Part 1 Overview

• 1 Overview of Act
• 2 Overview of priority rules

Part 2 Trading Income

• 3 Overview of Part 2
• 4 Provisions which must be given priority over Part 2

Charge to tax on trade profits

• 5 Charge to tax on trade profits
• 6 Territorial scope of charge to tax
• 7 Income charged
• 8 Person liable

Trades and trade profits

• 9 Farming and market gardening
• 10 Commercial occupation of land other than woodlands
• 11 Commercial occupation of woodlands
• 12 Profits of mines, quarries and other concerns
• 13 Visiting performers
• 14 Visiting performers: supplementary
• 15 Divers and diving supervisors
• 16 Oil extraction and related activities

Starting and ceasing to trade

• 17 Effect of becoming or ceasing to be a UK resident
• 18 Effect of company starting or ceasing to be within charge to income tax

Trading income and property income

• 19 Tied premises
• 20 Caravan sites where trade carried on
• 21 Surplus business accommodation
• 22 Payments for wayleaves

Rent-a-room and foster-care relief

• 23 Rent-a-room and foster-care relief
• 24 Professions and vocations
• 25 Generally accepted accounting practice
• 26 Losses calculated on same basis as profits
• 27 Receipts and expenses
• 28 Items treated under CAA 2001 as receipts and expenses
• 29 Interest
• 30 Animals kept for trade purposes
• 31 Relationship between rules prohibiting and allowing deductions

Introduction

• 32 Professions and vocations

Capital expenditure

• 33 Capital expenditure

Wholly and exclusively and losses rules

• 34 Expenses not wholly and exclusively for trade and unconnected losses

Bad and doubtful debts

• 35 Bad and doubtful debts

Unpaid remuneration

• 36 Unpaid remuneration
• 37 Unpaid remuneration: supplementary

Employee benefit contributions

• 38 Restriction of deductions
• 39 Making of “employee benefit contributions”
• 40 Provision of qualifying benefits
• 41 Timing and amount of certain qualifying benefits
• 42 Provision or payment out of employee benefit contributions
• 43 Profits calculated before end of 9 month period
• 44 Interpretation of sections 38 to 44

Business entertainment and gifts

• 45 Business entertainment and gifts: general rule
• 46 Business entertainment: exceptions
• 47 Business gifts: exceptions

Car or motor cycle hire

• 48 Car or motor cycle hire
• 49 Car or motor cycle hire: supplementary
• 50 Hiring cars (but not motor cycles) with low carbon dioxide emissions

Patent royalties

• 51 Patent royalties

Interest payments

• 52 Exclusion of double relief for interest

Social security contributions

• 53 Social security contributions

Penalties, interest and VAT surcharges

• 54 Penalties, interest and VAT surcharges

Crime-related payments

• 55 Crime-related payments

Introduction

• 56 Professions and vocations

Pre-trading expenses

• 57 Pre-trading expenses

Incidental costs of obtaining finance

• 58 Incidental costs of obtaining finance
• 59 Convertible loans and loan stock etc

Tenants under taxed leases

• 60 Tenants under taxed leases: introduction
• 61 Tenants occupying land for purposes of trade treated as incurring expenses
• 62 Limit on deductions if tenant entitled to mineral extraction allowance
• 63 Tenants dealing with land as property employed for purposes of trade
• 64 Restrictions on section 61 expenses: lease premium receipts
• 65 Restrictions on section 61 expenses: lease of part of premises
• 66 Corporation tax receipts treated as taxed receipts
• 67 Restrictions on section 61 expenses: corporation tax receipts

Renewals

• 68 Replacement and alteration of trade tools

Payments for restrictive undertakings

• 69 Payments for restrictive undertakings

Seconded employees

• 70 Employees seconded to charities and educational establishments
• 71 Educational establishments

Contributions to agents' expenses

• 72 Payroll deduction schemes: contributions to agents' expenses

Counselling and retraining expenses

• 73 Counselling and other outplacement services
• 74 Retraining courses
• 75 Retraining courses: recovery of tax

Redundancy payments etc

• 76 Redundancy payments and approved contractual payments
• 77 Payments in respect of employment wholly in employer's trade
• 78 Payments in respect of employment in more than one capacity
• 79 Additional payments
• 80 Payments made by the Government

Personal security expenses

• 81 Personal security expenses

Contributions to local enterprise organisations or urban regeneration companies

• 82 Contributions to local enterprise organisations or urban regeneration companies
• 83 Meaning of “local enterprise organisation”
• 84 Approval of local enterprise agencies
• 85 Supplementary provisions with respect to approvals
• 86 Meaning of “urban regeneration company”

Scientific research

• 87 Expenses of research and development
• 88 Payments to research associations, universities etc

Expenses connected with patents, designs and trade marks

• 89 Expenses connected with patents
• 90 Expenses connected with designs or trade marks

Export Credits Guarantee Department

• 91 Payments to Export Credits Guarantee Department

Expenses connected with foreign trades

• 92 Expenses connected with foreign trades
• 93 Allocation of expenses
• 94 Family expenses

Introduction

• 95 Professions and vocations

Capital receipts

• 96 Capital receipts

Debts released

• 97 Debts incurred and later released

Amounts received following earlier cessation

• 98 Acquisition of trade: receipts from transferor's trade

Reverse premiums

• 99 Reverse premiums
• 100 Excluded cases
• 101 Tax treatment of reverse premiums
• 102 Arrangements not at arm's length
• 103 Connected persons and property arrangements

Assets of mutual concerns

• 104 Distribution of assets of mutual concerns

Industrial development grants

• 105 Industrial development grants

Proceeds of insurance etc

• 106 Sums recovered under insurance policies etc
• 107 Professions and vocations
• 108 Gifts of trading stock to charities etc
• 109 Receipt by donor or connected person of benefit attributable to certain gifts
• 110 Meaning of “designated educational establishment”

Introduction

• 111 Election for application of herd basis rules
• 112 Meaning of “animal”, “herd”, “production herd” etc
• 113 Other interpretative provisions

The herd basis rules

• 114 Initial cost of herd and value of herd
• 115 Addition of animals to herd
• 116 Replacement of animals in herd
• 117 Amount of receipt if old animal slaughtered under disease control order
• 118 Sale of animals from herd
• 119 Sale of whole or substantial part of herd
• 120 Acquisition of new herd begun within 5 years of sale
• 121 Section 120: sale for reasons outside farmer's control
• 122 Replacement of part sold begun within 5 years of sale
• 123 Section 122: sale for reasons outside farmer's control

Elections

• 124 Herd basis elections
• 125 Five year gap in which no production herd kept
• 126 Slaughter under disease control order

Preventing abuse of the herd basis rules

• 127 Preventing abuse of the herd basis rules

Supplementary

• 128 Information if election made
• 129 Further assessment etc if herd basis rules apply

Introduction

• 130 Expenditure to which this Chapter applies
• 131 Meaning of “film” and related expressions
• 132 Meaning of “original master version” and “certified master version”
• 133 Meaning of “relevant period”

Expenditure treated as revenue in nature

• 134 Expenditure treated as revenue in nature

Films and sound recordings: normal rules for allocating expenditure

• 135 Films and sound recordings: production or acquisition expenditure

Certified master versions: special rules for allocating expenditure

• 136 Application of provisions about certified master versions
• 137 Certified master versions: preliminary expenditure
• 138 Certified master versions: production or acquisition expenditure

Certified master versions: limited-budget films

• 139 Certified master versions: production expenditure on limited-budget films
• 140 Certified master versions: acquisition expenditure on limited-budget films
• 141 “Total production expenditure in respect of the original master version”
• 142 When expenditure is incurred

Election for sections 134 to 140 not to apply

• 143 Election for sections 134 to 140 not to apply

Supplementary

• 144 Meaning of “genuinely intended for theatrical release”
• 145 Professions and vocations
• 146 Meaning of “relevant telecommunication right”
• 147 Expenditure and receipts treated as revenue in nature
• 148 Credits or debits arising from revaluation

Dealers in securities etc

• 149 Taxation of amounts taken to reserves
• 150 Conversion etc of securities held as circulating capital
• 151 Exchanges of gilts for gilt strips
• 152 Consolidation of gilt strips
• 153 Meaning of “gilt-edged security” and “strip”
• 154 Regulations for determining market value of securities or strips

Persons authorised for purposes of FISMA 2000

• 155 Levies and repayments under FISMA 2000

Dealers in land etc

• 156 Purchase or sale of woodlands
• 157 Relief in respect of mineral royalties
• 158 Lease premiums etc: reduction of receipts

Ministers of religion

• 159 Ministers of religion

Barristers and advocates

• 160 Alternative basis of calculation in early years of practice

Mineral exploration and access

• 161 Mineral exploration and access

Persons liable to pool betting duty

• 162 Payments by persons liable to pool betting duty

Intermediaries treated as making employment payments

• 163 Deduction for deemed employment payment
• 164 Special rules for partnerships

Waste disposal

• 165 Deduction for site preparation expenditure
• 166 Allocation of site preparation expenditure
• 167 Site preparation expenditure: supplementary
• 168 Site restoration payments

Cemeteries and crematoria

• 169 Cemeteries and crematoria: introduction
• 170 Deduction for capital expenditure
• 171 Allocation of ancillary capital expenditure
• 172 Exclusion of expenditure met by subsidies

Valuation of trading stock

• 173 Valuation of trading stock on cessation
• 174 Meaning of “trading stock”
• 175 Basis of valuation of trading stock
• 176 Sale basis of valuation: sale to unconnected person
• 177 Sale basis of valuation: sale to connected person
• 178 Sale basis of valuation: election by connected persons
• 179 Connected persons
• 180 Cost to buyer of stock valued on sale basis of valuation
• 181 Meaning of “sale” and related expressions

Valuation of work in progress

• 182 Valuation of work in progress on cessation
• 183 Meaning of “work in progress”
• 184 Basis of valuation of work in progress
• 185 Election for valuation at cost

Supplementary

• 186 Determination of questions by Commissioners
• 187 Professions and vocations
• 188 Application of Chapter
• 189 Relief for unremittable amounts
• 190 Restrictions on relief
• 191 Withdrawal of relief
• 192 Meaning of “know-how” etc
• 193 Disposal of know-how if trade continues to be carried on
• 194 Disposal of know-how as part of disposal of all or part of a trade
• 195 Seller controlled by buyer etc

Introduction

• 196 Professions and vocations

Accounting date

• 197 Meaning of “accounting date”

The normal rules

• 198 General rule
• 199 First tax year
• 200 Second tax year
• 201 Tax year in which there is no accounting date
• 202 Final tax year

Apportionment of profits

• 203 Apportionment etc of profits to basis periods

Overlap profits and losses

• 204 Meaning of “overlap period” and “overlap profit”
• 205 Deduction for overlap profit in final tax year
• 206 Restriction on bringing losses into account twice
• 207 Treatment of business start-up payments received in an overlap period

Rules where first accounting date shortly before end of tax year

• 208 When the late accounting date rules apply
• 209 Rule if there is an accounting date
• 210 Rules if there is no accounting date

Slight variations in accounting date

• 211 Treating middle date as accounting date
• 212 Consequence of treating middle date as accounting date
• 213 Circumstances in which middle date not treated as accounting date

Special rules if accounting date changes

• 214 When a change of accounting date occurs
• 215 Change of accounting date in third tax year
• 216 Change of accounting date in later tax year
• 217 Conditions for basis period to end with new accounting date
• 218 Commercial reasons for change of accounting date
• 219 The year after an ineffective change of accounting date
• 220 Deduction for overlap profit on change of accounting date
• 221 Claim for averaging of fluctuating profits
• 222 Circumstances in which claim may be made
• 223 Adjustment of profits
• 224 Effect of adjustment
• 225 Effect of later adjustment of profits

Introduction

• 226 Professions and vocations

Adjustment on change of basis

• 227 Application of Chapter
• 228 Adjustment income and adjustment expense
• 229 Income charged
• 230 Person liable
• 231 Calculation of the adjustment

Treatment of adjustment income and adjustment expense

• 232 Treatment of adjustment income
• 233 Treatment of adjustment expense

Expenses previously brought into account

• 234 No adjustment for certain expenses previously brought into account

Realising or writing off assets

• 235 Cases where adjustment not required until assets realised or written off

Mark to market

• 236 Change from realisation basis to mark to market
• 237 Election for spreading if section 236 applies

Spreading of adjustment income: barristers and advocates

• 238 Spreading on ending of exemption for barristers and advocates
• 239 Election to accelerate charge under section 238

Supplementary

• 240 Liability of personal representatives if person liable dies

Introduction

• 241 Professions and vocations

Charge to tax on post-cessation receipts

• 242 Charge to tax on post-cessation receipts
• 243 Extent of charge to tax
• 244 Income charged
• 245 Person liable

Meaning of “post-cessation receipts”

• 246 Basic meaning of “post-cessation receipt”
• 247 Other rules about what counts as post-cessation receipts

Sums treated as post-cessation receipts

• 248 Debts paid after cessation
• 249 Debts released after cessation
• 250 Receipts relating to post-cessation expenditure
• 251 Transfer of rights if transferee does not carry on trade

Sums that are not post-cessation receipts

• 252 Transfer of trading stock or work in progress
• 253 Lump sums paid to personal representatives for copyright etc

Deductions

• 254 Allowable deductions
• 255 Further rules about allowable deductions

Reliefs

• 256 Treatment of post-cessation receipts
• 257 Election to carry back
• 258 Changes in trustees and personal representatives
• 259 Meaning of “statutory insolvency arrangement”

Part 3 Property Income

• 260 Overview of Part 3
• 261 Provisions which must be given priority over Part 3
• 262 Priority between Chapters within Part 3

Introduction

• 263 Introduction

Basic meaning of UK and overseas property business

• 264 UK property business
• 265 Overseas property business

Generating income from land

• 266 Meaning of “generating income from land”
• 267 Activities not for generating income from land

Charge to tax on profits of a property business

• 268 Charge to tax on profits of a property business
• 269 Territorial scope of charge to tax
• 270 Income charged
• 271 Person liable

Calculation of profits

• 272 Profits of a property business: application of trading income rules
• 273 Amounts not brought into account as part of a property business
• 274 Relationship between rules prohibiting and allowing deductions

Apportionment of profits

• 275 Apportionment etc of profits to tax year

Introduction

• 276 Introduction

Amounts treated as receipts: leases

• 277 Lease premiums
• 278 Amount treated as lease premium where work required
• 279 Sums payable instead of rent
• 280 Sums payable for surrender of lease
• 281 Sums payable for variation or waiver of term of lease
• 282 Assignments for profit of lease granted at undervalue
• 283 Provisions supplementary to section 282

Other amounts treated as receipts

• 284 Sales with right to reconveyance
• 285 Sale and leaseback transactions
• 286 Provisions supplementary to sections 284 and 285

Additional calculation rule for reducing certain receipts

• 287 Circumstances in which additional calculation rule applies
• 288 The additional calculation rule
• 289 The additional calculation rule: special cases
• 290 Meaning of “unused amount” and “unreduced amount”

Deductions in relation to certain receipts

• 291 Deductions for expenses under section 292
• 292 Tenants under taxed leases treated as incurring expenses
• 293 Restrictions on section 292 expenses: the additional calculation rule
• 294 Restrictions on section 292 expenses: lease of part of premises

Limit on effect of additional calculation rule and deductions

• 295 Limit on reductions and deductions

Relationship with ICTA

• 296 Corporation tax receipts treated as taxed receipts
• 297 Taking account of reductions in corporation tax receipts
• 298 Taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA

Certain administrative provisions

• 299 Payment of tax by instalments
• 300 Statement of accuracy for purposes of section 282
• 301 Claim for repayment of tax payable by virtue of section 284
• 302 Claim for repayment of tax payable by virtue of section 285

Effective duration of lease

• 303 Rules for determining effective duration of lease
• 304 Applying the rules in section 303
• 305 Information about effective duration of lease

Other interpretative provisions

• 306 Provisions about premiums
• 307 Interpretation

Furnished accommodation: receipts and deductions

• 308 Furnished lettings
• 309 Rent-a-room relief

Treatment of receipts on acquisition of business

• 310 Acquisition of business: receipts from transferor's UK property business

Reverse premiums as receipts

• 311 Reverse premiums

Deductions for expenditure on energy-saving items

• 312 Deduction for expenditure on energy-saving items
• 313 Restrictions on relief
• 314 Regulations

Deductions for expenditure on sea walls

• 315 Deduction for expenditure on sea walls
• 316 Transfer of interest in premises
• 317 Ending of lease of premises
• 318 Transfer involving company within the charge to corporation tax

Mineral royalties

• 319 Relief in respect of mineral royalties

Apportionments on sale of land

• 320 Nature of item apportioned on sale of estate or interest in land

Mutual business

• 321 Mutual business

Introduction

• 322 Introduction

Definition

• 323 Meaning of “commercial letting of furnished holiday accommodation”
• 324 Meaning of “relevant period” in sections 325 and 326
• 325 Meaning of “qualifying holiday accommodation”
• 326 Under-used holiday accommodation: averaging elections

Separate profit calculations

• 327 Capital allowances and loss relief
• 328 Earned income and relevant UK earnings for pension purposes

Adjustment on change of basis

• 329 Application of Chapter
• 330 Adjustment income and adjustment expense
• 331 Income charged
• 332 Person liable

Treatment of adjustment income and adjustment expense

• 333 Treatment of adjustment income
• 334 Treatment of adjustment expense

Charge to tax on rent receivable in connection with a UK section 12(4) concern

• 335 Charge to tax on rent receivable in connection with a UK section 12(4) concern
• 336 Meaning of “rent receivable in connection with a UK section 12(4) concern”
• 337 Income charged
• 338 Person liable

Management expenses of owner of mineral rights

• 339 Deduction for management expenses of owner of mineral rights

Mineral royalties

• 340 Relief in respect of mineral royalties
• 341 Meaning of “mineral lease or agreement” and “mineral royalties”
• 342 Extended meaning of “mineral royalties” etc in Northern Ireland
• 343 Power of Board to determine what counts as “mineral royalties”

Charge to tax on rent receivable for UK electric-line wayleaves

• 344 Charge to tax on rent receivable for a UK electric-line wayleave
• 345 Meaning of “rent receivable for a UK electric-line wayleave”
• 346 Extent of charge to tax
• 347 Income charged
• 348 Person liable

Charge to tax on post-cessation receipts

• 349 Charge to tax on post-cessation receipts
• 350 Extent of charge to tax
• 351 Income charged
• 352 Person liable

Meaning of “post-cessation receipts”

• 353 Basic meaning of “post-cessation receipt”
• 354 Other rules about what counts as a “post-cessation receipt”
• 355 Transfer of rights if transferee does not carry on UK property business

Supplementary

• 356 Application to Schedule A businesses
• 357 Charge to tax on overseas property income
• 358 Meaning of “overseas property income”
• 359 Income charged
• 360 Person liable
• 361 Changes in trustees and personal representatives
• 362 Effect of company starting or ceasing to be within charge to income tax
• 363 Overseas property businesses and overseas land: adaptation of rules
• 364 Meaning of “lease” and “premises”

Part 4 Savings and Investment Income

• 365 Overview of Part 4
• 366 Provisions which must be given priority over Part 4
• 367 Priority between Chapters within Part 4
• 368 Territorial scope of Part 4 charges

Charge to tax on interest

• 369 Charge to tax on interest
• 370 Income charged
• 371 Person liable

Other income taxed as interest

• 372 Building society dividends
• 373 Open-ended investment company interest distributions
• 374 Date when interest payments under section 373 made
• 375 Interpretation of sections 373 and 374
• 376 Authorised unit trust interest distributions
• 377 Date when interest payments under section 376 made
• 378 Interpretation of sections 376 and 377
• 379 Industrial and provident society payments
• 380 Funding bonds
• 381 Discounts

Introduction

• 382 Contents of Chapter

Charge to tax on dividends and other distributions

• 383 Charge to tax on dividends and other distributions
• 384 Income charged
• 385 Person liable

Amounts treated as dividends

• 386 Open-ended investment company dividend distributions
• 387 Date when dividends paid under section 386
• 388 Interpretation of sections 386 and 387
• 389 Authorised unit trust dividend distributions
• 390 Date when dividends paid under section 389
• 391 Interpretation of sections 389 and 390

Shares in approved share incentive plans (“SIPs”)

• 392 SIP shares: introduction
• 393 Later charge where cash dividends retained in SIPs are paid over
• 394 Distribution when dividend shares cease to be subject to SIP
• 395 Reduction in tax due in cases within section 394
• 396 Interpretation of sections 392 to 395

Tax credits and payment and deduction of tax

• 397 Tax credits for qualifying distributions: UK residents and eligible non-UK residents
• 398 Increase in amount or value of dividends where tax credit available
• 399 Qualifying distributions received by persons not entitled to tax credits
• 400 Non-qualifying distributions
• 401 Relief: qualifying distribution after linked non-qualifying distribution

Charge to tax on dividends from non-UK resident companies

• 402 Charge to tax on dividends from non-UK resident companies
• 403 Income charged
• 404 Person liable

Shares in approved share incentive plans (“SIPs”)

• 405 SIP shares: introduction
• 406 Later charge where cash dividends retained in SIPs are paid over
• 407 Dividend payment when dividend shares cease to be subject to SIP
• 408 Reduction in tax due in cases within section 407
• 409 Charge to tax on stock dividend income
• 410 When stock dividend income arises
• 411 Income charged
• 412 Cash equivalent of share capital
• 413 Person liable
• 414 Income tax treated as paid
• 415 Charge to tax under Chapter 6
• 416 Income charged
• 417 Person liable
• 418 Relief where borrowers liable as settlors
• 419 Loans and advances to persons who die
• 420 Loans and advances to trustees of trusts that have ended
• 421 Income tax treated as paid
• 422 Charge to tax on purchased life annuity payments
• 423 Meaning of “purchased life annuity”
• 424 Income charged
• 425 Person liable
• 426 Annuity payments received after deduction of tax

Charge to tax under Chapter 8

• 427 Charge to tax on profits from deeply discounted securities
• 428 Income charged
• 429 Person liable

Deeply discounted securities

• 430 Meaning of “deeply discounted security”
• 431 Excluded occasions of redemption
• 432 Securities which are not deeply discounted securities
• 433 Meaning of “excluded indexed security”
• 434 Securities issued in separate tranches: preliminary
• 435 Securities issued in separate tranches: basic rule
• 436 Deeply discounted securities issued in separate tranches: nominal value rule

Disposals

• 437 Transactions which are disposals
• 438 Timing of transfers and acquisitions

Calculating profits

• 439 Calculating the profit from disposals
• 440 Market value disposals
• 441 Market value acquisitions
• 442 Securities issued in accordance with qualifying earn-out right

Special rules for strips of government securities

• 443 Application of this Chapter to strips of government securities
• 444 Meaning of “strip” in Chapter 8
• 445 Strips of government securities: acquisitions and disposals
• 446 Strips of government securities: relief for losses
• 447 Restriction of profits on strips by reference to original acquisition cost
• 448 Restriction of losses on strips by reference to original acquisition cost
• 449 Strips of government securities: manipulation of acquisition, transfer or redemption payments
• 450 Market value of strips etc
• 451 Market value of strips etc quoted in foreign stock exchange lists
• 452 Power to modify this Chapter for strips

Special rules for listed securities held since 26th March 2003

• 453 Application of sections 454 to 456
• 454 Listed securities held since 26th March 2003: relief for losses
• 455 Listed securities held since 26th March 2003: calculating the profit or loss on disposals
• 456 Securities issued to connected persons etc at excessive price: subsequent transfers to connected persons

Trustees

• 457 Trustees
• 458 Non-UK resident trustees

Miscellaneous and supplementary

• 459 Transfer of assets abroad
• 460 Minor definitions

Charge to tax under Chapter 9

• 461 Charge to tax under Chapter 9
• 462 When gains arise from policies and contracts
• 463 Income charged

Person liable etc

• 464 Person liable for tax: introduction
• 465 Person liable: individuals
• 466 Person liable: personal representatives
• 467 Person liable: UK resident trustees
• 468 Non-UK resident trustees and foreign institutions
• 469 Two or more persons interested in policy or contract
• 470 Interests in rights under a policy or contract for section 469
• 471 Determination of shares etc
• 472 Trusts created by two or more persons

Policies and contracts to which Chapter 9 applies

• 473 Policies and contracts to which Chapter 9 applies: general
• 474 Special rules: qualifying policies
• 475 Special rules: personal portfolio bonds
• 476 Special rules: foreign policies
• 477 Special rules: certain older policies and contracts
• 478 Exclusion of mortgage repayment policies
• 479 Exclusion of pension policies
• 480 Exclusion of excepted group life policies
• 481 Excepted group life policies: conditions about benefits
• 482 Excepted group life policies: conditions about persons intended to benefit
• 483 Exclusion of credit union group life policies

When chargeable events occur: general

• 484 When chargeable events occur
• 485 Disregard of certain events in relation to qualifying policies
• 486 Exclusion of maturity of capital redemption policies in certain circumstances
• 487 Disregard of certain assignments
• 488 Disregard of some events after alterations of life insurance policy terms
• 489 Conditions applicable to alterations of life insurance policy terms
• 490 Last payment under guaranteed income bonds etc treated as total surrender

Calculating gains: general

• 491 Calculating gains: general rules
• 492 The total benefit value of a policy or contract
• 493 The value of a policy or contract
• 494 The total allowable deductions for a policy or contract
• 495 Disregard of certain amounts in calculating gains under section 491
• 496 Modification of section 494: qualifying endowment policies held as security for company debts
• 497 Disregard of trivial inducement benefits

Part surrenders and assignments: periodic calculations and excess events

• 498 Requirement for periodic calculations in part surrender or assignment cases
• 499 Meaning of “insurance year” and “final insurance year”
• 500 Events treated as part surrenders
• 501 Part surrenders: loans
• 502 Exception from section 501 for loans to buy life annuities
• 503 Exception from section 501 for certain loans under qualifying policies
• 504 Part surrenders: payments under guaranteed income bonds etc
• 505 Assignments etc involving co-ownership
• 506 Assignments occurring when there is a co-ownership transaction
• 507 Method for making periodic calculations under section 498
• 508 The value of rights partially surrendered or assigned
• 509 Chargeable events in certain cases where periodic calculations show gains

Transaction-related calculations and part surrender or assignment events

• 510 Requirement for transaction-related calculations in certain part surrender and assignment cases
• 511 Method for making transaction-related calculations under section 510
• 512 Available premium left for relevant transaction
• 513 Special rules for part surrenders and assignments in final insurance year
• 514 Chargeable events where transaction-related calculations show gains

Personal portfolio bonds

• 515 Requirement for annual calculations in relation to personal portfolio bonds 9
• 516 Meaning of “personal portfolio bond”
• 517 Policies and contracts which are not personal portfolio bonds
• 518 The index categories
• 519 The index selection conditions
• 520 The property categories
• 521 The property selection conditions
• 522 Method for making annual calculations under section 515
• 523 The total amount of personal portfolio bond excesses
• 524 The total amount of part surrender gains
• 525 Chargeable events where annual calculations show gains
• 526 Power to make regulations about personal portfolio bonds

Reductions from gains

• 527 Reduction for sums taken into account otherwise than under Chapter 9
• 528 Reduction in amount charged: non-UK resident policy holders
• 529 Exceptions to section 528

Income tax treated as paid and reliefs

• 530 Income tax treated as paid etc
• 531 Exceptions to section 530
• 532 Relief for policies and contracts with European Economic Area insurers
• 533 Meaning of “comparable EEA tax charge”
• 534 Regulations providing for relief in other cases where foreign tax chargeable
• 535 Top slicing relief
• 536 Top slicing relieved liability: one chargeable event
• 537 Top slicing relieved liability: two or more chargeable events
• 538 Recovery of tax from trustees

Deficiencies

• 539 Relief for deficiencies
• 540 When deficiencies arise: events following calculation events
• 541 Calculation of deficiencies

Supplementary

• 542 Replacement of qualifying policies
• 543 Issue time of qualifying policy replacing foreign policy
• 544 Application of Chapter to policies and contracts in which companies interested
• 545 Minor definitions
• 546 Table of provisions subject to special rules for older policies and contracts
• 547 Charge to tax under Chapter 10
• 548 Income charged
• 549 Person liable
• 550 Income tax treated as paid
• 551 Charge to tax on profits from disposal of deposit rights
• 552 Meaning of “deposit rights”
• 553 Income charged
• 554 Person liable

Charge to tax under Chapter 12

• 555 Charge to tax under Chapter 12
• 556 Income charged
• 557 Person liable
• 558 Meaning of “future”, “option” etc

When disposals involve guaranteed returns

• 559 When disposals involve guaranteed returns
• 560 Production of guaranteed returns
• 561 The return from one or more disposals

When disposals of futures and options occur

• 562 When disposals of futures and options occur: general
• 563 Timing of certain grants of options where related disposals occur later
• 564 Deemed disposal where futures run to delivery or options are exercised
• 565 Interpretation of section 564
• 566 When transactions are related

Losses

• 567 Losses

Trustees

• 568 Special rule for certain income of trustees

Transfer of assets abroad

• 569 Anti-avoidance: transfer of assets abroad
• 570 Charge to tax under Chapter 13
• 571 Meaning of “foreign holdings” etc
• 572 Income charged
• 573 Person liable

Part 5 Miscellaneous Income

• 574 Overview of Part 5
• 575 Provisions which must be given priority over Part 5
• 576 Priority between Chapters within Part 5
• 577 Territorial scope of Part 5 charges

Introduction

• 578 Contents of Chapter

Charge to tax on non-trading income from intellectual property

• 579 Charge to tax on royalties and other income from intellectual property
• 580 Income charged under section 579
• 581 Person liable for tax under section 579
• 582 Deductions in calculating certain income charged under section 579

Disposals of know-how

• 583 Charge to tax on income from disposals of know-how
• 584 Exceptions to charge under section 583
• 585 Income charged under section 583
• 586 Person liable for tax under section 583

Sales of patent rights

• 587 Charge to tax on income from sales of patent rights
• 588 Income charged under section 587
• 589 Person liable for tax under section 587
• 590 UK resident sellers: spreading rules
• 591 Non-UK resident sellers: election for spreading
• 592 Further provision about elections for spreading: instalments
• 593 Death of seller
• 594 Winding up of a body corporate
• 595 Deduction of tax from payments to non-UK residents
• 596 Adjustments where tax has been deducted
• 597 Licences connected with patents
• 598 Rights to acquire future patent rights
• 599 Sums paid for Crown use etc treated as paid under licence

Relief from income tax on patent income

• 600 Relief for expenses: patent income
• 601 How relief is given under section 600

Payments received after deduction of tax

• 602 Payments received after deduction of tax

Supplementary

• 603 Contributions to expenditure
• 604 Contributions not made by public bodies nor eligible for tax relief
• 605 Exchanges
• 606 Apportionment where property sold together
• 607 Questions about apportionments affecting two or more persons
• 608 Meaning of “capital sums” etc
• 609 Charge to tax on films and sound recordings businesses
• 610 Income charged
• 611 Person liable
• 612 Calculation of income
• 613 Application of trading income rules to non-trade businesses
• 614 Charge to tax on certain telecommunication rights of a non-trader
• 615 Income charged
• 616 Person liable
• 617 Deductions in calculating certain income charged
• 618 Payments received after deduction of tax

Charge to tax under Chapter 5

• 619 Charge to tax under Chapter 5
• 620 Meaning of “settlement” and “settlor”

Income charged and person liable

• 621 Income charged
• 622 Person liable

Rules for calculating income

• 623 Calculation of income

Income treated as income of settlor: retained interests

• 624 Income where settlor retains an interest
• 625 Settlor's retained interest
• 626 Exception for outright gifts between spouses
• 627 Exceptions for certain types of income
• 628 Exception for gifts to charities

Income treated as income of settlor: unmarried children

• 629 Income paid to unmarried minor children of settlor
• 630 Exception for gifts to charities
• 631 Retained and accumulated income
• 632 Offshore income gains

Capital sums treated as income of settlor: trustees' payments

• 633 Capital sums paid to settlor by trustees of settlement
• 634 Meaning of “capital sum” and “sums paid to settlor”
• 635 Amount of available income
• 636 Calculation of undistributed income
• 637 Qualifications to section 636

Trustees' payments: further provisions

• 638 Capital sums paid by way of loan or repayment of loan
• 639 Loans to participators in close companies
• 640 Grossing-up of deemed income

Capital sums treated as income of settlor: connected bodies

• 641 Capital sums paid to settlor by body connected with settlement
• 642 Exception for certain loans or repayments of loans
• 643 Interpretation of sections 641 and 642

Settlements by two or more settlors

• 644 Application to settlements by two or more settlors
• 645 Property or income originating from settlor

Other supplementary provisions

• 646 Adjustments between settlor and trustees etc
• 647 Power to obtain information
• 648 Income arising under a settlement

Charge to tax on estate income

• 649 Charge to tax on estate income
• 650 Absolute, limited and discretionary interests
• 651 Meaning of “UK estate” and “foreign estate”

Types of estate income

• 652 Estate income: absolute interests in residue
• 653 Meaning of “the administration period” and “the final tax year”
• 654 Estate income: limited interests in residue
• 655 Estate income: discretionary interests in residue

Income charged and person liable

• 656 Income charged: UK estates
• 657 Income charged: foreign estates
• 658 Special rules for foreign income
• 659 Person liable

Basic amount of estate income: general calculation rules

• 660 Basic amount of estate income: absolute interests
• 661 Basic amount of estate income: limited interests
• 662 Basic amount of estate income: discretionary interests
• 663 The applicable rate for grossing up basic amounts of estate income
• 664 The aggregate income of the estate

Further provisions for calculating estate income relating to absolute interests

• 665 Assumed income entitlement
• 666 The residuary income of the estate
• 667 Shares of residuary income of estate
• 668 Reduction in share of residuary income of estate
• 669 Reduction in residuary income: inheritance tax on accrued income
• 670 Applicable rate for determining assumed income entitlement (UK estates)

Special rules for successive interests

• 671 Successive absolute interests
• 672 Successive interests: assumed income entitlement of holder of absolute interest following limited interest
• 673 Successive interests: payments in respect of limited interests followed by absolute interests
• 674 Successive interests: holders of limited interests
• 675 Basic amount of estate income: successive limited interests
• 676 Apportionments

Relief where foreign estates have borne UK income tax

• 677 Relief where UK income tax borne by foreign estate: absolute interests
• 678 Relief where UK income tax borne by foreign estate: limited and discretionary interests

General

• 679 Income from which basic amounts are treated as paid
• 680 Income treated as bearing income tax
• 681 Transfers of assets etc treated as payments
• 682 Assessments, adjustments and claims after the administration period
• 683 Charge to tax on annual payments not otherwise charged
• 684 Income charged
• 685 Person liable
• 686 Payments received after deduction of tax
• 687 Charge to tax on income not otherwise charged
• 688 Income charged
• 689 Person liable

Part 6 Exempt Income

• 690 Overview of Part 6
• 691 National Savings Bank ordinary account interest
• 692 Income from savings certificates
• 693 Income from Ulster Savings Certificates
• 694 Income from individual investment plans
• 695 Investment plans
• 696 Plan managers
• 697 Special requirements for certain foreign managers
• 698 Requirements for discharge of foreign institution's duties
• 699 Non-entitlement to exemption
• 700 Information
• 701 General and supplementary powers
• 702 Interest under certified SAYE savings arrangements
• 703 Meaning of “certified SAYE savings arrangement”
• 704 Types of arrangements and providers
• 705 Certification of arrangements
• 706 Withdrawal and variation of certifications and connected requirements
• 707 Authorisation of providers
• 708 Withdrawal and variation of authorisations
• 709 Venture capital trust dividends
• 710 Treatment of shares where annual acquisition limit exceeded
• 711 Identification of shares after disposals
• 712 Identification of shares after reorganisations etc
• 713 Introduction: securities free of tax to residents abroad (“FOTRA securities”)
• 714 Exemption of profits from FOTRA securities
• 715 Interest from FOTRA securities held on trust
• 716 Restriction on deductions etc relating to FOTRA securities

Partial exemption for purchased life annuity payments

• 717 Exemption for part of purchased life annuity payments
• 718 Excluded annuities
• 719 Extent of exemption under section 717
• 720 Exempt proportion: term dependent solely on duration of life
• 721 Exempt sum: term dependent solely on duration of life
• 722 Consideration for the grant of annuities
• 723 Determinations
• 724 Regulations

Immediate needs annuities

• 725 Annual payments under immediate needs annuities
• 726 Meaning of “care provider”

Certain annual payments by individuals

• 727 Certain annual payments by individuals
• 728 Commercial payments
• 729 Payments for non-taxable consideration
• 730 Foreign maintenance payments

Periodical payments of personal injury damages etc

• 731 Periodical payments of personal injury damages
• 732 Compensation awards
• 733 Persons entitled to exemptions for personal injury payments etc
• 734 Payments from trusts for injured persons

Health and employment insurance payments

• 735 Health and employment insurance payments
• 736 Health and employment risks and benefits
• 737 Period for which payments may be made
• 738 Risk of significant loss
• 739 Conditions to be met by policies also providing other benefits
• 740 Conditions to be met where policies are linked
• 741 Aggregation of policies where employment ends for health reasons
• 742 Meaning of “the insured”
• 743 Policies for the benefit of others who contribute to premiums

Payments to adopters

• 744 Payments to adopters: England and Wales
• 745 Payments to adopters: Scotland
• 746 Payments to adopters: Northern Ireland
• 747 Power to amend sections 744 to 746

Payments by persons liable to pool betting duty

• 748 Payments by persons liable to pool betting duty

Interest only income

• 749 Interest paid under repayment supplements
• 750 Interest from tax reserve certificates
• 751 Interest on damages for personal injury
• 752 Interest under employees' share schemes
• 753 Interest on repayment of student loan
• 754 Redemption of funding bonds
• 755 Interest on foreign currency securities etc owned by non-UK residents
• 756 Which securities and loans are foreign currency ones for section 755

Interest and royalty payments

• 757 Interest and royalty payments: introduction
• 758 Exemption for certain interest and royalty payments
• 759 The person making the payment
• 760 The person beneficially entitled to the payment
• 761 Meaning of “25% associates”
• 762 Interest payments: exemption notices
• 763 Special relationships
• 764 Application of ICTA provisions about special relationships
• 765 Anti-avoidance
• 766 Interest and royalty payments: interpretation
• 767 Power to amend references to the Directive by order

Income from commercial occupation of woodlands

• 768 Commercial occupation of woodlands

Housing grants

• 769 Housing grants

Approved share incentive plan distributions

• 770 Amounts applied by SIP trustees acquiring dividend shares or retained for reinvestment

Foreign income of consular officers and employees

• 771 Relevant foreign income of consular officers and employees
• 772 Further provisions about Orders under section 771

Income of non-UK residents from certain securities

• 773 Income from Inter-American Development Bank securities
• 774 Income from securities issued by designated international organisations

Other

• 775 Income towards reducing the national debt
• 776 Scholarship income
• 777 VAT repayment supplements
• 778 Incentives to use electronic communications
• 779 Gains on commodity and financial futures
• 780 Disabled person's vehicle maintenance grant
• 781 Payments under New Deal 50plus
• 782 Payments under employment zone programme
• 783 General disregard of exempt income for income tax purposes

Part 7 Income Charged under this Act: Rent-a-Room and Foster-Care Relief

Introduction

• 784 Overview of Chapter 1
• 785 Person who qualifies for relief

Basic definitions

• 786 Meaning of “rent-a-room receipts”
• 787 Meaning of “residence”
• 788 Meaning of “total rent-a-room amount”

Individual's limit

• 789 The individual's limit
• 790 Exclusive receipts condition

Relief if amount does not exceed limit

• 791 Full rent-a-room relief: introduction
• 792 Full rent-a-room relief: trading income
• 793 Full rent-a-room relief: property income
• 794 Full rent-a-room relief: income chargeable under Chapter 8 of Part 5

Alternative calculation of profits if amount exceeds limit

• 795 Alternative calculation of profits: introduction
• 796 Alternative calculation of profits: trading income
• 797 Alternative calculation of profits: property income
• 798 Alternative calculation of profits: income chargeable under Chapter 8 of Part 5

Elections

• 799 Election not to apply full relief
• 800 Election for alternative method of calculating profits
• 801 Time limit on adjustment of assessment

Interpretation

• 802 Minor definitions

Introduction

• 803 Overview of Chapter 2
• 804 Person who qualifies for relief

Basic definitions

• 805 Meaning of “foster-care receipts”
• 806 Meaning of providing foster care
• 807 Calculation of “total foster-care receipts”

Individual's limit

• 808 The individual's limit
• 809 Share of fixed amount: residence used by more than one foster carer
• 810 Share of fixed amount: income period not a year
• 811 The amount per child

Relief if amount does not exceed limit

• 812 Full foster-care relief: introduction
• 813 Full foster-care relief: trading income
• 814 Full foster-care relief: income chargeable under Chapter 8 of Part 5

Alternative calculation of profits if amount exceeds limit

• 815 Alternative calculation of profits: introduction
• 816 Alternative calculation of profits: trading income
• 817 Alternative calculation of profits: income chargeable under Chapter 8 of Part 5
• 818 Election for alternative method of calculating profits
• 819 Adjustment of assessment

Periods of account not ending on 5th April

• 820 Periods of account not ending on 5th April
• 821 Meaning of “relevant limit”
• 822 Full relief
• 823 Alternative method of calculating profits

Capital allowances for foster carers carrying on trade

• 824 Capital allowances: introduction
• 825 Carried forward unrelieved qualifying expenditure
• 826 Excluded capital expenditure
• 827 Excluded capital expenditure: subsequent treatment of asset

Overlap profit

• 828 Overlap profit

Part 8 Foreign Income: Special Rules

• 829 Overview of Part 8
• 830 Meaning of “relevant foreign income”

Remittance basis

• 831 Claims for relevant foreign income to be charged on the remittance basis
• 832 Relevant foreign income charged on the remittance basis
• 833 Income treated as remitted: repayment of UK-linked debts
• 834 Arrangements treated as repayment of UK-linked debts

Relief for delayed remittances

• 835 Relief for delayed remittances
• 836 Relief for delayed remittances: backdated pensions
• 837 Claims for relief on delayed remittances
• 838 Expenses attributable to collection or payment of relevant foreign income
• 839 Annual payments payable out of relevant foreign income
• 840 Relief for backdated pensions charged on the arising basis
• 841 Unremittable income: introduction
• 842 Claim for relief for unremittable income
• 843 Withdrawal of relief
• 844 Income charged on withdrawal of relief after source ceases
• 845 Valuing unremittable income

Part 9 Partnerships

Introduction

• 846 Overview of Part 9
• 847 General provisions
• 848 Assessment of partnerships

Calculation of partners' shares

• 849 Calculation of firm's profits or losses
• 850 Allocation of firm's profits or losses between partners
• 851 Calculations etc where firm has other income or losses

Firms with trading income

• 852 Carrying on by partner of notional trade
• 853 Basis periods for partners' notional trades

Firms with trading and other source income

• 854 Carrying on by partner of notional business
• 855 Basis periods for partners' notional businesses
• 856 Overlap profits from partners' notional businesses

Firms with a foreign element

• 857 Partners to whom the remittance basis may apply
• 858 Resident partners and double taxation agreements

Miscellaneous

• 859 Special provisions about farming and property income
• 860 Adjustment income
• 861 Sale of patent rights: effect of partnership changes
• 862 Sale of patent rights: effect of later cessation of trade
• 863 Limited liability partnerships

Part 10 General Provisions

• 864 Overview of Part 10

Unpaid remuneration

• 865 Unpaid remuneration: non-trades and non-property businesses

Employee benefit contributions

• 866 Employee benefit contributions: non-trades and non-property businesses

Business entertainment and gifts

• 867 Business entertainment and gifts: non-trades and non-property businesses

Social security contributions

• 868 Social security contributions: non-trades etc

Penalties, interest and VAT surcharges

• 869 Penalties, interest and VAT surcharges: non-trades etc

Crime-related payments

• 870 Crime-related payments: non-trades and non-property businesses

Apportionment of profits

• 871 Apportionment etc of miscellaneous profits to tax year

Calculation of losses

• 872 Losses calculated on same basis as miscellaneous income

Orders and regulations

• 873 Orders and regulations made by Treasury or Board

Interpretation

• 874 Activities in UK sector of continental shelf
• 875 Meaning of “caravan”
• 876 Meaning of “farming” and related expressions
• 877 Meaning of grossing up
• 878 Other definitions
• 879 Interpretation: Scotland
• 880 Interpretation: Northern Ireland

General and final

• 881 Disapplication of corporation tax: section 9 of ICTA
• 882 Consequential amendments
• 883 Commencement and transitional provisions etc
• 884 Repeals and revocations
• 885 Abbreviations and general index in Schedule 4
• 886 Short title

SCHEDULE 1 Consequential Amendments

• Part 1 Income and Corporation Taxes Act 1988
• Part 2 Other Enactments

SCHEDULE 2 Transitionals and Savings etc

• Part 1 General Provisions
• Part 2 Changes in the Law
• Part 3 Trading Income
• Part 4 Property Income
• Part 5 Savings and Investment Income: General
• Part 6 Savings and Investment Income: Insurance Contracts and Policies made before Certain Dates
• Part 7 Savings and Investment Income: Gains from Contracts for Life Insurance etc (Personal Portfolio Bonds)
• Part 8 Miscellaneous Income
• Part 9 Exempt Income
• Part 10 Foster-Care Relief
• Part 11 Foreign Income: Special Rules
• Part 12 Other Provisions
• SCHEDULE 3 Repeals and Revocations

SCHEDULE 4 Abbreviations and Defined Expressions

• Part 1 Abbreviations of Acts
• Part 2 Index of Expressions Defined in this Act etc