Income Tax Act 2007 (c. 3)

(The document as of February, 2008)

-- Back --

Page 59

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16 | P.17 | P.18 | P.19 | P.20 | P.21 | P.22 | P.23 | P.24 | P.25 | P.26 | P.27 | P.28 | P.29 | P.30 | P.31 | P.32 | P.33 | P.34 | P.35 | P.36 | P.37 | P.38 | P.39 | P.40 | P.41 | P.42 | P.43 | P.44 | P.45 | P.46 | P.47 | P.48 | P.49 | P.50 | P.51 | P.52 | P.53 | P.54 | P.55 | P.56 | P.57 | P.58 | P.59 | P.60 | P.61 | P.62 | P.63 | P.64 | P.65 | P.66 | P.67 | P.68 | P.69 | P.70

415 Omit section 98.

416 In section 142 (interpretation) at the end insert ", and "ITA 2007" means the Income Tax Act 2007".

417 In paragraph 19 of Schedule 12 (tax relief for expenditure on research and development) for sub-paragraph (2) substitute--

" (2) For the purposes of this Schedule whether a person is connected with another is determined in accordance with section 839 of the Taxes Act 1988. "

418 In paragraph 27 of Schedule 13 (tax relief for expenditure on vaccine research etc) for sub-paragraph (2) substitute--

" (2) For the purposes of this Schedule whether a person is connected with another is determined in accordance with section 839 of the Taxes Act 1988. "

419 (1) Amend Schedule 16 (community investment tax relief) as follows.

(2) In paragraph 1(1), for "An individual or company" substitute "A company".

(3) In paragraph 2--

(a) in sub-paragraph (1), for "person" substitute "company" and for "he", in both places where it occurs, and "him" substitute "it", and

(b) in sub-paragraph (2), for "person", in each place where it occurs, substitute "company".

(4) For paragraphs 4 to 7 substitute--

" Application of Chapter 2 of Part 7 of ITA 2007

4 (1) Chapter 2 of Part 7 of ITA 2007 applies for the purposes of this Schedule as it applies for the purposes of that Part.

(2) Chapter 2 of Part 7 of that Act makes provision with respect to--

(a) applications and criteria for accreditation as community development finance institutions (see section 340),

(b) the terms and conditions of accreditation (see section 341),

(d) the delegation of the Secretary of State's functions under that Chapter (see section 343).

(3) In this Schedule "accreditation period" has the meaning given by section 342(1) of ITA 2007. "

(5) In paragraph 9(5), for "person" substitute "company".

(6) For paragraph 12(2) substitute--

" (2) The CDFI must not issue tax relief certificates in respect of investments made in the CDFI in an accreditation period if the aggregate value of--

(a) those investments, and

(b) any investments to which sub-paragraph (2A) applies,

will exceed the limit for that period.

(2A) This sub-paragraph applies to investments which--

(a) have been made in the CDFI in the accreditation period, and

(b) in respect of which the CDFI has issued tax relief certificates under section 348 of ITA 2007 (which makes in relation to income tax provision corresponding to that made by this paragraph).

(2B) The limit for an accreditation period is--

(a) £10 million if the CDFI is accredited for the period as a retail community development finance institution (see section 340(8) of ITA 2007 as applied by paragraph 4), and

(b) £20 million in any other case. "

(7) In paragraph 14--

(a) in sub-paragraph (4), for "he" substitute "it" and for "his" substitute "its", and

(b) in sub-paragraph (6), for "his" substitute "its".

(8) Omit paragraph 19.

(9) In paragraph 20(1), omit paragraph (a).

(10) In paragraph 21--

(a) in sub-paragraph (2), omit "tax year or", in each place where it occurs, and

(b) in sub-paragraph (3), for "a tax year or" substitute "an".

(11) In paragraph 22(1) and (2), for "a tax year or" substitute "an" and for "that year or period" substitute "that period".

(12) In paragraph 23--

(a) in sub-paragraph (1), for "a tax year or" substitute "an" and, in paragraph (b), omit "tax year or",

(b) in sub-paragraph (2), for "a tax year or" substitute "an" and for "that year or period" substitute "that period", and

(13) In paragraph 24--

(a) in sub-paragraph (1), omit "tax year or" in both places where it occurs, and

(b) in sub-paragraph (2)--

(i) omit "tax year or" in both places where it occurs, and

(ii) in paragraph (b), omit "year or" in both places where it occurs.

(14) In paragraph 25(1), omit "is a company and".

(15) In paragraph 26--

(a) in sub-paragraph (1), omit paragraph (a),

(b) in sub-paragraph (2), omit "income or", for "a tax year or" substitute "an" and, in paragraph (b)(i), omit "year or",

(d) in sub-paragraph (5), for "a tax year or" substitute "an" and for "that year or period" substitute "that period".

(16) In paragraph 27--

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

(b) in sub-paragraph (4), omit "Where the investor is a company,".

(17) In paragraph 28(1), omit "tax year or".

(18) In paragraph 29--

(a) in sub-paragraph (2), omit "tax year or",

(b) in sub-paragraph (3), for "a tax year or" substitute "an",

(c) in sub-paragraph (5), omit "tax year or" and for "that year or period", in both places where it occurs, substitute "that period", and

(d) in sub-paragraph (6), for "a tax year or" substitute "an".

(19) In paragraph 30(1), omit "tax year or".

(20) In paragraphs 31(5), 32(1)(b), 32(3) and 34(5)(b)(ii) for "he" and "him" substitute "the investor".

(21) In paragraph 31(8), omit "tax years or".

(22) In paragraph 32--

(a) in sub-paragraph (1), omit "tax year or", and

(b) in sub-paragraph (5), omit "tax years or".

(23) In paragraph 35(1)(d)(ii), omit "if the investor is a company,".

(24) In paragraph 35(5)(a) for "his" substitute "the investor's".

(25) In paragraph 36(d)(ii), for "his" substitute "the investor".

(26) In paragraph 37(6), for "him" substitute "the investor".

(27) In paragraph 38--

(a) in sub-paragraph (1), for "him" substitute "the investor".

(b) in sub-paragraph (2), omit "tax year or",

(d) in sub-paragraph (4), for "he" substitute "the investor".

(28) Omit paragraphs 40 and 41.

(29) In paragraph 42--

(a) in sub-paragraph (1), omit "tax year or", and

(b) in sub-paragraph (2), omit paragraph (a) and the "and" immediately after it and, in paragraph (b), "if the investor is a company,".

(30) In paragraph 43(1), for "Tax Acts" substitute "Corporation Tax Acts".

(31) In paragraph 45, for "person", in both places where it occurs, substitute "company".

(32) In paragraph 46(2), for "person", in both places where it occurs, substitute "company".

(33) In paragraph 47--

(a) in sub-paragraph (1), omit "tax years or",

(b) in sub-paragraphs (3) and (4), omit "of capital gains tax or corporation tax on chargeable gains and",

(d) in sub-paragraph (7) for "that Act" substitute "the 1992 Act".

(34) In paragraph 48(2)--

(a) omit ", and for the purposes of capital gains tax or corporation tax on chargeable gains," and

(b) for "paragraph 41 he" substitute "section 151BC(1) of the 1992 Act the investor".

(35) In paragraph 49(2), for "he", in both places where it occurs, substitute "the investor".

(36) In paragraph 51(1), omit the definition of "tax year".

(37) In paragraph 52 before the entry for "associate" insert--

" Accreditation period

paragraph 4(3) "

420 (1) Amend Schedule 18 (relief for community amateur sports clubs) as follows.

(2) In paragraph 5--

(a) in sub-paragraph (3)(b) omit the words from "as it applies" to the end, and

(b) after that sub-paragraph insert--

" (4) For the purposes of this paragraph, section 25(10) of the Finance Act 1990 (gift aid) has effect as if a registered club were a charitable company. "

(3) In paragraph 9 for sub-paragraph (1) substitute--

" (1) Chapter 2 of Part 8 of ITA 2007 (gift aid) confers relief from income tax for donors to registered clubs (see section 430 of that Act). "

421 In Schedule 25 (loan relationships), omit paragraph 57.

422 (1) Amend Schedule 26 (derivative contracts) as follows.

(2) In paragraph 24 (derivative contracts for unallowable purposes: supplementary) for sub-paragraph (5) substitute--

" (5) In this paragraph "tax advantage" has the meaning given by section 840ZA of the Taxes Act 1988. "

(3) Omit paragraph 40.

(4) In paragraph 45I(3) in the definition of "the retail prices index" for "section 833(2) of the Taxes Act 1988" substitute "section 989 of ITA 2007".

(5) In paragraph 45J(10), in paragraph (b) of the definition of "securities house", for "section 349(5) and (6) of the Taxes Act 1988" substitute "section 984 of ITA 2007".

(6) For paragraph 51 substitute--

" 51 See section 980 of ITA 2007 (derivative contracts: exception from duties to deduct). "

423 Omit Schedule 33 (venture capital trusts).

Proceeds of Crime Act 2002 (c. 29)

424 In paragraph 4 of Part 2 of Schedule 10 (tax) to the Proceeds of Crime Act 2002 for the words from "sections 711" to the end substitute "Chapter 2 of Part 12 of the Income Tax Act 2007, that Part does not apply to the transfer".

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

425 The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

426 In section 1 (overview of contents of Act) omit subsection (2).

427 In section 11(3) (calculation of "net taxable earnings") for "section 380(1) of ICTA" substitute "section 128 of ITA 2007".

428 In section 24(6)(a) (limit on chargeable overseas earnings where duties of associated employment performed in UK) for "section 840 of ICTA" substitute "section 995 of ITA 2007".

429 In section 48(2) (scope of Chapter) for "subject to deduction of tax under section 555 of ICTA (payments to non-resident entertainers and sportsmen)" substitute "or transfers to which section 966(3) or (4) of ITA 2007 applies (visiting performers: duty to deduct and account for sums representing income tax)".

430 In section 69(1) (extended meaning of "control") for "section 840 of ICTA" substitute "section 995 of ITA 2007".

431 In section 178 (exception for loans where interest qualifies for tax relief)--

(a) in paragraph (a) for the words from "(general" to "MIRAS)" substitute "or section 383 of ITA 2007 (relief for interest payments)", and

(b) in paragraph (b) for "that section" substitute "section 353 of ICTA".

432 In section 180(5) (threshold for benefit of loan to be treated as earnings)--

(a) in paragraph (a) for the words from "(general" to "MIRAS)" substitute "or section 383 of ITA 2007 (relief for interest payments)", and

(b) in paragraph (b) for "that section" substitute "section 353 of ICTA".

433 In section 230(5)(a) (the approved amount for mileage allowance payments) for "section 840 of ICTA" substitute "section 995 of ITA 2007".

434 In section 329(6) (deductions from earnings not to exceed earnings) for "section 380 of ICTA" substitute "section 128 of ITA 2007".

435 In section 347(2) (payments made after leaving an employment) for "from total income" substitute "in calculating net income".

436 In section 357(2) after "section 505(1)(e) of ICTA" insert "or section 524 of ITA 2007".

437 After section 404 insert--

" 404A Amounts charged to be treated as highest part of total income

(1) A payment or other benefit which counts as a person's employment income as a result of section 403 is treated as the highest part of the person's total income.

(2) Subsection (1) has effect for all income tax purposes except the purposes of sections 535 to 537 of ITTOIA 2005 (gains from contracts for life insurance etc: top slicing relief).

(3) See section 1012 of ITA 2007 (relationship between highest part rules) for the relationship between--

(a) the rule in subsection (1), and

(b) other rules requiring particular income to be treated as the highest part of a person's total income. "

438 In section 476 (charge on occurrence of chargeable event) after subsection (5) insert--

" (5A) An amount charged under subsection (5)(a) is treated for income tax purposes as an amount of income. "

439 (1) Amend section 515 (tax advantages and charges relating to SIPs) as follows.

(2) In subsection (1)--

(a) for "provisions of ICTA relate" substitute "provision of ICTA relates", and

(b) omit paragraph (b) and the "and" immediately after it.

(3) In subsection (2)--

(a) omit the "and" immediately after paragraph (b), and

(b) after paragraph (c) insert " , and

(d) Chapter 5 of Part 9 of ITA 2007 (which provides for section 479 of that Act not to apply to income of the trustees of an approved SIP in certain circumstances) " .

(4) Omit subsection (3).

440 (1) Amend section 555 (deduction for liabilities related to former employment) as follows.

(2) In subsection (2)--

(a) for "when computing the former employee's total income" substitute "in calculating the former employee's net income", and

(b) at the end insert "(see Step 2 of the calculation in section 23 of ITA 2007)".

(3) For subsection (6) substitute--

" (6) See section 263ZA of TCGA 1992 for relief from capital gains tax where the amount of the deduction allowed under this section exceeds the remaining total income (as defined in that section). "

(4) In the sidenote for "from total income" substitute "in calculating net income".

(5) In the italic cross-heading before the section for "from total income" substitute "in calculating net income".

441 In section 609(1) after "section 273 of ICTA" insert "or section 459 of ITA 2007".

442 In section 718 (connected persons) for "Section 839 of ICTA" substitute "Section 993 of ITA 2007".

443 In section 719 (control in relation to a body corporate)--

(a) for "Section 840 of ICTA (meaning of control in relation to a body corporate)" substitute "Section 995 of ITA 2007 (meaning of "control")", and

(b) for the sidenote substitute "Meaning of "control"".

444 (1) Amend section 721 (other definitions) as follows.

(2) In subsection (1)--

(a) after the definition of "foreign employer" insert "and", and

(b) omit the words after the definition of "non-cash voucher".

(3) Omit subsection (2).

445 In Part 1 of Schedule 1 (abbreviations) in the appropriate place insert--

" ITA 2007

The Income Tax Act 2007. "

446 (1) Amend Part 2 of Schedule 1 (defined expressions) as follows.

(2) In the entry for "assignment (in the application of the Act to Scotland)", in the second column, for "section 721(2)" substitute "section 1008(1) of ITA 2007".

(3) In the entry for "basic rate", in the second column, for "section 832(1) of ICTA" substitute "section 6(2) of ITA 2007 (as applied by section 989 of that Act)".

(4) In the entry for "body of persons", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007".

(5) In the entry for "capital allowance", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007".

(6) In the entry for "child, children", in the second column, omit "section 832(5) of ICTA, and see".

(7) In the entry for "close company", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007".

(8) In the entry for "company", in the second column, for "section 832(1) of ICTA" substitute "section 992 of ITA 2007".

(9) In the entry for "connected", in the second column, for "section 839 of ICTA" substitute "section 993 of ITA 2007".

(10) In the entry for "control", in the second column, for "section 840 of ICTA" substitute "section 995 of ITA 2007".

(11) In the entry for "distribution", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007".

(12) In the entry for "generally accepted accounting practice", in the second column, for "section 832(1) of ICTA" substitute "section 997 of ITA 2007".

(13) Omit the entry for "interest".

(14) In the entry for "local authority", in the second column, for "section 842A of ICTA" substitute "section 999 of ITA 2007".

(15) After the entry for "national insurance contributions" insert--

" net income

section 23 of ITA 2007 (as applied by section 989 of that Act) "

(16) In the entry for "the normal self-assessment filing date", in the second column, for "section 721(1)" substitute "section 989 of ITA 2007".

(17) In the entry for "notice", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007".

(18) In the entry for "offshore installation", in the second column, for "section 837C of ICTA" substitute "sections 1001 and 1002 of ITA 2007".

(19) In the entry for "ordinary share capital", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007".

(20) In the entry for "personal representatives", in the second column, for "section 721(1)" substitute "section 989 of ITA 2007".

(21) In the entry for "recognised stock exchange", in the second column, for "section 841 of ICTA" substitute "section 1005 of ITA 2007".

(22) In the entry for "registered pension scheme", in the second column, for "section 832(1) of ICTA" substitute "section 150(2) of FA 2004 (as applied by section 989 of ITA 2007)".

(23) In the entry for "Schedule A business", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007".

(24) In the entry for "stepchild", in the second column, for "section 832(1) of ICTA" substitute "section 246 of the Civil Partnership Act 2004 (as applied by section 989 of ITA 2007)".

(25) In the entry for "51% subsidiary", in the second column, for "section 838(1) of ICTA" substitute "section 989 of ITA 2007".

(26) In the entry for "tax", in the second column, at the end insert "(as applied by section 989 of ITA 2007)".

(27) In the entry for "tax credit", in the second column, for "section 832(1) of ICTA" substitute "section 397(1) of ITTOIA 2005 (as applied by section 989 of ITA 2007)".

(28) In the entry for "tax year", in the second column, for "section 721(1)" substitute "section 4(2) of ITA 2007 (as applied by section 989 of that Act)".

(29) In the entry for "the tax year 2003-04 etc", in the second column, for "section 721(1)" substitute "section 4(4) of ITA 2007 (as applied by section 989 of that Act)".

(30) In the entry for "total income" for "section 835 of ICTA" substitute "section 23 of ITA 2007 (as applied by section 989 of that Act)".

(31) In the entry for "trade", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007".

(32) In the entry for "United Kingdom", in the second column, for "section 830 of ICTA" substitute "section 1013 of ITA 2007".

(33) In the entry for "UK property business", in the second column, omit "section 832(1) of ICTA and" and at the end insert "(as applied by section 989 of ITA 2007)".

447 (1) Amend Schedule 2 (approved share incentive plans) as follows.

(2) In paragraph 49(3)--

(a) in paragraph (a) for "section 840A(1)(b) of ICTA" substitute "section 991(2)(b) of ITA 2007", and

(b) in paragraph (c) for "section 840A(1)(c) of ICTA" substitute "section 991(2)(c) of ITA 2007".

(3) In paragraph 100--

(a) in the entry for "building society", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(b) in the entry for "child", in the second column, for "section 832(5) of ICTA (and see section 721(6))" substitute "section 721(6)",

(c) in the entry for "close company", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(d) in the entry for "distribution", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(e) in the entry for "notice", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(f) in the entry for "ordinary share capital", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(g) in the entry for "personal representatives", in the second column, for "section 721(1)" substitute "section 989 of ITA 2007",

(h) in the entry for "recognised stock exchange", in the second column, for "section 841 of ICTA" substitute "section 1005 of ITA 2007",

(i) in the entry for "tax", in the second column, at the end insert "(as applied by section 989 of ITA 2007)", and

(j) in the entry for "tax year", in the second column, for "section 721(1)" substitute "section 4(2) of ITA 2007 (as applied by section 989 of that Act)".

448 In paragraph 49 of Schedule 3 (approved SAYE Option Schemes)--

(a) in the entry for "child", in the second column, for "section 832(5) of ICTA (and see section 721(6) of this Act)" substitute "section 721(6)",

(b) in the entry for "close company", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(c) in the entry for "distribution", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(d) omit the entry for "interest",

(e) in the entry for "notice", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(f) in the entry for "ordinary share capital", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(g) in the entry for "personal representatives", in the second column, for "section 721(1)" substitute "section 989 of ITA 2007",

(h) in the entry for "recognised stock exchange", in the second column, for "section 841 of ICTA" substitute "section 1005 of ITA 2007",

(i) in the entry for "tax", in the second column, at the end insert "(as applied by section 989 of ITA 2007)", and

(j) omit the entry for "United Kingdom".

449 In paragraph 37 of Schedule 4 (approved CSOP Schemes)--

(a) in the entry for "child", in the second column, for "section 832(5) of ICTA (and see section 721(6) of this Act)" substitute "section 721(6)",

(b) in the entry for "close company", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(c) in the entry for "distribution", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(d) in the entry for "notice", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(e) in the entry for "ordinary share capital", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(f) in the entry for "personal representatives", in the second column, for "section 721(1)" substitute "section 989 of ITA 2007",

(g) in the entry for "recognised stock exchange", in the second column, for "section 841 of ICTA" substitute "section 1005 of ITA 2007", and

(h) omit the entry for "United Kingdom".

450 (1) Amend Schedule 5 (enterprise management incentives) as follows.

(2) In paragraph 11(10) (meaning of "qualifying subsidiary")--

(a) for "section 312(2A) of ICTA" substitute "section 252 of ITA 2007", and

(b) for "Chapter 3 of Part 7 of ICTA" substitute "Part 5 of ITA 2007".

(3) In paragraph 58, in the definition of "research and development", for "section 837A of ICTA" substitute "section 1006 of ITA 2007".

(4) In paragraph 59--

(a) in the entry for "child", in the second column, for "section 832(5) of ICTA (and see section 721(6) of this Act)" substitute "section 721(6)",

(b) in the entry for "close company", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

(c) in the entry for "distribution", in the second column, for "section 832(1) of ICTA" substitute "section 989 of ITA 2007",

-- Back --

Stat