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
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
Changes on 2015-02-12
@@ -36,9 +36,483 @@
### Corporation tax
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 6
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
##### 7
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#### Onshore pooling.
##### 8
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#### The pool of qualifying E&A losses and the pool of non-qualifying losses
##### 9
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) Where . . . any enactment applies both to income tax and to corporation tax—
- (a) it shall not be affected in its operation by the fact that they are distinct taxes but, so far as is consistent with the Corporation Tax Acts, shall apply in relation to income tax and corporation tax as if they were one tax, so that, in particular, a matter which in a case involving two individuals is relevant for both of them in relation to income tax shall in a like case involving an individual and a company be relevant for him in relation to that tax and for it in relation to corporation tax; and
- (b) for that purpose references in any such enactment to a relief from or charge to income tax, or to a specified provision of the Income Tax Acts shall, in the absence of or subject to any express adaptation, be construed as being or including a reference to any corresponding relief from or charge to corporation tax, or to any corresponding provision of the Corporation Tax Acts.
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
##### 10
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#### Reduction in chargeable profits: failure to qualify for exemptions
##### 11
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 12
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7B) . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) Where it appears to the inspector that the beginning or end of any accounting period of a company is uncertain, he may make an assessment on the company for such period, not exceeding 12 months, as appears to him appropriate, and that period shall be treated for all purposes as an accounting period of the company unless either—
- (a) the inspector on further facts coming to his knowledge sees fit to revise it; or
- (b) on an appeal against the assessment in respect of some other matter the company shows the true accounting periods;
and if on an appeal against an assessment made by virtue of this subsection the company shows the true accounting periods, the assessment appealed against shall, as regards the period to which it relates, have effect as an assessment or assessments for the true accounting periods, and there may be made such other assessments for any such periods or any of them as might have been made at the time when the assessment appealed against was made.
- (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Small companies’ rate
#### Qualifying vehicles
##### 6
##### 13
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### Advance corporation tax
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##### 14
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### The six Schedules
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##### 15
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#### Schedule B
##### 16
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#### Schedule C
##### 17
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#### Schedule D
##### 18
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#### Schedule E
##### 19
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#### Schedule F
##### 20
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## PART II — PROVISIONS RELATING TO THE SCHEDULE A CHARGE
### General
#### Persons chargeable
##### 21
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#### Assessments
##### 22
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#### Collection from lessees and agents
##### 23
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#### Construction of Part II
##### 24
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### Deductions and other allowances
#### Deductions from rent: general rules
##### 25
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#### Deductions from rent: land managed as one estate
##### 26
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#### Deductions from rent: maintenance funds for historic buildings
##### 27
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#### Deductions from receipts other than rent
##### 28
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#### Sporting rights
##### 29
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#### Expenditure on making sea walls
##### 30
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#### Provisions supplementary to sections 25 to 30
##### 31
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#### Capital allowances for machinery and plant used in estate management
##### 32
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#### Agricultural land: allowance for excess expenditure on maintenance
##### 33
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### Premiums, leases at undervalue etc
#### Treatment of premiums etc. as rent or Schedule D profits
##### 34
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#### Schedule D charge on assignment of lease granted at an undervalue
##### 35
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#### Schedule D charge on sale of land with right to reconveyance
##### 36
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#### Premiums paid etc: deductions from premiums and rent received
##### 37
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#### Rules for ascertaining duration of leases
##### 38
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#### Saving for pre-1963 leases, and special relief for individuals
##### 39
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### Supplementary provisions
#### Tax treatment of receipts and outgoings on sale of land
##### 40
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#### Relief for rent etc. not paid
##### 41
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#### Appeals against determinations under sections 34 to 36
##### 42
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#### Non-residents
##### 43
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## PART III — GOVERNMENT SECURITIES
### General
#### Income tax: mode of charge
##### 44
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#### Interpretation of Part III
##### 45
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### Government securities: exemptions from tax
#### Savings certificates and tax reserve certificates
##### 46
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#### United Kingdom government securities held by non-residents
##### 47
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#### Securities of foreign states
##### 48
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#### Stock and dividends in name of Treasury etc
##### 49
- (1) No tax shall be chargeable in respect of the stock or dividends—
- (a) transferred, in pursuance of any Act of Parliament, to accounts in the books of the Bank of England in the name of the Treasury or the National Debt Commissioners, or
- (b) transferred, in pursuance of any Act of Parliament, to the Treasury or the National Debt Commissioners and in respect of which the Treasury or those Commissioners are entered as holder in the registers kept by the Registrar of Government Stock,
but the Bank of England and the Registrar of Government Stock shall each transmit to the Board an account of the total amount thereof in those books or registers as the case may be.
- (2) No tax shall be chargeable in respect of the stock or dividends belonging to the Crown, in whatever name they may stand in the books of the Bank of England or in the registers kept by the Registrar of Government Stock.
- (3) In this section “dividends” means any interest, public annuities, dividends or shares of annuities.
- (4) In this section “*Registrar of Government Stock*” means the person or persons appointed in accordance with regulations under section 47(1)(b) of the Finance Act 1942 (see regulation 3 of the Government Stock Regulations 2004).
### Government securities: interest payable without deduction of tax
#### United Kingdom securities: Treasury directions for payment without deduction of tax
##### 50
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#### Treasury directions as respects Northern Ireland securities
##### 51
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#### Taxation of interest on converted government securities and interest which becomes subject to deduction
##### 52
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## PART IV — PROVISIONS RELATING TO THE SCHEDULE D CHARGE
### CHAPTER I — SUPPLEMENTARY CHARGING PROVISIONS
#### Farming and other commercial occupation of land (except woodlands)
##### 53
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#### Woodlands managed on a commercial basis
##### 54
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#### Mines, quarries and other concerns
##### 55
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#### Transactions in deposits with and without certificates or in debts
##### 56
- (1) Subsection (2) below applies to the following rights—
- (a) the right to receive the amount, with or without interest, stated in a certificate of deposit;
- (b) the right to receive an amount payable with interest—
- (i) in a transaction in which no certificate of deposit or security is issued, and
- (ii) which is payable by a bank or similar institution or a person regularly engaging in similar transactions;
and the right to receive that interest.
- (2) Profits or gains arising to a company from the disposal of a right to which this subsection applies or, except so far as it is a right to receive interest, from the exercise of any such right (whether by the person to whom the certificate was issued or by some other person, or, as the case may be, by the person who acquired the right in the transaction referred to in subsection (1) above or by some person acquiring it directly or indirectly from that person), shall, if not falling to be taken into account as a trading receipt, be treated as an amount to which the charge to corporation tax on income applies.
- (3) Subsection (2) above and section 551 of ITTOIA 2005 (charge to income tax on profits from disposal of deposit rights) do not apply in the case of the disposal or exercise of a right to receive an amount stated in a certificate of deposit or interest on such an amount—
- (a) if the company disposing of the right acquired it before 7th March 1973;
- (b) to any profits or gains arising to a fund or scheme in the case of which provision is made by section 613(4) or 614(2) or (3) or section 186 of the Finance Act 2004 for exempting the whole or part of its income from income tax;
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4A) This section and section 56A shall not apply for the purposes of corporation tax except in relation to rights in existence before 1st April 1996.
- (4B) For the purposes of corporation tax, where any profits or gains arising from the disposal or exercise of a right in existence before 1st April 1996 are, or (if there were any) would be, chargeable under this section, nothing in Part 5 of CTA 2009 (loan relationships) shall require any amount relating to that disposal, or to the exercise of that right, to be brought into account for the purposes of that Part.
- (5) In this section—
- “*certificate of deposit*” means a document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable; and
- “*security*” has the same meaning as in section 132 of the 1992 Act.
#### Deep discount securities
##### 57
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#### Foreign pensions
##### 58
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#### Persons chargeable
##### 59
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
@@ -48,6632 +522,6160 @@
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — INCOME TAX: BASIS OF ASSESSMENT ETC.
### Cases I and II
#### Assessment on preceding year basis
##### 60
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#### Special basis at commencement of trade, profession or vocation
##### 61
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#### Special basis for early years following commencement
##### 62
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#### Special basis on discontinuance
##### 63
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### Cases III, IV and V
#### Case III assessments: general
##### 64
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#### Cases IV and V assessments: general
##### 65
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#### Special rules for fresh income
##### 66
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#### Special rules where source of income disposed of or yield ceases
##### 67
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#### Special rules where property etc. situated in Republic of Ireland
##### 68
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### Case VI
#### Assessment on current year basis unless otherwise directed
##### 69
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### CHAPTER III — CORPORATION TAX: BASIS OF ASSESSMENT ETC
#### Basis of assessment etc
##### 70
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### CHAPTER IV — PROVISIONS SUPPLEMENTARY TO CHAPTERS II AND III
#### Computation of income tax where no profits in year of assessment
##### 71
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#### Apportionments etc. for purposes of Cases I, II and VI
##### 72
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#### Single assessments for purposes of Cases III, IV and V
##### 73
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### CHAPTER V — COMPUTATIONAL PROVISIONS
### Deductions
#### General rules as to deductions not allowable
##### 74
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#### Expenses of management: investment companies
##### 75
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#### Expenses of management: insurance companies
##### 76
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#### Incidental costs of obtaining loan finance
##### 77
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#### Discounted bills of exchange
##### 78
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#### Contributions to local enterprise agencies
##### 79
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#### Expenses connected with foreign trades etc
##### 80
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#### Travel between trades etc
##### 81
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#### Interest paid to non-residents
##### 82
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#### Patent fees etc. and expenses
##### 83
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#### Payments for technical education
##### 84
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#### Payments to trustees of approved profit sharing schemes
##### 85
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#### Employees seconded to charities and educational establishments
##### 86
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#### Taxable premiums etc
##### 87
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#### Payments to Export Credit Guarantee Department
##### 88
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#### Debts proving irrecoverable after event treated as discontinuance
##### 89
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#### Additional payments to redundant employees
##### 90
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#### Cemeteries
##### 91
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### Treatment of regional development and other grants and debts released etc.
#### Regional development grants
##### 92
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#### Other grants under Industrial Development Act 1982 etc
##### 93
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#### Debts deducted and subsequently released
##### 94
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#### Taxation of dealer’s receipts on purchase by company of own shares
##### 95
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### Special provisions
#### Farming and market gardening: relief for fluctuating profits
##### 96
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#### Treatment of farm animals etc
##### 97
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#### Tied premises
##### 98
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#### Dealers in land
##### 99
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### CHAPTER VI — DISCONTINUANCE . . .
### Valuation of trading stock etc.
#### Valuation of trading stock at discontinuance of trade
##### 100
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#### Valuation of work in progress at discontinuance of profession or vocation
##### 101
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#### Provisions supplementary to sections 100 and 101
##### 102
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### Case VI charges on receipts
#### Receipts after discontinuance: earnings basis charge and related charge affecting conventional basis
##### 103
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#### Conventional basis: general charge on receipts after discontinuance or change of basis
##### 104
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowable deductions
##### 105
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of charges where rights to payments transferred
##### 106
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Reliefs
#### Treatment of receipts as earned income
##### 107
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Election for carry-back
##### 108
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge under section 104: relief for individuals born before 6th April 1917
##### 109
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplemental
#### Interpretation etc
##### 110
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VII — PARTNERSHIPS AND SUCCESSIONS
### General
#### Partnership assessments to income tax
##### 111
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Partnerships controlled abroad
##### 112
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Effect, for income tax, of change in ownership of trade, profession or vocation
##### 113
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Partnerships involving companies
#### Special rules for computing profits and losses
##### 114
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 114
##### 115
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements for transferring relief
##### 116
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Limited partners
#### Restriction on relief: individuals
##### 117
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction on relief: companies
##### 118
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VIII — MISCELLANEOUS AND SUPPLEMENTAL
#### Rent etc. payable in connection with mines, quarries and similar concerns
##### 119
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Rent etc. payable in respect of electric line wayleaves
##### 120
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Management expenses of owner of mineral rights
##### 121
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief in respect of mineral royalties
##### 122
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign dividends
##### 123
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on quoted Eurobonds
##### 124
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annual payments for non-taxable consideration
##### 125
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treasury securities issued at a discount
##### 126
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Enterprise allowance
##### 127
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Commodity and financial futures etc.: losses and gains
##### 128
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Stock lending
##### 129
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “investment company” for purposes of Part IV
##### 130
In this Part of this Act —
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- “*investment company*”, means any company whose business consists wholly or mainly in the making of investments and the principal part of whose income is derived therefrom, but includes any savings bank or other bank for savings except any which, for the purposes of the Trustee Savings Bank Act 1985, is a successor or a further successor to a trustee savings bank.
## PART V — PROVISIONS RELATING TO THE SCHEDULE E CHARGE
### CHAPTER I — SUPPLEMENTARY CHARGING PROVISIONS OF GENERAL APPLICATION
### Miscellaneous provisions
#### Chargeable emoluments
##### 131
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Place of performance, and meaning of emoluments received in the U.K
##### 132
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Voluntary pensions
##### 133
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Workers supplied by agencies
##### 134
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Shareholdings, loans etc.
#### Gains by directors and employees from share options
##### 135
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 135
##### 136
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payment of tax under section 135 by instalments
##### 137
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Share acquisitions by directors and employees
##### 138
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 138
##### 139
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Further interpretation of sections 135 to 139
##### 140
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Vouchers etc.
#### Non-cash vouchers
##### 141
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Credit-tokens
##### 142
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cash vouchers taxable under P.A.Y.E
##### 143
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions
##### 144
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Living accommodation
#### Living accommodation provided for employee
##### 145
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Additional charge in respect of certain living accommodation
##### 146
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Occupation of Chevening House
##### 147
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Payments on retirement, sick pay etc.
#### Payments on retirement or removal from office or employment
##### 148
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sick pay
##### 149
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Job release scheme allowances, maternity pay and statutory sick pay
##### 150
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Income support etc
##### 151
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Notification of amount taxable under section 151
##### 152
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — EMPLOYEES EARNING £8,500 OR MORE AND DIRECTORS
### Expenses
#### Payments in respect of expenses
##### 153
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Benefits in kind
#### General charging provision
##### 154
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from the general charge
##### 155
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cash equivalents of benefits charged under section 154
##### 156
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cars available for private use
##### 157
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Car fuel
##### 158
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Pooled cars
##### 159
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Beneficial loan arrangements
##### 160
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from section 160
##### 161
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employee shareholdings
##### 162
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses connected with living accommodation
##### 163
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Director’s tax paid by employer
##### 164
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Scholarships
##### 165
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### General supplementary provisions
#### Notice of nil liability under this Chapter
##### 166
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “director’s or higher-paid employment”
##### 167
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other interpretative provisions
##### 168
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — PROFIT-RELATED PAY
### Preliminary
#### Interpretation
##### 169
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of profit-related pay
##### 170
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### The relief
#### Relief from tax
##### 171
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from tax
##### 172
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Registration
#### Persons who may apply for registration
##### 173
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Excluded employments
##### 174
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Applications for registration
##### 175
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Registration
##### 176
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change of scheme employer
##### 177
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cancellation of registration
##### 178
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Administration
#### Recovery of tax from scheme employer
##### 179
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annual returns etc
##### 180
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other information
##### 181
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Appeals
##### 182
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplementary
#### Partnerships
##### 183
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Independent accountants
##### 184
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — OTHER EXEMPTIONS AND RELIEFS
### Share option and profit sharing schemes
#### Approved share option schemes
##### 185
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Approved profit sharing schemes
##### 186
- (1) The provisions of this section apply where, after 5th April 1979 and before 1st January 2003, the trustees of an approved profit sharing scheme appropriate shares—
- (a) which have previously been acquired by the trustees, and
- (b) as to which the conditions in Part II of Schedule 9 are fulfilled,
to an individual who participates in the scheme (“the participant”).
- (2) Notwithstanding that, by virtue of such an appropriation of shares as is mentioned in subsection (1) above, the beneficial interest in the shares passes to the participant to whom they are appropriated—
- (a) the value of the shares at the time of the appropriation shall be treated as not being income of his chargeable to tax under Schedule E; and
- (b) he shall not be chargeable to income tax under that Schedule by virtue of section 78 or 79 of the Finance Act 1988 in respect of the shares or by virtue of section 162 in any case where the shares are appropriated to him at an undervalue within the meaning of that section.
- (3) Subject to the provisions of this section and paragraph 4 of Schedule 10, if, in respect of or by reference to any of a participant’s shares, the trustees become or the participant becomes entitled, before the release date, to receive any money or money’s worth (“a capital receipt”), . . . the appropriate percentage (determined as at the time the trustees become or the participant becomes so entitled) of so much of the amount or value of the receipt as exceeds the appropriate allowance for that year, as determined under subsection (12) below counts as employment income of the participant for the year of assessment in which the entitlement arises.
- (4) If the trustees dispose of any of a participant’s shares at any time before the release date or, if it is earlier, the date of the participant’s death, then, subject to subsections (6) and (7) below, . . . the appropriate percentage of the locked-in value of the shares at the time of the disposal counts as employment income of the participant for the year of assessment in which the disposal takes place.
- (5) Subject to paragraphs 5 and 6(6) of Schedule 10, the locked-in value of a participant’s shares at any time is—
- (a) if prior to that time he has become entitled to a capital receipt (within the meaning of subsection (3) above) which is referable to those shares and—
- (i) an amount calculated by reference to that capital receipt counts as his employment income by virtue of subsection (3) above, or
- (ii) if the entitlement to the capital receipt arose before 6th April 2003, he was chargeable to income tax by virtue of that subsection (as it had effect before that date) in respect of that capital receipt,
the amount by which their initial market value exceeds the amount or value of that capital receipt or, if there has been more than one such receipt, the aggregate of them; and
- (b) in any other case, their initial market value.
- (6) Subject to subsection (7) below, if, on a disposal of shares falling within subsection (4) above, the proceeds of the disposal are less than the locked-in value of the shares at the time of the disposal, subsection (4) above shall have effect as if that locked-in value were reduced to an amount equal to the proceeds of the disposal.
- (7) If, at any time prior to the disposal of any of a participant’s shares, a payment was made to the trustees to enable them to exercise rights arising under a rights issue, then, subject to subsection (8) below, subsections (4) and (6) above shall have effect as if the proceeds of the disposal were reduced by an amount equal to that proportion of that payment or, if there was more than one, of the aggregate of those payments which, immediately before the disposal, the market value of the shares disposed of bore to the market value of all the participant’s shares held by the trustees at that time.
- (8) For the purposes of subsection (7) above—
- (a) no account shall be taken of any payment to the trustees if or to the extent that it consists of the proceeds of a disposal of rights arising under a rights issue; and
- (b) in relation to a particular disposal the amount of the payment or, as the case may be, of the aggregate of the payments referred to in that subsection shall be taken to be reduced by an amount equal to the total of the reduction (if any) previously made under that subsection in relation to earlier disposals;
and any reference in subsection (7) or paragraph (a) above to the rights arising under a rights issue is a reference to rights conferred in respect of a participant’s shares, being rights to be allotted, on payment, other shares or securities or rights of any description in the same company.
- (9) If at any time the participant’s beneficial interest in any of his shares is disposed of, the shares in question shall be treated for the purposes of the relevant provisions as having been disposed of at that time by the trustees for (subject to subsection (10) below) the like consideration as was obtained for the disposal of the beneficial interest; and for the purposes of this subsection there is no disposal of the participant’s beneficial interest if and at the time when—
- (a) in England and Wales or Northern Ireland, that interest becomes vested in any person on the insolvency of the participant or otherwise by operation of law, or
- (b) in Scotland, that interest becomes vested in a judicial factor, in a trustee on the participant’s sequestrated estate or in a trustee for the benefit of the participant’s creditors.
- (10) If—
- (a) a disposal of shares falling within subsection (4) above is a transfer to which paragraph 2(2)(c) of Schedule 9 applies, or
- (b) any other disposal falling within that subsection is not at arm’s length,
- (c) a disposal of shares falling within that subsection is one which is treated as taking place by virtue of subsection (9) above and takes place within the period of retention,
then for the purposes of the relevant provisions the proceeds of the disposal shall be taken to be equal to the market value of the shares at the time of the disposal.
- (11) Where the trustees of an approved scheme acquire any shares as to which the requirements of Part II of Schedule 9 are fulfilled and, within the period of 18 months beginning with the date of their acquisition, those shares are appropriated in accordance with the scheme, section 686 shall not apply to income consisting of dividends on those shares received by the trustees; and, for the purpose of determining whether any shares are appropriated within that period, shares which were acquired at an earlier time shall be taken to be appropriated before shares of the same class which were acquired at a later time.
- (12) For the purposes of subsection (3) above, “*the appropriate allowance*”, in relation to any year of assessment, means a sum which, subject to a maximum of £60, is the product of multiplying £20 by 1 plus the number of years which fall within the period of three years immediately preceding the year in question and in which shares were appropriated to the participant under the scheme; and if in any year (and before the release date) the trustees become or the participant becomes entitled, in respect of or by reference to any of his shares, to more than one capital receipt, the receipts shall be set against the appropriate allowance for that year in the order in which they are received.
- (13) Schedule 10 shall have effect with respect to profit sharing schemes.
#### Interpretation of sections 185 and 186 and Schedules 9 and 10
##### 187
- (1) In sections 185 and 186, this section and Schedules 9 and 10 “*the relevant provisions*” means those sections (including this section) and Schedules.
- (2) For the purposes of the relevant provisions, except where the context otherwise requires—
- “*appropriate percentage*” shall be construed in accordance with paragraph 3 of Schedule 10;
- “*approved*”, in relation to a scheme, means approved under Schedule 9;
- “*associated company*” has the same meaning as in section 416, except that, for the purposes of paragraph 23 of Schedule 9, subsection (1) of that section shall have effect with the omission of the words “ or at any time within one year previously ”;
- “*bonus date*” has the meaning given by paragraph 17 of Schedule 9;
- “*capital receipt*” means money or money’s worth to which the trustees of or a participant in a profit sharing scheme become or becomes entitled as mentioned in section 186(3), but subject to paragraph 4 of Schedule 10;
- “*certified contractual savings scheme*” has the meaning given by section 326;
- “*control*” has the same meaning as in section 840;
- “*grantor*”, in relation to any scheme, means the company which has established the scheme;
- “*group scheme*” and, in relation to such a scheme, “*participating company*” have the meanings given by paragraph 1(3) and (4) of Schedule 9;
- “*initial market value*”, in relation to shares in a profit sharing scheme, has the meaning given by paragraph 30(4) of Schedule 9;
- “*locked-in value*”, in relation to any shares, shall be construed in accordance with section 186(5);
- “*market value*” has the same meaning as in Part VIII of the 1992 Act;
- “*new holding*” has the meaning given by section 126(1)(b) of the 1992 Act;
- “*participant*”, in relation to a profit sharing scheme, means an individual to whom the trustees of the scheme have appropriated shares;
- “*participant’s shares*”, in relation to a participant in a profit sharing scheme, means, subject to paragraph 5(4) of Schedule 10, shares which have been appropriated to the participant by the trustees;
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- “*period of retention*” has the meaning given by paragraph 2 of Schedule 10;
- “*release date*”, in relation to any of the shares of a participant in a profit sharing scheme, means the third anniversary of the date on which they were appropriated to him;
- “*relevant amount*”, in relation to a participant in a profit sharing scheme, means an amount which is not less than £3,000 and not more than £8,000 but which, subject to that, is 10 per cent. of his salary (determined under subsection (5) below) for the year of assessment in question or the preceding year of assessment, whichever is the greater;
- “*relevant requirements*” has the meaning given by paragraph 1 of Schedule 9;
- “*savings-related share option scheme*” has the meaning given by paragraph 1 of Schedule 9;
- “*scheme*” means a savings-related share option scheme, a share option scheme which is not a savings-related share option scheme or a profit sharing scheme, as the context may require;
- “*shares*” includes stock;
- “*specified age*”, in relation to a scheme, means the age specified in pursuance of paragraph 8A of Schedule 9 as the specified age for the purposes of the scheme;
- “*the trustees*”, in relation to an approved profit sharing scheme or the shares of a participant in such a scheme, means the body of persons for the establishment of which the scheme must provide as mentioned in paragraph 30 of Schedule 9; and
- “*just instrument*”, in relation to an approved profit sharing scheme, means the instrument referred to in paragraph 30(1)(c) of Schedule 9.
- (3) For the purposes of the application of the relevant provisions in relation to any share option scheme or profit sharing scheme, a person has a material interest in a company if he, either on his own or with one or more associates, or if any associate of his with or without such other associates,—
- (a) is 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, or
- (b) where the company is a close company, possesses, or is entitled to acquire, such rights as would, in the event of the winding-up of the company or in any other circumstances, give an entitlement to receive 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 assets which would then be available for distribution among the participators.
- In this subsection “*associate*” has the meaning given by section 417(3) and (4) and “*participator*” has the meaning given by section 417(1).
- (4) Subsection (3) above shall have effect subject to the provisions of Part VI of Schedule 9.
- (5) For the purposes of subsection (2) above, a participant’s salary for a year of assessment means such of the emoluments of the office or employment by virtue of which he is entitled to participate in a profit sharing scheme as are liable to be paid in that year under deduction of tax pursuant to section 203 after deducting therefrom amounts included by virtue of Chapter II of this Part.
- (6) Section 839 shall apply for the purposes of the relevant provisions.
- (7) For the purposes of the relevant provisions a company is a member of a consortium owning another company if it is one of a number of companies which between them beneficially own not less than three-quarters of the other company’s ordinary share capital and each of which beneficially owns not less than one-twentieth of that capital.
- (8) Where the disposal referred to in section 186(4) is made from a holding of shares which were appropriated to the participant at different times, then, in determining for the purposes of the relevant provisions—
- (a) the initial market value and the locked-in value of each of those shares, . . .
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) Any of the relevant provisions with respect to—
- (a) the order in which any of a participant’s shares are to be treated as disposed of for the purposes of those provisions, or
- (b) the shares in relation to which an event is to be treated as occurring for any such purpose,
shall have effect in relation to a profit sharing scheme notwithstanding any direction given to the trustees with respect to shares of a particular description or to shares appropriated to the participant at a particular time.
- (10) In the relevant provisions “*workers’ cooperative*” means a registered society, as defined in section 1119 of CTA 2010, which is a cooperative society and the rules of which include provisions which secure—
- (a) that the only persons who may be members of it are those who are employed by, or by a subsidiary of, the society and those who are the trustees of its profit sharing scheme; and
- (b) that, subject to any provision about qualifications for membership which is from time to time made by the members of the society by reference to age, length of service or other factors of any description, all such persons may be members of the society;
and in this subsection “*cooperative society*” has the same meaning as in section 2 of the Co-operative and Community Benefit Societies Act 2014 or, as the case may be, section 1 of the Industrial and Provident Societies Act (Northern Ireland) 1969.
### Retirement benefits etc.
#### Exemptions from section 148
##### 188
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lump sum benefits on retirement
##### 189
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments to Members of Parliament, Representatives to the European Parliament and others
##### 190
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Job release scheme allowances not to be treated as income
##### 191
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Foreign emoluments and earnings, pensions and certain travel facilities
#### Relief from tax for foreign emoluments
##### 192
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign earnings and travel expenses
##### 193
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other foreign travel expenses
##### 194
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Travel expenses of employees not domiciled in the United Kingdom
##### 195
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign pensions
##### 196
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leave travel facilities for the armed forces
##### 197
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Other expenses, subscriptions etc.
#### Relief for necessary expenses
##### 198
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses necessarily incurred and defrayed from official emoluments
##### 199
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses of Members of Parliament
##### 200
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Fees and subscriptions to professional bodies, learned societies etc
##### 201
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Donations to charity: payroll deduction scheme
##### 202
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — ASSESSMENT, COLLECTION, RECOVERY AND APPEALS
#### Pay as you earn
##### 203
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### P.A.Y.E repayments
##### 204
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assessments unnecessary in certain circumstances
##### 205
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Additional provision for certain assessments
##### 206
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disputes as to domicile or ordinary residence
##### 207
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART VI — COMPANY DISTRIBUTIONS, TAX CREDITS ETC
### CHAPTER I — TAXATION OF COMPANY DISTRIBUTIONS
#### U.K. company distributions not generally chargeable to corporation tax
##### 208
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — MATTERS WHICH ARE DISTRIBUTIONS FOR THE PURPOSES OF THE CORPORATION TAX ACTS
#### Meaning of “distribution”
##### 209
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Bonus issue following repayment of share capital
##### 210
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Matters to be treated or not to be treated as repayments of share capital
##### 211
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — MATTERS WHICH ARE NOT DISTRIBUTIONS FOR THE PURPOSES OF THE CORPORATION TAX ACTS
### Payments of interest
#### Interest etc. paid in respect of certain securities
##### 212
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Demergers
#### Exempt distributions
##### 213
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Chargeable payments connected with exempt distributions
##### 214
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Advance clearance by Board of distributions and payments
##### 215
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Returns
##### 216
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information
##### 217
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 213 to 217
##### 218
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Purchase of own shares
#### Purchase by unquoted trading company of own shares
##### 219
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions as to residence and period of ownership
##### 220
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of vendor’s interest as shareholder
##### 221
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions applicable where purchasing company is member of group
##### 222
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other conditions
##### 223
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relaxation of conditions in certain cases
##### 224
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Advance clearance of payments by Board
##### 225
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Returns and information
##### 226
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Associated persons
##### 227
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Connected persons
##### 228
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other interpretative provisions
##### 229
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Stock dividends
#### Stock dividends: distributions
##### 230
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — TAX CREDITS
#### Tax credits for certain recipients of qualifying distributions
##### 231
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax credits for non-U.K. residents
##### 232
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of certain recipients of distributions and in respect of non-qualifying distributions
##### 233
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information relating to distributions
##### 234
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Distributions of exempt funds etc
##### 235
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 235
##### 236
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disallowance of reliefs in respect of bonus issues
##### 237
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — ADVANCE CORPORATION TAX AND FRANKED INVESTMENT INCOME
#### Interpretation of terms and collection of ACT
##### 238
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of ACT against liability to corporation tax
##### 239
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of company’s surplus ACT against subsidiary’s liability to corporation tax
##### 240
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Calculation of ACT where company receives franked investment income
##### 241
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of losses etc. against surplus of franked investment income
##### 242
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of loss brought forward, or terminal loss
##### 243
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Further provisions relating to claims under section 242 or 243
##### 244
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Calculation etc. of ACT on change of ownership of company
##### 245
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge of ACT at previous rate until new rate fixed, and changes of rate
##### 246
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VI — MISCELLANEOUS AND SUPPLEMENTAL
### Group income
#### Dividends etc. paid by one member of a group to another
##### 247
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 247
##### 248
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Stock dividends
#### Stock dividends treated as income
##### 249
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Returns
##### 250
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 249 and 250
##### 251
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplemental
#### Rectification of excessive set-off etc. of ACT or tax credit
##### 252
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to modify or replace section 234(5) to (9) and Schedule 13
##### 253
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Part VI
##### 254
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### “Gross rate” and “gross amount” of distributions to include ACT
##### 255
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART VII — GENERAL PROVISIONS RELATING TO TAXATION OF INCOME OF INDIVIDUALS
### CHAPTER I — PERSONAL RELIEFS
### The reliefs
#### General
##### 256
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Personal relief
##### 257
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Widower’s or widow’s housekeeper
##### 258
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Additional relief in respect of children
##### 259
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of relief under section 259
##### 260
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims under sections 258 and 259 for year of marriage
##### 261
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Widows' bereavement allowance
##### 262
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dependent relatives
##### 263
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claimant depending on services of a son or daughter
##### 264
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for blind persons
##### 265
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life assurance premiums
##### 266
- (1) Subject to the provisions of this section, section 274 and Schedules 14 and 15 and sections 192 to 194 of the Finance Act 2004, an eligible individual who pays any such premium as is specified in subsection (2) below . . . shall (without making any claim) be entitled to relief under this section.
- (1A) For the purposes of subsection (1) above an individual is an eligible individual if the individual—
- (a) is resident in the United Kingdom, or
- (b) meets the conditions in section 56(3) of ITA 2007.
- (2) The premiums referred to in subsection (1) above are any premiums paid by an individual under a policy of insurance or contract for a deferred annuity, where—
- (a) the payments are made to —
- (i) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 or under paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to effect or carry out contracts of long-term insurance; or
- (ii) a member of the Society who effects or carries out contracts of long-term insurance in accordance with Part 19 of the Financial Services and Markets Act 2000;
- (iv) in the case of a deferred annuity, the National Debt Commissioners; and
- (b) the insurance or, as the case may be, the deferred annuity is on the life of the individual or on the life of his spouse or civil partner; and
- (c) the insurance or contract was made by him or his spouse or civil partner.
- (3) Subject to subsections . . . (10) and (11) below, no relief under this section shall be given—
- (a) except in respect of premiums payable under policies for securing a capital sum on death, whether in conjunction with any other benefit or not;
- (b) in respect of premiums payable under any policy issued in respect of an insurance made after 19th March 1968 unless the policy is a qualifying policy;
- (c) in respect of premiums payable under any policy issued in respect of an insurance made after 13th March 1984 . . . ;
- (d) in respect of premiums payable during the period of deferment in respect of a policy of deferred assurance.
- (4) Subject to subsection (8) below, relief under this section in respect of any premiums paid by an individual in a year of assessment shall be given by making good to the person to whom they are paid any deficiency arising from the deductions authorised under subsection (5) below; and this section and Schedule 14 shall have effect in relation to any premium or part of a premium which is paid otherwise than in the year of assessment in which it becomes due and payable as if it were paid in that year.
- (5) Subject to the provisions of Schedule 14—
- (a) an individual resident in the United Kingdom who is entitled to relief under this section in respect of any premium may deduct from any payment in respect of the premium and retain an amount equal to 12.5 per cent of the payment; and
- (b) the person to whom the payment is made shall accept the amount paid after the deduction in discharge of the individual’s liability to the same extent as if the deduction had not been made and may recover the deficiency from the Board.
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) Where the individual is not resident in the United Kingdom (but is entitled to relief by virtue of subsection (1A)(b)), subsection (4) above shall not apply but . . . the like relief shall be given to him under paragraph 6 of Schedule 14.
- (9) Subsections (5) and (8) above shall apply in relation to an individual who is not resident in the United Kingdom but is a member of the armed forces of the Crown or the spouseor civil partner of such a member as if the individual were so resident.
- (10) Subsection (3)(b) above shall not apply—
- (a) to any policy of life insurance having as its sole object the provision on an individual’s death or disability of a sum substantially the same as any amount then outstanding under a mortgage of his residence, or of any premises occupied by him for the purposes of a business, being a mortgage the principal amount secured by which is repayable by instalments payable annually or at shorter regular intervals; or
- (b) to any policy of life insurance issued in connection with an approved scheme as defined in Chapter I of Part XIV.
- (11) Subsection (3)(a) and (d) above shall not affect premiums payable—
- (a) under policies or contracts made in connection with any superannuation or bona fide pension scheme for the benefit of the employees of any employer, or of persons engaged in any particular trade, profession, vocation or business, or for the benefit of the spouse, civil partner, widow, widower , surviving civil partner or children or other dependants of any such employee or person, or
- (b) under policies taken out by teachers in the schools known in the year 1918 as secondary schools, pending the establishment of a superannuation or pension scheme for those teachers.
- (12) Schedule 14 shall have effect for the purpose of modifying, for certain cases, and supplementing the provisions of this section.
- (13) In . . . Schedule 14, “*friendly society*” means the same as in the Friendly Societies Act 1992 (and includes any society that by virtue of section 96(2) of that Act is to be treated as a registered friendly society within the meaning of that Act).
- (14) In subsection (2)(a)—
- “contracts of long-term insurance” means contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; and
- “member of the society” has the same meaning as in Lloyd’s Act 1982 .
#### Qualifying policies
##### 267
Schedule 15, Part I of which contains the basic rules for determining whether or not a policy is a qualifying policy, Part II of which makes provision for the certification etc. of policies as qualifying policies and Part III of which modifies Parts I and II in their application to certain policies issued by non-resident companies, shall have effect for the purpose of determining whether or not a policy is a qualifying policy; and, accordingly, any reference in this Act to a qualifying policy shall be construed in accordance with that Schedule.
#### Early conversion or surrender of life policies
##### 268
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Surrender etc. of policies after four years
##### 269
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 268 and 269
##### 270
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deemed surrender in cases of certain loans
##### 271
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Collection of sums payable under sections 268 and 269
##### 272
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments securing widows' and children’s annuities
##### 273
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limits on relief under sections 266 and 273
##### 274
- (1) The aggregate of the premiums . . . in respect of which relief is given to any person under section 266 shall not exceed £1,500 in any year of assessment or one-sixth of that person’s total income, whichever is the greater.
- (2) The aggregate of the relief given under section 266 in respect of premiums . . . payable for securing any benefits other than capital sums on death shall not exceed the amount of the income tax calculated at 12.5% on £100.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) War insurance premiums shall not be taken into account in calculating the limits of one-sixth of total income or of £100 mentioned in this section.
### Supplemental
#### Meaning of “relative”
##### 275
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Effect on relief of charges on income
##### 276
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Partners
##### 277
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Non-residents
##### 278
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — TAXATION OF INCOME OF SPOUSES AND CIVIL PARTNERS
### General rules
#### Aggregation of wife’s income with husband's
##### 279
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfer of reliefs
##### 280
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax repayments to wives
##### 281
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Construction of references to married women living with their husbands
##### 282
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Separate assessments
#### Option for separate assessment
##### 283
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Effect of separate assessment on personal reliefs
##### 284
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Collection from wife of tax assessed on husband but attributable to her income
##### 285
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Right of husband to disclaim liability for tax on deceased wife’s income
##### 286
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Separate taxation
#### Separate taxation of wife’s earnings
##### 287
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Elections under section 287
##### 288
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — ENTERPRISE INVESTMENT SCHEME
#### The relief
##### 289
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Minimum and maximum subscriptions
##### 290
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Individuals qualifying for relief
##### 291
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Parallel trades
##### 292
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
##### 293
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Companies with interests in land
##### 294
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Valuation of interests in land for purposes of section 294(1)(b)
##### 295
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Section 294 disapplied where amounts raised total £50,000 or less
##### 296
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trades
##### 297
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 293 and 297
##### 298
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disposal of shares
##### 299
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Value received from company
##### 300
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 300
##### 301
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Replacement capital
##### 302
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Value received by persons other than claimants
##### 303
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Husband and wife
##### 304
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reorganisation of share capital
##### 305
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims
##### 306
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Withdrawal of relief
##### 307
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application to subsidiaries
##### 308
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Further provisions as to subsidiaries
##### 309
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information
##### 310
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Nominees, bare trustees and approved investment funds
##### 311
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter III
##### 312
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — SPECIAL PROVISIONS
#### Taxation of consideration for certain restrictive undertakings
##### 313
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Divers and diving supervisors
##### 314
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Wounds and disability pensions
##### 315
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowances, bounties and gratuities
##### 316
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Victoria Cross and other awards
##### 317
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other pensions in respect of death due to war service etc
##### 318
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Crown servants: foreign service allowance
##### 319
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Commonwealth Agents-General and official agents etc
##### 320
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Consuls and other official agents
##### 321
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Consular officers and employees
##### 322
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Visiting forces
##### 323
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Designated international organisations
##### 324
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on deposits with National Savings Bank
##### 325
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest etc. under contractual savings schemes
##### 326
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disabled person’s vehicle maintenance grant
##### 327
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Funds in court
##### 328
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on damages for personal injuries
##### 329
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Compensation for National-Socialist persecution
##### 330
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Scholarship income
##### 331
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenditure and houses of ministers of religion
##### 332
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Personal equity plans
##### 333
Regulations under Chapter 3 of Part 6 of ITTOIA 2005 (income from individual investment plans) may include provision generally for the purpose of the administration of corporation tax in relation to plans.
### CHAPTER V — RESIDENCE OF INDIVIDUALS
#### Commonwealth citizens and others temporarily abroad
##### 334
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Residence of persons working abroad
##### 335
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Temporary residents in the United Kingdom
##### 336
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART VIII — TAXATION OF INCOME AND CHARGEABLE GAINS OF COMPANIES
### Taxation of income
#### Companies beginning or ceasing to carry on a trade
##### 337
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowance of charges on income and capital
##### 338
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charges on income: donations to charity
##### 339
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charges on income: interest payable to non-residents
##### 340
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments of interest etc. between related companies
##### 341
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax on company in liquidation
##### 342
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Company reconstructions without a change of ownership
##### 343
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Company reconstructions: supplemental
##### 344
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Chargeable gains
#### Computation of chargeable gains
##### 345
#### Capital distribution of chargeable gains: recovery of tax from shareholder
##### 346
#### Tax on one member of group recoverable from another member
##### 347
## PART IX — ANNUAL PAYMENTS AND INTEREST
### Annual payments
#### Payments out of profits or gains brought into charge to income tax: deduction of tax
##### 348
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments not out of profits or gains brought into charge to income tax, and annual interest
##### 349
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax where payments made under section 349
##### 350
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Small maintenance payments
##### 351
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Certificates of deduction of tax
##### 352
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Relief for payments of interest (excluding MIRAS)
#### General provision
##### 353
- (1) Where a person pays interest in any year of assessment, that person, if he makes a claim to the relief, shall for that year of assessment be entitled (subject to . . . section 52 of ITTOIA 2005) to relief in accordance with this section in respect of so much (if any) of the amount of that interest as is eligible for relief under this section by virtue of section 365.
- (1A) Where a person is entitled for a year of assessment to relief under this section in respect of an amount of interest which is eligible for relief by virtue of section 365, the relief is given as a tax reduction for that tax year.
- (1AA) The amount of the tax reduction is 23% of the amount of the interest.
- (1AB) The tax reduction is given effect at Step 6 of the calculation in section 23 of ITA 2007.
- (1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1E) Where any person is entitled for any year of assessment to relief . . . in respect of any amount of interest as is eligible for that relief partly as mentioned in subsection (1A) above and partly as mentioned in section 383 of ITA 2007 (relief for interest payments), that amount of interest shall be apportioned between the cases to which each of those provisions applies without regard to what parts of the total amount borrowed remain outstanding but according to . . . —
- (a) the proportions of the total amount borrowed which were applied for different purposes; . . .
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
and subsection (1A) above or section 383 of ITA 2007 shall apply accordingly to the case in which that subsection or section applies.
- (1F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1H) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) This section does not apply to a payment of relevant loan interest to which section 369 applies.
- (3) Relief under this section shall not be given in respect of—
- (a) interest on a debt incurred by overdrawing an account or by debiting the account of any person as the holder of a credit card or under similar arrangements; or
- (b) where interest is paid at a rate in excess of a reasonable commercial rate, so much of the interest as represents the excess.
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loans to buy land etc
##### 354
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Matters excluded from section 354
##### 355
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Job-related accommodation
##### 356
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limit on amount of loan eligible for relief by virtue of section 354
##### 357
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief where borrower deceased
##### 358
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy machinery or plant
##### 359
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy interest in close company
##### 360
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy interest in co-operative or employee-controlled company
##### 361
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy into partnership
##### 362
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 360 to 362
##### 363
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to pay inheritance tax
##### 364
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy life annuity
##### 365
- (1) Subject to the following provisions of this section, interest is eligible for relief under section 353 if it is interest on a loan in respect of which the following conditions are satisfied—
- (aa) that the loan was made before 9th March 1999;
- (a) that the loan was made as part of a scheme under which not less than nine-tenths of the proceeds of the loan were applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons (“*the annuitants*”) who include the person to whom the loan was made;
- (b) that at the time the loan was made the person to whom it was made or each of the annuitants had attained the age of 65 years;
- (c) that the loan was secured on land in the United Kingdom or the Republic of Ireland and the person to whom it was made or one of the annuitants owns an estate or interest in that land; and
- (d) that, if the loan was made after 26th March 1974, the person to whom it was made or each of the annuitants used the land on which it was secured as his only or main residence immediately before 9th March 1999 .
- (1AA) Where—
- (a) a loan made on or after 9th March 1999 was made in pursuance of an offer made by the lender before that date, and
- (b) the offer was either in writing or evidenced by a note or memorandum made by the lender before that date,
the loan shall be deemed for the purposes of subsection (1)(aa) above to have been made before that date.
- (1AB) Subject to subsection (1AC) below, the conditions in paragraphs (aa) and (a) of subsection (1) above shall be treated as satisfied in relation to a loan (“*the new loan*”) if—
- (a) the new loan was made on or after the day on which the Finance Act 1999 was passed;
- (b) the new loan was made as part of a scheme (“*the scheme*”) under which the whole or any part of the proceeds of the loan was used to defray money applied in paying off another loan (“*the old loan*”); and
- (c) the conditions in subsection (1) above were, or were treated by virtue of this subsection as, satisfied with respect to the old loan.
- (1AC) If only part of the proceeds of the new loan was used to defray money applied in paying off the old loan, subsection (1AB) above applies only if, under the scheme, not less than nine-tenths of the remaining part of the proceeds of the new loan was applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons who include him.
- (1AD) In subsection (1AC) above “*the remaining part*” means the part of the proceeds of the new loan that was not used to defray money applied in paying off the old loan.
- (1A) The condition in subsection (1)(d) above shall be treated as satisfied in relation to a loan if—
- (a) the person to whom the loan was made, or any of the annuitants, ceased to use the land as his only or main residence at a time falling within the period of twelve months ending with 8th March 1999, and
- (b) the intention at that time of the person to whom the loan was made, or each of the annuitants owning an estate or interest in the land, was to take steps, before the end of the period of twelve months after the day on which the land ceased to be so used, with a view to the disposal of his estate or interest.
- (1B) If it appears to the Board reasonable to do so, having regard to all the circumstances of a particular case, they may direct that in relation to that case subsection (1A) above shall have effect as if for the reference to 12 months there were substituted a reference to such longer period as meets the circumstances of that case.
- (2) Interest is not eligible for relief by virtue of this section unless it is payable by the person to whom the loan was made or by one of the annuitants.
- (3) If the loan was made after 26th March 1974 interest on it is eligible for relief by virtue of this section only to the extent that the amount on which it is payable does not exceed the sum of £30,000; and if the interest is payable by two or more persons the interest payable by each of them is so eligible only to the extent that the amount on which it is payable does not exceed such amount as bears to that sum the same proportion as the interest payable by him bears to the interest payable by both or all of them.
#### Information
##### 366
- (1) A person who claims relief under section 353 in respect of any payment of interest shall furnish to the inspector a statement in writing by the person to whom the payment is made, showing—
- (a) the date when the debt was incurred;
- (b) the amount of the debt when incurred;
- (c) the interest paid in the year of assessment for which the claim is made . . . ; and
- (d) the name and address of the debtor.
- (2) Where any such interest as is mentioned in section 353 is paid, the person to whom it is paid shall, if the person who pays it so requests in writing, furnish him with such statement as regards that interest as is mentioned in subsection (1) above; and the duty imposed by this subsection shall be enforceable at the suit or instance of the person making the request.
- (3) Subsections (1) and (2) above do not apply to interest paid to a building society, or to a local authority.
#### Provisions supplementary to sections 354 to 366
##### 367
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) In section 365(3) references to the qualifying maximum for the year of assessment are references to such sum as Parliament may determine for the purpose for that year.
#### Exclusion of double relief etc
##### 368
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Mortgage interest relief at source
#### Mortgage interest payable under deduction of tax
##### 369
- (1) If a person who is a qualifying borrower makes a payment of relevant loan interest to which this section applies, he shall be entitled, on making the payment, to deduct and retain out of it a sum equal to the applicable percentage thereof.
- (1A) In subsection (1) above “*the applicable percentage*” means 23 per cent..
- (2) Where a sum is deducted under subsection (1) above from a payment of relevant loan interest—
- (a) the person to whom the payment is made shall allow the deduction on receipt of the residue;
- (b) the borrower shall be acquitted and discharged of so much money as is represented by the deduction as if the sum had been actually paid; and
- (c) the sum deducted shall be treated as income tax paid by the person to whom the payment is made.
- (3) The following payments, that is to say—
- (a) payments of relevant loan interest to which this section applies, and
- (b) payments which would be such payments but for section 373(5),
shall not be allowable as deductions for any purpose of the Income Tax Acts except in so far as they fall to be treated as such payments by virtue only of section 375(2) and would be allowable apart from this subsection.
- (6) Sections 967(2) and 968(2) of CTA 2010 do not apply to a payment of relevant loan interest to which this section applies, but any person by whom such a payment is received shall be entitled to recover from the Board, in accordance with regulations, an amount which by virtue of subsection (2)(c) above is treated as income tax paid by him; and any amount so recovered shall be treated for the purposes of the Tax Acts in like manner as the payment of relevant loan interest to which it relates.
- (7) The following provisions of the Management Act, namely—
- (a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act;
- (b) section 30 (tax repaid in error etc.) apart from subsection (1B),
- (c) section 86 (interest), and
- (d) section 95 (incorrect return or accounts),
shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable in accordance with regulations made by virtue of subsection (6) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due.
- (8) In the application of section 86 of the Management Act by virtue of subsection (7) above in relation to sums due and payable by virtue of an assessment made for the whole or part of a year of assessment (“the relevant year of assessment”) under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date—
- (a) is 1st January in the relevant year of assessment in a case where the person falling within subsection (6) above has made a relevant interim claim; and
- (b) in any other case, is the later of the following dates, that is to say—
- (i) 1st January in the relevant year of assessment; or
- (ii) the date of the making of the payment by the Board which gives rise to the assessment.
- (9) In this section—
- “*financial year*”, in relation to any person, means a financial year of that person for the purposes of the relevant regulations;
- “*interim claim*” means an interim claim within the meaning of the relevant regulations;
- “*relevant interim claim*” means, in relation to an assessment made for a period coterminous with, or falling wholly within, a person’s financial year, an interim claim made for a period falling wholly or partly within that financial year; and
- “*the relevant regulations*” means regulations made under section 378(3) for the purposes of subsection (6) above.
#### Relevant loan interest
##### 370
- (1) Subject to this section and sections 373 to 376, in this Part “*relevant loan interest*” means interest which is paid and payable in the United Kingdom to a qualifying lender and to which subsection (2) . . . below applies.
- (2) Subject to subsection (4) below, this subsection applies to interest if, disregarding section 353(2) and any other provision applying to interest falling to be treated as relevant loan interest—
- (a) it is interest falling within section . . . 365; and
- (b) apart (where applicable) from section . . . 365(3), the whole of the interest would be eligible for relief under section 353;. . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) In determining whether subsection (2) above applies to any interest, section 365 shall have effect as if the words “or the Republic of Ireland” were omitted.
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Second loans
##### 371
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Home improvement loans
##### 372
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loans in excess of the qualifying maximum, and joint borrowers
##### 373
- (1) The provisions of this section have effect in relation to a loan where, by virtue of . . . section 365(3), only part of the interest on the loan would (apart from section 353(2)) be eligible for relief under section 353; and in this section any such loan is referred to as a “*limited loan*”.
- (2) None of the interest on a limited loan is relevant loan interest unless—
- (a) the loan is made on or after 6th April 1987; or
- (b) the qualifying lender to whom the interest is payable has given notice to the Board in accordance with regulations that he is prepared to have limited loans of a description which includes that limited loan brought within the tax deduction scheme.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) Where the condition in paragraph (a) or (b) of subsection (2) above is fulfilled . . . only so much of the interest as (apart from section 353(2)) would be eligible for relief under section 353 is relevant loan interest.
- (6) Where a loan on which interest is payable by the borrower was made jointly to the borrower and another person who is not the borrower’s husband or wife, the interest on the loan is not relevant loan interest unless—
- (a) each of the persons to whom the loan was made is a qualifying borrower; and
- (b) in relation to each of them considered separately, the whole of that interest is relevant loan interest, in accordance with section 370 and this section.
- (7) In subsection (6) above references to the borrower’s husband or wife do not include references to a separated husband or wife . . . .
#### Conditions for application of section 369
##### 374
- (1) Section 369 does not apply to any relevant loan interest unless—
- (a) in the case of a loan of a description specified by regulations for the purposes of this paragraph, the borrower or, in the case of joint borrowers, each of them has given notice to the lender in the prescribed form certifying—
- (i) that he is a qualifying borrower; and
- (ii) that the interest is relevant loan interest; and
- (iii) such other matters as may be prescribed; or
- (b) the Board have given notice to the lender and the borrower that the interest may be paid under deduction of tax; or
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (d) the loan to which the interest relates is of a description specified by regulations for the purposes of this paragraph and was made—
- (i) if sub-paragraph (2) of paragraph 2 of Schedule 7 to the Finance Act 1982 applied to interest on the loan which became due on or after a date earlier than 6th April 1983, being a date specified by the Board in pursuance of sub-paragraph (5) of that paragraph, before that earlier date; or
- (ii) if the qualifying lender is a building society or a local authority, before 1st April 1983; or
- (iii) if sub-paragraphs (i) and (ii) above do not apply and the interest falls within section 370(2), before 6th April 1983.
- (2) Where notice has been given as mentioned in paragraph (a) or (b) of subsection (1) above, section 369 applies to any relevant loan interest to which the notice relates and which becomes due on or after the relevant date, as defined by subsection (3) below; and in a case falling within paragraph . . . (d) of subsection (1) above, section 369 applies to the relevant loan interest referred to in that paragraph.
- (3) In subsection (2) above “*the relevant date*” means—
- (a) in the case of a notice under subsection (1)(a) above, the date the notice is given, and
- (b) in the case of a notice under subsection (1)(b) above, a date specified in the notice as being the relevant date (which may be earlier than the date so specified as the date from which the interest may be paid under deduction of tax).
#### Interest ceasing to be relevant loan interest, etc
##### 375
- (1) If at any time—
- (a) the interest on a loan ceases to be relevant loan interest; or
- (b) a person making payments of relevant loan interest ceases to be a qualifying borrower;
the borrower shall give notice of the fact to the lender.
- (2) Without prejudice to subsection (3) below, in relation to a payment of interest—
- (a) which is due after the time referred to in subsection (1) above and before the date on which notice is given under that subsection, and
- (aa) as respects which any of the conditions mentioned in 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 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 any deduction or to retain any amount deducted and, accordingly, where any amount that has been deducted exceeds the amount which ought to have been deducted, he shall be liable to make good the excess and an inspector may make such assessments as may in his judgment be required for recovering the excess.
- (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.
- (4A) If there is any unreasonable delay in the giving of a notice under subsection (1) above, the borrower shall be liable to a penalty not exceeding so much of the aggregate amount that he is liable to make good under subsection (3) above as is attributable to that delay.
- (5) If, as a result of receiving a notice under subsection (1) above or otherwise, a qualifying lender has reason to believe that any interest is no longer relevant loan interest or that a borrower is no longer a qualifying borrower, the lender shall furnish the Board with such information as is in his possession with respect to those matters.
- (6) Where it appears to the Board that any of the provisions of sections 370 to 373 is not or may not be fulfilled with respect to any interest, or that a qualifying borrower has or may have ceased to be a qualifying borrower, they shall give notice of that fact to the lender and the borrower specifying the description of relevant loan interest concerned or, as the case may be, that the borrower has or may have ceased to be a qualifying borrower.
- (7) Section 369 shall not apply to any payment of relevant loan interest of a description to which a notice under subsection (6) above relates and which becomes due or is made after such date as may be specified in the notice and before such date as may be specified in a further notice given by the Board to the lender and the borrower.
- (8) In any case where—
- (a) section 369 applies to any relevant loan interest by virtue of a notice under section 374(1)(b), and
- (b) the relevant date specified in the notice is earlier than the date from which the interest begins to be paid under deduction of tax, and
- (c) a payment of that interest was made on or after the relevant date but not under deduction of tax,
regulations may provide for a sum to be paid by the Board of an amount equal to that which the borrower would have been able to deduct from that payment by virtue of section 369 if it had been made after the relevant date.
- (8A) In any case where an amount to which a person is not entitled is paid to him by the Board in pursuance of regulations made by virtue of subsection (8) above, regulations may—
- (a) provide for an officer of the Board to make such assessments as may in his judgment be required for recovering that amount from that person; and
- (b) make provision corresponding to that made by subsection (4A) above and subsections (4) and (5) of section 374A.
- (8B) Subsections (1), (5) and (6) above shall not apply where interest ceases to be relevant loan interest by virtue of section 38 of the Finance Act 1999.
- (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying borrowers and qualifying lenders
##### 376
- (1) Subject to subsection (2) below, an individual is a qualifying borrower with respect to the interest on any loan.
- (2) In relation to interest paid at a time when the borrower or the borrower’s husband or wife holds an office or employment which would, but for some special exemption or immunity from tax, be a taxable employment under Part 2 of ITEPA 2003 (as defined by section 66(3) of that Act), the borrower is not a qualifying borrower.
- (3) In subsection (2) above references to the borrower’s husband or wife do not include references to a separated husband or wife . . . .
- (4) The following bodies are qualifying lenders:—
- (a) a building society;
- (b) a local authority;
- (c) the Bank of England;
- (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (e) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;
- (f) any company to which property and rights belonging to a trustee savings bank were transferred by section 3 of the Trustee Savings Bank Act 1985;
- (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (h) a development corporation within the meaning of the New Towns Act 1981 or the New Towns (Scotland) Act 1968;
- (j) the Homes and Communities Agency;
- (ja) the Greater London Authority so far as exercising its housing or regeneration functions or its new towns and urban development functions;
- (k) the Regulator of Social Housing,
- (ka) the Secretary of State if the loan is made by him under section 79 of the Housing Associations Act 1985;
- (l) the Northern Ireland Housing Executive;
- (m) the Scottish Special Housing Association;
- (n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (o) the Church of England Pensions Board;
- (p) any body which is for the time being registered under section 376A.
- (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
##### 7
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Onshore pooling.
##### 8
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
##### 9
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Variation of terms of repayment of certain loans
##### 377
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary regulations
##### 378
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) The Board may by regulations make provision—
- (a) for the purposes of any provision of sections 369 to 376A which relates to any matter or thing to be specified by or done in accordance with regulations;
- (b) for the application of those sections in relation to loan interest paid by personal representatives and trustees;
- (c) with respect to the furnishing of information by borrowers or lenders, including, in the case of lenders, the inspection of books, documents and other records on behalf of the Board;
- (d) for, and with respect to, appeals to the tribunal against the refusal of the Board to issue a notice under section 374(1)(b) or the issue of a notice under section 375(6) or (7); and
- (e) generally for giving effect to sections 369 to 376A.
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 369 to 378
##### 379
In sections 369 to 378—
- “contracts of general insurance” means contracts which fall within Part I of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 and “contracts of long-term insurance” means contracts which fall within Part II of that Schedule;
- “*prescribed*” . . . means prescribed by the Board;
- “*qualifying borrower*” has the meaning given by section 376(1) to (3);
- “*qualifying lender*” has the meaning given by section 376(4) . . . ;
- “*regulations*” . . . means regulations made by the Board under section 378;
- “*relevant loan interest*” has the meaning given by section 370(1);
- “*separated*” means separated under an order of a court of competent jurisdiction or by deed of separation or in such circumstances that the separation is likely to be permanent.
## PART X — LOSS RELIEF AND GROUP RELIEF
### CHAPTER I — LOSS RELIEF: INCOME TAX
### Trade etc. losses
#### Set-off against general income
##### 380
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Further relief for individuals for losses in early years of trade
##### 381
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 380 and 381
##### 382
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Extension of right of set-off to capital allowances
##### 383
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restrictions on right of set-off
##### 384
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward against subsequent profits
##### 385
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward where business transferred to a company
##### 386
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward as losses of amounts taxed under section 350
##### 387
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-back of terminal losses
##### 388
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions relating to carry-back of terminal losses
##### 389
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treatment of interest as a loss for purposes of carry-forward and carry-back
##### 390
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Losses from trade etc. carried on abroad
##### 391
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Case VI losses
#### Case VI losses
##### 392
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — LOSS RELIEF: CORPORATION TAX
### Trade etc. losses
#### Losses other than terminal losses
##### 393
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Terminal losses
##### 394
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leasing contracts and company reconstructions
##### 395
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Case VI losses
#### Case VI losses
##### 396
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — LOSS RELIEF: MISCELLANEOUS PROVISIONS
#### Restriction of relief in case of farming and market gardening
##### 397
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions in deposits with and without certificates or in debts
##### 398
Where a company sustains a loss on the exercise or disposal of a right to receive any amount, being a right to which section 56(2) . . . applies, in a case where—
- (a) if a profit had arisen from that exercise or disposal, that profit would have been chargeable to corporation tax by virtue of section 56(2) . . . , and
- (b) the company is chargeable to corporation tax under Part 5 of CTA 2009 (loan relationships) in respect of interest payable on that amount,
then the amount of that interest shall be included in the amounts against which the amount of its loss may be set off under section 91 of CTA 2010.
#### Dealings in commodity futures etc: withdrawal of loss relief
##### 399
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Write-off of government investment
##### 400
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for pre-trading expenditure
##### 401
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — GROUP RELIEF
#### Surrender of relief between members of groups and consortia
##### 402
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Losses etc. which may be surrendered by way of group relief
##### 403
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limitation of group relief in relation to certain dual resident companies
##### 404
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims relating to losses etc. of members of both group and consortium
##### 405
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims relating to losses etc. of consortium company or group member
##### 406
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relationship between group relief and other relief
##### 407
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Corresponding accounting periods
##### 408
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Companies joining or leaving group or consortium
##### 409
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements for transfer of company to another group or consortium
##### 410
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exclusion of double allowances
##### 411
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims and adjustments
##### 412
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter IV
##### 413
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XI — CLOSE COMPANIES
### CHAPTER I — INTERPRETATIVE PROVISIONS
#### Close companies
##### 414
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Certain quoted companies not to be close companies
##### 415
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “associated company” and “control”
##### 416
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “participator”, “associate”, “director” and “loan creditor”
##### 417
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Additional matters to be treated as distributions
#### “Distribution” to include certain expenses of close companies
##### 418
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — CHARGES TO TAX IN CONNECTION WITH LOANS
#### Loans to participators etc
##### 419
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from section 419
##### 420
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of borrower when loan under section 419 released etc
##### 421
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Extension of section 419 to loans by companies controlled by close companies
##### 422
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — APPORTIONMENT OF UNDISTRIBUTED INCOME ETC.
#### Apportionment of certain income, deductions and interest
##### 423
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exclusions from section 423
##### 424
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Manner of apportionment
##### 425
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to income tax where apportionment is to an individual
##### 426
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of charge under section 426 in certain cases
##### 427
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Increase of apportioned sum etc. by reference to ACT
##### 428
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payment and collection of income tax
##### 429
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Consequences of apportionment: ACT
##### 430
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XII — SPECIAL CLASSES OF COMPANIES AND BUSINESSES
### CHAPTER I — INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS
### Insurance companies: general
#### Interpretative provisions relating to insurance companies
##### 431
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Separation of different classes of business
##### 432
- (1) Where an insurance company carries on life assurance business in conjunction with insurance business of any other category, the life assurance business shall, for the purposes of the Corporation Tax Acts, be treated as a separate business from any other category of business carried on by the company.
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Profits reserved for policy holders and annuitants
##### 433
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Franked investment income etc
##### 434
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of gains reserved for policy holders and annuitants
##### 435
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annuity business and pension business: separate charge on profits
##### 436
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### General annuity business
##### 437
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Pension business: exemption from tax
##### 438
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restricted government securities
##### 439
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Identification or exchange of long term assets
##### 440
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign life assurance funds
##### 441
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Overseas business of U.K. companies
##### 442
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life policies carrying rights not in money
##### 443
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life policies issued before 5th August 1965
##### 444
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Provisions applying only to overseas life insurance companies
#### Charge to tax on investment income
##### 445
#### Annuity business
##### 446
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of income tax and tax credits against corporation tax
##### 447
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying distributions and tax credits
##### 448
#### Double taxation agreements
##### 449
### Underwriters
#### Assessment, set-off of losses and reinsurance
##### 450
#### Regulations
##### 451
#### Special reserve funds
##### 452
#### Payments into premiums trust fund on account of losses
##### 453
#### Income tax consequences on payments into and out of special reserve fund
##### 454
#### Income tax consequences on death of underwriter
##### 455
#### Unearned income, variation of arrangements and cancellation of approval etc
##### 456
#### Interpretation of sections 450 to 456
##### 457
### Capital redemption business
#### Capital redemption business
##### 458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — FRIENDLY SOCIETIES, TRADE UNIONS AND EMPLOYERS’ ASSOCIATIONS
### Unregistered friendly societies
#### Exemption from tax
##### 459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Registered friendly societies
#### Exemption from tax in respect of life or endowment business
##### 460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation in respect of other business
##### 461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions for tax exempt business
##### 462
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life or endowment business: application of the Corporation Tax Acts
##### 463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Maximum benefits payable to members
##### 464
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Old societies
##### 465
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter II
##### 466
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Trade unions and employers’ associations
#### Exemption for trade unions and employers' associations
##### 467
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — UNIT TRUST SCHEMES, DEALERS IN SECURITIES ETC.
### Unit trust schemes
#### Authorised unit trusts
##### 468
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other unit trusts
##### 469
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transitional provisions relating to unit trusts
##### 470
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Dealers in securities, banks and insurance businesses
#### Exchange of securities in connection with conversion operations, nationalisation etc
##### 471
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Distribution of securities issued in connection with nationalisation etc
##### 472
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conversion etc. of securities held as circulating capital
##### 473
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treatment of tax-free income
##### 474
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax-free Treasury securities: exclusion of interest on borrowed money
##### 475
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — BUILDING SOCIETIES, BANKS, SAVINGS BANKS, INDUSTRIAL AND PROVIDENT SOCIETIES AND OTHERS
#### Building societies: regulations for payment of tax
##### 476
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Investments becoming or ceasing to be relevant building society investments
##### 477
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Building societies: time for payment of tax
##### 478
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest paid on deposits with banks etc
##### 479
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deposits becoming or ceasing to be composite rate deposits
##### 480
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### “Deposit-taker”, “deposit” and “relevant deposit”
##### 481
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions
##### 482
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Determination of reduced rate for building societies and composite rate for banks etc
##### 483
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) If the order made under section 26 of the Finance Act 1984 in the year 1987-88 is made in pursuance of subsection (4) of that section, that order shall, notwithstanding that that subsection is not re-enacted by this Act, apply for the purposes of sections 476 and 479 for the year 1988-89.
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Savings banks: exemption from tax
##### 484
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Savings banks: supplemental
##### 485
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Industrial and provident societies and co-operative associations
##### 486
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Credit unions
##### 487
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Co-operative housing associations
##### 488
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Self-build societies
##### 489
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Companies carrying on a mutual business or not carrying on a business
##### 490
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Distribution of assets of body corporate carrying on mutual business
##### 491
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V
#### Treatment of oil extraction activities etc. for tax purposes
##### 492
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Valuation of oil disposed of or appropriated in certain circumstances
##### 493
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charges on income
##### 494
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Regional development grants
##### 495
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tariff receipts
##### 496
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction on setting ACT against income from oil extraction activities etc
##### 497
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limited right to carry back surrendered ACT
##### 498
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Surrender of ACT where oil extraction company etc. owned by a consortium
##### 499
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deduction of PRT in computing income for corporation tax purposes
##### 500
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on repayment of PRT
##### 501
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter V
##### 502
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VI — MISCELLANEOUS BUSINESSES AND BODIES
#### Letting of furnished holiday accommodation treated as a trade
##### 503
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions
##### 504
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charities: general
##### 505
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying expenditure and non-qualifying expenditure
##### 506
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The National Heritage Memorial Fund, the Historic Buildings and Monuments Commission for England and the British Museum
##### 507
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Scientific research organisations
##### 508
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reserves of marketing boards and certain other statutory bodies
##### 509
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Agricultural societies
##### 510
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The Electricity Council and Boards, the Northern Ireland Electricity Service and the Gas Council
##### 511
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Atomic Energy Authority and National Radiological Protection Board
##### 512
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### British Airways Board and National Freight Corporation
##### 513
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Funds for reducing the National Debt
##### 514
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Signatories to Operating Agreement for INMARSAT
##### 515
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Government securities held by non-resident central banks
##### 516
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Issue departments of the Reserve Bank of India and the State Bank of Pakistan
##### 517
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Harbour reorganisation schemes
##### 518
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Local authorities
##### 519
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XIII — MISCELLANEOUS SPECIAL PROVISIONS
### CHAPTER I — INTELLECTUAL PROPERTY
### Patents and know-how
#### Allowances for expenditure on purchase of patent rights: post-31st March 1986 expenditure
##### 520
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 520
##### 521
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowances for expenditure on purchase of patent rights: pre-1st April 1986 expenditure
##### 522
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lapses of patent rights, sales etc
##### 523
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of receipts from sale of patent rights
##### 524
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Capital sums: death, winding up or partnership change
##### 525
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for expenses
##### 526
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Spreading of royalties over several years
##### 527
- (1) Where—
- (a) a royalty or other sum is paid to a company in respect of the user of a patent,
- (b) the user extended over a period of six complete years or more, and
- (c) the payment is one from which a sum representing income tax must be deducted under section 903 of ITA 2007,
the company may on the making of a claim require that the corporation tax payable by it by reason of the receipt of that sum shall be reduced so as not to exceed the total amount of corporation tax which would have been payable by it if that royalty or sum had been paid in six equal instalments at yearly intervals, the last of which was paid on the date on which the payment was in fact made.
- (2) Subsection (1) above shall apply in relation to a royalty or other sum where the period of the user is two complete years or more but less than six complete years as it applies to the royalties and sums mentioned in that subsection, but with the substitution for the reference to six equal instalments of a reference to so many equal instalments as there are complete years comprised in that period.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Manner of making allowances and charges
##### 528
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Patent income to be earned income in certain cases
##### 529
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disposal of know-how
##### 530
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 530
##### 531
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of the 1968 Act
##### 532
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 520 to 532
##### 533
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Copyright and public lending right
#### Relief for copyright payments etc
##### 534
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief where copyright sold after ten years or more
##### 535
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of royalties where owner abroad
##### 536
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Public lending right
##### 537
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Artists’ receipts
#### Relief for painters, sculptors and other artists
##### 538
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — LIFE POLICIES, LIFE ANNUITIES AND CAPITAL REDEMPTION POLICIES
#### Introductory
##### 539
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life policies: chargeable events
##### 540
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life policies: computation of gain
##### 541
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life annuity contracts: chargeable events
##### 542
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life annuity contracts: computation of gain
##### 543
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Second and subsequent assignment of life policies and contracts
##### 544
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Capital redemption policies
##### 545
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Calculation of certain amounts for purposes of sections 540, 542 and 545
##### 546
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Method of charging gain to tax
##### 547
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deemed surrender of certain loans
##### 548
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Certain deficiencies allowable as deductions
##### 549
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief where gain charged at a higher rate
##### 550
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Right of individual to recover tax from trustees
##### 551
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information: duty of insurers
##### 552
- (1) Where a chargeable event . . . has happened in relation to any policy or contract, the body by or with whom the policy or contract was issued, entered into or effected shall—
- (a) unless satisfied that no gain is to be treated as arising by reason of the event, deliver to the appropriate policy holder before the end of the relevant three month period a certificate specifying the information described in subsection (5) below; and
- (b) if the condition in paragraph (a) or (b) of subsection (2) below is satisfied, deliver to the inspector before the end of the relevant three month period a certificate specifying the information described in subsection (5) below together with the name and address of the appropriate policy holder.
- (2) For the purposes of this section—
- (a) the condition in this paragraph is that the event is an assignment for money or money’s worth of the whole of the rights conferred by the policy or contract; or
- (b) the condition in this paragraph is that the amount of the gain, or the aggregate amount of the gain and any gains connected with it, exceeds one half of the basic rate limit for the relevant year of assessment.
- (3) If, in the case of every certificate which a body delivers under subsection (1)(a) above which relates to a gain attributable to a year of assessment . . . , the body also delivers to the inspector—
- (a) before the end of the relevant three month period for the purposes of subsection (1)(b) above,
- (b) by a means prescribed by the Board for the purposes of this subsection under section 552ZA(5), and
- (c) in a form so prescribed in the case of that means,
a certificate specifying the same information as the certificate under subsection (1)(a) together with the name and address of the appropriate policy holder, the body shall be taken to have complied with the requirements of subsection (1)(b) above in relation to that year of assessment . . . so far as relating to the chargeable events to which the certificates relate.
- (4) Where a certificate is not required to be delivered under subsection (1)(b) above in the case of any chargeable event—
- (a) the inspector may by notice require the body to deliver to him a copy of any certificate that the body was required to deliver under subsection (1)(a) above which relates to the chargeable event; and
- (b) it shall be the duty of the body to deliver such a copy within 30 days of receipt of the notice.
- (5) The information to be given to the appropriate policy holder pursuant to subsection (1)(a) above or the inspector pursuant to subsection (1)(b) above is—
- (a) any unique identifying designation given to the policy or contract;
- (b) the nature of the chargeable event and—
- (i) the date on which it happened; and
- (ii) if it is a chargeable event by virtue of . . . section 514(1) of ITTOIA 2005 (chargeable events where transaction-related calculations show gains), the date on which the insurance year ends;
- (c) if the event is the assignment of all the rights conferred by the policy or contract, such of the following as may be required for computing the amount of the gain to be treated as arising by virtue of . . . Chapter 9 of Part 4 of ITTOIA 2005—
- (i) . . . the amount or value of any capital sums of a kind referred to in section 492(1)(b) to (e) of ITTOIA 2005;
- (ii) the amounts previously paid under the policy or contract by way of premiums or otherwise by way of consideration for an annuity;
- (iii) . . . the amount of so much of any payment previously made on account of an annuity as is exempt under section 717 of ITTOIA 2005;
- (iv) the value of any previously assigned parts of or shares in the rights conferred by the policy or contract;
- (v) . . . the total of the amounts of gains treated as arising on previous chargeable events within section 509(1) or 514(1) of ITTOIA 2005;
- (d) except where paragraph (c) above applies, the amount of the gain treated as arising by reason of the event;
- (e) the number of years relevant for computing the annual equivalent of the amount of the gain for the purposes of subsection (1) of section 536 of ITTOIA 2005 (top slicing relieved liability: one chargeable event), apart from subsections (6) and (8) of that section;
- (f) on the assumption that section 465 of ITTOIA 2005 (person liable: individuals) has effect in relation to the gain —
- (i) whether an individual would fall to be treated as having paid income tax at the basic rate on the amount of the gain in accordance with section 530 of that Act; and
- (ii) if so, except in a case where paragraph (c) above applies, the amount of such tax that would fall to be so treated as paid.
- (6) For the purposes of subsection (1)(a) above, the relevant three month period is whichever of the following periods ends the latest—
- (a) the period of three months following the happening of the chargeable event;
- (b) if the event is a surrender or assignment which is a chargeable event by virtue of . . . section 514(1) of ITTOIA 2005 . . . , the period of three months following the end of the insurance year in which the event happens;
- (c) if the event is a death or an assignment of the whole of the rights or a surrender or assignment which is a chargeable event by virtue of . . . section 514(1) of ITTOIA 2005 . . . , the period of three months beginning with receipt of written notification of the event.
- (7) For the purposes of subsection (1)(b) above, the relevant three month period is whichever of the following periods ends the latest—
- (a) the period of three months following the end of the year of assessment . . . in which the event happened;
- (b) if the event is a surrender or assignment which is a chargeable event by virtue of section 514(1) of ITTOIA 2005, the period of three months following the end of the insurance year in which the event happens;
- (c) if the event is a death or an assignment, the period of three months beginning with receipt of written notification of the event;
- (d) if a certificate under subsection (1)(b) above would not be required in respect of the event apart from the happening of another event, and that other event is one of those mentioned in paragraph (c) above, the period of three months beginning with receipt of written notification of that other event.
- (8) For the purposes of this section the cases where a gain is connected with another gain are those cases where—
- (a) both gains arise in connection with policies or contracts containing obligations which, immediately before the chargeable event, were obligations of the same body;
- (b) the policy holder of those policies or contracts is the same;
- (c) both gains are attributable to the same year of assessment . . . ;
- (d) the terms of the policies or contracts are the same, apart from any difference in their maturity dates; and
- (e) the policies or contracts were issued in respect of insurances made, or were entered into or effected, on the same date.
- (9) For the purposes of this section, the year of assessment . . . to which a gain is attributable is—
- (a) in the case of a gain treated as arising by virtue of subsection (1) of section 514 of ITTOIA 2005, the year of assessment which includes the end of the insurance year mentioned in subsection (3) and (4) of that section; or
- (b) in any other case, the year of assessment . . . in which happens the chargeable event by reason of which the gain is treated as arising.
- (10) In this section—
- “*amount*”, in relation to any gain, means the amount of the gain apart from . . . section 528 of ITTOIA 2005;
- “*appropriate policy holder*” means—in relation to an assignment of part of or a share in the rights conferred by a policy or contract, any person who is both—the policy holder, or one of the policy holders, immediately before the assignment; andthe assignor or one of the assignors; andin relation to any other chargeable event, the person who is the policy holder immediately before the happening of the event;
- “*chargeable event*” means an event which is a chargeable event within the meaning of . . . Chapter 9 of Part 4 of ITTOIA 2005;
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- “*insurance year*” has the same meaning as in Chapter 9 of Part 4 of ITTOIA 2005 (see section 499 of that Act);
- “*the relevant year of assessment*”, in the case of any gain, means—the year of assessment to which the gain is attributable, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (12) This section is supplemented by section 552ZA.
- (13) For the purposes of this section—
- (a) section 491(2) of ITTOIA 2005 is taken to have effect as if, in the definition of “PG”, the words from “but” to the end were omitted, and
- (b) no account is to be taken of the effect of section 465B or 541A of that Act.
- (14) For the purposes of this section no account is to be taken of the effect of sections 528 and 528A of ITTOIA 2005.
#### Non-resident policies and off-shore capital redemption policies
##### 553
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Borrowings on life policies to be treated as income in certain cases
##### 554
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — ENTERTAINERS AND SPORTSMEN
#### Payment of tax
##### 555
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Activity treated as trade etc. and attribution of income
##### 556
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge on profits or gains
##### 557
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions
##### 558
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — SUB-CONTRACTORS IN THE CONSTRUCTION INDUSTRY
#### Deductions on account of tax etc. from payments to certain sub-contractors
##### 559
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Persons who are sub-contractors or contractors for purposes of Chapter IV
##### 560
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from section 559
##### 561
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions to be satisfied by individuals
##### 562
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions to be satisfied by partners who are individuals
##### 563
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions to be satisfied by firms
##### 564
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions to be satisfied by companies
##### 565
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### General powers to make regulations under Chapter IV
##### 566
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “construction operations”
##### 567
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — SCHEMES FOR RATIONALIZING INDUSTRY
#### Deductions from profits of contributions paid under certified schemes
##### 568
- (1) Notwithstanding anything contained in . . . section 33 of ITTOIA 2005or section 53 of CTA 2009 (no deduction for capital expenditure) but subject to the following provisions of this Chapter, where a person pays, wholly and exclusively for the purposes of a trade in respect of which he is chargeable under Part 2 of ITTOIA 2005 or Part 3 of CTA 2009, a contribution in furtherance of a scheme which is for the time being certified by the Secretary of State under this section, the contribution shall, in so far as it is paid in furtherance of the primary object of the scheme, be allowed to be deducted as an expense in computing the profits of that trade.
- (2) The Secretary of State shall certify a scheme under this section if he is satisfied—
- (a) that the primary object of the scheme is the elimination of redundant works or machinery or plant from use in an industry in the United Kingdom; and
- (b) that the scheme is in the national interest and in the interests of that industry as a whole; and
- (c) that such number of persons engaged in that industry as are substantially representative of the industry are liable to pay contributions in furtherance of the primary object of the scheme by agreement between them and the body of persons carrying out the scheme.
- (3) The Secretary of State shall cancel any certificate granted under this section if he ceases to be satisfied as to any of the matters referred to in subsection (2) above.
- (4) The Secretary of State may at any time require the body of persons carrying out a scheme certified under this section to produce any books or documents of whatever nature relating to the scheme and, if the requirement is not complied with, he may cancel the certificate.
- (5) In this section and in section 569 “*contribution*”, in relation to a scheme, does not include a sum paid by a person by way of loan or subscription of share capital, or in consideration of the transfer of assets to him, or by way of a penalty for contravening or failing to comply with the scheme.
#### Repayment of contributions
##### 569
- (1) In the event of the repayment, whether directly or by way of distribution of assets on a winding up or otherwise, of a contribution or any part of a contribution which has been allowed to be deducted under section 568, the deduction of the contribution, or so much of it as has been repaid, shall be deemed to be an unauthorised deduction in respect of which an assessment shall be made, and, notwithstanding the provisions of the Tax Acts requiring assessments to be made within six years after the end of the chargeable period to which they relate, any such assessment and any consequential assessment may be made at any time within three years after the end of the chargeable period in which the repayment was made.
- (2) For the purposes of this section, a sum received by any person by way of repayment of contributions shall be deemed to be by way of repayment of the last contribution paid by him, and, if the sum exceeds the amount of that contribution, by way of repayment of the penultimate contribution so paid, and so on.
#### Payments under certified schemes which are not repayments of contributions
##### 570
- (1) Subject to the provisions of this section, where, under any scheme which is for the time being certified or has at any time been certified by the Secretary of State under section 568, any payment (not being a payment made by way of repayment of contributions) is made to a person carrying on a trade to which the scheme relates, that payment shall be treated for the purposes of the Tax Acts as a trading receipt of the trade, and shall accordingly be taken into account in computing the profits of the trade for those purposes.
- (2) Where . . . the payments which have been made under such a scheme in respect of a trade (not being payments made by way of repayment of contributions) have been made wholly or partly in respect of damage in respect of which no relief may be given under the Tax Acts, and a claim is made to that effect, then, subject to and in accordance with the provisions of Schedule 21—
- (a) relief shall be given in respect of those payments by reducing the amounts which are to be treated as trading receipts of the trade under subsection (1) above; but
- (b) where such relief is given, section 568 shall, in relation to contributions subsequently paid under the scheme in respect of the trade, have effect subject to the modifications specified in Part III of that Schedule,
and paragraph 6 of that Schedule applies for the purposes of this subsection as it applies for the purposes of that Schedule.
- (3) The provisions of this section and Schedule 21 shall apply in relation to any payment made to a person who has ceased to carry on a trade to which any such scheme as is mentioned in subsection (1) above relates as they apply in relation to payments made to a person carrying on such a trade, subject to the modification that so much of that payment as falls to be treated as a trading receipt by virtue of those provisions shall be deemed for the purposes of those provisions to have been made to him on the last day on which he was engaged in carrying on the trade.
- (4) In determining for the purposes of this section and of Schedule 21—
- (a) whether any trade has ceased to be carried on; or
- (b) whether any contribution is paid in respect of a trade in respect of which a payment has been made; or
- (c) whether any payment is made in respect of a trade in respect of which a contribution has been paid,
no regard shall be had to any event which, by virtue of section 18 of ITTOIA 2005 or section 41 of CTA 2009 (company starting or ceasing to be within charge to corporation tax) is to be treated as effecting a cessation of trading.
#### Cancellation of certificates
##### 571
- (1) Where any certificate granted with respect to a scheme under section 568 is cancelled by the Secretary of State, and any deductible contributions paid in furtherance of the scheme have not been repaid at the expiration of one year from the cancellation, the body of persons carrying out the scheme shall, for the chargeable period in which that year expires, be charged to tax . . . upon the aggregate amount of the deductible contributions which have not been repaid at that time.
- (1A) An amount charged to income tax under subsection (1) above is treated for income tax purposes as an amount of income.
- (1B) So far as relating to corporation tax, the charge to tax under subsection (1) has effect as an application of the charge to corporation tax on income.
- (2) The charge to tax under subsection (1) above shall not be made if the total amount of any contributions, other than deductible contributions, which have been paid under the scheme and have not been repaid before that time is greater than the available resources of the scheme, and shall not in any case be made upon an amount greater than the excess, if any, of those resources over that total amount.
- (3) In subsection (2) above “*the available resources*”, in relation to any scheme, means a sum representing the total funds held for the purposes of the scheme at the expiration of one year from the cancellation of the certificate plus a sum representing any funds held for the purposes of the scheme which, during that year, have been applied otherwise than in accordance with the provisions of the scheme as in force when the certificate was granted.
- (4) Where the body of persons carrying out a scheme are charged to tax by virtue of subsection (1) above, and, after the expiration of one year from the cancellation of the certificate, any deductible contribution paid in furtherance of the scheme is repaid, the amount upon which the charge is made shall on the making of a claim be reduced by the amount repaid, and all such repayments of tax shall be made as are necessary to give effect to the provisions of this subsection.
- (5) In this section “*contribution*” includes a part of a contribution, and “*deductible contribution*” means a contribution allowed to be deducted under section 568, any reduction under Part III of Schedule 21 being left out of account.
- (6) For the purposes of this section, a sum received by any person by way of repayment of contributions shall be deemed to be by way of repayment of the last contribution paid by him, and, if the sum exceeds the amount of that contribution, by way of repayment of the penultimate contribution so paid, and so on.
#### Application to statutory redundancy schemes
##### 572
- (1) Sections 569 to 571 and Schedule 21 shall, subject to the adaptations specified in subsection (2) below, apply in relation to a statutory redundancy scheme as they apply in relation to a scheme certified under section 568.
- (2) The adaptations referred to above are as follows, that is to say—
- (a) for any reference to a contribution allowed to be deducted under section 568 there shall be substituted a reference to a contribution allowed to be deducted under any provision of the Tax Acts other than that section;
- (b) any provision that section 568 shall, in relation to contributions, have effect subject to modifications, shall be construed as a provision that so much of any provision of the Tax Acts other than that section as authorises the deduction of contributions shall, in relation to the contributions in question, have effect subject to the modifications in question;
- (c) for any reference to the cancellation of a certificate with respect to a scheme there shall be substituted a reference to the scheme ceasing to have effect; and
- (d) for any reference to the provisions of the scheme as in force when the certificate was granted there shall be substituted a reference to the provisions of the scheme as in force when the contributions were first paid thereunder.
- (3) In this section “*statutory redundancy scheme*” means a scheme for the elimination or reduction of redundant works, machinery or plant, or for other similar purposes, to which effect is given by or under any Act, whether passed before or after this Act.
### CHAPTER VI — OTHER PROVISIONS
### Relief for losses on unquoted shares in trading companies
#### Relief for companies
##### 573
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for individuals
##### 574
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exclusion of relief under section 573 or 574 in certain cases
##### 575
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 573 to 575
##### 576
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous
#### Business entertaining expenses
##### 577
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Housing grants
##### 578
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Statutory redundancy payments
##### 579
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 579
##### 580
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Borrowing in foreign currency by local authorities and statutory corporations
##### 581
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Funding bonds issued in respect of interest on certain debts
##### 582
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Inter-American Development Bank
##### 583
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for unremittable overseas income
##### 584
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief from tax on delayed remittances
##### 585
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disallowance of deductions for war risk premiums
##### 586
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disallowance of certain payments in respect of war injuries to employees
##### 587
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Training courses for employees
##### 588
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying courses of training etc
##### 589
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XIV — PENSION SCHEMES, SOCIAL SECURITY BENEFITS, LIFE ANNUITIES ETC.
### CHAPTER I — RETIREMENT BENEFIT SCHEMES
### Approval of schemes
#### Conditions for approval of retirement benefit schemes
##### 590
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Discretionary approval
##### 591
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Tax reliefs
#### Exempt approved schemes
##### 592
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief by way of deductions from contributions
##### 593
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exempt statutory schemes
##### 594
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Charge to tax in certain cases
#### Charge to tax in respect of certain sums paid by employer etc
##### 595
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from section 595
##### 596
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: pensions
##### 597
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: repayment of employee’s contributions
##### 598
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: commutation of entire pension in special circumstances
##### 599
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: unauthorised payments to or for employees
##### 600
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: payments to employers
##### 601
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Regulations relating to pension fund surpluses
##### 602
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of surpluses
##### 603
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplementary provisions
#### Application for approval of a scheme
##### 604
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information
##### 605
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Responsibilities of administrator of scheme, and employer
##### 606
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Pilots' benefit fund
##### 607
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Superannuation funds approved before 6th April 1980
##### 608
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schemes approved before 23rd July 1987
##### 609
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Amendments of schemes
##### 610
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Definition of “retirement benefits scheme”
##### 611
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other interpretative provisions, and regulations for purposes of this Chapter
##### 612
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — OTHER PENSION FUNDS AND SOCIAL SECURITY BENEFITS AND CONTRIBUTIONS
#### Parliamentary pension funds
##### 613
- (1) The salary of a Member of the House of Commons shall, for all the purposes of the Income Tax Acts, be treated as reduced by the amounts deducted in pursuance of section 1 of the House of Commons Members’ Fund Act 1939; but a Member shall not by reason of any such deduction be entitled to relief under any other provision of the Income Tax Acts.
- (2) In subsection (1) above the reference to salary shall be construed as mentioned in subsection (3) of section 1 of the House of Commons Members’ Fund Act 1939, the reference to amounts deducted includes a reference to amounts required to be set aside under that subsection, and “deduction” shall be construed accordingly.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) The . . . trustees of—
- (a) the House of Commons Members’ Fund established under section 1 of that Act of 1939;
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (bb) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shall be entitled to exemption from income tax in respect of all income derived from that Fund or any investment of that Fund.
#### Exemptions and reliefs in respect of income from investments etc. of certain pension schemes
##### 614
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) Any interest or dividends received by the person in whom is vested any of the Family Pension Funds mentioned in section 273 of the Government of India Act 1935, and having effect as a scheme made under section 2 of the Overseas Pensions Act 1973, on sums forming part of that fund shall be exempt from income tax.
- (2A) The reference in subsection (2) above to interest on sums forming part of a fund include references to any amount which is treated as income by virtue of Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) and derives from any investment forming part of that fund.
- (3) Income derived from investments or deposits of any fund referred to in section 648, 649, 650 or 651 of ITEPA 2003 shall not be charged to income tax, and any income tax deducted from any such income shall be repaid by the Board to the persons entitled to receive the income.
- (4) In respect of income derived from investments or deposits of the Overseas Service Pensions Fund established pursuant to section 7(1) of the Overseas Aid Act 1966, the Board shall give by way of repayment such relief from income tax as is necessary to secure that the income is exempt to the like extent (if any) as if it were income of a person not domiciled and not resident in the United Kingdom.
- (5) In respect of dividends and other income derived from investments, deposits or other property of a superannuation fund to which section 615(3) applies the Board shall give by way of repayment such relief from income tax as is necessary to secure that the income is exempt to the like extent (if any) as if it were income of a person not domiciled and not resident in the United Kingdom.
- (6) A claim under this section shall be made to the Board.
#### Exemption from tax in respect of certain pensions
##### 615
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) Where an annuity is paid from a superannuation fund to which this subsection applies to a person who is not resident in the United Kingdom, income tax shall not be deducted from any payment of the annuity or accounted for under Chapter 6 of Part 15 of ITA 2007 (deduction from annual payments and patent royalties) by the trustees or other persons having the control of the fund.
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) Subsection (3) above applies to any superannuation fund which—
- (a) is bona fide established under irrevocable trusts in connection with some trade or undertaking carried on wholly or partly outside the United Kingdom;
- (b) has for its sole purpose (subject to any enactment or Northern Ireland legislation requiring or allowing provision for the value of any rights to be transferred between schemes or between members of the same scheme) the provision of superannuation benefits in respect of persons’ employment in the trade or undertaking wholly outside the United Kingdom; and
- (c) is recognised by the employer and employed persons in the trade or undertaking;
and for the purposes of this subsection duties performed in the United Kingdom the performance of which is merely incidental to the performance of other duties outside the United Kingdom shall be treated as performed outside the United Kingdom.
- (7) In this section—
- “*pension*” includes a gratuity or any sum payable on or in respect of death or, in the case of a pension falling within subsection (2)(g) above, ill-health, and a return of contributions with or without interest thereon or any other addition thereto;
- “*overseas territory*” means any territory or country outside the United Kingdom;
- “*the Pensions (Increase) Acts*” means the Pensions (Increase) Act 1971 and any Act passed after that Act for purposes corresponding to the purposes of that Act;
- “*United Kingdom trust territory*” means a territory administered by the government of the United Kingdom under the trusteeship system of the United Nations.
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) For the purposes of this section, a person shall be taken to be employed in the public service of an overseas territory at any time when—
- (a) he is employed in any capacity under the government of that territory, or under any municipal or other local authority in it,
- (b) he is employed, in circumstances not falling within paragraph (a) above, by a body corporate established for any public purpose in that territory by an enactment of a legislature empowered to make laws for that territory, or
- (c) he is the holder of a public office in that territory in circumstances not falling within either paragraph (a) or (b).
- (10) For the purposes of subsection (9), references to the government of an overseas territory include references to a government constituted for two or more overseas territories, and to any authority established for the purpose of providing or administering services which are common to, or relate to matters of common interest to, two or more such territories.
#### Other overseas pensions
##### 616
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Social security benefits and contributions
##### 617
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — RETIREMENT ANNUITIES
#### Termination of relief under this Chapter, and transitional provisions
##### 618
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exemption from tax in respect of qualifying premiums
##### 619
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying premiums
##### 620
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other approved contracts
##### 621
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Substituted retirement annuity contracts
##### 622
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relevant earnings
##### 623
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sponsored superannuation schemes and controlling directors
##### 624
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward of unused relief under section 619
##### 625
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Modification of section 619 in relation to persons over 50
##### 626
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lloyd’s underwriters
##### 627
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Partnership retirement annuities
##### 628
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annuity premiums of Ministers and other officers
##### 629
- (1) For the purposes of this Chapter so much of any salary which—
- (a) is payable to the holder of a qualifying office who is also a Member of the House of Commons, and
- (b) is payable for a period in respect of which the holder is not a participant in relation to that office in arrangements contained in the Parliamentary pension scheme but is a participant in relation to his membership of the House of Commons in any such arrangements, or for any part of such a period,
as is equal to the difference between a Member’s pensionable salary and the salary which (in accordance with any such resolution as is mentioned in subsection (3)(a) below) is payable to him as a Member holding that qualifying office shall be treated as remuneration from the office of Member and not from the qualifying office.
- (2) In this section—
- “*Member’s pensionable salary*” means a Member’s ordinary salary under any resolution of the House of Commons which, being framed otherwise than as an expression of opinion, is for the time being in force relating to the remuneration of Members or, if the resolution provides for a Member’s ordinary salary thereunder to be treated for pension purposes as being at a higher rate, a notional yearly salary at that higher rate;
- “*qualifying office*” means an office mentioned in section 2(2)(b), (c) or (d) of the Parliamentary and other Pensions Act 1987;
- “*the Parliamentary pension scheme*” has the same meaning as in that Act;
and without prejudice to the power conferred by virtue of paragraph 13 of Schedule 1 to that Act, regulations under section 2 of that Act may make provision specifying the circumstances in which a person is to be regarded for the purposes of this section as being or not being a participant in relation to his Membership of the House of Commons, or in relation to any office, in arrangements contained in the Parliamentary pension scheme.
- (3) In subsection (2) above “*a Member’s ordinary salary*”, in relation to any resolution of the House of Commons, means—
- (a) if the resolution provides for salary to be paid to Members at different rates according to whether or not they are holders of particular offices, or are in receipt of salaries or pensions as the holders or former holders of particular offices, a Member’s yearly salary at the higher or highest rate; and
- (b) in any other case, a Member’s yearly salary at the rate specified in or determined under the resolution.
### CHAPTER IV — PERSONAL PENSION SCHEMES
### Preliminary
#### Interpretation
##### 630
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Approval of schemes
##### 631
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Restrictions on approval
#### Establishment of schemes
##### 632
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Scope of benefits
##### 633
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annuity to member
##### 634
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lump sum to member
##### 635
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annuity after death of member
##### 636
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lump sum on death of member
##### 637
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other restrictions on approval
##### 638
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Tax reliefs
#### Member’s contributions
##### 639
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Maximum amount of deductions
##### 640
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-back of contributions
##### 641
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward of relief
##### 642
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employer’s contributions and personal pension income etc
##### 643
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “relevant earnings”
##### 644
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Earnings from pensionable employment
##### 645
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “net relevant earnings”
##### 646
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Charge to tax
#### Unauthorised payments
##### 647
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Contributions under unapproved arrangements
##### 648
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous
#### Minimum contributions under Social Security Act 1986
##### 649
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Withdrawal of approval
##### 650
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Appeals
##### 651
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information about payments
##### 652
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information: penalties
##### 653
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Remuneration of Ministers and other officers
##### 654
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transitional provisions
##### 655
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — PURCHASED LIFE ANNUITIES
#### Purchased life annuities other than retirement annuities
##### 656
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Purchased life annuities to which section 656 applies
##### 657
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary
##### 658
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VI — MISCELLANEOUS
#### Financial futures and traded options
##### 659
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XV — SETTLEMENTS
### CHAPTER I — DISPOSITIONS FOR SHORT PERIODS
#### Dispositions for period which cannot exceed six years
##### 660
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustments between disponor and trustees
##### 661
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of Chapter I to dispositions by two or more disponors
##### 662
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — SETTLEMENTS ON CHILDREN
#### The general rule
##### 663
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accumulation settlements
##### 664
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “irrevocable”
##### 665
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest paid by trustees
##### 666
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustments between disponor and trustees
##### 667
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of Chapter II to settlements by two or more settlors
##### 668
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information under Chapter II
##### 669
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter II
##### 670
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — REVOCABLE SETTLEMENTS ETC.
#### Revocable settlements allowing release of obligation
##### 671
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Revocable settlements allowing reversion of property
##### 672
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Settlements where settlor retains an interest
##### 673
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Settlements: discretionary power for benefit of settlor etc
##### 674
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 671 to 674
##### 675
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disallowance of deduction from total income of certain sums paid by settlor
##### 676
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sums paid to settlor otherwise than as income
##### 677
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Capital sums paid by body connected with settlement
##### 678
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of Chapter III to settlements by two or more settlors
##### 679
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information for purposes of Chapter III
##### 680
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter III
##### 681
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Ascertainment of undistributed income
##### 682
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — LIABILITY TO HIGHER RATE AND ADDITIONAL RATE TAX
### Liability of settlors
#### Settlements made after 6th April 1965
##### 683
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Settlements made before 7th April 1965 but after 9th April 1946
##### 684
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 683 and 684
##### 685
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Liability of trustees
#### Liability to additional rate tax of certain income of discretionary trusts
##### 686
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments under discretionary trusts
##### 687
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schemes for employees and directors to acquire shares
##### 688
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery from trustees of discretionary trusts of higher rate tax due from beneficiaries
##### 689
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — MAINTENANCE FUNDS FOR HISTORIC BUILDINGS
#### Schedule 4 directions
##### 690
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Certain income not to be income of settlor etc
##### 691
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reimbursement of settlor
##### 692
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Severance of settled property for certain purposes
##### 693
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Trustees chargeable to income tax at 30 per cent. in certain cases
##### 694
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XVI — ESTATES OF DECEASED PERSONS IN COURSE OF ADMINISTRATION
#### Limited interests in residue
##### 695
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Absolute interests in residue
##### 696
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions as to absolute interests in residue
##### 697
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special provisions as to certain interests in residue
##### 698
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief from higher rate tax for inheritance tax on accrued income
##### 699
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustments and information
##### 700
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation
##### 701
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application to Scotland
##### 702
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XVII — TAX AVOIDANCE
### CHAPTER I — CANCELLATION OF CORPORATION TAX ADVANTAGES FROM CERTAIN TRANSACTIONS IN SECURITIES
#### Cancellation of tax advantage
##### 703
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The prescribed circumstances
##### 704
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Appeals against Board’s notices under section 703
##### 705
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The tribunal
##### 706
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Procedure for clearance in advance
##### 707
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information
##### 708
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “tax advantage” and other expressions
##### 709
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — TRANSFERS OF SECURITIES
### Transfers with or without accrued interest: introductory
#### Meaning of “securities”, “transfer” etc. for purposes of sections 711 to 728
##### 710
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “interest”, “transfers with or without accrued interest” etc
##### 711
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “settlement day” for purposes of sections 711 to 728
##### 712
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Transfers with or without accrued interest: charge to tax and reliefs
#### Deemed sums and reliefs
##### 713
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treatment of deemed sums and reliefs
##### 714
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from sections 713 and 714
##### 715
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfer of unrealised interest
##### 716
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Variable interest rate
##### 717
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest in default
##### 718
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Unrealised interest in default
##### 719
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Transfers with or without accrued interest: supplemental
#### Nominees, trustees etc
##### 720
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Death
##### 721
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Trading stock
##### 722
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign securities: delayed remittances
##### 723
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Insurance companies
##### 724
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lloyd’s underwriters
##### 725
#### Building societies
##### 726
#### Stock lending
##### 727
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information
##### 728
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Other transfers of securities
#### Sale and repurchase of securities
##### 729
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfers of income arising from securities
##### 730
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Purchase and sale of securities
#### Application and interpretation of sections 732 to 734
##### 731
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dealers in securities
##### 732
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Persons entitled to exemptions
##### 733
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Persons other than dealers in securities
##### 734
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “appropriate amount in respect of” interest
##### 735
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous provisions relating to securities
#### Company dealing in securities: distribution materially reducing value of holding
##### 736
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Manufactured dividends: treatment of tax deducted
##### 737
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplemental
#### Power to amend sections 732, 735 and 737
##### 738
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — TRANSFER OF ASSETS ABROAD
#### Prevention of avoidance of income tax
##### 739
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Liability of non-transferors
##### 740
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exemption from sections 739 and 740
##### 741
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 739 to 741
##### 742
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplemental provisions
##### 743
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### No duplication of charge
##### 744
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information
##### 745
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Persons resident in the Republic of Ireland
##### 746
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — CONTROLLED FOREIGN COMPANIES
#### Imputation of chargeable profits and creditable tax of controlled foreign companies
##### 747
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limitations on direction-making power
##### 748
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Residence and interest
##### 749
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Territories with a lower level of taxation
##### 750
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods and creditable tax
##### 751
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of chargeable profits and creditable tax
##### 752
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Notices and appeals
##### 753
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assessment, recovery and postponement of tax
##### 754
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information relating to controlled foreign companies
##### 755
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation and construction of Chapter IV
##### 756
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — OFFSHORE FUNDS
### Material interests in non-qualifying offshore funds
#### Disposal of material interests in non-qualifying offshore funds
##### 757
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Offshore funds operating equalisation arrangements
##### 758
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Material interests in offshore funds
##### 759
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Non-qualifying offshore funds
##### 760
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Charge to tax of offshore income gains
#### Charge to income tax or corporation tax of offshore income gain
##### 761
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Offshore income gains accruing to persons resident or domiciled abroad
##### 762
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deduction of offshore income gain in determining capital gain
##### 763
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Offshore income gains of trustees
##### 764
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VI — MISCELLANEOUS
### Migration etc. of company
#### Migration etc.of companies
##### 765
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Offences under section 765
##### 766
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation and commencement of sections 765 and 766
##### 767
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Change in ownership of company
#### Change in ownership of company: disallowance of trading losses
##### 768
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Rules for ascertaining change in ownership of company
##### 769
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Transactions between associated persons
#### Sales etc. at an undervalue or overvalue
##### 770
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions by petroleum companies
##### 771
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information for purposes of section 770, and appeals
##### 772
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 770 and 771
##### 773
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions between dealing company and associated company
##### 774
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Other provisions
#### Sale by individual of income derived from his personal activities
##### 775
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions in land: taxation of capital gains
##### 776
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 775 and 776
##### 777
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information
##### 778
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sale and lease-back: limitation on tax reliefs
##### 779
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sale and lease-back: taxation of consideration received
##### 780
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assets leased to traders and others
##### 781
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leased assets: special cases
##### 782
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leased assets: supplemental
##### 783
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leased assets subject to hire-purchase agreements
##### 784
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “asset”, “capital sum” and “lease” for purposes of sections 781 to 784
##### 785
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions associated with loans or credit
##### 786
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction of relief for payments of interest
##### 787
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XVIII — DOUBLE TAXATION RELIEF
### CHAPTER I — THE PRINCIPAL RELIEFS
#### Relief by agreement with other countries
##### 788
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements made under old law
##### 789
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Unilateral relief
##### 790
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to make regulations for carrying out section 788
##### 791
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — RULES GOVERNING RELIEF BY WAY OF CREDIT
### General
#### Interpretation of credit code
##### 792
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of United Kingdom taxes by amount of credit due
##### 793
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Requirement as to residence
##### 794
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Computation of income subject to foreign tax
##### 795
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limits on credit: income tax
##### 796
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limits on credit: corporation tax
##### 797
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on certain overseas loans
##### 798
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Tax underlying dividends
#### Computation of underlying tax
##### 799
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dividends paid between related companies but not covered by arrangements
##### 800
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dividends paid between related companies: relief for U.K. and third country taxes
##### 801
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### U.K. insurance companies trading overseas
##### 802
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Underlying tax reflecting interest on loans
##### 803
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous rules
#### Relief against income tax in respect of income arising in years of commencement
##### 804
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Elections against credit
##### 805
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Time limit for claims etc
##### 806
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — MISCELLANEOUS PROVISIONS
#### Sale of securities with or without accrued interest
##### 807
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction on deduction of interest or dividends from trading income
##### 808
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief in respect of discretionary trusts
##### 809
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Postponement of capital allowances to secure double taxation relief
##### 810
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deduction for foreign tax where no credit allowable
##### 811
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states
##### 812
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery of tax credits incorrectly paid
##### 813
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements to avoid section 812
##### 814
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to inspect documents
##### 815
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disclosure of information
##### 816
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XIX — SUPPLEMENTAL
### Miscellaneous
#### Deductions not to be allowed in computing profits or gains
##### 817
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements for payments of interest less tax or of fixed net amount
##### 818
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Old references to standard rate tax
##### 819
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of Income Tax Acts from year to year
##### 820
- In order to ensure the collection in due time of income tax which may be granted for any year commencing on 6th April, all such provisions contained in the Income Tax Acts as were in force on the preceding day shall have full force and effect with respect to tax which may be so granted, in the same manner as if that tax had been actually granted by Act of Parliament and those provisions had been applied thereto by the Act.
#### Under-deductions from payments made before passing of annual Act
##### 821
- (1) Where, in any year of assessment or accounting period, any half-yearly or quarterly payments (or half-periodic or quarterly payments) have been made on account of any interest, dividends or other annual profits or gains, previously to the passing of the Act imposing income or corporation tax for that year or period, and tax has not been charged thereon or deducted therefrom or has not been charged thereon or deducted therefrom at the rate ultimately imposed for that year or period—
- (a) the amount not so charged or deducted shall be charged in respect of those payments to income tax under Chapter 2 of Part 4 of ITTOIA 2005 (interest) or shall be charged to corporation tax. . . . . . ; and
- (b) the agents entrusted with the payment of the interest, dividends or other annual profits or gains shall furnish to the Board a list containing the names and addresses of the persons to whom payments have been made and the amount of those payments, upon a requisition made by the Board in that behalf.
- (2) Any person liable to pay any rent, interest or annuity, or to make any other annual payment—
- (a) shall be authorised—
- (i) to make any deduction on account of income tax for any year of assessment which he has failed to make previously to the passing of the Act imposing the tax for that year, or
- (ii) to make up any deficiency in any such deduction which has been so made,
on the occasion of the next payment of the rent, interest or annuity or making of the other annual payment after the passing of the Act so imposing the tax, in addition to any other deduction which he may be by law authorised to make; and
- (b) shall also be entitled, if there is no future payment from which the deduction may be made, to recover the sum which might have been deducted as if it were a debt due from the person as against whom the deduction could originally have been made if the Act imposing the tax for the year had been in force.
- (3) Subsection (2) above shall apply with respect to—
- (a) any payment to which section 906 of ITA 2007 applies (certain royalties etc where usual place of abode of owner is abroad), and
- (aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (b) any royalty or other sum paid in respect of the user of a patent; . . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
as it applies with respect to any rent, interest, annuity or other annual payment.
- (4) In this section “*interest*” and “*dividends*” do not include any interest or dividend which is a distribution.
#### Over-deductions from interest on loan capital etc. made before passing of annual Act
##### 822
- (1) If in any year of assessment (“*the year*”) a resolution having statutory effect under the Provisional Collection of Taxes Act 1968 provides for the charging of income tax at a lower rate less than that charged for the previous year, the following provisions of this section shall have effect with respect to deductions in respect of income tax by any body corporate, from payments of interest (not being a distribution) on any of its securities.
- (2) Any deduction which was made before the expiration of one month from the passing of the resolution and which would, if the tax had been renewed at the rate imposed for the previous year, have been a legal deduction, shall be deemed to be a deduction rendered legal by section 2 of the Provisional Collection of Taxes Act 1968 and that section shall, subject to this section, apply accordingly.
- (3) Any over-deduction to be made good under that section may be made good by a reduction of the amount of tax deducted from the next payment of like nature made on the security in question after the passing of the Act imposing the tax for the year.
- (4) Any amount made good under section 2 of the Provisional Collection of Taxes Act 1968 shall—
- (a) in the case of an over-deduction which is made good under subsection (3) above, enure to the benefit of the person entitled to the payment on the occasion of which the over-deduction is made good; and
- (b) in any other case, enure to the benefit of the person entitled to the security in question at the date when the amount is made good,
irrespective, in either case, of whether or not he is the person who was entitled to the payment, or to the security at the date when the original deduction was made.
- (5) Subsection (3) above shall not authorise the retention of any part of the amount over-deducted for more than one year from the passing of the Act imposing the tax for the year.
#### Adjustments of reliefs where given at different times
##### 823
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: individuals and others
##### 824
- (1) Subject to the following provisions of this section, a repayment made by the Board or an officer of the Board of any of the following, namely—
- (a) an amount paid on account of income tax under section 59A of the Management Act;
- (b) any income tax paid by or on behalf of an individual for a year of assessment;
- (c) a penalty payable under any paragraph of Schedule 56 to the Finance Act 2009 in respect of an amount falling within any of the following items of the Table in paragraph 1 of that Schedule—
- (i) item 1, 12, 18 or 19; or
- (ii) insofar as the tax falls within item 1, item 17, 23 or 24; and
- (d) a penalty incurred by an individual under any of the provisions of that Act,
shall be increased under this section by an amount (a “*repayment supplement*”) equal to interest on the amount repaid at the rate applicable under section 178 of the Finance Act 1989 for the period (if any) between the relevant time and the date on which the order for the repayment is issued.
- (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.
- (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.
- (2B) Subsection (1) above shall apply to a payment made by the Board under section 375(8) (payment of amount which borrower would have been able to deduct from interest payment under section 369(1)) as if the payment were a repayment falling within that subsection.
- (2C) Subsection (1) above shall apply to a repayment made by the Board as a result of a claim for relief under—
- (a) paragraph 2 of Schedule 1B to the Management Act (carry back of loss relief),
- (b) paragraph 3 of that Schedule (relief for fluctuating profits of farming etc.), or
- (c) Schedule 4A to this Act (relief for fluctuating profits of creative artists etc.),
as if it were a repayment falling within that subsection.
- (2D) Subsection (1) shall apply—
- (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (b) to a payment made under paragraph 6(1) of Schedule 14 (payment where entitlement to life assurance premium relief has not been given by deduction) as if the payment were a repayment of income tax paid for the tax year in which the entitlement to relief arose.
- (3) For the purposes of subsection (1) above—
- (aa) if the repayment is a payment made by the Board under section 375(8), the relevant time is—
- (i) if the interest payment was made in the year 1996-97 or a subsequent year of assessment, the 31st January next following that year;
- (ii) if the interest payment was made in an earlier year of assessment, the 5th April next following that year;
- (ab) if the repayment is a repayment as a result of a claim for relief under any of the provisions mentioned in subsection (2C) above, the relevant time is the 31st January next following the year that is the later year in relation to the claim;
- (ac) if the repayment is a repayment as a result of a claim under section 496B of ITA 2007 (relief for payments by discretionary trust taxable as employment income), the relevant time is the 31 January next following the end of the tax year to which the claim relates;
- (ad) if the repayment is a payment falling within subsection (2D)(b), the relevant time is 31 January next following the end of the tax year in which the entitlement to relief arose;
- (a) if the repayment is—
- (i) the repayment of an amount paid in accordance with the requirements of section 59A of the Management Act on account of income tax for a year of assessment, or
- (ii) the repayment of income tax for such a year which is not income tax deducted at source (other than a repayment within paragraph (ac)),
the relevant time is the date of the payment that is being repaid;
- (b) if the repayment is of income tax deducted at source for a year of assessment, the relevant time is the 31st January next following that year; and
- (c) if the repayment is of a penalty or surcharge, the relevant time is the date on which the penalty or surcharge was paid.
- (4) For the purposes of subsection (3) above, where a repayment in respect of income tax for a year of assessment is made to any person, that repayment—
- (a) shall be attributed first to so much of any payment made by him under section 59B of the Management Act as is a payment in respect of income tax for that year;
- (b) in so far as it exceeds the amount (if any) to which it is attributable under paragraph (a) above, shall be attributed in two equal parts to each of the payments made by him under section 59A of the Management Act on account of income tax for that year;
- (c) in so far as it exceeds the amounts (if any) to which it is attributable under paragraphs (a) and (b) above, shall be attributed to income tax deducted at source for that year; and
- (d) in so far as it is attributable to a payment made in instalments shall be attributed to a later instalment before being attributed to an earlier one.
- (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,
but does not include a reference to amounts which, in that year, are deducted at source under PAYE regulations in respect of previous years.
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . The Treasury may by order from time to time increase or decrease the rate of interestby reference to which—
- (a) repayment supplements are calculated under subsection (1) above; and
- (b) repayment supplements are calculated under section 47 of the Finance (No. 2) Act 1975.
- (7) A repayment supplement shall not be payable under this section in respect of a repayment or payment made in consequence of an order or judgment of a court having power to allow interest on the repayment or payment, or in respect of a repayment of a post-war credit within the meaning of the Income Tax (Repayment of Post-War Credits) Act 1959.
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) Subsections (1) to (7) above shall apply in relation to . . . the trustees of a settlement, scheme administrators of registered pension schemes sub-scheme administrators of sub-schemes which form part of a split scheme pursuant to the Registered Pensions (Splitting of Schemes) Regulations 2006or personal representatives . . . as they apply in relation to an individual.
- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: companies
##### 825
- (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.
- (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).
- (3) For the purposes of subsection (2) above—
- (a) if the payment is a repayment of corporation tax that was paid on or after the first anniversary of the material date, the relevant date is the anniversary of the material date that occurs next after the date on which that tax was paid;
- (b) in any other case, the relevant date is the first anniversary of the material date;
and where a payment to which this section applies is a repayment of corporation tax paid by a company on different dates, the payment shall as far as possible be treated for the purposes of this subsection as a repayment of tax paid on a later rather than an earlier date among those dates.
- (4) For the purposes of this section—
- (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
- (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*”)—
- (i) shall, in a case where the earlier period falls wholly within the period of twelve months immediately preceding the accounting period in which the loss was incurred, be treated as a repayment of tax paid for the earlier period; and
- (ii) in any other case, shall be treated as a repayment of tax paid for the accounting period in which the loss is incurred; and
- (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.
- (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.
- (7) A repayment supplement paid under this section shall be disregarded for all purposes of income tax and corporation tax.
- (8) In this section—
- “*tax month*” means the period beginning with the 6th day of any calendar month and ending with the 5th day of the following calendar month;
- “*the material date*” in relation to a payment to which this section applies, means the last date on which corporation tax on any of the profits of the company in question arising in the relevant accounting period could have been paid—in a case where section 10(1) applies, within the nine months there mentioned;in a case where section 478 applies, within the time limit imposed by subsection (2)(a) of that section, but subject to subsection (6) of that section.
- (9) This section has effect subject to section 826(8).
#### Interest on tax overpaid
##### 826
- (1) In any case where—
- (a) a repayment falls to be made of corporation tax paid by a company for an accounting period which ends after the appointed day; or
- (aa) a repayment falls to be made under sections 246N and 246Q of advance corporation tax paid by a company in respect of distributions made by it in such an accounting period; or
- (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
- (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
- (da) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (e) a payment of land remediation tax credit or life assurance company tax credit falls to be made to a company under Part 14 of CTA 2009 in respect of an accounting period; or
- (f) a payment of film tax credit falls to be made to a company, or
- (fa) a payment of television tax credit falls to be made to a company; or
- (fb) a payment of video game tax credit falls to be made to a company; or
- (fc) a payment of theatre 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.
- (2) Subject to section 826A(2), in relation to corporation tax paid by a company for an accounting period, the material date for the purposes of this section is the date on which corporation tax was paid or, if it is later, the date on which corporation tax for that accounting period became (or, as the case may be, would have become) due and payable in accordance with section 59D of the Management Act (payment of corporation tax).
- (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) Where . . . any enactment applies both to income tax and to corporation tax—
- (a) it shall not be affected in its operation by the fact that they are distinct taxes but, so far as is consistent with the Corporation Tax Acts, shall apply in relation to income tax and corporation tax as if they were one tax, so that, in particular, a matter which in a case involving two individuals is relevant for both of them in relation to income tax shall in a like case involving an individual and a company be relevant for him in relation to that tax and for it in relation to corporation tax; and
- (b) for that purpose references in any such enactment to a relief from or charge to income tax, or to a specified provision of the Income Tax Acts shall, in the absence of or subject to any express adaptation, be construed as being or including a reference to any corresponding relief from or charge to corporation tax, or to any corresponding provision of the Corporation Tax Acts.
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
##### 10
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction in chargeable profits: failure to qualify for exemptions
##### 11
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 12
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (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.
- (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—
- (a) the filing date for the company’s company tax return for the accounting period for which the R&D tax credit is claimed, and
- (b) the date on which the company tax return or amended company tax return containing the claim for payment of the R&D tax credit is delivered to the Inland Revenue.
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.
- (3AA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3B) In relation to a payment of land remediation tax credit or life assurance company tax credit falling within subsection (1)(e) above 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 land remediation tax credit or the life assurance company tax credit is claimed, and
- (b) the date on which the company tax return or amended company tax return containing the claim for payment of the land remediation tax credit or the life assurance company tax credit is delivered to the Inland Revenue.
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—
- (a) the filing date for the company's company tax return for the accounting period for which the tax credit is payable, and
- (b) the date on which the company tax return or amended company tax return containing the claim for payment is delivered to an officer of Revenue and Customs.
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.
- (3D) In relation to a payment of first-year tax credit falling within subsection (1)(g) above 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 claimed, and
- (b) the date on which the company tax return or amended company tax return containing the claim for payment of the tax credit is delivered to the Commissioners for Her Majesty's Revenue and Customs.
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.
- (4) For the purposes of this section a repayment of tax made on a claim under section 458 of CTA 2010 shall be treated as if it were a repayment of corporation tax for the accounting period in which the event giving rise to entitlement to relief under that section occurred but, in relation to such a repayment of tax, the material date for the purposes of this section is—
- (a) the date when the entitlement to relief in respect of the repayment accrued, that is to say—
- (i) where the repayment , or the release or writing off, of the loan or advance (or part thereof) occurred on or after the day mentioned in section 458(4) of CTA 2010, the date nine months after the end of that accounting period; and
- (ii) in any other case, the date nine months after the end of the accounting period in which the loan or advance was made;
or
- (b) if it is later, the date on which the tax which is to be repaid was in fact paid.
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) Where a repayment of corporation tax is a repayment of tax paid by a company on different dates, the repayment shall so far as possible be treated for the purposes of this section as a repayment of tax paid on a later rather than an earlier date among those dates.
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7B) . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) Where it appears to the inspector that the beginning or end of any accounting period of a company is uncertain, he may make an assessment on the company for such period, not exceeding 12 months, as appears to him appropriate, and that period shall be treated for all purposes as an accounting period of the company unless either—
- (a) the inspector on further facts coming to his knowledge sees fit to revise it; or
- (b) on an appeal against the assessment in respect of some other matter the company shows the true accounting periods;
and if on an appeal against an assessment made by virtue of this subsection the company shows the true accounting periods, the assessment appealed against shall, as regards the period to which it relates, have effect as an assessment or assessments for the true accounting periods, and there may be made such other assessments for any such periods or any of them as might have been made at the time when the assessment appealed against was made.
- (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Small companies’ rate
#### Qualifying vehicles
##### 13
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Advance corporation tax
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 14
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### The six Schedules
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 15
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schedule B
##### 16
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schedule C
##### 17
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schedule D
##### 18
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schedule E
##### 19
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schedule F
##### 20
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART II — PROVISIONS RELATING TO THE SCHEDULE A CHARGE
### General
#### Persons chargeable
##### 21
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assessments
##### 22
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Collection from lessees and agents
##### 23
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Construction of Part II
##### 24
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Deductions and other allowances
#### Deductions from rent: general rules
##### 25
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deductions from rent: land managed as one estate
##### 26
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deductions from rent: maintenance funds for historic buildings
##### 27
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deductions from receipts other than rent
##### 28
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sporting rights
##### 29
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenditure on making sea walls
##### 30
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 25 to 30
##### 31
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Capital allowances for machinery and plant used in estate management
##### 32
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Agricultural land: allowance for excess expenditure on maintenance
##### 33
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Premiums, leases at undervalue etc
#### Treatment of premiums etc. as rent or Schedule D profits
##### 34
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schedule D charge on assignment of lease granted at an undervalue
##### 35
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schedule D charge on sale of land with right to reconveyance
##### 36
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Premiums paid etc: deductions from premiums and rent received
##### 37
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Rules for ascertaining duration of leases
##### 38
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Saving for pre-1963 leases, and special relief for individuals
##### 39
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplementary provisions
#### Tax treatment of receipts and outgoings on sale of land
##### 40
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for rent etc. not paid
##### 41
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Appeals against determinations under sections 34 to 36
##### 42
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Non-residents
##### 43
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART III — GOVERNMENT SECURITIES
### General
#### Income tax: mode of charge
##### 44
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Part III
##### 45
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Government securities: exemptions from tax
#### Savings certificates and tax reserve certificates
##### 46
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### United Kingdom government securities held by non-residents
##### 47
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Securities of foreign states
##### 48
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Stock and dividends in name of Treasury etc
##### 49
- (1) No tax shall be chargeable in respect of the stock or dividends—
- (a) transferred, in pursuance of any Act of Parliament, to accounts in the books of the Bank of England in the name of the Treasury or the National Debt Commissioners, or
- (b) transferred, in pursuance of any Act of Parliament, to the Treasury or the National Debt Commissioners and in respect of which the Treasury or those Commissioners are entered as holder in the registers kept by the Registrar of Government Stock,
but the Bank of England and the Registrar of Government Stock shall each transmit to the Board an account of the total amount thereof in those books or registers as the case may be.
- (2) No tax shall be chargeable in respect of the stock or dividends belonging to the Crown, in whatever name they may stand in the books of the Bank of England or in the registers kept by the Registrar of Government Stock.
- (3) In this section “dividends” means any interest, public annuities, dividends or shares of annuities.
- (4) In this section “*Registrar of Government Stock*” means the person or persons appointed in accordance with regulations under section 47(1)(b) of the Finance Act 1942 (see regulation 3 of the Government Stock Regulations 2004).
### Government securities: interest payable without deduction of tax
#### United Kingdom securities: Treasury directions for payment without deduction of tax
##### 50
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treasury directions as respects Northern Ireland securities
##### 51
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of interest on converted government securities and interest which becomes subject to deduction
##### 52
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART IV — PROVISIONS RELATING TO THE SCHEDULE D CHARGE
### CHAPTER I — SUPPLEMENTARY CHARGING PROVISIONS
#### Farming and other commercial occupation of land (except woodlands)
##### 53
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Woodlands managed on a commercial basis
##### 54
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Mines, quarries and other concerns
##### 55
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions in deposits with and without certificates or in debts
##### 56
- (1) Subsection (2) below applies to the following rights—
- (a) the right to receive the amount, with or without interest, stated in a certificate of deposit;
- (b) the right to receive an amount payable with interest—
- (i) in a transaction in which no certificate of deposit or security is issued, and
- (ii) which is payable by a bank or similar institution or a person regularly engaging in similar transactions;
and the right to receive that interest.
- (2) Profits or gains arising to a company from the disposal of a right to which this subsection applies or, except so far as it is a right to receive interest, from the exercise of any such right (whether by the person to whom the certificate was issued or by some other person, or, as the case may be, by the person who acquired the right in the transaction referred to in subsection (1) above or by some person acquiring it directly or indirectly from that person), shall, if not falling to be taken into account as a trading receipt, be treated as an amount to which the charge to corporation tax on income applies.
- (3) Subsection (2) above and section 551 of ITTOIA 2005 (charge to income tax on profits from disposal of deposit rights) do not apply in the case of the disposal or exercise of a right to receive an amount stated in a certificate of deposit or interest on such an amount—
- (a) if the company disposing of the right acquired it before 7th March 1973;
- (b) to any profits or gains arising to a fund or scheme in the case of which provision is made by section 613(4) or 614(2) or (3) or section 186 of the Finance Act 2004 for exempting the whole or part of its income from income tax;
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4A) This section and section 56A shall not apply for the purposes of corporation tax except in relation to rights in existence before 1st April 1996.
- (4B) For the purposes of corporation tax, where any profits or gains arising from the disposal or exercise of a right in existence before 1st April 1996 are, or (if there were any) would be, chargeable under this section, nothing in Part 5 of CTA 2009 (loan relationships) shall require any amount relating to that disposal, or to the exercise of that right, to be brought into account for the purposes of that Part.
- (5) In this section—
- “*certificate of deposit*” means a document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable; and
- “*security*” has the same meaning as in section 132 of the 1992 Act.
#### Deep discount securities
##### 57
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign pensions
##### 58
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Persons chargeable
##### 59
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — INCOME TAX: BASIS OF ASSESSMENT ETC.
### Cases I and II
#### Assessment on preceding year basis
##### 60
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special basis at commencement of trade, profession or vocation
##### 61
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special basis for early years following commencement
##### 62
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special basis on discontinuance
##### 63
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Cases III, IV and V
#### Case III assessments: general
##### 64
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cases IV and V assessments: general
##### 65
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special rules for fresh income
##### 66
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special rules where source of income disposed of or yield ceases
##### 67
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special rules where property etc. situated in Republic of Ireland
##### 68
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Case VI
#### Assessment on current year basis unless otherwise directed
##### 69
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — CORPORATION TAX: BASIS OF ASSESSMENT ETC
#### Basis of assessment etc
##### 70
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — PROVISIONS SUPPLEMENTARY TO CHAPTERS II AND III
#### Computation of income tax where no profits in year of assessment
##### 71
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionments etc. for purposes of Cases I, II and VI
##### 72
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Single assessments for purposes of Cases III, IV and V
##### 73
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — COMPUTATIONAL PROVISIONS
### Deductions
#### General rules as to deductions not allowable
##### 74
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses of management: investment companies
##### 75
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses of management: insurance companies
##### 76
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Incidental costs of obtaining loan finance
##### 77
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Discounted bills of exchange
##### 78
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Contributions to local enterprise agencies
##### 79
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses connected with foreign trades etc
##### 80
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Travel between trades etc
##### 81
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest paid to non-residents
##### 82
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Patent fees etc. and expenses
##### 83
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments for technical education
##### 84
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments to trustees of approved profit sharing schemes
##### 85
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employees seconded to charities and educational establishments
##### 86
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxable premiums etc
##### 87
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments to Export Credit Guarantee Department
##### 88
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Debts proving irrecoverable after event treated as discontinuance
##### 89
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Additional payments to redundant employees
##### 90
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cemeteries
##### 91
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Treatment of regional development and other grants and debts released etc.
#### Regional development grants
##### 92
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other grants under Industrial Development Act 1982 etc
##### 93
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Debts deducted and subsequently released
##### 94
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of dealer’s receipts on purchase by company of own shares
##### 95
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Special provisions
#### Farming and market gardening: relief for fluctuating profits
##### 96
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treatment of farm animals etc
##### 97
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tied premises
##### 98
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dealers in land
##### 99
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VI — DISCONTINUANCE . . .
### Valuation of trading stock etc.
#### Valuation of trading stock at discontinuance of trade
##### 100
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Valuation of work in progress at discontinuance of profession or vocation
##### 101
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 100 and 101
##### 102
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Case VI charges on receipts
#### Receipts after discontinuance: earnings basis charge and related charge affecting conventional basis
##### 103
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conventional basis: general charge on receipts after discontinuance or change of basis
##### 104
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowable deductions
##### 105
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of charges where rights to payments transferred
##### 106
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Reliefs
#### Treatment of receipts as earned income
##### 107
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Election for carry-back
##### 108
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge under section 104: relief for individuals born before 6th April 1917
##### 109
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplemental
#### Interpretation etc
##### 110
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VII — PARTNERSHIPS AND SUCCESSIONS
### General
#### Partnership assessments to income tax
##### 111
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Partnerships controlled abroad
##### 112
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Effect, for income tax, of change in ownership of trade, profession or vocation
##### 113
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Partnerships involving companies
#### Special rules for computing profits and losses
##### 114
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 114
##### 115
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements for transferring relief
##### 116
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Limited partners
#### Restriction on relief: individuals
##### 117
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction on relief: companies
##### 118
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VIII — MISCELLANEOUS AND SUPPLEMENTAL
#### Rent etc. payable in connection with mines, quarries and similar concerns
##### 119
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Rent etc. payable in respect of electric line wayleaves
##### 120
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Management expenses of owner of mineral rights
##### 121
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief in respect of mineral royalties
##### 122
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign dividends
##### 123
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on quoted Eurobonds
##### 124
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annual payments for non-taxable consideration
##### 125
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treasury securities issued at a discount
##### 126
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Enterprise allowance
##### 127
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Commodity and financial futures etc.: losses and gains
##### 128
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Stock lending
##### 129
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “investment company” for purposes of Part IV
##### 130
In this Part of this Act —
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- “*investment company*”, means any company whose business consists wholly or mainly in the making of investments and the principal part of whose income is derived therefrom, but includes any savings bank or other bank for savings except any which, for the purposes of the Trustee Savings Bank Act 1985, is a successor or a further successor to a trustee savings bank.
## PART V — PROVISIONS RELATING TO THE SCHEDULE E CHARGE
### CHAPTER I — SUPPLEMENTARY CHARGING PROVISIONS OF GENERAL APPLICATION
### Miscellaneous provisions
#### Chargeable emoluments
##### 131
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Place of performance, and meaning of emoluments received in the U.K
##### 132
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Voluntary pensions
##### 133
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Workers supplied by agencies
##### 134
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Shareholdings, loans etc.
#### Gains by directors and employees from share options
##### 135
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 135
##### 136
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payment of tax under section 135 by instalments
##### 137
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Share acquisitions by directors and employees
##### 138
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 138
##### 139
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Further interpretation of sections 135 to 139
##### 140
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Vouchers etc.
#### Non-cash vouchers
##### 141
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Credit-tokens
##### 142
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cash vouchers taxable under P.A.Y.E
##### 143
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions
##### 144
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Living accommodation
#### Living accommodation provided for employee
##### 145
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Additional charge in respect of certain living accommodation
##### 146
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Occupation of Chevening House
##### 147
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Payments on retirement, sick pay etc.
#### Payments on retirement or removal from office or employment
##### 148
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sick pay
##### 149
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Job release scheme allowances, maternity pay and statutory sick pay
##### 150
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Income support etc
##### 151
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Notification of amount taxable under section 151
##### 152
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — EMPLOYEES EARNING £8,500 OR MORE AND DIRECTORS
### Expenses
#### Payments in respect of expenses
##### 153
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Benefits in kind
#### General charging provision
##### 154
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from the general charge
##### 155
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cash equivalents of benefits charged under section 154
##### 156
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cars available for private use
##### 157
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Car fuel
##### 158
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Pooled cars
##### 159
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Beneficial loan arrangements
##### 160
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from section 160
##### 161
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employee shareholdings
##### 162
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses connected with living accommodation
##### 163
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Director’s tax paid by employer
##### 164
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Scholarships
##### 165
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### General supplementary provisions
#### Notice of nil liability under this Chapter
##### 166
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “director’s or higher-paid employment”
##### 167
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other interpretative provisions
##### 168
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — PROFIT-RELATED PAY
### Preliminary
#### Interpretation
##### 169
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of profit-related pay
##### 170
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### The relief
#### Relief from tax
##### 171
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from tax
##### 172
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Registration
#### Persons who may apply for registration
##### 173
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Excluded employments
##### 174
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Applications for registration
##### 175
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Registration
##### 176
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change of scheme employer
##### 177
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Cancellation of registration
##### 178
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Administration
#### Recovery of tax from scheme employer
##### 179
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annual returns etc
##### 180
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other information
##### 181
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Appeals
##### 182
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplementary
#### Partnerships
##### 183
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Independent accountants
##### 184
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — OTHER EXEMPTIONS AND RELIEFS
### Share option and profit sharing schemes
#### Approved share option schemes
##### 185
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Approved profit sharing schemes
##### 186
- (1) The provisions of this section apply where, after 5th April 1979 and before 1st January 2003, the trustees of an approved profit sharing scheme appropriate shares—
- (a) which have previously been acquired by the trustees, and
- (b) as to which the conditions in Part II of Schedule 9 are fulfilled,
to an individual who participates in the scheme (“the participant”).
- (2) Notwithstanding that, by virtue of such an appropriation of shares as is mentioned in subsection (1) above, the beneficial interest in the shares passes to the participant to whom they are appropriated—
- (a) the value of the shares at the time of the appropriation shall be treated as not being income of his chargeable to tax under Schedule E; and
- (b) he shall not be chargeable to income tax under that Schedule by virtue of section 78 or 79 of the Finance Act 1988 in respect of the shares or by virtue of section 162 in any case where the shares are appropriated to him at an undervalue within the meaning of that section.
- (3) Subject to the provisions of this section and paragraph 4 of Schedule 10, if, in respect of or by reference to any of a participant’s shares, the trustees become or the participant becomes entitled, before the release date, to receive any money or money’s worth (“a capital receipt”), . . . the appropriate percentage (determined as at the time the trustees become or the participant becomes so entitled) of so much of the amount or value of the receipt as exceeds the appropriate allowance for that year, as determined under subsection (12) below counts as employment income of the participant for the year of assessment in which the entitlement arises.
- (4) If the trustees dispose of any of a participant’s shares at any time before the release date or, if it is earlier, the date of the participant’s death, then, subject to subsections (6) and (7) below, . . . the appropriate percentage of the locked-in value of the shares at the time of the disposal counts as employment income of the participant for the year of assessment in which the disposal takes place.
- (5) Subject to paragraphs 5 and 6(6) of Schedule 10, the locked-in value of a participant’s shares at any time is—
- (a) if prior to that time he has become entitled to a capital receipt (within the meaning of subsection (3) above) which is referable to those shares and—
- (i) an amount calculated by reference to that capital receipt counts as his employment income by virtue of subsection (3) above, or
- (ii) if the entitlement to the capital receipt arose before 6th April 2003, he was chargeable to income tax by virtue of that subsection (as it had effect before that date) in respect of that capital receipt,
the amount by which their initial market value exceeds the amount or value of that capital receipt or, if there has been more than one such receipt, the aggregate of them; and
- (b) in any other case, their initial market value.
- (6) Subject to subsection (7) below, if, on a disposal of shares falling within subsection (4) above, the proceeds of the disposal are less than the locked-in value of the shares at the time of the disposal, subsection (4) above shall have effect as if that locked-in value were reduced to an amount equal to the proceeds of the disposal.
- (7) If, at any time prior to the disposal of any of a participant’s shares, a payment was made to the trustees to enable them to exercise rights arising under a rights issue, then, subject to subsection (8) below, subsections (4) and (6) above shall have effect as if the proceeds of the disposal were reduced by an amount equal to that proportion of that payment or, if there was more than one, of the aggregate of those payments which, immediately before the disposal, the market value of the shares disposed of bore to the market value of all the participant’s shares held by the trustees at that time.
- (8) For the purposes of subsection (7) above—
- (a) no account shall be taken of any payment to the trustees if or to the extent that it consists of the proceeds of a disposal of rights arising under a rights issue; and
- (b) in relation to a particular disposal the amount of the payment or, as the case may be, of the aggregate of the payments referred to in that subsection shall be taken to be reduced by an amount equal to the total of the reduction (if any) previously made under that subsection in relation to earlier disposals;
and any reference in subsection (7) or paragraph (a) above to the rights arising under a rights issue is a reference to rights conferred in respect of a participant’s shares, being rights to be allotted, on payment, other shares or securities or rights of any description in the same company.
- (9) If at any time the participant’s beneficial interest in any of his shares is disposed of, the shares in question shall be treated for the purposes of the relevant provisions as having been disposed of at that time by the trustees for (subject to subsection (10) below) the like consideration as was obtained for the disposal of the beneficial interest; and for the purposes of this subsection there is no disposal of the participant’s beneficial interest if and at the time when—
- (a) in England and Wales or Northern Ireland, that interest becomes vested in any person on the insolvency of the participant or otherwise by operation of law, or
- (b) in Scotland, that interest becomes vested in a judicial factor, in a trustee on the participant’s sequestrated estate or in a trustee for the benefit of the participant’s creditors.
- (10) If—
- (a) a disposal of shares falling within subsection (4) above is a transfer to which paragraph 2(2)(c) of Schedule 9 applies, or
- (b) any other disposal falling within that subsection is not at arm’s length,
- (c) a disposal of shares falling within that subsection is one which is treated as taking place by virtue of subsection (9) above and takes place within the period of retention,
then for the purposes of the relevant provisions the proceeds of the disposal shall be taken to be equal to the market value of the shares at the time of the disposal.
- (11) Where the trustees of an approved scheme acquire any shares as to which the requirements of Part II of Schedule 9 are fulfilled and, within the period of 18 months beginning with the date of their acquisition, those shares are appropriated in accordance with the scheme, section 686 shall not apply to income consisting of dividends on those shares received by the trustees; and, for the purpose of determining whether any shares are appropriated within that period, shares which were acquired at an earlier time shall be taken to be appropriated before shares of the same class which were acquired at a later time.
- (12) For the purposes of subsection (3) above, “*the appropriate allowance*”, in relation to any year of assessment, means a sum which, subject to a maximum of £60, is the product of multiplying £20 by 1 plus the number of years which fall within the period of three years immediately preceding the year in question and in which shares were appropriated to the participant under the scheme; and if in any year (and before the release date) the trustees become or the participant becomes entitled, in respect of or by reference to any of his shares, to more than one capital receipt, the receipts shall be set against the appropriate allowance for that year in the order in which they are received.
- (13) Schedule 10 shall have effect with respect to profit sharing schemes.
#### Interpretation of sections 185 and 186 and Schedules 9 and 10
##### 187
- (1) In sections 185 and 186, this section and Schedules 9 and 10 “*the relevant provisions*” means those sections (including this section) and Schedules.
- (2) For the purposes of the relevant provisions, except where the context otherwise requires—
- “*appropriate percentage*” shall be construed in accordance with paragraph 3 of Schedule 10;
- “*approved*”, in relation to a scheme, means approved under Schedule 9;
- “*associated company*” has the same meaning as in section 416, except that, for the purposes of paragraph 23 of Schedule 9, subsection (1) of that section shall have effect with the omission of the words “ or at any time within one year previously ”;
- “*bonus date*” has the meaning given by paragraph 17 of Schedule 9;
- “*capital receipt*” means money or money’s worth to which the trustees of or a participant in a profit sharing scheme become or becomes entitled as mentioned in section 186(3), but subject to paragraph 4 of Schedule 10;
- “*certified contractual savings scheme*” has the meaning given by section 326;
- “*control*” has the same meaning as in section 840;
- “*grantor*”, in relation to any scheme, means the company which has established the scheme;
- “*group scheme*” and, in relation to such a scheme, “*participating company*” have the meanings given by paragraph 1(3) and (4) of Schedule 9;
- “*initial market value*”, in relation to shares in a profit sharing scheme, has the meaning given by paragraph 30(4) of Schedule 9;
- “*locked-in value*”, in relation to any shares, shall be construed in accordance with section 186(5);
- “*market value*” has the same meaning as in Part VIII of the 1992 Act;
- “*new holding*” has the meaning given by section 126(1)(b) of the 1992 Act;
- “*participant*”, in relation to a profit sharing scheme, means an individual to whom the trustees of the scheme have appropriated shares;
- “*participant’s shares*”, in relation to a participant in a profit sharing scheme, means, subject to paragraph 5(4) of Schedule 10, shares which have been appropriated to the participant by the trustees;
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- “*period of retention*” has the meaning given by paragraph 2 of Schedule 10;
- “*release date*”, in relation to any of the shares of a participant in a profit sharing scheme, means the third anniversary of the date on which they were appropriated to him;
- “*relevant amount*”, in relation to a participant in a profit sharing scheme, means an amount which is not less than £3,000 and not more than £8,000 but which, subject to that, is 10 per cent. of his salary (determined under subsection (5) below) for the year of assessment in question or the preceding year of assessment, whichever is the greater;
- “*relevant requirements*” has the meaning given by paragraph 1 of Schedule 9;
- “*savings-related share option scheme*” has the meaning given by paragraph 1 of Schedule 9;
- “*scheme*” means a savings-related share option scheme, a share option scheme which is not a savings-related share option scheme or a profit sharing scheme, as the context may require;
- “*shares*” includes stock;
- “*specified age*”, in relation to a scheme, means the age specified in pursuance of paragraph 8A of Schedule 9 as the specified age for the purposes of the scheme;
- “*the trustees*”, in relation to an approved profit sharing scheme or the shares of a participant in such a scheme, means the body of persons for the establishment of which the scheme must provide as mentioned in paragraph 30 of Schedule 9; and
- “*just instrument*”, in relation to an approved profit sharing scheme, means the instrument referred to in paragraph 30(1)(c) of Schedule 9.
- (3) For the purposes of the application of the relevant provisions in relation to any share option scheme or profit sharing scheme, a person has a material interest in a company if he, either on his own or with one or more associates, or if any associate of his with or without such other associates,—
- (a) is 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, or
- (b) where the company is a close company, possesses, or is entitled to acquire, such rights as would, in the event of the winding-up of the company or in any other circumstances, give an entitlement to receive 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 assets which would then be available for distribution among the participators.
- In this subsection “*associate*” has the meaning given by section 417(3) and (4) and “*participator*” has the meaning given by section 417(1).
- (4) Subsection (3) above shall have effect subject to the provisions of Part VI of Schedule 9.
- (5) For the purposes of subsection (2) above, a participant’s salary for a year of assessment means such of the emoluments of the office or employment by virtue of which he is entitled to participate in a profit sharing scheme as are liable to be paid in that year under deduction of tax pursuant to section 203 after deducting therefrom amounts included by virtue of Chapter II of this Part.
- (6) Section 839 shall apply for the purposes of the relevant provisions.
- (7) For the purposes of the relevant provisions a company is a member of a consortium owning another company if it is one of a number of companies which between them beneficially own not less than three-quarters of the other company’s ordinary share capital and each of which beneficially owns not less than one-twentieth of that capital.
- (8) Where the disposal referred to in section 186(4) is made from a holding of shares which were appropriated to the participant at different times, then, in determining for the purposes of the relevant provisions—
- (a) the initial market value and the locked-in value of each of those shares, . . .
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) Any of the relevant provisions with respect to—
- (a) the order in which any of a participant’s shares are to be treated as disposed of for the purposes of those provisions, or
- (b) the shares in relation to which an event is to be treated as occurring for any such purpose,
shall have effect in relation to a profit sharing scheme notwithstanding any direction given to the trustees with respect to shares of a particular description or to shares appropriated to the participant at a particular time.
- (10) In the relevant provisions “*workers’ cooperative*” means a registered society, as defined in section 1119 of CTA 2010, which is a cooperative society and the rules of which include provisions which secure—
- (a) that the only persons who may be members of it are those who are employed by, or by a subsidiary of, the society and those who are the trustees of its profit sharing scheme; and
- (b) that, subject to any provision about qualifications for membership which is from time to time made by the members of the society by reference to age, length of service or other factors of any description, all such persons may be members of the society;
and in this subsection “*cooperative society*” has the same meaning as in section 2 of the Co-operative and Community Benefit Societies Act 2014 or, as the case may be, section 1 of the Industrial and Provident Societies Act (Northern Ireland) 1969.
### Retirement benefits etc.
#### Exemptions from section 148
##### 188
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lump sum benefits on retirement
##### 189
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments to Members of Parliament, Representatives to the European Parliament and others
##### 190
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Job release scheme allowances not to be treated as income
##### 191
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Foreign emoluments and earnings, pensions and certain travel facilities
#### Relief from tax for foreign emoluments
##### 192
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign earnings and travel expenses
##### 193
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other foreign travel expenses
##### 194
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Travel expenses of employees not domiciled in the United Kingdom
##### 195
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign pensions
##### 196
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leave travel facilities for the armed forces
##### 197
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Other expenses, subscriptions etc.
#### Relief for necessary expenses
##### 198
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses necessarily incurred and defrayed from official emoluments
##### 199
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenses of Members of Parliament
##### 200
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Fees and subscriptions to professional bodies, learned societies etc
##### 201
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Donations to charity: payroll deduction scheme
##### 202
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — ASSESSMENT, COLLECTION, RECOVERY AND APPEALS
#### Pay as you earn
##### 203
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### P.A.Y.E repayments
##### 204
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assessments unnecessary in certain circumstances
##### 205
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Additional provision for certain assessments
##### 206
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disputes as to domicile or ordinary residence
##### 207
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART VI — COMPANY DISTRIBUTIONS, TAX CREDITS ETC
### CHAPTER I — TAXATION OF COMPANY DISTRIBUTIONS
#### U.K. company distributions not generally chargeable to corporation tax
##### 208
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — MATTERS WHICH ARE DISTRIBUTIONS FOR THE PURPOSES OF THE CORPORATION TAX ACTS
#### Meaning of “distribution”
##### 209
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Bonus issue following repayment of share capital
##### 210
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Matters to be treated or not to be treated as repayments of share capital
##### 211
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — MATTERS WHICH ARE NOT DISTRIBUTIONS FOR THE PURPOSES OF THE CORPORATION TAX ACTS
### Payments of interest
#### Interest etc. paid in respect of certain securities
##### 212
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Demergers
#### Exempt distributions
##### 213
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Chargeable payments connected with exempt distributions
##### 214
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Advance clearance by Board of distributions and payments
##### 215
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Returns
##### 216
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information
##### 217
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 213 to 217
##### 218
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Purchase of own shares
#### Purchase by unquoted trading company of own shares
##### 219
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions as to residence and period of ownership
##### 220
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of vendor’s interest as shareholder
##### 221
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions applicable where purchasing company is member of group
##### 222
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other conditions
##### 223
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relaxation of conditions in certain cases
##### 224
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Advance clearance of payments by Board
##### 225
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Returns and information
##### 226
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Associated persons
##### 227
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Connected persons
##### 228
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other interpretative provisions
##### 229
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Stock dividends
#### Stock dividends: distributions
##### 230
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — TAX CREDITS
#### Tax credits for certain recipients of qualifying distributions
##### 231
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax credits for non-U.K. residents
##### 232
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of certain recipients of distributions and in respect of non-qualifying distributions
##### 233
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information relating to distributions
##### 234
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Distributions of exempt funds etc
##### 235
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 235
##### 236
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disallowance of reliefs in respect of bonus issues
##### 237
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — ADVANCE CORPORATION TAX AND FRANKED INVESTMENT INCOME
#### Interpretation of terms and collection of ACT
##### 238
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of ACT against liability to corporation tax
##### 239
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of company’s surplus ACT against subsidiary’s liability to corporation tax
##### 240
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Calculation of ACT where company receives franked investment income
##### 241
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of losses etc. against surplus of franked investment income
##### 242
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of loss brought forward, or terminal loss
##### 243
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Further provisions relating to claims under section 242 or 243
##### 244
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Calculation etc. of ACT on change of ownership of company
##### 245
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge of ACT at previous rate until new rate fixed, and changes of rate
##### 246
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VI — MISCELLANEOUS AND SUPPLEMENTAL
### Group income
#### Dividends etc. paid by one member of a group to another
##### 247
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 247
##### 248
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Stock dividends
#### Stock dividends treated as income
##### 249
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Returns
##### 250
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 249 and 250
##### 251
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplemental
#### Rectification of excessive set-off etc. of ACT or tax credit
##### 252
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to modify or replace section 234(5) to (9) and Schedule 13
##### 253
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Part VI
##### 254
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### “Gross rate” and “gross amount” of distributions to include ACT
##### 255
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART VII — GENERAL PROVISIONS RELATING TO TAXATION OF INCOME OF INDIVIDUALS
### CHAPTER I — PERSONAL RELIEFS
### The reliefs
#### General
##### 256
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Personal relief
##### 257
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Widower’s or widow’s housekeeper
##### 258
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Additional relief in respect of children
##### 259
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of relief under section 259
##### 260
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims under sections 258 and 259 for year of marriage
##### 261
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Widows' bereavement allowance
##### 262
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dependent relatives
##### 263
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claimant depending on services of a son or daughter
##### 264
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for blind persons
##### 265
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life assurance premiums
##### 266
- (1) Subject to the provisions of this section, section 274 and Schedules 14 and 15 and sections 192 to 194 of the Finance Act 2004, an eligible individual who pays any such premium as is specified in subsection (2) below . . . shall (without making any claim) be entitled to relief under this section.
- (1A) For the purposes of subsection (1) above an individual is an eligible individual if the individual—
- (a) is resident in the United Kingdom, or
- (b) meets the conditions in section 56(3) of ITA 2007.
- (2) The premiums referred to in subsection (1) above are any premiums paid by an individual under a policy of insurance or contract for a deferred annuity, where—
- (a) the payments are made to —
- (i) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 or under paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to effect or carry out contracts of long-term insurance; or
- (ii) a member of the Society who effects or carries out contracts of long-term insurance in accordance with Part 19 of the Financial Services and Markets Act 2000;
- (iv) in the case of a deferred annuity, the National Debt Commissioners; and
- (b) the insurance or, as the case may be, the deferred annuity is on the life of the individual or on the life of his spouse or civil partner; and
- (c) the insurance or contract was made by him or his spouse or civil partner.
- (3) Subject to subsections . . . (10) and (11) below, no relief under this section shall be given—
- (a) except in respect of premiums payable under policies for securing a capital sum on death, whether in conjunction with any other benefit or not;
- (b) in respect of premiums payable under any policy issued in respect of an insurance made after 19th March 1968 unless the policy is a qualifying policy;
- (c) in respect of premiums payable under any policy issued in respect of an insurance made after 13th March 1984 . . . ;
- (d) in respect of premiums payable during the period of deferment in respect of a policy of deferred assurance.
- (4) Subject to subsection (8) below, relief under this section in respect of any premiums paid by an individual in a year of assessment shall be given by making good to the person to whom they are paid any deficiency arising from the deductions authorised under subsection (5) below; and this section and Schedule 14 shall have effect in relation to any premium or part of a premium which is paid otherwise than in the year of assessment in which it becomes due and payable as if it were paid in that year.
- (5) Subject to the provisions of Schedule 14—
- (a) an individual resident in the United Kingdom who is entitled to relief under this section in respect of any premium may deduct from any payment in respect of the premium and retain an amount equal to 12.5 per cent of the payment; and
- (b) the person to whom the payment is made shall accept the amount paid after the deduction in discharge of the individual’s liability to the same extent as if the deduction had not been made and may recover the deficiency from the Board.
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) Where the individual is not resident in the United Kingdom (but is entitled to relief by virtue of subsection (1A)(b)), subsection (4) above shall not apply but . . . the like relief shall be given to him under paragraph 6 of Schedule 14.
- (9) Subsections (5) and (8) above shall apply in relation to an individual who is not resident in the United Kingdom but is a member of the armed forces of the Crown or the spouseor civil partner of such a member as if the individual were so resident.
- (10) Subsection (3)(b) above shall not apply—
- (a) to any policy of life insurance having as its sole object the provision on an individual’s death or disability of a sum substantially the same as any amount then outstanding under a mortgage of his residence, or of any premises occupied by him for the purposes of a business, being a mortgage the principal amount secured by which is repayable by instalments payable annually or at shorter regular intervals; or
- (b) to any policy of life insurance issued in connection with an approved scheme as defined in Chapter I of Part XIV.
- (11) Subsection (3)(a) and (d) above shall not affect premiums payable—
- (a) under policies or contracts made in connection with any superannuation or bona fide pension scheme for the benefit of the employees of any employer, or of persons engaged in any particular trade, profession, vocation or business, or for the benefit of the spouse, civil partner, widow, widower , surviving civil partner or children or other dependants of any such employee or person, or
- (b) under policies taken out by teachers in the schools known in the year 1918 as secondary schools, pending the establishment of a superannuation or pension scheme for those teachers.
- (12) Schedule 14 shall have effect for the purpose of modifying, for certain cases, and supplementing the provisions of this section.
- (13) In . . . Schedule 14, “*friendly society*” means the same as in the Friendly Societies Act 1992 (and includes any society that by virtue of section 96(2) of that Act is to be treated as a registered friendly society within the meaning of that Act).
- (14) In subsection (2)(a)—
- “contracts of long-term insurance” means contracts which fall within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; and
- “member of the society” has the same meaning as in Lloyd’s Act 1982 .
#### Qualifying policies
##### 267
Schedule 15, Part I of which contains the basic rules for determining whether or not a policy is a qualifying policy, Part II of which makes provision for the certification etc. of policies as qualifying policies and Part III of which modifies Parts I and II in their application to certain policies issued by non-resident companies, shall have effect for the purpose of determining whether or not a policy is a qualifying policy; and, accordingly, any reference in this Act to a qualifying policy shall be construed in accordance with that Schedule.
#### Early conversion or surrender of life policies
##### 268
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Surrender etc. of policies after four years
##### 269
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 268 and 269
##### 270
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deemed surrender in cases of certain loans
##### 271
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Collection of sums payable under sections 268 and 269
##### 272
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments securing widows' and children’s annuities
##### 273
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limits on relief under sections 266 and 273
##### 274
- (1) The aggregate of the premiums . . . in respect of which relief is given to any person under section 266 shall not exceed £1,500 in any year of assessment or one-sixth of that person’s total income, whichever is the greater.
- (2) The aggregate of the relief given under section 266 in respect of premiums . . . payable for securing any benefits other than capital sums on death shall not exceed the amount of the income tax calculated at 12.5% on £100.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) War insurance premiums shall not be taken into account in calculating the limits of one-sixth of total income or of £100 mentioned in this section.
### Supplemental
#### Meaning of “relative”
##### 275
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Effect on relief of charges on income
##### 276
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Partners
##### 277
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Non-residents
##### 278
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — TAXATION OF INCOME OF SPOUSES AND CIVIL PARTNERS
### General rules
#### Aggregation of wife’s income with husband's
##### 279
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfer of reliefs
##### 280
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax repayments to wives
##### 281
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Construction of references to married women living with their husbands
##### 282
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Separate assessments
#### Option for separate assessment
##### 283
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Effect of separate assessment on personal reliefs
##### 284
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Collection from wife of tax assessed on husband but attributable to her income
##### 285
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Right of husband to disclaim liability for tax on deceased wife’s income
##### 286
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Separate taxation
#### Separate taxation of wife’s earnings
##### 287
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Elections under section 287
##### 288
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — ENTERPRISE INVESTMENT SCHEME
#### The relief
##### 289
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Minimum and maximum subscriptions
##### 290
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Individuals qualifying for relief
##### 291
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Parallel trades
##### 292
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
##### 293
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Companies with interests in land
##### 294
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Valuation of interests in land for purposes of section 294(1)(b)
##### 295
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Section 294 disapplied where amounts raised total £50,000 or less
##### 296
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trades
##### 297
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 293 and 297
##### 298
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disposal of shares
##### 299
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Value received from company
##### 300
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 300
##### 301
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Replacement capital
##### 302
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Value received by persons other than claimants
##### 303
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Husband and wife
##### 304
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reorganisation of share capital
##### 305
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims
##### 306
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Withdrawal of relief
##### 307
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application to subsidiaries
##### 308
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Further provisions as to subsidiaries
##### 309
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information
##### 310
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Nominees, bare trustees and approved investment funds
##### 311
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter III
##### 312
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — SPECIAL PROVISIONS
#### Taxation of consideration for certain restrictive undertakings
##### 313
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Divers and diving supervisors
##### 314
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Wounds and disability pensions
##### 315
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowances, bounties and gratuities
##### 316
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Victoria Cross and other awards
##### 317
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other pensions in respect of death due to war service etc
##### 318
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Crown servants: foreign service allowance
##### 319
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Commonwealth Agents-General and official agents etc
##### 320
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Consuls and other official agents
##### 321
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Consular officers and employees
##### 322
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Visiting forces
##### 323
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Designated international organisations
##### 324
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on deposits with National Savings Bank
##### 325
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest etc. under contractual savings schemes
##### 326
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disabled person’s vehicle maintenance grant
##### 327
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Funds in court
##### 328
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on damages for personal injuries
##### 329
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Compensation for National-Socialist persecution
##### 330
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Scholarship income
##### 331
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Expenditure and houses of ministers of religion
##### 332
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Personal equity plans
##### 333
Regulations under Chapter 3 of Part 6 of ITTOIA 2005 (income from individual investment plans) may include provision generally for the purpose of the administration of corporation tax in relation to plans.
### CHAPTER V — RESIDENCE OF INDIVIDUALS
#### Commonwealth citizens and others temporarily abroad
##### 334
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Residence of persons working abroad
##### 335
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Temporary residents in the United Kingdom
##### 336
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART VIII — TAXATION OF INCOME AND CHARGEABLE GAINS OF COMPANIES
### Taxation of income
#### Companies beginning or ceasing to carry on a trade
##### 337
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowance of charges on income and capital
##### 338
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charges on income: donations to charity
##### 339
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charges on income: interest payable to non-residents
##### 340
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments of interest etc. between related companies
##### 341
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax on company in liquidation
##### 342
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Company reconstructions without a change of ownership
##### 343
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Company reconstructions: supplemental
##### 344
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Chargeable gains
#### Computation of chargeable gains
##### 345
#### Capital distribution of chargeable gains: recovery of tax from shareholder
##### 346
#### Tax on one member of group recoverable from another member
##### 347
## PART IX — ANNUAL PAYMENTS AND INTEREST
### Annual payments
#### Payments out of profits or gains brought into charge to income tax: deduction of tax
##### 348
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments not out of profits or gains brought into charge to income tax, and annual interest
##### 349
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax where payments made under section 349
##### 350
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Small maintenance payments
##### 351
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Certificates of deduction of tax
##### 352
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Relief for payments of interest (excluding MIRAS)
#### General provision
##### 353
- (1) Where a person pays interest in any year of assessment, that person, if he makes a claim to the relief, shall for that year of assessment be entitled (subject to . . . section 52 of ITTOIA 2005) to relief in accordance with this section in respect of so much (if any) of the amount of that interest as is eligible for relief under this section by virtue of section 365.
- (1A) Where a person is entitled for a year of assessment to relief under this section in respect of an amount of interest which is eligible for relief by virtue of section 365, the relief is given as a tax reduction for that tax year.
- (1AA) The amount of the tax reduction is 23% of the amount of the interest.
- (1AB) The tax reduction is given effect at Step 6 of the calculation in section 23 of ITA 2007.
- (1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1E) Where any person is entitled for any year of assessment to relief . . . in respect of any amount of interest as is eligible for that relief partly as mentioned in subsection (1A) above and partly as mentioned in section 383 of ITA 2007 (relief for interest payments), that amount of interest shall be apportioned between the cases to which each of those provisions applies without regard to what parts of the total amount borrowed remain outstanding but according to . . . —
- (a) the proportions of the total amount borrowed which were applied for different purposes; . . .
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
and subsection (1A) above or section 383 of ITA 2007 shall apply accordingly to the case in which that subsection or section applies.
- (1F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (1H) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) This section does not apply to a payment of relevant loan interest to which section 369 applies.
- (3) Relief under this section shall not be given in respect of—
- (a) interest on a debt incurred by overdrawing an account or by debiting the account of any person as the holder of a credit card or under similar arrangements; or
- (b) where interest is paid at a rate in excess of a reasonable commercial rate, so much of the interest as represents the excess.
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loans to buy land etc
##### 354
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Matters excluded from section 354
##### 355
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Job-related accommodation
##### 356
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limit on amount of loan eligible for relief by virtue of section 354
##### 357
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief where borrower deceased
##### 358
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy machinery or plant
##### 359
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy interest in close company
##### 360
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy interest in co-operative or employee-controlled company
##### 361
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy into partnership
##### 362
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 360 to 362
##### 363
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to pay inheritance tax
##### 364
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loan to buy life annuity
##### 365
- (1) Subject to the following provisions of this section, interest is eligible for relief under section 353 if it is interest on a loan in respect of which the following conditions are satisfied—
- (aa) that the loan was made before 9th March 1999;
- (a) that the loan was made as part of a scheme under which not less than nine-tenths of the proceeds of the loan were applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons (“*the annuitants*”) who include the person to whom the loan was made;
- (b) that at the time the loan was made the person to whom it was made or each of the annuitants had attained the age of 65 years;
- (c) that the loan was secured on land in the United Kingdom or the Republic of Ireland and the person to whom it was made or one of the annuitants owns an estate or interest in that land; and
- (d) that, if the loan was made after 26th March 1974, the person to whom it was made or each of the annuitants used the land on which it was secured as his only or main residence immediately before 9th March 1999 .
- (1AA) Where—
- (a) a loan made on or after 9th March 1999 was made in pursuance of an offer made by the lender before that date, and
- (b) the offer was either in writing or evidenced by a note or memorandum made by the lender before that date,
the loan shall be deemed for the purposes of subsection (1)(aa) above to have been made before that date.
- (1AB) Subject to subsection (1AC) below, the conditions in paragraphs (aa) and (a) of subsection (1) above shall be treated as satisfied in relation to a loan (“*the new loan*”) if—
- (a) the new loan was made on or after the day on which the Finance Act 1999 was passed;
- (b) the new loan was made as part of a scheme (“*the scheme*”) under which the whole or any part of the proceeds of the loan was used to defray money applied in paying off another loan (“*the old loan*”); and
- (c) the conditions in subsection (1) above were, or were treated by virtue of this subsection as, satisfied with respect to the old loan.
- (1AC) If only part of the proceeds of the new loan was used to defray money applied in paying off the old loan, subsection (1AB) above applies only if, under the scheme, not less than nine-tenths of the remaining part of the proceeds of the new loan was applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons who include him.
- (1AD) In subsection (1AC) above “*the remaining part*” means the part of the proceeds of the new loan that was not used to defray money applied in paying off the old loan.
- (1A) The condition in subsection (1)(d) above shall be treated as satisfied in relation to a loan if—
- (a) the person to whom the loan was made, or any of the annuitants, ceased to use the land as his only or main residence at a time falling within the period of twelve months ending with 8th March 1999, and
- (b) the intention at that time of the person to whom the loan was made, or each of the annuitants owning an estate or interest in the land, was to take steps, before the end of the period of twelve months after the day on which the land ceased to be so used, with a view to the disposal of his estate or interest.
- (1B) If it appears to the Board reasonable to do so, having regard to all the circumstances of a particular case, they may direct that in relation to that case subsection (1A) above shall have effect as if for the reference to 12 months there were substituted a reference to such longer period as meets the circumstances of that case.
- (2) Interest is not eligible for relief by virtue of this section unless it is payable by the person to whom the loan was made or by one of the annuitants.
- (3) If the loan was made after 26th March 1974 interest on it is eligible for relief by virtue of this section only to the extent that the amount on which it is payable does not exceed the sum of £30,000; and if the interest is payable by two or more persons the interest payable by each of them is so eligible only to the extent that the amount on which it is payable does not exceed such amount as bears to that sum the same proportion as the interest payable by him bears to the interest payable by both or all of them.
#### Information
##### 366
- (1) A person who claims relief under section 353 in respect of any payment of interest shall furnish to the inspector a statement in writing by the person to whom the payment is made, showing—
- (a) the date when the debt was incurred;
- (b) the amount of the debt when incurred;
- (c) the interest paid in the year of assessment for which the claim is made . . . ; and
- (d) the name and address of the debtor.
- (2) Where any such interest as is mentioned in section 353 is paid, the person to whom it is paid shall, if the person who pays it so requests in writing, furnish him with such statement as regards that interest as is mentioned in subsection (1) above; and the duty imposed by this subsection shall be enforceable at the suit or instance of the person making the request.
- (3) Subsections (1) and (2) above do not apply to interest paid to a building society, or to a local authority.
#### Provisions supplementary to sections 354 to 366
##### 367
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) In section 365(3) references to the qualifying maximum for the year of assessment are references to such sum as Parliament may determine for the purpose for that year.
#### Exclusion of double relief etc
##### 368
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Mortgage interest relief at source
#### Mortgage interest payable under deduction of tax
##### 369
- (1) If a person who is a qualifying borrower makes a payment of relevant loan interest to which this section applies, he shall be entitled, on making the payment, to deduct and retain out of it a sum equal to the applicable percentage thereof.
- (1A) In subsection (1) above “*the applicable percentage*” means 23 per cent..
- (2) Where a sum is deducted under subsection (1) above from a payment of relevant loan interest—
- (a) the person to whom the payment is made shall allow the deduction on receipt of the residue;
- (b) the borrower shall be acquitted and discharged of so much money as is represented by the deduction as if the sum had been actually paid; and
- (c) the sum deducted shall be treated as income tax paid by the person to whom the payment is made.
- (3) The following payments, that is to say—
- (a) payments of relevant loan interest to which this section applies, and
- (b) payments which would be such payments but for section 373(5),
shall not be allowable as deductions for any purpose of the Income Tax Acts except in so far as they fall to be treated as such payments by virtue only of section 375(2) and would be allowable apart from this subsection.
- (6) Sections 967(2) and 968(2) of CTA 2010 do not apply to a payment of relevant loan interest to which this section applies, but any person by whom such a payment is received shall be entitled to recover from the Board, in accordance with regulations, an amount which by virtue of subsection (2)(c) above is treated as income tax paid by him; and any amount so recovered shall be treated for the purposes of the Tax Acts in like manner as the payment of relevant loan interest to which it relates.
- (7) The following provisions of the Management Act, namely—
- (a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act;
- (b) section 30 (tax repaid in error etc.) apart from subsection (1B),
- (c) section 86 (interest), and
- (d) section 95 (incorrect return or accounts),
shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable in accordance with regulations made by virtue of subsection (6) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due.
- (8) In the application of section 86 of the Management Act by virtue of subsection (7) above in relation to sums due and payable by virtue of an assessment made for the whole or part of a year of assessment (“the relevant year of assessment”) under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date—
- (a) is 1st January in the relevant year of assessment in a case where the person falling within subsection (6) above has made a relevant interim claim; and
- (b) in any other case, is the later of the following dates, that is to say—
- (i) 1st January in the relevant year of assessment; or
- (ii) the date of the making of the payment by the Board which gives rise to the assessment.
- (9) In this section—
- “*financial year*”, in relation to any person, means a financial year of that person for the purposes of the relevant regulations;
- “*interim claim*” means an interim claim within the meaning of the relevant regulations;
- “*relevant interim claim*” means, in relation to an assessment made for a period coterminous with, or falling wholly within, a person’s financial year, an interim claim made for a period falling wholly or partly within that financial year; and
- “*the relevant regulations*” means regulations made under section 378(3) for the purposes of subsection (6) above.
#### Relevant loan interest
##### 370
- (1) Subject to this section and sections 373 to 376, in this Part “*relevant loan interest*” means interest which is paid and payable in the United Kingdom to a qualifying lender and to which subsection (2) . . . below applies.
- (2) Subject to subsection (4) below, this subsection applies to interest if, disregarding section 353(2) and any other provision applying to interest falling to be treated as relevant loan interest—
- (a) it is interest falling within section . . . 365; and
- (b) apart (where applicable) from section . . . 365(3), the whole of the interest would be eligible for relief under section 353;. . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) In determining whether subsection (2) above applies to any interest, section 365 shall have effect as if the words “or the Republic of Ireland” were omitted.
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Second loans
##### 371
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Home improvement loans
##### 372
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Loans in excess of the qualifying maximum, and joint borrowers
##### 373
- (1) The provisions of this section have effect in relation to a loan where, by virtue of . . . section 365(3), only part of the interest on the loan would (apart from section 353(2)) be eligible for relief under section 353; and in this section any such loan is referred to as a “*limited loan*”.
- (2) None of the interest on a limited loan is relevant loan interest unless—
- (a) the loan is made on or after 6th April 1987; or
- (b) the qualifying lender to whom the interest is payable has given notice to the Board in accordance with regulations that he is prepared to have limited loans of a description which includes that limited loan brought within the tax deduction scheme.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) Where the condition in paragraph (a) or (b) of subsection (2) above is fulfilled . . . only so much of the interest as (apart from section 353(2)) would be eligible for relief under section 353 is relevant loan interest.
- (6) Where a loan on which interest is payable by the borrower was made jointly to the borrower and another person who is not the borrower’s husband or wife, the interest on the loan is not relevant loan interest unless—
- (a) each of the persons to whom the loan was made is a qualifying borrower; and
- (b) in relation to each of them considered separately, the whole of that interest is relevant loan interest, in accordance with section 370 and this section.
- (7) In subsection (6) above references to the borrower’s husband or wife do not include references to a separated husband or wife . . . .
#### Conditions for application of section 369
##### 374
- (1) Section 369 does not apply to any relevant loan interest unless—
- (a) in the case of a loan of a description specified by regulations for the purposes of this paragraph, the borrower or, in the case of joint borrowers, each of them has given notice to the lender in the prescribed form certifying—
- (i) that he is a qualifying borrower; and
- (ii) that the interest is relevant loan interest; and
- (iii) such other matters as may be prescribed; or
- (b) the Board have given notice to the lender and the borrower that the interest may be paid under deduction of tax; or
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (d) the loan to which the interest relates is of a description specified by regulations for the purposes of this paragraph and was made—
- (i) if sub-paragraph (2) of paragraph 2 of Schedule 7 to the Finance Act 1982 applied to interest on the loan which became due on or after a date earlier than 6th April 1983, being a date specified by the Board in pursuance of sub-paragraph (5) of that paragraph, before that earlier date; or
- (ii) if the qualifying lender is a building society or a local authority, before 1st April 1983; or
- (iii) if sub-paragraphs (i) and (ii) above do not apply and the interest falls within section 370(2), before 6th April 1983.
- (2) Where notice has been given as mentioned in paragraph (a) or (b) of subsection (1) above, section 369 applies to any relevant loan interest to which the notice relates and which becomes due on or after the relevant date, as defined by subsection (3) below; and in a case falling within paragraph . . . (d) of subsection (1) above, section 369 applies to the relevant loan interest referred to in that paragraph.
- (3) In subsection (2) above “*the relevant date*” means—
- (a) in the case of a notice under subsection (1)(a) above, the date the notice is given, and
- (b) in the case of a notice under subsection (1)(b) above, a date specified in the notice as being the relevant date (which may be earlier than the date so specified as the date from which the interest may be paid under deduction of tax).
#### Interest ceasing to be relevant loan interest, etc
##### 375
- (1) If at any time—
- (a) the interest on a loan ceases to be relevant loan interest; or
- (b) a person making payments of relevant loan interest ceases to be a qualifying borrower;
the borrower shall give notice of the fact to the lender.
- (2) Without prejudice to subsection (3) below, in relation to a payment of interest—
- (a) which is due after the time referred to in subsection (1) above and before the date on which notice is given under that subsection, and
- (aa) as respects which any of the conditions mentioned in 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 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 any deduction or to retain any amount deducted and, accordingly, where any amount that has been deducted exceeds the amount which ought to have been deducted, he shall be liable to make good the excess and an inspector may make such assessments as may in his judgment be required for recovering the excess.
- (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.
- (4A) If there is any unreasonable delay in the giving of a notice under subsection (1) above, the borrower shall be liable to a penalty not exceeding so much of the aggregate amount that he is liable to make good under subsection (3) above as is attributable to that delay.
- (5) If, as a result of receiving a notice under subsection (1) above or otherwise, a qualifying lender has reason to believe that any interest is no longer relevant loan interest or that a borrower is no longer a qualifying borrower, the lender shall furnish the Board with such information as is in his possession with respect to those matters.
- (6) Where it appears to the Board that any of the provisions of sections 370 to 373 is not or may not be fulfilled with respect to any interest, or that a qualifying borrower has or may have ceased to be a qualifying borrower, they shall give notice of that fact to the lender and the borrower specifying the description of relevant loan interest concerned or, as the case may be, that the borrower has or may have ceased to be a qualifying borrower.
- (7) Section 369 shall not apply to any payment of relevant loan interest of a description to which a notice under subsection (6) above relates and which becomes due or is made after such date as may be specified in the notice and before such date as may be specified in a further notice given by the Board to the lender and the borrower.
- (8) In any case where—
- (a) section 369 applies to any relevant loan interest by virtue of a notice under section 374(1)(b), and
- (b) the relevant date specified in the notice is earlier than the date from which the interest begins to be paid under deduction of tax, and
- (c) a payment of that interest was made on or after the relevant date but not under deduction of tax,
regulations may provide for a sum to be paid by the Board of an amount equal to that which the borrower would have been able to deduct from that payment by virtue of section 369 if it had been made after the relevant date.
- (8A) In any case where an amount to which a person is not entitled is paid to him by the Board in pursuance of regulations made by virtue of subsection (8) above, regulations may—
- (a) provide for an officer of the Board to make such assessments as may in his judgment be required for recovering that amount from that person; and
- (b) make provision corresponding to that made by subsection (4A) above and subsections (4) and (5) of section 374A.
- (8B) Subsections (1), (5) and (6) above shall not apply where interest ceases to be relevant loan interest by virtue of section 38 of the Finance Act 1999.
- (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying borrowers and qualifying lenders
##### 376
- (1) Subject to subsection (2) below, an individual is a qualifying borrower with respect to the interest on any loan.
- (2) In relation to interest paid at a time when the borrower or the borrower’s husband or wife holds an office or employment which would, but for some special exemption or immunity from tax, be a taxable employment under Part 2 of ITEPA 2003 (as defined by section 66(3) of that Act), the borrower is not a qualifying borrower.
- (3) In subsection (2) above references to the borrower’s husband or wife do not include references to a separated husband or wife . . . .
- (4) The following bodies are qualifying lenders:—
- (a) a building society;
- (b) a local authority;
- (c) the Bank of England;
- (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (e) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;
- (f) any company to which property and rights belonging to a trustee savings bank were transferred by section 3 of the Trustee Savings Bank Act 1985;
- (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (h) a development corporation within the meaning of the New Towns Act 1981 or the New Towns (Scotland) Act 1968;
- (j) the Homes and Communities Agency;
- (ja) the Greater London Authority so far as exercising its housing or regeneration functions or its new towns and urban development functions;
- (k) the Regulator of Social Housing,
- (ka) the Secretary of State if the loan is made by him under section 79 of the Housing Associations Act 1985;
- (l) the Northern Ireland Housing Executive;
- (m) the Scottish Special Housing Association;
- (n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (o) the Church of England Pensions Board;
- (p) any body which is for the time being registered under section 376A.
- (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Variation of terms of repayment of certain loans
##### 377
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary regulations
##### 378
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) The Board may by regulations make provision—
- (a) for the purposes of any provision of sections 369 to 376A which relates to any matter or thing to be specified by or done in accordance with regulations;
- (b) for the application of those sections in relation to loan interest paid by personal representatives and trustees;
- (c) with respect to the furnishing of information by borrowers or lenders, including, in the case of lenders, the inspection of books, documents and other records on behalf of the Board;
- (d) for, and with respect to, appeals to the tribunal against the refusal of the Board to issue a notice under section 374(1)(b) or the issue of a notice under section 375(6) or (7); and
- (e) generally for giving effect to sections 369 to 376A.
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 369 to 378
##### 379
In sections 369 to 378—
- “contracts of general insurance” means contracts which fall within Part I of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 and “contracts of long-term insurance” means contracts which fall within Part II of that Schedule;
- “*prescribed*” . . . means prescribed by the Board;
- “*qualifying borrower*” has the meaning given by section 376(1) to (3);
- “*qualifying lender*” has the meaning given by section 376(4) . . . ;
- “*regulations*” . . . means regulations made by the Board under section 378;
- “*relevant loan interest*” has the meaning given by section 370(1);
- “*separated*” means separated under an order of a court of competent jurisdiction or by deed of separation or in such circumstances that the separation is likely to be permanent.
## PART X — LOSS RELIEF AND GROUP RELIEF
### CHAPTER I — LOSS RELIEF: INCOME TAX
### Trade etc. losses
#### Set-off against general income
##### 380
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Further relief for individuals for losses in early years of trade
##### 381
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 380 and 381
##### 382
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Extension of right of set-off to capital allowances
##### 383
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restrictions on right of set-off
##### 384
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward against subsequent profits
##### 385
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward where business transferred to a company
##### 386
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward as losses of amounts taxed under section 350
##### 387
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-back of terminal losses
##### 388
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions relating to carry-back of terminal losses
##### 389
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treatment of interest as a loss for purposes of carry-forward and carry-back
##### 390
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Losses from trade etc. carried on abroad
##### 391
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Case VI losses
#### Case VI losses
##### 392
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — LOSS RELIEF: CORPORATION TAX
### Trade etc. losses
#### Losses other than terminal losses
##### 393
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Terminal losses
##### 394
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leasing contracts and company reconstructions
##### 395
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Case VI losses
#### Case VI losses
##### 396
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — LOSS RELIEF: MISCELLANEOUS PROVISIONS
#### Restriction of relief in case of farming and market gardening
##### 397
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions in deposits with and without certificates or in debts
##### 398
Where a company sustains a loss on the exercise or disposal of a right to receive any amount, being a right to which section 56(2) . . . applies, in a case where—
- (a) if a profit had arisen from that exercise or disposal, that profit would have been chargeable to corporation tax by virtue of section 56(2) . . . , and
- (b) the company is chargeable to corporation tax under Part 5 of CTA 2009 (loan relationships) in respect of interest payable on that amount,
then the amount of that interest shall be included in the amounts against which the amount of its loss may be set off under section 91 of CTA 2010.
#### Dealings in commodity futures etc: withdrawal of loss relief
##### 399
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Write-off of government investment
##### 400
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for pre-trading expenditure
##### 401
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — GROUP RELIEF
#### Surrender of relief between members of groups and consortia
##### 402
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Losses etc. which may be surrendered by way of group relief
##### 403
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limitation of group relief in relation to certain dual resident companies
##### 404
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims relating to losses etc. of members of both group and consortium
##### 405
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims relating to losses etc. of consortium company or group member
##### 406
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relationship between group relief and other relief
##### 407
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Corresponding accounting periods
##### 408
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Companies joining or leaving group or consortium
##### 409
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements for transfer of company to another group or consortium
##### 410
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exclusion of double allowances
##### 411
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Claims and adjustments
##### 412
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter IV
##### 413
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XI — CLOSE COMPANIES
### CHAPTER I — INTERPRETATIVE PROVISIONS
#### Close companies
##### 414
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Certain quoted companies not to be close companies
##### 415
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “associated company” and “control”
##### 416
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “participator”, “associate”, “director” and “loan creditor”
##### 417
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Additional matters to be treated as distributions
#### “Distribution” to include certain expenses of close companies
##### 418
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — CHARGES TO TAX IN CONNECTION WITH LOANS
#### Loans to participators etc
##### 419
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from section 419
##### 420
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of borrower when loan under section 419 released etc
##### 421
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Extension of section 419 to loans by companies controlled by close companies
##### 422
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — APPORTIONMENT OF UNDISTRIBUTED INCOME ETC.
#### Apportionment of certain income, deductions and interest
##### 423
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exclusions from section 423
##### 424
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Manner of apportionment
##### 425
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to income tax where apportionment is to an individual
##### 426
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of charge under section 426 in certain cases
##### 427
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Increase of apportioned sum etc. by reference to ACT
##### 428
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payment and collection of income tax
##### 429
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Consequences of apportionment: ACT
##### 430
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XII — SPECIAL CLASSES OF COMPANIES AND BUSINESSES
### CHAPTER I — INSURANCE COMPANIES, UNDERWRITERS AND CAPITAL REDEMPTION BUSINESS
### Insurance companies: general
#### Interpretative provisions relating to insurance companies
##### 431
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Separation of different classes of business
##### 432
- (1) Where an insurance company carries on life assurance business in conjunction with insurance business of any other category, the life assurance business shall, for the purposes of the Corporation Tax Acts, be treated as a separate business from any other category of business carried on by the company.
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Profits reserved for policy holders and annuitants
##### 433
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Franked investment income etc
##### 434
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of gains reserved for policy holders and annuitants
##### 435
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annuity business and pension business: separate charge on profits
##### 436
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### General annuity business
##### 437
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Pension business: exemption from tax
##### 438
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restricted government securities
##### 439
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Identification or exchange of long term assets
##### 440
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign life assurance funds
##### 441
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Overseas business of U.K. companies
##### 442
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life policies carrying rights not in money
##### 443
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life policies issued before 5th August 1965
##### 444
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Provisions applying only to overseas life insurance companies
#### Charge to tax on investment income
##### 445
#### Annuity business
##### 446
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Set-off of income tax and tax credits against corporation tax
##### 447
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying distributions and tax credits
##### 448
#### Double taxation agreements
##### 449
### Underwriters
#### Assessment, set-off of losses and reinsurance
##### 450
#### Regulations
##### 451
#### Special reserve funds
##### 452
#### Payments into premiums trust fund on account of losses
##### 453
#### Income tax consequences on payments into and out of special reserve fund
##### 454
#### Income tax consequences on death of underwriter
##### 455
#### Unearned income, variation of arrangements and cancellation of approval etc
##### 456
#### Interpretation of sections 450 to 456
##### 457
### Capital redemption business
#### Capital redemption business
##### 458
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — FRIENDLY SOCIETIES, TRADE UNIONS AND EMPLOYERS’ ASSOCIATIONS
### Unregistered friendly societies
#### Exemption from tax
##### 459
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Registered friendly societies
#### Exemption from tax in respect of life or endowment business
##### 460
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation in respect of other business
##### 461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions for tax exempt business
##### 462
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life or endowment business: application of the Corporation Tax Acts
##### 463
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Maximum benefits payable to members
##### 464
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Old societies
##### 465
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter II
##### 466
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Trade unions and employers’ associations
#### Exemption for trade unions and employers' associations
##### 467
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — UNIT TRUST SCHEMES, DEALERS IN SECURITIES ETC.
### Unit trust schemes
#### Authorised unit trusts
##### 468
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other unit trusts
##### 469
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transitional provisions relating to unit trusts
##### 470
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Dealers in securities, banks and insurance businesses
#### Exchange of securities in connection with conversion operations, nationalisation etc
##### 471
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Distribution of securities issued in connection with nationalisation etc
##### 472
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conversion etc. of securities held as circulating capital
##### 473
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treatment of tax-free income
##### 474
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tax-free Treasury securities: exclusion of interest on borrowed money
##### 475
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — BUILDING SOCIETIES, BANKS, SAVINGS BANKS, INDUSTRIAL AND PROVIDENT SOCIETIES AND OTHERS
#### Building societies: regulations for payment of tax
##### 476
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Investments becoming or ceasing to be relevant building society investments
##### 477
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Building societies: time for payment of tax
##### 478
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest paid on deposits with banks etc
##### 479
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deposits becoming or ceasing to be composite rate deposits
##### 480
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### “Deposit-taker”, “deposit” and “relevant deposit”
##### 481
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions
##### 482
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Determination of reduced rate for building societies and composite rate for banks etc
##### 483
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) If the order made under section 26 of the Finance Act 1984 in the year 1987-88 is made in pursuance of subsection (4) of that section, that order shall, notwithstanding that that subsection is not re-enacted by this Act, apply for the purposes of sections 476 and 479 for the year 1988-89.
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Savings banks: exemption from tax
##### 484
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Savings banks: supplemental
##### 485
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Industrial and provident societies and co-operative associations
##### 486
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Credit unions
##### 487
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Co-operative housing associations
##### 488
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Self-build societies
##### 489
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Companies carrying on a mutual business or not carrying on a business
##### 490
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Distribution of assets of body corporate carrying on mutual business
##### 491
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V
#### Treatment of oil extraction activities etc. for tax purposes
##### 492
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Valuation of oil disposed of or appropriated in certain circumstances
##### 493
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charges on income
##### 494
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Regional development grants
##### 495
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Tariff receipts
##### 496
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction on setting ACT against income from oil extraction activities etc
##### 497
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limited right to carry back surrendered ACT
##### 498
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Surrender of ACT where oil extraction company etc. owned by a consortium
##### 499
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deduction of PRT in computing income for corporation tax purposes
##### 500
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on repayment of PRT
##### 501
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter V
##### 502
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VI — MISCELLANEOUS BUSINESSES AND BODIES
#### Letting of furnished holiday accommodation treated as a trade
##### 503
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions
##### 504
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charities: general
##### 505
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying expenditure and non-qualifying expenditure
##### 506
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The National Heritage Memorial Fund, the Historic Buildings and Monuments Commission for England and the British Museum
##### 507
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Scientific research organisations
##### 508
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reserves of marketing boards and certain other statutory bodies
##### 509
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Agricultural societies
##### 510
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The Electricity Council and Boards, the Northern Ireland Electricity Service and the Gas Council
##### 511
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Atomic Energy Authority and National Radiological Protection Board
##### 512
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### British Airways Board and National Freight Corporation
##### 513
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Funds for reducing the National Debt
##### 514
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Signatories to Operating Agreement for INMARSAT
##### 515
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Government securities held by non-resident central banks
##### 516
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Issue departments of the Reserve Bank of India and the State Bank of Pakistan
##### 517
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Harbour reorganisation schemes
##### 518
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Local authorities
##### 519
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XIII — MISCELLANEOUS SPECIAL PROVISIONS
### CHAPTER I — INTELLECTUAL PROPERTY
### Patents and know-how
#### Allowances for expenditure on purchase of patent rights: post-31st March 1986 expenditure
##### 520
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 520
##### 521
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowances for expenditure on purchase of patent rights: pre-1st April 1986 expenditure
##### 522
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lapses of patent rights, sales etc
##### 523
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of receipts from sale of patent rights
##### 524
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Capital sums: death, winding up or partnership change
##### 525
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for expenses
##### 526
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Spreading of royalties over several years
##### 527
- (1) Where—
- (a) a royalty or other sum is paid to a company in respect of the user of a patent,
- (b) the user extended over a period of six complete years or more, and
- (c) the payment is one from which a sum representing income tax must be deducted under section 903 of ITA 2007,
the company may on the making of a claim require that the corporation tax payable by it by reason of the receipt of that sum shall be reduced so as not to exceed the total amount of corporation tax which would have been payable by it if that royalty or sum had been paid in six equal instalments at yearly intervals, the last of which was paid on the date on which the payment was in fact made.
- (2) Subsection (1) above shall apply in relation to a royalty or other sum where the period of the user is two complete years or more but less than six complete years as it applies to the royalties and sums mentioned in that subsection, but with the substitution for the reference to six equal instalments of a reference to so many equal instalments as there are complete years comprised in that period.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Manner of making allowances and charges
##### 528
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Patent income to be earned income in certain cases
##### 529
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disposal of know-how
##### 530
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 530
##### 531
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of the 1968 Act
##### 532
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 520 to 532
##### 533
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Copyright and public lending right
#### Relief for copyright payments etc
##### 534
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief where copyright sold after ten years or more
##### 535
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Taxation of royalties where owner abroad
##### 536
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Public lending right
##### 537
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Artists’ receipts
#### Relief for painters, sculptors and other artists
##### 538
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — LIFE POLICIES, LIFE ANNUITIES AND CAPITAL REDEMPTION POLICIES
#### Introductory
##### 539
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life policies: chargeable events
##### 540
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life policies: computation of gain
##### 541
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life annuity contracts: chargeable events
##### 542
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Life annuity contracts: computation of gain
##### 543
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Second and subsequent assignment of life policies and contracts
##### 544
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Capital redemption policies
##### 545
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Calculation of certain amounts for purposes of sections 540, 542 and 545
##### 546
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Method of charging gain to tax
##### 547
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deemed surrender of certain loans
##### 548
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Certain deficiencies allowable as deductions
##### 549
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief where gain charged at a higher rate
##### 550
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Right of individual to recover tax from trustees
##### 551
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information: duty of insurers
##### 552
- (1) Where a chargeable event . . . has happened in relation to any policy or contract, the body by or with whom the policy or contract was issued, entered into or effected shall—
- (a) unless satisfied that no gain is to be treated as arising by reason of the event, deliver to the appropriate policy holder before the end of the relevant three month period a certificate specifying the information described in subsection (5) below; and
- (b) if the condition in paragraph (a) or (b) of subsection (2) below is satisfied, deliver to the inspector before the end of the relevant three month period a certificate specifying the information described in subsection (5) below together with the name and address of the appropriate policy holder.
- (2) For the purposes of this section—
- (a) the condition in this paragraph is that the event is an assignment for money or money’s worth of the whole of the rights conferred by the policy or contract; or
- (b) the condition in this paragraph is that the amount of the gain, or the aggregate amount of the gain and any gains connected with it, exceeds one half of the basic rate limit for the relevant year of assessment.
- (3) If, in the case of every certificate which a body delivers under subsection (1)(a) above which relates to a gain attributable to a year of assessment . . . , the body also delivers to the inspector—
- (a) before the end of the relevant three month period for the purposes of subsection (1)(b) above,
- (b) by a means prescribed by the Board for the purposes of this subsection under section 552ZA(5), and
- (c) in a form so prescribed in the case of that means,
a certificate specifying the same information as the certificate under subsection (1)(a) together with the name and address of the appropriate policy holder, the body shall be taken to have complied with the requirements of subsection (1)(b) above in relation to that year of assessment . . . so far as relating to the chargeable events to which the certificates relate.
- (4) Where a certificate is not required to be delivered under subsection (1)(b) above in the case of any chargeable event—
- (a) the inspector may by notice require the body to deliver to him a copy of any certificate that the body was required to deliver under subsection (1)(a) above which relates to the chargeable event; and
- (b) it shall be the duty of the body to deliver such a copy within 30 days of receipt of the notice.
- (5) The information to be given to the appropriate policy holder pursuant to subsection (1)(a) above or the inspector pursuant to subsection (1)(b) above is—
- (a) any unique identifying designation given to the policy or contract;
- (b) the nature of the chargeable event and—
- (i) the date on which it happened; and
- (ii) if it is a chargeable event by virtue of . . . section 514(1) of ITTOIA 2005 (chargeable events where transaction-related calculations show gains), the date on which the insurance year ends;
- (c) if the event is the assignment of all the rights conferred by the policy or contract, such of the following as may be required for computing the amount of the gain to be treated as arising by virtue of . . . Chapter 9 of Part 4 of ITTOIA 2005—
- (i) . . . the amount or value of any capital sums of a kind referred to in section 492(1)(b) to (e) of ITTOIA 2005;
- (ii) the amounts previously paid under the policy or contract by way of premiums or otherwise by way of consideration for an annuity;
- (iii) . . . the amount of so much of any payment previously made on account of an annuity as is exempt under section 717 of ITTOIA 2005;
- (iv) the value of any previously assigned parts of or shares in the rights conferred by the policy or contract;
- (v) . . . the total of the amounts of gains treated as arising on previous chargeable events within section 509(1) or 514(1) of ITTOIA 2005;
- (d) except where paragraph (c) above applies, the amount of the gain treated as arising by reason of the event;
- (e) the number of years relevant for computing the annual equivalent of the amount of the gain for the purposes of subsection (1) of section 536 of ITTOIA 2005 (top slicing relieved liability: one chargeable event), apart from subsections (6) and (8) of that section;
- (f) on the assumption that section 465 of ITTOIA 2005 (person liable: individuals) has effect in relation to the gain —
- (i) whether an individual would fall to be treated as having paid income tax at the basic rate on the amount of the gain in accordance with section 530 of that Act; and
- (ii) if so, except in a case where paragraph (c) above applies, the amount of such tax that would fall to be so treated as paid.
- (6) For the purposes of subsection (1)(a) above, the relevant three month period is whichever of the following periods ends the latest—
- (a) the period of three months following the happening of the chargeable event;
- (b) if the event is a surrender or assignment which is a chargeable event by virtue of . . . section 514(1) of ITTOIA 2005 . . . , the period of three months following the end of the insurance year in which the event happens;
- (c) if the event is a death or an assignment of the whole of the rights or a surrender or assignment which is a chargeable event by virtue of . . . section 514(1) of ITTOIA 2005 . . . , the period of three months beginning with receipt of written notification of the event.
- (7) For the purposes of subsection (1)(b) above, the relevant three month period is whichever of the following periods ends the latest—
- (a) the period of three months following the end of the year of assessment . . . in which the event happened;
- (b) if the event is a surrender or assignment which is a chargeable event by virtue of section 514(1) of ITTOIA 2005, the period of three months following the end of the insurance year in which the event happens;
- (c) if the event is a death or an assignment, the period of three months beginning with receipt of written notification of the event;
- (d) if a certificate under subsection (1)(b) above would not be required in respect of the event apart from the happening of another event, and that other event is one of those mentioned in paragraph (c) above, the period of three months beginning with receipt of written notification of that other event.
- (8) For the purposes of this section the cases where a gain is connected with another gain are those cases where—
- (a) both gains arise in connection with policies or contracts containing obligations which, immediately before the chargeable event, were obligations of the same body;
- (b) the policy holder of those policies or contracts is the same;
- (c) both gains are attributable to the same year of assessment . . . ;
- (d) the terms of the policies or contracts are the same, apart from any difference in their maturity dates; and
- (e) the policies or contracts were issued in respect of insurances made, or were entered into or effected, on the same date.
- (9) For the purposes of this section, the year of assessment . . . to which a gain is attributable is—
- (a) in the case of a gain treated as arising by virtue of subsection (1) of section 514 of ITTOIA 2005, the year of assessment which includes the end of the insurance year mentioned in subsection (3) and (4) of that section; or
- (b) in any other case, the year of assessment . . . in which happens the chargeable event by reason of which the gain is treated as arising.
- (10) In this section—
- “*amount*”, in relation to any gain, means the amount of the gain apart from . . . section 528 of ITTOIA 2005;
- “*appropriate policy holder*” means—in relation to an assignment of part of or a share in the rights conferred by a policy or contract, any person who is both—the policy holder, or one of the policy holders, immediately before the assignment; andthe assignor or one of the assignors; andin relation to any other chargeable event, the person who is the policy holder immediately before the happening of the event;
- “*chargeable event*” means an event which is a chargeable event within the meaning of . . . Chapter 9 of Part 4 of ITTOIA 2005;
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- “*insurance year*” has the same meaning as in Chapter 9 of Part 4 of ITTOIA 2005 (see section 499 of that Act);
- “*the relevant year of assessment*”, in the case of any gain, means—the year of assessment to which the gain is attributable, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (12) This section is supplemented by section 552ZA.
- (13) For the purposes of this section—
- (a) section 491(2) of ITTOIA 2005 is taken to have effect as if, in the definition of “PG”, the words from “but” to the end were omitted, and
- (b) no account is to be taken of the effect of section 465B or 541A of that Act.
- (14) For the purposes of this section no account is to be taken of the effect of sections 528 and 528A of ITTOIA 2005.
#### Non-resident policies and off-shore capital redemption policies
##### 553
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Borrowings on life policies to be treated as income in certain cases
##### 554
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — ENTERTAINERS AND SPORTSMEN
#### Payment of tax
##### 555
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Activity treated as trade etc. and attribution of income
##### 556
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge on profits or gains
##### 557
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions
##### 558
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — SUB-CONTRACTORS IN THE CONSTRUCTION INDUSTRY
#### Deductions on account of tax etc. from payments to certain sub-contractors
##### 559
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Persons who are sub-contractors or contractors for purposes of Chapter IV
##### 560
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from section 559
##### 561
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions to be satisfied by individuals
##### 562
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions to be satisfied by partners who are individuals
##### 563
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions to be satisfied by firms
##### 564
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Conditions to be satisfied by companies
##### 565
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### General powers to make regulations under Chapter IV
##### 566
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “construction operations”
##### 567
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — SCHEMES FOR RATIONALIZING INDUSTRY
#### Deductions from profits of contributions paid under certified schemes
##### 568
- (1) Notwithstanding anything contained in . . . section 33 of ITTOIA 2005or section 53 of CTA 2009 (no deduction for capital expenditure) but subject to the following provisions of this Chapter, where a person pays, wholly and exclusively for the purposes of a trade in respect of which he is chargeable under Part 2 of ITTOIA 2005 or Part 3 of CTA 2009, a contribution in furtherance of a scheme which is for the time being certified by the Secretary of State under this section, the contribution shall, in so far as it is paid in furtherance of the primary object of the scheme, be allowed to be deducted as an expense in computing the profits of that trade.
- (2) The Secretary of State shall certify a scheme under this section if he is satisfied—
- (a) that the primary object of the scheme is the elimination of redundant works or machinery or plant from use in an industry in the United Kingdom; and
- (b) that the scheme is in the national interest and in the interests of that industry as a whole; and
- (c) that such number of persons engaged in that industry as are substantially representative of the industry are liable to pay contributions in furtherance of the primary object of the scheme by agreement between them and the body of persons carrying out the scheme.
- (3) The Secretary of State shall cancel any certificate granted under this section if he ceases to be satisfied as to any of the matters referred to in subsection (2) above.
- (4) The Secretary of State may at any time require the body of persons carrying out a scheme certified under this section to produce any books or documents of whatever nature relating to the scheme and, if the requirement is not complied with, he may cancel the certificate.
- (5) In this section and in section 569 “*contribution*”, in relation to a scheme, does not include a sum paid by a person by way of loan or subscription of share capital, or in consideration of the transfer of assets to him, or by way of a penalty for contravening or failing to comply with the scheme.
#### Repayment of contributions
##### 569
- (1) In the event of the repayment, whether directly or by way of distribution of assets on a winding up or otherwise, of a contribution or any part of a contribution which has been allowed to be deducted under section 568, the deduction of the contribution, or so much of it as has been repaid, shall be deemed to be an unauthorised deduction in respect of which an assessment shall be made, and, notwithstanding the provisions of the Tax Acts requiring assessments to be made within six years after the end of the chargeable period to which they relate, any such assessment and any consequential assessment may be made at any time within three years after the end of the chargeable period in which the repayment was made.
- (2) For the purposes of this section, a sum received by any person by way of repayment of contributions shall be deemed to be by way of repayment of the last contribution paid by him, and, if the sum exceeds the amount of that contribution, by way of repayment of the penultimate contribution so paid, and so on.
#### Payments under certified schemes which are not repayments of contributions
##### 570
- (1) Subject to the provisions of this section, where, under any scheme which is for the time being certified or has at any time been certified by the Secretary of State under section 568, any payment (not being a payment made by way of repayment of contributions) is made to a person carrying on a trade to which the scheme relates, that payment shall be treated for the purposes of the Tax Acts as a trading receipt of the trade, and shall accordingly be taken into account in computing the profits of the trade for those purposes.
- (2) Where . . . the payments which have been made under such a scheme in respect of a trade (not being payments made by way of repayment of contributions) have been made wholly or partly in respect of damage in respect of which no relief may be given under the Tax Acts, and a claim is made to that effect, then, subject to and in accordance with the provisions of Schedule 21—
- (a) relief shall be given in respect of those payments by reducing the amounts which are to be treated as trading receipts of the trade under subsection (1) above; but
- (b) where such relief is given, section 568 shall, in relation to contributions subsequently paid under the scheme in respect of the trade, have effect subject to the modifications specified in Part III of that Schedule,
and paragraph 6 of that Schedule applies for the purposes of this subsection as it applies for the purposes of that Schedule.
- (3) The provisions of this section and Schedule 21 shall apply in relation to any payment made to a person who has ceased to carry on a trade to which any such scheme as is mentioned in subsection (1) above relates as they apply in relation to payments made to a person carrying on such a trade, subject to the modification that so much of that payment as falls to be treated as a trading receipt by virtue of those provisions shall be deemed for the purposes of those provisions to have been made to him on the last day on which he was engaged in carrying on the trade.
- (4) In determining for the purposes of this section and of Schedule 21—
- (a) whether any trade has ceased to be carried on; or
- (b) whether any contribution is paid in respect of a trade in respect of which a payment has been made; or
- (c) whether any payment is made in respect of a trade in respect of which a contribution has been paid,
no regard shall be had to any event which, by virtue of section 18 of ITTOIA 2005 or section 41 of CTA 2009 (company starting or ceasing to be within charge to corporation tax) is to be treated as effecting a cessation of trading.
#### Cancellation of certificates
##### 571
- (1) Where any certificate granted with respect to a scheme under section 568 is cancelled by the Secretary of State, and any deductible contributions paid in furtherance of the scheme have not been repaid at the expiration of one year from the cancellation, the body of persons carrying out the scheme shall, for the chargeable period in which that year expires, be charged to tax . . . upon the aggregate amount of the deductible contributions which have not been repaid at that time.
- (1A) An amount charged to income tax under subsection (1) above is treated for income tax purposes as an amount of income.
- (1B) So far as relating to corporation tax, the charge to tax under subsection (1) has effect as an application of the charge to corporation tax on income.
- (2) The charge to tax under subsection (1) above shall not be made if the total amount of any contributions, other than deductible contributions, which have been paid under the scheme and have not been repaid before that time is greater than the available resources of the scheme, and shall not in any case be made upon an amount greater than the excess, if any, of those resources over that total amount.
- (3) In subsection (2) above “*the available resources*”, in relation to any scheme, means a sum representing the total funds held for the purposes of the scheme at the expiration of one year from the cancellation of the certificate plus a sum representing any funds held for the purposes of the scheme which, during that year, have been applied otherwise than in accordance with the provisions of the scheme as in force when the certificate was granted.
- (4) Where the body of persons carrying out a scheme are charged to tax by virtue of subsection (1) above, and, after the expiration of one year from the cancellation of the certificate, any deductible contribution paid in furtherance of the scheme is repaid, the amount upon which the charge is made shall on the making of a claim be reduced by the amount repaid, and all such repayments of tax shall be made as are necessary to give effect to the provisions of this subsection.
- (5) In this section “*contribution*” includes a part of a contribution, and “*deductible contribution*” means a contribution allowed to be deducted under section 568, any reduction under Part III of Schedule 21 being left out of account.
- (6) For the purposes of this section, a sum received by any person by way of repayment of contributions shall be deemed to be by way of repayment of the last contribution paid by him, and, if the sum exceeds the amount of that contribution, by way of repayment of the penultimate contribution so paid, and so on.
#### Application to statutory redundancy schemes
##### 572
- (1) Sections 569 to 571 and Schedule 21 shall, subject to the adaptations specified in subsection (2) below, apply in relation to a statutory redundancy scheme as they apply in relation to a scheme certified under section 568.
- (2) The adaptations referred to above are as follows, that is to say—
- (a) for any reference to a contribution allowed to be deducted under section 568 there shall be substituted a reference to a contribution allowed to be deducted under any provision of the Tax Acts other than that section;
- (b) any provision that section 568 shall, in relation to contributions, have effect subject to modifications, shall be construed as a provision that so much of any provision of the Tax Acts other than that section as authorises the deduction of contributions shall, in relation to the contributions in question, have effect subject to the modifications in question;
- (c) for any reference to the cancellation of a certificate with respect to a scheme there shall be substituted a reference to the scheme ceasing to have effect; and
- (d) for any reference to the provisions of the scheme as in force when the certificate was granted there shall be substituted a reference to the provisions of the scheme as in force when the contributions were first paid thereunder.
- (3) In this section “*statutory redundancy scheme*” means a scheme for the elimination or reduction of redundant works, machinery or plant, or for other similar purposes, to which effect is given by or under any Act, whether passed before or after this Act.
### CHAPTER VI — OTHER PROVISIONS
### Relief for losses on unquoted shares in trading companies
#### Relief for companies
##### 573
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for individuals
##### 574
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exclusion of relief under section 573 or 574 in certain cases
##### 575
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 573 to 575
##### 576
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous
#### Business entertaining expenses
##### 577
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Housing grants
##### 578
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Statutory redundancy payments
##### 579
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to section 579
##### 580
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Borrowing in foreign currency by local authorities and statutory corporations
##### 581
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Funding bonds issued in respect of interest on certain debts
##### 582
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Inter-American Development Bank
##### 583
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for unremittable overseas income
##### 584
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief from tax on delayed remittances
##### 585
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disallowance of deductions for war risk premiums
##### 586
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disallowance of certain payments in respect of war injuries to employees
##### 587
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Training courses for employees
##### 588
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying courses of training etc
##### 589
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XIV — PENSION SCHEMES, SOCIAL SECURITY BENEFITS, LIFE ANNUITIES ETC.
### CHAPTER I — RETIREMENT BENEFIT SCHEMES
### Approval of schemes
#### Conditions for approval of retirement benefit schemes
##### 590
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Discretionary approval
##### 591
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Tax reliefs
#### Exempt approved schemes
##### 592
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief by way of deductions from contributions
##### 593
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exempt statutory schemes
##### 594
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Charge to tax in certain cases
#### Charge to tax in respect of certain sums paid by employer etc
##### 595
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from section 595
##### 596
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: pensions
##### 597
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: repayment of employee’s contributions
##### 598
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: commutation of entire pension in special circumstances
##### 599
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: unauthorised payments to or for employees
##### 600
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Charge to tax: payments to employers
##### 601
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Regulations relating to pension fund surpluses
##### 602
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of surpluses
##### 603
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplementary provisions
#### Application for approval of a scheme
##### 604
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information
##### 605
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Responsibilities of administrator of scheme, and employer
##### 606
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Pilots' benefit fund
##### 607
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Superannuation funds approved before 6th April 1980
##### 608
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schemes approved before 23rd July 1987
##### 609
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Amendments of schemes
##### 610
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Definition of “retirement benefits scheme”
##### 611
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other interpretative provisions, and regulations for purposes of this Chapter
##### 612
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — OTHER PENSION FUNDS AND SOCIAL SECURITY BENEFITS AND CONTRIBUTIONS
#### Parliamentary pension funds
##### 613
- (1) The salary of a Member of the House of Commons shall, for all the purposes of the Income Tax Acts, be treated as reduced by the amounts deducted in pursuance of section 1 of the House of Commons Members’ Fund Act 1939; but a Member shall not by reason of any such deduction be entitled to relief under any other provision of the Income Tax Acts.
- (2) In subsection (1) above the reference to salary shall be construed as mentioned in subsection (3) of section 1 of the House of Commons Members’ Fund Act 1939, the reference to amounts deducted includes a reference to amounts required to be set aside under that subsection, and “deduction” shall be construed accordingly.
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) The . . . trustees of—
- (a) the House of Commons Members’ Fund established under section 1 of that Act of 1939;
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (bb) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shall be entitled to exemption from income tax in respect of all income derived from that Fund or any investment of that Fund.
#### Exemptions and reliefs in respect of income from investments etc. of certain pension schemes
##### 614
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) Any interest or dividends received by the person in whom is vested any of the Family Pension Funds mentioned in section 273 of the Government of India Act 1935, and having effect as a scheme made under section 2 of the Overseas Pensions Act 1973, on sums forming part of that fund shall be exempt from income tax.
- (2A) The reference in subsection (2) above to interest on sums forming part of a fund include references to any amount which is treated as income by virtue of Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) and derives from any investment forming part of that fund.
- (3) Income derived from investments or deposits of any fund referred to in section 648, 649, 650 or 651 of ITEPA 2003 shall not be charged to income tax, and any income tax deducted from any such income shall be repaid by the Board to the persons entitled to receive the income.
- (4) In respect of income derived from investments or deposits of the Overseas Service Pensions Fund established pursuant to section 7(1) of the Overseas Aid Act 1966, the Board shall give by way of repayment such relief from income tax as is necessary to secure that the income is exempt to the like extent (if any) as if it were income of a person not domiciled and not resident in the United Kingdom.
- (5) In respect of dividends and other income derived from investments, deposits or other property of a superannuation fund to which section 615(3) applies the Board shall give by way of repayment such relief from income tax as is necessary to secure that the income is exempt to the like extent (if any) as if it were income of a person not domiciled and not resident in the United Kingdom.
- (6) A claim under this section shall be made to the Board.
#### Exemption from tax in respect of certain pensions
##### 615
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) Where an annuity is paid from a superannuation fund to which this subsection applies to a person who is not resident in the United Kingdom, income tax shall not be deducted from any payment of the annuity or accounted for under Chapter 6 of Part 15 of ITA 2007 (deduction from annual payments and patent royalties) by the trustees or other persons having the control of the fund.
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) Subsection (3) above applies to any superannuation fund which—
- (a) is bona fide established under irrevocable trusts in connection with some trade or undertaking carried on wholly or partly outside the United Kingdom;
- (b) has for its sole purpose (subject to any enactment or Northern Ireland legislation requiring or allowing provision for the value of any rights to be transferred between schemes or between members of the same scheme) the provision of superannuation benefits in respect of persons’ employment in the trade or undertaking wholly outside the United Kingdom; and
- (c) is recognised by the employer and employed persons in the trade or undertaking;
and for the purposes of this subsection duties performed in the United Kingdom the performance of which is merely incidental to the performance of other duties outside the United Kingdom shall be treated as performed outside the United Kingdom.
- (7) In this section—
- “*pension*” includes a gratuity or any sum payable on or in respect of death or, in the case of a pension falling within subsection (2)(g) above, ill-health, and a return of contributions with or without interest thereon or any other addition thereto;
- “*overseas territory*” means any territory or country outside the United Kingdom;
- “*the Pensions (Increase) Acts*” means the Pensions (Increase) Act 1971 and any Act passed after that Act for purposes corresponding to the purposes of that Act;
- “*United Kingdom trust territory*” means a territory administered by the government of the United Kingdom under the trusteeship system of the United Nations.
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) For the purposes of this section, a person shall be taken to be employed in the public service of an overseas territory at any time when—
- (a) he is employed in any capacity under the government of that territory, or under any municipal or other local authority in it,
- (b) he is employed, in circumstances not falling within paragraph (a) above, by a body corporate established for any public purpose in that territory by an enactment of a legislature empowered to make laws for that territory, or
- (c) he is the holder of a public office in that territory in circumstances not falling within either paragraph (a) or (b).
- (10) For the purposes of subsection (9), references to the government of an overseas territory include references to a government constituted for two or more overseas territories, and to any authority established for the purpose of providing or administering services which are common to, or relate to matters of common interest to, two or more such territories.
#### Other overseas pensions
##### 616
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Social security benefits and contributions
##### 617
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — RETIREMENT ANNUITIES
#### Termination of relief under this Chapter, and transitional provisions
##### 618
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exemption from tax in respect of qualifying premiums
##### 619
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying premiums
##### 620
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other approved contracts
##### 621
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Substituted retirement annuity contracts
##### 622
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relevant earnings
##### 623
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sponsored superannuation schemes and controlling directors
##### 624
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward of unused relief under section 619
##### 625
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Modification of section 619 in relation to persons over 50
##### 626
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lloyd’s underwriters
##### 627
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Partnership retirement annuities
##### 628
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annuity premiums of Ministers and other officers
##### 629
- (1) For the purposes of this Chapter so much of any salary which—
- (a) is payable to the holder of a qualifying office who is also a Member of the House of Commons, and
- (b) is payable for a period in respect of which the holder is not a participant in relation to that office in arrangements contained in the Parliamentary pension scheme but is a participant in relation to his membership of the House of Commons in any such arrangements, or for any part of such a period,
as is equal to the difference between a Member’s pensionable salary and the salary which (in accordance with any such resolution as is mentioned in subsection (3)(a) below) is payable to him as a Member holding that qualifying office shall be treated as remuneration from the office of Member and not from the qualifying office.
- (2) In this section—
- “*Member’s pensionable salary*” means a Member’s ordinary salary under any resolution of the House of Commons which, being framed otherwise than as an expression of opinion, is for the time being in force relating to the remuneration of Members or, if the resolution provides for a Member’s ordinary salary thereunder to be treated for pension purposes as being at a higher rate, a notional yearly salary at that higher rate;
- “*qualifying office*” means an office mentioned in section 2(2)(b), (c) or (d) of the Parliamentary and other Pensions Act 1987;
- “*the Parliamentary pension scheme*” has the same meaning as in that Act;
and without prejudice to the power conferred by virtue of paragraph 13 of Schedule 1 to that Act, regulations under section 2 of that Act may make provision specifying the circumstances in which a person is to be regarded for the purposes of this section as being or not being a participant in relation to his Membership of the House of Commons, or in relation to any office, in arrangements contained in the Parliamentary pension scheme.
- (3) In subsection (2) above “*a Member’s ordinary salary*”, in relation to any resolution of the House of Commons, means—
- (a) if the resolution provides for salary to be paid to Members at different rates according to whether or not they are holders of particular offices, or are in receipt of salaries or pensions as the holders or former holders of particular offices, a Member’s yearly salary at the higher or highest rate; and
- (b) in any other case, a Member’s yearly salary at the rate specified in or determined under the resolution.
### CHAPTER IV — PERSONAL PENSION SCHEMES
### Preliminary
#### Interpretation
##### 630
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Approval of schemes
##### 631
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Restrictions on approval
#### Establishment of schemes
##### 632
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Scope of benefits
##### 633
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annuity to member
##### 634
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lump sum to member
##### 635
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Annuity after death of member
##### 636
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lump sum on death of member
##### 637
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Other restrictions on approval
##### 638
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Tax reliefs
#### Member’s contributions
##### 639
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Maximum amount of deductions
##### 640
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-back of contributions
##### 641
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Carry-forward of relief
##### 642
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employer’s contributions and personal pension income etc
##### 643
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “relevant earnings”
##### 644
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Earnings from pensionable employment
##### 645
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “net relevant earnings”
##### 646
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Charge to tax
#### Unauthorised payments
##### 647
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Contributions under unapproved arrangements
##### 648
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous
#### Minimum contributions under Social Security Act 1986
##### 649
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Withdrawal of approval
##### 650
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Appeals
##### 651
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information about payments
##### 652
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information: penalties
##### 653
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Remuneration of Ministers and other officers
##### 654
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transitional provisions
##### 655
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — PURCHASED LIFE ANNUITIES
#### Purchased life annuities other than retirement annuities
##### 656
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Purchased life annuities to which section 656 applies
##### 657
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary
##### 658
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VI — MISCELLANEOUS
#### Financial futures and traded options
##### 659
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XV — SETTLEMENTS
### CHAPTER I — DISPOSITIONS FOR SHORT PERIODS
#### Dispositions for period which cannot exceed six years
##### 660
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustments between disponor and trustees
##### 661
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of Chapter I to dispositions by two or more disponors
##### 662
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — SETTLEMENTS ON CHILDREN
#### The general rule
##### 663
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accumulation settlements
##### 664
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “irrevocable”
##### 665
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest paid by trustees
##### 666
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustments between disponor and trustees
##### 667
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of Chapter II to settlements by two or more settlors
##### 668
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information under Chapter II
##### 669
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter II
##### 670
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — REVOCABLE SETTLEMENTS ETC.
#### Revocable settlements allowing release of obligation
##### 671
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Revocable settlements allowing reversion of property
##### 672
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Settlements where settlor retains an interest
##### 673
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Settlements: discretionary power for benefit of settlor etc
##### 674
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 671 to 674
##### 675
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disallowance of deduction from total income of certain sums paid by settlor
##### 676
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sums paid to settlor otherwise than as income
##### 677
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Capital sums paid by body connected with settlement
##### 678
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of Chapter III to settlements by two or more settlors
##### 679
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information for purposes of Chapter III
##### 680
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of Chapter III
##### 681
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Ascertainment of undistributed income
##### 682
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — LIABILITY TO HIGHER RATE AND ADDITIONAL RATE TAX
### Liability of settlors
#### Settlements made after 6th April 1965
##### 683
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Settlements made before 7th April 1965 but after 9th April 1946
##### 684
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 683 and 684
##### 685
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Liability of trustees
#### Liability to additional rate tax of certain income of discretionary trusts
##### 686
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Payments under discretionary trusts
##### 687
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Schemes for employees and directors to acquire shares
##### 688
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery from trustees of discretionary trusts of higher rate tax due from beneficiaries
##### 689
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — MAINTENANCE FUNDS FOR HISTORIC BUILDINGS
#### Schedule 4 directions
##### 690
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Certain income not to be income of settlor etc
##### 691
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reimbursement of settlor
##### 692
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Severance of settled property for certain purposes
##### 693
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Trustees chargeable to income tax at 30 per cent. in certain cases
##### 694
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XVI — ESTATES OF DECEASED PERSONS IN COURSE OF ADMINISTRATION
#### Limited interests in residue
##### 695
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Absolute interests in residue
##### 696
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplementary provisions as to absolute interests in residue
##### 697
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Special provisions as to certain interests in residue
##### 698
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief from higher rate tax for inheritance tax on accrued income
##### 699
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustments and information
##### 700
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation
##### 701
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application to Scotland
##### 702
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XVII — TAX AVOIDANCE
### CHAPTER I — CANCELLATION OF CORPORATION TAX ADVANTAGES FROM CERTAIN TRANSACTIONS IN SECURITIES
#### Cancellation of tax advantage
##### 703
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The prescribed circumstances
##### 704
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Appeals against Board’s notices under section 703
##### 705
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The tribunal
##### 706
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Procedure for clearance in advance
##### 707
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information
##### 708
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “tax advantage” and other expressions
##### 709
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — TRANSFERS OF SECURITIES
### Transfers with or without accrued interest: introductory
#### Meaning of “securities”, “transfer” etc. for purposes of sections 711 to 728
##### 710
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “interest”, “transfers with or without accrued interest” etc
##### 711
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “settlement day” for purposes of sections 711 to 728
##### 712
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Transfers with or without accrued interest: charge to tax and reliefs
#### Deemed sums and reliefs
##### 713
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Treatment of deemed sums and reliefs
##### 714
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exceptions from sections 713 and 714
##### 715
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfer of unrealised interest
##### 716
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Variable interest rate
##### 717
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest in default
##### 718
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Unrealised interest in default
##### 719
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Transfers with or without accrued interest: supplemental
#### Nominees, trustees etc
##### 720
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Death
##### 721
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Trading stock
##### 722
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign securities: delayed remittances
##### 723
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Insurance companies
##### 724
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Lloyd’s underwriters
##### 725
#### Building societies
##### 726
#### Stock lending
##### 727
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information
##### 728
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Other transfers of securities
#### Sale and repurchase of securities
##### 729
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transfers of income arising from securities
##### 730
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Purchase and sale of securities
#### Application and interpretation of sections 732 to 734
##### 731
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dealers in securities
##### 732
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Persons entitled to exemptions
##### 733
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Persons other than dealers in securities
##### 734
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “appropriate amount in respect of” interest
##### 735
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous provisions relating to securities
#### Company dealing in securities: distribution materially reducing value of holding
##### 736
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Manufactured dividends: treatment of tax deducted
##### 737
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Supplemental
#### Power to amend sections 732, 735 and 737
##### 738
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — TRANSFER OF ASSETS ABROAD
#### Prevention of avoidance of income tax
##### 739
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Liability of non-transferors
##### 740
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Exemption from sections 739 and 740
##### 741
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 739 to 741
##### 742
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplemental provisions
##### 743
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### No duplication of charge
##### 744
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information
##### 745
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Persons resident in the Republic of Ireland
##### 746
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER IV — CONTROLLED FOREIGN COMPANIES
#### Imputation of chargeable profits and creditable tax of controlled foreign companies
##### 747
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limitations on direction-making power
##### 748
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Residence and interest
##### 749
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Territories with a lower level of taxation
##### 750
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Accounting periods and creditable tax
##### 751
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of chargeable profits and creditable tax
##### 752
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Notices and appeals
##### 753
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assessment, recovery and postponement of tax
##### 754
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information relating to controlled foreign companies
##### 755
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation and construction of Chapter IV
##### 756
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER V — OFFSHORE FUNDS
### Material interests in non-qualifying offshore funds
#### Disposal of material interests in non-qualifying offshore funds
##### 757
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Offshore funds operating equalisation arrangements
##### 758
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Material interests in offshore funds
##### 759
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Non-qualifying offshore funds
##### 760
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Charge to tax of offshore income gains
#### Charge to income tax or corporation tax of offshore income gain
##### 761
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Offshore income gains accruing to persons resident or domiciled abroad
##### 762
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deduction of offshore income gain in determining capital gain
##### 763
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Offshore income gains of trustees
##### 764
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER VI — MISCELLANEOUS
### Migration etc. of company
#### Migration etc.of companies
##### 765
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Offences under section 765
##### 766
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation and commencement of sections 765 and 766
##### 767
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Change in ownership of company
#### Change in ownership of company: disallowance of trading losses
##### 768
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Rules for ascertaining change in ownership of company
##### 769
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Transactions between associated persons
#### Sales etc. at an undervalue or overvalue
##### 770
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions by petroleum companies
##### 771
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Information for purposes of section 770, and appeals
##### 772
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of sections 770 and 771
##### 773
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions between dealing company and associated company
##### 774
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Other provisions
#### Sale by individual of income derived from his personal activities
##### 775
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions in land: taxation of capital gains
##### 776
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Provisions supplementary to sections 775 and 776
##### 777
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to obtain information
##### 778
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sale and lease-back: limitation on tax reliefs
##### 779
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Sale and lease-back: taxation of consideration received
##### 780
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assets leased to traders and others
##### 781
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leased assets: special cases
##### 782
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leased assets: supplemental
##### 783
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Leased assets subject to hire-purchase agreements
##### 784
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Meaning of “asset”, “capital sum” and “lease” for purposes of sections 781 to 784
##### 785
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Transactions associated with loans or credit
##### 786
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction of relief for payments of interest
##### 787
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XVIII — DOUBLE TAXATION RELIEF
### CHAPTER I — THE PRINCIPAL RELIEFS
#### Relief by agreement with other countries
##### 788
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements made under old law
##### 789
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Unilateral relief
##### 790
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to make regulations for carrying out section 788
##### 791
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER II — RULES GOVERNING RELIEF BY WAY OF CREDIT
### General
#### Interpretation of credit code
##### 792
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction of United Kingdom taxes by amount of credit due
##### 793
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Requirement as to residence
##### 794
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Computation of income subject to foreign tax
##### 795
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limits on credit: income tax
##### 796
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Limits on credit: corporation tax
##### 797
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on certain overseas loans
##### 798
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Tax underlying dividends
#### Computation of underlying tax
##### 799
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dividends paid between related companies but not covered by arrangements
##### 800
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dividends paid between related companies: relief for U.K. and third country taxes
##### 801
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### U.K. insurance companies trading overseas
##### 802
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Underlying tax reflecting interest on loans
##### 803
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Miscellaneous rules
#### Relief against income tax in respect of income arising in years of commencement
##### 804
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Elections against credit
##### 805
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Time limit for claims etc
##### 806
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### CHAPTER III — MISCELLANEOUS PROVISIONS
#### Sale of securities with or without accrued interest
##### 807
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction on deduction of interest or dividends from trading income
##### 808
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief in respect of discretionary trusts
##### 809
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Postponement of capital allowances to secure double taxation relief
##### 810
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Deduction for foreign tax where no credit allowable
##### 811
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states
##### 812
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Recovery of tax credits incorrectly paid
##### 813
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements to avoid section 812
##### 814
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Power to inspect documents
##### 815
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disclosure of information
##### 816
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## PART XIX — SUPPLEMENTAL
### Miscellaneous
#### Deductions not to be allowed in computing profits or gains
##### 817
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Arrangements for payments of interest less tax or of fixed net amount
##### 818
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Old references to standard rate tax
##### 819
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Application of Income Tax Acts from year to year
##### 820
- In order to ensure the collection in due time of income tax which may be granted for any year commencing on 6th April, all such provisions contained in the Income Tax Acts as were in force on the preceding day shall have full force and effect with respect to tax which may be so granted, in the same manner as if that tax had been actually granted by Act of Parliament and those provisions had been applied thereto by the Act.
#### Under-deductions from payments made before passing of annual Act
##### 821
- (1) Where, in any year of assessment or accounting period, any half-yearly or quarterly payments (or half-periodic or quarterly payments) have been made on account of any interest, dividends or other annual profits or gains, previously to the passing of the Act imposing income or corporation tax for that year or period, and tax has not been charged thereon or deducted therefrom or has not been charged thereon or deducted therefrom at the rate ultimately imposed for that year or period—
- (a) the amount not so charged or deducted shall be charged in respect of those payments to income tax under Chapter 2 of Part 4 of ITTOIA 2005 (interest) or shall be charged to corporation tax. . . . . . ; and
- (b) the agents entrusted with the payment of the interest, dividends or other annual profits or gains shall furnish to the Board a list containing the names and addresses of the persons to whom payments have been made and the amount of those payments, upon a requisition made by the Board in that behalf.
- (2) Any person liable to pay any rent, interest or annuity, or to make any other annual payment—
- (a) shall be authorised—
- (i) to make any deduction on account of income tax for any year of assessment which he has failed to make previously to the passing of the Act imposing the tax for that year, or
- (ii) to make up any deficiency in any such deduction which has been so made,
on the occasion of the next payment of the rent, interest or annuity or making of the other annual payment after the passing of the Act so imposing the tax, in addition to any other deduction which he may be by law authorised to make; and
- (b) shall also be entitled, if there is no future payment from which the deduction may be made, to recover the sum which might have been deducted as if it were a debt due from the person as against whom the deduction could originally have been made if the Act imposing the tax for the year had been in force.
- (3) Subsection (2) above shall apply with respect to—
- (a) any payment to which section 906 of ITA 2007 applies (certain royalties etc where usual place of abode of owner is abroad), and
- (aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (b) any royalty or other sum paid in respect of the user of a patent; . . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
as it applies with respect to any rent, interest, annuity or other annual payment.
- (4) In this section “*interest*” and “*dividends*” do not include any interest or dividend which is a distribution.
#### Over-deductions from interest on loan capital etc. made before passing of annual Act
##### 822
- (1) If in any year of assessment (“*the year*”) a resolution having statutory effect under the Provisional Collection of Taxes Act 1968 provides for the charging of income tax at a lower rate less than that charged for the previous year, the following provisions of this section shall have effect with respect to deductions in respect of income tax by any body corporate, from payments of interest (not being a distribution) on any of its securities.
- (2) Any deduction which was made before the expiration of one month from the passing of the resolution and which would, if the tax had been renewed at the rate imposed for the previous year, have been a legal deduction, shall be deemed to be a deduction rendered legal by section 2 of the Provisional Collection of Taxes Act 1968 and that section shall, subject to this section, apply accordingly.
- (3) Any over-deduction to be made good under that section may be made good by a reduction of the amount of tax deducted from the next payment of like nature made on the security in question after the passing of the Act imposing the tax for the year.
- (4) Any amount made good under section 2 of the Provisional Collection of Taxes Act 1968 shall—
- (a) in the case of an over-deduction which is made good under subsection (3) above, enure to the benefit of the person entitled to the payment on the occasion of which the over-deduction is made good; and
- (b) in any other case, enure to the benefit of the person entitled to the security in question at the date when the amount is made good,
irrespective, in either case, of whether or not he is the person who was entitled to the payment, or to the security at the date when the original deduction was made.
- (5) Subsection (3) above shall not authorise the retention of any part of the amount over-deducted for more than one year from the passing of the Act imposing the tax for the year.
#### Adjustments of reliefs where given at different times
##### 823
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: individuals and others
##### 824
- (1) Subject to the following provisions of this section, a repayment made by the Board or an officer of the Board of any of the following, namely—
- (a) an amount paid on account of income tax under section 59A of the Management Act;
- (b) any income tax paid by or on behalf of an individual for a year of assessment;
- (c) a penalty payable under any paragraph of Schedule 56 to the Finance Act 2009 in respect of an amount falling within any of the following items of the Table in paragraph 1 of that Schedule—
- (i) item 1, 12, 18 or 19; or
- (ii) insofar as the tax falls within item 1, item 17, 23 or 24; and
- (d) a penalty incurred by an individual under any of the provisions of that Act,
shall be increased under this section by an amount (a “*repayment supplement*”) equal to interest on the amount repaid at the rate applicable under section 178 of the Finance Act 1989 for the period (if any) between the relevant time and the date on which the order for the repayment is issued.
- (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.
- (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.
- (2B) Subsection (1) above shall apply to a payment made by the Board under section 375(8) (payment of amount which borrower would have been able to deduct from interest payment under section 369(1)) as if the payment were a repayment falling within that subsection.
- (2C) Subsection (1) above shall apply to a repayment made by the Board as a result of a claim for relief under—
- (a) paragraph 2 of Schedule 1B to the Management Act (carry back of loss relief),
- (b) paragraph 3 of that Schedule (relief for fluctuating profits of farming etc.), or
- (c) Schedule 4A to this Act (relief for fluctuating profits of creative artists etc.),
as if it were a repayment falling within that subsection.
- (2D) Subsection (1) shall apply—
- (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (b) to a payment made under paragraph 6(1) of Schedule 14 (payment where entitlement to life assurance premium relief has not been given by deduction) as if the payment were a repayment of income tax paid for the tax year in which the entitlement to relief arose.
- (3) For the purposes of subsection (1) above—
- (aa) if the repayment is a payment made by the Board under section 375(8), the relevant time is—
- (i) if the interest payment was made in the year 1996-97 or a subsequent year of assessment, the 31st January next following that year;
- (ii) if the interest payment was made in an earlier year of assessment, the 5th April next following that year;
- (ab) if the repayment is a repayment as a result of a claim for relief under any of the provisions mentioned in subsection (2C) above, the relevant time is the 31st January next following the year that is the later year in relation to the claim;
- (ac) if the repayment is a repayment as a result of a claim under section 496B of ITA 2007 (relief for payments by discretionary trust taxable as employment income), the relevant time is the 31 January next following the end of the tax year to which the claim relates;
- (ad) if the repayment is a payment falling within subsection (2D)(b), the relevant time is 31 January next following the end of the tax year in which the entitlement to relief arose;
- (a) if the repayment is—
- (i) the repayment of an amount paid in accordance with the requirements of section 59A of the Management Act on account of income tax for a year of assessment, or
- (ii) the repayment of income tax for such a year which is not income tax deducted at source (other than a repayment within paragraph (ac)),
the relevant time is the date of the payment that is being repaid;
- (b) if the repayment is of income tax deducted at source for a year of assessment, the relevant time is the 31st January next following that year; and
- (c) if the repayment is of a penalty or surcharge, the relevant time is the date on which the penalty or surcharge was paid.
- (4) For the purposes of subsection (3) above, where a repayment in respect of income tax for a year of assessment is made to any person, that repayment—
- (a) shall be attributed first to so much of any payment made by him under section 59B of the Management Act as is a payment in respect of income tax for that year;
- (b) in so far as it exceeds the amount (if any) to which it is attributable under paragraph (a) above, shall be attributed in two equal parts to each of the payments made by him under section 59A of the Management Act on account of income tax for that year;
- (c) in so far as it exceeds the amounts (if any) to which it is attributable under paragraphs (a) and (b) above, shall be attributed to income tax deducted at source for that year; and
- (d) in so far as it is attributable to a payment made in instalments shall be attributed to a later instalment before being attributed to an earlier one.
- (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,
but does not include a reference to amounts which, in that year, are deducted at source under PAYE regulations in respect of previous years.
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . The Treasury may by order from time to time increase or decrease the rate of interestby reference to which—
- (a) repayment supplements are calculated under subsection (1) above; and
- (b) repayment supplements are calculated under section 47 of the Finance (No. 2) Act 1975.
- (7) A repayment supplement shall not be payable under this section in respect of a repayment or payment made in consequence of an order or judgment of a court having power to allow interest on the repayment or payment, or in respect of a repayment of a post-war credit within the meaning of the Income Tax (Repayment of Post-War Credits) Act 1959.
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) Subsections (1) to (7) above shall apply in relation to . . . the trustees of a settlement, scheme administrators of registered pension schemes sub-scheme administrators of sub-schemes which form part of a split scheme pursuant to the Registered Pensions (Splitting of Schemes) Regulations 2006or personal representatives . . . as they apply in relation to an individual.
- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Repayment supplements: companies
##### 825
- (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.
- (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).
- (3) For the purposes of subsection (2) above—
- (a) if the payment is a repayment of corporation tax that was paid on or after the first anniversary of the material date, the relevant date is the anniversary of the material date that occurs next after the date on which that tax was paid;
- (b) in any other case, the relevant date is the first anniversary of the material date;
and where a payment to which this section applies is a repayment of corporation tax paid by a company on different dates, the payment shall as far as possible be treated for the purposes of this subsection as a repayment of tax paid on a later rather than an earlier date among those dates.
- (4) For the purposes of this section—
- (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
- (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*”)—
- (i) shall, in a case where the earlier period falls wholly within the period of twelve months immediately preceding the accounting period in which the loss was incurred, be treated as a repayment of tax paid for the earlier period; and
- (ii) in any other case, shall be treated as a repayment of tax paid for the accounting period in which the loss is incurred; and
- (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.
- (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.
- (7) A repayment supplement paid under this section shall be disregarded for all purposes of income tax and corporation tax.
- (8) In this section—
- “*tax month*” means the period beginning with the 6th day of any calendar month and ending with the 5th day of the following calendar month;
- “*the material date*” in relation to a payment to which this section applies, means the last date on which corporation tax on any of the profits of the company in question arising in the relevant accounting period could have been paid—in a case where section 10(1) applies, within the nine months there mentioned;in a case where section 478 applies, within the time limit imposed by subsection (2)(a) of that section, but subject to subsection (6) of that section.
- (9) This section has effect subject to section 826(8).
#### Interest on tax overpaid
##### 826
- (1) In any case where—
- (a) a repayment falls to be made of corporation tax paid by a company for an accounting period which ends after the appointed day; or
- (aa) a repayment falls to be made under sections 246N and 246Q of advance corporation tax paid by a company in respect of distributions made by it in such an accounting period; or
- (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
- (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
- (da) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (e) a payment of land remediation tax credit or life assurance company tax credit falls to be made to a company under Part 14 of CTA 2009 in respect of an accounting period; or
- (f) a payment of film tax credit falls to be made to a company, or
- (fa) a payment of television tax credit falls to be made to a company; or
- (fb) a payment of video game 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.
- (2) Subject to section 826A(2), in relation to corporation tax paid by a company for an accounting period, the material date for the purposes of this section is the date on which corporation tax was paid or, if it is later, the date on which corporation tax for that accounting period became (or, as the case may be, would have become) due and payable in accordance with section 59D of the Management Act (payment of corporation tax).
- (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.
- (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—
- (a) the filing date for the company’s company tax return for the accounting period for which the R&D tax credit is claimed, and
- (b) the date on which the company tax return or amended company tax return containing the claim for payment of the R&D tax credit is delivered to the Inland Revenue.
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.
- (3AA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3B) In relation to a payment of land remediation tax credit or life assurance company tax credit falling within subsection (1)(e) above 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 land remediation tax credit or the life assurance company tax credit is claimed, and
- (b) the date on which the company tax return or amended company tax return containing the claim for payment of the land remediation tax credit or the life assurance company tax credit is delivered to the Inland Revenue.
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 or video game 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
- (b) the date on which the company tax return or amended company tax return containing the claim for payment is delivered to an officer of Revenue and Customs.
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.
- (3D) In relation to a payment of first-year tax credit falling within subsection (1)(g) above 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 claimed, and
- (b) the date on which the company tax return or amended company tax return containing the claim for payment of the tax credit is delivered to the Commissioners for Her Majesty's Revenue and Customs.
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.
- (4) For the purposes of this section a repayment of tax made on a claim under section 458 of CTA 2010 shall be treated as if it were a repayment of corporation tax for the accounting period in which the event giving rise to entitlement to relief under that section occurred but, in relation to such a repayment of tax, the material date for the purposes of this section is—
- (a) the date when the entitlement to relief in respect of the repayment accrued, that is to say—
- (i) where the repayment , or the release or writing off, of the loan or advance (or part thereof) occurred on or after the day mentioned in section 458(4) of CTA 2010, the date nine months after the end of that accounting period; and
- (ii) in any other case, the date nine months after the end of the accounting period in which the loan or advance was made;
or
- (b) if it is later, the date on which the tax which is to be repaid was in fact paid.
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) Where a repayment of corporation tax is a repayment of tax paid by a company on different dates, the repayment shall so far as possible be treated for the purposes of this section as a repayment of tax paid on a later rather than an earlier date among those dates.
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7A) In any case where—
- (a) a company carrying on a trade incurs a loss in the trade in an accounting period (“*the later period*”),
@@ -6720,13 +6722,13 @@
- (8A) Where—
- (a) interest has been paid to a company under subsection (1)(a) , (d), (e) or (f) above,
- (a) interest has been paid to a company under subsection (1)(a) , (d), (e) (f), (fa), (fb) or (fc) 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 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 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
@@ -6742,7 +6744,7 @@
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 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 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 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.
- (8C) In subsection (8A)(b) above “*error*” includes—
@@ -13429,7 +13431,7 @@
## SCHEDULE 31
#### Application of lower rate to income from savings and distributions.
#### The charge to income tax.
##### 1A
@@ -13465,7 +13467,7 @@
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for rent etc. not paid.
#### Appeals against determinations under . . . Chapter 4 of Part 3 of ITTOIA 2005.
##### 21A
@@ -13483,7 +13485,7 @@
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Disposal or exercise of rights in pursuance of deposits.
#### Deep discount securities.
##### 31ZB
@@ -13501,7 +13503,7 @@
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Costs of establishing employee share ownership trusts: relief.
#### Payments to trustees of approved profit sharing schemes.
### Connected persons
@@ -13641,2600 +13643,2600 @@
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for necessary expenses.
##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest etc. paid in respect of certain securities.
##### 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: incorporated friendly societies etc.
##### 140A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 140H
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Long-term business: application of the Corporation Tax Acts.
##### 144A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 146A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 151A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155ZB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Certified unit trusts: distributions.
##### 156A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 157A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 161A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 161B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168D
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation.
#### Building societies: time for payment of tax.
##### 177A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 177B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Contributions in respect of share option gains
#### Determination of reduced rate for building societies and composite rate for banks etc.
##### 187A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Removal expenses and benefits
##### 191A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 191B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 192A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Contemplative religious communities: gains exempt from corporation tax
##### 197A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Mileage allowances
##### 197AD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 197AE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Allowances for expenditure on purchase of patent rights: post-31st March 1986 expenditure.
##### 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.
- (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).
#### Information: supplementary provisions
##### 282A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 282B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Non-resident policies and off-shore capital redemption policies.
##### 289A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 289B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 290A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief for individuals.
##### 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
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 338A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 339A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 342A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Authorised unit trusts.
#### Interest paid on deposits with banks etc.
##### 343ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 343A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### “Deposit-taker”, “deposit” and “relevant deposit”.
#### Cancellation of corporation tax advantage.
#### Deemed manufactured payments in the case of stock lending arrangements.
##### 347A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 347B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Imputation of chargeable profits and creditable tax of controlled foreign companies
##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relief by agreement with other territories.
##### 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
- (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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 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
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### Relief for post-cessation expenditure
##### 109A
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### Change of residence
##### 110A
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#### Expenses of insurance companies
### 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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#### Exempt distributions.
##### 118ZG
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##### 118ZH
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##### 118ZI
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##### 18ZJ
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##### 118ZK
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Partnerships exploiting films
##### 118ZL
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##### 118ZM
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### Partners: meaning of “contribution to the trade”
#### Interest etc. paid in respect of certain securities.
##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 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
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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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#### Maximum benefits payable to members.
##### 144A
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##### 146A
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##### 151A
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##### 155ZA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 155ZB
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##### 155AA
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##### 155A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Funds of funds: distributions.
##### 156A
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##### 157A
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##### 159AA
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##### 159AB
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##### 159AC
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 159A
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##### 161A
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##### 161B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168A
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##### 168AA
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##### 168AB
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 168B
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##### 168C
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##### 168D
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##### 168E
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##### 168F
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##### 168G
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#### Distribution accounts.
#### Interest paid on deposits with banks etc.
##### 177A
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##### 177B
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### Contributions in respect of share option gains
#### Savings banks: exemption from tax.
##### 187A
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### Removal expenses and benefits
##### 191A
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##### 191B
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##### 192A
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#### Reserves of marketing boards and certain other statutory bodies.
##### 197A
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##### 197AA
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##### 197AB
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##### 197AC
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### Mileage allowances
##### 197AD
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##### 197AE
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#### Provisions supplementary to section 520.
##### 197AF
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##### 197AG
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##### 197AH
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### Mileage allowances
##### 197B
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##### 197C
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##### 197D
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##### 197E
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##### 197F
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### Sporting and recreational facilities
##### 197G
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##### 198A
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##### 200ZA
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##### 200AA
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##### 200A
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##### 200B
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##### 200C
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##### 200D
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##### 200E
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##### 200F
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##### 200G
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##### 200H
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##### 200J
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##### 201AA
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##### 201A
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##### 202A
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##### 202B
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##### 203A
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##### 203B
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##### 203C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 203D
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##### 203E
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##### 203F
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##### 203FA
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##### 203FB
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##### 203G
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##### 203H
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##### 203I
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##### 203J
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##### 203K
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##### 203L
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##### 206A
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##### 207A
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#### Transfers of trade to obtain balancing allowances
##### 209A
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##### 209B
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##### 213A
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### Industrial and provident society dividends etc
##### 230A
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##### 231A
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##### 231AA
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##### 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.
##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 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
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##### 458A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 461A
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##### 461B
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##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
##### 482A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### PETROLEUM EXTRACTION ACTIVITIES
##### 494AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 494A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 496A
Schedule 19B to this Act (exploration expenditure supplement) shall have effect.
##### 496B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustment of profits on averaging claim
##### 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—
- “*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
- “*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.
##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
- (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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Reduction in chargeable profits following an exempt period
##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Adjustment of profits on averaging claim
##### 482A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### PETROLEUM EXTRACTION ACTIVITIES
##### 494AA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 494A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 496A
Schedule 19B to this Act (exploration expenditure supplement) shall have effect.
##### 496B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Change in ownership of company with investment business: deductions generally
##### 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
#### Introductory.
##### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
@@ -16271,33 +16273,33 @@
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying vehicles
##### 577A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 578A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 578B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
##### 577A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 578A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 578B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 580C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on tax overpaid.
##### 581A
@@ -34074,6 +34076,8 @@
[^c23814321]: [S. 826(1)(fa)(fb)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/1/fa/fb) inserted (19.7.2013 for specified purposes and 1.4.2014 for remaining purposes, and with effect in accordance with [Sch. 18 para. 23](https://www.legislation.gov.uk/uksi/2014/1962/schedule/18/paragraph/23) of the amending Act and [S.I. 2014/1962](https://www.legislation.gov.uk/uksi/2014/1962), [art. 2(2)](https://www.legislation.gov.uk/uksi/2014/1962/article/2/2)) by [Finance Act 2013 (c. 29)](https://www.legislation.gov.uk/ukpga/2013/29), [Sch. 18 paras. 1(2)](https://www.legislation.gov.uk/ukpga/2013/29/schedule/18/paragraph/1/2), [22](https://www.legislation.gov.uk/ukpga/2013/29/schedule/18/paragraph/22); [S.I. 2013/1817](https://www.legislation.gov.uk/uksi/2013/1817), [art. 2(2)](https://www.legislation.gov.uk/uksi/2013/1817/article/2/2); [S.I. 2014/1962](https://www.legislation.gov.uk/uksi/2014/1962), [art. 2(3)](https://www.legislation.gov.uk/uksi/2014/1962/article/2/3)
[^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)
[^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)
@@ -34100,6 +34104,8 @@
[^c23814341]: Words in [s. 826(3C)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/3C) inserted (19.7.2013 for specified purposes and 1.4.2014 for remaining purposes, and with effect in accordance with [Sch. 18 para. 23](https://www.legislation.gov.uk/uksi/2014/1962/schedule/18/paragraph/23) of the amending Act and [S.I. 2014/1962](https://www.legislation.gov.uk/uksi/2014/1962), [art. 2(2)](https://www.legislation.gov.uk/uksi/2014/1962/article/2/2)) by [Finance Act 2013 (c. 29)](https://www.legislation.gov.uk/ukpga/2013/29), [Sch. 18 paras. 1(3)](https://www.legislation.gov.uk/ukpga/2013/29/schedule/18/paragraph/1/3), [22](https://www.legislation.gov.uk/ukpga/2013/29/schedule/18/paragraph/22); [S.I. 2013/1817](https://www.legislation.gov.uk/uksi/2013/1817), [art. 2(2)](https://www.legislation.gov.uk/uksi/2013/1817/article/2/2); [S.I. 2014/1962](https://www.legislation.gov.uk/uksi/2014/1962), [art. 2(3)](https://www.legislation.gov.uk/uksi/2014/1962/article/2/3)
[^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)
[^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))
@@ -34182,6 +34188,8 @@
[^c23813771]: Words in [s. 826(8A)(a)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8A/a) substituted (1.1.2007) by [Finance Act 2006 (c. 25)](https://www.legislation.gov.uk/ukpga/2006/25), [s. 53(1)](https://www.legislation.gov.uk/ukpga/2006/25/section/53/1), [Sch. 5 para. 26(4)(a)](https://www.legislation.gov.uk/ukpga/2006/25/schedule/5/paragraph/26/4/a); [S.I. 2006/3399](https://www.legislation.gov.uk/uksi/2006/3399), [art. 2](https://www.legislation.gov.uk/uksi/2006/3399/article/2)
[^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)
[^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)
@@ -34194,6 +34202,8 @@
[^c23814361]: Words in [s. 826(8A)(b)(ii)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8A/b/ii) inserted (19.7.2013 for specified purposes and 1.4.2014 for remaining purposes, and with effect in accordance with [Sch. 18 para. 23](https://www.legislation.gov.uk/uksi/2014/1962/schedule/18/paragraph/23) of the amending Act and [S.I. 2014/1962](https://www.legislation.gov.uk/uksi/2014/1962), [art. 2(2)](https://www.legislation.gov.uk/uksi/2014/1962/article/2/2)) by [Finance Act 2013 (c. 29)](https://www.legislation.gov.uk/ukpga/2013/29), [Sch. 18 paras. 1(4)](https://www.legislation.gov.uk/ukpga/2013/29/schedule/18/paragraph/1/4), [22](https://www.legislation.gov.uk/ukpga/2013/29/schedule/18/paragraph/22); [S.I. 2013/1817](https://www.legislation.gov.uk/uksi/2013/1817), [art. 2(2)](https://www.legislation.gov.uk/uksi/2013/1817/article/2/2); [S.I. 2014/1962](https://www.legislation.gov.uk/uksi/2014/1962), [art. 2(3)](https://www.legislation.gov.uk/uksi/2014/1962/article/2/3)
[^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)
[^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)
@@ -34208,6 +34218,8 @@
[^c23814381]: Words in [s. 826(8BA)](https://www.legislation.gov.uk/ukpga/1988/1/section/826/8BA) inserted (19.7.2013 for specified purposes and 1.4.2014 for remaining purposes, and with effect in accordance with [Sch. 18 para. 23](https://www.legislation.gov.uk/uksi/2014/1962/schedule/18/paragraph/23) of the amending Act and [S.I. 2014/1962](https://www.legislation.gov.uk/uksi/2014/1962), [art. 2(2)](https://www.legislation.gov.uk/uksi/2014/1962/article/2/2)) by [Finance Act 2013 (c. 29)](https://www.legislation.gov.uk/ukpga/2013/29), [Sch. 18 paras. 1(5)](https://www.legislation.gov.uk/ukpga/2013/29/schedule/18/paragraph/1/5), [22](https://www.legislation.gov.uk/ukpga/2013/29/schedule/18/paragraph/22); [S.I. 2013/1817](https://www.legislation.gov.uk/uksi/2013/1817), [art. 2(2)](https://www.legislation.gov.uk/uksi/2013/1817/article/2/2); [S.I. 2014/1962](https://www.legislation.gov.uk/uksi/2014/1962), [art. 2(3)](https://www.legislation.gov.uk/uksi/2014/1962/article/2/3)
[^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)
[^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)
@@ -38190,485 +38202,485 @@
#### Securities.
#### Introductory.
#### Transfers of business: deemed periodical returns
#### Gifts of shares, securities and real property to charities etc
#### Conditions for approval of retirement benefit schemes.
#### Cessation of approval: tax on certain schemes.
#### Termination of relief under this Chapter, and transitional provisions.
#### Election as to tax exempt business.
#### Income arising under settlement where settlor retains an interest.
#### Revocable settlements allowing release of obligation.
#### Stock lending.
#### Change in ownership of company with investment business: deductions generally
#### Contemplative religious communities: gains exempt from corporation tax
#### Reduced loss relief for additions to non-profit funds
#### Regulations in relation to qualifying policies
#### Interpretation of credit code.
#### Recovery of tax credits incorrectly paid.
#### Interpretation.
#### Repayment supplements: companies.
#### Interest on payments in respect of corporation tax and meaning of “the material date".
#### 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.
#### Interpretation of the Corporation Tax Acts etc.
#### Relevant deposits: computation of tax on interest.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Determinations requiring the sanction of the Board.
#### Introduction
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Assessment, recovery and postponement of supplementary charge
#### Introduction
#### Certified unit trusts: distributions.
#### Power to inspect documents.
#### Relief for individuals.
#### Qualifying interests in land held jointly
#### Conditions for approval of retirement benefit schemes.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Employment
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Revocable settlements allowing release of obligation.
#### Charge on profits.
#### The property managing subsidiaries requirement
#### Payments to unmarried minor children of settlor.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### 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 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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 after 6th April 1965.
#### General definition of offshore fund
#### 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
#### Section 590: supplementary provisions.
#### Section 591C: supplementary.
#### Exemption from tax in respect of qualifying premiums.
#### 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.
#### Deductions: asset transferred within group.
#### Contemplative religious communities: gains exempt from corporation tax
#### 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation.
#### 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
#### Supplement in respect of a pre-commencement accounting period
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
#### Supplement in respect of 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
#### Regulations in relation to qualifying policies
#### Reduction of United Kingdom taxes by amount of credit due.
#### Recovery of tax credits incorrectly paid.
#### Interpretation.
#### Definition of insurance company.
#### 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.
#### Interest on payments in respect of corporation tax and meaning of “the material date".
#### 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
#### Qualifying companies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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.
#### Application of lower rate to company distributions.
#### Meaning of “distribution”.
#### Election by company paying dividend.
#### Dividends etc. paid by one member of a group to another.
#### Qualifying policies.
#### Second loans.
#### Maximum benefits payable to members.
#### Interpretation of the Corporation Tax Acts etc.
#### Interpretation of the Corporation Tax Acts etc.
#### Relevant deposits: computation of tax on interest.
#### Introduction to section 807C
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Relevant interests.
#### Determinations requiring the sanction of the Board.
#### Introduction
#### Transfers of other business
#### Assessment, recovery and postponement of supplementary charge
#### Introduction
#### Certified unit trusts: distributions.
#### Power to inspect documents.
#### Relief for individuals.
#### Qualifying interests in land held jointly
#### Conditions for approval of retirement benefit schemes.
#### Qualifying vehicles
#### Territorial sea . . . .
#### Venture capital trusts.
#### Interpretation of Income Tax Acts.
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Revocable settlements allowing release of obligation.
#### Charge on profits.
#### The property managing subsidiaries requirement
#### Payments to unmarried minor children of settlor.
#### Restriction on deduction of interest or dividends from trading income.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Tax Acts.
#### Interpretation of Income Tax Acts.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### 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 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: passenger payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Miscellaneous charges (list for the purposes of certain provisions that formerly referred to Case VI of Schedule D)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a post-commencement period
#### The pool of qualifying E&A losses and the pool of non-qualifying losses
#### 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Commencement.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
#### Introduction
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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.
#### Commencement.
#### Introduction to section 807C
#### Withdrawal of right to tax credit of certain non-resident companies connected with unitary states.
#### Interpretation of Income Tax Acts.
#### Venture capital trusts.
#### Interpretation of Income Tax Acts.
#### Qualifying companies
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Restriction on deduction of interest or dividends from trading income.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interpretation of the Tax Acts.
#### Interpretation of Income Tax Acts.
#### Savings, transitional provisions, consequential amendments and repeals.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
@@ -38978,15 +38990,15 @@
#### Territorial sea and designated areas.
#### Farming and market gardening: relief for fluctuating profits.
#### Taxation of profit-related pay.
#### Creative artists: relief for fluctuating profits
#### Interpretation.
#### Life assurance premiums paid by employer
#### Interest which never has been relevant loan interest etc.
#### Apportionment of income and gains.
#### Commencement.
##### 469
@@ -39148,892 +39160,892 @@
#### Substitution of security: supplemental.
#### Relief where borrower deceased.
#### Substitution of security: supplemental.
#### Losses from overseas property business.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### 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
#### Eligibility for relief.
#### 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
#### Relevant loan interest.
#### 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Losses of ring fence trade: set off against profits of an earlier accounting period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Second loans.
#### Loans to participators etc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Insurance companies: allocation of expenses etc in computations under Case I of Schedule D.
#### Interest which never has been 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Apportionment of certain income, deductions and interest.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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 UK 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
#### UK property business losses
#### Interpretative provisions relating to insurance companies.
#### Income or gains arising from property investment LLP
#### 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Dealings in commodity futures etc: withdrawal of loss relief.
#### Company carrying on life assurance business
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Equalisation reserves for general business.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying companies
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
## Part IV — Disallowed debits and non-trading deficits
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Manufactured dividends and interest.
#### Section 751A: supplementary
##### 468A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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".
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Interest on tax overpaid.
#### Transfers of rights to receive distributions in respect of shares
#### Offshore income gains: application of transfer of assets abroad provisions
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Qualifying trade, profession or vocation
#### How averaging claim is given effect
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### The approved amount: mileage allowance payments
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Supplement in respect of a pre-commencement accounting period
#### Amount of post-commencement supplement for a post-commencement period
#### The non-qualifying pool
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Terminal losses.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Introduction
#### Adjustment of profits on averaging claim
#### About this Schedule
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
### 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
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
#### Dividends paid to investment trusts.
#### Relevant deposits: computation of tax on interest.
#### Treatment of oil extraction activities etc. for tax purposes.
#### UK property business or overseas property business
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 468A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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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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### 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.
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#### The mixed pool of qualifying E&A expenditure and supplement previously allowed
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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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@@ -40078,13 +40090,13 @@
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#### Modifications for change of tax basis
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#### Exemption for trade unions and employers’ associations.
#### Modifications where tax charged under section 35 of CTA 2009.
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#### Interpretation of Chapter II.
##### 508A
@@ -40233,3 +40245,5 @@
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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