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

(The document as of February, 2008)

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54 The repeal by this Act of paragraphs 2, 6 and 10 of Schedule 20 to FA 1994 (changes for facilitating self-assessment: transitional provisions and savings) does not affect the continuing application of the assumptions mentioned in paragraph 11(4) of that Schedule (double taxation relief).

Averaging profits of farmers and creative artists

55 (1) The first tax years which may be the subject of an averaging claim under section 222 are the tax years 2004-05 and 2005-06.

(2) If--

(a) an individual carries on a trade of farming or market gardening in the United Kingdom in partnership, and

(b) but for the repeal by this Act of section 96 of ICTA the individual could have made a claim under that section in relation to the profits of that trade for the tax years 2004-05 and 2005-06,

the individual may make an averaging claim under section 222 of this Act in relation to those profits for those tax years (despite anything in Chapter 16 of Part 2 of this Act to the contrary).

Adjustment on change of basis

56 (1) Chapter 17 of Part 2 applies to a change of basis taking effect for a period of account which ends on or after 6th April 2005.

(2) For this purpose the period of account for which a change of basis takes effect is the first period of account for which the new basis is adopted.

57 (1) Subject to sub-paragraph (3), section 232 applies before 6th April 2006 with the following amendment.

(2) In subsection (4)--

(a) before paragraph (a) insert--

" (aa) relevant earnings within section 623(2)(c) or 644(2)(c) of ICTA, or " ,

(b) omit paragraph (b) and the word "or" before it, and

(3) The power of the Treasury to make an order under section 281 or 283 of FA 2004 has effect as if Schedule 35 to that Act contained an amendment substituting section 232(4) of this Act for that subsection as amended by sub-paragraph (2) above.

58 If--

(a) an individual has made an election under paragraph 12 of Schedule 22 to FA 2002 (election by barrister or advocate to accelerate adjustment charge),

(b) as a result of the election sub-paragraph (4) of that paragraph applies in relation to the tax year 2004-05, and

the election continues to apply in relation to the tax year 2005-06 and subsequent tax years (despite paragraph 3 of this Schedule).

59 Section 104(4) of ICTA (which, despite its repeal, applies in relation to any change of accounting basis occurring before 6th April 1999) does not apply if the person who would be liable to tax as a result of the change was born before 6th April 1917.

Post-cessation receipts

60 (1) Subject to sub-paragraph (4), section 256 applies before 6th April 2006 with the following amendments.

(2) In subsection (1)(b)--

(a) after "from the trade was" insert "relevant earnings within section 623(2)(c) or 644(2)(c) of ICTA or", and

(b) omit "or relevant UK earnings within section 189(2)(b) of FA 2004".

(3) In subsection (2) for "earned income or relevant UK earnings" substitute "relevant earnings or earned income".

(4) The power of the Treasury to make an order under section 281 or 283 of FA 2004 has effect as if Schedule 35 to that Act contained an amendment substituting section 256 of this Act for that section as amended by sub-paragraphs (2) and (3) above.

61 Chapter 18 of Part 2 does not apply in relation to a post-cessation receipt if--

(a) the person who would be liable to tax on the receipt was born before 6th April 1917, and

(b) the cessation of the trade occurred before 6th April 2000.

Part 4 Property income

Apportionment of profits or losses to tax years before tax year 2005-06

62 (1) This paragraph applies if--

(a) a period of account of a property business begins before 6th April 2005 and ends on or after that date, and

(b) in order to arrive at the profits or losses of a tax year before the tax year 2005-06 it is necessary to apportion the profits or losses of the period of account to any part of that period falling in a tax year before the tax year 2005-06.

(2) The profits or losses of the period of account--

(a) are calculated in accordance with Part 3 of this Act (and therefore, to that extent, that Part has effect for tax years before the tax year 2005-06), and

(b) may be apportioned in accordance with section 275 to any part of the period of account falling in a tax year before the tax year 2005-06.

Lease premiums

63 Section 277 does not apply in relation to a lease granted pursuant to a contract entered into before 4th April 1963.

Lease premiums: sums payable instead of rent

64 Section 279 does not apply in relation to a lease granted--

(a) before 6th April 1963, or

(b) pursuant to a contract entered into before 4th April 1963.

Lease premiums: sums payable for surrender of lease

65 Section 280 does not apply in relation to a lease granted--

(a) before 6th April 1963, or

(b) pursuant to a contract entered into before 4th April 1963.

Lease premiums: assignments for profit of lease granted at undervalue

66 Section 282 does not apply in relation to a lease granted --

(a) before 6th April 1963, or

(b) pursuant to a contract entered into before 4th April 1963.

Lease premiums: pre-commencement receipts treated as taxed receipts

67 (1) This paragraph relates to the operation of sections 287 to 298 where, in respect of a lease--

(a) there is a receipt of a Schedule A business or an overseas property business (within the meaning of section 65A(4) or 70A(4) of ICTA) as a result of section 34 or 35 of ICTA (treatment of premiums etc. as rent and assignments for profit of lease granted at an undervalue) for a tax year before the tax year 2005-06 or an accounting period ending before 6th April 2005, or

(b) there would be such a receipt, but for the operation of section 37(2) or (3) of ICTA (reductions in certain receipts under section 34 or 35 of ICTA).

In this paragraph and paragraphs 68 and 69 such a receipt is referred to as a "pre-commencement receipt".

(2) For the purposes of Chapter 4 of Part 3--

(a) the lease is treated as a taxed lease, and

(b) the pre-commencement receipt is treated as a taxed receipt.

(3) For the purposes of that Chapter, the "receipt period" of a taxed receipt which is a pre-commencement receipt is--

(a) in the case of a pre-commencement receipt as a result of section 34 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease, and

(b) in the case of a pre-commencement receipt as a result of section 35 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease remaining at the date of the assignment.

(4) For the purposes of that Chapter the "unreduced amount" of a taxed receipt which is a pre-commencement receipt is the amount of the pre-commencement receipt as a result of section 34 or 35 of ICTA, before the operation of section 37(2) or (3) of ICTA.

(5) Sub-paragraph (6) applies to a taxed receipt which is a pre-commencement receipt arising as a result of section 34(2) of ICTA (obligation on tenant to carry out work under lease).

(6) If the obligation to carry out work included the carrying out of work which gave or will give rise to expenditure for which an allowance has been, or may be, made under the enactments relating to capital allowances, the unreduced amount of the taxed receipt is calculated as if the obligation had not included the carrying out of that work.

Lease premiums: taking account of reductions in pre-commencement receipts

68 (1) This paragraph applies if--

(a) in calculating the amount of a pre-commencement receipt, there is a reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest for the purposes of that section, and

(b) as a result of paragraph 67 the amount chargeable on the superior interest is the taxed receipt for the purposes of Chapter 4 of Part 3.

(2) References to a reduction under section 37(2) or (3) of ICTA in a pre-commencement receipt by reference to the amount chargeable on the superior interest are to the difference between--

(a) the amount of the pre-commencement receipt before the operation of section 37(2) or (3) of ICTA, and

(b) the amount of the receipt after the operation of that subsection,

so far as attributable to the amount chargeable on the superior interest for the purposes of section 37 of ICTA.

(3) In sections 290(5)(a) (meaning of "unused amount") and 295(1)(a) (limit on reductions and deductions) references to reductions under section 288 by reference to the taxed receipt include references to reductions under section 37(2) or (3) of ICTA in pre-commencement receipts by reference to the amount chargeable on the superior interest.

(4) Sections 292 to 294 apply as follows--

(a) the pre-commencement receipt is treated as if it were a lease premium receipt for the purposes of sections 293 and 294,

(b) references in those sections to the reduction under section 288 by reference to the taxed receipt are, in relation to the pre-commencement receipt, to the reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest, and

(i) in the case of a pre-commencement receipt as a result of section 34 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease, and

(ii) in the case of a pre-commencement receipt as a result of section 35 of ICTA, the period treated in calculating the amount of the receipt as being the duration of the lease remaining at the date of the assignment.

Lease premiums: taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA

69 (1) Sub-paragraph (2) applies if--

(a) in calculating the profits of a trade, profession or vocation for a tax year before the tax year 2005-06 or an accounting period ending before 6th April 2005, a person is treated as paying rent under section 87(2) of ICTA by reference to the amount chargeable for the purposes of that section, and

(b) as a result of paragraph 67 the amount chargeable is the taxed receipt for the purposes of Chapter 4 of Part 3.

(2) References in sections 290(5)(b) and 295(2)(b) to the deductions allowed for expenses under section 61 by reference to the taxed receipt include references to the deductions allowed in calculating the profits of the trade, profession or vocation for the rent that the person is treated as paying under section 87(2) of ICTA by reference to the amount chargeable.

(3) Sub-paragraph (4) applies if--

(a) in calculating the profits of a Schedule A business or an overseas property business (within the meaning of section 65A(4) or 70A(4) of ICTA) for a tax year before the tax year 2005-06 or an accounting period ending before 6th April 2005, a person is treated as paying rent as a result of section 37(4) of ICTA by reference to the amount chargeable on the superior interest for the purposes of that section, and

(b) as a result of paragraph 67 the amount chargeable on the superior interest is the taxed receipt for the purposes of Chapter 4 of Part 3.

(4) References in sections 290(5)(c) and 295(1)(b) to the deductions allowed for expenses under section 292 by reference to the taxed receipt include references to the deductions allowed in calculating the profits of the Schedule A business or overseas property business (within the meaning of section 65A(4) or 70A(4) of ICTA) for the rent that the person is treated as paying as a result of section 37(4) of ICTA by reference to the amount chargeable on the superior interest.

Lease premiums: rules for determining effective duration of lease

70 (1) In relation to a lease granted after 12th June 1969 and before 25th August 1971, for sections 303 and 304 substitute--

" 303 Rules for determining effective duration of lease

(1) The following rules apply for determining the effective duration of a lease for the purposes of this Chapter.

Rule 1: Where the terms of a lease include provision for the determination of the lease by notice given by the landlord, the lease is not to be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice so given.

Rule 2: A lease is not to be treated as having been granted for a term longer than one ending on a date before the end of the term for which the lease was granted, if the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond that date.

Rule 3: Where the terms of the lease include provision for the extension of the lease beyond a given date by notice given by the tenant, account may be taken of any circumstances making it likely that the lease will be so extended.

(2) Rule 2 applies by reference to the facts known or ascertainable at the time of the grant of the lease.

(3) In applying the rules, it is assumed that all parties concerned, whatever their relationship, act as if they were at arm's length.

(4) In this section, in relation to Scotland, "term", where referring to the duration of a lease, means period. "

(2) This paragraph does not apply if the determination is for the purposes of section 281 (sums payable for variation or waiver of term of lease).

71 (1) In relation to a lease granted before 13th June 1969, for sections 303 to 305 substitute--

" 303 Rules for determining effective duration of lease

(1) The following rules apply for determining the effective duration of a lease for the purposes of this Chapter.

Rule 1: Where the effective duration of a lease is being determined after the date on which the lease has for any reason come to an end, the duration is taken to have extended from its commencement to that date.

Rule 2: Where the terms of the lease include provision for the determination of the lease by notice given either by the landlord or by the tenant, the lease is not to be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice.

Rule 3: A lease is not to be treated as having been granted for a term longer than one ending on a date before the end of the term for which the lease was granted, if the terms of the lease or any other circumstances make it unlikely that the lease will continue beyond that date.

(2) Rules 2 and 3 are subject to rule 1.

(3) Rules 2 and 3 apply in accordance with circumstances prevailing at the time of the determination.

(4) In this section, in relation to Scotland, "term", where referring to the duration of a lease, means period. "

(2) This paragraph does not apply if the determination is for the purposes of section 281 (sums payable for variation or waiver of term of lease).

Reverse premiums

72 (1) Section 311 does not apply to a reverse premium--

(a) which was received before 9th March 1999, or

(b) to which the recipient was entitled immediately before that date.

(2) In determining whether a reverse premium was one to which the recipient was entitled immediately before 9th March 1999, no account is to be taken of any arrangements made on or after that date.

Deductions for expenditure on energy-saving items

73 Sections 312 to 314 do not apply to expenditure incurred before 6th April 2004.

Commercial letting of furnished holiday accommodation

74 (1) Subject to sub-paragraph (4), Chapter 6 of Part 3 applies before 6th April 2006 with the following amendments.

(2) In section 322(2)--

(a) after paragraph (b) insert--

" (ba) section 623(2)(c) or 644(2)(c) of ICTA (income regarded as relevant earnings for pension purposes: see section 504A of that Act), " ,

(b) at the end of paragraph (d) insert "and", and

(3) In section 328(2)--

(a) before paragraph (a) insert--

" (aa) income regarded as relevant earnings for pension purposes under section 623(2)(c) or 644(2)(c) of ICTA, or " , and

(b) omit paragraph (b) and the word "or" before it.

(4) The power of the Treasury to make an order under section 281 or 283 of FA 2004 has effect as if Schedule 35 to that Act contained amendments substituting sections 322(2) and 328(2) of this Act for those subsections as amended by sub-paragraphs (2) and (3) above.

75 (1) Subject to sub-paragraph (3), section 504A of ICTA (as inserted by Schedule 1 to this Act) applies before 6th April 2006 with the following amendment.

(2) In subsection (2)--

(a) after paragraph (a) insert--

" (ab) section 623(2)(c) or 644(2)(c) (income regarded as relevant earnings for pension purposes), and " , and

(b) omit paragraph (c) and the word "and" before it.

(3) The power of the Treasury to make an order under section 281 or 283 of FA 2004 has effect as if Schedule 35 to that Act contained an amendment substituting section 504A of ICTA (as inserted by Schedule 1 to this Act) for that section as amended by sub-paragraph (2) above.

Adjustment on change of basis

76 (1) Chapter 7 of Part 3 applies to a change of basis taking effect for a period of account which ends on or after 6th April 2005.

(2) For this purpose the period of account for which a change of basis takes effect is the first period of account for which the new basis is adopted.

Meaning of "mineral royalties"

77 The definition of "mineral royalties" in section 341(2) does not include any rent receivable before 6th April 1970.

Part 5 Savings and investment income: general

Open-ended investment companies: saving for powers to make provision corresponding to provisions applicable to unit trusts

78 (1) Despite the enactment by this Act in the OEIC sections of provisions previously contained in regulations made under section 152 of FA 1995, the Treasury may continue to make regulations under that section for achieving any purpose that could be achieved by such regulations before the coming into force of the OEIC sections.

(2) Accordingly--

(a) regulations under that section may make provision for securing, in relation to the matters mentioned in subsection (1)(a) to (c) of that section, that the provision made by the OEIC sections corresponds, subject to such modifications as the Treasury consider appropriate, to the provision made by the enactments mentioned in subsection (2) of that section in relation to--

(i) unit trusts,

(ii) rights under, and the assets subject to, such trusts, and

(iii) transactions for purposes connected with such trusts, and

(b) that section has effect with such modifications as are required for the purposes of this paragraph.

(3) In this paragraph--

"the OEIC sections" means--
(a)
sections 373 to 375 of this Act (under which certain amounts are treated as interest paid by open-ended investment companies), and
(b)
sections 386 to 388 of this Act (under which certain amounts are treated as dividends paid by open-ended investment companies), and
"unit trust" has the same meaning as in section 152 of FA 1995 (see subsection (7)).

Deeply discounted securities issued in accordance with qualifying earn-out right

79 Despite the repeal by this Act of section 104(4) of FA 2002, sections 430(5) and 442 (securities issued in accordance with qualifying earn-out right) apply whenever the security was issued.

Deeply discounted securities: deemed transfers of strips on 5th April

80 (1) Despite the repeal by this Act of paragraph 14(4) of Schedule 13 to FA 1996, a person who was deemed under that paragraph to have transferred a strip on 5th April 2005 is treated for the purposes of Chapter 8 of Part 4 (profits from deeply discounted securities) as if the person had re-acquired the strip under that paragraph on 6th April 2005 for an amount equal to the amount for which it was deemed to have been transferred.

(2) That Chapter and this Part of this Schedule apply to a deemed transfer and reacquisition under that paragraph (including a reacquisition within sub-paragraph (1)) as if it were a transfer and reacquisition under section 445(2) and (3).

(3) Section 452 (power to modify that Chapter for strips) applies as if this paragraph were in that Chapter.

Deeply discounted securities: restriction of profits and losses on strips

81 (1) Sections 447 and 448 (restriction of profits and losses on strips by reference to original acquisition cost) do not apply to a strip acquired before 15th January 2004.

(2) For the purposes of paragraph (1) any deemed acquisitions under paragraph 14(4) of Schedule 13 to FA 1996 or section 445(3) of this Act are ignored.

Deeply discounted securities: saving for charities' losses

82 The references in section 454(4) and (5) to trustees include any person who, had the loss been a profit--

(a) would have been eligible for relief from tax for the tax year in which the loss is sustained as a result of section 505(1) of ICTA (exemption from income tax for certain income forming part of the income of a charity), or

(b) would have been so eligible but for section 505(3) of that Act (income that is not exempt in some circumstances for charities incurring non-qualifying expenditure).

Deeply discounted securities: saving for pension trustees' losses

83 The references in section 454(4) and (5) to trustees include any person who, had the loss been a profit, would have been eligible for relief from tax for the tax year in which the loss is sustained as a result of--

(a) section 592(2) of ICTA (exemption from income tax for income from investments or deposit held for exempt approved pension schemes),

(b) section 608(2)(a) of ICTA (corresponding exemption for superannuation funds approved before 6th April 1980),

(d) section 614(2), (3), (4) or (5) of ICTA (corresponding exemption for certain overseas pension funds),

(e) section 620(6) of ICTA (corresponding exemption for retirement annuity funds), or

(f) section 643(2) of ICTA (corresponding exemption for approved personal pension schemes).

Exclusion of deeply discounted securities from section 711 to 728 of ICTA (accrued income profits)

84 Securities only fall within paragraph (f) of section 710(3) of ICTA (meaning of "securities" for purposes of sections 711 to 728), as substituted by Schedule 1 to this Act, if the disposal of the securities on or after 6th April 2005 would be a disposal of deeply discounted securities for the purposes of Chapter 8 of Part 4 of this Act.

Gains from contracts for life insurance etc: foreign policies of life insurance

85 (1) This paragraph modifies the application of--

(a) section 474(4) (foreign policies of life insurance which are not qualifying policies),

(b) section 531(6) (foreign policies of life insurance to which section 530 applies), and

in relation to a policy of life insurance which meets conditions A and B.

(2) Condition A is that the policy is a foreign policy of life insurance by virtue of paragraph (a) of the definition of that term in section 476(3).

(3) Condition B is that the income of the company which issued the policy was charged to corporation tax under section 445 of ICTA for an accounting period ending on or after the day on which the policy was issued.

(4) The policy is treated as having been a qualifying policy for any part of the chargeable period when--

(a) it would have been treated as a qualifying policy apart from section 474(4), and

(b) the conditions in either sub-paragraph (3) or sub-paragraph (4) of paragraph 24 of Schedule 15 to ICTA (as it then had effect) were met.

(5) The policy meets condition B in section 531(6) if--

(a) the conditions in either sub-paragraph (3) or sub-paragraph (4) of paragraph 24 of Schedule 15 to ICTA (as it then had effect) were met throughout the chargeable period, and

(b) the conditions in sub-paragraph (3) of that paragraph are met throughout the period--

(i) beginning immediately after the end of the chargeable period, and

(ii) ending with the date on which the gains mentioned in section 531(1) arise.

(6) Despite the definition of "policy period" in section 532(5), for the purposes of determining whether conditions A to C in that section have been met in relation to the policy or contract throughout the policy period, that period is to be taken not to include--

(a) any part of the chargeable period when the conditions in either sub-paragraph (3) or sub-paragraph (4) of paragraph 24 of Schedule 15 to ICTA (as it then had effect) were met, and

(b) any subsequent period when the conditions in sub-paragraph (3) of that paragraph are met.

(7) In this paragraph "the chargeable period" means the period--

(a) beginning with the date on which the policy was issued, and

(b) ending with the last day of the last accounting period for which the company which issued the policy was liable to tax under section 445 of ICTA.

Gains from contracts for life insurance etc: exclusion of pension policies

86 (1) Subject to sub-paragraph (4), before 6th April 2006 Chapter 9 of Part 4 applies with the following amendments.

(2) For section 479 (exclusion of pension policies) substitute--

" 479 Exclusion of pension policies

(1) This Chapter does not apply to a pension policy.

(2) In this section "pension policy" means--

(a) a policy of life insurance issued in connection with an approved scheme,

(b) a policy of insurance which is, or is evidence of, a contract for the time being approved under section 621 of ICTA (contracts to provide for surviving spouses and dependants), or

(3) In this section--

"approved scheme" has the meaning given by section 612(1) of ICTA, and
"personal pension scheme" and "approved", in relation to such a scheme, have the meaning given by section 630(1) of ICTA. "

(3) In section 486 (exclusion of maturity of capital redemption policies in certain circumstances) for "non-registered occupational pension" substitute "sponsored superannuation".

(4) The power of the Treasury to make an order under section 281 or 283 of FA 2004 has effect as if Schedule 35 to that Act contained amendments--

(a) substituting section 479 of this Act for that section as substituted by sub-paragraph (2), and

(b) substituting "non-registered occupational pension" for "sponsored superannuation" in section 486 of this Act.

Gains from contracts for life insurance etc: rights partially assigned

87 Section 505 (assignments involving co-ownership) does not have effect in relation to any transaction which--

(a) took place in relation to a policy or contract in an insurance year beginning on or before 5th April 2001, and

(b) would otherwise and by reason only of the application of that section fall to be taken into account as an assignment of a part of or a share in the rights conferred by the policy or contract in a calculation under--

(i) section 507 (periodic calculations in part surrender and assignment cases), or

(ii) section 511 (transaction-related calculations in part surrender and assignment cases).

88 (1) This paragraph applies if a calculation under section 507 or 511 in relation to a policy or contract requires account to be taken of any part of or share in the rights conferred by the policy or contract which has been assigned for money or money's worth in an insurance year beginning on or before 5th April 2001.

(2) Section 508 (the value of rights partially assigned) applies for the purposes of the valuation of each such part or share as if--

(a) in subsection (1) after "surrendered" (in both places where it occurs) there were inserted "or assigned",

(b) in that subsection after "surrender" there were inserted "or assignment", and

Gains from contracts for life insurance etc: regulations providing for relief where foreign tax chargeable

89 Regulations made under section 534 by virtue of paragraph 4 of this Schedule may apply--

(a) in relation to gains arising on or after 29th November 1994, and

(b) in relation to any gain arising before that date the income tax on which has not been the subject of an assessment that became final and conclusive before that date.

Gains from contracts for life insurance etc: pure protection group life policies

90 (1) For the purposes of Chapter 9 of Part 4, any event occurring before 9th April 2003 in relation to a policy of life insurance which, at the time of the event, was a pure protection group life policy is deemed not to be a chargeable event.

(2) For the purposes of this paragraph a policy of life insurance is at any time a pure protection group life policy if at that time it is a group life policy whose terms do not provide for any sums or other benefits to be paid or conferred except on death or disability.

Gains from contracts for life insurance etc: assessment of trustees etc

91 Despite paragraph 4(1) of this Schedule, the references in section 151(2) of FA 1989 (assessment of trustees etc.) to gains treated as arising under Chapter 9 of Part 4 of this Act do not include references to gains treated as arising under Chapter 2 of Part 13 of ICTA on chargeable events before 6th April 1998.

Transactions in deposits

92 Section 551 (charge to income tax on profits from disposal of deposit rights) does not apply if the person disposing of the rights acquired them before 7th March 1973.

93 (1) This paragraph applies if--

(a) a right falling within the definition of "uncertificated right" in section 552(2) is a right under an arrangement made on or before 16th July 1992, and

(b) the right to call for the issue of a certificate of deposit (as defined in that section) is a right under that arrangement.

(2) Chapter 11 of Part 4 (transactions in deposits) applies with the omission of section 552(1)(c) and (d)(i).

Disposals of futures and options involving guaranteed returns: certain pre-6th February 1998 transactions

94 (1) A transaction consisting in the running of a future to delivery or the exercise of an option is not treated as a disposal for the purposes of Chapter 12 of Part 4 if it took place before 6th February 1998.

(2) Sub-paragraph (1) is to be read as if it were part of section 564 (deemed disposal where futures run to delivery or options are exercised) (see, in particular, section 565).

Disposals of futures and options involving guaranteed returns: rates of tax for pension trustees

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