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Income Tax Act 2007

Type Public General Act

Publication 2007-03-20

Last updated 2026-01-20

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2) A company is “in administration” if— (a) it is in administration within the meaning of Schedule B1 to the Insolvency Act 1986, or (b) there is in force in relation to it— (i) an administration order under Part 3 of the Insolvency (Northern Ireland) Order 1989, or (ii) any corresponding order under the law of a country or territory outside the United Kingdom.

(3) In relation to an administration order under Part 2 of the Insolvency Act 1986 the petition for which was presented before 15 September 2003, section 331 applies with the substitution for subsection (2) of—

(2) A company is “in administration” if there is in force in relation to it— (a) an administration order under Part 2 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989, or (b) any corresponding order under the law of a country or territory outside the United Kingdom.

Meaning of “company”, “shares” and “research and development” in Part 6

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(1) This paragraph applies in relation to the meaning of “company”, “shares” and “research and development” in Part 6 (see section 332).

(2) If—

(a) a company holds investments of any description in an entity immediately before 6 April 2007, and

(b) the entity is a company for any purposes of the Part 6 provisions but not for the corresponding purposes of the ICTA provisions,

any question whether the entity is a company for those purposes of the Part 6 provisions is to be determined in accordance with the ICTA provisions until such time as the company ceases to hold investments of that description.

(3) If—

(a) a company holds investments of any description in an entity immediately before 6 April 2007, and

(b) the investments are shares for any purposes of either of the following—

(i) the Part 6 provisions, and

(ii) the ICTA provisions,

but not for the corresponding purposes of the other set of provisions,

any question whether the investments are shares for those purposes of the Part 6 provisions is to be determined in accordance with the ICTA provisions until such time as the company ceases to hold investments of that description.

(4) In sub-paragraphs (2) and (3)—

“the ICTA provisions” means section 842AA of ICTA (VCT approvals) and Schedule 28B to that Act (qualifying holdings),

“the Part 6 provisions” means Chapter 3 of Part 6 (VCT approvals) and Chapter 4 of that Part (qualifying holdings).

(5) For the purpose of determining whether any shares or securities are to be regarded as comprised in a company's qualifying holdings, section 332 applies in relation to shares issued before 6 April 2000 with the substitution for the definition of “research and development” of—

“research and development” means any activity which is intended to result in a patentable invention (within the meaning of the Patents Act 1977) or in a computer program.

Part 9 — Other reliefs

Interest: loans for interests in close companies

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Section 392(3)(a) does not apply if the shares were acquired before 14 March 1989.

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Section 392(3)(b) does not apply if the shares were acquired before 6 April 1989.

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(1) In relation to a loan made before 14 November 1986—

(a) section 395(1)(c) applies with the substitution for “the trustees of” of “any person (other than the individual) interested in”, and

(b) section 395(1)(d) applies with the substitution for “the personal representatives” of “any person (other than the individual) interested in the estate”.

(2) No individual is an associate because of sub-paragraph (1)(a) if the trust relates exclusively to a registered pension scheme.

(3) No individual is an associate because of sub-paragraph (1)(a) if —

(a) the trust—

(i) is exclusively for the benefit of the employees, or the employees and directors, of the company or their dependants, and

(ii) is not wholly or mainly for the benefit of the directors or their relatives, and

(b) the individual—

(i) is not (either alone or with relatives) the beneficial owner of more than 5% of the company's ordinary share capital, and

(ii) could not become so as a result of the operation of the trust.

(4) For the purposes of sub-paragraph (3)(b), charitable trusts that may arise on the failure or determination of other trusts are ignored.

(5) In relation to any time before 6 April 2006, sub-paragraph (2) applies as if the reference to a registered pension scheme were a reference to an exempt approved scheme, as defined in section 592 of ICTA.

94

Section 395(2) does not apply in relation to a loan made before 26 July 1989, and, for the purposes of that section, section 550 of ITEPA 2003 (which defines “employee benefit trust” and is applied for the purposes of section 395 by section 395(6)) has effect as if section 550 of ITEPA 2003 referred to that day instead of 13 March 1989.

Interest: loans for interests in employee-controlled companies

95

(1) In relation to a loan used before 6 April 1990 in one or more of the ways specified in section 396(2)—

(a) section 396 applies as if—

(i) the reference in subsection (3) to full-time employees included a reference to full-time employees' spouses,

(ii) the references in subsection (4) to an individual included a reference to an individual's spouse, unless the individual and the individual's spouse are both full-time employees of the company within the meaning of section 396(5), and

(b) section 397(4) applies as if references to the individual included references to the individual's spouse.

(2) If a loan within section 396(2)(b) was made on or after that date, interest on the loan is eligible for relief under section 383 only if interest on the original loan would have been allowable under section 353 of ICTA after that date.

Interest relief: film partnerships

96

Section 399(4) (restriction on relief for interest on loans for purchasing interest in some film partnerships) only applies if the interest accrued on or after 10 March 2006.

Interest: loans for investing in co-operatives

97

Section 401 applies in relation to a loan used in one or more of the ways specified in subsection (2)(a) or (b) of that section only if the loan was made after 10 March 1981, but subsection (2)(c) of that section applies whenever the original loan was made.

Gift aid: gifts of money for relief in poor countries

98

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Gift aid: restrictions on associated benefits

99

(1) This paragraph applies if—

(a) a gift is made on or after 6 April 2007, and

(b) a benefit associated with the gift is received before that date or relates (wholly or partly) to a period falling before that date.

(2) Step 2 of the calculation in section 419(8) is to be read as if the words “(and neither condition C nor condition D is met in relation to it)” were omitted.

Gift aid: election to carry back relief

100

(1) This paragraph applies if in the tax year 2007-08 an individual makes a gift to a charity that is a qualifying donation for the purposes of Chapter 2 of Part 8.

(2) Section 426 has effect with the substitution for subsections (2) and (3) of—

(2) The condition is that in year P the grossed up amount of the gift would, if made in year P, be payable out of profits or gains brought into charge to income tax or capital gains tax. (3) If an election is made, section 25(6) to (9A) of FA 1990 have effect in relation to the individual as if the gift were a qualifying donation (within the meaning of section 25 of FA 1990) made in year P.

(3) Section 426 has effect with the omission of subsections (4) and (5).

Qualifying maintenance payments: maintenance assessments

101

(1) This paragraph applies for the purposes for which, on the day on which this Act comes into force, the amendments to section 347B of ICTA made by paragraph 8(1) and (2) of Schedule 3 to the Child Support, Pensions and Social Security Act 2000 (c. 19) (maintenance assessments superseded by maintenance calculations) do not have effect.

(2) Until a day is appointed for any of those purposes under this paragraph, section 454 and 455 have effect for that purpose as if—

(a) in section 454(7) and section 455(1)(a), (b), (c) and (3) for “calculation” there were substituted “ assessment ”, and

(b) for section 454(8) there were substituted—

(8) In this section “maintenance assessment” means a maintenance assessment made under the Child Support Act 1991 or the Child Support (Northern Ireland) Order 1991.

(3) The power to appoint a day under this paragraph is exercisable by the Secretary of State by order made by statutory instrument and different days may be appointed for different purposes (including different days for different areas).

Part 10 — Special rules about settlements and trustees

Trustees' expenses to be set against trustees' trust rate income

102

(1) This paragraph applies if the trustees of a settlement incur an allowable expense (see section 484) in a tax year prior to the tax year 2007-08.

(2) So far as the trustees have not paid the expense, the expense cannot, under Chapter 4 of Part 9, be set against the trustees' trust rate income for any tax year.

(3) So far as the expense is paid by the trustees in a tax year (“the relevant tax year”) after the tax year 2006-07, the expense is treated for the purposes of sections 484(1) and 485(1) as if it were incurred in the relevant tax year.

(4) So far as the expense is paid by the trustees in a tax year prior to the tax year 2007-08, section 485 applies in relation to the expense with the following modifications.

(5) It applies as if for subsection (3) there were substituted—

(3) Condition A is— (a) that section 686(2AA) of ICTA could not be applied in relation to the allowable expense so as to reduce the trustees' liability to tax for the tax year in which the trustees paid the expense, and (b) that was the case only because the trustees' section 686 income for that year was insufficient or they had no section 686 income for that year. “Section 686 income” means income to which section 686 of ICTA applies.

(6) It applies as if for subsection (4) there were substituted—

(4) Condition B is that— (a) for no tax year prior to the tax year 2007-08 has the allowable expense been used to reduce the trustees' liability to tax, and (b) the allowable expense has not been set against the trustees' trust rate income for a tax year prior to the current tax year as a result of this section.

103

(1) This paragraph applies for the purposes of section 489 if the relevant shares (see subsection (1) of that section) were acquired by the trustees before 11 May 2001.

(2) That section applies in relation to those shares with the following modifications.

(3) It applies as if subsection (2) were omitted.

(4) It applies as if in subsection (3) the words “If any were” were omitted.

(5) It applies as if in subsection (4)—

(a) for “If none were” there were substituted “ But if when the trustees acquired the relevant shares none of the shares in the relevant company were readily convertible assets ”, and

(b) in paragraph (b) for “any shares in the relevant company” there were substituted “ the relevant shares ”.

(6) It applies as if in subsection (5) for “(2) to” there were substituted “ (3) and ”.

Discretionary payments: trustees' tax pool

104

(1) Section 497 applies with the following modifications in relation to the trustees of a settlement established prior to the tax year 2007-08 if the current tax year is the tax year 2007-08.

(2) It also so applies if—

(a) the current tax year is a tax year subsequent to the tax year 2007-08, and

(b) the trustees have been UK resident for no tax year prior to the current tax year or the last tax year prior to the current tax year for which they were UK resident is a tax year prior to the tax year 2007-08.

(3) It applies as if in subsection (1) for Step 1 there were substituted—

Step 1 Take the amount of the trustees' final section 687(3) tax pool and deduct from that amount (but not so that it goes below nil) the total of all tax (if any) treated under section 687(2)(a) of ICTA as being paid as a result of payments made by the trustees in the tax year 2006-07. “The amount of the trustees' final section 687(3) tax pool” is the total amount— (a) available to the trustees under section 687(3) of ICTA for setting against tax assessable on them under section 687(2)(b) of that Act for the tax year 2006-07, or (b) which would have been so available had tax been so assessable.

(4) It applies as if subsections (2) and (3) were omitted.

Part 11 — Special rules about charitable trusts etc

Transactions with substantial donors

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106

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Non-charitable expenditure

107

(1) This paragraph applies if, as a result of sections 562 to 564, an amount of expenditure for the tax year 2007-2008 or any subsequent tax year (“the carry back tax year”) is treated as non-charitable expenditure for the tax year 2005-2006 or any earlier tax year.

(2) The amount of relief or exemption to be disallowed in respect of the tax year 2005-2006 or any earlier tax year is not to exceed the amount which would have been disallowed in respect of that tax year if—

(a) sections 562 to 564 had not applied in relation to the carry back tax year, and

(b) the amount of expenditure for the carry back tax year to be treated as non-charitable expenditure for an earlier tax year had instead been calculated in accordance with the provisions mentioned in sub-paragraph (3).

(3) Those provisions are—

(a) sections 505 and 506 of ICTA, and

(b) Part 3 of Schedule 20 to that Act,

as those provisions would have had effect in relation to the carry back tax year if the amendments made to them by section 55 of FA 2006 had not been made and the amendments made to them by this Act had not been made.

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Tax credits: stock lending arrangements and repos

108

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110

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Deemed manufactured payments: stock lending arrangements

111

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112

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113

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Deemed manufactured payments: repos

114

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115

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116

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117

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118

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Price differences under repos

119

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120

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121

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122

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123

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Powers to modify repo provisions

124

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Part 13 — Accrued income profits

Sale and repurchase arrangements

125

(1) Section 655 applies only if—

(a) in the case of overseas securities, the agreement to sell the securities mentioned in section 654(2) is entered into after 5 November 1996, and

(b) in any other case, the agreement to sell the securities so mentioned is entered into after 30 April 1995.

(2) In sub-paragraph (1) “overseas securities” has the same meaning as in Part 11 (see section 567).

126

(1) This paragraph applies if the agreement to sell the securities mentioned in section 654(2) was made before 9 April 2003.

(2) Section 655 has effect with the omission of subsection (2).

(3) For the purpose of determining whether (for the purposes of section 655) there is a sale and repurchase arrangement in respect of the securities, section 654(2) has effect with the omission of paragraph (b).

(4) Sub-paragraph (5) applies—

(a) for the purpose of determining whether (for the purposes of section 656) there is a sale and repurchase arrangement in respect of the securities, and

(b) for the purpose of determining whether (for the purposes of section 657) the case involves redemption arrangements.

(5) Section 654(2) has effect with the substitution for paragraphs (b) and (c) of

or (b) T or a person connected with T acquires, under the agreement or a related agreement, an option to buy back the securities.

Successive transfers with unrealised interest in default

127

Section 661 does not apply if the transferor's acquisition was before 28 February 1986.

Unrealised interest received by transferee after transfer within Chapter 2 of Part 12

128

If the transfer of securities within section 681(1)(a) occurred before 19 March 1986, section 681(1) has effect with the omission of paragraph (b).

Part 14 — Tax avoidance

Transactions in securities: general

129

(1) Despite anything in this Act, Chapter 1 of Part 17 of ICTA (cancellation of tax advantages from certain transactions in securities) continues to apply so far as required for the purposes of notices under section 703(3) of that Act requiring adjustments to be made affecting tax years before the tax year 2007-08; and a counteraction notice under Chapter 1 of Part 13 (transactions in securities) may not require such an adjustment to be made.

(2) Subject to that, Chapter 1 of Part 13 applies—

(a) whether or not the transaction or transactions, in consequence of which, or of the combined effect of which, the tax advantage has been or will be obtained, occur on or after 6 April 2007, and

(b) whether or not the tax year to which that advantage relates (“the tax advantage year”) is a year before the tax year 2007-08,

but see section 698(5) (under which no assessments may be made as a result of a counteraction notice later than 6 years after the tax advantage year).

(3) This paragraph is to be interpreted as if it were part of Chapter 1 of Part 13.

Transactions in securities: meaning of relevant companies for the purposes of sections 689 and 690

130

(1) In its application to a transaction in securities that took place before 29 April 1996 or two or more transactions in securities the first of which took place before that date, section 691(1)(b)(i) (meaning of “relevant company”) applies with the substitution for the words “listed in the Official List of” of the words “authorised to be dealt in on”.

(2) In its application to a transaction in securities that took place before 1 January 1997 or two or more transactions in securities the first of which took place before that date, section 691(1) applies as if the companies referred to in paragraph (b) included companies none of whose shares or stocks are dealt in on the Unlisted Securities Market regularly or from time to time.

(3) In this paragraph “companies” and “transaction in securities” have the same meaning as in Chapter 1 of Part 13 (see section 713).

Transactions in securities: statement of case by tribunal for opinion of High Court or Court of Session

131

If a tribunal has made a determination under section 705(3) of ICTA (determination on rehearing of appeal against notice under section 703 of ICTA) within 30 days before 6 April 2007, the appellant or an officer of Revenue and Customs may require the tribunal to state and sign a case under section 707(2) of this Act, despite not having declared dissatisfaction with the determination.

Transactions in securities: appeals to House of Lords

132

(1) This paragraph applies until paragraph 47 of Schedule 9 to the Constitutional Reform Act 2005 (c. 4) comes into force.

(2) Section 710 has effect until that time as if—

(a) references in subsections (1), (2) and (4) to the Supreme Court were references to the House of Lords, and

(b) in subsection (3) the words “unless leave has been given under and in accordance with section 1 of the Administration of Justice (Appeals) Act 1934” were substituted for the words “except with the leave of the Court of Appeal or the Supreme Court”.

(3) Section 711(4) has effect until that time as if the reference to the Supreme Court were a reference to the House of Lords.

Transfers of assets abroad: non-transferors receiving benefit- exclusion of income arising before 10 March 1981

133

(1) Section 732 (non-transferors receiving a benefit as a result of relevant transactions) applies whenever the relevant transfer referred to in that section took place.

(2) But the relevant income referred to in section 733(1) (by reference to which the amount of income treated as arising under section 732 is determined) does not include income that arose before 10 March 1981.

Transfers of assets abroad: whether trustees are “persons abroad”

134

(1) This paragraph deals with whether section 475 (residence of trustees) applies in determining if the single person mentioned in section 474 is a person abroad (as defined in section 718) for the purposes of sections 727 to 730 (charge where individuals receive capital sums as a result of transfers of assets abroad etc) (and accordingly whether section 718(2)(b) applies for those purposes).

(2) Section 475 does not apply for the purposes of sections 727 to 730 in relation to income payable before 15 June 1989.

(3) Section 475 does not apply for the purposes of sections 727 to 730 in relation to income payable on or after 15 June 1989 if—

(a) the individual received or became entitled to receive the capital sum mentioned in section 729(1) before that date, and

(b) the capital sum was wholly repaid or the right to it waived before 1 October 1989.

(4) In sub-paragraph (3) “capital sum” has the meaning given in section 729, and subsection (4) of that section applies for the purposes of that sub-paragraph as it applies for the purposes of section 729(1).

135

(1) Sub-paragraph (2) deals with whether section 474 (trustees of settlement to be treated as a single and distinct person) and section 475 (residence of trustees) apply for the purposes of sections 731 to 735 (charge where benefit received) (and accordingly whether section 718(2)(b) applies for those purposes).

(2) Sections 474 and 475 do not apply for the purposes of sections 731 to 735 in relation to benefits received before 15 June 1989.

(3) Sub-paragraphs (4) and (5) apply for the purposes of section 733 (income charged under section 731) in finding the amount of income treated as arising under section 732(2) in respect of benefits received on or after 15 June 1989.

(4) In determining the relevant income of an earlier tax year for the purposes of section 733(1) (see Step 4), income that arose to the trustees of a settlement before 6 April 1989 is treated as arising to persons abroad if one or more of the trustees were resident outside the United Kingdom, even though one or more were not so resident.

(5) But sub-paragraph (4) does not apply if the trustees have been charged to tax on that income.

Transfers of assets abroad: whether personal representatives are “persons abroad”

136

(1) This paragraph deals with whether section 834 (residence of personal representatives) applies in determining if personal representatives are persons abroad (as defined in section 718) for the purposes of sections 727 to 730 (charge where individuals receive capital sums as a result of transfers of assets abroad etc) (and accordingly whether section 718(2)(c) applies for those purposes).

(2) Section 834 does not apply for the purposes of sections 727 to 730 in relation to income payable before 15 June 1989.

(3) Section 834 does not apply for the purposes of sections 727 to 730 in relation to income payable on or after 15 June 1989 if—

(a) the individual received or became entitled to receive the capital sum mentioned in section 729(1) before that date, and

(b) the capital sum was wholly repaid or the right to it waived before 1 October 1989.

(4) In sub-paragraph (3) “capital sum” has the meaning given in section 729, and subsection (4) of that section applies for the purposes of that sub-paragraph as it applies for the purposes of section 729(1).

137

(1) Sub-paragraph (2) deals with whether section 834 (residence of personal representatives) applies for the purposes of sections 731 to 735 (charge where individuals receive a benefit as a result of transfers of assets abroad etc) (and accordingly whether section 718(2)(c) applies for those purposes).

(2) Section 834 does not apply for the purposes of sections 731 to 735 in relation to benefits received before 15 June 1989.

(3) Sub-paragraphs (4) and (5) apply for the purposes of section 733 (income charged under section 731) in finding the amount of income treated as arising under section 732(2) in respect of benefits received on or after 15 June 1989.

(4) In determining the relevant income of an earlier tax year for the purposes of section 733(1) (see Step 4), income that arose to personal representatives before 6 April 1989 is treated as arising to persons abroad if one or more of them were resident outside the United Kingdom, even though one or more were not so resident.

(5) But sub-paragraph (4) does not apply if the personal representatives have been charged to tax on that income.

Transfers of assets abroad: company residence for transfers between 20 March 1990 and 29 November 1993

138

(1) In relation to transfers and associated operations on or after 20 March 1990 and before 30 November 1993, a body corporate regarded as resident in a territory outside the United Kingdom for the purposes of any double taxation arrangements is treated as if it were resident outside the United Kingdom for the purposes of Chapter 2 of Part 13 (transfer of assets abroad).

(2) In this paragraph “transfers” and “associated operations” have the same meaning as in Chapter 2 of Part 13 (see sections 716 and 719 respectively).

Transfers of assets abroad: information powers concerning transfers between 20 March 1990 and 29 November 1993 involving companies

139

(1) So far as section 749(6) (restrictions on information to be provided under section 748) applies for the purposes of section 749(2) or (3), it applies in relation to transfers and associated operations on or after 20 March 1990 and before 30 November 1993 with the modification specified in sub-paragraph (2).

(2) The modification is that the reference to bodies corporate resident outside the United Kingdom includes a reference to bodies corporate regarded as resident in a territory outside the United Kingdom for the purposes of any double taxation arrangements.

Transfers of assets abroad: income arising before 26 November 1996

140

Sections 721(5)(b) and (c) and 728(3)(b) and (c) do not apply if the income arose before 26 November 1996.

Transfers of assets abroad: meaning of “associated operation” and consideration of associated operations alone

141

(1) In relation to any time before 5 December 2005, the reference in section 716(1)(b) (meaning of “relevant transfer”) to income which becomes payable to a person abroad does not include income that becomes so payable just as a result of one or more associated operations.

(2) In relation to any time before 5 December 2005, section 719 (meaning of “associated operation”) applies as if subsection (2) were omitted.

(3) In relation to any time before 5 December 2005, the reference in section 721(2) (individuals with power to enjoy income as a result of relevant transactions) to income which an individual has power to enjoy does not include income which the individual has power to enjoy just as a result of one or more associated operations.

(4) In relation to any time before 5 December 2005, the reference in section 728(1)(a) (individuals receiving capital sums as a result of relevant transactions) to income which has become the income of a person abroad does not include income that has become such income just as a result of one or more associated operations.

(5) In this paragraph—

(a) “associated operation” has the meaning given in section 719, and

(b) references to power to enjoy income are to be read in accordance with section 722 (when an individual has power to enjoy income of a person abroad).

Individuals in partnership: recovery of excess relief

142

In section 792(1)—

(a) the reference to the claiming of relief includes a reference to the claiming of relief as mentioned in section 74(1)(a) and (b) of FA 2005, and

(b) the reference to sections 104, 107 and 110 includes a reference to section 117 of ICTA (including as applied by section 118ZB of that Act) and section 118ZE of that Act.

143

(1) The losses covered by section 794(1) and (2) in relation to a trade include losses within section 74(5) of FA 2005 made in the trade.

(2) The income covered by section 794(3) includes amounts treated as received as a result of the application of section 74 of FA 2005.

(3) Sub-paragraph (4) applies for the purposes of section 794(5) if, as a result of paragraph 142(b), the relevant restriction provision would be section 117 of ICTA (including as applied by section 118ZB of that Act) or section 118ZE of that Act.

(4) The relevant restriction provision is instead taken to be—

(a) in the case of section 117 of ICTA (other than as applied by section 118ZB of that Act), section 104,

(b) in the case of section 117 of ICTA (as applied by section 118ZB of that Act), section 107, and

(5) In section 794(6) the reference to subsection (2)(b) includes a reference to section 74(11)(b) of FA 2005.

144

(1) The claims covered by section 797(1)(a) include claims within section 119(1)(a) of FA 2004.

(2) For the purposes of section 797—

(a) a “relevant disposal” does not include a disposal which was made before 10 December 2003, and

(b) an event occurring before the tax year 2007-08 is an “exit event” if (and only if) it is an “exit event” for the purposes of section 119 of FA 2004.

145

(1) The losses covered by section 800(3)(a) include losses in relation to which a claim is made as mentioned in section 121(1)(a) or (b) of FA 2004.

(2) The income covered by section 800(5) includes amounts treated as received as a result of the application of section 74 of FA 2005.

(3) The losses covered by section 800(6) in relation to a trade include losses within section 121(1A)(b) of FA 2004 made in the trade.

(4) In section 800(9) the reference to the making of a claim includes a reference to the making of a claim as mentioned in section 122A(1) of FA 2004.

146

In section 801(3) the reference to the making of a claim includes a reference to the making of a claim as mentioned in section 122A(1) of FA 2004.

147

(1) In section 802(1) the reference to the making of a claim includes a reference to the making of a claim as mentioned in section 122A(1) of FA 2004.

(2) The repeal by this Act of section 122A of FA 2004 (or any provision inserting or amending, or affecting the application of, that section) does not affect the power of the Commissioners for Her Majesty's Revenue and Customs to make regulations under that section having effect before the tax year 2007-08.

148

(1) After the commencement of section 802, the Partnerships (Restrictions on Contributions to a Trade) Regulations 2006 (S.I. 2006/1639) have effect as if made under that section.

(2) The Regulations so have effect subject to the following modifications.

(3) They have effect as if in regulation 2—

(a) for the definition of “ICTA” there were substituted—

“ITA 2007” means the Income Tax Act 2007;

, and

(b) for the definition of “relevant individual” there were substituted—

“relevant individual” means— (a) a limited partner (within the meaning given by section 103A of ITA 2007), (b) a member of a limited liability partnership, or (c) a non-active partner (within the meaning given by section 103B of ITA 2007), where the partnership carries on a trade in which the individual makes a film-related loss (as defined in section 800(2) of ITA 2007) for which the individual makes a claim as mentioned in section 802(1) of that Act;

(4) They have effect as if in regulation 3(a) for “section 120 of the Finance Act 2004” there were substituted “ section 799 of ITA 2007 ”.

(5) They have effect as if in regulation 4—

(a) for “contribution to the trade”, wherever occurring, there were substituted “ capital contribution ”,

(b) for “section 119(2)(b) or (c) of the Finance Act 2004”, wherever occurring, there were substituted “ section 797(2)(b) of ITA 2007 ”, and

(ii) the amount of income treated as received in accordance with section 797(5) of that Act.

(6) See paragraph 35 of this Schedule for provision about the effect of the Partnerships (Restrictions on Contributions to a Trade) Regulations 2005 (S.I. 2005/2017) after the commencement of section 802.

149

(1) In section 803 references to chargeable events include events that are chargeable events for the purposes of section 119 of FA 2004.

(2) Accordingly, the total amount of income mentioned in section 803(3) is to include any income treated as received as a result of section 119(5)(b) of FA 2004.

Individuals in partnership: exit charge

150

(1) The losses covered by section 805(1)(b) include losses in relation to which a claim is made as mentioned in section 126(1)(c) of FA 2004.

(2) The disposals covered by section 805(2)(a) and (b) do not include disposals made before 10 February 2004.

151

(1) In section 806 at Step 4 non-taxable consideration received before 10 February 2004 is excluded.

(2) In section 806 at Step 5—

(a) the reference to section 805 includes a reference to section 127 of FA 2004, and

(b) the reference to chargeable events includes a reference to chargeable events for the purposes of section 127 of FA 2004.

152

(1) This paragraph applies for the purposes of sections 805 to 807 if the individual carried on the trade at any time before 26 March 2004.

(2) Any reference to expenditure incurred in the trade in exploiting the licence does not include expenditure incurred before 10 February 2004.

153

The losses covered by section 807(4) include losses in relation to which a claim has been made as mentioned in section 128(2)(a) or (b) of FA 2004.

Part 15 — Deduction of income tax at source

Deduction by deposit-takers: discretionary or accumulation settlements

154

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

155

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

Deduction by deposit-takers and building societies: declarations of non-UK residence

156

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

Deduction by deposit-takers: qualifying certificates of deposit

157

(1) This paragraph applies to a certificate of deposit which was issued by a deposit-taker before 13 March 1984 on terms which provide for interest to be payable on the deposit at any time after 5 April 1985 (whether or not interest is payable on it before that date).

(2) The certificate of deposit is to be treated as a qualifying certificate of deposit for the purposes of section 865.

Deduction by deposit-takers: qualifying time deposits

158

(1) This paragraph applies to a deposit with a deposit-taker which—

(a) was made before 6 July 1984, and

(b) meets the condition in sub-paragraph (2).

(2) The condition is that the deposit is made on terms which—

(a) do not make provision for the transfer of the right to repayment,

(b) prevent partial withdrawals of, or additions to, the deposit, and

(i) to repay the sum at the end of a specified period ending after 5 April 1985, or

(ii) if interest is payable only when the deposit is repaid, to repay the sum on demand or on notice.

(3) The deposit is to be treated as a qualifying time deposit for the purposes of section 866.

Deduction by deposit-takers and building societies: saving for regulations

159

(1) This paragraph applies to regulations which—

(a) were made under section 477A(1) to (2A) of ICTA (building societies: regulations for deduction of tax),

(b) were in force immediately before the commencement of the repeal of those provisions by this Act, and

(c) could have been made under section 17 of TMA 1970 as amended by this Act, if those amendments had been in force at the time the regulations were made.

(2) The regulations have effect after the commencement of the repeal of section 477A(1) to (2A) of ICTA as if made under section 17 of TMA 1970 as amended by this Act.

160

(1) This paragraph applies to regulations about the making of declarations to building societies which—

(a) were made under section 477A(1) to (2A) of ICTA,

(b) were in force immediately before the commencement of the repeal of those provisions by this Act, and

(c) could have been made under section 132 or 133 of FA 1999 (electronic communications), if provision about the making of declarations to building societies had precluded to any extent the use of electronic communications for that purpose at the time that the regulations were made.

(2) The regulations have effect after the commencement of the repeal of section 477A(1) to (2A) of ICTA as if made under section 132 and 133 of FA 1999.

(3) Regulations under sections 132 and 133 of FA 1999 may make any provision in relation to Chapter 2 of Part 15 of this Act which they could have made if that Chapter had come into force before those sections.

Deduction by deposit-takers, building societies etc: collection of tax

161

Chapter 15 of Part 15 has effect for return periods which—

(a) fall within accounting periods ending on or after 6 April 2007, and

(b) end on or after that date.

162

(1) This paragraph applies to a payment—

(a) which is made in an accounting period beginning before 6 April 2007 and ending on or after that date, and

(b) which was made before 6 April 2007, but which would have been a payment within section 946 if it had been made on or after that date.

(2) A payment to which this paragraph applies is to be treated as a payment within section 946 if it is made in a return period which—

(a) falls within the accounting period,

(b) begins before 6 April 2007, and

(3) In addition, a payment to which this paragraph applies which was made in an earlier return period which falls within the accounting period is to be treated as a payment within section 946.

Deduction from certain payments of yearly interest: interest paid by banks

163

(1) In the case of payments of interest to which this paragraph applies, section 878 (exceptions from duty to deduct: interest paid by banks) has effect with the modification in sub-paragraph (2).

(2) The modification is the substitution for subsections (1) and (2) of that section of “The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest by a bank carrying on a genuine banking business in the United Kingdom.”

(3) This paragraph applies to interest payable on an advance made before 29 April 1996.

Deduction from certain payments of yearly interest: interest paid on advances from banks

164

(1) In the case of payments of interest to which this paragraph applies, section 879 (exceptions from duty to deduct: interest paid on advances from banks) has effect with the modification in sub-paragraph (2).

(2) The modification is the substitution for subsections (1) to (4) of that section of “The duty to deduct a sum representing income tax under section 874 does not apply to a payment of interest in the United Kingdom on an advance from a bank carrying on a genuine banking business in the United Kingdom.”

(3) This paragraph applies to interest payable before 29 April 1996.

(4) In the case of an institution which—

(a) immediately before 29 April 1996 was not treated for the purposes of section 349(3)(a) of ICTA as a bank carrying on a genuine banking business in the United Kingdom, and

(b) on that day fell within the definition of “bank” given by section 840A of ICTA,

this paragraph applies to interest payable on an advance made before that day.

(5) In the case of an institution which—

(a) immediately before 29 April 1996 was treated for the purposes of section 349(3)(a) of ICTA as a bank carrying on a genuine banking business in the United Kingdom, and

(b) on that day did not fall within the definition of “bank” given by section 840A(1) of ICTA,

this paragraph applies to the interest mentioned in sub-paragraph (6).

(6) That interest is any interest payable on an advance made before 29 April 1996, if at the time when the interest is paid the person beneficially entitled to the interest is within the charge to corporation tax as respects the interest.

Deduction from certain UK public revenue dividends

165

(1) This paragraph applies if—

(a) any person holds any gilt-edged securities in relation to which a direction was given under section 50(1) of ICTA at any time before 6 April 1998, and

(b) that person at any time before that date made an application under section 50(2) of that Act with respect to those securities.

(2) The person is treated as having made a deduction at source application under section 895 in respect of the securities which (unless withdrawn) is treated as having effect from that date.

166

(1) This paragraph applies in relation to any gilt-edged securities issued before 6 April 1998 which—

(a) are securities the interest on which, if paid immediately before that date, would have fallen to be paid after deduction of income tax, and

(b) are registered within the meaning of section 895 but are not securities in relation to which any direction under section 50 of ICTA was given before that date.

(2) Chapter 5 of Part 15 has effect as if the appropriate person had made a deduction at source application under section 895 in respect of the securities so as to enable that application to have effect from (and including) that date.

(3) In sub-paragraph (2) “the appropriate person” means—

(a) in the case of securities transferred before 6 April 1998 but after the time when the balance was struck for a dividend on them falling due on or after that date, the person who held the securities at the time when the balance was struck,

(b) in any other case, the person holding the securities in question immediately before 6 April 1998.

Unauthorised unit trusts: calculation of trustees' income pool

167

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

168

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

Non-resident landlords

169

(1) Sub-paragraph (2) applies to any references in the Taxation of Income from Land (Non-residents) Regulations 1995 (S.I. 1995/2902) to payments to be made to the Board in respect of tax that is or may become chargeable as the income from a business of a non-resident (as defined in those regulations).

(2) On and after 6 April 2007 those references are to be read as references to income tax to be paid to the Commissioners for Her Majesty's Revenue and Customs in respect of non-resident landlord income (as defined in section 971(2)).

Interpretation

170

Expressions used in this Part of this Schedule and in Part 15 have the same meaning as they have in Part 15.

Part 16 — Other provisions

Old references to surtax and standard rate tax

171

The repeal by this Act of section 819 of ICTA has no effect in relation to any instrument (of whatever nature), will or codicil made before the date on which this Act comes into force.

Section 820 of ICTA

172

Section 820 of ICTA (application of Income Tax Acts from year to year) applies to this Act as if this Act were in force on the day before 6 April 2007.

SCHEDULE 3

Part 1 — Repeals and revocations: general

Part 2 — Repeals having effect in relation to shares issued after 5 April 2007

SCHEDULE 4

Income tax and companies

Overview of charges to income tax

Income charged at the default basic rate: non-individuals

Income charged at the dividend ordinary rate: other persons

Tax reductions

Calculation of net income at Step 2 for low income estates and trusts

Reliefs and allowances deductible at Steps 2 and 3: supplementary

103A

(1) In this Chapter “ limited partner ” means an individual who carries on a trade—

(a) as a limited partner in a limited partnership registered under the Limited Partnerships Act 1907,

(b) as a partner in a firm who in substance acts as a limited partner in relation to the trade (see subsection (2)), or

(2) An individual in substance acts as a limited partner in relation to a trade if the individual—

(a) is not entitled to take part in the management of the trade, and

(b) is entitled to have any liabilities (or those beyond a certain limit) for debts or obligations incurred for the purposes of the trade met or reimbursed by some other person.

(3) The condition referred to in subsection (1)(c) is that—

(a) the individual carries on the trade jointly with other persons,

(b) under the law of a territory outside the United Kingdom, the individual is not entitled to take part in the management of the trade, and

(c) under that law, the individual is not liable beyond a certain limit for debts or obligations incurred for the purposes of the trade.

(4) In the case of an individual who is a limited partner as a result of subsection (1)(c), references in this Chapter to the individual's firm are to be read as references to the relationship between the individual and the other persons mentioned in subsection (3)(a).

103B

(1) For the purposes of this Chapter an individual carries on a trade as a non-active partner during a tax year if the individual—

(a) carries on the trade as a partner in a firm at a time during the year,

(b) does not carry on the trade as a limited partner at any time during the year, and

(2) For the purposes of this Chapter an individual devotes a significant amount of time to a trade in the relevant period for a tax year if, in that period, the individual spends an average of at least 10 hours a week personally engaged in activities of the trade and those activities are carried on—

(a) on a commercial basis, and

(b) with a view to the realisation of profits as a result of the activities.

(3) For this purpose “the relevant period” means—

(a) where the individual first started to carry on the trade less than six months before the end of the tax year, the period of six months beginning with the date on which the individual first started to carry on the trade;

(b) where the individual permanently ceased to carry on the trade less than six months after the start of the tax year, the period of six months ending with the date on which the individual permanently ceased to carry on the trade;

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

(5) If—

(a) any relief is given on the assumption that the individual devoted or will devote a significant amount of time to the trade in the relevant period for a tax year, but

(b) the individual in fact failed or fails to do so,

the relief is withdrawn by the making of an assessment to income tax under this section.

Restriction on reliefs for limited partners

103D

(1) For the purposes of this Chapter expenditure is qualifying film expenditure if—

(a) it is deducted under a relevant film provision for the purposes of the calculation required by section 849 of ITTOIA 2005 (calculation of firm's profits or losses), or

(b) it is incidental expenditure which (although not deducted under a relevant film provision) is incurred in connection with the production of a film, or the acquisition of the original master version of a film, in relation to which expenditure is so deducted.

(2) Expenditure is incidental if it is on management, administration or obtaining finance.

(3) The extent to which expenditure is within subsection (1)(b) is determined on a just and reasonable basis.

(4) For the purposes of this Chapter the amount of any loss that derives from qualifying film expenditure is determined on a just and reasonable basis.

(5) In this section—

“ the acquisition of the original master version of a film ” has the same meaning as in Chapter 9 of Part 2 of ITTOIA 2005 (see sections 130 and 132 of that Act),

“ film ” is to be read in accordance with paragraph 1 of Schedule 1 to the Films Act 1985, and

“ a relevant film provision ” means any one of sections 137 to 140 of ITTOIA 2005 (relief for certified master versions of films).

Meaning of “non-active partner” etc

Meaning of “qualifying film expenditure”

The gross assets requirement

Meaning of “excluded activities”

Put options

Limit on reliefs in any tax year not to exceed cap for tax year

Cases where maximum EIS relief not obtained

Meaning of “qualifying film expenditure”

Amount of repayments etc where there is more than one issue of shares

Restriction on withdrawal of relief under section 224

Transfers between spouses or civil partners

Venture capital trusts and VCT approvals

Meaning of “qualifying film expenditure”

Meaning of “contribution to the firm”

280A

(1) This section applies if—

(a) a company which is a VCT disposes of shares or securities (“the holding”),

(b) the consideration for the disposal does not consist wholly of new qualifying holdings, and

(c) the holding was comprised in the company's qualifying holdings throughout the 6 months ending immediately before the disposal.

(2) For the purpose of determining whether the 80% qualifying holdings condition is, has been or will be met—

(a) the company is to be treated as if it continued to hold the holding for the period of 12 months beginning with the disposal (but see subsection (4)), and

(b) the value of the company's investments in that period is to be treated as reduced by the amount of any monetary consideration for the disposal.

(3) The value of the holding in the period mentioned in subsection (2)(a) is to be treated as equal to its value (determined in accordance with this Chapter) immediately before the disposal.

(4) If the consideration for the disposal includes new qualifying holdings, subsection (2)(a) has effect as if the reference to the holding were to the appropriate proportion of the holding (the value of which is that proportion of the value of the holding, determined in accordance with subsection (3)).

(5) The appropriate proportion is—

$$TC-NQHTC$where—TC is the market value (at the time of the disposal) of the total consideration for the disposal, andNQH is the market value (at that time) of the new qualifying holdings.$

(6) If at any time the value of the company's investments would by virtue of subsection (2)(b) be reduced to an amount less than the value of its qualifying holdings, the value of its investments at that time is to be treated as equal to the value of its qualifying holdings.

(7) “New qualifying holdings” means shares or securities which (on transfer to the company) are comprised in the company's qualifying holdings.

(8) If (and to the extent that) the holding was acquired with money the use of which is at any time ignored by virtue of section 280(2), subsections (2) to (6) do not apply in relation to that time.

(9) Nothing in this section applies in relation to disposals between companies that are merging (within the meaning of section 323).

No relief for tax-generated agricultural expenses

Restrictions on reliefs for firms exploiting films

297A

(1) If the relevant company is a single company, the full-time equivalent employee number for it must be less than the permitted limit when the relevant holding is issued.

(2) If the relevant company is a parent company, the sum of—

(a) the full-time equivalent employee number for it, and

(b) the full-time equivalent employee numbers for each of its qualifying subsidiaries,

must be less than the permitted limit when the relevant holding is issued.

(3) The full-time equivalent employee number for a company is calculated as follows—

Step 1

Find the number of full-time employees of the company.

Step 2

Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.

The result is the full-time equivalent employee number.

(3A) The permitted limit” means—

(a) if the relevant company is a knowledge-intensive company at the time the relevant holding is issued (see section 331A), 500, and

(b) in any other case, 250.

(3B) The Treasury may by regulations amend subsection (3A)(a) or (b) by substituting a different number for the number for the time being specified there.

(4) In this section references to an employee—

(a) include a director, but

(b) do not include—

(i) an employee on maternity , paternity , shared parental , parental bereavement or neonatal care leave, or

(ii) a student on vocational training.

Losses from miscellaneous transactions

Regulations under Chapter

Restrictions on reliefs for firms exploiting films

Maximum risk finance investments at the issue date requirement

Maximum risk finance investments during period B requirement

The financial health requirement

Meaning of “qualifying business activity”

The UK permanent establishment requirement

The control and independence requirement

Call options

Cases where maximum EIS relief not obtained

Receipts of value by and from connected persons etc

Insignificant repayments ignored for purposes of section 224

Repayment of authorised minimum within 12 months

Overview of Chapter

The financial health requirement

The no employee investors requirement

Obligations of secrecy

Overview of Chapter

The gross assets requirement

The property managing subsidiaries requirement

Chevening Estate Act 1959 (c. 49)

Taxes Management Act 1970 (c. 9)

Finance Act 1971 (c. 68)

Biological Standards Act 1975 (c. 4)

House of Commons Disqualification Act 1975 (c. 24)

Inheritance Tax Act 1984 (c. 51)

Administration of Justice Act 1985 (c. 61)

Building Societies Act 1986 (c. 53)

Finance Act 1988 (c. 39)

Finance Act 1989 (c. 26)

Finance Act 1990 (c. 29)

Finance Act 1991 (c. 31)

Taxation of Chargeable Gains Act 1992 (c. 12)

Finance (No. 2) Act 1992 (c. 48)

Tribunals and Inquiries Act 1992 (c. 53)

Judicial Pensions and Retirement Act 1993 (c. 8)

Charities Act 1993 (c. 10)

Finance Act 1993 (c. 34)

Agriculture Act 1993 (c. 37)

Finance Act 1994 (c. 9)

Finance Act 1995 (c. 4)

Finance Act 1996 (c. 8)

Finance (No.2) Act 1997 (c. 58)

Finance Act 1998 (c. 36)

Greater London Authority Act 1999 (c. 29)

Finance Act 2000 (c. 17)

Capital Allowances Act 2001 (c. 2)

Finance Act 2002 (c. 23)

Proceeds of Crime Act 2002 (c. 29)

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Finance Act 2003 (c. 14)

Finance Act 2004 (c. 12)

Pensions Act 2004 (c. 35)

Constitutional Reform Act 2005 (c. 4)

Income Tax (Trading and Other Income) Act 2005 (c. 5)

Finance Act 2005 (c. 7)

Finance (No. 2) Act 2005 (c. 22)

Pensions (Northern Ireland) Order 2005 (S.I. 2005/255 (N.I. 1))

Finance Act 2006 (c. 25)

Income and Corporation Taxes Act 1988 (c. 1)

Continuity of the law: general

General saving for old transitional provisions and savings

Partnerships involving companies

Interpretation

General: carry forward loss reliefs

Trade loss relief against general income

Early trade losses relief

Sideways relief: trade leasing allowances given to individuals

Sideways relief: dealings in commodity futures

Terminal trade loss relief

Post-cessation trade loss relief and post-cessation property relief

Reliefs for limited partners not to exceed contribution to the firm

Reliefs for members of LLPs not to exceed contribution to the LLP

Members of LLPs: carry-forward of losses

Reliefs for non-active partners not to exceed contribution to the firm

Non-active partners: carry-forward of losses

Restriction on reliefs for non-active partners: pre-10 February 2004 events

Regulations under section 114

Application of existing regulations under sections 114 and 802

Losses in an employment or office

Loss relief against miscellaneous income: Case VI losses

Qualifying trading companies

Disposals of new shares

The trading requirement

Ceasing to meet trading requirement because of administration or receivership

The control and independence requirement

The qualifying subsidiaries requirement

The property managing subsidiaries requirement

The gross assets requirement

The unquoted status requirement

Power to amend requirements by Treasury order

Relief after an exchange of shares for shares in another company

Substitution of new shares for old shares

Interpretation of Chapter

Meaning of “qualifying subsidiary”

Meaning of “excluded activities”

Excluded activities: wholesale and retail distribution

Excluded activities: leasing of ships

Excluded activities: receipt of royalties and licence fees

Excluded activities: provision of services or facilities for another business

Meaning of a company being “in administration”

The gross assets requirement

Eligibility for relief

Form and amount of relief

No entitlement to relief if there is a linked loan

Loss of relief if shares disposed of within 5 years

Interpretation of Chapter 2

The 15% holding limit condition

Conditions relating to value of investments

Conditions relating to qualifying holdings and eligible shares: supplementary

Interpretation of Chapter 3

The maximum qualifying investment requirement

The no guaranteed loan requirement

The proportion of eligible shares requirement

The trading requirement

The carrying on of a qualifying activity requirement

Ceasing to meet the requirement because of administration or receivership

The use of the money raised requirement

The relevant company to carry on the relevant qualifying activity requirement

The gross assets requirement

The property managing subsidiaries requirement

Meaning of “qualifying trade”

Meaning of “qualifying 90% subsidiary”

Meaning of “qualifying subsidiary”

Meaning of “excluded activities”

Excluded activities: wholesale and retail distribution

Excluded activities: leasing of ships

Excluded activities: receipt of royalties and licence fees

Excluded activities: provision of services or facilities for another business

Winding up of the relevant company

Acquisitions for restructuring purposes etc

Power to facilitate company reorganisations

Meaning of a company being “in administration”

Meaning of “company”, “shares” and “research and development” in Part 6

Interest: loans for interests in close companies

Interest: loans for interests in employee-controlled companies

Interest relief: film partnerships

Interest: loans for investing in co-operatives

Gift aid: gifts of money for relief in poor countries

Gift aid: restrictions on associated benefits

Gift aid: election to carry back relief

Qualifying maintenance payments: maintenance assessments

Trustees' expenses to be set against trustees' trust rate income

Discretionary payments: trustees' tax pool

Transactions with substantial donors

Non-charitable expenditure

...

Deemed manufactured payments: stock lending arrangements

Deemed manufactured payments: repos

Price differences under repos

Powers to modify repo provisions

Sale and repurchase arrangements

Successive transfers with unrealised interest in default

Unrealised interest received by transferee after transfer within Chapter 2 of Part 12

Transactions in securities: general

Transactions in securities: meaning of relevant companies for the purposes of sections 689 and 690

Transactions in securities: statement of case by tribunal for opinion of High Court or Court of Session

Transactions in securities: appeals to House of Lords

Transfers of assets abroad: non-transferors receiving benefit- exclusion of income arising before 10 March 1981

Transfers of assets abroad: whether trustees are “persons abroad”

Transfers of assets abroad: whether personal representatives are “persons abroad”

Transfers of assets abroad: company residence for transfers between 20 March 1990 and 29 November 1993

Transfers of assets abroad: information powers concerning transfers between 20 March 1990 and 29 November 1993 involving companies

Transfers of assets abroad: income arising before 26 November 1996

Transfers of assets abroad: meaning of “associated operation” and consideration of associated operations alone

Individuals in partnership: recovery of excess relief

Individuals in partnership: exit charge

Deduction by deposit-takers: discretionary or accumulation settlements

Deduction by deposit-takers and building societies: declarations of non-UK residence

Deduction by deposit-takers: qualifying certificates of deposit

Deduction by deposit-takers: qualifying time deposits

Deduction by deposit-takers and building societies: saving for regulations

Deduction by deposit-takers, building societies etc: collection of tax

Deduction from certain payments of yearly interest: interest paid by banks

Deduction from certain payments of yearly interest: interest paid on advances from banks

Deduction from certain UK public revenue dividends

Unauthorised unit trusts: calculation of trustees' income pool

Non-resident landlords

Interpretation

Old references to surtax and standard rate tax

Section 820 of ICTA

Editorial notes

[^c1863978]: S. 1030 wholly in force at 6.4.2007; s. 1030(1) in force at 6.4.2007 see s. 1034(1); s. 1030(2)-(4) in force at 20.3.2007 see s. 1034(4)(b)

[^c2061144]: Act modified (21.2.2009) by The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order (S.I. 2009/317), art. 3, Sch.

[^key-000cccf9b58e3a5927321065f32832fb]: S. 103D inserted (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), Sch. 4 paras. 9, 21

[^key-0010e5fc268c67c11f5a31be6a79e98e]: Sch. 1 para. 345(2)(b) omitted (with effect in accordance with Sch. 8 para. 11 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 8 para. 10(c)

[^key-0029217839a25ccba2a19268096a9ee1]: S. 281(f)(iii) modified (with effect in accordance with Sch. 10 para. 3(4) of the amending Act) by Finance Act 2014 (c. 26), Sch. 10 para. 3(5)

[^key-00329cb8d5b7fb3ffb842d114a34bb9a]: S. 280A inserted (with effect in accordance with Sch. 16 para. 20(5) of the amending Act) by Finance Act 2007 (c. 11), Sch. 16 para. 20(3), (4)

[^key-003ada8ed6deda9b15a39a32b1d0a283]: Words in s. 721(3) inserted (with effect in accordance with Sch. 10 para. 20 of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 10(2)

[^key-004f7260c8a9cf726b3f98a45ae7a1dc]: S. 809L(2)(c) and word inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 5(3)(b)

[^key-00642f28da3e57fd0190a4a52ce2e52e]: Sch. 1 para. 191 omitted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 35

[^key-00aad3ef8b17fafd43d5f578d92eeda1]: Words in s. 46(6)(b) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 56; S.I. 2009/403, art. 2(2) (with art. 10)

[^key-00b2ea7a89eb53289685e0d1b4959818]: Words in s. 243(4) inserted (17.7.2012) (with effect in accordance with Sch. 7 para. 22 of the amending Act) by Finance Act 2012 (c. 14), Sch. 7 para. 19(b)

[^key-00cf48e52c1073cf43d01448ab737412]: S. 274(4)(5) inserted (6.4.2011) (with effect in accordance with Sch. 2 paras. 7(2), 8 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 2(2)(d); S.I. 2011/662, art. 2

[^key-00dc238dff3aa25363ce7dba5f1feb4b]: S. 809D(1)(za) inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 1(4) (with s. 40(1)(2))

[^key-01192ad80cddb147b74c9c5e3414ff8e]: S. 809B(2) omitted (with effect in accordance with Sch. 46 para. 25 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 3(b) (with Sch. 46 para. 26)

[^key-01252c5f92c1730bb19cef8cb2f2ac5d]: S. 309A(5)(6) omitted (with effect in accordance with Sch. 6 para. 14 of the amending Act) by virtue of Finance Act 2015 (c. 11), Sch. 6 para. 11(2)(a); S.I. 2015/1836, reg. 2(b)

[^key-012a5b55219106c008f1abb7cc3f48b0]: Word in s. 275(3)(b) substituted (6.4.2011) (with effect in accordance with Sch. 2 paras. 6, 8 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 2 para. 2(3); S.I. 2011/662, art. 2

[^key-015a7e47d40cb37158455060e0011cc4]: S. 284(1): s. 284 renumbered as s. 284(1) (19.7.2007) by Finance Act 2007 (c. 11), Sch. 16 para. 21(1)

[^key-017f9d8190550e4a66d2c5872c4ddcce]: S. 127ZA omitted (in relation to the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), Sch. 5 paras. 3(3)(b), 12(1) (with Sch. 5 paras. 15, 16, 18(4), 19)

[^key-01994b40354db717b6f42bac1a115fa8]: S. 213 excluded (20.5.2020) by Finance Act 2020 (c. 14), s. 110(1)(2)

[^key-01ad835e6e95b3256c7477ea673dbac3]: S. 173A(6)(7) inserted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 7(5)

[^key-01b314fe462d1ee1731a92857be98d23]: Word in s. 731(4) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 38(5), 70(1)

[^key-01b4e579d68ef813c6c273d57ba7ab91]: Word in s. 731(4) inserted (with effect in accordance with Sch. 10 para. 9(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 10 para. 5(b)

[^key-01b8b0dd47c0cbdf07d43a8b320c63c4]: S. 480(5) substituted for s. 480(5)(6) (with effect in accordance with s. 65(4) of the amending Act) by Finance Act 2007 (c. 11), s. 65(3)

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Income Tax Act 2007

Meaning of “company”, “shares” and “research and development” in Part 6

90

Part 9 — Other reliefs

Interest: loans for interests in close companies

91

92

93

94

Interest: loans for interests in employee-controlled companies

95

Interest relief: film partnerships

96

Interest: loans for investing in co-operatives

97

Gift aid: gifts of money for relief in poor countries

98

Gift aid: restrictions on associated benefits

99

Gift aid: election to carry back relief

100

Qualifying maintenance payments: maintenance assessments

101

Part 10 — Special rules about settlements and trustees

Trustees' expenses to be set against trustees' trust rate income

102

Share incentive plans: definition of “applicable period”

103

Discretionary payments: trustees' tax pool

104

Part 11 — Special rules about charitable trusts etc

Transactions with substantial donors

105

106

Non-charitable expenditure

107

... — ...

Tax credits: stock lending arrangements and repos

108

109

110

Deemed manufactured payments: stock lending arrangements

111

112

113

Deemed manufactured payments: repos

114

115

116

117

118

Price differences under repos

119

120

121

122

123

Powers to modify repo provisions

124

Part 13 — Accrued income profits

Sale and repurchase arrangements

125

126

Successive transfers with unrealised interest in default

127

Unrealised interest received by transferee after transfer within Chapter 2 of Part 12

128

Part 14 — Tax avoidance

Transactions in securities: general

129

Transactions in securities: meaning of relevant companies for the purposes of sections 689 and 690

130

Transactions in securities: statement of case by tribunal for opinion of High Court or Court of Session

131

Transactions in securities: appeals to House of Lords

132

Transfers of assets abroad: non-transferors receiving benefit- exclusion of income arising before 10 March 1981

133

Transfers of assets abroad: whether trustees are “persons abroad”

134