Legalize / United Kingdom / Public General Act

Income Tax (Trading and Other Income) Act 2005

Type Public General Act

Publication 2005-03-24

Last updated 2026-01-20

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

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32

(1) Amend section 53 (farming and other commercial occupation of land (except woodlands)) as follows.

(2) In subsection (1) after “charged to” insert “ corporation ”.

(3) In subsection (2)—

(a) for “person or partnership or body of persons” substitute “ company or partnership ”, and

(b) after “trade” insert “ for corporation tax purposes ”.

(4) In subsection (3) after “charged to” insert “ corporation ”.

33

In section 55(1) (mines, quarries and other concerns) after “charged to” insert “ corporation ”.

34

(1) Amend section 56 (transactions in deposits with and without certificates or in debts) as follows.

(2) In subsection (2)—

(a) for “person”, in the first place where it occurs, substitute “ company ”, and

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In subsection (3)

(a) for “does” substitute “ and section 551 of ITTOIA 2005 (charge to income tax on profits from disposal of deposit rights) do ”, and

(b) in paragraph (a) for “person” substitute “ company ”.

35

(1) Amend section 59 (persons chargeable: Schedule D) as follows.

(2) Omit subsections (1) and (2).

(3) In subsection (3)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) omit “under Schedule D”.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36

Omit sections 60 to 63A (basis of assessment for income tax: Cases I and II of Schedule D).

37

Omit section 64 (Case III assessments).

38

Omit section 65 (Cases IV and V assessments: general).

39

Omit section 65A (Case V income from land outside UK: income tax).

40

Omit section 68 (special rules where property etc. situated in Republic of Ireland).

41

Omit sections 68A to 68C (share incentive plans).

42

Omit section 69 (Case VI assessments).

43

Omit section 71 (computation of income tax where no profits in year of assessment).

44

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45

In section 74(1) (general rules as to deductions not allowable)—

(a) for “the Tax Acts” substitute “ the Corporation Tax Acts ”,

(b) after “computing the amount of the profits to be charged” insert “ to corporation tax ”,

(d) omit paragraph (b),

(e) in paragraph (j) for “his” substitute “ the creditor's ”, and

(f) omit paragraph (o).

46

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47

Omit section 77 (incidental costs of obtaining loan finance).

48

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49

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50

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51

Omit section 80 (expenses connected with foreign trades etc).

52

Omit section 81 (travel between trades etc).

53

Omit section 82 (interest paid to non-residents).

54

In section 82A(1) (expenditure on research and development)—

(a) for “person” substitute “ company ”,

(b) for “by him or on his behalf” substitute “ by the company or on the company's behalf ”, and

55

In section 82B(1) (payments to research associations, universities etc.)—

(a) for “person” substitute “ company ”,

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

56

In section 83 (patent fees etc. and expenses) after “the profits of a trade” insert “ for the purposes of corporation tax ”.

57

(1) Amend section 83A (gifts in kind to charities etc.) as follows.

(2) In subsection (1) for “a person carrying on a trade, profession or vocation” substitute “ a company carrying on a trade or profession ”.

(3) In subsection (2) for “the donor in the course of his trade” substitute “ the company in the course of its trade ”.

(4) In subsection (3)—

(a) for “the donor's” substitute “ the company's ”,

(b) for “the purposes of the Tax Acts” substitute “ corporation tax purposes ”, and

(5) In subsection (4)—

(a) after “in respect of the gift of an article” insert “ made by a company ”,

(b) for “chargeable period”, in both places where it occurs, substitute “ accounting period ”,

(c) for “the donor or any person connected with him” substitute “ the company or any person connected with the company ”,

(d) for “the donor shall” substitute “ the company shall ”,

(e) before “tax”, in both places where it occurs, insert “ corporation ”, and

(f) for “he” substitute “ the company ”.

58

(1) Amend section 84 (gifts to educational establishments) as follows.

(2) In subsection (1)—

(a) for “a person carrying on a trade, profession or vocation” substitute “ a company carrying on a trade or profession ”, and

(b) for “his trade” substitute “ its trade ”.

(3) In subsection (3)—

(a) for “the purposes of the Tax Acts” substitute “ corporation tax purposes ”, and

(b) for “his disposal” substitute “ its disposal ”.

(4) In subsection (3A) for “above is—” to the end substitute “ the period of two years beginning at the end of the accounting period in which the gift is made. ”

(5) Omit subsection (3B).

(6) In subsection (4)—

(a) after “in respect of the gift of an article” insert “ made by the donor ”,

(b) for “chargeable period”, in both places where it occurs, substitute “ accounting period ”,

(d) before “tax”, in both places where it occurs, insert “ corporation ”, and

(e) for “he” substitute “ the donor ”.

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60

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61

In section 86A (charitable donations: contributions to agent's expenses) —

(a) in subsection (1) for “a person” substitute “ a company ”, and

(b) in subsection (2)(a) for “, profession or vocation” substitute “ or profession ”.

62

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74

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75

Omit section 95A (creative artists: relief for fluctuating profits).

76

Omit section 96 (farming and market gardening: relief for fluctuating profits).

77

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85

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86

Omit section 107 (treatment of receipts as earned income).

87

Omit section 108 (election for carry-back).

88

Omit section 109 (charge under section 104: relief for individuals born before 6th April 1917).

89

(1) Amend section 109A (relief for post-cessation expenditure) as follows.

(2) Omit subsection (3).

(3) In subsection (4) omit the unnumbered paragraph beginning with “If any sum”.

(4) In subsection (4A) omit the unnumbered paragraph beginning with “If any sum”.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

90

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91

Omit section 110A (change of residence) and the italic cross-heading before it.

92

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93

Omit section 112 (partnerships controlled abroad).

94

Omit section 113 (effect for income tax of change in ownership of trade, profession or vocation).

95

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102

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103

In section 119(1) (rent etc. payable in connection with mines, quarries and similar concerns) after “charged to” insert “ corporation ”.

104

In section 120 (rent etc. payable in respect of electric line wayleaves)—

(a) in subsection (1) after “charged to” insert “ corporation ”,

(b) in subsection (1A) for “chargeable period” substitute “ accounting period ”, and

105

In section 121 (management expenses of owner or mineral rights) omit subsection (1).

106

(1) Amend section 122 (relief in respect of mineral royalties) as follows.

(2) In subsection (1)—

(a) for the words from “a person resident” to “year of assessment or” substitute “ a company resident in the United Kingdom which in any ”,

(b) omit “for the purposes of income tax, or as the case may be”,

(d) omit “year or” in both places where it occurs.

(3) In subsection (2)—

(a) omit the words from “brought into account” to “may be,”, and

(b) for “subsection (2)” substitute “ subsection (3) ”.

(4) Omit subsection (4).

107

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108

Omit section 127 (enterprise allowance).

109

Omit section 127A (futures and options: transactions with guaranteed returns).

110

In section 128 (commodity and financial futures etc: losses and gains) omit subsection (1).

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116

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117

Omit section 232 (tax credits for non-UK residents).

118

Omit section 233 (taxation of certain recipients of distributions and in respect of non-qualifying distributions).

119

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120

(1) Amend section 250 (returns) as follows.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In subsection (7) at the end insert “ of this Act or Chapter 5 of Part 4 of ITTOIA 2005 ”.

121

In section 251 (interpretation of sections 249 and 250), omit subsections (2) to (6).

122

Omit sections 251A to 251D (approved share incentive plans).

123

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124

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125

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126

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127

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128

Omit section 314 (divers and diving supervisors).

129

Omit section 322 (consular officers and employees).

130

Omit section 324 (designated international organisations).

131

Omit section 325 (interest on deposits with National Savings Bank).

132

Omit section 326 (interest etc. under contractual savings schemes).

133

Omit sections 326A to 326D (tax-exempt special savings accounts).

134

Omit section 327 (disabled person's vehicle maintenance grant).

135

Omit section 327A (payments to adopters).

136

Omit sections 329 to 329AB (exemption of interest on damages for personal injury and personal injury damages in the form of periodical payments).

137

Omit section 331 (scholarship income).

138

Omit section 331A (student loans: certain interest to be disregarded).

139

Omit section 332(3) (expenditure and houses of ministers of religion).

140

In section 332A (venture capital trusts: reliefs) omit “and distributions by such trusts”.

141

For section 333 substitute—

(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.

142

Omit section 333A (personal equity plans: tax representatives).

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144

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145

(1) Amend section 337 (company beginning or ceasing to carry on trade) as follows.

(2) In subsection (1) after “shall be computed” insert “ for the purposes of corporation tax ”.

(3) In subsection (2) after “overseas property business” insert “ (within the meaning given by section 70A(4)) ”.

146

(1) Amend section 347A (general rule: annual payments) as follows.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Omit subsections (4) and (5).

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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150

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151

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152

In section 353(1) (relief for payments of interest) after “sections 359 to 368” insert “ of this Act and section 52 of ITTOIA 2005 ”.

153

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154

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155

In section 370(2)(b) (relevant loan interest) for the words from “either” to the end substitute “ would be eligible for relief under section 353 ”.

156

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157

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158

In section 382(3) (provisions supplementary to sections 380 and 381) omit “under the provisions of the Income Tax Acts applicable to Case I or II of Schedule D”.

159

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160

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161

In section 385(4) (carry-forward against subsequent profits) omit “under Case I of Schedule D” and, in both places where it occurs, “under that Case”.

162

In section 386(1) (carry-forward where business transferred to a company) omit “under Schedule D”.

163

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164

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169

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170

In section 398 (loss relief for transactions in deposits with and without certificates or in debts)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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176

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177

In section 434 (franked investment income etc.) omit subsection (1A).

178

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179

(1) Section 468J (dividend distributions of authorised unit trusts) is amended as follows.

(2) In subsection (2) for “Tax Acts” substitute “ Corporation Tax Acts ”.

(3) At the end of subsection (4) insert “(including a dividend treated as paid to a unit holder who is not liable to corporation tax)”.

180

(1) Section 468L (interest distributions of authorised unit trusts) is amended as follows.

(2) In subsection (1A) after “this Chapter” insert “ and Chapter 2 of Part 4 of ITTOIA 2005 (interest) ”.

(3) In subsection (2) for “Tax Acts” substitute “ Corporation Tax Acts ”.

(4) At the end of subsection (3) insert “(including a payment of interest treated as made to a unit holder who is not liable to corporation tax)”.

181

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182

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183

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184

(1) Amend section 477A (building societies: regulations for deduction of tax) as follows.

(2) In subsection (4)—

(a) for “terminal bonus” substitute “ interest ”, and

(b) for “contractual savings scheme” substitute “ SAYE savings arrangement ”.

(3) Omit subsections (5) and (6).

(4) In subsection (9) omit the words from “but” to the end of the subsection.

(5) In subsection (10) after “this section—” insert—

“certified SAYE savings arrangement” has the meaning given by section 703 of ITTOIA 2005

185

Omit section 480C (relevant deposits: computation of tax on interest).

186

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187

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188

(1) Section 486 (industrial and provident societies and co-operative associations) is amended as follows.

(2) In subsection (1)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) for “the purposes of corporation tax” substitute “ those purposes ”.

(3) In subsection (4) at the end insert “for the purposes of corporation tax”.

(4) Omit subsection (5).

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192

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194

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195

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196

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197

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198

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199

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200

Omit section 514 (funds for reducing the national debt).

201

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202

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203

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204

In section 527(4) (spreading of royalties over several years) at the end insert “ of this Act or by virtue of section 595 of ITTOIA 2005 ”.

205

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206

Omit section 529 (patent income to be earned income in certain cases).

207

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208

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209

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210

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211

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212

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213

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214

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215

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216

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217

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218

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219

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220

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221

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222

(1) Amend section 552 (information: duty of insurers) as follows.

(2) In subsection (1) omit “within the meaning of this Chapter”.

(3) In subsection (5)—

(a) in paragraph (b)(ii) for “, the date” to the end of the sub-paragraph substitute “ of this Act and section 514(1) of ITTOIA 2005 (chargeable events where transaction-related calculations show gains), the date on which the year and the insurance year end; ”,

(b) in paragraph (c)—

(i) after “this Chapter” insert “ and Chapter 9 of Part 4 of ITTOIA 2005 ”,

(ii) after “relevant capital payments” insert “ and the amount or value of any capital sums of a kind referred to in section 492(1)(b) to (e) of ITTOIA 2005 ”,

(iii) in sub-paragraph (iii) after “annuity” insert “ determined in accordance with section 656 and the amount of so much of any payment previously made on account of an annuity as is exempt under section 717 of ITTOIA 2005 ”, and

(iv) in sub-paragraph (v) after “year” insert “ and the total of the amounts of gains treated as arising on previous chargeable events within section 509(1) or 514(1) of ITTOIA 2005 ”,

(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;

, and

(d) for paragraph (f) substitute—

(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 lower 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.

(4) In subsection (6)—

(a) in paragraph (b)—

(i) after “section 546C(7)(a)” insert “ of this Act (and section 514(1) of ITTOIA 2005) ”, and

(ii) after “year” insert “ (and the insurance year) ”, and

(b) in paragraph (c) after “section 546C(7)(a)” insert “ of this Act (and section 514(1) of ITTOIA 2005) ”.

(5) In subsection (7)(b)—

(a) after “section 546C(7)(a)” insert “ of this Act (and section 514(1) of ITTOIA 2005) ”, and

(b) after “year” insert “ (and the insurance year) ”.

(6) In subsection (9)(a)—

(a) after “section 546C(7)(b)” insert “ of this Act (and section 514(1) of ITTOIA 2005) ”, and

(b) after “occurs” insert “ (and the end of the insurance year mentioned in section 514(3) and (4) of ITTOIA 2005) ”.

(7) In subsection (10)—

(a) in the definition of “amount” after “section 553(3)” insert “ of this Act and section 528 of ITTOIA 2005 ”, and

(b) insert in the appropriate place—

“chargeable event” means an event which is a chargeable event within the meaning of this Chapter and Chapter 9 of Part 4 of ITTOIA 2005;

223

In section 552ZA(3) (information: supplementary provisions) after “section 546C(7)(a)” insert “ of this Act and section 514(1) of ITTOIA 2005 ”.

224

(1) Amend section 552A (tax representatives) as follows.

(2) In subsection (5) omit “in relation to which this Chapter has effect and”.

(3) In subsection (12) insert in the appropriate place—

“capital redemption policy” means a capital redemption policy in relation to which this Chapter and Chapter 9 of Part 4 of ITTOIA 2005 have effect;

“contract for a life annuity” means a contract for a life annuity in relation to which this Chapter and Chapter 9 of Part 4 of ITTOIA 2005 have effect;

, and

“policy of life insurance” means a policy of life insurance in relation to which this Chapter and Chapter 9 of Part 4 of ITTOIA 2005 have effect;

225

In section 552B (duties of overseas insurers' tax representatives) after subsection (5) insert—

(5A) In subsection (5) “chargeable event” has the same meaning as in section 552 (see subsection (10) of that section).

226

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227

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228

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229

Omit section 554 (borrowings on life policies to be treated as income in certain cases).

230

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231

Omit section 557 (charge on profits).

232

In section 568(1) (deductions from profits of contributions paid under certified schemes)—

(a) after “section 74” insert “ of this Act or section 33 of ITTOIA 2005 ”, and

(b) after “Case I of Schedule D,” insert “ or under Part 2 of ITTOIA 2005, ”.

233

In section 570(4) (payments under certified schemes which are not repayments of contributions) for “any of the provisions of section 113 or section 337(1)” substitute “ section 337(1) above or section 18 of ITTOIA 2005 (companies beginning or ceasing to carry on trade) ”.

234

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235

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236

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237

In section 578(1) (housing grants) for “any tax purpose” substitute “ corporation tax purposes ”.

238

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239

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240

Omit sections 580A to 580C (relief from tax on annual payments under certain insurance policies and immediate needs annuities).

241

Omit section 581 (borrowing in foreign currency by local authorities and statutory corporations).

242

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243

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244

Omit section 583 (Inter-American Development Bank).

245

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246

Omit section 585 (relief from tax on delayed remittances).

247

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248

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249

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250

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251

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252

(1) Amend section 591C (cessation of approval: tax on certain schemes) as follows.

(2) In subsection (1) for “tax shall be charged” substitute “ income tax shall be charged under and ”.

(3) In subsection (2) omit “under Case VI of Schedule D”.

(4) In subsection (6A)(c)(iii) for “Schedule D” substitute “ Part 2 of ITTOIA 2005 ”.

253

(1) Amend section 592 (exempt approved schemes) as follows.

(2) In subsection (3)—

(a) after “the schemes” insert “ , are not relevant foreign income ”, and

(b) for “Case VI of Schedule D” substitute “ Chapter 8 of Part 5 of ITTOIA 2005 (income not otherwise charged) ”.

(3) In subsection (4)(a) after “for the purposes of” insert “ Part 2 of ITTOIA 2005 or ”.

254

(1) Amend section 598 (charge to tax: repayment of employee's contributions) as follows.

(2) In subsection (1) after “this section,” insert “ income ”.

(3) In subsection (2) for the words from the beginning to “Schedule D” substitute “ The person liable for any tax chargeable under this section shall be the administrator of the scheme ”.

255

(1) Amend section 599 (charge to tax: commutation of entire pension in special circumstances) as follows.

(2) In subsection (1) after “whether wholly or not, under the rule,” insert “ income ”.

(3) In subsection (1B) before “tax” insert “ income ”.

(4) In subsection (3) for the words from the beginning to “Schedule D on that amount,” substitute “ The person liable for any tax chargeable under this section shall be the administrator of the scheme ”.

256

In section 599A (charge to tax: payments out of surplus funds) for subsection (2) substitute—

(2) On the making of a payment to which subsection (1) above applies— (a) income tax is charged at the relevant rate on such amount as, after deduction of tax at that rate, would equal the amount of the payment, and (b) the person liable for the tax so charged is the administrator of the scheme.

257

In section 601(5)(b) (charge to tax: payments to employers) for “to tax on the amount of the payment under Case VI of Schedule D” substitute

— (i) to income tax on the full amount of the payment arising in the year of assessment; or (ii) to corporation tax on the amount of the payment under Case VI of Schedule D

258

In section 602(1)(a) (regulations relating to pension fund surpluses) omit “under Case VI of Schedule D”.

259

(1) Amend section 607 (pilots' benefit fund) as follows.

(2) In subsection (2)(c) for “the provisions of Case II of Schedule D” substitute “ such of the provisions of Part 2 of ITTOIA 2005 as apply in calculating the profits of a profession ”.

(3) In subsection (3)(a) for “in assessing tax under Schedule D” substitute “ in calculating the profits of the profession ”.

260

In section 608(2) (superannuation funds approved before 6th April 1980)—

(a) in paragraph (b)—

(i) after “commissions” insert “ which are not relevant foreign income and ”, and

(ii) for “Case VI of Schedule D” substitute “ Chapter 8 of Part 5 of ITTOIA 2005 ”, and

(b) in paragraph (c) for the words from “under” onwards substitute “ under Chapter 11 of Part 4 of ITTOIA 2005 (transactions in deposits) by virtue of a disposal of deposit rights falling within section 552(1)(a) or (b) of that Act ”.

261

In section 614(2A) (exemptions and reliefs in respect of income from investments etc. of certain pension schemes) for the words from “paragraph 1” to “(relevant” substitute “ Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply ”.

262

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263

(1) Amend section 623 (relevant earnings) as follows.

(2) In subsection (2)—

(a) in paragraph (c) for “Schedule D” substitute “ Part 2 of ITTOIA 2005 ”, and

(b) for paragraph (d) substitute—

(d) income to which section 833(5B) (patent income) applies;

(3) In subsection (6)—

(a) in paragraph (a) for “section 74(m), (p) or (q)” substitute “ section 51 of ITTOIA 2005 ”, and

(b) after the “or” at the end of that paragraph insert—

(aa) deductions in respect of any annuity or other annual payment (other than interest) payable out of his profits; or

264

In section 644(2) (meaning of “relevant earnings”)—

(a) in paragraph (c) for “Schedule D” substitute “ Part 2 of ITTOIA 2005 ”, and

(b) for paragraph (d) substitute—

(d) income to which section 833(5B) (patent income) applies.

265

In section 646(2) (meaning of “relevant net earnings”)—

(a) in paragraph (a) for “section 74(m), (p) or (q)” substitute “ section 51 of ITTOIA 2005 ”,

(b) after that paragraph insert—

(aa) deductions in respect of any annuity or other annual payment (other than interest) payable out of his profits;

, and

266

(1) Amend section 648B (return of contributions after pension date) as follows.

(2) In subsection (1) for “Tax” substitute “ Income tax ”.

(3) In subsection (2) for the words from the beginning to “Schedule D” substitute “ The person liable for any tax chargeable under this section shall be the administrator of the scheme ”.

267

(1) Amend section 650A (charge on withdrawal of approval from arrangements) as follows.

(2) In subsection (1) for “tax shall be charged” substitute “ income tax shall be charged under and ”.

(3) In subsection (2) omit “under Case VI of Schedule D”.

268

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

269

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270

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271

Omit sections 660A and 660B (income arising under settlement where settlor retains an interest and payments to unmarried minor children of settlor).

272

(1) Amend section 660C (nature of charge on settlor) as follows.

(2) Omit subsections (1) to (2).

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

273

Omit sections 660D to 660G (settlements: supplementary provisions etc.).

274

Omit section 677 (sums paid to settlor otherwise than as income).

275

Omit section 678 (capital sums paid by body connected with settlement).

276

Omit sections 682 and 682A (ascertainment of undistributed income and supplementary provisions for Chapter 1B).

277

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278

279

Omit section 688 (schemes for employees and directors to acquire shares).

280

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281

282

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283

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284

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285

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286

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287

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288

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289

Omit section 699 (relief from higher rate tax for inheritance tax on accrued income).

290

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291

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292

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293

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294

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295

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296

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297

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298

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299

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300

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301

Omit section 730C (exchanges of gilts: traders etc.).

302

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303

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304

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305

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306

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307

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308

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309

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310

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311

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312

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313

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314

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315

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316

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317

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318

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319

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320

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321

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322

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323

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324

In section 806K(2) (application of foreign dividend provisions to branches or agencies in the UK of persons resident elsewhere) after paragraph (b) insert—

(bb) in relation to income tax, take any reference to a dividend chargeable under Case V of Schedule D as a reference to a dividend chargeable under Chapter 4 of Part 4 of ITTOIA 2005;

325

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326

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327

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328

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329

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330

In section 821(1) (under-deductions from payments made before passing of annual Act)—

(a) after “assessment” insert “ or accounting period ”,

(b) after “quarterly payments” insert “ (or half-periodic or quarterly payments) ”,

(d) after “year”, in the second and third places where it occurs, insert “ or period ”,

(e) after “charged”, in the fourth place where it occurs, insert “ 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 under ”, and

(f) omit “in respect of those payments”.

331

(1) Section 824 (repayment supplements: individuals and others) is amended as follows.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Omit subsection (8).

(4) In subsection (9) for “to (8)” substitute “ to (7) ”.

332

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333

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334

(1) Amend section 828 (orders and regulations made by the Treasury or the Board) as follows.

(2) In subsection (4) omit “324,”.

(3) In subsection (5)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

335

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336

In section 831(3) (interpretation of ICTA) after the entry relating to “ITEPA 2003” insert—

“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;

337

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338

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339

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340

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341

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342

Omit Schedule 4A (creative artists: relief for fluctuating profits).

343

(1) Amend Schedule 5 (treatment of farm animals etc for the purposes of Case I of Schedule D) as follows.

(2) In paragraph 1—

(a) after “profits” insert “ chargeable to corporation tax ”, and

(b) for “his” substitute “ its ”.

(3) In paragraph 2—

(a) in sub-paragraph (1) for “he” substitute “ the farmer ”,

(b) omit sub-paragraphs (3)(a), (4)(a) and (5), and

(4) In paragraph 3—

(a) in sub-paragraph (1) after “profits” insert “ chargeable to corporation tax ”,

(b) in sub-paragraph (3)(b) for “him” substitute “ the farmer ”,

(d) in sub-paragraph (10)(b) for “him” substitute “ the farmer ”.

(5) In paragraph 4—

(a) for “him” substitute “ the farmer ”, and

(b) for “he” substitute “ the farmer ”.

(6) In paragraph 5(1) after “profits” insert “ chargeable to corporation tax ”.

(7) In paragraph 6—

(a) in sub-paragraph (1)—

(i) for “his” substitute “ its ”, and

(ii) for “him” substitute “ the farmer ”,

(b) omit sub-paragraphs (2)(a), and (3)(a), and

(8) In paragraph 8—

(a) for “him”, in each place it occurs, substitute “ the farmer ”,

(b) in sub-paragraph (7)—

(i) before “tax” insert “ corporation ”, and

(ii) for “chargeable period” substitute “ accounting period ”.

(9) In paragraph 11 for “chargeable period” substitute “ accounting period ”.

344

Omit Schedule 5AA (guaranteed returns on transactions in futures and options).

345

Omit Schedule 15A (contractual savings schemes).

346

(1) Amend Schedule 15B (venture capital trusts: relief from income tax) as follows.

(2) In paragraph 4(1) and (2) omit “under Case VI of Schedule D”.

(3) Omit paragraphs 7 to 9.

347

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

348

(1) Amend Schedule 22 (reduction of pension fund surpluses) as follows.

(2) In paragraph 7(3)(c) for the words from “section 56” to “that section” substitute “ section 551 of ITTOIA 2005 shall by virtue of section 56(3)(b) of this Act ”.

(3) After paragraph 7 insert—

(7A) (1) This paragraph applies if a calculation falls to be made under paragraph 7 above in a case where— (a) relief is to be given under section 454 of ITTOIA 2005 (listed deeply discounted securities held since 26th March 2003: relief for losses) in respect of a loss sustained on the disposal of securities, and (b) had there been a profit on the disposal it would have been eligible for relief from tax for the year of assessment in which the loss is sustained by virtue of section 592(2). (2) That relief is to be given before the calculation under paragraph 7 above is made. (3) Then the amount of income to which the specified percentage is applied by virtue of sub-paragraph (3)(a) of that paragraph is reduced by the amount of that relief. (4) In this paragraph “disposal” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005.

349

In paragraph 11A(4) of Schedule 24 (assumptions for calculating chargeable profits etc. of foreign companies) after “the Capital Allowances Act” insert “ or section 48 of ITTOIA 2005 ”.

350

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

351

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

352

(1) Amend Schedule 30 (transitional provisions and savings) as follows.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Omit paragraphs 18 and 18A.

Part 2 — Other enactments

Finance Act 1950 (c. 15)

353

The Finance Act 1950 is amended as follows.

354

In section 40(3) (modification of section 39 in case of recoveries by assignees and in certain cases of subsidiary companies)—

(a) omit “by the Special Commissioners under Case VI of Schedule D”, and

(b) omit “under that Case”.

Chevening Estate Act 1959 (c. 49)

355

The Chevening Estate Act 1959 is amended as follows.

356

(1) Amend section 2 (provisions as to income tax, estate duty and stamp duty) as follows.

(2) In subsection (1)—

(a) omit paragraph (a),

(b) in paragraph (b) for “Schedule D” substitute “ Part 3 of the Income Tax (Trading and Other Income) Act 2005 ”, and

(c) in paragraph (c) for the words from “Schedule C” to “annual payment” substitute “ the provisions of the Income Tax (Trading and Other Income) Act 2005 specified in subsection (1A) in respect of the income chargeable under those provisions ”.

(3) After subsection (1) insert—

(1A) The provisions are— (a) Chapter 2 of Part 4 (interest) so far as the income is yearly interest or public revenue dividends (as defined in section 505(1A) of the Income and Corporation Taxes Act 1988), (b) Chapter 7 of that Part (purchased life annuity payments), (c) Chapter 10 of that Part (distributions from unauthorised unit trusts), (d) Chapter 13 of that Part (sales of foreign dividend coupons) so far as the income arises from foreign holdings within section 571(1)(a) (meaning of “foreign holdings” in that Chapter), (e) Chapter 2 of Part 5, so far as it relates to annual payments (receipts from intellectual property), (f) Chapter 4 of that Part, so far as it relates to annual payments (certain telecommunication rights: non-trading income), and (g) Chapter 7 of that Part (annual payments not otherwise charged).

Taxes Management Act 1970 (c. 9)

357

The Taxes Management Act 1970 is amended as follows.

358

(1) Amend section 7 (notice of liability to income tax and capital gains tax) as follows.

(2) In subsection (6)—

(a) in paragraph (c) for “Schedule F” substitute “ Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc. from UK resident companies etc.) ”, and

(b) for “Schedule F”, in the second place where it occurs, substitute “ dividend ”.

(3) In subsection (9) in each of paragraphs (a) and (aa) for “Chapter II of Part XIII of the principal Act” substitute “ Chapter 9 of Part 4 of ITTOIA 2005 ”.

359

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

360

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

361

In section 9(1) (returns to include self-assessment)—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) omit “233(1),” and “, 249(4), 421(1) or 547(5)”, and

(c) for “or section 626 of ITEPA 2003” substitute “ , section 626 of ITEPA 2003 or section 399(2), 400(2), 414(1), 421(1) or 530(1) of ITTOIA 2005 ”.

362

Omit section 9D (choice between different Cases of Schedule D).

363

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

364

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

365

In section 12AE(2) (choice between different Cases of Schedule D) omit paragraph (a).

366

(1) Amend section 18 (interest paid without deduction of income tax) as follows.

(2) In subsection (3E)(b) for “relevant” substitute “ deeply ”.

(3) For subsection (3F) substitute—

(3F) In subsection (3E)(b) above “deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) (see section 430 of that Act).

367

(1) Amend section 19 (information for purposes of Schedule A) as follows.

(2) In subsection (1) after “profits or gains chargeable to tax” insert “ under Chapter 3 of Part 3 of ITTOIA 2005 as the profits of a UK property business or ”.

(3) In the side-note after “for purposes of” insert “ charge on profits of UK property businesses or under ”.

368

In section 27(2) (settled property) for “section 660G(1) and (2) of the principal Act” substitute “ section 620 of ITTOIA 2005 ”.

369

In section 30 (recovery of overpayment of tax, etc.) omit subsection (4).

370

In section 30A(2) (assessing procedure) for “Schedule” substitute “ Part or Chapter of ITEPA 2003 or ITTOIA 2005 ”.

371

In section 31(3) (appeals: right of appeal) omit “9D or”.

372

In section 42(7) (procedure for making claims etc.) omit the “and” before paragraph (d) and after that paragraph insert

and (e) sections 111(1), 126(2), 129(2), 143, 185, 194 and 326 of ITTOIA 2005.

373

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

374

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

375

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

376

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

377

(1) Amend section 59B (payment of income tax and capital gains tax) as follows.

(2) In subsection (1)—

(a) omit “233(1),” and “, 249(4), 421(1) or 547(5)”, and

(b) for “or section 626 of ITEPA 2003” substitute “ , section 626 of ITEPA 2003 or section 399(2), 400(2), 414(1), 421(1) or 530(1) of ITTOIA 2005 ”.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

378

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

379

(1) Amend section 98 (special returns, etc) as follows.

(2) In subsection (4DA)(c) for “section 98 of the Finance Act 2004” substitute “ section 758 of ITTOIA 2005 ”.

(3) In the first column of the Table—

(a) omit the entry relating to regulations under section 326C of ICTA,

(b) omit the entry relating to section 660F of ICTA, and

Section 75(5) of ITTOIA 2005. Section 128 of ITTOIA 2005 Section 305 of ITTOIA 2005. Section 647 of ITTOIA 2005. Regulations under Chapter 3 of Part 6 of ITTOIA 2005.

(4) In the second column of the Table—

(a) omit the entry relating to regulations under section 326C of ICTA, and

(b) at the end insert—

Section 75(4) of ITTOIA 2005. Regulations under Chapter 3 of Part 6 of ITTOIA 2005.

380

In section 118(1) (interpretation) after the definition of “ITEPA 2003” insert—

“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005,

381

In Schedule 1A (claims etc. not included in returns), in paragraph 10(b), for “(administration of estates)” substitute “ (administration of estates: corporation tax) or Chapter 6 of Part 5 of ITTOIA 2005 (administration of estates: income tax) ”.

382

(1) Amend Schedule 1B (claims for relief involving two or more years) as follows.

(2) In paragraph 1—

(a) in sub-paragraph (2) for the words from “are any of the following” to “and the same” substitute “ is a claim to which this Schedule applies and the same ”, and

(b) in sub-paragraph (3) for “includes—” to the end substitute “ includes a reference to amendments and revocations to which paragraph 4 below applies. ”

(3) In paragraph 3(1)—

(a) for “a trade of farming or market gardening claims that subsection (2) or (3) of section 96 of the principal Act” substitute “ a qualifying trade, profession or vocation (within the meaning of Chapter 16 of Part 2 of ITTOIA 2005) claims that Chapter 16 of Part 2 of ITTOIA 2005 ”, and

(b) after “that trade” insert “ , profession or vocation ”.

(4) In paragraph 4(1)—

(a) in paragraph (a) for “claims that subsection (2) or (3) of section 96 of the principal Act” substitute “ claims that Chapter 16 of Part 2 of ITTOIA 2005 ”, and

(b) in paragraph (b) for “subsection (9) of that section” substitute “ section 224(4) of that Act ”.

(5) In the italic cross-heading before paragraph 4 for “section 96(9)” substitute “ section 224(4) of ITTOIA 2005 ”.

(6) In paragraph 5—

(a) in sub-paragraph (1)—

(i) for “section 108 of the principal Act” substitute “ section 257 of ITTOIA 2005 ”, and

(ii) for the words from “the date” to “change of basis took place” substitute “ the date of the cessation ”, and

(b) in sub-paragraph (5) for “section 105 of the principal Act” substitute “ section 254 of ITTOIA 2005 ”.

383

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

384

In paragraph 2(4) of Schedule 3A (electronic lodgement of tax returns, etc.) after “ITEPA 2003” insert “ or ITTOIA 2005 ”.

Finance Act 1971 (c. 68)

385

The Finance Act 1971 is amended as follows.

386

In paragraph 8(2)(b) of Schedule 3 (taxation of refunds of contributions and certain other payments) for “to tax on the amount of the payment under Case VI of Schedule D” substitute

— (i) to income tax on the full amount of the payment arising in the year of assessment; or (ii) to corporation tax on the amount of the payment under Case VI of Schedule D

Finance Act 1973 (c. 51)

387

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

388

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Biological Standards Act 1975 (c. 4)

389

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

390

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Oil Taxation Act 1975 (c. 22)

391

The Oil Taxation Act 1975 is amended as follows.

392

In section 3(2) (allowance of expenditure (other than expenditure on long-term assets and abortive exploration expenditure))—

(a) in the first sentence—

(i) after “section 579 of the Taxes Act” insert “ or under section 77 of the Income Tax (Trading and Other Income) Act 2005 (“ITTOIA 2005”) ”,

(ii) after “under that subsection” insert “ or that section ”, and

(iii) omit “less the amount of the rebate recoverable (within the meaning of that subsection)”, and

(b) in the second sentence—

(i) after “section 492 of the Taxes Act” insert “ or by virtue of section 16 of ITTOIA 2005 ”,

(ii) after “paragraph (a) or (b) of that subsection” insert “ or within the definition of “oil-related activities” in section 16(2) of ITTOIA 2005 ”, and

(iii) after “if that subsection” insert “ or section ”.

Inheritance Tax Act 1984 (c. 51)

393

The Inheritance Tax Act 1984 is amended as follows.

394

In section 6(3) (excluded property), in paragraph (e)—

(a) for “certified contractual savings scheme” substitute “ certified SAYE savings arrangement ”, and

(b) for “section 326 of the Taxes Act 1988” substitute “ section 703(1) of the Income Tax (Trading and Other Income) Act 2005 ”.

395

In section 21(3) (normal expenditure out of income)—

(a) for “section 657 of the Taxes Act 1988” substitute “ section 423 of the Income Tax (Trading and Other Income) Act 2005 ”, and

(b) for “, for the purposes” to “annuity” substitute “ exempt from income tax under section 717 of that Act ”.

396

In section 174(1) (liabilities for which allowance is to be made in determining the value of an estate) in paragraph (b)—

(a) for “Schedule 13 to the Finance Act 1996 (discounted securities)” substitute “ Chapter 8 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (deeply discounted securities) ”, and

(b) for “paragraph 4(2) of that Schedule” substitute “ section 437(2) of that Act ”.

Films Act 1985 (c. 21)

397

The Films Act 1985 is amended as follows.

398

In section 6(1) (certification of master negatives, tapes and discs) after “1992” insert “ or Chapter 9 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 ”.

399

(1) Amend Schedule 1 (certification in case of British films) as follows.

(2) In paragraph 2(1) (applications for certification of master negatives, tapes or discs) after “1992” insert “ , or Chapter 9 of Part 2 of the Income Tax (Trading and Other Income) Act 2005, ”.

(3) In paragraph 3(1) (certification by Secretary of State of master negatives, tapes or discs) at the end insert “ or, as the case may be, Chapter 9 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 ”.

Finance Act 1988 (c. 39)

400

The Finance Act 1988 is amended as follows.

401

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

402

In section 73(2) (consideration for certain restrictive undertakings)—

(a) for “person” substitute “ company ”, and

(b) for “tax” substitute “ corporation tax ”.

403

In Schedule 6 (commercial woodlands) in paragraph 3(2) for “person” substitute “ company ”.

404

In Schedule 12 (building societies: change of status) for paragraph 7 substitute—

(7) Section 702 of the Income Tax (Trading and Other Income) Act 2005 (interest under certified SAYE savings arrangements to be exempt from income tax) shall have effect in relation to any interest (or bonus) payable after the transfer under a savings arrangement which immediately before the transfer was a certified SAYE savings arrangement (within the meaning of section 703(1) of that Act) in relation to the society despite the fact that it ceased to be such an arrangement by reason of the transfer.

Water Act 1989 (c. 15)

405

In section 95(11) of the Water Act 1989 (vesting in successor company of liability for loans not to affect directions by the Treasury under section 581 of ICTA) for “section 581 of the Income and Corporation Taxes Act 1988” substitute “ section 755 of the Income Tax (Trading and Other Income) Act 2005 ”.

Finance Act 1989 (c. 26)

406

The Finance Act 1989 is amended as follows.

407

In section 68(2) (principal charges to tax: employee share ownership trusts)—

(a) in paragraph (a) for “annual profits or gains whose amount” substitute “ income of an amount that ”, and

(b) for paragraph (b) and the word “and” at the end of it substitute—

(b) that income shall be chargeable to income tax for the year of assessment in which the event occurs, (ba) the tax so chargeable shall be charged on the full amount of the income the trustees are treated as receiving in the year of assessment, (bb) the trustees are liable for any tax so chargeable, and

408

In section 71(4) (further charges to tax: borrowing)—

(a) in paragraph (a) for “annual profits or gains whose amount” substitute “ income of an amount that ”, and

(b) for paragraph (b) and the word “and” at the end of it substitute—

(b) that income shall be chargeable to income tax for the year of assessment at the end of which the further event occurs, (ba) the tax so chargeable shall be charged on the full amount of the income the trustees are treated as receiving in the year of assessment, (bb) the trustees are liable for any tax so chargeable, and

409

(1) Amend section 76 (non-approved retirement benefits schemes) as follows.

(2) In subsection (1) after “Schedule D” insert “ or under Part 2 of the Income Tax (Trading and Other Income) Act 2005 ”.

(3) In subsection (4)(a) after “Schedule D” insert “ or under Part 2 of the Income Tax (Trading and Other Income) Act 2005 ”.

(4) In subsection (6C)(a) omit “of the Taxes Act 1988”.

410

Omit sections 112 and 113 (security: trades etc.).

411

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

412

In paragraph 1 of Schedule 12 (close companies: administrative provisions)—

(a) omit the word “and” at the end of paragraph (a), and

(b) after paragraph (b) insert—

(c) section 397 of the Income Tax (Trading and Other Income) Act 2005, and (d) Chapter 6 of Part 4 of that Act.

Electricity Act 1989 (c. 29)

413

In paragraph 10 of Schedule 11 to the Electricity Act 1989 (vesting in successor company of liability for loans not to affect directions by the Treasury under section 581 of ICTA) for “section 581 of the 1988 Act” substitute “ section 755 of the Income Tax (Trading and Other Income) Act 2005 ”.

Finance Act 1990 (c. 29)

414

The Finance Act 1990 is amended as follows.

415

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

416

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finance Act 1991 (c. 31)

417

The Finance Act 1991 is amended as follows.

418

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

419

The Social Security Contributions and Benefits Act 1992 is amended as follows.

420

(1) Amend section 15 (Class 4 contributions recoverable under the Income Tax Acts) as follows.

(2) In subsection (1)—

(a) for “annual profits or gains” substitute “ profits ”,

(b) omit the “and” at the end of paragraph (a),

(c) in paragraph (b) for “are profits or gains chargeable to income tax under Case I or Case II of Schedule D” substitute “ are profits chargeable to income tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 ”, and

(d) at the end of that paragraph insert

and (c) are not profits of a trade, profession or vocation carried on wholly outside the United Kingdom.

(3) In subsections (2), (3) and (3A) omit “or gains” in each place where they occur.

(4) Omit subsection (4).

421

In section 16(1) (application of Income Tax Acts and destination of Class 4 contributions) for “Case I or II of Schedule D” substitute “ Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 in respect of the profits of a trade, profession or vocation which is not carried on wholly outside the United Kingdom ”.

422

(1) Amend Schedule 2 (levy of Class 4 contributions with income tax) as follows.

(2) In paragraph 1 after paragraph (a) insert—

(ab) “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;

(3) In paragraph 2 for “profits or gains” to the end substitute

profits— (a) which are the profits of any relevant trade, profession or vocation which is not carried on wholly outside the United Kingdom, and (b) which are chargeable to income tax under Chapter 2 of Part 2 of ITTOIA 2005.

(4) In paragraphs 3(1), (4) and (5) and 4 omit “or gains” in each place where they occur.

(5) In paragraph 5—

(a) in paragraph (a) omit “or gains”, and

(b) in paragraph (b)—

(i) for “section 59 of the 1988 Act” substitute “ section 8 of ITTOIA 2005 ”, and

(ii) omit “or gains”.

(6) In paragraph 7 omit “or gains”.

423

The Social Security Contributions and Benefits (Northern Ireland) Act 1992 is amended as follows.

424

(1) Amend section 15 (Class 4 contributions recoverable under the Income Tax Acts) as follows.

(2) In subsection (1)—

(a) for “annual profits or gains” substitute “ profits ”,

(b) omit the “and” at the end of paragraph (a),

(c) in paragraph (b) for “are profits or gains chargeable to income tax under Case I or Case II of Schedule D” substitute “ are profits chargeable to income tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 ”, and

(d) at the end of that paragraph insert

and (c) are not profits of a trade, profession or vocation carried on wholly outside the United Kingdom.

(3) In subsections (2), (3) and (3A) omit “or gains” in each place where they occur.

(4) Omit subsection (4).

425

(1) Amend Schedule 2 (Schedule 2 to the Social Security Contributions and Benefits Act 1992: levy of Class 4 contributions with income tax) as follows.

(2) In paragraph 1 after paragraph (a) insert—

(ab) “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;

(3) In paragraph 2 for “profits or gains” to the end substitute

profits— (a) which are the profits of any relevant trade, profession or vocation which is not carried on wholly outside the United Kingdom, and (b) which are chargeable to income tax under Chapter 2 of Part 2 of ITTOIA 2005.

(4) In paragraphs 3(1), (4) and (5) and 4 omit “or gains” in each place where they occur.

(5) In paragraph 5—

(a) in paragraph (a) omit “or gains”, and

(b) in paragraph (b)—

(i) for “section 59 of the 1988 Act” substitute “ section 8 of ITTOIA 2005 ”, and

(ii) omit “or gains”.

(6) In paragraph 7 omit “or gains”.

Taxation of Chargeable Gains Act 1992 (c. 12)

426

The Taxation of Chargeable Gains Act 1992 is amended as follows.

427

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

428

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

429

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

430

In section 41(4) (restriction of losses by reference to capital allowances and renewals allowances)—

(a) in paragraph (b) after “Taxes Act” insert “ or any deduction under section 315 of ITTOIA 2005 ”, and

(b) in paragraph (c) after “Taxes Act” insert “ or section 170 of ITTOIA 2005 ”.

431

(1) Amend section 59 (partnerships) as follows.

(2) Renumber the existing text as subsection (1).

(3) After that subsection insert—

(2) Subsection (3) applies if— (a) a person resident in the United Kingdom (“the resident partner”) is a member of a partnership which resides outside the United Kingdom or which carries on any trade, profession or business the control and management of which is situated outside the United Kingdom, and (b) by virtue of any arrangements falling within section 788 of the Taxes Act (“the arrangements”) any of the capital gains of the partnership are relieved from capital gains tax in the United Kingdom. (3) The arrangements do not affect any liability to capital gains tax in respect of the resident partner's share of any capital gains of the partnership.

432

In section 97(7) (supplementary provisions) for “section 660G(1) and (2) of the Taxes Act” substitute “ section 620 of ITTOIA 2005 ”.

433

(1) Amend section 117 (meaning of qualifying corporate bond) as follows.

(2) In subsection (2AA) for “relevant discounted security for the purposes of Schedule 13 to the Finance Act 1996” substitute “ deeply discounted security for the purposes of Chapter 8 of Part 4 of ITTOIA 2005 (see section 430) ”.

(3) In subsection (6C) for “Schedule 13 to the Finance Act 1996 (relevant discounted securities)” substitute “ Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) (see section 433) ”.

434

(1) Amend section 142 (capital gains on stock dividends) as follows.

(2) In subsection (1) for the words from “section 249” to “that section” substitute “ section 410(2), (3) or (4) of ITTOIA 2005 applies ”.

(3) In subsection (3) for “the appropriate amount in cash (within the meaning of section 251(2) to (4) of the Taxes Act)” substitute “ the cash equivalent of the share capital in accordance with section 412 of ITTOIA 2005 ”.

435

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

436

In section 151 (personal equity plans) for subsections (2) and (2A) substitute—

(2) The provisions of Chapter 3 of Part 6 of ITTOIA 2005 (income from individual investment plans), except section 694(1) and (2), shall apply in relation to regulations made under subsection (1) as they apply to regulations made under section 694(1), but with the substitution for any reference to income tax of a reference to capital gains tax.

437

In section 151A(6) (venture capital trusts: reliefs) for the words from “in accordance” to the end of the subsection substitute “ as references to shares not acquired within the limit in section 709(4) of ITTOIA 2005; and the question whether shares are acquired within that limit shall be determined as it is for the purposes of Chapter 5 of Part 6 of that Act. ”

438

After section 151B insert—

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