1)(b) or (c) above applies, the employee’s costs of travelling, before the alteration mentioned in paragraph 5(1)(b) or (c), between his new residence and his original place of work,
- (d) costs of the employee’s subsistence (other than costs falling within paragraph (a) above),
- (e) the employee’s costs of travelling between his former residence and any temporary living accommodation of the employee,
- (f) where paragraph 5(1)(b) or (c) above applies, the employee’s costs of travelling, before the alteration mentioned in paragraph 5(1)(b) or (c), between his new residence and any temporary living accommodation of the employee,
- (g) the costs of travelling of the employee and members of his family or household from the employee’s former residence to his new residence in connection with the change,
- (h) a relevant child’s costs of subsistence while staying, for the purposes of securing the continuity of his education, in living accommodation in the old area after the change,
- (i) a relevant child’s costs of travelling between the accommodation mentioned in paragraph (h) above and the employee’s new residence,
- (j) a relevant child’s costs of subsistence while staying, for the purposes of securing the continuity of his education, in living accommodation in the new area before the change, and
- (k) a relevant child’s costs of travelling between the accommodation mentioned in paragraph (j) above and the employee’s former residence.
- (2) For the purposes of this paragraph—
- (a) the employee’s new duties are the duties of his employment (where paragraph 5(1)(a) above applies) or the new duties of his employment (where paragraph 5(1)(b) above applies),
- (b) the new area is the area round or near the place where the employee’s new duties are, or are to be, normally performed, or (where paragraph 5(1)(c) above applies) the area round or near the new place where the duties of the employee’s employment are, or are to be, normally performed,
- (c) the employee’s original place of work is the place where, before the alteration mentioned in paragraph 5(1)(b) or (c) above, the employee normally performs the duties of his employment,
- (d) a relevant child is a person who is a member of the employee’s family or household and who is aged under 19 at the material time, and
- (e) the old area is the area round or near the former residence of the employee.
- (3) For the purposes of this paragraph the material time is the beginning of the year of assessment in which—
- (a) the employee becomes employed by an employer,
- (b) the alteration of the duties of the employee’s employment becomes effective, or
- (c) the alteration of the place where the employee is normally to perform the duties of his employment becomes effective.
- (4) In a case where—
- (a) expenses are incurred by the employee,
- (b) the expenses would, apart from this sub-paragraph, fall within paragraph 7(e) above, and
- (c) a deduction is allowable under any of sections 193 to 195 in respect of the whole or part of the expenses,
the expenses or, as the case may be, the part of them in respect of which the deduction is allowable shall be treated as not falling within paragraph 7(e) above.
### Bridging loan expenses
##### 13
- (1) Expenses fall within paragraph 7(f) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) he disposes of that interest in consequence of the change of residence,
- (c) he acquires an interest in his new residence, and
- (d) the expenses consist of interest falling within sub-paragraph (2) below.
- (2) Interest falls within this sub-paragraph if it is payable by the employee in respect of a loan raised by him and the reason, or one of the reasons, for the loan being raised is that a period elapses between—
- (a) the date when expenditure is incurred in connection with the acquisition of the employee’s interest in his new residence, and
- (b) the date when the proceeds of the disposal of the employee’s interest in his former residence are available.
- (3) Interest on so much of the loan as exceeds the market value of the employee’s interest in his former residence (taken at the time his interest in his new residence is acquired) shall be regarded as not falling within sub-paragraph (2) above.
- (4) Interest on so much of the loan as is not used for any of the following purposes shall also be regarded as not falling within sub-paragraph (2) above—
- (a) the purpose of redeeming any loan relating to the employee’s former residence and raised by him;
- (b) the purpose of acquiring the employee’s interest in his new residence.
- (5) For the purposes of this paragraph a loan relates to a residence if the loan was raised to obtain an interest in the residence, or an interest in the residence forms security for the loan, or both.
- (6) References in this paragraph to the employee having, disposing of or acquiring an interest in a residence include references to—
- (a) one or more members of the employee’s family or household having, disposing of or acquiring such an interest;
- (b) the employee and one or more members of his family or household having, disposing of or acquiring such an interest;
and references to the employee’s interest shall be construed accordingly.
- (7) The reference in this paragraph to interest payable by the employee includes a reference to interest payable by one or more members of the employee’s family or household or by the employee and one or more members of his family or household.
- (8) References in this paragraph to a loan raised by the employee include references to a loan raised by one or more members of the employee’s family or household or by the employee and one or more members of his family or household.
### Duplicate expenses
##### 14
- (1) Expenses fall within paragraph 7(g) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) he disposes of that interest in consequence of the change of residence,
- (c) he acquires an interest in his new residence,
- (d) the expenses are incurred by the employee as a result of the change, and
- (e) the expenses are incurred on the purchase of domestic goods intended to replace goods which were used at the employee’s former residence but which are not suitable for use at his new residence.
- (2) In arriving at the total of the expenses any amount mentioned in sub-paragraph (3) below shall be deducted from what would be the total apart from this sub-paragraph; and accordingly an amount equal to the aggregate of such amounts shall not be treated as eligible removal expenses.
- (3) The amount is any amount obtained in respect of the sale of the replaced goods.
- (4) References in this paragraph to the employee having, disposing of or acquiring an interest in a residence include references to—
- (a) one or more members of the employee’s family or household having, disposing of or acquiring such an interest;
- (b) the employee and one or more members of his family or household having, disposing of or acquiring such an interest.
### Power to amend
##### 15
- (1) The Treasury may make regulations amending the preceding provisions of this Part of this Schedule so as to secure that expenses that would not be eligible removal expenses (apart from the regulations) are such expenses.
- (2) Any such regulations may include such supplementary, incidental or consequential provisions as appear to the Treasury to be necessary or expedient; and such provisions may be made by way of amendment to other Parts of this Schedule, or otherwise.
- (3) Any such regulations shall have effect as regards any change of an employee’s residence which results from—
- (a) the employee becoming employed by an employer on or after the specified day;
- (b) an alteration, with effect from a time falling on or after the specified day, of the duties of the employee’s employment;
- (c) an alteration, with effect from a time falling on or after the specified day, of the place where the employee is normally to perform the duties of his employment;
and in this sub-paragraph “*the specified day*” means the day specified in the regulations for the purposes of this sub-paragraph.
## Part IV — ELIGIBLE REMOVAL BENEFITS
### Introduction
##### 16
Benefits are eligible removal benefits if they fall into one of the following categories—
- (a) benefits in respect of disposal,
- (b) benefits in respect of acquisition,
- (c) benefits in respect of abortive acquisition,
- (d) benefits in respect of the transporting of belongings,
- (e) travelling and subsistence benefits, and
- (f) benefits in respect of the new residence;
and paragraphs 17 to 22 below apply for the purpose of interpreting the preceding provisions of this paragraph.
### Benefits in respect of disposal
##### 17
- (1) A benefit falls within paragraph 16(a) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) that interest is disposed of, or is intended to be disposed of, in consequence of the change of residence, and
- (c) the benefit falls within sub-paragraph (2) below.
- (2) A benefit falls within this sub-paragraph if it consists of one of the following—
- (a) legal services connected with the disposal or intended disposal of the employee’s interest in his former residence (including legal services connected with the redemption of any loan relating to the residence),
- (b) the waiving of any penalty for redeeming, for the purpose of the disposal or intended disposal, any loan relating to the residence,
- (c) the services of an estate agent or auctioneer engaged in the disposal or intended disposal,
- (d) services connected with the advertisement of the disposal or intended disposal,
- (e) the disconnection, for the purpose of the disposal or intended disposal, of public utilities serving the residence, and
- (f) services connected with the maintenance or insurance, or the preservation of the security, of the residence at any time when unoccupied pending the disposal or intended disposal.
- (3) Sub-paragraphs (3) and (4) of paragraph 8 above apply for the purposes of this paragraph as they apply for the purposes of that.
### Benefits in respect of acquisition
##### 18
- (1) A benefit falls within paragraph 16(b) above if (and only if) the employee acquires an interest in his new residence and the benefit consists of one of the following—
- (a) legal services connected with the acquisition by the employee of the interest (including legal services connected with any loan raised to acquire the interest),
- (b) the waiving of any procurement fees connected with any such loan,
- (c) the waiving of any amount payable in respect of insurance effected to cover risks which are incurred by the maker of any such loan and which arise because the amount of the loan is equal to the whole, or a substantial part, of the value of the interest,
- (d) any survey or inspection of the residence undertaken in connection with the acquisition by the employee of the interest, and
- (e) the connection of any public utility for use by the employee, if the utility serves the residence.
- (2) Sub-paragraphs (2) to (4) of paragraph 9 above apply for the purposes of this paragraph as they apply for the purposes of that.
### Benefits in respect of abortive acquisition
##### 19
A benefit falls within paragraph 16(c) above if (and only if)—
- (a) it is provided with a view to the acquisition of an interest in a residence, the interest is not acquired, but (if it were) the residence would be the employee’s new residence,
- (b) it would fall within paragraph 16(b) above if the interest were acquired, and
- (c) the interest is not acquired because of circumstances outside the control of the person seeking to acquire the interest, or because that person reasonably declines to proceed.
### Benefits in respect of the transporting of belongings
##### 20
- (1) A benefit falls within paragraph 16(d) above if (and only if) it consists of one of the following—
- (a) the transporting of domestic belongings from the employee’s former residence to his new residence, and
- (b) the effecting of insurance to cover such transporting.
- (2) Sub-paragraphs (2) and (3) of paragraph 11 above apply for the purposes of this paragraph as they apply for the purposes of that.
### Travelling and subsistence benefits
##### 21
- (1) A benefit falls within paragraph 16(e) above if (and only if) it consists of one of the following—
- (a) subsistence, and facilities for travel, provided for the employee and members of his family or household while making temporary visits to the new area for purposes connected with the change,
- (b) facilities provided for the employee for travel between his former residence and the place where he normally performs his new duties or (where paragraph 5(1)(c) above applies) between his former residence and the new place where he normally performs the duties of his employment,
- (c) where paragraph 5(1)(b) or (c) above applies, facilities provided for the employee for travel, before the alteration mentioned in paragraph 5(1)(b) or (c), between his new residence and his original place of work,
- (d) subsistence provided for the employee (other than subsistence falling within paragraph (a) above),
- (e) facilities provided for the employee for travel between his former residence and any temporary living accommodation of the employee,
- (f) where paragraph 5(1)(b) or (c) above applies, facilities provided for the employee for travel, before the alteration mentioned in paragraph 5(1)(b) or (c), between his new residence and any temporary living accommodation of the employee,
- (g) facilities provided for the employee and members of his family or household for travel from the employee’s former residence to his new residence in connection with the change,
- (h) subsistence provided for a relevant child while staying, for the purposes of securing the continuity of his education, in living accommodation in the old area after the change,
- (i) facilities provided for a relevant child for travel between the accommodation mentioned in paragraph (h) above and the employee’s new residence,
- (j) subsistence provided for a relevant child while staying, for the purposes of securing the continuity of his education, in living accommodation in the new area before the change, and
- (k) facilities provided for a relevant child for travel between the accommodation mentioned in paragraph (j) above and the employee’s former residence.
- (2) Where (apart from this sub-paragraph) a car or van would constitute a facility for the purposes of sub-paragraph (1) above, it shall not do so if the car or van—
- (a) is provided as mentioned in that sub-paragraph,
- (b) is also available at any relevant time to the employee, or to others being members of his family or household, for his or their private use not falling within that sub-paragraph, and
- (c) is so available by reason of the employee’s employment and without any transfer of the property in it.
- (3) Sub-paragraphs (2) and (3) of paragraph 12 above apply for the purposes of this paragraph as they apply for the purposes of that.
- (4) In this paragraph “*car*”, “*van*” and “*private use*” have the same meanings as in Chapter II of this Part of this Act.
- (5) Section 168(6) applies for the purposes of this paragraph as it applies for the purposes of Chapter II of this Part of this Act.
- (6) For the purposes of this paragraph a relevant time is any time falling on or before the day which is the relevant day (within the meaning given by paragraph 6 above) in relation to the change of residence concerned.
- (7) In a case where—
- (a) a benefit is provided for the employee or a member of his family or household,
- (b) the benefit would, apart from this sub-paragraph, fall within paragraph 16(e) above, and
- (c) a deduction is allowable under any of sections 193 to 195 in respect of the whole or part of the cost of the benefit,
the benefit shall, subject to sub-paragraph (8) below, be treated as not falling within paragraph 16(e) above.
- (8) Where a deduction is allowed as mentioned in sub-paragraph (7) above in respect of part only of the cost of the benefit, the extent to which the benefit is treated as falling within paragraph 16(e) above shall be determined on a just and reasonable basis.
### Benefits in respect of new residence
##### 22
- (1) A benefit falls within paragraph 16(f) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) he disposes of that interest in consequence of the change of residence,
- (c) he acquires an interest in his new residence,
- (d) the benefit is provided as a result of the change, and
- (e) the benefit consists of domestic goods provided to replace goods which were used at the employee’s former residence but which are not suitable for use at his new residence.
- (2) Sub-paragraph (4) of paragraph 14 above applies for the purposes of this paragraph as it applies for the purposes of that.
### Power to amend
##### 23
- (1) The Treasury may make regulations amending the preceding provisions of this Part of this Schedule so as to secure that a benefit that would not be an eligible removal benefit (apart from the regulations) is such a benefit.
- (2) Any such regulations may include such supplementary, incidental or consequential provisions as appear to the Treasury to be necessary or expedient; and such provisions may be made by way of amendment to other Parts of this Schedule, or otherwise.
- (3) Sub-paragraph (3) of paragraph 15 above applies to regulations made under this paragraph as it applies to regulations made under that.
## Part V — THE QUALIFYING LIMIT
##### 24
- (1) In a case where, by reason of the employee’s employment and in connection with a particular change of residence—
- (a) any sums are paid as mentioned in paragraph 1(1)(a) or (b) above, or
- (b) any qualifying removal benefit is provided as mentioned in paragraph 1(1)(c) above,
paragraph 1(1) above shall apply only to the extent that the total value to the employee, found under sub-paragraph (2) below, does not exceed the qualifying limit.
- (2) The total value to the employee is the total of the following—
- (a) the aggregate of the amounts of any sums paid as mentioned in paragraph 1(1)(a) or (b) above in connection with the change of residence;
- (b) the aggregate of any amounts represented by qualifying removal benefits which are provided as mentioned in paragraph 1(1)(c) above in connection with the change.
- (3) Subject to sub-paragraphs (4) to (8) below, for the purposes of sub-paragraph (2)(b) above the amount represented by a benefit is the amount which would be the cash equivalent of the benefit under Chapter II of this Part of this Act if the benefit were chargeable under the appropriate provision of that Chapter.
- (4) In the case of a benefit which—
- (a) consists of living accommodation provided for a person, and
- (b) is, or would be apart from this Schedule, chargeable under section 145 and not under section 146,
for the purposes of sub-paragraph (2)(b) above the amount represented by the benefit is the amount which, if the benefit were so chargeable, would be the value to the employee of the accommodation for the period in which the accommodation is provided, less the appropriate sum.
- (5) For the purposes of sub-paragraph (4) above the value to the employee of accommodation in any period shall be determined in accordance with section 145, and the reference in that sub-paragraph to the appropriate sum is to the total of—
- (a) so much of any sum made good by the employee to those at whose cost the accommodation is provided as is properly attributable to the provision of the accommodation, and
- (b) any amounts which, if the benefit were chargeable under section 145, would be deductible by virtue of section 145(3) from the amount to be treated as emoluments under section 145(1) as regards the benefit.
- (6) In the case of a benefit which—
- (a) consists of living accommodation provided for a person, and
- (b) is, or would be apart from this Schedule, chargeable under both section 145 and section 146,
for the purposes of sub-paragraph (2)(b) above the amount represented by the benefit is the total of the amounts mentioned in sub-paragraph (7) below.
- (7) The amounts referred to in sub-paragraph (6) above are—
- (a) the amount which would be found under sub-paragraph (4) above if the benefit were chargeable under section 145 and not under section 146, and
- (b) the amount which, if the benefit were chargeable under section 146, would be the additional value to the employee of the accommodation for the period in which the accommodation is provided, less the appropriate sum.
- (8) For the purposes of sub-paragraph (7) above the additional value to the employee of accommodation in any period shall be determined in accordance with section 146, and the reference in that sub-paragraph to the appropriate sum is to the total of—
- (a) so much of any rent paid by the employee in respect of the accommodation to the person providing it as exceeds the value to the employee of the accommodation for the period (determined in accordance with section 145), and
- (b) any amounts which, if the benefit were chargeable under section 146, would be deductible by virtue of subsection (9) of that section from the amount to be treated as emoluments under that section as regards the benefit.
- (9) The qualifying limit, as regards any change of residence, is £8,000.
- (10) The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (9) above a sum of a greater amount.
- (11) Any such substitution shall have effect as regards any change of an employee’s residence which results from—
- (a) the employee becoming employed by an employer on or after the specified day;
- (b) an alteration, with effect from a time falling on or after the specified day, of the duties of the employee’s employment;
- (c) an alteration, with effect from a time falling on or after the specified day, of the place where the employee is normally to perform the duties of his employment;
and in this sub-paragraph “*the specified day*” means the day specified in the order for the purposes of this sub-paragraph.
## Part VI — GENERAL
### Interpretation
##### 25
In this Schedule—
- (a) references to the residence of the employee are to his sole or main residence,
- (b) references to the former residence of the employee are to his sole or main residence before the change,
- (c) references to the new residence of the employee are to his sole or main residence after the change, and
- (d) references to an interest in a residence are, in the case of a building, references to an estate or interest in the land concerned.
##### 26
For the purposes of this Schedule a person is not a member of another person’s family or household unless the former is—
- (a) the latter’s spouse, son, daughter, parent, servant, dependant or guest, or
- (b) the spouse of a son or daughter of the latter.
##### 27
In this Schedule references to employment include references to any office, and related expressions shall be construed accordingly.
##### 28
References in this Schedule to subsistence are to food, drink and temporary living accommodation.
### Commencement
##### 29
This Schedule applies to any payment made, or any benefit provided, in connection with a change of an employee’s residence which results from—
- (a) the employee becoming employed by an employer on or after 6th April 1993,
- (b) an alteration, with effect from a time falling on or after 6th April 1993, of the duties of the employee’s employment, or
- (c) an alteration, with effect from a time falling on or after 6th April 1993, of the place where the employee is normally to perform the duties of his employment.
### Amount of emoluments
##### 1A
For the purposes of section 192A and this Schedule the amount of the emoluments for a year of assessment from any employment shall be taken to be the amount remaining after any capital allowance and after any deductions under section 192(3), 193(4), 194(1), 195(7), 197AG, 198, 199, 201, 332, 592 or 594.
## SCHEDULE 12AA
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444ABB
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##### 444ABBA
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##### 444ABC
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##### 444ABD
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##### 444AC
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##### 444ACZA
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##### 444ACA
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##### 444AD
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##### 444AE
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##### 444AEA
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##### 444AEB
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##### 444AEC
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##### 444AECA
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##### 444AECB
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##### 444AECC
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##### 444AED
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### Surpluses of mutual and former mutual businesses
##### 444AF
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##### 444AG
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##### 444AH
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##### 444AI
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AJ
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AK
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444AL
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Provisions applying in relation to overseas life insurance companies
##### 444B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Equalisation reserves
##### 444BA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444BC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 444BD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 458A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 461A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 461B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 461C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 461D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 462A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treatment of umbrella funds
##### 465A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deductions: asset transferred within group.
##### 468EE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Distributions of authorised unit trusts: general
##### 468H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Dividend and foreign income distributions
##### 468J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Interest distributions
##### 468L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468M
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468N
- (1) Subsection (2) below applies where—
- (a) an interest distribution is made for a distribution period to a unit holder; and
- (b) the gross income entered in the distribution accounts for the purposes of computing the total amount available for distribution to unit holders does not derive from eligible income entirely.
- (2) Where this subsection applies, the obligation to deduct under section 349(2) shall not apply to the relevant amount of the interest distribution to the unit holder if the residence condition is on the distribution date fulfilled with respect to him.
- (3) Section 468O makes provision with respect to the circumstances in which the residence condition is fulfilled with respect to a unit holder.
- (4) This is how to calculate the relevant amount of the interest distribution—
$$R=AxBC$Where—R = the relevant amount;A = the amount of the interest distribution before deduction of tax to the unit holder in question;B = such amount of the gross income as derives from eligible income;C = the amount of the gross income.$
- (5) In subsection (4) above the references to the gross income are references to the gross income entered as mentioned in subsection (1)(b) above.
##### 468O
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468P
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468PA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468PB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Distributions to corporate unit holder
##### 468Q
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468R
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 469A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 472A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 477A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 477B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 480A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 480B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of chargeable profits and creditable tax
##### 480C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
##### 482A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### PETROLEUM EXTRACTION ACTIVITIES
##### 494AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 494A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 496A
Schedule 19B to this Act (exploration expenditure supplement) shall have effect.
##### 496B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### How averaging claim is given effect
##### 501A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 501B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Chapter 5A — Special rules for long funding leases of plant or machinery: corporation tax
### Introductory
##### 502A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessors under long funding finance leases
##### 502B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessors under long funding operating leases
##### 502E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessors under long funding finance or operating leases: avoidance etc
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502GA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502GB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502GC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502GD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Insurance company as lessor
##### 502H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessees under long funding finance leases
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 502J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Lessees under long funding operating leases
##### 502K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Interpretation of Chapter
##### 502L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 504A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowances for expenditure on purchase of patent rights: post-31st March 1986 expenditure.
#### Arrangements made under old law.
##### 506A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 506B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 506C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of United Kingdom taxes by amount of credit due.
##### 508A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 508B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 510A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 519A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery of tax credits incorrectly paid.
#### Recovery of tax credits incorrectly paid.
#### Relief by agreement with other territories.
#### Recovery of tax credits incorrectly paid.
### Designs
##### 537A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 537B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The qualifying subsidiaries requirement
##### 539ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 539A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for individuals.
##### 546A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 546B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 546C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 546D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 547A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 548A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements to avoid section 812.
##### 548B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 551A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 552ZA
- (1) This section supplements section 552 and shall be construed as one with it.
- (2) Where the obligations under any policy or contract of the body that issued, entered into or effected it (“*the original insurer*”) are at any time the obligations of another body (“*the transferee*”) to whom there has been a transfer of the whole or any part of a business previously carried on by the original insurer, section 552 shall have effect in relation to that time, except where the chargeable event—
- (a) happened before the transfer, and
- (b) in the case of a death or an assignment, is an event of which the notification mentioned in subsection (6) or (7) of that section was given before the transfer,
as if the policy or contract had been issued, entered into or effected by the transferee.
- (3) Where, in consequence of . . . section 514(1) of ITTOIA 2005, paragraph (a) or (b) of section 552(1) requires certificates to be delivered in respect of two or more surrenders, happening in the same year, of part of or a share in the rights conferred by the policy or contract, a single certificate may be delivered under the paragraph in question in respect of all those surrenders (and may treat them as if they together constituted a single surrender) unless between the happening of the first and the happening of the last of them there has been—
- (a) an assignment of part of or a share in the rights conferred by the policy or contract; or
- (b) an assignment, otherwise than for money or money’s worth, of the whole of the rights conferred by the policy or contract.
- (4) Where the appropriate policy holder is two or more persons—
- (a) section 552(1)(a) requires a certificate to be delivered to each of them; but
- (b) nothing in section 552 or this section requires a body to deliver a certificate under subsection (1)(a) of that section to any person whose address has not been provided to the body (or to another body, at a time when the obligations under the policy or contract were obligations of that other body).
- (5) A certificate under section 552(1)(b) or (3)—
- (a) shall be in a form prescribed for the purpose by the Board; and
- (b) shall be delivered by any means prescribed for the purpose by the Board;
and different forms, or different means of delivery, may be prescribed for different cases or different purposes.
- (6) The Board may by regulations make such provision as they think fit for securing that they are able—
- (a) to ascertain whether there has been or is likely to be any contravention of the requirements of section 552 or this section; and
- (b) to verify any certificate under that section.
- (7) Regulations under subsection (6) above may include, in particular, provisions requiring persons to whom premiums under any policy are or have at any time been payable—
- (a) to supply information to the Board; and
- (b) to make available books, documents and other records for inspection on behalf of the Board.
- (8) Regulations under subsection (6) above may—
- (a) make different provision for different cases; and
- (b) contain such supplementary, incidental, consequential or transitional provision as appears to the Board to be appropriate.
##### 552ZB
- (1) The Commissioners for Her Majesty's Revenue and Customs may make regulations—
- (a) requiring relevant persons—
- (i) to provide prescribed information to persons who apply for the issue of qualifying policies or who are, or may be, required to make statements under paragraph B3(2) of Schedule 15;
- (ii) to provide to an officer of Revenue and Customs prescribed information about qualifying policies which have been issued by them or in relation to which they are or have been a relevant transferee;
- (b) making such provision (not falling within paragraph (a)) as the Commissioners think fit for securing that an officer of Revenue and Customs is able—
- (i) to ascertain whether there has been or is likely to be any contravention of the requirements of the regulations or of paragraph B3(2) of Schedule 15;
- (ii) to verify any information provided to an officer of Revenue and Customs as required by the regulations.
- (2) The provision that may be made by virtue of subsection (1)(b) includes, in particular, provision requiring relevant persons to make available books, documents and other records for inspection by or on behalf of an officer of Revenue and Customs.
- (3) The regulations may—
- (a) make different provision for different cases or circumstances, and
- (b) contain incidental, supplementary, consequential, transitional, transitory or saving provision.
- (4) In this section—
- “*prescribed*” means prescribed by the regulations,
- “*qualifying policy*” includes a policy which would be a qualifying policy apart from—paragraph A1(2), B1(2), B2(2) or B3(3) of Schedule 15, orparagraph 17(2)(za) of that Schedule (including as applied by paragraph 18), and
- “*relevant person*” means a person—who issues, or has issued, qualifying policies, orwho is, or has been, a relevant transferee in relation to qualifying policies.
- (5) For the purposes of this section a person (“X”) is at any time a “*relevant transferee*” in relation to a qualifying policy if the obligations under the policy of its issuer are at that time the obligations of X as a result of there having been a transfer to X of the whole or any part of a business previously carried on by the issuer.
##### 552A
- (1) This section has effect for the purpose of securing that, where it applies to an overseas insurer, another person is the overseas insurer’s tax representative.
- (2) In this section “*overseas insurer*” means a person who is not resident in the United Kingdom who carries on a business which consists of or includes the effecting and carrying out of—
- (a) policies of life insurance;
- (b) contracts for life annuities; or
- (c) capital redemption policies.
- (3) This section applies to an overseas insurer—
- (a) if the condition in subsection (4) below is satisfied on the designated day; or
- (b) where that condition is not satisfied on that day, if it has subsequently become satisfied.
- (4) The condition mentioned in subsection (3) above is that—
- (a) there are in force relevant insurances the obligations under which are obligations of the overseas insurer in question or of an overseas insurer connected with him; and
- (b) the total amount or value of the gross premiums paid under those relevant insurances is £1 million or more.
- (5) In this section “*relevant insurance*” means any policy of life insurance, contract for a life annuity or capital redemption policy . . . in the case of which—
- (a) the holder is resident in the United Kingdom;
- (b) the obligations of the insurer are obligations of a person not resident in the United Kingdom; and
- (c) those obligations are not attributable to a branch or agency of that person’s in the United Kingdom.
- (6) Before the expiration of the period of three months following the day on which this section first applies to an overseas insurer, the overseas insurer must nominate to the Board a person to be his tax representative.
- (7) A person shall not be a tax representative unless—
- (a) if he is an individual, he is resident in the United Kingdom and has a fixed place of residence there, or
- (b) if he is not an individual, he has a business establishment in the United Kingdom,
and, in either case, he satisfies such other requirements (if any) as are prescribed in regulations made for the purpose by the Board.
- (8) A person shall not be an overseas insurer’s tax representative unless—
- (a) his nomination by the overseas insurer has been approved by the Board; or
- (b) he has been appointed by the Board.
- (9) The Board may by regulations make provision supplementing this section; and the provision that may be made by any such regulations includes provision with respect to—
- (a) the making of a nomination by an overseas insurer of a person to be his tax representative;
- (b) the information which is to be provided in connection with such a nomination;
- (c) the form in which such a nomination is to be made;
- (d) the powers and duties of the Board in relation to such a nomination;
- (e) the procedure for approving, or refusing to approve, such a nomination, and any time limits applicable to doing so;
- (f) the termination, by the overseas insurer or the Board, of a person’s appointment as a tax representative;
- (g) the appointment by the Board of a person as the tax representative of an overseas insurer (including the circumstances in which such an appointment may be made);
- (h) the nomination by the overseas insurer, or the appointment by the Board, of a person to be the tax representative of an overseas insurer in place of a person ceasing to be his tax representative;
- (j) circumstances in which an overseas insurer to whom this section applies may, with the Board’s agreement, be released (subject to any conditions imposed by the Board) from the requirement that there must be a tax representative;
- (k) appeals to the tribunal against decisions of the Board under this section or regulations under it.
- (10) The provision that may be made by regulations under subsection (9) above also includes provision for or in connection with the making of other arrangements between the Board and an overseas insurer for the purpose of securing the discharge by or on behalf of the overseas insurer of the relevant duties, within the meaning of section 552B.
- (11) Section 1122 of CTA 2010 (connected persons) applies for the purposes of this section.
- (12) In this section—
- “*capital redemption policy*” means a capital redemption policy in relation to which . . . Chapter 9 of Part 4 of ITTOIA 2005 has effect;
- “*contract for a life annuity*” means a contract for a life annuity in relation to which . . . Chapter 9 of Part 4 of ITTOIA 2005 has effect;
- “*the designated day*” means such day as the Board may specify for the purpose in regulations;
- “*policy of life insurance*” means a policy of life insurance in relation to which . . . Chapter 9 of Part 4 of ITTOIA 2005 has effect;
- “*tax representative*” means a tax representative under this section.
##### 552B
- (1) It shall be the duty of an overseas insurer’s tax representative to secure (where appropriate by acting on the overseas insurer’s behalf) that the relevant duties are discharged by or on behalf of the overseas insurer.
- (2) For the purposes of this section “*the relevant duties*” are—
- (a) the duties imposed by section 552,
- (b) the duties imposed by section 552ZA(2), (4) or (5), . . .
- (c) any duties imposed by regulations made under subsection (6) of section 552ZA by virtue of subsection (7) of that section, and
- (d) any duties imposed by regulations under section 552ZB,
so far as relating to relevant insurances under which the overseas insurer in question has any obligations.
- (3) An overseas insurer’s tax representative shall be personally liable—
- (a) in respect of any failure to secure the discharge of the relevant duties, and
- (b) in respect of anything done for purposes connected with acting on the overseas insurer’s behalf,
as if the relevant duties were imposed jointly and severally on the tax representative and the overseas insurer.
- (4) In the application of this section in relation to any particular tax representative, it is immaterial whether any particular relevant duty arose before or after his appointment.
- (5) This section has effect in relation to relevant duties relating to chargeable events happening on or after the day by which section 552A(6) requires the nomination of the overseas insurer’s first tax representative to be made.
- (5A) In subsection (5) “*chargeable event*” has the same meaning as in section 552 (see subsection (10) of that section).
- (6) Expressions used in this section and in section 552A have the same meaning in this section as they have in that section.
##### 553A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 553B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 553C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 559A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cessation of approval: general provisions.
### Chapter 5A — Share loss relief
### Relief for losses on unquoted shares in trading companies
##### 576A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Qualifying trading companies: the requirements
##### 576B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: companies.
##### 576C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576I
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Qualifying trading companies: supplementary provisions
##### 576J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 576K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplemental
##### 576L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: mileage allowance payments
##### 577A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 578A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 578B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Company vehicles
##### 581A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 582A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on payments in respect of corporation tax and meaning of “the material date".
##### 587A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 587B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 587BA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 587C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Corporation Tax Acts etc.
##### 589A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 589B
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 590A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 590B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 590C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 591A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 591B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 591C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 591D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Income arising under settlement where settlor retains an interest.
##### 596A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 596B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 596C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 599A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 605A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 606A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 611A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 611AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 611A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 617A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Revocable settlements allowing release of obligation.
#### Settlements made after 6th April 1965.
##### 631A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 632A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 632B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 634A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 636A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 637A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 638ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 638A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Settlements made after 6th April 1965.
##### 640A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 641A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schedule 4 directions.
#### Interpretation.
##### 646A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 646B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 646C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 646D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Annuities: charge to tax
##### 648A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 648B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 650A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 651A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 653A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 658A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 659A
- (1) For the purposes of sections . . . 613(4), 614(3) and (4) . . . —
- (a) “*investments*” (or “*investment*”) includes futures contracts and options contracts, and
- (b) income derived from transactions relating to such contracts shall be regarded as income derived from (or income from) such contracts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) For the purposes of subsection (1) above a contract is not prevented from being a futures contract or an options contract by the fact that any party is or may be entitled to receive or liable to make, or entitled to receive and liable to make, only a payment of a sum (as opposed to a transfer of assets other than money) in full settlement of all obligations.
##### 659B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 659C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 659D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 659E
- (1) The exemptions specified below do not apply to income derived from investments, deposits or other property held as a member of a property investment LLP (see section 1004 of ITA 2007).
- (2) The exemptions are those provided by—
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- section 613(4) (Parliamentary pension funds),
- section 614(3) (certain colonial, &c. pension funds),
- section 614(4) (the Overseas Service Pension Fund),
- section 614(5) (other pension funds for overseas employees),
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) The income to which subsection (1) above applies includes relevant stock lending fees, in relation to any investments, to which any of the provisions listed in subsection (2) above would apply by virtue of section 129B.
- (4) Section 659A (treatment of futures and options) applies for the purposes of subsection (1) above.
### Chapter IA — Liability of settlor
### Main provisions
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660C
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplementary provisions
##### 660E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 660G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 674A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### How averaging claim is given effect
##### 682A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### . . .
### . . .
##### 685A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustment of profits on averaging claim
##### 685F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 685G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 686A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 686B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 686C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 686D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustment of profits on averaging claim
##### 686E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 687A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Chapter ID — Trust management expenses
##### 689A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 689B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 698A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 699A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 705A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 705B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of chargeable profits and creditable tax
#### General definition of offshore fund
#### Deductions: asset transferred within group.
##### 722A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in ownership of company carrying on property business.
##### 726A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 727A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provision not at arm’s length.
##### 730A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 730B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 730BB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 730C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sections 774B and 774D: exceptions
##### 736A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sections 774B and 774D: exceptions
##### 736B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 736C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 736D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sections 774A to 774D: minor definitions etc
##### 737A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 737B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 737C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 737D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 737E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 741A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 741B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 741C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 741D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfers of rights to receive annual payments
##### 747A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 748ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 748A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 749A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 749B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 750A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 751A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leased assets subject to hire-purchase agreements.
##### 751AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 751AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Company vehicles
##### 751AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
##### 751B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
##### 752A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 752B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 752C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 754A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 754B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 755A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 755B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 755C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 755D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Meaning of offshore fund
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 756A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Treatment of umbrella funds
##### 756B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Treatment of funds comprising more than one class of interest
##### 756C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sale by individual of income derived from his personal activities.
##### 762ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 762ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 762A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 765A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assets leased to traders and others.
##### 767A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 767AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 767B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 767C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 768E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 770A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Factoring of income receipts etc
##### 774A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 774G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 775A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction of relief for payments of interest.
##### 785ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 785D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief by agreement with other territories.
##### 785E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction to section 807E
#### Tax treated as chargeable in respect of transfer of loan relationship, derivative contract or intangible fixed assets
##### 793A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 795A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 797A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 797B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
##### 798A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 798B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 798C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 801A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 801B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 801C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 803A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804ZC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 804G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Foreign dividends: onshore pooling and utilisation of eligible unrelieved foreign tax
##### 806A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806J
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Application of foreign dividend provisions to branches or agencies in the UK of persons resident elsewhere
##### 806K
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Unrelieved foreign tax: profits of overseas branch or agency
##### 806L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 806M
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 807A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 808A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 808B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery of tax credits incorrectly paid.
#### Mutual agreement procedure and presentation of cases under arrangements.
##### 815A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 815AZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to inspect documents.
##### 815AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 815B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 815C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: companies.
#### Repayment supplements: companies.
##### 826A
- (1) The Treasury may by regulations make provision applying section 826, with such modifications as may be prescribed, for the purpose of conferring on companies of such descriptions as may be prescribed a right to interest—
- (a) on such payments made by them in respect of corporation tax as may be prescribed,
- (b) at the rate applicable under section 178 of the Finance Act 1989, and
- (c) for such period as may be prescribed,
and for treating any such interest for the purposes, or prescribed purposes, of the Tax Acts as interest under section 826(1)(a) on a repayment of corporation tax.
- (2) The Treasury may by regulations make provision modifying section 826(2) in relation to companies of such description as may be prescribed.
- (3) Subsections (1) and (2) above do not apply in relation to companies in relation to which section 826(2) is modified or otherwise affected by regulations under section 59E of the Management Act (alteration of date on which corporation tax becomes due and payable) in relation to the accounting period to which the corporation tax in question relates.
- (4) Where the Treasury make regulations under subsection (2) above in relation to companies of any description, they may also make regulations modifying section 59DA(2) of the Management Act in relation to those companies, or any description of such companies, by varying the date before which the claim there mentioned may not be made.
- (5) Regulations under this section—
- (a) may make different provision in relation to different cases or circumstances or in relation to companies or accounting periods of different descriptions;
- (b) may make such supplementary, incidental, consequential or transitional provision as appears to the Treasury to be necessary or expedient.
- (6) Regulations under this section may not make provision in relation to accounting periods ending before the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (corporation tax self-assessment).
- (7) In this section “*prescribed*” means prescribed by regulations made under this section.
##### 827A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: companies.
##### 834A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 834B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 834C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 836A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 836B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery of tax credits incorrectly paid.
##### 837A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 837B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 837C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 840ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 840A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 841A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 842AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 842A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 842B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## SCHEDULE A1
## Part 1 — Introduction
### Introduction
##### 1
- (1) The provisions of this Schedule have effect for supplementing section 11AA as regards the determination of the profits attributable to a permanent establishment in the United Kingdom of a company that is not resident in the United Kingdom (“*the non-resident company*”).
- (2) In this Schedule “*the separate enterprise principle*” means the principle in section 11AA(2) (read with subsection (3) of that section).
## Part 2 — General provisions
### Transactions treated as taking place at arm’s length
##### 2
In accordance with the separate enterprise principle, transactions between the permanent establishment and any other part of the non-resident company are treated as taking place on such terms as would have been agreed between parties dealing at arm’s length.
### Application of general provision as to allowable deductions
##### 3
- (1) Section 11AA(4) (general provision as to allowable deductions) applies whether or not the expenses are incurred by, or reimbursed by, the permanent establishment.
- (2) The amount of expenses to be taken into account under section 11AA(4) is the actual cost to the non-resident company.
### Prohibition of deductions for payments in respect of intangible assets
##### 4
- (1) No deduction is allowed in respect of royalties paid, or other similar payments made, by the permanent establishment to any other part of the non-resident company in respect of the use of intangible assets held by the company.
- (2) This does not prevent a deduction in respect of any contribution by the permanent establishment to the costs of creation of an intangible asset.
- (3) In this paragraph “*intangible asset*” has the meaning it has for accounting purposes, and includes any intellectual property (as defined in paragraph 2(2) of Schedule 29 to the Finance Act 2002).
### Prohibition of deductions for interest or other financing costs
##### 5
- (1) No deduction is allowed in respect of payments of interest or other financing costs by the permanent establishment to any other part of the non-resident company, except as provided by sub-paragraph (2).
- (2) The restriction in sub-paragraph (1) above does not apply to interest or other costs of financing that are payable in respect of borrowing by the permanent establishment in the ordinary course of a financial business carried on by it.
- (3) In sub-paragraph (2) “*financial business*” means any of the following—
- (a) banking, deposit-taking, money-lending or debt-factoring, or a business similar to any of those;
- (b) dealing in commodity or financial futures.
### Provision of goods or services for permanent establishment
##### 6
- (1) This paragraph applies where the non-resident company provides the permanent establishment with goods or services.
- (2) If the goods or services are of a kind that the company supplies, in the ordinary course of its business, to third parties dealing with it at arm’s length, the matter is dealt with as a transaction to which the separate enterprise principle applies.
- (3) If not, the matter is dealt with as an expense incurred by the non-resident company for the purposes of the permanent establishment.
## Part 3 — Provisions applicable to non-resident banks
### Application of this Part
##### 7
- (1) The provisions of this Part of this Schedule have effect where the non-resident company is a bank.
- “*Bank*” for this purpose has the meaning given by section 840A.
- (2) Nothing in this Part of this Schedule shall be read as preventing the application of principles similar to those provided for in this Part in applying the separate enterprise principle to a non-resident company that is not a bank.
### Non-resident banks: transfer of financial assets
##### 8
- (1) In accordance with the separate enterprise principle, transfers of loans and other financial assets between the permanent establishment and any other part of the company are recognised only if they would have taken place between independent enterprises.
- (2) Such a transfer is not recognised where it cannot reasonably be considered that it is carried out for valid commercial reasons. For this purpose the obtaining of a tax advantage is not a valid commercial reason.
### Loans by non-resident banks: attribution of financial assets and profits arising
##### 9
- (1) In accordance with the separate enterprise principle, loans and other financial assets, and profits arising from them, are attributed to a permanent establishment to the extent that they can reasonably be regarded as having been generated by the activities of the permanent establishment.
- (2) The following provisions have effect as regards the factors to be taken into account.
- (3) Particular account shall be taken of the extent to which the permanent establishment is responsible for—
- (a) obtaining the offer of new business;
- (b) establishing the potential borrower’s credit rating and the risk involved in providing credit;
- (c) negotiating the terms of the loan with the borrower;
- (d) deciding whether, and if so on what conditions, to make or extend the loan.
- (4) Account may also be taken of the extent to which the permanent establishment is responsible for—
- (a) concluding the loan agreement and disbursing the proceeds of the loan;
- (b) administering the loan (including handling and monitoring the service of it) and holding and controlling any securities pledged.
- (5) References in this paragraph to a financial asset include any financial risk in relation to a loan, or potential loan, that is capable of giving rise to fees or other receipts and for which the holding of capital is required (or would be required if the transaction were between parties at arm’s length).
### Borrowing by non-resident banks: permanent establishment acting as agent or intermediary
##### 10
- (1) This paragraph applies where a permanent establishment—
- (a) borrows funds for the purposes of another part of the non-resident company, and
- (b) in relation to that borrowing acts only as an agent or intermediary.
- (2) In such a case, in accordance with the separate enterprise principle—
- (a) the profits attributable to the permanent establishment, and
- (b) the capital attributable to the permanent establishment under section 11AA(3),
shall be that appropriate in the case of an agent acting at arm’s length, taking into account the risks and costs borne by the establishment.
## SCHEDULE A2
## Part 1 — General provisions
### Introduction
##### 1
The provisions of this Schedule supplement section 13AB (corporation tax: the non-corporate distribution rate).
### Meaning of “non-corporate distribution”
##### 2
- (1) A “*non-corporate distribution*” means a distribution made by a company to a recipient who is not a company.
- “*Recipient*” here means the person beneficially entitled to the distribution.
- (2) A distribution made to a partnership is treated as made to the partners notwithstanding that the partnership is regarded as a legal person, or as a body corporate, under the law of the country or territory under which it is formed.
### Calculation of company’s “underlying rate of corporation tax”
##### 3
- (1) A company’s underlying rate of corporation tax for an accounting period is determined as follows:
*Step One*
Take the company’s basic profits for the accounting period (“BP”).
*Step Two*
Find the amount of corporation tax chargeable on those profits apart from section 13AB (“CT”).
*Step Three*
The company’s underlying rate of corporation tax is the percentage determined as follows—
$(CTBP)×100$
- (2) In determining CT—
- (a) apply the rate of corporation tax fixed for companies generally, and
- (b) if the company is entitled to and claims relief under section 13 (small companies' relief) or section 13AA (corporation tax starting rate), apply the provisions of those sections.
But take no account of any other relief that is given by reducing the amount or rate of tax payable (as opposed to the amount of the profits chargeable to tax).
### Matching: distributions not exceeding basic profits
##### 4
Where in an accounting period the total amount of the distributions made (or treated as made) by a company does not exceed the amount of its basic profits, the amount of the company’s basic profits matched with non-corporate distributions is equal to the total amount of the non-corporate distributions made (or treated as made) by the company in that period.
### Matching: distributions exceeding basic profits
##### 5
Where in an accounting period the total amount of the distributions made (or treated as made) by a company exceeds its basic profits, the amount of the company’s basic profits for that period matched with non-corporate distributions is—
## Part 2 — Allocation of excess NCDs to other companies
### Allocation of excess NCDs to other companies
##### 6
- (1) This Part of this Schedule provides for the allocation to other companies of any amount by which the total amount of the non-corporate distributions made (or treated as made) by a company (the “distributing company”) in an accounting period (the “distribution period”) exceeds the amount of the company’s basic profits for that period that are matched under paragraph 5.
- (2) That amount is referred to in this Schedule as “*excess NCDs*”.
- (3) A company to which an amount of excess NCDs is allocated (a “*recipient company*”) is treated as if it had made a non-corporate distribution of that amount in the period to which it is allocated.
### Allocation of excess NCDs to other group companies
##### 7
- (1) If at the end of the distribution period the distributing company is a member of a group, excess NCDs must be allocated, so far as possible, to the other group companies.
The allocation must be made in accordance with the following rules.
- (2) Excess NCDs may not be allocated to a recipient company unless it has available profits for the accounting period to which they are to be allocated.
- (3) The amount of a recipient company’s available profits for an accounting period is given by:
$$BP-NCD$where—BP is the amount of that company’s basic profits for that accounting period, andNCD is the total amount of non-corporate distributions made (or treated as made) by that company in that period.$
- (4) The maximum amount of excess NCDs that may be allocated to an accounting period of a recipient company is:
$$(NCDD)×AP$where—NCD is the total amount of the non-corporate distributions made (or treated as made) by the distributing company in the distribution period;D is the total amount of all the distributions made (or treated as made) by that company in that period; andAP is the amount of the recipient company’s available profits for that period.$
- (5) In determining the amount of a company’s available profits at any time account shall only be taken of excess NCDs allocated to it by virtue of an allocation made before that time that remains (or so far as it remains) effective.
### Allocation of excess NCDs: period or periods to which amount to be allocated
##### 8
- (1) Excess NCDs falling to be allocated to another company under paragraph 7 (allocation to other group companies) may be allocated to any accounting period identified by this paragraph as a corresponding accounting period.
If there is more than one such period, excess NCDs must be allocated to the first to the full extent possible before any allocation is made to the second, and so on.
- (2) The accounting period of a recipient company that includes the last day of the distribution period is its first corresponding accounting period.
Unless that accounting period is shorter than the distribution period, it is the recipient company’s only corresponding accounting period.
- (3) If the first corresponding accounting period is shorter than the distribution period, any subsequent accounting period of the recipient company beginning before the end of the period specified in sub-paragraph (4) is a corresponding accounting period.
- (4) The period referred to in sub-paragraph (3) is a period—
- (a) of the same length as the distribution period, and
- (b) beginning on the same day as the recipient company’s first corresponding accounting period.
### Allocation of excess NCDs: degrouping
##### 9
- (1) This paragraph applies where a company (“company A”) ceases to be a member of the same group as another company (“company B”) but the companies remain under the control of the same person or persons.
This is referred to below as “*degrouping*”.
- (2) If at the end of any accounting period of company A ending on or after the degrouping but no more than two years after the degrouping—
- (a) company A has excess NCDs that (apart from this paragraph) cannot be allocated to other companies,
- (b) the business activities of company A and any other companies in the same group as that company are negligible, and
- (c) the business activities of company B and any other companies in the same group as that company are not negligible,
the provisions of sub-paragraphs (3) to (5) below apply.
The end of the accounting period when the above conditions are met is referred to in those provisions as “*the relevant time*”.
- (3) Company B and any other companies in the same group as that company at the relevant time (the “B group”) shall be treated for the purposes of allocating the excess NCDs as if they were members of the same group as company A.
- (4) Any excess NCDs remaining after any allocation made by virtue of sub-paragraph (3) must be allocated—
- (a) to company B or, if different, the company in the B group that at the relevant time has the greatest number of members who are not companies, and
- (b) to the accounting period of that company that includes the relevant time.
This allocation is not subject to the restrictions in paragraph 7 on the amount that may be allocated to another company.
- (5) If there is more than one company answering the description in sub-paragraph (4)(a), the excess NCDs shall be apportioned between them according to the amount of their basic profits for the accounting period to which the amount falls to be allocated.
- (6) In this paragraph “*control*” shall be construed in accordance with section 416(2) to (6).
### Allocation of excess NCDs: procedure
##### 10
- (1) The basic rule is that the allocation of excess NCDs to another company must be made by the distributing company with the agreement of the recipient company.
- (2) If excess NCDs are not so allocated within nine months after—
- (a) in a case within paragraph 7, the end of the distribution period, or
- (b) in a case within paragraph 9, the relevant time within the meaning of that paragraph,
they may be allocated at any time thereafter by an officer of the Board.
- (3) An allocation under sub-paragraph (1) or (2) may be varied—
- (a) by agreement between the relevant companies, or
- (b) if further excess NCDs are required to be allocated and no variation is agreed within one year after its becoming apparent that a variation is required, by an officer of the Board.
Any such variation may in turn be varied as mentioned in paragraph (a) or (b).
- (4) No allocation or variation of an allocation of excess NCDs may be made after the end of the period of one year after whichever of the following last occurs—
- (a) the final determination of the tax affairs of the distributing company in relation to the distribution period,
- (b) in a case within paragraph 7, the final determination of the tax affairs of all recipient or potential recipient companies in relation to accounting periods that are or could be corresponding accounting periods, or
- (c) in a case within paragraph 9, the final determination of the tax affairs of all recipient or potential recipient companies in relation to accounting periods to which an allocation may be made under that paragraph.
- (5) If circumstances arise as a result of which the tax affairs of any such company for any such period are reopened, an allocation or variation of an allocation may (and shall if necessary) be made at any time before the end of the period of one year after the tax affairs of the company are again finally determined.
- (6) For the purposes of sub-paragraphs (4) and (5) the tax affairs of a company for a period are finally determined when the amounts are conclusively determined within the meaning of paragraph 88 of Schedule 18 to the Finance Act 1998 (c. 36) (company tax returns: conclusiveness of amounts stated in return).
- (7) References in this paragraph to variation of an allocation include reducing the amount allocated to nil.
### Allocation of excess NCDs: amounts proving to be excessive
##### 11
- (1) This paragraph applies where an amount of excess NCDs allocated to another company in accordance with this Part of this Schedule later proves to be excessive.
- (2) The excess shall revert to the distributing company.
- (3) If allocations to two or more companies are involved, the amounts shall revert in the opposite order to that in which the allocations were made.
- (4) In the case of allocations made at the same time, the amounts reverting to the distributing company shall be in proportion to the original allocations.
### Allocation of excess NCDs to companies not resident in the United Kingdom
##### 12
- (1) The provisions of this Part of this Schedule as to the allocation of excess NCDs to other companies apply, with any necessary modifications, to companies that are not resident in the United Kingdom as they apply to companies that are so resident.
- (2) In particular, references to the company’s basic profits and accounting periods shall be read in relation to a company that is not resident in the United Kingdom as references to what would have been the case if the company had been resident in the United Kingdom at all material times.
## Part 3 — Other supplementary provisions
### Carry forward of excess NCDs
##### 13
- (1) Any excess NCDs not allocated to another company under Part 2 shall be carried forward by the distributing company.
- (2) That company shall be treated as if it had made a non-corporate distribution of the amount carried forward (in addition to any distributions actually made by it) in its next accounting period.
- (3) Where an allocation is made under paragraph 9(4) references in this paragraph to the distributing company shall be read as references to the company to which that allocation is made (which is treated by virtue of paragraph 6(3) as having made a distribution in the accounting period to which the allocation is made).
### Definition of a group
##### 14
- (1) For the purposes of section 13AB and this Schedule a company and all its 51% subsidiaries form a group, and if any of those subsidiaries have 51% subsidiaries the group includes them and their 51% subsidiaries, and so on.
- (2) The question whether a company is a 51% subsidiary shall be determined in accordance with section 838, subject to the following provisions.
- (3) A company (“company A”) shall be treated for the purposes of this Schedule as if it were a 51% subsidiary of another company (“company B”) if company B has rights to, or in fact receives, more than 50% of the distributions made by company A.
- (4) For the purposes of this paragraph a company shall be treated as not being the owner—
- (a) of any share capital that it owns directly if a profit on the sale of the shares would be treated as a trading receipt of its trade, or
- (b) of any share capital that it owns indirectly and that is owned directly by a body corporate for which a profit on the sale of the shares would be treated as a trading receipt of its trade.
### Accounting period treated as ending if company ceases to be a member of a group
##### 15
- (1) Section 13AB and this Schedule apply in relation to an accounting period of a company in which it ceases to be a member of the group as if there were two accounting periods, one ending immediately before the company ceases to be a member of the group and the other consisting of the remainder of the period.
- (2) For this purpose a company ceases to be in a group if it and another company cease to be in the same group, whether as a result it is no longer in a group, becomes a member of another group or continues to be in the same group as one or more other companies.
### Treatment of distributions made otherwise than in an accounting period
##### 16
For the purposes of section 13AB and this Schedule, a non-corporate distribution made by a company otherwise than in an accounting period of the company shall be treated as made in the next accounting period of the company.
### Holding companies treated as carrying on a business
##### 17
- (1) For the purposes of section 13AB and this Schedule a holding company that is not otherwise carrying on a business shall be deemed to be carrying on a business and to be within the charge to corporation tax.
- (2) For this purpose “*a holding company*” means a company that has one or more 51% subsidiaries from which it receives or has received one or more distributions.
### Interpretation
##### 18
In section 13AB and this Schedule—
- “*basic profits*” means the amount of a company’s profits for an accounting period on which corporation tax finally falls to be borne;
- “*corresponding accounting period*”, in relation to a recipient company, has the meaning given by paragraph 8;
- “*distributing company*” has the meaning given by paragraph 6(1);
- “*distribution*” does not include an amount treated as a dividend under paragraph 2(2) of Schedule 23A (manufactured dividends and interest);
- “*distribution period*” has the meaning given by paragraph 6(1); and
- “*excess NCDs*” has the meaning given by paragraph 6(2);
- “*group*” has the meaning given by paragraph 14 (and references to a group company and membership of a group have a corresponding meaning);
- “*non-corporate distribution*” has the meaning given by paragraph 2;
- “*recipient company*” has the meaning given by paragraph 6(3);
- “*underlying rate of corporation tax*” has the meaning given by paragraph 3.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 6A
- (1) On the fourteenth day following the month in which a transaction such as is mentioned in paragraph 6 above is effected, income tax (at the lower rate in force at the time of payment) shall become due in respect of the relevant dividends or proceeds.
- (2) The tax shall be payable by the chargeable person on behalf of the persons entitled to the dividends or proceeds.
- (2A) Payments of tax made on any person’s behalf under this paragraph shall be treated as made for the purpose only of being applied in the discharge of that person’s liability to tax charged (otherwise than by virtue of this paragraph) on the dividends or proceeds to which the payments relate.
- (3) The tax shall be payable without the making of any assessment.
- (4) For the purposes of sub-paragraph (1) above the applicable rate shall be—
- (a) the lower rate, in the case of a foreign dividend which is neither interest nor any other annual payment which is made otherwise than by way of dividend; and
- (b) the basic rate in any other case.
##### 6B
Any tax due under paragraph 6A above shall carry interest, at the rate applicable under section 178 of the Finance Act 1989, from the date on which it becomes due until it is paid.
##### 6C
- (1) For each quarter in which a person effects a transaction in respect of which he is a chargeable person, he shall make a return to the Board.
- (2) The return shall specify the chargeable person’s name and address and give, in respect of each such transaction effected by him in the quarter, correct and complete particulars of—
- (a) the relevant dividends or proceeds, and
- (b) the income tax on those dividends or proceeds for which he has accounted, or is accountable, under paragraph 6A above.
- (3) The return shall be made within 30 days from the end of the quarter.
- (4) In this paragraph and paragraphs 6D to 6F below, “*quarter*” means any period of three months ending with 31st March, 30th June, 30th September or 31st December.
##### 6D
- (1) Any income tax which has become due under paragraph 6A above and particulars of which are included in a return may be assessed on the chargeable person (whether or not it has been paid when the assessment is made) if it, or any part of it, was not paid on or before the date on which it became due.
- (2) If it appears to the Board that there are any dividends or proceeds particulars of which ought to have been and have not been included in a return, or if the Board are not satisfied with any return, the Board may make an assessment on the chargeable person of the amount, or further amount, of income tax for which he is in their opinion accountable.
- (3) Where the Board make an assessment under sub-paragraph (2) above they shall specify—
- (a) which of the months in the quarter was the one in which they consider the transactions in question were effected, or
- (b) where they consider that the transactions were effected in more than one of the months in the quarter, the proportion of the total amount of the assessment that is to be attributed to each of those months.
- (4) Any income tax assessed under sub-paragraph (2) above shall be due within 14 days after the issue of the notice of assessment; but for the purposes of paragraph 6B above—
- (a) it shall be treated as having become due on the fourteenth day following the month specified under sub-paragraph (3)(a) above, or
- (b) each of the portions of it specified under sub-paragraph (3)(b) above shall be treated as having become due on the fourteenth day following the month to which it is to be attributed.
##### 6E
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) For the purposes of sections 34 and 36(1) of the Management Act (time limits for making assessments), an assessment under paragraph 6D above shall be taken to relate to the year of assessment in which the quarter to which the assessment relates ends.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 6F
If a person has made a payment purporting to be a payment of tax due under paragraph 6A above but it appears to the Board that—
- (a) he was not liable to make any payment under that paragraph, or
- (b) the sum paid exceeded his liability under that paragraph,
the Board shall make or allow to be made such repayments, adjustments or set-offs against unpaid tax as they think appropriate.
##### 11A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Issue price
##### 11B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Retirement benefit schemes
##### 15
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Stock lending
##### 16
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Trustees
##### 17
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Underwriters
##### 18
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Gilts: special rules
##### 19
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Non-gilts: special rules
##### 20
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Convertible securities: special rules
##### 21
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## SCHEDULE 4AA
### Introductory
##### 1
- (1) This Schedule forms part of the SIP code (see section 488 of ITEPA 2003 (approved share incentive plans)).
- (2) Accordingly, expressions used in this Schedule and contained in the index at the end of Schedule 2 to that Act (approved share incentive plans) have the meaning indicated by that index.
- (3) References in this Schedule to deductions are to deductions by a company in calculating for the purposes of corporation tax the profits of a trade carried on by it.
- (4) Sub-paragraph (3) is subject to paragraph 13 (application of provisions to expenses of management of companies with investment business etc.).
### Deduction for providing free or matching shares
##### 2
- (1) Where, under an approved share incentive plan, shares are awarded to employees as free or matching shares by reason of their employment with a company, a deduction is allowed under this paragraph to that company.
- (2) Any such deduction—
- (a) is of an amount equal to the market value of the shares at the time they are acquired by the trustees, and
- (b) must be made for the period of account in which the shares are awarded to employees in accordance with the plan.
- (3) Except as provided by sub-paragraph (1), no deduction may be made by the company or any associated company in respect of the provision of those shares.
This is subject to paragraphs 7 and 8 (deductions for costs of setting up, and contributions to running expenses of, plan).
- (4) Where the shares are awarded under a group plan, the market value of the shares at the time they are acquired by the trustees shall for the purposes of this paragraph be taken to be the relevant proportion of the total market value of the shares included in the award.
- (5) For the purposes of sub-paragraph (4) “*the relevant proportion*” means the proportion that the number of shares in the award awarded to the employees of the company concerned bears to the total number of shares in the award.
- (6) In determining the market value of any shares for the purposes of this paragraph, if shares have been acquired by the trustees on different days it shall be assumed that those acquired on an earlier day are awarded to employees under the plan before those acquired by the trustees on a later day.
- (7) If a deduction is made under this paragraph by a company, no deduction may be made by any other company under this paragraph in respect of the provision of the shares.
- (8) This paragraph has effect subject to paragraph 4 (cases in which no deduction is allowed).
### Deduction for additional expenses in providing partnership shares
##### 3
- (1) Where under an approved share incentive plan—
- (a) partnership shares are awarded to employees by reason of their employment with a company, and
- (b) the market value of those shares at the time they are acquired by the trustees exceeds the partnership share money paid by the participants to acquire those shares,
a deduction is allowed under this paragraph to that company.
- (2) Any such deduction—
- (a) is of an amount equal to the amount of the excess referred to in sub-paragraph (1)(b), and
- (b) must be made for the period of account in which the shares are awarded to employees in accordance with the plan.
- (3) Except as provided by sub-paragraph (1), no deduction may be made by that company or any associated company in respect of the provision of those shares.
This is subject to paragraphs 7 and 8 (deductions for costs of setting up, and contributions to running expenses of, plan).
- (4) If a deduction is made under this paragraph by a company, no deduction may be made by any other company under this paragraph in respect of the provision of the shares.
- (5) This paragraph has effect subject to paragraph 4 (cases in which no deduction is allowed).
### Cases in which no deduction is allowed
##### 4
- (1) No deduction is allowed under paragraph 2 or 3 (deductions for providing free or matching shares or for additional expenses in providing partnership shares) in the following cases.
- (2) No deduction is allowed in respect of shares awarded to an individual under the plan unless, at the time of the award, any earnings from the required employment are (or would be) chargeable earnings.
- (3) In sub-paragraph (2)—
- “*chargeable earnings*” means general earnings to which any of the charging provisions of Chapter 4 or 5 of Part 2 of ITEPA 2003 apply, and
- the “*required employment*” means the employment by reference to which the individual is eligible to participate in the award.
- (4) In sub-paragraph (3), the reference to any of the charging provisions of Chapter 4 or 5 of Part 2 of that Act has the same meaning as it has in the employment income Parts of ITEPA 2003 (see sections 14(3) and 20(3) of that Act).
- (5) No deduction is allowed in respect of shares that are liable to depreciate substantially in value for reasons that do not apply generally to shares in the company.
- (6) No deduction is allowed if a deduction has been made—
- (a) by the company, or
- (b) by an associated company of the company,
in respect of the provision of the same shares for this or another trust.
- (7) Sub-paragraph (6) applies whatever the nature or purpose of the other trust and whatever the basis on which the deduction was made.
- (8) For the purposes of determining whether the same shares have been provided to more than one trust, if shares have been acquired by the trustees of the plan trust on different days it shall be assumed that those acquired on an earlier day are awarded under the plan before those acquired by the trustees on a later day.
- (9) No deduction is allowed in respect of the award of shares acquired by the trustees by virtue of a payment in respect of which a deduction has been made under paragraph 9 (deduction for contribution to plan trust) or 10(3) (further deduction where deduction under paragraph 9 withdrawn).
### No deduction for expenses in providing dividend shares
##### 5
- (1) No deduction is allowed for expenses in providing shares that are acquired on behalf of individuals under an approved share incentive plan as dividend shares.
- (2) This is subject to paragraph 8 (deductions for contributions to running expenses of plan).
### Treatment of forfeited shares
##### 6
- (1) This paragraph applies if any of a participant’s plan shares are forfeited.
- (2) The shares are treated for the purposes of this Schedule as acquired by the trustees—
- (a) when the forfeiture occurs, and
- (b) for no consideration.
- (3) No deduction is allowed under paragraph 2 or 3 (deductions for providing free or matching shares or for additional expenses in providing partnership shares) in respect of any subsequent award of those shares under the plan.
### Deduction for costs of setting up the plan
##### 7
- (1) A deduction is allowed under this paragraph for expenses incurred by a company in establishing a share incentive plan which is approved by the Inland Revenue.
- (2) No deduction may be made under this paragraph if—
- (a) any employee acquires rights under the plan, or
- (b) the trustees acquire any shares for the purposes of the plan,
before the Inland Revenue approve the plan.
- (3) If Inland Revenue approval of the plan is given more than nine months after the end of the period of account in which the expenses are incurred, the expenses are treated for the purposes of this paragraph as deductible for the period in which the approval is given.
- (4) No other deduction is allowed in respect of expenses for which a deduction is allowed under this paragraph.
### Deductions for contributions to running expenses of plan
##### 8
- (1) Nothing in this Schedule affects any deduction for expenses incurred by a company in contributing to the expenses of the trustees in operating an approved share incentive plan.
- (2) For this purpose the expenses of the trustees in operating the plan—
- (a) do not include expenses in acquiring shares for the purposes of the trust, other than incidental acquisition costs, but
- (b) do include the payment of interest on money borrowed by them for that purpose.
- (3) In sub-paragraph (2)(a) “*incidental acquisition costs*” means any fees, commission, stamp duty and similar incidental costs attributable to the acquisition of the shares.
### Deduction for contribution to plan trust
##### 9
- (1) A deduction is allowed to a company under this paragraph where—
- (a) on or after 6th April 2003, that company makes a payment to the trustees of an approved share incentive plan in order to enable them to acquire shares in that company or a company which controls it,
- (b) the payment is applied by the trustees to acquire such shares,
- (c) the shares are not acquired from a company, and
- (d) the condition in sub-paragraph (2) is met in relation to the company in which the shares are acquired.
- (2) The condition in this sub-paragraph is that, at the end of the period of 12 months beginning with the date of the acquisition, the trustees hold shares in the company for the plan trust that—
- (a) constitute not less than 10 per cent of the ordinary share capital of the company, and
- (b) carry rights to not less than 10 per cent of—
- (i) any profits available for distribution to shareholders of the company,
- (ii) any assets of that company available for distribution to its shareholders in the event of a winding-up.
- (3) For the purposes of sub-paragraph (2), shares that have been appropriated to, and acquired on behalf of, an individual under the plan shall continue to be treated as held by the trustees of the plan trust for the beneficiaries of that trust until such time as they cease to be subject to the plan (within the meaning of the SIP code).
- (4) A deduction allowed under this paragraph—
- (a) is of an amount equal to the amount of the payment referred to in sub-paragraph (1), and
- (b) must be made for the period of account in which the condition in sub-paragraph (2) is met.
- (5) No other deduction is allowed for any amount in respect of which a deduction has been made under this paragraph (except as specified in paragraph 10).
### Withdrawal of deduction under paragraph 9
##### 10
- (1) The Inland Revenue may by notice direct that the benefit of a deduction made under paragraph 9 is withdrawn where—
- (a) fewer than 30 per cent of the shares acquired by virtue of the payment in respect of which the deduction is made have been awarded under the plan before the end of the period of 5 years beginning with the date of acquisition, or
- (b) not all the shares acquired by virtue of that payment have been so awarded before the end of the period of 10 years beginning with that date.
- (2) The effect of a direction under sub-paragraph (1)(a) or (b) is that the amount of the deduction is treated as a trading receipt of the company for the period of account in which the direction is given.
- (3) However, where—
- (a) the Inland Revenue give a direction under sub-paragraph (1)(a) or (b) in respect of any deduction, and
- (b) at any time after the giving of the direction, all the shares acquired by virtue of the payment in respect of which the deduction was made are awarded under the plan,
a further deduction is allowed under this sub-paragraph to the company which made the payment.
- (4) A deduction under sub-paragraph (3)—
- (a) is of an amount equal to the amount of the payment referred to in that sub-paragraph, and
- (b) must be made for the period of account in which sub-paragraph (3)(b) is first satisfied.
- (5) No other deduction is allowed in respect of any amount for which a deduction has been made under sub-paragraph (3).
- (6) Sub-paragraph (8) applies where—
- (a) a deduction is made under paragraph 9 (deduction for contribution to plan trust) or sub-paragraph (3) in respect of a payment for the acquisition of shares, but
- (b) shares are awarded under the plan to an individual at a time when the earnings from the required employment are not (or would not be if there were any) chargeable earnings.
- (7) In sub-paragraph (6) “required employment” and “*chargeable earnings*”, in relation to an individual, have the same meanings as they have in paragraph 4(2) (cases in which no deduction is allowed).
- (8) An amount equal to the appropriate proportion of the deduction is treated as a trading receipt of the company for the period of account in which the shares are so awarded.
- (9) For the purposes of sub-paragraph (8), the appropriate proportion of the deduction is the proportion which the number of shares awarded to the individual bears to the total number of shares acquired by virtue of the payment.
- (10) For the purposes of this paragraph, where shares are acquired by the trustees on different days, it shall be assumed that those acquired on an earlier day are awarded to employees under the plan before those acquired by the trustees on a later day.
### Withdrawal of deductions on withdrawal of approval
##### 11
- (1) If approval of a share incentive plan is withdrawn the Inland Revenue may by notice to a company direct that the benefit of—
- (a) any deductions under paragraph 2 (deduction for providing free or matching shares),
- (b) any deductions under paragraph 3 (deduction for additional expenses in providing partnership shares),
- (c) any deductions under paragraph 9 (deduction for contribution to plan trust) (in so far as not already withdrawn under paragraph 10), or
- (d) any deductions under paragraph 10(3) (further deduction where deduction under paragraph 9 withdrawn),
in relation to the plan is also withdrawn.
- (2) The effect of the direction is that the aggregate amount of the deductions is treated as a trading receipt of that company for the period of account in which the Inland Revenue give notice of the withdrawal of approval.
### Termination of plan: shares acquired as mentioned in paragraph 9 but not yet awarded
##### 12
- (1) This paragraph applies where the company has issued a plan termination notice under paragraph 89 of Schedule 2 to ITEPA 2003 (termination of plan).
- (2) In a case where—
- (a) by virtue of a payment made to the trustees by the company, the trustees acquire shares in the company, or a company which controls it,
- (b) a deduction under paragraph 9 (deduction for contribution to plan trust) has been made in respect of that payment (and has not been withdrawn under paragraph 10), and
- (c) not all the shares acquired by virtue of the payment have been awarded under the plan before issue of the plan termination notice,
an amount equal to the appropriate proportion of the deduction is treated as a trading receipt of the company for the period of account in which the plan termination notice is given.
- (3) For the purposes of sub-paragraph (2), the appropriate proportion of the deduction is the proportion which the number of shares acquired by virtue of the payment and not awarded as specified in sub-paragraph (2)(c) bears to the total number of shares so acquired.
### Application of provisions to expenses of management of companies with investment business etc
##### 13
- (1) The provisions of this Schedule apply in relation to—
- (a) companies with investment business, and
- (b) companies in relation to which section 76 applies (expenses of insurance companies),
in accordance with the following provisions.
- (2) The provisions of this Schedule which allow a deduction in calculating the profits of a trade apply—
- (a) in relation to a company with investment business, to treat amounts as expenses of management, and
- (b) in relation to companies in relation to which section 76 applies, to treat amounts as expenses payable falling to be brought into account at Step 1 in section 76(7).
- (3) Paragraph 11(2) applies as if the reference to a trading receipt for the period of account in which the Inland Revenue give notice of the withdrawal of approval were a reference to profits or gains chargeable to tax under Case VI of Schedule D arising when the Inland Revenue give notice of the withdrawal.
## SCHEDULE 4A
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 1
This Schedule enables an individual (“*the taxpayer*”) to make a claim (an “*averaging claim*”) if his profits from a qualifying trade, profession or vocation (his “*relevant profits*”) fluctuate from one tax year to the next.
##### 2
- (1) A trade, profession or vocation is a “*qualifying trade, profession or vocation*” if the taxpayer’s profits from it—
- (a) are derived wholly or mainly from qualifying creative works, and
- (b) are chargeable to tax under Case I or II of Schedule D.
- (2) In sub-paragraph (1) “*qualifying creative works*” means—
- (a) literary, dramatic, musical or artistic works, or
- (b) designs,
created by the taxpayer personally or, where the trade, profession or vocation is carried on by the taxpayer in partnership, by one or more of the partners personally.
##### 3
- (1) An averaging claim may be made if the taxpayer has been carrying on the qualifying trade, profession or vocation in two consecutive tax years and either—
- (a) his relevant profits for one of the tax years are less than 75% of his relevant profits for the other, or
- (b) his relevant profits for one (but not both) of the tax years are nil.
- (2) For the purposes of paragraph 4 (years in respect of which averaging claim may be made) an averaging claim relates to both of the years involved.
##### 4
- (1) An averaging claim may not be made in relation to a tax year if an averaging claim in respect of the same qualifying trade, profession or vocation has already been made in relation to a later tax year.
- (2) An averaging claim may not be made in relation to a tax year in which—
- (a) the taxpayer starts, or permanently ceases, to carry on the trade, profession or vocation, or
- (b) the trade, profession or vocation begins or ceases to be a qualifying trade, profession or vocation.
- (3) An averaging claim may be made in relation to a tax year which was the later year on a previous averaging claim.
##### 5
An averaging claim must be made not later than twelve months after the 31st January next following the end of the later of the tax years to which it relates.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 6
- (1) Where the taxpayer is entitled to make, and makes, an averaging claim, the amount taken to be his profits from the qualifying trade, profession or vocation for each of the tax years to which the claim relates is adjusted in accordance with this paragraph.
- (2) If—
- (a) the taxpayer’s relevant profits for one of the years amount to 70% or less of his relevant profits for the other year, or
- (b) the taxpayer’s relevant profits for one (but not both) of the years are nil,
the amount of the adjusted profits for each of the years to which the claim relates is the average of the relevant profits for the two years.
- (3) If the taxpayer’s relevant profits for one of the years amount to more than 70%, but less than 75%, of his relevant profits for the other year, the amount of the profits in each of the years is calculated as follows, so as to reduce the variation between them.
*Step 1*
The amount of the adjustment is given by the formula—
$$(D×3)-(P×0.75)$where—D is the difference between the taxpayer’s relevant profits for the two tax years, andP is the taxpayer’s relevant profits for the year in which those profits are higher.$
*Step 2*
Add the amount of the adjustment to the taxpayer’s relevant profits for the year in which those profits are lower.
The result is the amount of the adjusted profits for that year.
*Step 3*
Subtract the amount of the adjustment from the taxpayer’s relevant profits for the year in which those profits are higher.
The result is the amount of the adjusted profits for that year
- (4) Subject to the following provisions of this Schedule, the adjusted profits are taken to be the taxpayer’s relevant profits for the years to which the claim relates for all the purposes of the Income Tax Acts, including the further application of this Schedule.
##### 7
- (1) An averaging claim relating to two tax years (“*the earlier year*” and “*the later year*”) is given effect in the later year.
- (2) In so far as the claim involves an adjustment to the profits for the earlier year it is treated as a claim for the amount of the difference between—
- (a) the amount in which the taxpayer is chargeable to tax for the earlier year (“*amount A*”), and
- (b) the amount in which he would be so chargeable if effect were given to the adjustment in that year (“*amount B*”).
- (3) That claim is given effect in the later year by increasing the amount referred to in section 59B(1)(b) of the Management Act (aggregate amount of payments on account made by the taxpayer) or, as the case may require, by increasing the amount of tax payable.
- (4) Where effect falls to be given to two or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the other claim or claims in relation to the earlier year.
- (5) Where this paragraph applies twice in relation to the same tax year, the increase or reduction in the amount of tax payable for that year as a result of the earlier application shall be disregarded in determining amounts A and B above for the purposes of the later application.
##### 8
- (1) A claim by the taxpayer for relief under any other provision of the Income Tax Acts for either of the years to which an averaging claim relates (“*the other claim*”)—
- (a) is not out of time if made on or before the last date on which the averaging claim could have been made, and
- (b) if already made, may be amended or revoked on or before that date.
- (2) If the other claim is made by being included in a return, the reference in sub-paragraph (1)(b) to amending or revoking the claim shall be read as a reference to amending the return by amending or omitting the claim.
##### 9
- (1) This paragraph applies where—
- (a) the taxpayer makes or amends a claim for relief under any other provision of the Income Tax Acts for either of the years to which an averaging claim relates, and
- (b) the making or amendment of the claim would be out of time but for paragraph 8.
- (2) The claim or amendment is given effect in the later year.
- (3) In so far as the claim or amendment relates to income of the earlier year, the amount claimed, or (as the case may be) the increase or reduction in the amount claimed, shall be equal to the difference between—
- (a) the amount in which the taxpayer is chargeable to tax for the earlier year (“*amount A*”), and
- (b) the amount in which he would be so chargeable on the assumption that effect could be, and was, given to the claim or amendment in relation to that year (“*amount B*”).
- (4) That claim or amendment is given effect in the later year by increasing the amount referred to in section 59B(1)(b) of the Management Act (aggregate amount of payments on account made by the taxpayer) or, as the case may require, by increasing the amount of tax payable.
- (5) Where effect falls to be given to two or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the other claim or claims in relation to the earlier year.
- (6) In this paragraph “*amend*” includes revoke and “*amendment*” has a corresponding meaning.
##### 10
- (1) If after the taxpayer has made an averaging claim, his relevant profits in either or both of the tax years to which the claim relates are adjusted for some other reason—
- (a) the averaging claim shall be disregarded, and
- (b) a further averaging claim may be made in relation to the taxpayer’s relevant profits as adjusted.
- (2) A further averaging claim is not out of time provided it is made not later than twelve months after the 31st January next following the tax year in which the adjustment for the other reason is made.
##### 11
- (1) References in this Schedule to the taxpayer’s profits from a qualifying trade, profession or vocation are to profits before making deductions for losses sustained in any tax year.
- (2) If the taxpayer sustains a loss in the qualifying trade, profession or vocation in any tax year, the profits of that year for the purposes of this Schedule are nil.
This shall not be read as preventing the taxpayer from obtaining relief under the Income Tax Acts for a loss sustained by him in that or any other tax year.
##### 12
In this Schedule any reference to the amount in which a person is chargeable to tax is a reference to the amount in which he is so chargeable after taking into account any relief or allowance for which a claim is made.
##### 13
- (1) In this Schedule any reference to a claim includes a reference to an election or notice.
- (2) For the purposes of this Schedule, two or more claims made by the same person are associated with each other if each of them is any of the following—
- (a) a claim to which this Schedule applies, or
- (b) a claim to which Schedule 1B to the Management Act applies (other claims involving more than one year to be given effect in later year),
and the same tax year is the earlier year in relation to each of those claims.
- (3) In sub-paragraph (2)—
- (a) the reference to a claim to which this Schedule applies includes amendments and revocations to which paragraph 9 above applies;
- (b) the reference to a claim to which Schedule 1B to the Management Act applies includes amendments and revocations to which paragraph 4 of that Schedule applies.
##### 14
In this Schedule a “*tax year*” means a year of assessment.
## SCHEDULE 5AA
### Charge to tax etc.
##### 1
- (1) Subject to sub-paragraph (2) below, profits and gains arising from a transaction to which this Schedule applies (including those which, apart from this sub-paragraph, would be taken to be of a capital nature) shall be treated, when realised—
- (a) as income of the person by whom they are realised; and
- (b) as chargeable to tax under Case VI of Schedule D for the chargeable period in which they are realised.
- (2) Sub-paragraph (1) above does not apply to—
- (a) so much of any profits or gains arising to a person from a transaction as are charged to tax in his case under Case I or V of Schedule D;
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) For the purposes of this Schedule the profits and gains arising from a transaction to which this Schedule applies are to be taken to be realised at the time when the disposal comprised in the transaction takes place.
- (5) For the purposes of sections 392 . . . any loss in a transaction to which this Schedule applies is to be taken to be sustained at the time when, in accordance with sub-paragraph (4) above, any profits or gains arising from that transaction would have been realised.
- (6) Subject to sub-paragraph (7) below, the following, namely—
- (a) profits and gains to which sub-paragraph (1) above applies, and
- (b) losses in transactions the profits and gains from which (if there were any) would be profits and gains to which that sub-paragraph applies,
shall not be brought into account for the purposes of income tax . . . or capital gains tax except by virtue of this Schedule and, in the case of losses, section 392 . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Transactions to which Schedule applies
##### 2
- (1) This Schedule applies to a transaction if—
- (a) it is a disposal of futures or options;
- (b) it is one of two or more related transactions designed to produce a guaranteed return; and
- (c) the guaranteed return comprises the return from that disposal or from a number of disposals of futures or options, of which that disposal is one, taken together.
- (2) For the purposes of this Schedule two or more related transactions are transactions designed to produce a guaranteed return if, taking the transactions together, it would be reasonable to assume, from either or both of—
- (a) the likely effect of the transactions, and
- (b) the circumstances in which the transactions are entered into, or in which any of them is entered into,
that their main purpose, or one of their main purposes, is or was the production of a guaranteed return from one or more disposals of futures or options.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Production of guaranteed return
##### 3
- (1) For the purposes of this Schedule a guaranteed return is produced from one or more disposals of futures or options wherever (taking all the disposals together where there is more than one) risks from fluctuations in the underlying subject matter are so eliminated or reduced as to produce a return from the disposal or disposals—
- (a) the amount of which is not, to any significant extent, attributable (otherwise than incidentally) to any such fluctuations; and
- (b) which equates, in substance, to the return on an investment of money at interest.
- (2) For the purposes of sub-paragraph (1) above the cases where risks from fluctuations in the underlying subject matter are eliminated or reduced shall be deemed to include any case where the main reason, or one of the main reasons, for the choice of that subject matter is—
- (a) that there appears to be no risk that it will fluctuate; or
- (b) that the risk that it will fluctuate appears to be insignificant.
- (3) In this paragraph the references, in relation to a disposal of futures or options, to the underlying subject matter are references to or to the value of the commodities, currencies, shares, stock or securities, interest rates, indices or other matters to which, or to the value of which, those futures or options are referable.
### Disposals of futures or options
##### 4
- (1) For the purposes of this Schedule a disposal is a disposal of futures or options if it consists in—
- (a) the disposal of one or more futures;
- (b) the disposal of one or more options; or
- (c) the disposal of one or more futures together with one or more options.
- (2) Subject to sub-paragraph (4) below, any question for the purposes of this Schedule as to whether there is a disposal falling within sub-paragraph (1)(a) to (c) above, or as to when such a disposal is made, shall be determined, on the assumptions specified in sub-paragraph (3) below, in accordance with—
- (a) section 143(5) and (6), 144 and 144A of the 1992 Act (closing out and settlement of futures contracts and rules in relation to options); and
- (b) the other provisions having effect for determining for the purposes of that Act whether or when an asset is disposed of;
and references in this Schedule to entering into a transaction are references, in relation to a transaction consisting in a disposal, to the making of the disposal.
- (3) Those assumptions are—
- (a) that all futures are assets for the purposes of the 1992 Act;
- (b) that the words “*in the course of dealing in commodity or financial futures*” are omitted in each place where they occur in section 143(5) and (6) of that Act; and
- (c) that any reference in that Act to a financial option within the meaning given by section 144(8) of that Act is a reference to any option that is not a traded option.
- (4) Subject to sub-paragraph (5) below, where—
- (a) one of a number of related transactions designed to produce a guaranteed return is the grant of an option,
- (b) at least one of the other transactions is a transaction entered into after the grant of the option, and
- (c) the transaction or transactions entered into after the grant of the option is or include a disposal which is not itself the grant of an option,
the disposal consisting in the grant of the option shall be deemed for the purposes of this Schedule to be a disposal made on the first occasion after the grant of the option when one of the other transactions which is a disposal but is not itself the grant of an option is entered into.
- (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) Nothing in sub-paragraph (4) above affects so much of sub-paragraph (2) above as (by applying section 144(2) or 144A(2) of the 1992 Act (cases where options are exercised))—
- (a) requires the grant of an option and the transaction entered into by the grantor in fulfilment of his obligations under that option to be treated for the purposes of this Schedule as a single transaction; or
- (b) determines the time at which such a single transaction is to be treated for the purposes of this Schedule as entered into.
- (6) In this paragraph—
- “*future*” means outstanding rights and obligations under a commodity or financial futures contract;
- “*option*” means a traded option or an option which is not a traded option but is an option relating to—currency, shares, stock, securities or an interest rate; orrights under a commodity or financial futures contract;and includes any liability or entitlement under an option.
- “*traded option*” has the meaning given for the purposes of subsection (4) of section 144 of the 1992 Act by subsection (8) of that section.
### Futures running to delivery and options exercised
##### 4A
- (1) This paragraph applies where for the purposes of this Schedule—
- (a) there are or, apart from section 144(2) or (3) of the 1992 Act, would be two or more related transactions;
- (b) one of those transactions is or would be the creation or acquisition (by the making or receiving of a grant or otherwise) of a future or option;
- (c) the other transaction, or one of the other transactions, is or would be the running of the future to delivery or the exercise of the option; and
- (d) the transaction mentioned in paragraph (c) above is not treated for those purposes as a disposal of a future or option.
- (2) This Schedule shall have effect in relation to the parties to the future or option as if the transaction specified in sub-paragraph (3) below—
- (a) were a transaction for which the scheme or arrangements by reference to which the transactions are related transactions provided; and
- (b) were a transaction which in fact takes place at the time (“the relevant time") immediately before the future runs to delivery or, as the case may be, the option is exercised.
- (3) That transaction is a disposal of the future or option which—
- (a) in the case of a person whose rights and entitlements under the future or option have a market value at the relevant time, consists in a disposal for a consideration equal to that market value; and
- (b) in the case of any other party to the future or option, consists in a disposal which—
- (i) is made for a nil consideration; and
- (ii) involves that person in incurring costs equal to the amount specified in sub-paragraph (4) below.
- (4) That amount is the amount which that party to the future or option might reasonably have been expected to pay, in a transaction at arm’s length entered into at the relevant time, for the release of his obligations and liabilities under the future or option.
- (5) Where, in a case in which a transaction is deemed to take place by virtue of sub-paragraph (2)(b) above (“the deemed transaction")—
- (a) any profits or gains arising from the deemed transaction are chargeable to tax under Case VI of Schedule D in accordance with paragraph 1(1) above, or
- (b) any loss arising in the deemed transaction is brought into account for the purposes of section 392 . . . in accordance with paragraph 1(5) above,
amounts taken into account or allowable as deductions in computing those profits or gains, or that loss, shall not be excluded by virtue of section 37 or 39 of the 1992 Act (exclusion of amounts taken into account or allowable for the purposes of the taxation of income and profits) from any computation made for the purposes of that Act, but paragraph 1(6) above shall be given effect to in relation to the 1992 Act in accordance with sub-paragraphs (6) to (10) below.
- (6) Where there are profits or gains arising to any person (“the taxpayer") from the deemed transaction, an increase equal to the amount of those profits or gains shall be made in the amount that would otherwise be taken for the purposes of the 1992 Act to be—
- (a) the amount of the consideration for the acquisition of any asset acquired by the taxpayer by means of the future running to delivery or, as the case may be, by the exercise of the option; or
- (b) the amount of the consideration for the acquisition by him of any asset disposed of by him by means of the future running to delivery or, as the case may be, in consequence of the exercise of the option;
but any increase made by virtue of paragraph (b) above in the amount of any consideration shall be disregarded in computing the amount of any indexation allowance.
- (7) Where there is a loss for any person (“the taxpayer") in the deemed transaction—
- (a) a reduction equal to the smaller of the amount of the loss and the amount to be reduced shall be made in the amount that would otherwise be taken for the purposes of the 1992 Act to be the amount of the consideration mentioned in sub-paragraph (6)(a) or (b) above; and
- (b) the amount (if any) by which the amount of the loss exceeds the amount to be reduced shall be deemed to be a chargeable gain accruing to the taxpayer on the occasion specified in sub-paragraph (8) below.
- (8) That occasion is—
- (a) in a case where the consideration mentioned in paragraph (a) of sub-paragraph (6) above has been reduced to nil, the first occasion after the acquisition mentioned in that paragraph when there is a disposal of the asset in question; and
- (b) in a case where it is the consideration mentioned in sub-paragraph (6)(b) above that has been reduced to nil, the occasion of the disposal made by the taxpayer by means of the future running to delivery or, as the case may be, in consequence of the exercise of the option.
- (9) For the purposes of sub-paragraphs (6) and (7) above, where in any case there is a deemed disposal of an option by the person who granted it, any determination—
- (a) of the profits arising to the grantor of the option from that disposal, or
- (b) of the losses for the grantor in that disposal,
shall be made as if that disposal and the disposal by which the option was granted were a single transaction.
- (10) In sub-paragraph (8) above—
- (a) the reference in paragraph (a) to a disposal of the asset in question includes a reference to anything that would be such a disposal but for the provisions of section 116(10) or 127 of the 1992 Act; and
- (b) the references in each of paragraphs (a) and (b) to a disposal include references to a disposal which, in accordance with the 1992 Act, would (apart from sub-paragraph (7)(b) above) be a disposal on which neither a gain nor a loss accrues.
- (10A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (11) In this paragraph—
- “*future*” and “*option*” have the same meanings as in paragraph 4 above;
- “*market value*” has the same meaning as in the 1992 Act;
- “*party*”, in relation to a future or option, means one of the persons who has any right or entitlement comprised in or arising under the future or option or who is subject to any obligation or liability so comprised or arising;
and references in this paragraph to a future running to delivery are references to the discharge by performance of the obligations owed under the commodity or financial futures contract in question to the party to the future whose rights are in relation to its underlying subject matter.
- (12) Sub-paragraph (3) of paragraph 3 above applies for the purposes of sub-paragraph (11) above as it applies for the purposes of that paragraph.
### The return from one or more disposals
##### 5
- (1) In this Schedule references to the return from one or more disposals are references to the return on investment represented either—
- (a) by the total net profits and gains arising from the disposal or disposals; or
- (b) by all but an insignificant part of those net profits and gains.
- (2) For the purposes of the references in sub-paragraph (1) above to the total net profits and gains from any two or more disposals, it shall be assumed that profits and gains realised, and losses sustained, by persons who are associated with each other are all realised or sustained by the same person.
- (3) For the purposes of sub-paragraph (2) above persons are associated with each other in relation to any two or more disposals made in pursuance of the same scheme or arrangements if—
- (a) each of those persons shares or is to share, to an extent determined for the purposes of or in accordance with the scheme or arrangements, in the net return represented by the aggregate of all the profits, gains and losses realised or sustained on those disposals;
- (b) those persons are associated companies at the time when the last of those disposals is made; or
- (c) those persons have been associated companies at an earlier time falling after the first occasion on which a transaction was entered into in pursuance of the scheme or arrangements.
- (4) In this paragraph—
- “*associated company*” shall be construed in accordance with section 416; and
- “*scheme or arrangements*” shall be construed in accordance with paragraph 6(4) below.
### Related transactions
##### 6
- (1) For the purposes of this Schedule two or more transactions are related if all of them are entered into in pursuance of the same scheme or arrangements.
- (2) Nothing in this Schedule shall be construed as preventing transactions with different parties, or transactions with parties different from the parties to the scheme or arrangements in pursuance of which they are entered into, from being related transactions.
- (3) For the purposes of this paragraph the cases in which any two or more transactions are to be taken to be entered into in pursuance of the same scheme or arrangements shall include any case in which it would be reasonable to assume, from either or both of—
- (a) the likely effect of the transactions, and
- (b) the circumstances in which the transactions are entered into, or in which any of them is entered into,
that neither of them or, as the case may be, none of them would have been entered into independently of the other or others.
- (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) In this paragraph “*scheme or arrangements*” includes schemes, arrangements and understandings of any kind, whether or not legally enforceable.
### Special rule for trusts
##### 7
- (1) Where any profits or gains are treated, in accordance with paragraph 1 above, as income arising to trustees for any year of assessment, the relevant part of that income shall be treated for the purposes of the Tax Acts as if it were income to which section 686 applies (income taxable at the rate applicable to trusts).
- (2) In sub-paragraph (1) above the reference to the relevant part of any income is a reference to so much (if any) of that income as—
- (a) does not fall to be treated for the purposes of the Income Tax Acts as income of a settlor;
- (b) is not income arising under a trust established for charitable purposes; and
- (c) is not income from investments, deposits or other property held for any such purposes as are mentioned in sub-paragraph (i) or (ii) of section 686(2)(c) (property held for pension purposes).
- (3) Subsection (6) of section 686 (meaning of “*trustees*” etc.) shall apply for the purposes of this paragraph as it applies for the purposes of that section.
### Transfer of assets abroad
##### 8
For the purpose of determining whether an individual ordinarily resident in the United Kingdom has a liability for income tax in respect of any profit or gain which—
- (a) is realised by a person resident or domiciled outside the United Kingdom, and
- (b) arises from a transaction to which this Schedule applies,
sections 739 and 740 (transfer of assets abroad) shall have effect as if that profit or gain, when realised, constituted income becoming payable to the person resident or domiciled outside the United Kingdom.
### Apportionment in the case of insurance companies
##### 9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## SCHEDULE 5A
### Introductory
##### 1
- (1) In this Schedule—
- (a) “*approved stock lending arrangement*” means an arrangement such as is mentioned in subsection (1), (2) or (2A) of section 129 and in relation to which that section and section 271(9) of the 1992 Act apply;
- (b) “*the borrower*”, in relation to such an arrangement, means the person to whom the securities are transferred under the arrangement; and
- (c) “*the lender*” means the person making that transfer and to whom, in return, securities of the same kind and amount are to be transferred.
- (2) References in this Schedule to the borrower or lender under an approved stock lending arrangement include any person acting as the nominee of the borrower or lender.
### Treatment of interest earned on cash collateral
##### 2
- (1) This paragraph applies where in connection with an approved stock lending arrangement—
- (a) the borrower pays to the lender an amount (“cash collateral”) by way of security for the performance of the obligation to transfer to the lender securities of the same kind and amount as those transferred by him;
- (b) interest is earned by the lender on the whole of the cash collateral in respect of the period for which he holds it, and is paid to him without deduction of tax; and
- (c) the lender pays to the borrower an amount (“rebate interest”) equal to the amount of interest earned by him on the cash collateral.
- (2) Where this paragraph applies—
- (a) the interest earned by the lender on the cash collateral shall be treated for all purposes of the Tax Acts as the income of the borrower and not as the income of the lender;
- (b) the lender shall not be required to deduct from the payment of rebate interest any sum representing income tax thereon;
- (c) no relief shall be given to the lender in respect of the payment under any provision of the Tax Acts; and
- (d) the rebate interest shall not be regarded as the income of the borrower.
- (3) This paragraph does not apply unless the amount of the rebate interest is identified as such by the parties separately from any fee or other amount payable in connection with the arrangement.
### Application of paragraph 2 in case of chain of arrangements
##### 3
- (1) Where the lender under one or more approved stock lending arrangements (“the lending arrangements”) is also the borrower under one or more other such arrangements (“the borrowing arrangements”) entered into to enable him to fulfil his obligations under the former arrangements, the interest which by virtue of paragraph 2(2)(a) above as it applies in relation to the borrowing arrangements is treated as his (the “attributed interest”) shall be treated for the purposes of that paragraph as it applies in relation to the lending arrangements as interest earned by him on the cash collateral provided under those arrangements, as follows.
- (2) Where the aggregate amount of the cash collateral provided under the borrowing arrangements equals that provided under the lending arrangements, the whole of the attributed interest shall be so treated.
- (3) Where the aggregate amount of the cash collateral provided under the borrowing arrangements exceeds that provided under the lending arrangements, a part of the attributed interest shall be so treated.
- (4) Where the aggregate amount of the cash collateral provided under the borrowing arrangements is less than that provided under the lending arrangements, the attributed interest shall be treated as earned by him on a part of the cash collateral provided under the lending arrangements.
### Interpretation
##### 4
In this Schedule—
- “*relief*” means relief by way of—deduction in computing profits or gains, ordeduction or set off against income or total profits; and
- “*securities*” includes stocks and shares.
## Schedule 6A
## Part I — Basic Case
### Cash equivalent
##### 1
- (1) This paragraph applies where the van mentioned in section 159AA(1)—
- (a) is not a van to which Part II of this Schedule applies for the year concerned, or
- (b) is a van to which that Part applies for the year concerned but is a shared van (within the meaning there given) for part only of the year.
- (2) Subject to paragraphs 2 and 3 below, the cash equivalent of the benefit is—
- (a) £500, if the van is aged less than 4 years at the end of the year concerned;
- (b) £350, if the van is aged 4 years or more at the end of the year concerned.
### Reductions for periods where van unavailable
##### 2
- (1) Subject to paragraph 3 below, where paragraph 1 above applies and for any part of the year concerned—
- (a) the van is unavailable, or
- (b) the van is a shared van (within the meaning given by Part II of this Schedule),
the cash equivalent of the benefit is the amount ascertained under paragraph 1 above (the full amount) reduced by an amount which bears to the full amount the same proportion as the number of excluded days in the year bears to 365.
- (2) For the purposes of sub-paragraph (1) above a van is to be treated as being unavailable on any day if—
- (a) the day falls before the first day on which the van is available to the employee,
- (b) the day falls after the last day on which the van is available to the employee, or
- (c) the day falls within a period, of 30 days or more, throughout which the van is not available to the employee.
- (3) For the purposes of sub-paragraph (1) above an excluded day is a day on which the van falls within paragraph (a) or (b) of that sub-paragraph.
### Reduction for payments for use of van
##### 3
- (1) Where paragraph 1 above applies and in the year concerned the employee is required, as a condition of the van being available for his private use, to pay any amount of money (whether by way of deduction from his emoluments or otherwise) for that use, then—
- (a) if the amount ascertained under paragraphs 1 and 2 above exceeds the relevant sum, the cash equivalent of the benefit is an amount equal to the excess;
- (b) if the relevant sum exceeds or is equal to the amount ascertained under paragraphs 1 and 2 above, the cash equivalent of the benefit is nil.
- (2) In sub-paragraph (1) above—
- (a) “*the relevant sum*” means the amount paid by the employee, as there mentioned, in respect of the year concerned, and
- (b) the reference to the van being available for the employee’s private use includes a reference to the van being available for the private use of others being members of his family or household.
- (3) If the van is a shared van (within the meaning given by Part II of this Schedule) for part of the year concerned, the reference in sub-paragraph (2) above to the year shall be construed as a reference to the part of the year when the van is not a shared van.
## Part II — SHARED VANS
### Introduction
##### 4
- (1) This Part of this Schedule applies to a van for a year if it is a shared van for any period in the year.
- (2) A van is a shared van for a period if the period is one throughout which the van is available concurrently to more than one employee of the same employer.
- (3) A van is also a shared van for a period if—
- (a) the period is one throughout which the van is available to different employees of the same employer, but
- (b) the circumstances are such that the employee or employees to whom the van is available at any given time in the period are not necessarily the same as the employee or employees to whom it is available at any other given time in the period.
- (4) But if the van is available to one employee only for a period exceeding 30 days (an exclusive period)—
- (a) the exclusive period shall not count towards any period that would otherwise fall within sub-paragraph (3) above;
- (b) any period falling within sub-paragraph (3) above shall be treated as ending when the exclusive period begins (without prejudice to the start after the exclusive period of a further period falling within sub-paragraph (3) above).
- (5) If a van would (apart from this sub-paragraph) be treated as shared during part of a day it shall be treated as shared throughout the day.
### Benefit to employee
##### 5
- (1) This paragraph applies where for any year this Part of this Schedule—
- (a) applies to a van, or
- (b) applies to each of two or more vans made available by the same employer.
- (2) For the purposes of this paragraph a participating employee is an employee to whom—
- (a) the van is available for his private use while it is a shared van (where only one van is involved),
- (b) one of the vans is available for his private use while it is a shared van (where more than one van is involved), or
- (c) some or all of the vans are available for his private use while they are shared vans (where more than one van is involved);
but an employee is not a participating employee unless he makes private use of the van, or (if more than one is involved) he makes private use of at least one of them, at least once while it is a shared van.
- (3) In sub-paragraph (2) above—
- (a) any reference to a van being available for an employee’s private use includes a reference to the van being available for the private use of others being members of his family or household, and
- (b) any reference to an employee making private use of a van includes a reference to a member of his family or household making private use of it.
- (4) This paragraph shall apply to each participating employee in the same way, irrespective of—
- (a) the number available to a particular employee of the vans involved;
- (b) the fact that a particular van involved is or is not available to him or used by him;
- (c) the extent to which a particular van involved is available to him or used by him.
- (5) Where this paragraph applies—
- (a) find the basic value of the van for the year or (as the case may be) the basic value for the year of each van involved;
- (b) take that basic value or (as the case may be) the aggregate of those basic values;
- (c) find for each participating employee a portion of the figure taken under paragraph (b) above by dividing it equally among the participating employees.
- (6) The figure found for a participating employee shall be taken to be the cash equivalent of the benefit to him in the year of—
- (a) the van available to him while it is a shared van (where only one van is involved or only one of the vans involved is available to him), or
- (b) the vans available to him while they are shared vans (where more than one van is involved and more than one of them is available to him).
### Basic value
##### 6
- (1) Subject to sub-paragraph (2) below, the basic value of a van for a year is—
- (a) £500, if the van is aged less than 4 years at the end of the year concerned;
- (b) £350, if the van is aged 4 years or more at the end of the year concerned.
- (2) Where for any part of the year—
- (a) the van is not a shared van, or
- (b) the van is incapable of use,
its basic value is the amount ascertained under sub-paragraph (1) above (the full value) reduced by an amount which bears to the full value the same proportion as the number of excluded days in the year bears to 365.
- (3) For the purposes of sub-paragraph (2) above a van is to be treated as being incapable of use on any day if the day falls within a period, of 30 days or more, throughout which the van is incapable of being used at all.
- (4) For the purposes of sub-paragraph (2) above an excluded day is a day on which the van falls within paragraph (a) or (b) of that sub-paragraph.
### Limit of benefit
##### 7
Where (apart from this paragraph) the figure found under paragraph 5 above for a participating employee for a year would exceed £500, the figure for the employee for the year shall be taken to be £500.
### Alternative calculation
##### 8
- (1) In a case where—
- (a) a figure is found under paragraph 5 or 7 above for a participating employee for a year, and
- (b) the employee makes a claim for this paragraph to be applied,
the figure found for the employee for the year shall be taken to be the alternative figure found under this paragraph.
- (2) The alternative figure is a figure found by—
- (a) taking for each van involved the number of relevant days;
- (b) aggregating the numbers found under paragraph (a) above where more than one van is involved;
- (c) multiplying the number found under paragraph (a) (or paragraphs (a) and (b)) above by £5.
- (3) For the purposes of sub-paragraph (2)(a) above a relevant day is a day which falls in the year and during which (or part of which) the employee, or a member of his family or household, makes private use of the van concerned while it is a shared van.
- (4) For the purposes of section 95 of the Taxes Management Act 1970 (incorrect return etc.) a claim under this paragraph shall be taken to be a claim for relief.
### Reduction for payments for use
##### 9
- (1) Where this Part of this Schedule applies and in the year concerned a participating employee is required, as a condition of the van or vans being available for his private use, to pay any amount of money (whether by way of deduction from his emoluments or otherwise) for that use, then—
- (a) if the figure found for the employee for the year under paragraph 5 or 7 or 8 above exceeds the relevant sum, the figure shall be taken to be a figure equal to the excess;
- (b) if the relevant sum exceeds or is equal to the figure found for the employee for the year under paragraph 5 or 7 or 8 above, the figure shall be taken to be nil.
- (2) For the purposes of this paragraph the relevant sum shall be found by—
- (a) taking for any van involved the amount paid by the employee, as a condition of it being available for his private use, in respect of the period when the van is a shared van in the year concerned, and
- (b) where more than one van is involved, aggregating the amounts found under paragraph (a) above.
- (3) Any reference in this paragraph to a van being available for the employee’s private use includes a reference to the van being available for the private use of others being members of his family or household.
## Part III — GENERAL
### Interaction of Parts I and II
##### 10
- (1) This paragraph applies where—
- (a) a cash equivalent of the benefit of a van to an employee in a year is found under Part I of this Schedule, and
- (b) a cash equivalent of the benefit of the same van (or of vans including the same van) to the employee in the year is found under Part II of this Schedule.
- (2) Once the different cash equivalents are so found, the employee shall be charged to tax as if the van concerned were different vans, one having a cash equivalent found under Part I of this Schedule and the other having (or counting towards) a cash equivalent found under Part II of this Schedule.
### Limit of cash equivalent
##### 11
In a case where—
- (a) the cash equivalent of the benefit of vans to an employee in a year would (apart from this paragraph) total more than £500, and
- (b) no more than one of the vans is available to him for his private use, or the private use of others being members of his family or household, at any one time in the year,
the cash equivalent of the benefit of the vans to him in the year shall be £500.
### Interpretation
##### 12
For the purposes of this Schedule a van is available to an employee at a particular time if it is then made available, by reason of his employment and without any transfer of the property in it, either to him or to others being members of his family or household.
### Apportionment of cash equivalent in case of joint loan etc.
##### 5A
- (1) Where in any year there are two or more employees chargeable to tax in respect of the same loan—
- (a) the cash equivalent of the benefit of the loan (determined in accordance with this Schedule) shall be apportioned between them in a fair and reasonable manner, and
- (b) the portion allocated to each employee shall be treated as the cash equivalent of the benefit of the loan so far as he is concerned.
- (2) For the purposes of determining the cash equivalent in such a case, the references in paragraph 5 above to the employee shall be construed as references to all the chargeable employees.
##### 13
This Part of this Schedule is subject to the provisions of Part IV below.
## PART IV — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 14
This Part of this Schedule applies in relation to the employee for any year for which he is, or, apart from paragraph 7, 8 or 9 above as they apply in relation to home loans, would be, liable to income tax at a rate higher than basic rate or to tax chargeable in respect of excess liability.
##### 15
Where this Part of this Schedule applies in relation to the employee for any year, none of paragraphs 7, 8 and 9 above shall apply in his case in relation to any home loan in that year, except as provided by paragraph 17 below.
##### 16
- (1) Where, by virtue only of paragraph 15 above, paragraph 7, 8 or 9 above does not apply in the case of the employee in relation to a home loan in any year, there shall be treated as interest eligible for relief under section 353 by virtue of section 355(1)(a) in that year—
- (a) in a case where, apart from paragraph 15 above, paragraph 7 would have applied in relation to the home loan, an amount equal to the cash equivalent of the benefit of that loan in that year, apart from paragraph 7, or
- (b) in a case where, apart from paragraph 15 above, paragraph 8 or 9 would have applied in relation to the home loan, an amount equal to the difference between—
- (i) the cash equivalent of the benefit of the home loan in that year, apart from paragraphs 8 and 9, and
- (ii) what the cash equivalent of the benefit of the home loan would have been in that year, apart from paragraph 15 above,
but subject to the following provisions of this paragraph.
- (2) In the application of section 353 by virtue of this paragraph—
- (a) the amount that falls to be treated as mentioned in sub-paragraph (1) above shall be taken to fall within paragraph (a) of subsection (1) of that section; and
- (b) subsections (2) and (3) of that section shall be disregarded in relation to that amount.
##### 17
Paragraph 15 above shall not prevent paragraph 7, 8 or 9 applying in the case of the employee in any year if, apart from paragraph 15—
- (a) he would not have been charged for that year to income tax at any rate higher than basic rate in respect of any of his total income or to tax in respect of excess liability; and
- (b) the aggregate of the following amounts, that is to say—
- (i) the amount of income in respect of which, apart from any home loans, he would have been charged to income tax for that year at the basic rate,
- (ii) any income which is treated by virtue of section 683(1) or 684(1) as his income for that year for the purposes of excess liability, notwithstanding that he would not have been charged to tax otherwise than at the basic rate,
- (iii) the cash equivalents, apart from paragraphs 7, 8 and 9 above, of the benefit of any home loans in that year, and
- (iv) his nominal element (if any) for that year, reduced by an amount equal to the cash equivalents, apart from paragraph 15 above, of the benefit of any home loans in that year,
does not exceed the basic rate limit by more than the amount specified in section 161(1) for that year.
##### 18
If, in the case of the employee, there is a home loan in any year and that is a year for which—
- (a) he is liable to income tax at a rate higher than basic rate or to tax chargeable in respect of excess liability (whether or not by virtue of this Part of this Schedule), but
- (b) he would not have been so liable apart from any home loans, and
- (c) there is in his case a nominal element,
then, in computing his liability to income tax for that year, the amount which falls to be treated as emoluments under section 160(1) in consequence of the operation of paragraph 15 above (or, if more than one, the aggregate of those amounts) shall be taken to be the highest part of the income charged to tax, and an amount equal to the nominal element shall be taken to be the lowest portion of that part.
## PART V — . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 19
- (1) In this Schedule—
- “*eligible for relief*” shall be construed in accordance with sub-paragraph (2) below;
- “*eligible loan*” means—
- (a) any loan the interest on which is eligible for relief, other than a home loan; and
- (b) in a case where part of the interest on a loan is eligible for relief otherwise than by virtue of section 355(1)(a), 356(1) or 365, that proportion of the loan which that part of the interest bears to the whole of the interest;
and in determining for the purposes of this definition whether the whole or any part of the interest on a loan is so eligible for relief, it shall be assumed that interest at a uniform rate is paid on the loan, whether or not that is in fact the case;
- “*excess liability*” means liability to income tax over what it would be if all income tax not chargeable at the lower rateby virtue of section 1(2)(aa) were charged at the basic rate, or (so far as applicable in accordance with section 207A) the lower rate,, to the exclusion of any higher rate;
- “*home loan*” means—
- (a) any loan the interest on which is, or apart from section 357 would have been, eligible for relief by virtue of section 355(1)(a), 356(1) or 365; and
- (b) in a case where part of the interest on a loan is or would have been so eligible for relief, that proportion of the loan which that part of the interest bears to the whole of the interest;
and in determining for the purposes of this definition whether the whole or any part of the interest on a loan is or would have been so eligible for relief, it shall be assumed that interest at a uniform rate is paid on the loan, whether or not that is in fact the case;
- “*loan*”, except in Part I of this Schedule, shall be construed in accordance with sub-paragraphs (3) to (5) below;
- “*nominal element*”, in relation to the employee, means the amount (if any) which, apart from paragraph 15 above, would, by virtue of section 161(1), not have been charged to tax under section 160 in that year in his case.
- (2) Interest is “*eligible for relief*” for the purposes of this Schedule if it is eligible for relief under section 353 or would be eligible for such relief apart from subsection (2) of that section.
- (3) In the definitions of “*eligible loan*” and “*home loan*” in sub-paragraph (1) above, “*loan*” means any such loan as is mentioned in section 160(1), and for this purpose sub-paragraphs (4) and (5) below shall be disregarded.
- (4) Where by virtue of sub-paragraph (1) above part of a loan constitutes a home loan or an eligible loan, the loan shall be treated for the purposes of this Schedule, apart from Part I, as if it were two or more separate loans, consisting respectively—
- (a) of the part (if any) which is a home loan,
- (b) of the part (if any) which is an eligible loan, and
- (c) of the part (if any) which is neither a home loan nor an eligible loan,
and, subject to sub-paragraph (5) below, references in this Schedule, apart from Part I, to loans, home loans and eligible loans shall be construed accordingly.
- (5) Except for home loans and eligible loans, all the loans between the same lender and borrower for which a cash equivalent falls to be ascertained and which are outstanding at any time, as to any amount, in any year are to be treated for the purposes of this Schedule, apart from Part I, as a single loan.
## SCHEDULE 7A
### Introduction
##### 1
For the purposes of section 161B(1) a loan “*on ordinary commercial terms*” means a loan—
- (a) made by a person (“*the lender*”) in the ordinary course of a business carried on by him which includes—
- (i) the lending of money, or
- (ii) the supplying of goods or services on credit, and
- (b) in relation to which the requirements of paragraph 2, 3 or 4 below are met.
### Requirements relating to original loan
##### 2
- (1) This paragraph applies to any loan and the relevant time for the purposes of this paragraph is the time the loan was made.
- (2) The requirements of this paragraph are—
- (a) that at the relevant time comparable loans were available to all those who might be expected to avail themselves of the services provided by the lender in the course of his business;
- (b) that a substantial proportion of the relevant loans were made to members of the public;
- (c) that the loan in question and comparable loans generally made by the lender at or about the relevant time to members of the public are held on the same terms; and
- (d) that if those terms differ from those applicable immediately after the relevant time they were imposed in the ordinary course of the lender’s business.
- (3) For the purposes of this paragraph a loan is comparable to another loan if it is made for the same or similar purposes and on the same terms and conditions.
- (4) The relevant loans for the purposes of sub-paragraph (2)(b) are—
- (a) the loan in question, and
- (b) comparable loans made by the lender at or about the relevant time.
- (5) In determining for the purposes of this paragraph whether any loans made by any person before 1st June 1994 are made on the same terms or conditions, or held on the same terms, there shall be left out of account any amounts, by way of fees, commission or other incidental expenses, incurred for the purpose of obtaining any of those loans by the persons to whom they are made.
### Requirements relating to loan varied before 6th April 2000
##### 3
- (1) This paragraph applies to a loan that has been varied before 6th April 2000 and the relevant time for the purposes of this paragraph is the time of the variation.
- (2) The requirements of this paragraph are—
- (a) that a substantial proportion of the relevant loans were made to members of the public;
- (b) that the loan in question and relevant loans generally made by the lender at or about the relevant time to members of the public are held on the same terms; and
- (c) that if those terms differ from those applicable immediately after the relevant time they were imposed in the ordinary course of the lender’s business.
- (3) The relevant loans for the purposes of sub-paragraph (2)(a) are—
- (a) the loan in question;
- (b) any existing loans which were varied at or about the time of the variation of the loan in question so as to be held on the same terms as that loan after it was varied;
- (c) any new loans made by the lender, at or about that time, which are held on those terms.
### Requirements relating to loan varied on or after 6th April 2000
##### 4
- (1) The requirements of this paragraph apply to a loan that has been varied on or after 6th April 2000 and the relevant time for the purposes of this paragraph is the time of the variation.
- (2) The first requirement is that at the relevant time members of the public that had loans from the lender for similar purposes had a right to vary their loans on the same terms and conditions as applied in relation to the variation of the loan in question.
- (3) The second requirement is that any existing loans so varied and the loan in question as varied are held on the same terms.
- (4) The third requirement is that if those terms differ from the terms applicable immediately after the relevant time, they were imposed in the ordinary course of the lender’s business.
- (5) The fourth requirement is that a substantial proportion of the relevant loans were made to members of the public.
- (6) The relevant loans for the purposes of sub-paragraph (5) are—
- (a) the loan in question;
- (b) any existing loans which were varied at or about the time of the variation of the loan in question so as to be held on the same terms as that loan after it was varied;
- (c) any new loans made by the lender, at or about that time, which are held on those terms.
### Disregard of certain penalties, fees, etc.
##### 5
Amounts incurred by the person to whom a loan is made—
- (a) on penalties or interest or similar amounts incurred as a result of varying the loan, and
- (b) on fees, commission or other incidental expenses, incurred for the purpose of obtaining the loan,
shall be left out of account in determining for the purposes of paragraph 3 or 4 whether rights to vary loans are exercisable on the same terms and conditions or loans are held on the same terms.
### Meaning of 'member of the public’
##### 6
For the purposes of this Schedule a “*member of the public*” means a member of the public at large with whom the lender deals at arm’s length.
##### 13A
- (1) Where a scheme includes provision by virtue of paragraph 13(4) or (5) above the scheme must be so framed that in arriving at the profits for the base year or for the previous profit period any profit-related pay and any secondary Class I contributions in respect of it are accorded the same accountancy treatment as is accorded to any profit-related pay and any secondary Class I contributions in respect of it in arriving at the profits in the profit period.
- (2) In sub-paragraph (1) above—
- (a) “*profit-related pay*” means profit-related pay under whatever scheme;
- (b) “*secondary Class I contributions*” means secondary Class I contributions under Part I of the Social Security Act 1975 or Part I of the Social Security (Northern Ireland) Act 1975 or Part I of the Social Security Contributions and Benefits Act 1992 or Part I of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
- (3) Sub-paragraph (1) above shall apply notwithstanding anything in paragraph 19 below.
- (4) Where a scheme includes provision by virtue of paragraph 13(4) above the scheme must also include provision that if the pay for the profit period is less than the pay for the base year or for the previous profit period (as the case may be) the percentage to be applied for the purposes of the provision included by virtue of paragraph 13(4) above shall be the increased percentage (instead of any other percentage).
- (5) The increased percentage must be one arrived at by—
- (a) taking the percentage that would be applied for the purposes of the provision included by virtue of paragraph 13(4) above apart from the provision included by virtue of sub-paragraph (4) above, and
- (b) adding the percentage found by expressing the difference in pay as a percentage of the profits for the base year or for the previous profit period (as the case may be).
- (6) For the purposes of this paragraph—
- (a) the pay for the profit period or for the previous profit period or for the base year is the pay paid to employees in respect of employment in the period or year concerned in the employment unit concerned;
- (b) the difference in pay is the difference between the pay for the profit period and the pay for the previous profit period or for the base year (as the case may be);
and any profit-related pay shall be ignored in applying paragraph (a) above.
##### 14A
- (1) Where a scheme includes provision to give effect to paragraph 14(3) above or provision by virtue of paragraph 14(4) above the scheme must be so framed that in arriving at the profits in the preceding period of 12 months any profit-related pay and any secondary Class I contributions in respect of it are accorded the same accountancy treatment as is accorded to any profit-related pay and any secondary Class I contributions in respect of it in arriving at the profits in the profit period.
- (2) Where a scheme includes provision by virtue of paragraph 14(5) above the scheme must be so framed that in arriving at the profits in the relevant period of 12 months any profit-related pay and any secondary Class I contributions in respect of it are accorded the same accountancy treatment as is accorded to any profit-related pay and any secondary Class I contributions in respect of it in arriving at the profits in the profit period; and for this purpose the relevant period of 12 months is the period of 12 months immediately preceding the first or only profit period to which the scheme relates.
- (3) In sub-paragraphs (1) and (2) above—
- (a) “*profit-related pay*” means profit-related pay under whatever scheme;
- (b) “*secondary Class I contributions*” means secondary Class I contributions under Part I of the Social Security Contributions and Benefits Act 1992 or Part I of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
- (4) Sub-paragraphs (1) and (2) above shall apply notwithstanding anything in paragraph 19 below.
- (5) Where a scheme includes provision by virtue of paragraph 14(4) above the scheme must also include provision that if the pay for the profit period is less than the pay for the preceding period of 12 months the percentage to be applied for the purposes of the provision included by virtue of paragraph 14(4) above shall be the increased percentage (instead of any other percentage).
- (6) The increased percentage must be one arrived at by—
- (a) taking the percentage that would be applied for the purposes of the provision included by virtue of paragraph 14(4) above apart from the provision included by virtue of sub-paragraph (5) above, and
- (b) adding the percentage found by expressing the difference in pay as a percentage of the profits in the preceding period of 12 months.
- (7) For the purposes of this paragraph—
- (a) the pay for the profit period or for the preceding period of 12 months is the pay paid to employees in respect of employment in the period concerned in the employment unit concerned;
- (b) the difference in pay is the difference between the pay for the profit period and the pay for the preceding period of 12 months;
and any profit-related pay shall be ignored in applying paragraph (a) above.
##### 19A
- (1) The Treasury may by order amend paragraph 19 above so as to add to, delete or vary any of the items mentioned in sub-paragraph (6) of that paragraph.
- (2) In this paragraph references to an order are references to an order under sub-paragraph (1) above.
- (3) Subject to sub-paragraphs (4) to (8) below, any amendment or amendments made by virtue of an order shall have effect in relation to the preparation, for the purposes of a scheme, of a profit and loss account in respect of a period beginning on or after the day on which the order comes into force.
- (4) Any amendment or amendments made by virtue of an order shall not have effect in relation to an existing scheme unless, before the end of the period of 6 months beginning with the day on which the order comes into force, the scheme is altered to take account of the amendment or amendments.
- (5) Sub-paragraphs (6) to (8) below apply where, before the end of the period mentioned in sub-paragraph (4) above, an existing scheme is altered as mentioned in that sub-paragraph.
- (6) The provision made by the scheme in compliance with paragraph 20(1) below shall not prevent a profit and loss account being prepared in accordance with the alteration.
- (7) Where the distributable pool would but for this sub-paragraph be determined by reference—
- (a) to an amount shown in a profit and loss account prepared in accordance with the altered scheme, and
- (b) to an amount shown in a profit and loss account (“an earlier account”) prepared in accordance with the scheme in a form in which it stood before the alteration,
then, for the purposes of the determination of the pool, the amount shown in the earlier account shall be recalculated using the same method as that used to calculate the amount mentioned in paragraph (a) above.
- (8) The alteration of the existing scheme shall be treated as being within subsection (8) of section 177B.
- (9) An order may include such supplementary, incidental or consequential provisions as appear to the Treasury to be necessary or expedient.
- (10) In this paragraph “*an existing scheme*”, in relation to an order, means a scheme which, immediately before the day on which the order comes into force, is a registered scheme.
### Parts of undertakings
##### 21
- (1) This paragraph shall apply to a scheme if the employment unit is a part of an undertaking, and the scheme states that the profits or losses of the unit are for the purposes of the scheme to be taken to be equivalent to those of the whole undertaking (which must be identified by the scheme).
- (2) Where this paragraph applies to a scheme, this Schedule shall have effect as if any reference to the profits or losses of the employment unit were a reference to the profits or losses of the undertakings of which it forms part.
##### 22
- (1) Where paragraph 21 above applies to a scheme, the scheme must contain provisions ensuring that no payments are made under it by reference to a profit period unless, at the beginning of that profit period,—
- (a) there is at least one other registered scheme which relates to employees employed in the same undertaking as that of which the employment unit forms part, and
- (b) the number of the employees to whom the scheme relates does not exceed 33 per cent. of the number of the employees to whom that other scheme relates (or if there is more than one other scheme, the aggregate number of the employees to whom they relate).
- (2) Another registered scheme shall be disregarded for the purposes of sub-paragraph (1) above—
- (a) if paragraph 21 above applies to it, or
- (b) if, by virtue of provisions of the kind described in paragraph 6 above, no payments could be made under it by reference to the profit period concerned.
- (3) Where paragraph 21 above applies to two or more schemes relating to employment units which are parts of the same undertaking, an employee to whom another scheme relates shall not be counted for the purposes of sub-paragraph (1)(b) above in connection with more than one of those schemes.
##### 23
- (1) In a case where—
- (a) paragraph 21 above applies to a scheme, and
- (b) method A (specified in paragraph 13 above) is employed for the purposes of the scheme,
the scheme must contain provisions which comply with this paragraph and which apply as regards each profit period to which the scheme relates.
- (2) The scheme must ensure that no payments are made under it by reference to a given profit period if the percentage mentioned in paragraph 13(1) above exceeds the permitted percentage.
- (3) The scheme must ensure that the permitted percentage is a percentage found by—
- (a) taking the pay paid to employees in respect of employment in the relevant year in the employment unit to which the other scheme mentioned in paragraph 22(1)(a) above relates or (if there are two or more other schemes) the aggregate of the pay paid to employees in respect of employment in the relevant year in the employment units to which the other schemes relate;
- (b) taking the profit-related pay paid to employees in respect of employment in the relevant year in the employment unit to which the other scheme mentioned in paragraph 22(1)(a) above relates or (if there are two or more other schemes) the aggregate of the profit-related pay paid to employees in respect of employment in the relevant year in the employment units to which the other schemes relate;
- (c) taking the pay paid to employees in respect of employment in the relevant year in the employment unit to which the scheme mentioned in paragraph 21 above relates;
- (d) taking the fraction whose denominator is equal to the number of whole pounds found under paragraph (a) above and whose numerator is equal to the number of whole pounds found under paragraph (b) above;
- (e) multiplying the amount found under paragraph (c) above by the fraction found under paragraph (d) above;
- (f) taking the profits for the relevant year of the undertaking mentioned in paragraph 21 above;
- (g) expressing the amount found under paragraph (e) above as a percentage of the amount found under paragraph (f) above;
- (h) taking the percentage found under paragraph (g) above as the permitted percentage.
- (4) The scheme must ensure that the relevant year is a period of 12 months identified in the scheme and ending at a time within the period of two years immediately preceding the given profit period.
##### 24
- (1) In a case where—
- (a) paragraph 21 above applies to a scheme, and
- (b) method B (specified in paragraph 14 above) is employed for the purposes of the scheme,
the scheme must contain provisions which comply with this paragraph and which apply as regards each profit period to which the scheme relates.
- (2) The scheme must ensure that no payments are made under it by reference to the first or only profit period to which the scheme relates if the notional pool mentioned in paragraph 14(1)(a) above exceeds the permitted limit.
- (3) The scheme must also ensure that no payments are made under it by reference to a given profit period other than the first if the distributable pool for the previous profit period (mentioned in paragraph 14(1)(b) above) exceeds the permitted limit.
- (4) The scheme must ensure that the permitted limit is a limit found by—
- (a) taking the pay paid to employees in respect of employment in the relevant year in the employment unit to which the other scheme mentioned in paragraph 22(1)(a) above relates or (if there are two or more other schemes) the aggregate of the pay paid to employees in respect of employment in the relevant year in the employment units to which the other schemes relate;
- (b) taking the profit-related pay paid to employees in respect of employment in the relevant year in the employment unit to which the other scheme mentioned in paragraph 22(1)(a) above relates or (if there are two or more other schemes) the aggregate of the profit-related pay paid to employees in respect of employment in the relevant year in the employment units to which the other schemes relate;
- (c) taking the pay paid to employees in respect of employment in the relevant year in the employment unit to which the scheme mentioned in paragraph 21 above relates;
- (d) taking the fraction whose denominator is equal to the number of whole pounds found under paragraph (a) above and whose numerator is equal to the number of whole pounds found under paragraph (b) above;
- (e) multiplying the amount found under paragraph (c) above by the fraction found under paragraph (d) above;
- (f) taking the amount found under paragraph (e) above as the permitted limit.
- (5) The scheme must ensure that the relevant year is—
- (a) a period of 12 months identified in the scheme and ending at a time within the period of two years immediately preceding the first or only profit period to which the scheme relates (in the case of provisions contained in the scheme by virtue of sub-paragraph (2) above);
- (b) a period of 12 months identified in the scheme and ending at a time within the period of two years immediately preceding the given profit period (in the case of provisions contained in the scheme by virtue of sub-paragraph (3) above).
##### 8A
- (1) In the case of a savings-related share option scheme or a profit sharing scheme, the scheme must specify what age is to be the specified age for the purposes of the scheme.
- (2) The age specified—
- (a) must be the same for men and women, and
- (b) must be not less than 60 and not more than 75.
##### 11A
- (1) In the case of a profit sharing scheme, scheme shares must not be shares—
- (a) in an employer company, or
- (b) in a company that—
- (i) has control of an employer company, and
- (ii) is under the control of a person or persons within sub-paragraph (2)(b)(i) below in relation to an employer company.
- (2) For the purposes of this paragraph a company is “*an employer company*” if—
- (a) the business carried on by it consists substantially in the provision of the services of the persons employed by it, and
- (b) the majority of those services are provided to—
- (i) a person who has, or two or more persons who together have, control of the company, or
- (ii) a company associated with the company.
- (3) For the purposes of sub-paragraph (2)(b)(ii) above a company shall be treated as associated with another company if both companies are under the control of the same person or persons.
- (4) For the purposes of sub-paragraphs (1) to (3) above—
- (a) references to a person include a partnership, and
- (b) where a partner, alone or together with others, has control of a company, the partnership shall be treated as having like control of that company.
- (5) For the purposes of this paragraph the question whether a person controls a company shall be determined in accordance with section 416(2) to (6).
### Shares subject to an employee benefit trust
##### 40
- (1) Where an individual has an interest in shares or obligations of the company as a beneficiary of an employee benefit trust, the trustees shall not be regarded as associates of his by reason only of that interest unless sub-paragraph (3) below applies in relation to him.
- (2) In this paragraph “*employee benefit trust*” has the same meaning as in paragraph 7 of Schedule 8.
- (3) This sub-paragraph applies in relation to an individual if at any time on or after 14th March 1989—
- (a) the individual, either on his own or with any one or more of his associates, or
- (b) any associate of his, with or without other such associates,
has been the beneficial owner of, or able (directly or through the medium of other companies or by any other indirect means) to control, more than 25 per cent., or in the case of a share option scheme which is not a savings-related share option scheme more than 10 per cent., of the ordinary share capital of the company.
- (4) Sub-paragraphs (9) to (12) of paragraph 7 of Schedule 8 shall apply for the purposes of this paragraph in relation to an individual as they apply for the purposes of that paragraph in relation to an employee.
##### 3A
- (1) In paragraph 3 above the reference to the relevant age shall be construed as follows.
- (2) Where the scheme is approved before 25th July 1991 and the event occurs before 30th November 1993, the relevant age is
- (a) in the case of a man, 65, and
- (b) in the case of a woman, 60.
- (3) Where—
- (a) the scheme is approved before 25th July 1991,
- (b) the event occurs on or after 30th November 1993,
- (c) the scheme defines the period of retention by reference to the age of 60 for both men and women, and
- (d) the reference to that age is incorporated in the definition by virtue of an alteration approved by the Board under paragraph 4 of Schedule 9 before the event occurs,
the relevant age is 60.
- (4) Where—
- (a) the scheme is approved before 25th July 1991,
- (b) the event occurs on or after 30th November 1993, and
- (c) sub-paragraph (3) above does not apply,
the relevant age is in the case of a man, 65, and in the case of a woman, 60.
- (5) Where the scheme is approved on or after 25th July 1991, the relevant age is the specified age.
##### 5A
- (1) Paragraph 5(2) to (6) above apply where there occurs in relation to any of a participant’s shares (“*the original holding*”) a relevant transaction which would result in a new holding being equated with the original holding for the purposes of capital gains tax, were it not for the fact that what would be the new holding consists of or includes a qualifying corporate bond; and “*relevant transaction*” here means a transaction mentioned in Chapter II of Part IV of the 1992 Act.
- (2) In paragraph 5(2) to (6) above as applied by this paragraph—
- (a) references to a company reconstruction are to the transaction referred to in sub-paragraph (1) above;
- (b) references to the new holding are to what would be the new holding were it not for the fact mentioned in sub-paragraph (1) above;
- (c) references to the original holding shall be construed in accordance with sub-paragraph (1) above (and not paragraph 5(1));
- (d) references to shares, in the context of the new holding, include securities and rights of any description which form part of the new holding.
- (3) In sub-paragraph (1) above “*qualifying corporate bond*” shall be construed in accordance with section 117 of the 1992 Act.
## SCHEDULE 11A
## Part I — TAX RELIEF
##### 1
- (1) Where by reason of a person’s employment—
- (a) any sums are paid to that person (the employee) in respect of qualifying removal expenses,
- (b) any sums are paid on behalf of the employee to another person in respect of qualifying removal expenses, or
- (c) any qualifying removal benefit is provided for the employee or for others being members of his family or household,
the employee shall not thereby be regarded as receiving emoluments of the employment for any purpose of Case I or Case II of Schedule E.
- (2) Sub-paragraph (1) above shall have effect subject to Part V of this Schedule.
##### 2
- (1) This paragraph applies where—
- (a) any payment or benefit would (apart from paragraph 1 above) constitute emoluments of an employment for any purpose of Case I or Case II of Schedule E, and
- (b) by virtue of that paragraph it is treated as not being such emoluments.
- (2) The payment or benefit shall be treated as not being emoluments of the employment for any purpose of Case III of Schedule E.
## Part II — QUALIFYING EXPENSES AND QUALIFYING BENEFITS
### Qualifying removal expenses
##### 3
- (1) Expenses are not qualifying removal expenses unless they are eligible removal expenses and the conditions set out in this paragraph and paragraph 5 below are fulfilled.
- (2) The expenses must be reasonably incurred by the employee in connection with a change of his residence.
- (3) The expenses must be incurred on or before the relevant day.
### Qualifying removal benefits
##### 4
- (1) A benefit is not a qualifying removal benefit unless it is an eligible removal benefit and the conditions set out in this paragraph and paragraph 5 below are fulfilled.
- (2) The benefit must be reasonably provided in connection with a change of the employee’s residence.
- (3) The benefit must be provided on or before the relevant day.
### Connection with employment
##### 5
- (1) The change of residence mentioned in paragraphs 3(2) and 4(2) above must result from—
- (a) the employee becoming employed by an employer,
- (b) an alteration of the duties of the employee’s employment (where his employer remains the same), or
- (c) an alteration of the place where the employee is normally to perform the duties of his employment (where both his employer and the duties of his employment remain the same).
- (2) The change must be made wholly or mainly to allow the employee to have his residence within a reasonable daily travelling distance of—
- (a) the place where he performs, or is to perform, the duties of his employment (where sub-paragraph (1)(a) above applies);
- (b) the place where he performs, or is to perform, the new duties of his employment (where sub-paragraph (1)(b) above applies);
- (c) the new place where he performs, or is to perform, the duties of his employment (where sub-paragraph (1)(c) above applies);
and any reference in this sub-paragraph to the place where the employee performs, or is to perform, duties of his employment is to the place where he normally performs, or is normally to perform, those duties.
- (3) The employee’s former residence must not be within a reasonable daily travelling distance of the place mentioned in sub-paragraph (2) above.
### The relevant day
##### 6
- (1) Subject to sub-paragraph (2) below, the relevant day, in relation to a particular change of residence, is the day on which the relevant year ends; and for the purposes of this sub-paragraph the relevant year is the year of assessment next following the year of assessment in which—
- (a) the employee begins to perform the duties of his employment (where paragraph 5(1)(a) above applies);
- (b) the employee begins to perform the new duties of his employment (where paragraph 5(1)(b) above applies);
- (c) the employee begins to perform the duties of his employment at the new place (where paragraph 5(1)(c) above applies).
- (2) If it appears reasonable to the Board to do so, having regard to all the circumstances of a particular change of residence, they may direct that in relation to that change the relevant day is a day which—
- (a) falls after the day mentioned in sub-paragraph (1) above, and
- (b) is a day on which a year of assessment ends.
## Part III — ELIGIBLE REMOVAL EXPENSES
### Introduction
##### 7
Expenses are eligible removal expenses if they fall into one of the following categories—
- (a) expenses of disposal,
- (b) expenses of acquisition,
- (c) expenses of abortive acquisition,
- (d) expenses of transporting belongings,
- (e) travelling and subsistence expenses,
- (f) bridging loan expenses, and
- (g) duplicate expenses;
and paragraphs 8 to 14 below apply for the purpose of interpreting the preceding provisions of this paragraph.
### Expenses of disposal
##### 8
- (1) Expenses fall within paragraph 7(a) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) that interest is disposed of, or is intended to be disposed of, in consequence of the change of residence, and
- (c) the expenses fall within sub-paragraph (2) below.
- (2) Expenses fall within this sub-paragraph if they consist of one of the following—
- (a) legal expenses connected with the disposal or intended disposal of the employee’s interest in his former residence (including legal expenses connected with the redemption of any loan relating to the residence),
- (b) any penalty for redeeming, for the purpose of the disposal or intended disposal, any loan relating to the residence,
- (c) fees of any estate agent or auctioneer engaged in the disposal or intended disposal,
- (d) expenses of advertising the disposal or intended disposal,
- (e) charges for disconnecting, for the purpose of the disposal or intended disposal, public utilities serving the residence,
- (f) expenses of maintaining, insuring, or preserving the security of the residence at any time when unoccupied pending the disposal or intended disposal, and
- (g) any rent paid in respect of the residence at any such time.
- (3) The reference in this paragraph to the employee having an interest in his former residence includes a reference to—
- (a) one or more members of the employee’s family or household having such an interest;
- (b) the employee and one or more members of his family or household having such an interest;
and references to the disposal or intended disposal of the employee’s interest in his former residence shall be construed accordingly.
- (4) For the purposes of this paragraph a loan relates to a residence if the loan was raised to obtain an interest in the residence, or an interest in the residence forms security for the loan, or both.
### Expenses of acquisition
##### 9
- (1) Expenses fall within paragraph 7(b) above if (and only if) the employee acquires an interest in his new residence and the expenses consist of one of the following—
- (a) legal expenses connected with the acquisition by the employee of the interest (including legal expenses connected with any loan raised to acquire the interest),
- (b) any procurement fees connected with any such loan,
- (c) the costs of any insurance effected to cover risks which are incurred by the maker of any such loan and which arise because the amount of the loan is equal to the whole, or a substantial part, of the value of the interest,
- (d) fees relating to any survey or inspection of the residence undertaken in connection with the acquisition by the employee of the interest,
- (e) fees payable to an appropriate registry or appropriate register in connection with the acquisition by the employee of the interest,
- (f) stamp duty charged on the acquisition, and
- (g) charges for connecting any public utility for use by the employee, if the utility serves the residence.
- (2) References in this paragraph to the employee acquiring an interest in his new residence include references to—
- (a) one or more members of the employee’s family or household acquiring such an interest;
- (b) the employee and one or more members of his family or household acquiring such an interest.
- (3) References in this paragraph to a loan are to a loan raised by the employee, by one or more members of the employee’s family or household or by the employee and one or more members of his family or household.
- (4) The reference in this paragraph to a utility for use by the employee includes a reference to a utility for use by the employee and one or more members of his family or household.
- (5) For the purposes of this paragraph an appropriate registry is any of the following—
- (a) Her Majesty’s Land Registry;
- (b) the Land Registry in Northern Ireland;
- (c) the Registry of Deeds for Northern Ireland;
and an appropriate register is any register under the management and control of the Keeper of the Registers of Scotland.
### Expenses of abortive acquisition
##### 10
Expenses fall within paragraph 7(c) above if (and only if)—
- (a) they are incurred with a view to the acquisition of an interest in a residence, the interest is not acquired, but (if it were) the residence would be the employee’s new residence,
- (b) they would fall within paragraph 7(b) above if the interest were acquired, and
- (c) the interest is not acquired because of circumstances outside the control of the person seeking to acquire the interest, or because that person reasonably declines to proceed.
### Expenses of transporting belongings
##### 11
- (1) Expenses fall within paragraph 7(d) above if (and only if) they consist of one of the following—
- (a) expenses connected with transporting domestic belongings from the employee’s former residence to his new residence, and
- (b) the costs of any insurance effected to cover such transporting.
- (2) For the purposes of this paragraph transporting includes—
- (a) packing and unpacking belongings,
- (b) temporarily storing them if a direct move from the former to the new residence is not made,
- (c) detaching domestic fittings from the former residence if they are to be taken to the new residence, and
- (d) attaching domestic fittings to the new residence, and adapting them, if they are brought from the old residence.
- (3) For the purposes of this paragraph domestic belongings are those of the employee and of members of his family or household.
### Travelling and subsistence expenses
##### 12
- (1) Expenses fall within paragraph 7(e) above if (and only if) they consist of one of the following—
- (a) the costs of travelling and subsistence of the employee and members of his family or household while making temporary visits to the new area for purposes connected with the change,
- (b) the employee’s costs of travelling between his former residence and the place where he normally performs his new duties or (where paragraph 5(1)(c) above applies) between his former residence and the new place where he normally performs the duties of his employment,
- (c) where paragraph 5(1)(b) or (c) above applies, the employee’s costs of travelling, before the alteration mentioned in paragraph 5(1)(b) or (c), between his new residence and his original place of work,
- (d) costs of the employee’s subsistence (other than costs falling within paragraph (a) above),
- (e) the employee’s costs of travelling between his former residence and any temporary living accommodation of the employee,
- (f) where paragraph 5(1)(b) or (c) above applies, the employee’s costs of travelling, before the alteration mentioned in paragraph 5(1)(b) or (c), between his new residence and any temporary living accommodation of the employee,
- (g) the costs of travelling of the employee and members of his family or household from the employee’s former residence to his new residence in connection with the change,
- (h) a relevant child’s costs of subsistence while staying, for the purposes of securing the continuity of his education, in living accommodation in the old area after the change,
- (i) a relevant child’s costs of travelling between the accommodation mentioned in paragraph (h) above and the employee’s new residence,
- (j) a relevant child’s costs of subsistence while staying, for the purposes of securing the continuity of his education, in living accommodation in the new area before the change, and
- (k) a relevant child’s costs of travelling between the accommodation mentioned in paragraph (j) above and the employee’s former residence.
- (2) For the purposes of this paragraph—
- (a) the employee’s new duties are the duties of his employment (where paragraph 5(1)(a) above applies) or the new duties of his employment (where paragraph 5(1)(b) above applies),
- (b) the new area is the area round or near the place where the employee’s new duties are, or are to be, normally performed, or (where paragraph 5(1)(c) above applies) the area round or near the new place where the duties of the employee’s employment are, or are to be, normally performed,
- (c) the employee’s original place of work is the place where, before the alteration mentioned in paragraph 5(1)(b) or (c) above, the employee normally performs the duties of his employment,
- (d) a relevant child is a person who is a member of the employee’s family or household and who is aged under 19 at the material time, and
- (e) the old area is the area round or near the former residence of the employee.
- (3) For the purposes of this paragraph the material time is the beginning of the year of assessment in which—
- (a) the employee becomes employed by an employer,
- (b) the alteration of the duties of the employee’s employment becomes effective, or
- (c) the alteration of the place where the employee is normally to perform the duties of his employment becomes effective.
- (4) In a case where—
- (a) expenses are incurred by the employee,
- (b) the expenses would, apart from this sub-paragraph, fall within paragraph 7(e) above, and
- (c) a deduction is allowable under any of sections 193 to 195 in respect of the whole or part of the expenses,
the expenses or, as the case may be, the part of them in respect of which the deduction is allowable shall be treated as not falling within paragraph 7(e) above.
### Bridging loan expenses
##### 13
- (1) Expenses fall within paragraph 7(f) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) he disposes of that interest in consequence of the change of residence,
- (c) he acquires an interest in his new residence, and
- (d) the expenses consist of interest falling within sub-paragraph (2) below.
- (2) Interest falls within this sub-paragraph if it is payable by the employee in respect of a loan raised by him and the reason, or one of the reasons, for the loan being raised is that a period elapses between—
- (a) the date when expenditure is incurred in connection with the acquisition of the employee’s interest in his new residence, and
- (b) the date when the proceeds of the disposal of the employee’s interest in his former residence are available.
- (3) Interest on so much of the loan as exceeds the market value of the employee’s interest in his former residence (taken at the time his interest in his new residence is acquired) shall be regarded as not falling within sub-paragraph (2) above.
- (4) Interest on so much of the loan as is not used for any of the following purposes shall also be regarded as not falling within sub-paragraph (2) above—
- (a) the purpose of redeeming any loan relating to the employee’s former residence and raised by him;
- (b) the purpose of acquiring the employee’s interest in his new residence.
- (5) For the purposes of this paragraph a loan relates to a residence if the loan was raised to obtain an interest in the residence, or an interest in the residence forms security for the loan, or both.
- (6) References in this paragraph to the employee having, disposing of or acquiring an interest in a residence include references to—
- (a) one or more members of the employee’s family or household having, disposing of or acquiring such an interest;
- (b) the employee and one or more members of his family or household having, disposing of or acquiring such an interest;
and references to the employee’s interest shall be construed accordingly.
- (7) The reference in this paragraph to interest payable by the employee includes a reference to interest payable by one or more members of the employee’s family or household or by the employee and one or more members of his family or household.
- (8) References in this paragraph to a loan raised by the employee include references to a loan raised by one or more members of the employee’s family or household or by the employee and one or more members of his family or household.
### Duplicate expenses
##### 14
- (1) Expenses fall within paragraph 7(g) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) he disposes of that interest in consequence of the change of residence,
- (c) he acquires an interest in his new residence,
- (d) the expenses are incurred by the employee as a result of the change, and
- (e) the expenses are incurred on the purchase of domestic goods intended to replace goods which were used at the employee’s former residence but which are not suitable for use at his new residence.
- (2) In arriving at the total of the expenses any amount mentioned in sub-paragraph (3) below shall be deducted from what would be the total apart from this sub-paragraph; and accordingly an amount equal to the aggregate of such amounts shall not be treated as eligible removal expenses.
- (3) The amount is any amount obtained in respect of the sale of the replaced goods.
- (4) References in this paragraph to the employee having, disposing of or acquiring an interest in a residence include references to—
- (a) one or more members of the employee’s family or household having, disposing of or acquiring such an interest;
- (b) the employee and one or more members of his family or household having, disposing of or acquiring such an interest.
### Power to amend
##### 15
- (1) The Treasury may make regulations amending the preceding provisions of this Part of this Schedule so as to secure that expenses that would not be eligible removal expenses (apart from the regulations) are such expenses.
- (2) Any such regulations may include such supplementary, incidental or consequential provisions as appear to the Treasury to be necessary or expedient; and such provisions may be made by way of amendment to other Parts of this Schedule, or otherwise.
- (3) Any such regulations shall have effect as regards any change of an employee’s residence which results from—
- (a) the employee becoming employed by an employer on or after the specified day;
- (b) an alteration, with effect from a time falling on or after the specified day, of the duties of the employee’s employment;
- (c) an alteration, with effect from a time falling on or after the specified day, of the place where the employee is normally to perform the duties of his employment;
and in this sub-paragraph “*the specified day*” means the day specified in the regulations for the purposes of this sub-paragraph.
## Part IV — ELIGIBLE REMOVAL BENEFITS
### Introduction
##### 16
Benefits are eligible removal benefits if they fall into one of the following categories—
- (a) benefits in respect of disposal,
- (b) benefits in respect of acquisition,
- (c) benefits in respect of abortive acquisition,
- (d) benefits in respect of the transporting of belongings,
- (e) travelling and subsistence benefits, and
- (f) benefits in respect of the new residence;
and paragraphs 17 to 22 below apply for the purpose of interpreting the preceding provisions of this paragraph.
### Benefits in respect of disposal
##### 17
- (1) A benefit falls within paragraph 16(a) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) that interest is disposed of, or is intended to be disposed of, in consequence of the change of residence, and
- (c) the benefit falls within sub-paragraph (2) below.
- (2) A benefit falls within this sub-paragraph if it consists of one of the following—
- (a) legal services connected with the disposal or intended disposal of the employee’s interest in his former residence (including legal services connected with the redemption of any loan relating to the residence),
- (b) the waiving of any penalty for redeeming, for the purpose of the disposal or intended disposal, any loan relating to the residence,
- (c) the services of an estate agent or auctioneer engaged in the disposal or intended disposal,
- (d) services connected with the advertisement of the disposal or intended disposal,
- (e) the disconnection, for the purpose of the disposal or intended disposal, of public utilities serving the residence, and
- (f) services connected with the maintenance or insurance, or the preservation of the security, of the residence at any time when unoccupied pending the disposal or intended disposal.
- (3) Sub-paragraphs (3) and (4) of paragraph 8 above apply for the purposes of this paragraph as they apply for the purposes of that.
### Benefits in respect of acquisition
##### 18
- (1) A benefit falls within paragraph 16(b) above if (and only if) the employee acquires an interest in his new residence and the benefit consists of one of the following—
- (a) legal services connected with the acquisition by the employee of the interest (including legal services connected with any loan raised to acquire the interest),
- (b) the waiving of any procurement fees connected with any such loan,
- (c) the waiving of any amount payable in respect of insurance effected to cover risks which are incurred by the maker of any such loan and which arise because the amount of the loan is equal to the whole, or a substantial part, of the value of the interest,
- (d) any survey or inspection of the residence undertaken in connection with the acquisition by the employee of the interest, and
- (e) the connection of any public utility for use by the employee, if the utility serves the residence.
- (2) Sub-paragraphs (2) to (4) of paragraph 9 above apply for the purposes of this paragraph as they apply for the purposes of that.
### Benefits in respect of abortive acquisition
##### 19
A benefit falls within paragraph 16(c) above if (and only if)—
- (a) it is provided with a view to the acquisition of an interest in a residence, the interest is not acquired, but (if it were) the residence would be the employee’s new residence,
- (b) it would fall within paragraph 16(b) above if the interest were acquired, and
- (c) the interest is not acquired because of circumstances outside the control of the person seeking to acquire the interest, or because that person reasonably declines to proceed.
### Benefits in respect of the transporting of belongings
##### 20
- (1) A benefit falls within paragraph 16(d) above if (and only if) it consists of one of the following—
- (a) the transporting of domestic belongings from the employee’s former residence to his new residence, and
- (b) the effecting of insurance to cover such transporting.
- (2) Sub-paragraphs (2) and (3) of paragraph 11 above apply for the purposes of this paragraph as they apply for the purposes of that.
### Travelling and subsistence benefits
##### 21
- (1) A benefit falls within paragraph 16(e) above if (and only if) it consists of one of the following—
- (a) subsistence, and facilities for travel, provided for the employee and members of his family or household while making temporary visits to the new area for purposes connected with the change,
- (b) facilities provided for the employee for travel between his former residence and the place where he normally performs his new duties or (where paragraph 5(1)(c) above applies) between his former residence and the new place where he normally performs the duties of his employment,
- (c) where paragraph 5(1)(b) or (c) above applies, facilities provided for the employee for travel, before the alteration mentioned in paragraph 5(1)(b) or (c), between his new residence and his original place of work,
- (d) subsistence provided for the employee (other than subsistence falling within paragraph (a) above),
- (e) facilities provided for the employee for travel between his former residence and any temporary living accommodation of the employee,
- (f) where paragraph 5(1)(b) or (c) above applies, facilities provided for the employee for travel, before the alteration mentioned in paragraph 5(1)(b) or (c), between his new residence and any temporary living accommodation of the employee,
- (g) facilities provided for the employee and members of his family or household for travel from the employee’s former residence to his new residence in connection with the change,
- (h) subsistence provided for a relevant child while staying, for the purposes of securing the continuity of his education, in living accommodation in the old area after the change,
- (i) facilities provided for a relevant child for travel between the accommodation mentioned in paragraph (h) above and the employee’s new residence,
- (j) subsistence provided for a relevant child while staying, for the purposes of securing the continuity of his education, in living accommodation in the new area before the change, and
- (k) facilities provided for a relevant child for travel between the accommodation mentioned in paragraph (j) above and the employee’s former residence.
- (2) Where (apart from this sub-paragraph) a car or van would constitute a facility for the purposes of sub-paragraph (1) above, it shall not do so if the car or van—
- (a) is provided as mentioned in that sub-paragraph,
- (b) is also available at any relevant time to the employee, or to others being members of his family or household, for his or their private use not falling within that sub-paragraph, and
- (c) is so available by reason of the employee’s employment and without any transfer of the property in it.
- (3) Sub-paragraphs (2) and (3) of paragraph 12 above apply for the purposes of this paragraph as they apply for the purposes of that.
- (4) In this paragraph “*car*”, “*van*” and “*private use*” have the same meanings as in Chapter II of this Part of this Act.
- (5) Section 168(6) applies for the purposes of this paragraph as it applies for the purposes of Chapter II of this Part of this Act.
- (6) For the purposes of this paragraph a relevant time is any time falling on or before the day which is the relevant day (within the meaning given by paragraph 6 above) in relation to the change of residence concerned.
- (7) In a case where—
- (a) a benefit is provided for the employee or a member of his family or household,
- (b) the benefit would, apart from this sub-paragraph, fall within paragraph 16(e) above, and
- (c) a deduction is allowable under any of sections 193 to 195 in respect of the whole or part of the cost of the benefit,
the benefit shall, subject to sub-paragraph (8) below, be treated as not falling within paragraph 16(e) above.
- (8) Where a deduction is allowed as mentioned in sub-paragraph (7) above in respect of part only of the cost of the benefit, the extent to which the benefit is treated as falling within paragraph 16(e) above shall be determined on a just and reasonable basis.
### Benefits in respect of new residence
##### 22
- (1) A benefit falls within paragraph 16(f) above if (and only if)—
- (a) the employee has an interest in his former residence,
- (b) he disposes of that interest in consequence of the change of residence,
- (c) he acquires an interest in his new residence,
- (d) the benefit is provided as a result of the change, and
- (e) the benefit consists of domestic goods provided to replace goods which were used at the employee’s former residence but which are not suitable for use at his new residence.
- (2) Sub-paragraph (4) of paragraph 14 above applies for the purposes of this paragraph as it applies for the purposes of that.
### Power to amend
##### 23
- (1) The Treasury may make regulations amending the preceding provisions of this Part of this Schedule so as to secure that a benefit that would not be an eligible removal benefit (apart from the regulations) is such a benefit.
- (2) Any such regulations may include such supplementary, incidental or consequential provisions as appear to the Treasury to be necessary or expedient; and such provisions may be made by way of amendment to other Parts of this Schedule, or otherwise.
- (3) Sub-paragraph (3) of paragraph 15 above applies to regulations made under this paragraph as it applies to regulations made under that.
## Part V — THE QUALIFYING LIMIT
##### 24
- (1) In a case where, by reason of the employee’s employment and in connection with a particular change of residence—
- (a) any sums are paid as mentioned in paragraph 1(1)(a) or (b) above, or
- (b) any qualifying removal benefit is provided as mentioned in paragraph 1(1)(c) above,
paragraph 1(1) above shall apply only to the extent that the total value to the employee, found under sub-paragraph (2) below, does not exceed the qualifying limit.
- (2) The total value to the employee is the total of the following—
- (a) the aggregate of the amounts of any sums paid as mentioned in paragraph 1(1)(a) or (b) above in connection with the change of residence;
- (b) the aggregate of any amounts represented by qualifying removal benefits which are provided as mentioned in paragraph 1(1)(c) above in connection with the change.
- (3) Subject to sub-paragraphs (4) to (8) below, for the purposes of sub-paragraph (2)(b) above the amount represented by a benefit is the amount which would be the cash equivalent of the benefit under Chapter II of this Part of this Act if the benefit were chargeable under the appropriate provision of that Chapter.
- (4) In the case of a benefit which—
- (a) consists of living accommodation provided for a person, and
- (b) is, or would be apart from this Schedule, chargeable under section 145 and not under section 146,
for the purposes of sub-paragraph (2)(b) above the amount represented by the benefit is the amount which, if the benefit were so chargeable, would be the value to the employee of the accommodation for the period in which the accommodation is provided, less the appropriate sum.
- (5) For the purposes of sub-paragraph (4) above the value to the employee of accommodation in any period shall be determined in accordance with section 145, and the reference in that sub-paragraph to the appropriate sum is to the total of—
- (a) so much of any sum made good by the employee to those at whose cost the accommodation is provided as is properly attributable to the provision of the accommodation, and
- (b) any amounts which, if the benefit were chargeable under section 145, would be deductible by virtue of section 145(3) from the amount to be treated as emoluments under section 145(1) as regards the benefit.
- (6) In the case of a benefit which—
- (a) consists of living accommodation provided for a person, and
- (b) is, or would be apart from this Schedule, chargeable under both section 145 and section 146,
for the purposes of sub-paragraph (2)(b) above the amount represented by the benefit is the total of the amounts mentioned in sub-paragraph (7) below.
- (7) The amounts referred to in sub-paragraph (6) above are—
- (a) the amount which would be found under sub-paragraph (4) above if the benefit were chargeable under section 145 and not under section 146, and
- (b) the amount which, if the benefit were chargeable under section 146, would be the additional value to the employee of the accommodation for the period in which the accommodation is provided, less the appropriate sum.
- (8) For the purposes of sub-paragraph (7) above the additional value to the employee of accommodation in any period shall be determined in accordance with section 146, and the reference in that sub-paragraph to the appropriate sum is to the total of—
- (a) so much of any rent paid by the employee in respect of the accommodation to the person providing it as exceeds the value to the employee of the accommodation for the period (determined in accordance with section 145), and
- (b) any amounts which, if the benefit were chargeable under section 146, would be deductible by virtue of subsection (9) of that section from the amount to be treated as emoluments under that section as regards the benefit.
- (9) The qualifying limit, as regards any change of residence, is £8,000.
- (10) The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (9) above a sum of a greater amount.
- (11) Any such substitution shall have effect as regards any change of an employee’s residence which results from—
- (a) the employee becoming employed by an employer on or after the specified day;
- (b) an alteration, with effect from a time falling on or after the specified day, of the duties of the employee’s employment;
- (c) an alteration, with effect from a time falling on or after the specified day, of the place where the employee is normally to perform the duties of his employment;
and in this sub-paragraph “*the specified day*” means the day specified in the order for the purposes of this sub-paragraph.
## Part VI — GENERAL
### Interpretation
##### 25
In this Schedule—
- (a) references to the residence of the employee are to his sole or main residence,
- (b) references to the former residence of the employee are to his sole or main residence before the change,
- (c) references to the new residence of the employee are to his sole or main residence after the change, and
- (d) references to an interest in a residence are, in the case of a building, references to an estate or interest in the land concerned.
##### 26
For the purposes of this Schedule a person is not a member of another person’s family or household unless the former is—
- (a) the latter’s spouse, son, daughter, parent, servant, dependant or guest, or
- (b) the spouse of a son or daughter of the latter.
##### 27
In this Schedule references to employment include references to any office, and related expressions shall be construed accordingly.
##### 28
References in this Schedule to subsistence are to food, drink and temporary living accommodation.
### Commencement
##### 29
This Schedule applies to any payment made, or any benefit provided, in connection with a change of an employee’s residence which results from—
- (a) the employee becoming employed by an employer on or after 6th April 1993,
- (b) an alteration, with effect from a time falling on or after 6th April 1993, of the duties of the employee’s employment, or
- (c) an alteration, with effect from a time falling on or after 6th April 1993, of the place where the employee is normally to perform the duties of his employment.
### Amount of emoluments
##### 1A
For the purposes of section 192A and this Schedule the amount of the emoluments for a year of assessment from any employment shall be taken to be the amount remaining after any capital allowance and after any deductions under section 192(3), 193(4), 194(1), 195(7), 197AG, 198, 199, 201, 332, 592 or 594.
## SCHEDULE 12AA
#### Introduction
##### 1
@@ -30228,6 +30176,8 @@
[^c23397411]: [S. 231AB](https://www.legislation.gov.uk/ukpga/1988/1/section/231AB) repealed (1.4.2010 with effect in accordance with s. 1184(1) of the repealing Act) by [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4), [Sch. 1 para. 18](https://www.legislation.gov.uk/ukpga/2010/4/schedule/1/paragraph/18), [Sch. 3 Pt. 1](https://www.legislation.gov.uk/ukpga/2010/4/schedule/3/part/1) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2010/4/schedule/2))
[^c23397991]: [S. 231B](https://www.legislation.gov.uk/ukpga/1988/1/section/231B) omitted (with effect in accordance with Sch. 1 para. 73(1) of the repealing Act) by virtue of [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 1 para. 52(2)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/1/paragraph/52/2)
[^c23395321]: [S. 232](https://www.legislation.gov.uk/ukpga/1988/1/section/232) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [Sch. 1 para. 117](https://www.legislation.gov.uk/ukpga/2005/5/schedule/1/paragraph/117), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))
[^c23395341]: [S. 233](https://www.legislation.gov.uk/ukpga/1988/1/section/233) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [Sch. 1 para. 118](https://www.legislation.gov.uk/ukpga/2005/5/schedule/1/paragraph/118), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))
@@ -33978,6 +33928,8 @@
[^c21628881]: [S. 824(1A)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/1A) repealed (from 18.8.1989) by [Finance Act 1989 (c. 26)](https://www.legislation.gov.uk/ukpga/1989/26), [ss. 178(7)](https://www.legislation.gov.uk/ukpga/1989/26/section/178/7), [187](https://www.legislation.gov.uk/ukpga/1989/26/section/187), [Sch. 17 Pt. 10](https://www.legislation.gov.uk/ukpga/1989/26/schedule/17/part/10), Note; [S.I. 1989/1298](https://www.legislation.gov.uk/uksi/1989/1298)
[^c23813371]: [S. 824(2)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/2) omitted (with effect in accordance with Sch. 1 para. 73 of the repealing Act) by virtue of [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 1 para. 52(3)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/1/paragraph/52/3)
[^c22801911]: [S. 824(2A)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/2A) inserted (retrospectively) by [Finance Act 1988 (c. 39)](https://www.legislation.gov.uk/ukpga/1988/39), [s. 146](https://www.legislation.gov.uk/ukpga/1988/39/section/146), [Sch. 13 paras. 1](https://www.legislation.gov.uk/ukpga/1988/39/schedule/13/paragraph/1), [7(d)](https://www.legislation.gov.uk/ukpga/1988/39/schedule/13/paragraph/7/d)
[^c22801811]: [S. 824(2B)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/2B) inserted (retrospectively, with effect in accordance with [s. 41(4)-(6)](https://www.legislation.gov.uk/ukpga/1999/16/section/41/4) of the amending Act) by [Finance Act 1999 (c. 16)](https://www.legislation.gov.uk/ukpga/1999/16), [s. 41(2)](https://www.legislation.gov.uk/ukpga/1999/16/section/41/2)
@@ -34010,6 +33962,8 @@
[^c22800911]: [S. 824(4)(4A)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/4/4A) substituted for s. 824(4) (with effect in accordance with [s. 92(6)](https://www.legislation.gov.uk/ukpga/1997/16/section/92/6) of the amending Act) by [Finance Act 1997 (c. 16)](https://www.legislation.gov.uk/ukpga/1997/16), [s. 92(4)](https://www.legislation.gov.uk/ukpga/1997/16/section/92/4)
[^c23813391]: [S. 824(4A)(b)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/4A/b) and preceding word omitted (with effect in accordance with Sch. 1 para. 73 of the repealing Act) by virtue of [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 1 para. 52(4)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/1/paragraph/52/4)
[^c23813061]: Words in [s. 824(4A)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/4A) substituted (6.4.2003 with effect in accordance with [s. 723(1)](https://www.legislation.gov.uk/ukpga/2003/1/section/723/1) of the amending Act) by [Income Tax (Earnings and Pensions) Act 2003 (c. 1)](https://www.legislation.gov.uk/ukpga/2003/1), [Sch. 6 para. 104](https://www.legislation.gov.uk/ukpga/2003/1/schedule/6/paragraph/104) (with [Sch. 7](https://www.legislation.gov.uk/ukpga/2003/1/schedule/7))
[^c22800751]: [S. 824(5)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/5) repealed (with effect in accordance with s. 199(2)(3), Sch. 19 para. 41(4) of the repealing Act) by [Finance Act 1994 (c. 9)](https://www.legislation.gov.uk/ukpga/1994/9), [Sch. 19 para. 41(3)(a)](https://www.legislation.gov.uk/ukpga/1994/9/schedule/19/paragraph/41/3/a), [Sch. 26 Pt. 5(23)](https://www.legislation.gov.uk/ukpga/1994/9/schedule/26/part/5/23), Note 3; [S.I. 1998/3173](https://www.legislation.gov.uk/uksi/1998/3173), [art. 2](https://www.legislation.gov.uk/uksi/1998/3173/article/2)
@@ -34038,12 +33992,16 @@
[^c21629181]: Words in [s. 825(1)(a)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/1/a) repealed (for accounting periods beginning after 31.3.1989) by [Finance Act 1989 (c. 26)](https://www.legislation.gov.uk/ukpga/1989/26), [s. 187](https://www.legislation.gov.uk/ukpga/1989/26/section/187), [Sch. 17 Pt. V](https://www.legislation.gov.uk/ukpga/1989/26/schedule/17/part/V), Note 6
[^c23813621]: [S. 825(1)(c)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/1/c) and preceding word omitted (with effect in accordance with Sch. 1 para. 73 of the repealing Act) by virtue of [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 1 para. 52(5)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/1/paragraph/52/5)
[^c21629191]: Words in [s. 825(2)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/2) repealed (with effect in relation to payments made on and after 6.4.1993) by [Finance Act 1989 (c. 26)](https://www.legislation.gov.uk/ukpga/1989/26), [ss. 158(2)](https://www.legislation.gov.uk/ukpga/1989/26/section/158/2), [187](https://www.legislation.gov.uk/ukpga/1989/26/section/187), [Sch. 17 Pt. 8](https://www.legislation.gov.uk/ukpga/1989/26/schedule/17/part/8), Note 5; [S.I. 1993/753](https://www.legislation.gov.uk/uksi/1993/753)
[^c21629201]: Words in [s. 825(2)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/2) substituted (from 18.8.1989) by [Finance Act 1989 (c. 26)](https://www.legislation.gov.uk/ukpga/1989/26), [s. 179(1)(a)(vii)](https://www.legislation.gov.uk/ukpga/1989/26/section/179/1/a/vii); [S.I. 1989/1298](https://www.legislation.gov.uk/uksi/1989/1298)
[^c21629211]: [S. 825(2A)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/2A) inserted (retrospectively) by [Finance Act 1988 (c. 39)](https://www.legislation.gov.uk/ukpga/1988/39), [s. 146](https://www.legislation.gov.uk/ukpga/1988/39/section/146), [Sch. 13 paras. 1](https://www.legislation.gov.uk/ukpga/1988/39/schedule/13/paragraph/1), [8(a)](https://www.legislation.gov.uk/ukpga/1988/39/schedule/13/paragraph/8/a)
[^c23813701]: [S. 825(2A)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/2A) repealed (from 18.8.1989) by [Finance Act 1989 (c. 26)](https://www.legislation.gov.uk/ukpga/1989/26), [ss. 178(7)](https://www.legislation.gov.uk/ukpga/1989/26/section/178/7), [187](https://www.legislation.gov.uk/ukpga/1989/26/section/187), [Sch. 17 Pt. 10](https://www.legislation.gov.uk/ukpga/1989/26/schedule/17/part/10), Note; [S.I. 1989/1298](https://www.legislation.gov.uk/uksi/1989/1298)
[^c21629231]: Source—1975 (No.2) s.48(4)-(9)
[^c21629241]: [S. 825(4)(a)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/4/a) modified (27.7.1993) by [Finance Act 1993 (c. 34)](https://www.legislation.gov.uk/ukpga/1993/34), [s. 120](https://www.legislation.gov.uk/ukpga/1993/34/section/120), [Sch. 14 para. 10(6)](https://www.legislation.gov.uk/ukpga/1993/34/schedule/14/paragraph/10/6) [S. 825(4)(a)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/4/a) modified (1.5.1995) by [Finance Act 1995 (c. 4)](https://www.legislation.gov.uk/ukpga/1995/4), [s. 120](https://www.legislation.gov.uk/ukpga/1995/4/section/120), [Sch. 24 para. 12(5)](https://www.legislation.gov.uk/ukpga/1995/4/schedule/24/paragraph/12/5)
@@ -34054,6 +34012,8 @@
[^c21629271]: Words in [s. 825(2A)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/2A) inserted (retrospectively) by [Finance Act 1988 (c. 39)](https://www.legislation.gov.uk/ukpga/1988/39), [s. 146](https://www.legislation.gov.uk/ukpga/1988/39/section/146), [Sch. 13 paras. 1](https://www.legislation.gov.uk/ukpga/1988/39/schedule/13/paragraph/1), [8(b)](https://www.legislation.gov.uk/ukpga/1988/39/schedule/13/paragraph/8/b)
[^c23813711]: Words in [s. 825(5)](https://www.legislation.gov.uk/ukpga/1988/1/section/825/5) repealed (from 18.8.1989) by [Finance Act 1989 (c. 26)](https://www.legislation.gov.uk/ukpga/1989/26), [ss. 178(7)](https://www.legislation.gov.uk/ukpga/1989/26/section/178/7), [187](https://www.legislation.gov.uk/ukpga/1989/26/section/187), [Sch. 17 Pt. 10](https://www.legislation.gov.uk/ukpga/1989/26/schedule/17/part/10), Note; [S.I. 1989/1298](https://www.legislation.gov.uk/uksi/1989/1298)
[^c22802091]: [S. 826](https://www.legislation.gov.uk/ukpga/1988/1/section/826) excluded (2.1.1996) by [The Lloyd's Underwriters (Gilt-edged Securities) (Periodic Accounting for Tax on Interest) Regulations 1995 (S.I. 1995/3225)](https://www.legislation.gov.uk/uksi/1995/3225), [reg. 12(2)](https://www.legislation.gov.uk/uksi/1995/3225/regulation/12/2) (with [reg. 13](https://www.legislation.gov.uk/uksi/1995/3225/regulation/13))
[^c22803051]: [S. 826](https://www.legislation.gov.uk/ukpga/1988/1/section/826) applied (with modifications) (7.1.1999 in accordance with reg. 1(2) of the affecting S.I.) by [The Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175)](https://www.legislation.gov.uk/uksi/1998/3175), [reg. 8](https://www.legislation.gov.uk/uksi/1998/3175/regulation/8) (as amended by: [S.I. 2005/889](https://www.legislation.gov.uk/uksi/2005/889), [regs. 1(1)(3)](https://www.legislation.gov.uk/uksi/2005/889/regulation/1/1/3), [7](https://www.legislation.gov.uk/uksi/2005/889/regulation/7); [S.I. 2011/1785](https://www.legislation.gov.uk/uksi/2011/1785), [regs. 1](https://www.legislation.gov.uk/uksi/2011/1785/regulation/1), [11](https://www.legislation.gov.uk/uksi/2011/1785/regulation/11); [S.I. 2017/1072](https://www.legislation.gov.uk/uksi/2017/1072), [regs. 1](https://www.legislation.gov.uk/uksi/2017/1072/regulation/1), [10](https://www.legislation.gov.uk/uksi/2017/1072/regulation/10))
@@ -34066,6 +34026,8 @@
[^c22801941]: [S. 826(1)(aa)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/1/aa) inserted (3.5.1994) by [Finance Act 1994 (c. 9)](https://www.legislation.gov.uk/ukpga/1994/9), [Sch. 16 para. 20(2)](https://www.legislation.gov.uk/ukpga/1994/9/schedule/16/paragraph/20/2)
[^c23814631]: [S. 826(1)(c)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/1/c) and word omitted (with effect in accordance with Sch. 1 para. 73 of the repealing Act) by virtue of [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 1 para. 52(6)(a)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/1/paragraph/52/6/a)
[^c22803111]: [S. 826(1)(d)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/1/d) and preceding word inserted (with effect in accordance with [s. 69(1)](https://www.legislation.gov.uk/ukpga/2000/17/section/69/1) of the amending Act) by [Finance Act 2000 (c. 17)](https://www.legislation.gov.uk/ukpga/2000/17), [Sch. 21 para. 1(2)](https://www.legislation.gov.uk/ukpga/2000/17/schedule/21/paragraph/1/2)
[^c23813951]: Words in [s. 826(1)(d)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/1/d) substituted (1.4.2009 with effect in accordance with [s. 1329(1)](https://www.legislation.gov.uk/ukpga/2009/4/section/1329/1) of the amending Act) by [Corporation Tax Act 2009 (c. 4)](https://www.legislation.gov.uk/ukpga/2009/4), [Sch. 1 para. 267(2)(a)](https://www.legislation.gov.uk/ukpga/2009/4/schedule/1/paragraph/267/2/a) (with [Sch. 2 Pts. 1](https://www.legislation.gov.uk/ukpga/2009/4/schedule/2/part/1), [2](https://www.legislation.gov.uk/ukpga/2009/4/schedule/2/part/2), [para. 56](https://www.legislation.gov.uk/ukpga/2009/4/paragraph/56))
@@ -34086,6 +34048,8 @@
[^c23814411]: [S. 826(1)(fc)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/1/fc) inserted (22.8.2014 with effect in accordance with [Sch. 4 para. 17](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/17) of the amending Act) by [Finance Act 2014 (c. 26)](https://www.legislation.gov.uk/ukpga/2014/26), [Sch. 4 paras. 2(2)](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/2/2), [16](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/16); [S.I. 2014/2228](https://www.legislation.gov.uk/uksi/2014/2228), [art. 2](https://www.legislation.gov.uk/uksi/2014/2228/article/2)
[^c23814521]: [S. 826(1)(fd)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/1/fd) inserted (with effect in accordance with [Sch. 8 para. 17(1)(b)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/17/1/b) of the amending Act) by [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 8 para. 2(2)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/2/2)
[^c21629431]: Words in [s. 826(1)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/1) substituted (retrospectively) by [Finance Act 1989 (c. 26)](https://www.legislation.gov.uk/ukpga/1989/26), [s. 180(6)(7)](https://www.legislation.gov.uk/ukpga/1989/26/section/180/6/7)
[^c22802801]: Words in [s. 826(2)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/2) inserted (31.7.1998) by [Finance Act 1998 (c. 36)](https://www.legislation.gov.uk/ukpga/1998/36), [Sch. 4 para. 1(1)](https://www.legislation.gov.uk/ukpga/1998/36/schedule/4/paragraph/1/1)
@@ -34096,8 +34060,12 @@
[^c22803001]: [S. 826(2A)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/2A) repealed (with effect in accordance with Sch. 3 para. 38(5) of the repealing Act) by [Finance Act 1998 (c. 36)](https://www.legislation.gov.uk/ukpga/1998/36), [Sch. 3 para. 38(2)](https://www.legislation.gov.uk/ukpga/1998/36/schedule/3/paragraph/38/2), [Sch. 27 Pt. 3(2)](https://www.legislation.gov.uk/ukpga/1998/36/schedule/27/part/3/2), Note
[^c23814651]: Words in [s. 826(3)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/3) omitted (with effect in accordance with Sch. 1 para. 73 of the repealing Act) by virtue of [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 1 para. 52(6)(b)(i)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/1/paragraph/52/6/b/i)
[^c22802821]: Words in [s. 826(3)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/3) substituted (with effect in accordance with [Sch. 4 para. 2(2)](https://www.legislation.gov.uk/ukpga/1998/36/schedule/4/paragraph/2/2) of the amending Act) by [Finance Act 1998 (c. 36)](https://www.legislation.gov.uk/ukpga/1998/36), [Sch. 4 para. 2(1)](https://www.legislation.gov.uk/ukpga/1998/36/schedule/4/paragraph/2/1)
[^c23814671]: Words in [s. 826(3)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/3) omitted (with effect in accordance with Sch. 1 para. 73 of the repealing Act) by virtue of [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 1 para. 52(6)(b)(ii)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/1/paragraph/52/6/b/ii)
[^c22803131]: [S. 826(3A)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/3A) inserted (with effect in accordance with [s. 69(1)](https://www.legislation.gov.uk/ukpga/2000/17/section/69/1) of the amending Act) by [Finance Act 2000 (c. 17)](https://www.legislation.gov.uk/ukpga/2000/17), [Sch. 21 para. 1(3)](https://www.legislation.gov.uk/ukpga/2000/17/schedule/21/paragraph/1/3)
[^c22803281]: [1998 c. 36](https://www.legislation.gov.uk/ukpga/1998/36).
@@ -34114,6 +34082,8 @@
[^c23814431]: Words in [s. 826(3C)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/3C) substituted (22.8.2014 with effect in accordance with [Sch. 4 para. 17](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/17) of the amending Act) by [Finance Act 2014 (c. 26)](https://www.legislation.gov.uk/ukpga/2014/26), [Sch. 4 paras. 2(3)](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/2/3), [16](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/16); [S.I. 2014/2228](https://www.legislation.gov.uk/uksi/2014/2228), [art. 2](https://www.legislation.gov.uk/uksi/2014/2228/article/2)
[^c23814541]: Words in [s. 826(3C)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/3C) substituted (with effect in accordance with [Sch. 8 para. 17(1)(b)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/17/1/b) of the amending Act) by [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 8 para. 2(3)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/2/3)
[^c23813881]: [S. 826(3D)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/3D) inserted (with effect in accordance with [Sch. 25 para. 9](https://www.legislation.gov.uk/ukpga/2008/9/schedule/25/paragraph/9) of the amending Act) by [Finance Act 2008 (c. 9)](https://www.legislation.gov.uk/ukpga/2008/9), [Sch. 25 para. 7(3)](https://www.legislation.gov.uk/ukpga/2008/9/schedule/25/paragraph/7/3)
[^c23814181]: Words in [s. 826(4)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/4) substituted (1.4.2010 with effect in accordance with [s. 1184(1)](https://www.legislation.gov.uk/ukpga/2010/4/section/1184/1) of the amending Act) by [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4), [Sch. 1 para. 117(2)(a)](https://www.legislation.gov.uk/ukpga/2010/4/schedule/1/paragraph/117/2/a) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2010/4/schedule/2))
@@ -34198,6 +34168,8 @@
[^c23814451]: Words in [s. 826(8A)(a)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8A/a) substituted (22.8.2014 with effect in accordance with [Sch. 4 para. 17](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/17) of the amending Act) by [Finance Act 2014 (c. 26)](https://www.legislation.gov.uk/ukpga/2014/26), [Sch. 4 paras. 2(4)(a)](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/2/4/a), [16](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/16); [S.I. 2014/2228](https://www.legislation.gov.uk/uksi/2014/2228), [art. 2](https://www.legislation.gov.uk/uksi/2014/2228/article/2)
[^c23814561]: Words in [s. 826(8A)(a)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8A/a) substituted (with effect in accordance with [Sch. 8 para. 17(1)(b)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/17/1/b) of the amending Act) by [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 8 para. 2(4)(a)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/2/4/a)
[^c22803171]: [S. 826(8A)(b)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8A/b) substituted (with effect in accordance with [s. 69(1)](https://www.legislation.gov.uk/ukpga/2000/17/section/69/1) of the amending Act) by [Finance Act 2000 (c. 17)](https://www.legislation.gov.uk/ukpga/2000/17), [Sch. 21 para. 1(4)(b)](https://www.legislation.gov.uk/ukpga/2000/17/schedule/21/paragraph/1/4/b)
[^c22803471]: Words in [s. 826(8A)(b)(ii)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8A/b/ii) inserted (with effect in accordance with [Sch. 14 para. 5](https://www.legislation.gov.uk/ukpga/2002/23/schedule/14/paragraph/5) of the amending Act) by [Finance Act 2002 (c. 23)](https://www.legislation.gov.uk/ukpga/2002/23), [Sch. 14 para. 1(4)(b)](https://www.legislation.gov.uk/ukpga/2002/23/schedule/14/paragraph/1/4/b)
@@ -34212,6 +34184,8 @@
[^c23814471]: Words in [s. 826(8A)(b)(ii)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8A/b/ii) inserted (22.8.2014 with effect in accordance with [Sch. 4 para. 17](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/17) of the amending Act) by [Finance Act 2014 (c. 26)](https://www.legislation.gov.uk/ukpga/2014/26), [Sch. 4 paras. 2(4)(b)](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/2/4/b), [16](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/16); [S.I. 2014/2228](https://www.legislation.gov.uk/uksi/2014/2228), [art. 2](https://www.legislation.gov.uk/uksi/2014/2228/article/2)
[^c23814581]: Words in [s. 826(8A)(b)(ii)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8A/b/ii) inserted (with effect in accordance with [Sch. 8 para. 17(1)(b)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/17/1/b) of the amending Act) by [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 8 para. 2(4)(b)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/2/4/b)
[^c23813901]: Words in [s. 826(8A)(b)(ii)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8A/b/ii) inserted (with effect in accordance with [Sch. 25 para. 9](https://www.legislation.gov.uk/ukpga/2008/9/schedule/25/paragraph/9) of the amending Act) by [Finance Act 2008 (c. 9)](https://www.legislation.gov.uk/ukpga/2008/9), [Sch. 25 para. 7(4)](https://www.legislation.gov.uk/ukpga/2008/9/schedule/25/paragraph/7/4)
[^c22803191]: [S. 826(8BA)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8BA) inserted (with effect in accordance with [s. 69(1)](https://www.legislation.gov.uk/ukpga/2000/17/section/69/1) of the amending Act) by [Finance Act 2000 (c. 17)](https://www.legislation.gov.uk/ukpga/2000/17), [Sch. 21 para. 1(5)](https://www.legislation.gov.uk/ukpga/2000/17/schedule/21/paragraph/1/5)
@@ -34228,6 +34202,8 @@
[^c23814491]: Words in [s. 826(8BA)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8BA) inserted (22.8.2014 with effect in accordance with [Sch. 4 para. 17](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/17) of the amending Act) by [Finance Act 2014 (c. 26)](https://www.legislation.gov.uk/ukpga/2014/26), [Sch. 4 paras. 2(5)](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/2/5), [16](https://www.legislation.gov.uk/ukpga/2014/26/schedule/4/paragraph/16); [S.I. 2014/2228](https://www.legislation.gov.uk/uksi/2014/2228), [art. 2](https://www.legislation.gov.uk/uksi/2014/2228/article/2)
[^c23814601]: Words in [s. 826(8BA)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8BA) inserted (with effect in accordance with [Sch. 8 para. 17(1)(b)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/17/1/b) of the amending Act) by [Finance Act 2016 (c. 24)](https://www.legislation.gov.uk/ukpga/2016/24), [Sch. 8 para. 2(5)](https://www.legislation.gov.uk/ukpga/2016/24/schedule/8/paragraph/2/5)
[^c23813921]: Words in [s. 826(8BA)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8BA) inserted (with effect in accordance with [Sch. 25 para. 9](https://www.legislation.gov.uk/ukpga/2008/9/schedule/25/paragraph/9) of the amending Act) by [Finance Act 2008 (c. 9)](https://www.legislation.gov.uk/ukpga/2008/9), [Sch. 25 para. 7(5)](https://www.legislation.gov.uk/ukpga/2008/9/schedule/25/paragraph/7/5)
[^c22803391]: Words in [s. 826(8BA)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8BA) inserted (with effect in accordance with [s. 70(1)](https://www.legislation.gov.uk/ukpga/2001/9/section/70/1) of the amending Act) by [Finance Act 2001 (c. 9)](https://www.legislation.gov.uk/ukpga/2001/9), [Sch. 23 para. 3(5)(b)](https://www.legislation.gov.uk/ukpga/2001/9/schedule/23/paragraph/3/5/b)
@@ -35618,24 +35594,6 @@
[^c22746361]: [Sch. 28B](https://www.legislation.gov.uk/ukpga/1988/1/schedule/28B) inserted (1.5.1995) by [Finance Act 1995 (c. 4)](https://www.legislation.gov.uk/ukpga/1995/4), [s. 70(2)](https://www.legislation.gov.uk/ukpga/1995/4/section/70/2), [Sch. 14](https://www.legislation.gov.uk/ukpga/1995/4/schedule/14)
[^c22732981]: Words in [s. 231B(4)(b)](https://www.legislation.gov.uk/ukpga/1988/1/section/231B/4/b) repealed (with effect in accordance with Sch. 4 para. 26(2), Sch. 8 Pt. 2(10) Note of the repealing Act) by [Finance (No. 2) Act 1997 (c. 58)](https://www.legislation.gov.uk/ukpga/1997/58), [Sch. 4 para 26(1)](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/26/1), [Sch. 8 Pt. 2(10)](https://www.legislation.gov.uk/ukpga/1997/58/schedule/8/part/2/10)
[^c23395801]: Words in [s. 231B(4)(b)](https://www.legislation.gov.uk/ukpga/1988/1/section/231B/4/b) substituted (6.4.2005 with effect in accordance with [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1) of the amending Act) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [Sch. 1 para. 116](https://www.legislation.gov.uk/ukpga/2005/5/schedule/1/paragraph/116) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))
[^c23396351]: [S. 231B(12)](https://www.legislation.gov.uk/ukpga/1988/1/section/231B/12): definition of "tax advantage" substituted (6.4.2007 with effect in accordance with [s. 1034(1)](https://www.legislation.gov.uk/ukpga/2007/3/section/1034/1) of the amending Act) by [Income Tax Act 2007 (c. 3)](https://www.legislation.gov.uk/ukpga/2007/3), [Sch. 1 para. 26](https://www.legislation.gov.uk/ukpga/2007/3/schedule/1/paragraph/26)
[^c23397471]: [S. 231B(12)](https://www.legislation.gov.uk/ukpga/1988/1/section/231B/12): words in definition of "tax advantage" substituted (1.4.2010 with effect in accordance with [s. 1184(1)](https://www.legislation.gov.uk/ukpga/2010/4/section/1184/1) of the amending Act) by [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4), [Sch. 1 para. 19](https://www.legislation.gov.uk/ukpga/2010/4/schedule/1/paragraph/19) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2010/4/schedule/2))
[^c23397941]: Word at the end of s. 231B(4)(b) inserted (19.7.2011) by [Finance Act 2011 (c. 11)](https://www.legislation.gov.uk/ukpga/2011/11), [Sch. 26 para. 1(2)(a)(i)](https://www.legislation.gov.uk/ukpga/2011/11/schedule/26/paragraph/1/2/a/i)
[^c23397981]: [S. 231B(4)(d)](https://www.legislation.gov.uk/ukpga/1988/1/section/231B/4/d) and preceding word repealed (19.7.2011) by [Finance Act 2011 (c. 11)](https://www.legislation.gov.uk/ukpga/2011/11), [Sch. 26 para. 1(2)(a)(ii)](https://www.legislation.gov.uk/ukpga/2011/11/schedule/26/paragraph/1/2/a/ii)
[^c21890661]: [Pt. 6](https://www.legislation.gov.uk/ukpga/1988/1/part/6) modified by [Airports Act 1986 (c. 31)](https://www.legislation.gov.uk/ukpga/1986/31), [s. 77(3)](https://www.legislation.gov.uk/ukpga/1986/31/section/77/3) (as substituted (with effect in accordance with [s. 105(1)](https://www.legislation.gov.uk/ukpga/1996/8/section/105/1) of the amending Act) by [Finance Act 1996 (c. 8)](https://www.legislation.gov.uk/ukpga/1996/8), [Sch. 14 para. 3](https://www.legislation.gov.uk/ukpga/1996/8/schedule/14/paragraph/3) (with [Sch. 15](https://www.legislation.gov.uk/ukpga/1996/8/schedule/15)))
[^c21890681]: [Pt. 6](https://www.legislation.gov.uk/ukpga/1988/1/part/6) modified by [Gas Act 1986 (c. 44)](https://www.legislation.gov.uk/ukpga/1986/44), [s. 60(3)](https://www.legislation.gov.uk/ukpga/1986/44/section/60/3) (as substituted (with effect in accordance with [s. 105(1)](https://www.legislation.gov.uk/ukpga/1996/8/section/105/1) of the amending Act) by [Finance Act 1996 (c. 8)](https://www.legislation.gov.uk/ukpga/1996/8), [Sch. 14 para. 4](https://www.legislation.gov.uk/ukpga/1996/8/schedule/14/paragraph/4) (with [Sch. 15](https://www.legislation.gov.uk/ukpga/1996/8/schedule/15)))
[^c21890911]: [Pt. 6](https://www.legislation.gov.uk/ukpga/1988/1/part/6) modified by [British Steel Act 1988 (c. 35)](https://www.legislation.gov.uk/ukpga/1988/35), [s. 11(7)](https://www.legislation.gov.uk/ukpga/1988/35/section/11/7) (as substituted (with effect in accordance with [s. 105(1)](https://www.legislation.gov.uk/ukpga/1996/8/section/105/1) of the amending Act) by [Finance Act 1996 (c. 8)](https://www.legislation.gov.uk/ukpga/1996/8), [Sch. 14 para. 55](https://www.legislation.gov.uk/ukpga/1996/8/schedule/14/paragraph/55) (with [Sch. 15](https://www.legislation.gov.uk/ukpga/1996/8/schedule/15)))
[^c21584551]: [S. 257BA](https://www.legislation.gov.uk/ukpga/1988/1/section/257BA), [257BB](https://www.legislation.gov.uk/ukpga/1988/1/section/257BB) substituted for s. 257B (16.7.1992 with application in relation to tax for the year 1993-94 and subsequent years of assessment) by [Finance (No. 2) Act 1992 (c. 48)](https://www.legislation.gov.uk/ukpga/1992/48), [s. 20](https://www.legislation.gov.uk/ukpga/1992/48/section/20), [Sch. 5 paras.2](https://www.legislation.gov.uk/ukpga/1992/48/schedule/5/paragraph/2), [10](https://www.legislation.gov.uk/ukpga/1992/48/schedule/5/paragraph/10).
[^c21584561]: 1989 s.33(10).
@@ -35660,26 +35618,6 @@
[^c21620031]: 1989 s.109(1).
[^c21628891]: Source—1975 (No.2) s.47(3)(a)
[^c22801891]: Words in [s. 824(2)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/2) substituted (retrospectively) by [Finance Act 1988 (c. 39)](https://www.legislation.gov.uk/ukpga/1988/39) s. 146, Sch.13 para.7(c)
[^c22801921]: Words in [s. 824(2)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/2) repealed (on and after 18.8.1989) by [Finance Act 1989 (c. 26)](https://www.legislation.gov.uk/ukpga/1989/26), [ss. 178(7)](https://www.legislation.gov.uk/ukpga/1989/26/section/178/7), [187](https://www.legislation.gov.uk/ukpga/1989/26/section/187), [Sch.17 Part 10](https://www.legislation.gov.uk/ukpga/1989/26/schedule/17/part/10); [S.I. 1989/1298](https://www.legislation.gov.uk/uksi/1989/1298)
[^c22801901]: Words in [s. 824(2)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/2) substituted (retrospectively) by [Finance Act 1988 (c. 39)](https://www.legislation.gov.uk/ukpga/1988/39), [s. 146](https://www.legislation.gov.uk/ukpga/1988/39/section/146), [Sch.13 para.7(c)](https://www.legislation.gov.uk/ukpga/1988/39/schedule/13/paragraph/7/c)
[^c23813091]: Words in [s. 824(4A)(b)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/4A/b) substituted (6.4.2005 with effect in accordance with [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1) of the amending Act) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [Sch. 1 para. 331(2)](https://www.legislation.gov.uk/ukpga/2005/5/schedule/1/paragraph/331/2) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))
[^c23813181]: Words in [s. 824(4A)(b)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/4A/b) inserted (with effect in accordance with [s. 34(2)](https://www.legislation.gov.uk/ukpga/2008/9/section/34/2) of the amending Act) by [Finance Act 2008 (c. 9)](https://www.legislation.gov.uk/ukpga/2008/9), [Sch. 12 para. 15](https://www.legislation.gov.uk/ukpga/2008/9/schedule/12/paragraph/15)
[^c23813201]: Words in [s. 824(4A)(b)](https://www.legislation.gov.uk/ukpga/1988/1/section/824/4A/b) substituted (with effect in accordance with [Sch. 19 para. 14](https://www.legislation.gov.uk/ukpga/2009/10/schedule/19/paragraph/14) of the amending Act) by [Finance Act 2009 (c. 10)](https://www.legislation.gov.uk/ukpga/2009/10), [Sch. 19 para. 10(a)](https://www.legislation.gov.uk/ukpga/2009/10/schedule/19/paragraph/10/a)
[^c21629221]: *Repealed by* 1989 s.178(7)*and* 187*and* Sch.17 Part X*from* 18*August* 1989 (*see* S.I. [1989 No.1298](https://www.legislation.gov.uk/ukcm/1989/1298)).
[^c21629261]: *See* Table I*in* Vol.1*and see* 1989 s.178*for further regulation making powers and* Part III Vol.5*for regulations.*
[^c21629281]: *And see* Sch.30 para.1(9).
[^c21631581]: Source—1970 Sch.2
[^c21631591]: [1952 c.10](https://www.legislation.gov.uk/ukpga/1952/10).
@@ -38208,23 +38146,23 @@
#### Application of this Chapter etc. to policies and contracts in which persons other than companies are interested
#### Transfers of business: deemed periodical returns
#### Qualifying interests in land held jointly
#### Information: supplementary provisions
#### Cessation of approval: general provisions.
#### Section 590: supplementary provisions.
#### Section 591C: supplementary.
#### Exemption from tax in respect of qualifying premiums.
#### Interpretation.
#### Definition of insurance company.
#### Election as to tax exempt business.
#### Payments to unmarried minor children of settlor.
#### Revocable settlements allowing reversion of property.
#### Exception for sale and repurchase of securities.
#### Settlements made after 6th April 1965.
#### General definition of offshore fund
#### Deductions: asset transferred within group.
@@ -38238,12 +38176,12 @@
#### Recovery of tax credits incorrectly paid.
#### Interpretation.
#### Repayment supplements: companies.
#### Interest on payments in respect of corporation tax and meaning of “the material date".
#### Application of Income Tax Acts to public departments and avoidance of exempting provisions.
#### Interest on payments in respect of corporation tax and meaning of “the material date".
#### VAT penalties etc.
#### Territorial sea . . . .
@@ -38254,481 +38192,481 @@
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Adjustment of profits on averaging claim
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Determinations requiring the sanction of the Board.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assessment, recovery and postponement of supplementary charge
#### Introduction
#### Certified unit trusts: distributions.
#### Power to inspect documents.
#### Relief for individuals.
#### Qualifying vehicles
#### Conditions for approval of retirement benefit schemes.
#### Introduction
#### Tax year
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assessment, recovery and postponement of supplementary charge
#### Revocable settlements allowing release of obligation.
#### Charge on profits.
#### The property managing subsidiaries requirement
#### Payments to unmarried minor children of settlor.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Certified unit trusts: distributions.
#### Returns where it is not established whether acceptable distribution policy applies.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in ownership of company with investment business: deductions generally
#### Change in ownership of company carrying on property business.
#### Provision not at arm’s length.
#### Sections 774B and 774D: power to provide further exceptions
#### Sale by individual of income derived from his personal activities.
#### Assets leased to traders and others.
#### Assets leased to traders and others.
#### The approved amount: mileage allowance payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
#### Section 785B: expectation that relevant capital payment will not be paid
#### Restriction of relief for payments of interest.
#### Limits on credit: minimisation of the foreign tax.
#### Reduction of United Kingdom taxes by amount of credit due.
#### Recovery of tax credits incorrectly paid.
#### Recovery of tax credits incorrectly paid.
#### Arrangements to avoid section 812.
#### Disposals and acquisitions of company loan relationships with or without interest.
#### Insurance companies: allocation of expenses etc in computations under Case I of Schedule D.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on payments in respect of corporation tax and meaning of “the material date".
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### The approved amount: mileage allowance payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provision not at arm’s length.
#### Power to inspect documents.
#### Relief for individuals.
#### Qualifying interests in land held jointly
#### Conditions for approval of retirement benefit schemes.
#### The approved amount: passenger payments
#### Employment
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sections 774B and 774D: exceptions
#### Leased assets subject to hire-purchase agreements.
#### Limits on credit: income tax.
#### Foreign tax on items giving rise to a non-trading credit: intangible fixed assets
#### Introduction to section 807C
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in company ownership: postponed corporation tax.
#### Taxation in respect of other business.
#### Loans to participators etc.
#### Dividends paid to investment trusts.
#### Deemed manufactured payments in the case of stock lending arrangements.
#### Treatment of umbrella funds
#### Application of this Chapter etc. to policies and contracts in which persons other than companies are interested
#### Returns.
#### Cessation of approval: general provisions.
#### Termination of relief under this Chapter, and transitional provisions.
#### Application of Income Tax Acts to public departments and avoidance of exempting provisions.
#### Deemed manufactured payments in the case of stock lending arrangements.
## [SCHEDULE 19A
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Approval of schemes.
#### Allowances for expenditure on purchase of patent rights: post-31st March 1986 expenditure.
#### Overseas life assurance business: life policies.
#### Relief by agreement with other territories.
#### Commencement.
#### Interest on payments in respect of corporation tax and meaning of “the material date".
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Imputation of chargeable profits and creditable tax of controlled foreign companies
#### Special rule for computing chargeable profits.
#### Tax credits under Part 1 of Tax Credits Act 2002
#### Rent factoring of leases of plant or machinery
#### Provision not at arm’s length.
#### Tariff receipts and tax-exempt tariffing receipts
#### The Arbitration Convention.
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
#### Application of Income Tax Acts to public departments and avoidance of exempting provisions.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Territorial sea . . . .
#### Interpretation of Income Tax Acts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying vehicles
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deemed interest: cash collateral under stock lending arrangements
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in ownership of company carrying on property business.
#### Foreign tax on items giving rise to a non-trading credit: intangible fixed assets
#### Dividends paid out of transferred profits.
#### Introduction to section 807E
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### Amount of post-commencement supplement for a post-commencement period
#### Treatment of price differential on sale and repurchase of securities.
#### Sales etc. at an undervalue or overvalue.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Insurance companies carrying on more than one category of business: restriction of credit.
#### Allowances for expenditure on purchase of patent rights: post-31st March 1986 expenditure.
#### Reduced loss relief for additions to non-profit funds
#### Effect of appointment or arrangements under section 659B.
#### Interpretation of the Corporation Tax Acts etc.
#### Commencement.
#### Settlements made after 6th April 1965.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### Change in ownership of company with investment business: deductions generally
#### Interpretation of credit code.
#### Insurance companies carrying on more than one category of business: restriction of credit.
#### Disposals and acquisitions of company loan relationships with or without interest.
#### Introduction to section 807E
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
#### Introduction
#### Tax year
#### Assets leased to traders and others.
#### Qualifying vehicles
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Revocable settlements allowing release of obligation.
#### Charge on profits.
#### The property managing subsidiaries requirement
#### Payments to unmarried minor children of settlor.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### About this Schedule
#### Conditions for tax exempt business.
#### Close companies.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Returns where it is not established whether acceptable distribution policy applies.
#### Sales etc. at an undervalue or overvalue.
#### Schemes and arrangements designed to increase relief
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in ownership of company with investment business: deductions generally
#### Change in ownership of company carrying on property business.
#### Provision not at arm’s length.
#### Sections 774B and 774D: power to provide further exceptions
#### Sale by individual of income derived from his personal activities.
#### Assets leased to traders and others.
#### Assets leased to traders and others.
#### The approved amount: mileage allowance payments
#### Application of Income Tax Acts to public departments and avoidance of exempting provisions.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
#### Section 785B: expectation that relevant capital payment will not be paid
#### Restriction of relief for payments of interest.
#### Limits on credit: minimisation of the foreign tax.
#### Reduction of United Kingdom taxes by amount of credit due.
#### Recovery of tax credits incorrectly paid.
#### Recovery of tax credits incorrectly paid.
#### Interpretation of Income Tax Acts.
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Accounting periods
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dividends paid out of transferred profits.
#### Supplement in respect of a post-commencement period
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### Disposals and acquisitions of company loan relationships with or without interest.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### Amount of post-commencement supplement for a post-commencement period
#### The non-qualifying pool
#### Supplement in respect of a pre-commencement accounting period
#### Onshore pooling.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Supplement in respect of a pre-commencement accounting period
#### Relief for rent etc. not paid.
#### Costs of establishing share option or profit sharing schemes: relief.
#### Approved share incentive plans
#### Definitions.
#### Relief for contributions in respect of share option gains.
#### Relief for necessary expenses.
#### U.K. company distributions not generally chargeable to corporation tax.
#### Election by company paying dividend.
#### Procedure for making election.
#### Qualifying policies.
#### Eligibility for relief.
#### Second loans.
#### Maximum benefits payable to members.
#### Interpretation of Income Tax Acts.
#### Introduction to section 807C
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Venture capital trusts.
#### Interpretation of Income Tax Acts.
#### The non-qualifying pool
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction on deduction of interest or dividends from trading income.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Tax Acts.
#### Interpretation of Income Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Stock lending.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to inspect documents.
#### Arrangements to avoid section 812.
#### Disposals and acquisitions of company loan relationships with or without interest.
#### Insurance companies: allocation of expenses etc in computations under Case I of Schedule D.
#### Interest on tax overpaid.
#### Interest on payments in respect of corporation tax and meaning of “the material date".
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### The approved amount: mileage allowance payments
#### Interpretation of Income Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “UK property business” and “overseas property business”
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### Qualifying counselling services etc.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provision not at arm’s length.
#### Power to inspect documents.
#### Conditions for approval of retirement benefit schemes.
#### Employment
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sections 774B and 774D: exceptions
#### Leased assets subject to hire-purchase agreements.
#### Limits on credit: income tax.
#### Foreign tax on items giving rise to a non-trading credit: intangible fixed assets
#### Introduction to section 807C
#### Interest on tax overpaid.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in company ownership: postponed corporation tax.
#### Taxation in respect of other business.
#### Loans to participators etc.
#### Dividends paid to investment trusts.
#### Settlements made before 7th April 1965 but after 9th April 1946.
#### Treatment of umbrella funds
#### Application of this Chapter etc. to policies and contracts in which persons other than companies are interested
#### Returns.
#### Cessation of approval: general provisions.
#### Termination of relief under this Chapter, and transitional provisions.
#### Application of Income Tax Acts to public departments and avoidance of exempting provisions.
#### Deemed manufactured payments in the case of stock lending arrangements.
## [SCHEDULE 19A
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Approval of schemes.
#### Allowances for expenditure on purchase of patent rights: post-31st March 1986 expenditure.
#### Overseas life assurance business: life policies.
#### Business entertaining expenses.
#### Taxation in respect of other business.
#### Interest on payments in respect of corporation tax and meaning of “the material date".
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Imputation of chargeable profits and creditable tax of controlled foreign companies
#### Special rule for computing chargeable profits.
#### Tax credits under Part 1 of Tax Credits Act 2002
#### Rent factoring of leases of plant or machinery
#### Provision not at arm’s length.
#### Tariff receipts and tax-exempt tariffing receipts
#### The Arbitration Convention.
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
#### Application of Income Tax Acts to public departments and avoidance of exempting provisions.
#### Interpretation of the Corporation Tax Acts etc.
#### Territorial sea . . . .
#### Interpretation of Income Tax Acts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying vehicles
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deemed interest: cash collateral under stock lending arrangements
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in ownership of company carrying on property business.
#### Foreign tax on items giving rise to a non-trading credit: intangible fixed assets
#### Dividends paid out of transferred profits.
#### Introduction to section 807E
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### Amount of post-commencement supplement for a post-commencement period
#### Treatment of price differential on sale and repurchase of securities.
#### Sales etc. at an undervalue or overvalue.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Insurance companies carrying on more than one category of business: restriction of credit.
#### Section 432B apportionment: supplementary provisions.
#### Reduced loss relief for additions to non-profit funds
#### Effect of appointment or arrangements under section 659B.
#### Definition of insurance company.
#### Commencement.
#### Settlements made after 6th April 1965.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### Change in ownership of company with investment business: deductions generally
#### Interpretation of credit code.
#### Insurance companies carrying on more than one category of business: restriction of credit.
#### Disposals and acquisitions of company loan relationships with or without interest.
#### Introduction to section 807E
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
#### Introduction
#### Assets leased to traders and others.
#### Qualifying vehicles
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### About this Schedule
#### Conditions for tax exempt business.
#### Close companies.
#### Repayment supplements: companies.
#### Sales etc. at an undervalue or overvalue.
#### Schemes and arrangements designed to increase relief
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of Income Tax Acts to public departments and avoidance of exempting provisions.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Income Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Accounting periods
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dividends paid out of transferred profits.
#### Supplement in respect of a post-commencement period
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### Disposals and acquisitions of company loan relationships with or without interest.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### Amount of post-commencement supplement for a post-commencement period
#### The non-qualifying pool
#### Supplement in respect of a pre-commencement accounting period
#### Onshore pooling.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Supplement in respect of a pre-commencement accounting period
#### Relief for rent etc. not paid.
#### Costs of establishing share option or profit sharing schemes: relief.
#### Employees seconded to charities and educational establishments.
#### Paying agents.
#### Exemptions from section 148.
#### Relief for necessary expenses.
#### U.K. company distributions not generally chargeable to corporation tax.
#### Section 209(3AA): link to shares of company or associated company
#### Procedure for making election.
#### Provisions supplementary to section 247.
#### Early conversion or surrender of life policies.
#### Second loans.
#### Maximum benefits payable to members.
#### Interpretation of Income Tax Acts.
#### Introduction to section 807C
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Venture capital trusts.
#### Interpretation of Income Tax Acts.
#### The non-qualifying pool
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction on deduction of interest or dividends from trading income.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Tax Acts.
#### Interpretation of Income Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Stock lending.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to inspect documents.
#### Arrangements to avoid section 812.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Income Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “UK property business” and “overseas property business”
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying counselling services etc.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Corporation Tax Acts etc.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
@@ -38994,217 +38932,997 @@
#### Territorial sea and designated areas.
#### Farming and market gardening: relief for fluctuating profits.
#### Taxation of profit-related pay.
#### Life assurance premiums paid by employer
#### Creative artists: relief for fluctuating profits
#### Interpretation.
#### Substitution of security: supplemental.
#### UK property business losses
#### Savings, transitional provisions, consequential amendments and repeals.
##### 469
- (1) This section applies to—
- (a) any unit trust scheme that is neither an authorised unit trust nor an umbrella scheme ; and
- (b) any authorised unit trust to which, by virtue of subsection (5) of section 468, that section does not apply,
except where the trustees of the scheme are not resident in the United Kingdom.
- (2) Income arising to the trustees of the scheme shall be regarded for the purposes of the Tax Acts as income of the trustees (and not as income of the unit holders); and the trustees (and not the unit holders) shall be regarded as the persons to or on whom allowances or charges are to be made under the provisions of those Acts relating to relief for capital expenditure.
- (3) For the purposes of the Tax Acts the unit holders shall be treated as receiving annual payments (made by the trustees under deduction of tax) in proportion to their rights.
- (4) The total amount of those annual payments in respect of any distribution period shall be the amount which, after deducting income tax at the basic rate in force for the year of assessment in which the payments are treated as made, is equal to the aggregate amount shown in the accounts of the scheme as income available for payment to unit holders or for investment.
- (5) The date on which the annual payments are treated as made shall be the date or latest date provided by the terms of the scheme for any distribution in respect of the distribution period in question, except that, if—
- (a) the date so provided is more than 12 months after the end of the period; or
- (b) no date is so provided,
the date on which the payments are treated as made shall be the last day of the period.
- (5A) Subsection (5B) below applies where for any year of assessment—
- (a) the trustees are (or, apart from this subsection, would be) chargeable under section 350 with tax on payments treated as made by them under subsection (3) above, and
- (b) there is an uncredited surplus in the case of the scheme.
- (5B) Where this subsection applies, the amount on which the trustees would otherwise be so chargeable shall be reduced—
- (a) if the surplus is greater than that amount, to nil, or
- (b) if it is not, by an amount equal to the surplus.
- (5C) For the purposes of subsections (5A) and (5B) above whether there is an uncredited surplus for a year of assessment in the case of a scheme (and, if so, its amount) shall be ascertained by—
- (a) determining, for each earlier year of assessment in which the income on which the trustees were chargeable to tax by virtue of subsection (2) above exceeded the amount treated by subsection (3) above as annual payments received by the unit holders, the amount of the excess,
- (b) aggregating the amounts determined in the case of the scheme under paragraph (a) above, and
- (c) deducting from that aggregate the total of any reductions made in the case of the scheme under subsection (5B) above for earlier years of assessment.
- (5D) The references in subsection (5C)(a) above to subsections (2) and (3) above include references to subsections (2) and (3) of section 354A of the 1970 Act.
- (6) In this section “*distribution period*”means a period beginning on or after 1st April 1987 over which income from the investments subject to the trusts is aggregated for the purposes of ascertaining the amount available for distribution to unit holders, but—
- (a) if the scheme does not make provision for distribution periods, then for the purposes of this section its distribution periods shall be taken to be successive periods of 12 months the first of which began with the day on which the scheme took effect; and
- (b) if the scheme makes provision for distribution periods of more than 12 months, then for the purposes of this section each of those periods shall be taken to be divided into two (or more) distribution periods, the second succeeding the first after 12 months (and so on for any further periods).
- (6A) In this section “*umbrella scheme*” has the same meaning as in section 468.
- (7) In this section “*unit trust scheme*” has the same meaning as in the Financial Services Act 1986, except that the Treasury may by regulations provide that any scheme of a description specified in the regulations shall be treated as not being a unit trust scheme for the purposes of this section.
- (8) Regulations under this section may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.
- (9) Sections 686 and 687 shall not apply to a scheme to which this section applies.
- (10) Section 720(5) shall not apply in relation to profits or gains treated as received by the trustees of a scheme to which this section applies if or to the extent that those profits or gains represent accruals of interest (within the meaning of Chapter II of Part XVII) which are treated as income in the accounts of the scheme.
- (11) This section shall have effect in relation to distribution periods beginning on or after 6th April 1987.
##### 469
- (1) This section applies to—
- (a) any unit trust scheme that is not an authorised unit trust; and
- (b) any authorised unit trust to which, by virtue of subsection (5) of section 468, that section does not apply,
except where the trustees of the scheme are not resident in the United Kingdom.
- (2) Income arising to the trustees of the scheme shall be regarded for the purposes of the Tax Acts as income of the trustees (and not as income of the unit holders); and the trustees (and not the unit holders) shall be regarded as the persons to or on whom allowances or charges are to be made under the provisions of those Acts relating to relief for capital expenditure.
- (3) For the purposes of the Tax Acts the unit holders shall be treated as receiving annual payments (made by the trustees under deduction of tax) in proportion to their rights.
- (4) The total amount of those annual payments in respect of any distribution period shall be the amount which, after deducting income tax at the basic rate in force for the year of assessment in which the payments are treated as made, is equal to the aggregate amount shown in the accounts of the scheme as income available for payment to unit holders or for investment.
- (5) The date on which the annual payments are treated as made shall be the date or latest date provided by the terms of the scheme for any distribution in respect of the distribution period in question, except that, if—
- (a) the date so provided is more than 12 months after the end of the period; or
- (b) no date is so provided,
the date on which the payments are treated as made shall be the last day of the period.
- (5A) Subsection (5B) below applies where for any year of assessment—
- (a) the trustees are (or, apart from this subsection, would be) chargeable under section 350 with tax on payments treated as made by them under subsection (3) above, and
- (b) there is an uncredited surplus in the case of the scheme.
- (5B) Where this subsection applies, the amount on which the trustees would otherwise be so chargeable shall be reduced—
- (a) if the surplus is greater than that amount, to nil, or
- (b) if it is not, by an amount equal to the surplus.
- (5C) For the purposes of subsections (5A) and (5B) above whether there is an uncredited surplus for a year of assessment in the case of a scheme (and, if so, its amount) shall be ascertained by—
- (a) determining, for each earlier year of assessment in which the income on which the trustees were chargeable to tax by virtue of subsection (2) above exceeded the amount treated by subsection (3) above as annual payments received by the unit holders, the amount of the excess,
- (b) aggregating the amounts determined in the case of the scheme under paragraph (a) above, and
- (c) deducting from that aggregate the total of any reductions made in the case of the scheme under subsection (5B) above for earlier years of assessment.
- (5D) The references in subsection (5C)(a) above to subsections (2) and (3) above include references to subsections (2) and (3) of section 354A of the 1970 Act.
- (6) In this section “*distribution period*” has the same meaning as in section 468, but—
- (a) if the scheme does not make provision for distribution periods, then for the purposes of this section its distribution periods shall be taken to be successive periods of 12 months the first of which began with the day on which the scheme took effect; and
- (b) if the scheme makes provision for distribution periods of more than 12 months, then for the purposes of this section each of those periods shall be taken to be divided into two (or more) distribution periods, the second succeeding the first after 12 months (and so on for any further periods).
- (7) In this section “*unit trust scheme*” has the same meaning as in the Financial Services Act 1986, except that the Treasury may by regulations provide that any scheme of a description specified in the regulations shall be treated as not being a unit trust scheme for the purposes of this section.
- (8) Regulations under this section may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.
- (9) Sections 686 and 687 shall not apply to a scheme to which this section applies.
- (10) Section 720(5) shall not apply in relation to profits or gains treated as received by the trustees of a scheme to which this section applies if or to the extent that those profits or gains represent accruals of interest (within the meaning of Chapter II of Part XVII) which are treated as income in the accounts of the scheme.
- (11) This section shall have effect in relation to distribution periods beginning on or after 6th April 1987.
#### Miscellaneous charges (list for the purposes of certain provisions that formerly referred to Case VI of Schedule D)
#### Commencement.
#### Reduction in chargeable profits following an exempt period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Territorial sea and designated areas.
#### Interpretation of the Corporation Tax Acts etc.
#### Miscellaneous charges (list for the purposes of certain provisions that formerly referred to Case VI of Schedule D)
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### How averaging claim is given effect
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief where borrower deceased.
#### Substitution of security: supplemental.
#### Relevant loan interest.
#### Second loans.
#### Loans to participators etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER 1B — PROVISIONS AS TO CAPITAL SUMS PAID TO SETTLOR
### CHAPTER 1C — LIABILITY OF TRUSTEES
#### About this Schedule
#### About this Schedule
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Insurance companies: allocation of expenses etc in computations under Case I of Schedule D.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Adjustment of profits on averaging claim
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### Introduction
#### Introduction
## Part IV — Disallowed debits and non-trading deficits
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying vehicles
#### Employment
#### The approved amount: mileage allowance payments
#### Form of relief.
#### Interest which never has been relevant loan interest etc.
#### Savings, transitional provisions, consequential amendments and repeals.
##### 469
- (1) This section applies to—
- (a) any unit trust scheme that is neither an authorised unit trust nor an umbrella scheme ; and
- (b) any authorised unit trust to which, by virtue of subsection (5) of section 468, that section does not apply,
except where the trustees of the scheme are not resident in the United Kingdom.
- (2) Income arising to the trustees of the scheme shall be regarded for the purposes of the Tax Acts as income of the trustees (and not as income of the unit holders); and the trustees (and not the unit holders) shall be regarded as the persons to or on whom allowances or charges are to be made under the provisions of those Acts relating to relief for capital expenditure.
- (3) For the purposes of the Tax Acts the unit holders shall be treated as receiving annual payments (made by the trustees under deduction of tax) in proportion to their rights.
- (4) The total amount of those annual payments in respect of any distribution period shall be the amount which, after deducting income tax at the basic rate in force for the year of assessment in which the payments are treated as made, is equal to the aggregate amount shown in the accounts of the scheme as income available for payment to unit holders or for investment.
- (5) The date on which the annual payments are treated as made shall be the date or latest date provided by the terms of the scheme for any distribution in respect of the distribution period in question, except that, if—
- (a) the date so provided is more than 12 months after the end of the period; or
- (b) no date is so provided,
the date on which the payments are treated as made shall be the last day of the period.
- (5A) Subsection (5B) below applies where for any year of assessment—
- (a) the trustees are (or, apart from this subsection, would be) chargeable under section 350 with tax on payments treated as made by them under subsection (3) above, and
- (b) there is an uncredited surplus in the case of the scheme.
- (5B) Where this subsection applies, the amount on which the trustees would otherwise be so chargeable shall be reduced—
- (a) if the surplus is greater than that amount, to nil, or
- (b) if it is not, by an amount equal to the surplus.
- (5C) For the purposes of subsections (5A) and (5B) above whether there is an uncredited surplus for a year of assessment in the case of a scheme (and, if so, its amount) shall be ascertained by—
- (a) determining, for each earlier year of assessment in which the income on which the trustees were chargeable to tax by virtue of subsection (2) above exceeded the amount treated by subsection (3) above as annual payments received by the unit holders, the amount of the excess,
- (b) aggregating the amounts determined in the case of the scheme under paragraph (a) above, and
- (c) deducting from that aggregate the total of any reductions made in the case of the scheme under subsection (5B) above for earlier years of assessment.
- (5D) The references in subsection (5C)(a) above to subsections (2) and (3) above include references to subsections (2) and (3) of section 354A of the 1970 Act.
- (6) In this section “*distribution period*”means a period beginning on or after 1st April 1987 over which income from the investments subject to the trusts is aggregated for the purposes of ascertaining the amount available for distribution to unit holders, but—
- (a) if the scheme does not make provision for distribution periods, then for the purposes of this section its distribution periods shall be taken to be successive periods of 12 months the first of which began with the day on which the scheme took effect; and
- (b) if the scheme makes provision for distribution periods of more than 12 months, then for the purposes of this section each of those periods shall be taken to be divided into two (or more) distribution periods, the second succeeding the first after 12 months (and so on for any further periods).
- (6A) In this section “*umbrella scheme*” has the same meaning as in section 468.
- (7) In this section “*unit trust scheme*” has the same meaning as in the Financial Services Act 1986, except that the Treasury may by regulations provide that any scheme of a description specified in the regulations shall be treated as not being a unit trust scheme for the purposes of this section.
- (8) Regulations under this section may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.
- (9) Sections 686 and 687 shall not apply to a scheme to which this section applies.
- (10) Section 720(5) shall not apply in relation to profits or gains treated as received by the trustees of a scheme to which this section applies if or to the extent that those profits or gains represent accruals of interest (within the meaning of Chapter II of Part XVII) which are treated as income in the accounts of the scheme.
- (11) This section shall have effect in relation to distribution periods beginning on or after 6th April 1987.
##### 469
- (1) This section applies to—
- (a) any unit trust scheme that is not an authorised unit trust; and
- (b) any authorised unit trust to which, by virtue of subsection (5) of section 468, that section does not apply,
except where the trustees of the scheme are not resident in the United Kingdom.
- (2) Income arising to the trustees of the scheme shall be regarded for the purposes of the Tax Acts as income of the trustees (and not as income of the unit holders); and the trustees (and not the unit holders) shall be regarded as the persons to or on whom allowances or charges are to be made under the provisions of those Acts relating to relief for capital expenditure.
- (3) For the purposes of the Tax Acts the unit holders shall be treated as receiving annual payments (made by the trustees under deduction of tax) in proportion to their rights.
- (4) The total amount of those annual payments in respect of any distribution period shall be the amount which, after deducting income tax at the basic rate in force for the year of assessment in which the payments are treated as made, is equal to the aggregate amount shown in the accounts of the scheme as income available for payment to unit holders or for investment.
- (5) The date on which the annual payments are treated as made shall be the date or latest date provided by the terms of the scheme for any distribution in respect of the distribution period in question, except that, if—
- (a) the date so provided is more than 12 months after the end of the period; or
- (b) no date is so provided,
the date on which the payments are treated as made shall be the last day of the period.
- (5A) Subsection (5B) below applies where for any year of assessment—
- (a) the trustees are (or, apart from this subsection, would be) chargeable under section 350 with tax on payments treated as made by them under subsection (3) above, and
- (b) there is an uncredited surplus in the case of the scheme.
- (5B) Where this subsection applies, the amount on which the trustees would otherwise be so chargeable shall be reduced—
- (a) if the surplus is greater than that amount, to nil, or
- (b) if it is not, by an amount equal to the surplus.
- (5C) For the purposes of subsections (5A) and (5B) above whether there is an uncredited surplus for a year of assessment in the case of a scheme (and, if so, its amount) shall be ascertained by—
- (a) determining, for each earlier year of assessment in which the income on which the trustees were chargeable to tax by virtue of subsection (2) above exceeded the amount treated by subsection (3) above as annual payments received by the unit holders, the amount of the excess,
- (b) aggregating the amounts determined in the case of the scheme under paragraph (a) above, and
- (c) deducting from that aggregate the total of any reductions made in the case of the scheme under subsection (5B) above for earlier years of assessment.
- (5D) The references in subsection (5C)(a) above to subsections (2) and (3) above include references to subsections (2) and (3) of section 354A of the 1970 Act.
- (6) In this section “*distribution period*” has the same meaning as in section 468, but—
- (a) if the scheme does not make provision for distribution periods, then for the purposes of this section its distribution periods shall be taken to be successive periods of 12 months the first of which began with the day on which the scheme took effect; and
- (b) if the scheme makes provision for distribution periods of more than 12 months, then for the purposes of this section each of those periods shall be taken to be divided into two (or more) distribution periods, the second succeeding the first after 12 months (and so on for any further periods).
- (7) In this section “*unit trust scheme*” has the same meaning as in the Financial Services Act 1986, except that the Treasury may by regulations provide that any scheme of a description specified in the regulations shall be treated as not being a unit trust scheme for the purposes of this section.
- (8) Regulations under this section may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.
- (9) Sections 686 and 687 shall not apply to a scheme to which this section applies.
- (10) Section 720(5) shall not apply in relation to profits or gains treated as received by the trustees of a scheme to which this section applies if or to the extent that those profits or gains represent accruals of interest (within the meaning of Chapter II of Part XVII) which are treated as income in the accounts of the scheme.
- (11) This section shall have effect in relation to distribution periods beginning on or after 6th April 1987.
#### Relevant loan interest.
#### Certain quoted companies not to be close companies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Manufactured dividends and interest.
#### Section 751A: supplementary
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on payments in respect of corporation tax and meaning of “the material date".
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on tax overpaid.
#### Transfers of rights to receive distributions in respect of shares
#### Offshore income gains: application of transfer of assets abroad provisions
#### Qualifying trade, profession or vocation
#### How averaging claim is given effect
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: mileage allowance payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Close companies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “UK property business” and “overseas property business”
#### Miscellaneous charges (list for the purposes of certain provisions that formerly referred to Case VI of Schedule D)
#### Interest on tax overpaid.
#### Section 751A: supplementary
#### Introduction
#### Adjustment of profits on averaging claim
#### Tax year
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Manufactured interest on UK securities: general
### Manufactured interest on gilt-edged securities etc.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Home improvement loans.
#### Interpretative provisions relating to insurance companies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Amount of post-commencement supplement for a post-commencement period
#### Section 796: trade income
#### Mutual agreement procedure and presentation of cases under arrangements.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Utilisation of eligible unrelieved foreign tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Commencement.
#### Interpretation of the Corporation Tax Acts etc.
#### Meaning of “UK property business” and “overseas property business”
#### Income treated as arising under section 761(1): remittance basis
#### Change in company ownership: postponed corporation tax.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sales etc. at an undervalue or overvalue.
#### Section 785B: expectation that relevant capital payment will not be paid
#### Company vehicles
#### Introduction
#### The approved amount: mileage allowance payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The non-qualifying pool
#### Repayment supplements: companies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in ownership of company with unused non-trading loss on intangible fixed assets
#### Sales etc. at an undervalue or overvalue.
#### Restriction of relief for payments of interest.
#### Tax year
#### Company vehicles
#### Employment
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### Interest ceasing to be relevant loan interest, etc.
#### Home improvement loans.
#### Income or gains arising from property investment LLP
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Territorial sea and designated areas.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Income Tax Acts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exemption from sections 739 and 740 (transactions before 5th December 2005)
#### Introduction
### Introductory
### Payments and other benefits to which section 148 applies
### Payments and other benefits excluded from charge under section 148
### Application of £30,000 threshold
### Exclusion or reduction of charge in case of foreign service
### Valuation of benefits
### Notional interest treated as paid if amount charged in respect of beneficial loan
### Giving effect to the charge to tax
### Reporting requirements
### Interpretation
#### Qualifying vehicles
#### The approved amount: passenger payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Supplement in respect of a post-commencement period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustment of profits on averaging claim
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Liability of non-transferors.
#### Exemption from sections 739 and 740 (transactions before 5th December 2005)
#### Company vehicles
#### Introduction
#### Supplement in respect of a pre-commencement accounting period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to modify sections 727A, 730A, 730BB and 737A to 737C
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax year
#### Accounting periods
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### Interest on payments in respect of corporation tax and meaning of “the material date".
#### Trading stock.
#### VAT penalties etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### The appropriate percentage
### Car with CO2 emissions figure
### The lower threshold
### Bi-fuel cars
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### The non-qualifying pool
#### Supplement in respect of a pre-commencement accounting period
#### Qualifying companies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Corporation Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest: special relationship.
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Amount of post-commencement supplement for a post-commencement period
#### Qualifying companies
#### The non-qualifying pool
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### Amount of post-commencement supplement for a post-commencement period
#### Supplement in respect of a pre-commencement accounting period
#### Supplement in respect of a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Company carrying on life assurance business
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in company ownership: corporation tax.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest ceasing to be relevant loan interest, etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction in chargeable profits following an exempt period
#### Reduction in chargeable profits following an exempt period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to inspect documents.
#### The Arbitration Convention.
#### About this Schedule
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Territorial sea and designated areas.
#### Interpretation of the Corporation Tax Acts etc.
#### Miscellaneous charges (list for the purposes of certain provisions that formerly referred to Case VI of Schedule D)
#### The non-qualifying pool
#### About this Schedule
#### About this Schedule
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### Qualifying companies
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
#### The non-qualifying pool
#### About this Schedule
#### Accounting periods
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### Amount of post-commencement supplement for a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Losses of ring fence trade: set off against profits of an earlier accounting period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Adjustment of profits on averaging claim
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### Amount of post-commencement supplement for a post-commencement period
#### The non-qualifying pool
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
#### Children’s tax credit.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Corporation Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Qualifying companies
#### Amount of post-commencement supplement for a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
#### Supplement in respect of a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### Dealings in commodity futures etc: withdrawal of loss relief.
#### Modifications where tax charged under section 35 of CTA 2009.
#### Taxation in respect of other business: incorporated friendly societies etc.
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### Amount of post-commencement supplement for a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of certain income, deductions and interest.
#### Equalisation reserves for general business.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter II.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Amount of post-commencement supplement for a post-commencement period
#### The non-qualifying pool
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “research and development”.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### How averaging claim is given effect
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Early conversion or surrender of life policies.
#### Substitution of security: supplemental.
#### Loan to buy machinery or plant.
#### Substitution of security: supplemental.
#### Losses from overseas property business.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER 1B — PROVISIONS AS TO CAPITAL SUMS PAID TO SETTLOR
### CHAPTER 1C — LIABILITY OF TRUSTEES
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
#### Amount of post-commencement supplement for a post-commencement period
#### The non-qualifying pool
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Adjustment of profits on averaging claim
#### About this Schedule
#### About this Schedule
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Insurance companies: allocation of expenses etc in computations under Case I of Schedule D.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Adjustment of profits on averaging claim
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### Introduction
#### Introduction
## Part IV — Disallowed debits and non-trading deficits
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
@@ -39212,844 +39930,64 @@
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying vehicles
#### Employment
#### The approved amount: mileage allowance payments
#### Form of relief.
#### Loan to buy machinery or plant.
#### Relevant loan interest.
#### Certain quoted companies not to be close companies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Manufactured dividends and interest.
#### Section 751A: supplementary
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on payments in respect of corporation tax and meaning of “the material date".
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Meaning of “industrial assurance business”
##### 20A
In this Part of this Schedule “*industrial assurance business*” means any industrial assurance business within the meaning given by—
- (a) section 1(2) of the Industrial Assurance Act 1923, or
- (b) Article 3(1) of the Industrial Assurance (Northern Ireland) Order 1979,
which was carried on before 1 December 2001.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on tax overpaid.
#### Transfers of rights to receive distributions in respect of shares
#### Offshore income gains: application of transfer of assets abroad provisions
#### Qualifying trade, profession or vocation
#### How averaging claim is given effect
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: mileage allowance payments
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relevant deposits: computation of tax on interest.
#### “Deposit-taker”, “deposit” and “relevant deposit”.
#### Contemplative religious communities: gains exempt from corporation tax
#### UK property business or overseas property business
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Terminal losses.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “UK property business” and “overseas property business”
#### Miscellaneous charges (list for the purposes of certain provisions that formerly referred to Case VI of Schedule D)
#### Interest on tax overpaid.
#### Section 751A: supplementary
#### Introduction
#### Adjustment of profits on averaging claim
#### Tax year
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Manufactured interest on UK securities: general
### Manufactured interest on gilt-edged securities etc.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Home improvement loans.
#### Exceptions from section 419.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Amount of post-commencement supplement for a post-commencement period
#### Section 796: trade income
#### Mutual agreement procedure and presentation of cases under arrangements.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Utilisation of eligible unrelieved foreign tax.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Commencement.
#### Interpretation of the Corporation Tax Acts etc.
#### Meaning of “UK property business” and “overseas property business”
#### Income treated as arising under section 761(1): remittance basis
#### Change in company ownership: postponed corporation tax.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sales etc. at an undervalue or overvalue.
#### Section 785B: expectation that relevant capital payment will not be paid
#### Company vehicles
#### Introduction
#### The approved amount: mileage allowance payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The non-qualifying pool
#### Repayment supplements: companies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in ownership of company with unused non-trading loss on intangible fixed assets
#### Sales etc. at an undervalue or overvalue.
#### Restriction of relief for payments of interest.
#### Tax year
#### Company vehicles
#### Employment
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### Interest ceasing to be relevant loan interest, etc.
#### Home improvement loans.
#### Exceptions from section 419.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Territorial sea and designated areas.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Income Tax Acts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exemption from sections 739 and 740 (transactions before 5th December 2005)
#### Introduction
### Introductory
### Payments and other benefits to which section 148 applies
### Payments and other benefits excluded from charge under section 148
### Application of £30,000 threshold
### Exclusion or reduction of charge in case of foreign service
### Valuation of benefits
### Notional interest treated as paid if amount charged in respect of beneficial loan
### Giving effect to the charge to tax
### Reporting requirements
### Interpretation
#### Qualifying vehicles
#### The approved amount: passenger payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Supplement in respect of a post-commencement period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustment of profits on averaging claim
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Liability of non-transferors.
#### Exemption from sections 739 and 740 (transactions before 5th December 2005)
#### Company vehicles
#### Introduction
#### Supplement in respect of a pre-commencement accounting period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to modify sections 727A, 730A, 730BB and 737A to 737C
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax year
#### Accounting periods
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### Interest on payments in respect of corporation tax and meaning of “the material date".
#### Trading stock.
#### VAT penalties etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### The appropriate percentage
### Car with CO2 emissions figure
### The lower threshold
### Bi-fuel cars
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### The non-qualifying pool
#### Supplement in respect of a pre-commencement accounting period
#### Qualifying companies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Corporation Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest: special relationship.
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Amount of post-commencement supplement for a post-commencement period
#### Qualifying companies
#### The non-qualifying pool
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### Amount of post-commencement supplement for a post-commencement period
#### Supplement in respect of a pre-commencement accounting period
#### Supplement in respect of a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exclusions from section 423.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in company ownership: corporation tax.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest ceasing to be relevant loan interest, etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction in chargeable profits following an exempt period
#### Reduction in chargeable profits following an exempt period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to inspect documents.
#### The Arbitration Convention.
#### About this Schedule
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The non-qualifying pool
#### About this Schedule
#### About this Schedule
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### Qualifying companies
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
#### The non-qualifying pool
#### About this Schedule
#### Accounting periods
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### Amount of post-commencement supplement for a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Losses from overseas property business.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Adjustment of profits on averaging claim
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### Amount of post-commencement supplement for a post-commencement period
#### The non-qualifying pool
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
#### Children’s tax credit.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Corporation Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Qualifying companies
#### Amount of post-commencement supplement for a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods
#### Supplement in respect of a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### Losses from overseas property business.
#### Election that assets not be foreign business assets
#### Determination of policy holders’ share for purposes of s.438B
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### Amount of post-commencement supplement for a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Write-off of government investment.
#### Company carrying on life assurance business and other insurance business
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Modification of s. 444BA for mutual or overseas business and for non-resident companies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Amount of post-commencement supplement for a post-commencement period
#### The non-qualifying pool
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468A
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##### 468A
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#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “research and development”.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### How averaging claim is given effect
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
#### Amount of post-commencement supplement for a post-commencement period
#### The non-qualifying pool
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Adjustment of profits on averaging claim
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Meaning of “industrial assurance business”
##### 20A
In this Part of this Schedule “*industrial assurance business*” means any industrial assurance business within the meaning given by—
- (a) section 1(2) of the Industrial Assurance Act 1923, or
- (b) Article 3(1) of the Industrial Assurance (Northern Ireland) Order 1979,
which was carried on before 1 December 2001.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dividends paid to investment trusts.
#### “Deposit-taker”, “deposit” and “relevant deposit”.
#### Valuation of oil disposed of or appropriated in certain circumstances.
#### UK property business or overseas property business
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
@@ -40094,13 +40032,13 @@
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Modifications for change of tax basis
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exemption for trade unions and employers’ associations.
#### Long-term business: application of the Corporation Tax Acts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation.
##### 508A
@@ -40251,3 +40189,7 @@
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2016-08-12
Income and Corporation Taxes Act 1988
2016-06-16
Income and Corporation Taxes Act 1988
2015-03-26
Income and Corporation Taxes Act 1988
2015-02-12
Income and Corporation Taxes Act 1988
2014-08-01
Income and Corporation Taxes Act 1988
2014-07-17
Income and Corporation Taxes Act 1988
2014-01-01
Income and Corporation Taxes Act 1988
2013-07-17
Income and Corporation Taxes Act 1988
2013-04-06
Income and Corporation Taxes Act 1988
2012-07-17
Income and Corporation Taxes Act 1988
2012-04-01
Income and Corporation Taxes Act 1988
2012-03-14
Income and Corporation Taxes Act 1988
2011-08-11
Income and Corporation Taxes Act 1988
2011-07-19
Income and Corporation Taxes Act 1988
2011-06-16
Income and Corporation Taxes Act 1988
2011-02-25
Income and Corporation Taxes Act 1988
2010-12-16
Income and Corporation Taxes Act 1988
2010-10-01
Income and Corporation Taxes Act 1988
2010-07-27
Income and Corporation Taxes Act 1988
2010-04-08
Income and Corporation Taxes Act 1988
2010-04-01
Income and Corporation Taxes Act 1988
2009-12-01
Income and Corporation Taxes Act 1988
2009-11-11
Income and Corporation Taxes Act 1988
2009-10-01
Income and Corporation Taxes Act 1988
2009-09-01
Income and Corporation Taxes Act 1988
2009-08-13
Income and Corporation Taxes Act 1988
2009-07-21
Income and Corporation Taxes Act 1988
2009-06-01
Income and Corporation Taxes Act 1988
2009-04-23
Income and Corporation Taxes Act 1988
2009-04-22
Income and Corporation Taxes Act 1988
2009-04-06
Income and Corporation Taxes Act 1988
2009-04-01
Income and Corporation Taxes Act 1988
2009-02-21
Income and Corporation Taxes Act 1988
2009-02-03
Income and Corporation Taxes Act 1988
2009-01-01
Income and Corporation Taxes Act 1988
2008-12-27
Income and Corporation Taxes Act 1988
2008-12-01
Income and Corporation Taxes Act 1988
2008-10-29
Income and Corporation Taxes Act 1988
2008-10-28
Income and Corporation Taxes Act 1988
2008-09-08
Income and Corporation Taxes Act 1988
2008-08-12
Income and Corporation Taxes Act 1988
2008-07-22
Income and Corporation Taxes Act 1988
2008-07-21
Income and Corporation Taxes Act 1988
2008-07-08
Income and Corporation Taxes Act 1988
2008-07-01
Income and Corporation Taxes Act 1988
2008-04-06
Income and Corporation Taxes Act 1988
2008-04-01
Income and Corporation Taxes Act 1988
2008-02-19
Income and Corporation Taxes Act 1988
2008-01-03
Income and Corporation Taxes Act 1988
2008-01-01
Income and Corporation Taxes Act 1988
2007-12-28
Income and Corporation Taxes Act 1988
2007-12-27
Income and Corporation Taxes Act 1988
2007-12-06
Income and Corporation Taxes Act 1988
2007-11-29
Income and Corporation Taxes Act 1988
2007-10-01
Income and Corporation Taxes Act 1988
2007-09-01
Income and Corporation Taxes Act 1988
2007-08-14
Income and Corporation Taxes Act 1988
2007-08-13
Income and Corporation Taxes Act 1988
2007-07-19
Income and Corporation Taxes Act 1988
2007-07-17
Income and Corporation Taxes Act 1988
2007-04-17
Income and Corporation Taxes Act 1988
2007-04-06
Income and Corporation Taxes Act 1988
2007-04-01
Income and Corporation Taxes Act 1988
2007-03-29
Income and Corporation Taxes Act 1988
2007-03-21
Income and Corporation Taxes Act 1988
2007-03-01
Income and Corporation Taxes Act 1988
2007-01-08
Income and Corporation Taxes Act 1988
2007-01-01
Income and Corporation Taxes Act 1988
2006-12-31
Income and Corporation Taxes Act 1988
2006-12-26
Income and Corporation Taxes Act 1988
2006-12-12
Income and Corporation Taxes Act 1988
2006-12-06
Income and Corporation Taxes Act 1988
2006-08-11
Income and Corporation Taxes Act 1988
2006-07-19
Income and Corporation Taxes Act 1988
2006-06-09
Income and Corporation Taxes Act 1988
2006-04-06
Income and Corporation Taxes Act 1988
2006-04-01
Income and Corporation Taxes Act 1988
2006-03-22
Income and Corporation Taxes Act 1988
2006-01-06
Income and Corporation Taxes Act 1988
2005-12-27
Income and Corporation Taxes Act 1988
2005-12-05
Income and Corporation Taxes Act 1988
2005-11-01
Income and Corporation Taxes Act 1988
2005-10-05
Income and Corporation Taxes Act 1988
2005-09-27
Income and Corporation Taxes Act 1988
2005-08-12
Income and Corporation Taxes Act 1988
2005-08-11
Income and Corporation Taxes Act 1988
2005-08-03
Income and Corporation Taxes Act 1988
2005-07-24
Income and Corporation Taxes Act 1988
2005-07-20
Income and Corporation Taxes Act 1988
2005-06-08
Income and Corporation Taxes Act 1988
2005-04-07
Income and Corporation Taxes Act 1988
2005-04-06
Income and Corporation Taxes Act 1988
original version
Text at this date