Change 1 Article Choose an article Title and introductory text 1 Overview of Income Tax Acts 2 Overview of Act 3 Overview of charges to income tax 4 Income tax an annual tax 5 Income tax and companies 6 The ... basic rate , higher rate and additional rate 6A The Scottish basic, higher and additional rates 6B The Welsh rates 6C The default basic, higher and additional rates 6D The property basic, higher and additional rates 7 The starting rate for savings and savings nil rate 7A The savings basic, higher and additional rates 8 The dividend nil rate, dividend ordinary rate, dividend upper rate and dividend additional rate 9 The trust rate , property trust rate, savings trust rate and dividend trust rate 9A Overview of sections 10 to 15 10 Income charged at the ... basic , higher and additional rates: individuals 11 Income charged at the default basic rate: non-individuals 11A Income charged at Scottish rates 11B Income charged at the Welsh basic, higher and additional rates 11C Income charged at the default basic, higher and additional rates: non-UK resident individuals 11CA Income charged at the property basic, higher and additional rates: individuals 11CB Income charged at the Welsh property basic, higher and additional rates: individuals 11CC Income charged at the property basic rate: non-individuals 11D Income charged at the savings basic, higher and additional rates : individuals 11DA Income charged at the savings basic rate: non-individuals 12 Income charged at the starting rate for savings 12A Savings income charged at the savings nil rate 12B Individual's entitlement to a savings allowance 13 Income charged at the dividend ordinary , dividend upper and dividend additional rates: individuals 13A Income charged at the dividend nil rate 14 Income charged at the dividend ordinary rate: non-individuals 15 Income charged at the trust rate , the property trust rate, the savings trust rate and the dividend trust rate 16 Savings and dividend income to be treated as highest part of total income 16A Treatment of property income in hierarchy of total income 17 Repayment: tax paid at greater rate instead of starting rate for savings or savings nil rate 17A Meaning of “property income” 18 Meaning of “savings income” 19 Meaning of “dividend income” 20 The starting rate limit and the basic rate limit 21 Indexation of the basic rate limit and starting rate limit for savings 22 Overview of Chapter 23 The calculation of income tax liability 24 Reliefs deductible at Step 2 24A Limit on Step 2 deductions 24B Calculation of net income at Step 2 for low income estates and trusts 25 Reliefs and allowances deductible at Steps 2 and 3: supplementary 26 Tax reductions 27 Order of deducting tax reductions: individuals 28 Order of deducting tax reductions: other persons 29 Tax reductions: supplementary 30 Additional tax 31 Total income: supplementary 32 Liability not dealt with in the calculation 33 Overview of Part 34 Allowances under Chapter 35 Personal allowance 36 Personal allowance for those born after 5 April 1938 but before 6 April 1948 37 Personal allowance for those born before 6 April 1938 38 Blind person's allowance 39 Transfer of part of blind person's allowance to a spouse or civil partner 40 Election for transfer of allowance under section 39 41 Allowances in year of death 42 Tax reductions under Chapter 43 Meaning of “the minimum amount” 43A Meaning of “relevant conversion” 44 Election for new rules to apply 45 Marriages before 5 December 2005 46 Marriages and civil partnerships on or after 5 December 2005 47 Election by individual to transfer relief under section 45 or 46 48 Joint election to transfer relief under section 45 or 46 49 Election for partial transfer back of relief 50 Procedure for making and withdrawing elections under sections 47 to 49 51 Transfer of unused relief 52 Transfer back of unused relief 53 Transfer of unused relief: general 54 Tax reductions in the year of marriage or entry into civil partnership 55 Sections 45 to 53: supplementary 55A Tax reduction under Chapter 55B Tax reduction: entitlement 55C Election to reduce personal allowance 55D Procedure for elections under section 55C 55E Limitation on number of tax reductions and elections 56 Residence etc of claimants 57 Indexation of allowances 57A Personal allowance linked to national minimum wage 58 Meaning of “adjusted net income” 59 Overview of Part 60 Overview of Chapter 61 Non-partners: losses of a tax year 62 Partners: losses of a tax year etc 63 Prohibition against double counting 64 Deduction of losses from general income 65 How relief works 66 Restriction on relief unless trade is commercial 67 Restriction on relief in case of farming or market gardening 68 Reasonable expectation of profit 69 Whether trade is the same trade 70 Determining losses in previous tax years 71 Treating trade losses as CGT losses 72 Relief for individuals for losses in first 4 years of trade 73 How relief works 74 Restrictions on relief unless trade is commercial etc 74ZA No relief for tax-generated losses 74A Reliefs in any tax year not to exceed cap for tax year 74B No relief for tax-generated losses 74C Meaning of “non-active capacity” for purposes of section 74A etc 74D Meaning of “qualifying film expenditure” for purposes of sections 74ZA and 74A 74E No relief where cash basis used to calculate losses 75 Trade leasing allowances given to individuals 76 First-year allowances and annual investment allowances: introduction 77 First-year allowances: partnerships with companies 78 First-year allowances and annual investment allowances: arrangements to reduce tax liabilities 79 Capital allowances restrictions: supplementary 80 Ring fence income 81 Dealings in commodity futures 82 Exploitation of films 83 Carry forward against subsequent trade profits 84 How relief works 85 Use of trade-related interest and dividends if trade profits insufficient 86 Trade transferred to a company 87 Ring fence trades 88 Carry forward of certain interest as loss 89 Carry back of losses on a permanent cessation of a trade 90 Losses that are “terminal losses” 91 How relief works 92 Use of trade-related interest and dividends if trade profits insufficient 93 Mineral extraction trade and carry back of balancing allowances 94 Carry back of certain interest as loss 95 Foreign trades etc: reliefs only against foreign income 96 Post-cessation trade relief 97 Meaning of “qualifying payment” 98 Meaning of “qualifying event” etc 98A Denial of relief for tax-generated payments or events 99 Reduction of relief for unpaid trade expenses 100 Prohibition against double counting 101 Treating excess post-cessation trade relief as CGT loss 102 Overview of Chapter 103 Meaning of “sideways relief”, “capital gains relief” and “firm” 103A Meaning of “limited partner” 103B Meaning of “non-active partner” etc 103C Limit on reliefs in any tax year not to exceed cap for tax year 103D Meaning of “qualifying film expenditure” 104 Restriction on reliefs for limited partners 105 Meaning of “contribution to the firm” 106 Meaning of “limited partner” 107 Restriction on reliefs for members of LLPs 108 Meaning of “contribution to the LLP” 109 Unrelieved losses brought forward 110 Restriction on reliefs for non-active partners in early tax years 111 Meaning of “contribution to the firm” 112 Meaning of “early tax year” 113 Unrelieved losses brought forward 113A Exclusion of amounts contributed to access relief 114 Power to exclude other amounts 115 Restrictions on reliefs for firms exploiting films 116 Exclusion from restrictions under section 115: certain film expenditure 116A Excess loss allocation to partners who are individuals 117 Overview of Chapter 118 Carry forward against subsequent property business profits 119 How relief works 120 Deduction of property losses from general income 121 How relief works 122 Meaning of “the applicable amount of the loss” 123 Meaning of “the loss has a capital allowances connection” and “the business has a relevant agricultural connection” 124 Supplementary 125 Post-cessation property relief 126 Treating excess post-cessation property relief as CGT loss 127 UK furnished holiday lettings business treated as trade 127ZA EEA furnished holiday lettings business treated as trade 127A No relief for tax-generated losses attributable to annual investment allowance 127B No relief for tax-generated agricultural expenses 127BA Restriction of relief: cash basis 127C Excess loss allocation to partners who are individuals 128 Employment loss relief against general income 129 How relief works 130 Treating loss in employment or office as CGT loss 131 Share loss relief 132 Entitlement to claim 133 How relief works 134 Qualifying trading companies 135 Subscriptions for shares 136 Disposals of new shares 137 The trading requirement 138 Ceasing to meet trading requirement because of administration or receivership 139 The control and independence requirement 140 The qualifying subsidiaries requirement 141 The property managing subsidiaries requirement 142 The gross assets requirement 143 The unquoted status requirement 144 Power to amend requirements by Treasury order 145 Relief after an exchange of shares for shares in another company 146 Substitution of new shares for old shares 147 Limits on share loss relief 148 Disposal of shares forming part of mixed holding 149 Section 148: supplementary 150 Deemed time of issue for certain shares 151 Interpretation of Chapter 152 Losses from miscellaneous transactions 153 How relief works 154 Transactions in deposit rights 154A Anti-avoidance 155 Time limit for claiming relief 156 Meaning of “EIS relief” and commencement 157 Eligibility for EIS relief 157A Risk-to-capital condition 158 Form and amount of EIS relief 159 Periods A, B and C 160 Overview of other Chapters of Part 161 Other tax reliefs relating to EIS 162 Overview of Chapter 163 The no connection with the issuing company requirement 164 The no linked loans requirement 164A The existing shareholdings requirement 165 The no tax avoidance requirement 166 Connection with issuing company 167 Employees, directors and partners 168 Directors excluded from connection 169 Directors qualifying for relief despite connection 170 Persons interested in capital etc of company 171 Persons subscribing for shares under certain arrangements 172 Overview of Chapter 173 The shares requirement 173A The maximum amount raised annually through risk finance investments requirement 173AA Maximum risk finance investments at the issue date requirement 173AB Maximum risk finance investments during period B requirement 173B The spending of money raised by SEIS investment requirement 174 The purpose of the issue requirement 175 The use of the money raised requirement 175A The permitted maximum age requirement 176 The minimum period requirement 177 The no pre-arranged exits requirement 178 The no tax avoidance requirement 178A The no disqualifying arrangements requirement 179 Meaning of “qualifying business activity” 180 Overview of Chapter 180A The UK permanent establishment requirement 180B The financial health requirement 181 The trading requirement 182 Ceasing to meet trading requirement because of administration or receivership 183 The issuing company to carry on the qualifying business activity requirement 184 The unquoted status requirement 185 The control and independence requirement 186 The gross assets requirement 186A The number of employees requirement 187 The qualifying subsidiaries requirement 188 The property managing subsidiaries requirement 189 Meaning of “qualifying trade” 190 Meaning of “qualifying 90% subsidiary” 191 Meaning of “qualifying subsidiary” 191A Meaning of “permanent establishment” 192 Meaning of “excluded activities” 193 Excluded activities: wholesale and retail distribution 194 Excluded activities: leasing of ships 195 Excluded activities: receipt of royalties and licence fees 196 Excluded activities: property development 196A Excluded activities: shipbuilding 196B Excluded activities: producing coal 196C Excluded activities: producing steel 197 Excluded activities: hotels and comparable establishments 198 Excluded activities: nursing homes and residential care homes 198A Excluded activities: ... export of electricity 198B Excluded activities: subsidised generation of heat and subsidised production of gas or fuel 199 Excluded activities: provision of services or facilities for another business 200 Power to amend by Treasury order 201 Attribution of EIS relief to shares 202 Time for making claims for EIS relief 203 Entitlement to claim 204 Compliance certificates 205 Compliance statements 206 Appeal against refusal to authorise compliance certificate 207 Penalties for fraudulent certificate or statement etc 208 Overview of Chapter 209 Disposal of shares 210 Cases where maximum EIS relief not obtained 211 Call options 212 Put options 213 Value received by the investor 214 Value received: receipts of insignificant value 215 Meaning of “receipts of insignificant value” 216 When value is received 217 The amount of value received 218 Value received where there is more than one issue of shares 219 Value received where part of share issue treated as made in previous tax year 220 Cases where maximum EIS relief not obtained 221 Receipts of value by and from connected persons etc 222 Receipt of replacement value 223 Section 222: supplementary 224 Repayments etc of share capital to other persons 225 Insignificant repayments ignored for purposes of section 224 226 Amount of repayments etc where there is more than one issue of shares 227 Single issue affecting more than one individual 228 Single issue treated as made partly in previous tax year 229 Maximum relief not obtained for share issue 230 Repayment of authorised minimum within 12 months 231 Restriction on withdrawal of relief under section 224 232 Acquisition of a trade or trading assets 233 Acquisition of share capital 234 Relief subsequently found not to have been due 235 Assessments for the withdrawal or reduction of EIS relief 236 Appeals against section 234(3)(b) notices 237 Time limits for assessments 238 Cases where assessment not to be made 239 Date from which interest is chargeable 240 Information to be provided by the investor 241 Information to be provided by the issuing company etc 242 Power to require information where section 240 or 241 applies or could have applied 243 Power to require information in other cases 244 Obligations of secrecy 245 Transfers between spouses or civil partners 246 Identification of shares on a disposal 247 Continuity of EIS relief where issuing company is acquired by new company 248 Carry over of obligations etc where EIS relief attributed to new shares 249 Substitution of new shares for old shares 250 Nominees and bare trustees 251 Approved knowledge-intensive fund as nominee 251A Powers to amend Chapters 2 to 4 by Treasury regulations 252 Meaning of a company being “in administration” or “in receivership” 252A Meaning of “knowledge-intensive company” 252B Knowledge-intensive company reaching turnover of £200,000 253 Meaning of “associate” 254 Meaning of “disposal of shares” 255 Meaning of “issue of shares” 256 Meaning of “the termination date” 256A Meaning of “the EIS original rate” 256B Meaning of “specified Northern Ireland company” 257 Minor definitions etc 257A Meaning of “SEIS relief” and commencement 257AA Eligibility for SEIS relief 257AAA Risk-to-capital condition 257AB Form and amount of SEIS relief 257AC Meaning of “period A” and “period B” 257AD Overview of other Chapters of Part 257AE CGT reliefs relating to SEIS 257B Overview of Chapter 257BA The no employee investors requirement 257BB The no substantial interest in the issuing company requirement 257BC The no related investment arrangements requirement 257BD The no linked loan requirement 257BE The no tax avoidance requirement 257BF Persons with a substantial interest in a company 257C Overview of Chapter 257CA The shares requirement 257CB The purpose of the issue requirement 257CC The spending of the money raised requirement 257CD The no pre-arranged exits requirement 257CE The no tax avoidance requirement 257CF The no disqualifying arrangements requirement 257D Overview of Chapter 257DA The trading requirement 257DB Ceasing to meet trading requirement: administration etc 257DC The issuing company to carry on the qualifying business activity 257DD The UK permanent establishment requirement 257DE The financial health requirement 257DF The unquoted status requirement 257DG The control and independence requirement 257DH The no partnerships requirement 257DI The gross assets requirement 257DJ The number of employees requirement 257DK No previous other risk capital scheme investments 257DL The amount raised through the SEIS 257DM The qualifying subsidiaries requirement 257DN The property managing subsidiaries requirement 257E Attribution of SEIS relief to shares 257EA Time for making claims for SEIS relief 257EB Entitlement to claim 257EC Compliance certificates 257ED Compliance statements 257EE Appeal against refusal to authorise compliance certificate 257EF Penalties for fraudulent certificate or statement etc 257EG Power to amend sections 257EC and 257ED 257F Overview of Chapter 257FA Disposal of shares 257FB Cases where maximum SEIS relief not obtained 257FC Call options 257FD Put options 257FE Value received by the investor 257FF Value received: receipts of insignificant value 257FG Meaning of “a receipt of insignificant value” 257FH When value is received 257FI The amount of value received 257FJ Value received where there is more than one issue 257FK Value received where part of issue treated as made in previous tax year 257FL Cases where maximum SEIS relief not obtained 257FM Receipts of value by and from connected persons etc 257FN Receipt of replacement value 257FO Section 257FN: supplementary 257FP Acquisition of trade or trading assets 257FQ Acquisition of share capital 257FR Relief subsequently found not to have been due 257G Assessments for the withdrawal or reduction of SEIS relief 257GA Appeals against section 257FR(3)(b) notices 257GB Time limits for assessments 257GC Cases where assessments not to be made 257GD Date from which interest is chargeable 257GE Information to be provided by the investor 257GF Information to be provided by the issuing company etc 257GG Power to require information where section 257GE or 257GF applies or could have applied 257GH Power to require information in other cases 257GI Obligations of secrecy 257H Transfers between spouses or civil partners 257HA Identification of shares on a disposal 257HB Continuity of SEIS relief where issuing company is acquired by new company 257HC Carry over of obligations etc where SEIS relief attributed to new shares 257HD Substitution of new shares for old shares 257HE Nominees and bare trustees 257HF Meaning of “new qualifying trade” 257HG Meaning of “qualifying business activity” 257HH Meaning of “disposal of shares” 257HI Meaning of “issue of shares” 257HJ Minor definitions 257J Meaning of “SI relief” and “social enterprise” 257JA Form and amount of relief 257JB Meaning of “community benefit society” 257JC Charities that are trusts 257JD Accreditation as a social impact contractor 257JE Meaning of “social impact contract” 257JF Accreditations: supplementary provisions 257JG Period of accreditation as a social impact contractor 257JH Functions of Ministers of the Crown under sections 257JD to 257JG 257K Eligibility for SI relief 257KA Key to reading the rest of the Part 257KB When investment is made, and “investment date” 257KC “Shorter applicable period” and “longer applicable period” 257L Investment to be in new shares or new qualifying debt investments 257LA Condition that the amount invested must have been paid over 257LB The no pre-arranged exits requirements 257LC The no risk avoidance requirement 257LD The no linked loans requirement 257LDA The existing investments requirement 257LE The no tax avoidance requirement 257LEA The no disqualifying arrangements requirement 257LF Restrictions on being an employee, partner or paid director 257LG The requirement not to be interested in capital etc of social enterprise 257LH Requirement for no collusion with a non-qualifying investor 257M The continuing to be a social enterprise requirement 257MA The amount raised from investments potentially eligible for relief 257MB Power to amend limits on amounts raised 257MC The gross assets requirement 257MD The unquoted status requirement 257ME The control and independence requirements 257MF The qualifying subsidiaries requirement 257MG The property-managing subsidiaries requirement 257MH The number of employees requirement 257MI The no partnership requirement 257MIA The financial health requirement 257MJ The trading requirement 257MK Ceasing to meet trading requirement: administration or receivership 257ML The issue must be to raise money for chosen trade or preparing for it 257MM Requirement to use money raised and to trade for minimum period 257MN The social enterprise must carry on the chosen trade 257MNA Maximum amount where investment made in first 7 years 257MNB Section 257MNA: supplementary 257MNC Maximum amount for cases outside section 257MNA 257MND Limit on investment in shorter applicable period 257MNE Power to amend limits on amounts that may be invested 257MP Meaning of “qualifying trade” 257MQ Meaning of “excluded activity” 257MQA Excluded activities: nursing homes and residential care homes 257MR Excluded activities: property development 257MS Excluded activity: subsidised generation or export of electricity 257MT Excluded activity: providing services or facilities for another business 257MU Meaning of “qualifying subsidiary” 257MV Meaning of “90% social subsidiary” of a social enterprise 257MW Excluded activities: power to amend 257N Attribution of SI relief to investments 257P Time for making claims for SI relief 257PA Entitlement to claim 257PB Compliance statements 257PC Compliance certificates 257PD Penalties for fraudulent certificate or statement etc 257PE Power to amend Chapter 257Q Effect of the investor receiving value from the social enterprise 257QA Value received: insignificant receipts 257QB Value received where there is more than one issue of investments 257QC Value received where part of investment treated as made in previous tax year 257QD Cases where maximum SI relief not obtained 257QE When value is received 257QF The amount of value received 257QG Receipts of value by and from connected persons etc 257QH Receipt of replacement value 257QI Section 257QH: supplementary 257QJ Repayments etc of share capital to other persons 257QK Insignificant payments ignored for the purposes of section 257QJ 257QL Amount of repayments etc if there is more than one issue of shares 257QM Single issue affecting more than one individual 257QN Single issue treated as made partly in previous tax year 257QO Maximum relief not obtained for share issue 257QP Repayment of authorised minimum within 12 months 257QQ Acquisition of a trade or trading assets 257QR Acquisition of share capital 257QS Relief subsequently found not to have been due 257R Disposal of whole or part of the investment 257RA Cases where maximum relief not obtained 257RB Call options 257RC Put options 257S Assessments for the withdrawal or reduction of SI relief 257SA Appeals against section 257QS(3)(b) notices 257SB Time limits for assessments 257SC Cases where assessment not to be made 257SD Date from which interest is chargeable 257SE Information to be provided by the investor 257SF Information to be provided by the social enterprise etc 257SG Power to require information in section 257SE or 257SF cases 257SH Power to require information in other cases 257SI Confidentiality 257T Transfers between spouses or civil partners 257TA Identification of investments on a disposal 257TB Meaning of a company being “in administration” or “in receivership” 257TC Meaning of “associate” 257TD Meaning of “control” 257TE Minor definitions etc 258 Overview of Part 259 Venture capital trusts and VCT approvals 260 Other tax reliefs relating to VCTs 261 Eligibility for relief 262 Entitlement to claim relief 263 Form and amount of relief 264 No entitlement to relief if there is a linked loan 264A Restricting relief where there is a linked sale 265 No entitlement to relief which would have been lost if it had already been obtained 266 Loss of relief if shares disposed of within 5 years 267 Transfers of shares between spouses or civil partners 268 Loss of relief if VCT approval withdrawn 269 Loss of relief which is subsequently found not to have been due 270 Assessment on withdrawal or reduction of relief 271 Provision of information 272 Regulations as to procedure etc 273 Interpretation of Chapter 274 Requirements for the giving of approval 275 Alternative requirements for the giving of approval 276 Conditions relating to income 277 The 15% holding limit condition 278 Conditions relating to value of investments: general 279 Conditions relating to value of investments: qualifying holdings 280 Conditions relating to qualifying holdings and eligible shares 280A The 80% qualifying holdings condition: disposal of holding 280B The investment limits condition 280BA The minimum investment on further issue condition 280C The permitted maximum age condition 280D The no business acquisition condition 281 Withdrawal of VCT approval of a company 282 Withdrawal of VCT approval in cases for which provision made under section 280(3) 283 Time as from which VCT approval has effect 284 Power to make regulations as to procedure 285 Interpretation of Chapter 286 Qualifying holdings: introduction 286ZA The risk-to-capital requirement 286A The UK permanent establishment requirement 286B The financial health requirement 287 The maximum qualifying investment requirement 288 The no guaranteed loan requirement 289 The proportion of eligible shares requirement 290 The trading requirement 291 The carrying on of a qualifying activity requirement 292 Ceasing to meet requirements because of administration or receivership 292A The maximum amount raised annually through risk finance investments requirement 292AA Maximum risk finance investments when relevant holding is issued requirement 292AB Maximum risk finance investments during the 5-year post-investment period requirement 292B The spending of money raised by SEIS investment requirement 293 The use of the money raised requirement 294 The relevant company to carry on the relevant qualifying activity requirement 294A The permitted company age requirement 295 The unquoted status requirement 296 The control and independence requirement 297 The gross assets requirement 297A The number of employees requirement 297B The proportion of skilled employees requirement 298 The qualifying subsidiaries requirement 299 The property managing subsidiaries requirement 299A The no disqualifying arrangements requirement 300 Meaning of “qualifying trade” 301 Meaning of “qualifying 90% subsidiary” 302 Meaning of “qualifying subsidiary” 302A Meaning of “permanent establishment” 303 Meaning of “excluded activities” 304 Excluded activities: wholesale and retail distribution 305 Excluded activities: leasing of ships 306 Excluded activities: receipt of royalties and licence fees 307 Excluded activities: property development 307A Excluded activities: shipbuilding 307B Excluded activities: producing coal 307C Excluded activities: producing steel 308 Excluded activities: hotels and comparable establishments 309 Excluded activities: nursing homes and residential care homes 309A Excluded activities: ... export of electricity 309B Excluded activities: subsidised generation of heat and subsidised production of gas or fuel 310 Excluded activities: provision of services or facilities for another business 311 Power to amend Chapter 312 Winding up of the relevant company 312A Power to require information relating to disqualifying arrangements 313 Interpretation of Chapter 314 Power to treat VCT-in-liquidation as VCT 315 Power to treat conditions for VCT approval as met with respect to VCT-in-liquidation 316 Power to make provision about distributions by VCT-in-liquidation 317 Power to facilitate disposal to VCT by VCT-in-liquidation 318 Power in respect of periods before and after winding up 319 Sections 314 to 318: supplementary 320 Meaning of “VCT-in-liquidation” 321 Power to facilitate mergers of VCTs 322 Provision that may be made by regulations under section 321 323 Meaning of “merger” and “successor company” 324 Regulations under Chapter 325 Interpretation of Chapter 326 Restructuring to which sections 326A, 327 and 327A apply 326A Certain requirements of Chapter 3 to be treated as met 327 Certain requirements of Chapter 4 to be treated as met 327A Follow-on funding 328 Supplementary 329 Conversion of convertible shares and securities 330 Power to facilitate company reorganisations etc involving exchange of shares 330A Nominees 330B Powers to amend Chapters 3 and 4 by Treasury regulations 331 Meaning of a company being “in administration” or “in receivership” 331A Meaning of “knowledge-intensive company” 331B Knowledge-intensive company reaching turnover of £200,000 331C Meaning of “specified Northern Ireland company” 332 Minor definitions etc 333 Meaning of “CITR” 334 Eligibility for CITR 335 Form and amount of CITR 335A Carry forward of CITR 336 Meaning of “making an investment” 337 Determination of “the invested amount” 338 Meaning of “the 5 year period” and “the investment date” 339 Overview of other Chapters of Part 340 Application and criteria for accreditation 341 Terms and conditions of accreditation 342 Period of accreditation 343 Delegation of Secretary of State's functions 344 Qualifying investments: introduction 345 Conditions to be met in relation to loans 346 Conditions to be met in relation to securities 347 Conditions to be met in relation to shares 348 Tax relief certificates 349 No pre-arranged protection against risks 350 No control of CDFI by investor 351 Investor must have beneficial ownership 352 No acquisition of share in partnership 353 No tax avoidance purpose 354 Loans: no claim after disposal or excessive repayments or receipts of value 355 Securities or shares: no claim after disposal or excessive receipts of value 356 No claim after loss of accreditation by the CDFI 357 Attribution: general 358 Attribution: bonus shares 359 Overview of Chapter 360 Disposal of loan during 5 year period 361 Disposal of securities or shares during 5 year period 362 Repayment of loan capital during 5 year period 363 Value received by investor during 6 year period: loans 364 Value received by investor during 6 year period: securities or shares 365 Receipts of insignificant value to be added together 366 When value is received 367 The amount of value received 368 Value received if there is more than one investment 369 Effect of receipt of value on future claims for CITR 370 Receipts of value by or from connected persons 371 CITR subsequently found not to have been due 372 Manner of withdrawal or reduction of CITR 372A Meaning of “loan” and “interest” 372B Purchase and resale arrangements 372C Deposit arrangements 372D Profit share agency arrangements 373 Information to be provided by the investor 374 Disclosure 375 Nominees 376 Application for postponement of tax pending appeal 377 Identification of securities or shares on a disposal 378 Meaning of “issue of securities or shares” 379 Meaning of “disposal” 380 Construction of references to being “held continuously” 381 Meaning of “associate” 382 Minor definitions etc 383 Relief for interest payments 384 General restrictions on relief under Chapter 384A Restriction on relief where arrangements minimise risk to borrower 384B Restriction on relief where cash basis applies 385 General provisions about loans 386 Loans partly meeting requirements 387 Exclusion of double relief etc 388 Loan to buy plant or machinery for partnership use 389 Eligibility requirements for interest on loans within section 388 390 Loan to buy plant or machinery for employment use 391 Eligibility requirements for interest on loans within section 390 392 Loan to buy interest in close company etc 393 Eligibility requirements for interest on loans within section 392 393A Close investment-holding companies 394 Meaning of “material interest” in section 393 395 Meaning of “associate” in section 394 396 Loan to buy interest in employee-controlled company 397 Eligibility requirements for interest on loans within section 396 398 Loan to invest in partnership 399 Eligibility requirements for interest on loans within section 398 399A Property partnerships: restriction of relief for investment loan interest 399B Property partnerships: tax reduction for non-deductible loan interest 400 Film partnerships 401 Loan to invest in co-operative 402 Eligibility requirements for interest on loans within section 401 403 Loan to pay inheritance tax 404 Eligibility requirements for interest on loans within section 403 405 Carry back and forward of relief for interest on loans within section 403 406 Effect of recovery of capital in the case of some loans 407 Events counting as recovery of capital for section 406 408 Replacement loans 409 Business successions between partnerships 410 Other business successions and reorganisations 411 Ineligibility of interest where business is occupation of commercial woodlands 412 Information 412A Relief for irrecoverable peer-to-peer loans 412B Claims for additional relief: sideways relief 412C Claims for additional relief: carry-forward relief 412D How carry-forward relief works 412E Subsequent recovery of peer-to-peer loans 412F Assigned loans treated as made by the assignee etc 412G Nominees etc 412H Interaction with other reliefs 412I Meaning of “loan”, “peer-to-peer loan” and related terms 412J Meaning of “operator” and related terms 413 Overview of Chapter 414 Relief for gifts to charity 414A Tax reduction or charge if basic rate, and devolved basic rate, differ 415 Meaning of “grossed up amount” 416 Meaning of “qualifying donation” 417 Meaning of “benefits associated with a gift” 418 Restrictions on associated benefits 419 Gifts and benefits linked to periods of less than 12 months 420 Disregard of certain admission rights 421 Admission rights: supplementary 422 Disqualified overseas gifts 423 Restriction of certain reliefs 424 Charge to tax 425 Total amount of income tax to which individual charged for a tax year 426 Election by donor: gift treated as made in previous tax year 427 Meaning of “charged amount” 428 Meaning of “gift aid declaration” 429 Giving through self-assessment return 430 “Charity” to include exempt bodies 431 Relief for gifts of shares, securities and real property to charities etc 432 Meaning of “qualifying investment” 433 Meaning of “qualifying interest in land” 434 The relievable amount 435 Incidental costs of making disposal 436 Consideration 437 Value of net benefit to charity 438 Market value of qualifying investments 438A Acquisition value of qualifying investments 439 Meaning of “disposal-related obligation” 440 Meaning and amount of “disposal-related liability” 441 Certificate required from charity 442 Qualifying interests in land held jointly 443 Calculation of relievable amount where joint disposal of interest in land 444 Disqualifying events 445 Prohibition against double relief 446 “Charity” to include exempt bodies 447 Overview of Chapter 448 Relief for individuals 449 Relief for other persons 450 Other persons: payments ineligible for relief 451 Special rule for persons affected by section 733 of ICTA 452 The gross amount of a payment 453 Tax reduction for qualifying maintenance payments 454 Meaning of “qualifying maintenance payment” 455 Child support maintenance payments 456 Payments under orders for recovery of benefit etc 457 Payments to trade unions 458 Payments to police organisations 459 Payments for benefit of family members 460 Residence etc of claimants 461 Spreading of patent royalty receipts 462 Overview of Part 463 Interpretation of Part 464 Scottish trusts 465 Overview of Chapter and interpretation 466 Meaning of “settled property” etc 467 Meaning of “settlor” etc 468 Meaning of “disposable property” 469 Person ceasing to be a settlor 470 Transfers between settlements 471 Identification of settlor following transfer covered by section 470 472 Settlor where property becomes settled because of variation of will etc 473 Deceased person as settlor where variation of will etc 474 Trustees of settlement to be treated as a single and distinct person 475 Residence of trustees 476 How to work out whether settlor meets condition C 477 Sub-fund elections under Schedule 4ZA to TCGA 1992 478 References to settled property etc in regulations 479 Trustees' accumulated or discretionary income to be charged at special rates 480 Meaning of “accumulated or discretionary income” 481 Other amounts to be charged at special rates for trustees 482 Types of amount to be charged at special rates for trustees 483 Sums paid by personal representatives to trustees 484 Trustees' expenses to be set against trustees' trust rate income 485 Carry forward of unused expenses 486 How allowable expenses are to be set against trust rate income 487 Non-UK resident trustees 488 Application of section 479 to trustees of Schedule 2 share incentive plans 489 “The applicable period” in relation to shares 490 Interpretation of Chapter 493 Discretionary payments by trustees 494 Grossing up of discretionary payment and payment of income tax 495 Statement about deduction of income tax 496 Income tax charged on trustees 496A Discretionary payments by trustees: employment income 496B Relief for trustees 497 Calculation of trustees' tax pool 498 Types of income tax for the purposes of section 497 499 Application of Chapter 500 Restrictions on use of trustees' expenses to reduce the beneficiary's income 501 Non-UK resident beneficiaries 502 Meaning of “untaxed income” in section 501 503 How beneficiary's income is reduced 504 Treatment of income of unauthorised unit trust 504A Treatment of capital expenditure of unauthorised unit trust 505 Relief for trustees of unauthorised unit trust 506 Special rules for trustees affected by section 733 of ICTA 507 Overview of Chapter 508 Election by trustees 509 Change of circumstances during a tax year 510 Sums applied for property maintenance purposes 511 Prevention of double taxation: reimbursement of settlor 512 Charge to tax on some settlements 513 Income charged 514 Persons liable 515 Rate of tax 516 Transfer of property between settlements 517 Exemption for income treated as income of settlor 517A Overview of Part 517B Disposals of land in the United Kingdom 517C Disposals of land: profits treated as trading profits 517D Disposals of property deriving its value from land in the United Kingdom 517E Disposals within section 517D: profits treated as trading profits 517F Profits and losses 517G The chargeable person 517H Fragmented activities 517I Calculation of surplus on a disposal of land 517J Apportionments 517K Arrangements for avoiding tax 517L Gain attributable to period before intention to develop formed 517M Private residences 517N Tracing value 517O Relevance of transactions, arrangements, etc 517P “Another person” 517Q “Arrangement” 517R “Disposal” 517S “Land” and related expressions 517T References to realising a gain 517U Related parties 518 Overview of Part 519 Meaning of “charitable trust” 520 Gifts entitling donor to gift aid relief: income tax treated as paid 521 Gifts entitling donor to gift aid relief: income tax liability and exemption 521A Gifts under payroll deduction schemes: income tax liability and exemption 522 Gifts of money from companies: income tax liability and exemption 523 Payments from other charities: income tax liability and exemption 523A Legacies: income tax liability and exemption 524 Exemption for profits etc of charitable trades 525 Meaning of “charitable trade” 526 Exemption for profits etc of small-scale trades 527 Exemption from charges under provisions to which section 1016 applies 528 Condition as to trading and miscellaneous incoming resources 529 Exemption for profits from fund-raising events 530 Exemption for profits from lotteries 531 Exemption for property income etc 532 Exemption for savings and investment income 533 Exemption for public revenue dividends 534 Exemption for transactions in deposits 535 Exemption for offshore income gains 536 Exemption for certain miscellaneous income 537 Exemption for income from estates in administration 538 Requirement to make claim 538A Claims in relation to gift aid relief etc 539 Restrictions on exemptions 540 The non-exempt amount 541 Attributing income to the non-exempt amount 542 How income is attributed to the non-exempt amount 543 Meaning of “non-charitable expenditure” 544 Section 543: supplementary 545 Section 543(1)(f): meaning of expenditure 546 Section 543(1)(f): tax year in which certain expenditure treated as incurred 547 Section 543(1)(f): payment to body outside the UK 548 Section 543(1)(i) and (j): investments and loans 549 Transactions with substantial donors 550 Meaning of “relievable gift” 551 Non-charitable expenditure in substantial donor transactions 552 Adjustment if section 551(1) and (2) applied to single transaction 553 Section 551: certain payments and benefits to be ignored 554 Transactions: exceptions 555 Donors: exceptions 556 Connected charities 557 Substantial donor transactions: supplementary 558 Approved charitable investments 559 Securities which are approved charitable investments 560 Conditions to be met for some securities 561 Approved charitable loans 562 Excess expenditure treated as non-charitable expenditure of earlier years 563 Rules for attributing excess expenditure to earlier years 564 Adjustments in consequence of section 562 564A Introduction 564B Meaning of “financial institution” 564C Purchase and resale arrangements 564D Diminishing shared ownership arrangements : initial acquisition 564DA Diminishing shared ownership arrangements: refinancing 564E Deposit arrangements 564F Profit share agency arrangements 564G Investment bond arrangements 564H Provision not at arm's length: exclusion of arrangements from sections 564C to 564G 564I Purchase and resale arrangements 564J Purchase and resale arrangements where return in foreign currency 564K Diminishing shared ownership arrangements 564L Other arrangements 564M Treatment of alternative finance return as interest for ITTOIA 2005 564N Alternative finance return under arrangements for trade or property business purposes 564O Relief for some alternative finance return under Chapter 1 of Part 8 etc 564P Tax relief schemes and arrangements 564Q Deduction of income tax at source under Part 15 564R Treatment of discount 564S Treatment of bond-holder and bond-issuer 564T Treatment as securities 564U Arrangements not unit trust scheme or offshore fund 564V Exclusion of alternative finance return from consideration for sale of assets 564W Diminishing shared ownership arrangements not partnerships 564WA Diminishing shared ownership arrangements: further provision in respect of refinancing 564X Treatment of principal under profit share agency arrangements 564Y Provision not at arm's length: relevant return 596 Deemed manufactured payments: stock lending arrangements 597 Deemed interest: cash collateral under stock lending arrangements 598 Cash collateral under stock lending arrangements: supplementary 599 Sections 597 and 598: quasi-stock lending arrangements and quasi-cash collateral 600 Meaning of “quasi-stock lending arrangements” and “quasi-cash collateral” 601 Repo cases in which deeming rules apply 602 Deemed manufactured payments: repos 603 Deemed deductions of tax 604 Deemed increase in repurchase price: price differences under repos 605 Deemed increase in repurchase price: other income tax purposes 606 Interpretation of Chapter 607 Treatment of price differences under repos 608 Exceptions to section 607 609 Additional income tax consequences of price differences 610 Repurchase price in deemed manufactured payment case 611 Power to modify Chapter in non-arm's length case 612 Non-standard repo cases 613 Redemption arrangements 614 Sections 612 and 613: supplementary 614ZA Overview of Part 614ZB Key definitions 614ZC Treatment of payer of manufactured payment 614ZD Treatment of recipient of manufactured payment 614A Overview of Part 614AA Normal rent 614AB Accountancy rental earnings 614AC Rental earnings 614B Arrangements to which this Chapter applies 614BA Purposes of this Chapter 614BB Application of this Chapter 614BC The conditions referred to in section 614BB(1) 614BD Provisions supplementing section 614BC 614BE The arrangements and circumstances referred to in section 614BC(8) 614BF Current lessor taxed by reference to accountancy rental earnings 614BG Reduction of taxable rent by cumulative rental excesses: introduction 614BH Meaning of “accountancy rental excess” and “cumulative accountancy rental excess” 614BI Reduction of taxable rent by the cumulative accountancy rental excess 614BJ Meaning of “normal rental excess” and “cumulative normal rental excess” 614BK Reduction of taxable rent by the cumulative normal rental excess 614BL Relief for bad debts: reduction of cumulative accountancy rental excess 614BM Recovery of bad debts following reduction under section 614BL 614BN Relief for bad debts: reduction of cumulative normal rental excess 614BO Recovery of bad debts following reduction under section 614BN 614BP Effect of disposals of leases: general 614BQ Assignments on which neither a gain nor a loss accrues 614BR Effect of capital allowances: introduction 614BS Cases where expenditure taken into account under Part 2, 5 or 8 of CAA 2001 614BT Cases where expenditure taken into account under other provisions of CAA 2001 614BU Capital allowances deductions: waste disposal and cemeteries 614BV Capital allowances deductions: films and sound recordings 614BW Contributors to capital expenditure 614BX Pre-26 November 1996 schemes where this Chapter does not at first apply 614BY Post-25 November 1996 schemes to which Chapter 3 applied first 614C Introduction to Chapter 614CA Purpose of this Chapter 614CB Leases to which this Chapter applies 614CC Current lessor taxed by reference to accountancy rental earnings 614CD Application of provisions of Chapter 2 for purposes of this Chapter 614D Pre-26 November 1996 schemes and post-25 November 1996 schemes 614DA Time apportionment where periods of account do not coincide 614DB Periods of account and related periods of account and tax years 614DC Connected persons 614DD Assets which represent the leased asset 614DE Parent undertakings and consolidated group accounts 614DF Assessments and adjustments 614DG Interpretation 615 Overview of Part 616 Charge to tax on accrued income profits 617 Income charged 618 Person liable 619 Meaning of “securities” and when securities are of the same kind 620 Transactions which are transfers: general 621 Transferors and transferees 622 Application of Chapter to different kinds of transfer 623 Transfers with accrued interest 624 Transfers without accrued interest 625 Transfers with unrealised interest 626 Transfers of variable rate securities 627 Meaning of “variable rate securities” 628 Making accrued income profits and losses: general rule 629 Calculating accrued income profits and losses where section 628 applies 630 Making accrued income profits: settlement day outside interest period 631 Amount of accrued income profits where section 630 applies 632 Payment on transfer with accrued interest 633 Payment on transfer without accrued interest 634 Payment on transfer with unrealised interest 635 Payment on transfer of variable rate securities 636 Exception where there is a transfer to a legatee 637 Accrued income losses treated as payments in next interest period 638 Excluded persons: disregard of certain payments and transfers 639 Small holdings: individuals 640 Small holdings: personal representatives 641 Small holdings: trustees of a disabled person's trusts 642 Traders 643 Non-residents 644 Individuals to whom the remittance basis applies 645 Charitable trusts etc 646 Pension scheme trustees 647 Makers of manufactured payments 648 Strips of gilt-edged securities 649 New securities issued with extra return 650 Trading stock appropriations etc 651 Owner becoming entitled to securities as trustee 652 Securities ceasing to be held on charitable trusts 653 Stock lending 654 Sale and repurchase arrangements 655 Transfers under sale and repurchase arrangements 656 Power to modify: non-standard sale and repurchase arrangements 657 Power to modify: redemption arrangements 658 Powers to modify: supplementary 659 Transfers with or without accrued interest: interest in default 660 Transfers with unrealised interest: interest in default 661 Successive transfers with unrealised interest in default 662 New securities issued with extra return: special rules about payments 663 Transfers without accrued interest to makers of manufactured payments 664 Foreign currency securities: sterling equivalent of payments on transfers 665 Foreign currency securities: unrealised interest payable in foreign currency 666 Certain transfers by or to nominees or trustees treated as made by or to others 667 Trustees' accrued income profits treated as settlement income 668 Relief for unremittable transfer proceeds: general 669 Relief for unremittable transfer proceeds: section 630 profits 670 Withdrawal of relief 670A Individuals to whom remittance basis applies 671 Meaning of “interest” 672 Meaning of “interest payment day” 673 Meaning of “interest period” 674 Meaning of “the settlement day” 675 The holding of securities 676 Nominal value of securities: general 677 Nominal value: foreign currency securities 678 Exemptions relating to interest on securities: preliminary 679 Interest on securities involving accrued income losses: general 680 Interest on securities involving accrued income losses: foreign trustees 681 Unrealised interest received by transferee after transfer 681A Overview 681AA Transferor or associate becomes liable for payment of rent 681AB Transferor or associate becomes liable for payment other than rent 681AC Relevant income tax relief and relevant deduction from earnings 681AD Relevant income tax relief: deduction not to exceed commercial rent 681AE Deduction from earnings not to exceed commercial rent 681AF Carrying forward parts of payments 681AG Aggregation and apportionment of payments 681AH Payments made for later periods 681AI Exclusion of service charges etc 681AJ Commercial rent: comparison with rent under a lease 681AK Commercial rent: comparison with payments other than rent 681AL Lease and rent 681AM Associated persons 681AN Land outside the UK 681B Overview 681BA New lease after assignment or surrender 681BB Taxation of consideration 681BC Position where new lease does not include all original property 681BD Relief for rent under new lease 681BE New lease treated as ending 681BF Position where rent reduces 681BG Position where lease may be ended 681BH Position where lease may be varied 681BI Lease treated as ending: rentcharge 681BJ Lease varied to provide for increased rent 681BK Relevant income tax relief 681BL Linked persons 681BM Lease, lessee, lessor and rent 681C Overview 681CA Professions and vocations 681CB Leased trading assets 681CC Tax deduction not to exceed commercial rent 681CD Long funding finance leases 681CE Commercial rent 681CF Lease 681CG Relevant asset 681D Overview 681DA Application of the Chapter 681DB Payment under lease 681DC Sum obtained 681DD Charge to income tax 681DE Hire-purchase agreements 681DF Adjustments where sum obtained before payment made 681DG Sum obtained in respect of interest 681DH Sum obtained in respect of lessee's interest 681DI Disposal of interest to associate 681DJ Apportionment of payments made and of sums obtained 681DK Manner of apportionment 681DL Associates 681DM Capital sum 681DN Lease 681DO Relevant asset 681DP Relevant tax relief 682 Overview of Chapter 683 Provisions of Chapter 684 Person liable to counteraction of income tax advantage 685 Receipt of consideration in connection with distribution by or assets of close company 686 Excluded circumstances: fundamental change of ownership 687 Income tax advantage 688 Receipt of consideration representing company's assets, future receipts or trading stock (circumstance C) 689 Receipt of consideration in connection with relevant company distribution (circumstance D) 690 Receipt of assets of relevant company (circumstance E) 691 Meaning of “relevant company” in sections 689 and 690 692 Abnormal dividends: general 693 Abnormal dividends: the excessive return condition 694 Abnormal dividends: the excessive accrual condition 695 Notice of enquiry 696 Opposed notifications: statutory declarations 697 Opposed notifications: determinations by tribunal 698 Counteraction notices 698A No-counteraction notices 699 Limit on amount assessed in section 689 and 690 cases 700 Timing of assessments ... 701 Application for clearance of transactions 702 Effect of clearance notification under section 701 703 Power to obtain information 704 The tribunal 705 Appeals against counteraction notices 712 Application of Chapter where individual within section 684 dies 713 Interpretation of Chapter 714 Overview of Chapter 715 Meaning of “relevant transaction” 716 Meaning of “relevant transfer” and “transfer” 717 Meaning of “assets” etc 718 Meaning of “person abroad” etc 719 Meaning of “associated operation” 719A Other definitions 720 Charge to tax on income treated as arising under section 721 720A Transfers by closely-held companies 721 Individuals with power to enjoy income as a result of relevant transactions 721A Meaning of “protected foreign-source income” in section 721 721B Section 721A: tainting 722 When an individual has power to enjoy income of person abroad 723 The enjoyment conditions 724 Special rules where benefit provided out of income of person abroad 725 Reduction in amount charged where controlled foreign company involved 725A Recovery of tax paid as a result of section 721 726 Qualifying new residents and remittance-basis users: “foreign” deemed income 727 Charge to tax on income treated as arising under section 728 727A Transfers by closely-held companies 728 Individuals receiving capital sums as a result of relevant transactions 729 The capital receipt conditions 729A Meaning of “protected foreign-source income” in section 728 729B Recovery of tax paid as a result of section 728 730 Qualifying new residents and remittance-basis users: “foreign” deemed income 731 Charge to tax on income treated as arising under section 732 732 Non-transferors receiving a benefit as a result of relevant transactions 733 Income charged under section 731 733A Settlor liable for section 731 charge on closely-related beneficiary 733B Recipients of onward gifts 733C Cases where income treated as arising to recipient of onward gift 733D Cases where deemed income attributed to recipient of onward gift 733E Cases where settlor liable following onward gift 734 Reduction in amount charged: previous capital gains tax charge 734A Reduction in amount charged: previous settlements charge 735 Qualifying new residents and remittance-basis users: “foreign” deemed income 735A Section 735: relevant income and benefits relating to foreign deemed income 735AA Settlements to which following sections apply 735AB “Protected foreign-source income” and “transitionally protected income” 735AC Transitionally protected income not to be taxed on remittance 735AD Settlor liable for benefits charge despite being transferor 735AE Settlor liable in place of close family member 735AF Onward gifts from non-residents or qualifying new residents 735AG Deduction allowed for previous settlements charge 735B Historical liability under section 733A where remittance basis applied 735C Historical operation of section 733C or 733E where remittance basis applied 736 Exemptions: introduction 737 Exemption: all relevant transactions post-4 December 2005 transactions 738 Meaning of “commercial transaction” 739 Exemption: all relevant transactions pre-5 December 2005 transactions 740 Exemption: relevant transactions include both pre-5 December 2005 and post-4 December 2005 transactions 741 Application of section 742 (partial exemption) 742 Partial exemption where later associated operations fail conditions 742A Post-5 April 2012 transactions: exemption for genuine transactions 742B Value of certain benefits 742C Value of benefit provided by a payment by way of loan 742D Value of benefit provided by making movable property available 742E Value of benefit provided by making land available 743 No duplication of charges 744 Meaning of taking income into account in charging income tax for section 743 745 Rates of tax applicable to income charged under sections 720 and 727 etc 746 Deductions and reliefs where individual charged under section 720 or 727 747 Amounts corresponding to accrued income profits and related interest 748 Power to obtain information 749 Restrictions on particulars to be provided by relevant lawyers 750 Restrictions on particulars to be provided by banks 751 The tribunal’s jurisdiction on appeals 773 Overview of Chapter 774 Meaning of “occupation” 775 Priority of other tax provisions 776 Charge to tax on sale of occupation income 777 Conditions for sections 778 and 779 to apply 778 Income arising where capital amount other than derivative property or right obtained 779 Income arising where derivative property or right obtained 780 Transactions, arrangements, sales and realisations relevant for Chapter 781 Tracing value 782 Meaning of “other person” 783 Valuations and apportionments 784 Exemption for sales of going concerns 785 Restriction on exemption: sales of future earnings 786 Recovery of tax where consideration receivable by person not assessed 787 Recovery of tax: certificates of tax paid etc 788 Power to obtain information 789 Minor definitions 790 Overview of Chapter 791 Charge to tax on income treated as received under section 792 792 Partners claiming excess sideways or capital gains relief 793 Calculating the amount of income treated as received 794 Meaning of “the total amount of trade losses claimed” etc 795 Meaning of “post-1 December 2004 loss” 796 Charge to tax on income treated as received under section 797 797 Individuals claiming sideways or capital gains relief for film-related losses 798 Meaning of “non-taxable consideration” etc 799 Meaning of “disposal of a right of the individual to profits” etc 800 Meaning of “film-related losses” etc 801 Meaning of “capital contribution” 802 Exclusion of amounts in calculating capital contribution by a partner 803 Prohibition against double counting 804 Charge to tax on income treated as received under section 805 805 Partners claiming relief for licence-related trading losses 806 Calculation of amount of income treated as received by the individual 807 Supplementary provision relating to calculation in section 806 808 Meaning of “disposal of the licence” etc 809 Other definitions 809AZA Application of Chapter 809AZB Value of transferred income stream treated as income 809AZC Exception: amount otherwise taxed 809AZD Exception: certain annuities 809AZE Exception: transfer by way of security 809AZF Partnership shares 809AZG Interpretation 809AAZA Application of Chapter 809AAZB Relevant amount to be treated as income 809BZA Type 1 finance arrangement defined 809BZB Certain tax consequences not to have effect 809BZC Payments treated as borrower's income 809BZD Deemed interest if borrower is not a partnership 809BZE Deemed interest if borrower is a partnership 809BZF Type 2 finance arrangement defined 809BZG Relevant change in relation to partnership 809BZH Certain tax consequences not to have effect 809BZI Deemed interest 809BZJ Type 3 finance arrangement defined 809BZK Certain tax consequences not to have effect 809BZL Deemed interest 809BZM Exceptions: preliminary 809BZN Exceptions 809BZO Exceptions: relevant person 809BZP Power to make further exceptions 809BZQ Accounts 809BZR Arrangements 809BZS Assets 809CZA Loan or credit transaction defined 809CZB Certain payments treated as yearly interest 809CZC Tax charged on income transferred 809DZA Application of Chapter 809DZB Relevant amount to be treated as income 809EZA Disguised investment management fees: charge to income tax 809EZB Meaning of “management fee” in section 809EZA 809EZC Meaning of “carried interest” in section 809EZB 809EZD Sums treated as “carried interest” for purposes of section 809EZB 809EZDA Sums arising to connected persons other than companies 809EZDB Sums arising to connected company or unconnected person 809EZE Interpretation of Chapter 809EZF Disguised investment management fees: anti-avoidance 809EZG Disguised investment management fees: avoidance of double taxation 809EZH Powers to amend Chapter 809ZA Plant and machinery leases: capital receipts to be treated as income 809ZB Section 809ZA: interpretation 809ZC Section 809ZA: lease of plant and machinery and other property 809ZD Section 809ZA: expectation that relevant capital payment will not be paid 809ZE Capital payment”, “relevant capital payment” etc 809ZF Further interpretation of section 809ZA etc 809ZFA Consideration for taking over payment obligations as lessee treated as income 809ZG Tax relief schemes and arrangements 809ZH Overview of Chapter 809ZI Relievable charity donations 809ZJ Tainted donations 809ZK Circumstances in which financial advantage deemed to be obtained 809ZL Certain financial assistance to be ignored 809ZM Removal of income tax relief where donation becomes tainted in same tax year 809ZMA Clawback of income tax relief where donation becomes tainted in later tax year 809ZMB Removal or clawback of income tax relief for associated donations 809ZN Income tax charge where gift aid is withdrawn 809ZO Income tax charge where payment of trust income to charity 809ZP Connected charities 809ZQ Connected persons 809ZR Minor definitions 809A Overview of Chapter 809B Claim for remittance basis to apply 809C Claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply 809D Application of remittance basis without claim where unremitted foreign income and gains under £2,000 809E Application of remittance basis without claim: other cases 809F Effect on what is chargeable 809G Claim for remittance basis: effect on allowances etc 809H Claim for remittance basis by long-term UK resident: charge 809I Remittance basis charge: income and gains treated as remitted 809J Section 809I: order of remittances 809K Sections 809L to 809Z6: introduction 809L Meaning of “remitted to the United Kingdom” 809M Meaning of “relevant person” 809N Section 809L: gift recipients, qualifying property and enjoyment 809O Section 809L: dealings where there is a connected operation 809P Section 809L: amount remitted 809Q Sections 809L and 809P: transfers from mixed funds 809R Section 809Q: composition of mixed fund 809RZA Transfers into TRF capital account 809RZB TRF capital account 809RZC Breaches of the TRF deposit rule 809RZD Effect where 30-day deadline is met 809RA Special mixed fund rules for certain employment cases 809RB Qualifying accounts 809RC Breaches of the deposit rule 809RD Effect where 30-day deadline is met 809S Section 809Q: anti-avoidance 809T Foreign chargeable gains accruing on disposal made otherwise than for full consideration 809U Deemed income or gains not to be regarded as remitted before time when they are treated as arising or accruing 809UA Money used for payments on account 809V Money paid to the Commissioners 809VA Money or other property used to make investments 809VB Failure to invest within 45 days 809VC Qualifying investments 809VD Condition A 809VE Commercial trades 809VF Condition B 809VG Income or gains treated as remitted following certain events 809VH Meaning of “potentially chargeable event” 809VI The appropriate mitigation steps 809VIA Application of appropriate mitigation steps where TRF capital involved 809VJ The grace period allowed for the appropriate mitigation steps 809VK Retention of funds to meet CGT liabilities 809VL Effect of taking appropriate mitigation steps within grace period 809VM Cases involving tax deposits 809VN Order of disposals etc 809VO Investments made from mixed funds 809W Consideration for certain services 809X Exempt property 809Y Property that ceases to be exempt property treated as remitted 809YA Exception to section 809Y: proceeds taken offshore or invested 809YB Condition E: supplementary 809YC Effect of disapplying section 809Y 809YD Chargeable gains accruing on sales of exempt property 809YE Exception to section 809Y: gifts to the nation 809YF Exception to section 809Y: compensation taken offshore or invested 809Z Public access rule: general 809Z1 Public access rule: relevant VAT relief 809Z2 Personal use rule 809Z3 Repair rule 809Z4 Temporary importation rule 809Z5 Notional remitted amount 809Z6 Exempt property: other interpretation 809Z7 Meaning of “foreign income and gains” etc 809Z8 Meaning of “the disposal proceeds” 809Z9 Taking proceeds etc offshore or investing them 809Z10 General interpretation 810 Overview of Chapter 811 Limit on liability to income tax of non-UK residents 812 Case where limit not to apply 812A Temporary non-residents 813 Meaning of “disregarded income” 814 Meaning of “disregarded transaction income” 815 Limit on liability to income tax of non-UK resident companies 816 Meaning of “disregarded company income” 817 The independent broker conditions 818 The independent investment manager conditions 819 Investment managers: the 20% rule 820 Meaning of “qualifying period” 821 Meaning of “relevant disregarded income” 822 Meaning of “beneficial entitlement” 823 Treatment of transactions where requirements of 20% rule not met 824 Application of 20% rule to collective investment schemes 825 Meaning of “disregarded savings and investment income” 826 Meaning of “disregarded annual payments” 827 Meaning of “investment manager” and “investment transaction” 828 Transactions through brokers and investment managers 829 Residence of individuals temporarily abroad 830 Residence of individuals working abroad 831 Foreign income of individuals in the United Kingdom for temporary purpose 832 Employment income of individuals in the United Kingdom for temporary purpose 833 Visiting forces etc 834 Residence of personal representatives 835 Residence rules for trustees ... 835A Residence of companies 835B Domicile for income tax purposes of overseas electors 835BA Deemed domicile 835C Overview of Chapter 835D Income tax chargeable on company's income: application 835E Branch or agency treated as UK representative 835F Trade or profession carried on in partnership 835G Agents 835H Brokers 835I Investment managers 835J Persons acting under alternative finance arrangements 835K Lloyd's agents 835L The independent broker conditions 835M The independent investment manager conditions 835N Investment managers: the 20% rule 835O Meaning of “qualifying period”, “relevant disregarded income” and “beneficial entitlement” 835P Treatment of transactions where 20% rule not met 835Q Application of 20% rule to collective investment schemes 835R Supplementary provision 835S Interpretation of Chapter 835T Introduction to Chapter 835U Obligations and liabilities of UK representative 835V Exceptions: notices and information 835W Exceptions: criminal offences and penalties etc 835X Indemnities 835Y Meaning of “independent agent” 836 Jointly held property 837 Jointly held property: declarations of unequal beneficial interests 837A Overview of Chapter 837B Application of Chapter 837C Charge to income tax on winding up receipts 837D Transfer of rights to payment 837E Allowable deductions 837F Election to carry back 837G Relationship of Chapter with other income tax provisions 837H Interpretation of Chapter 838 Local authorities and local authority associations 838A Asbestos compensation settlements 839 Issue departments of the Reserve Bank of India and the State Bank of Pakistan 840 Government securities held by non-UK resident central banks 841 Official agents of Commonwealth countries etc 842 UK Economic Interest Groupings and European Economic Interest Groupings 843 Restriction of deductions for annual payments 844 Letters patent etc: exempting provisions 845 Extra return to be treated as interest etc 846 Interpretation of section 845 847 Overview of Part 848 Income tax deducted at source treated as income tax paid by recipient 849 Interaction with other Income Tax Acts provisions 850 Overview of Chapter 851 Duty to deduct sums representing income tax 852 Power to make regulations disapplying section 851 853 Meaning of “deposit-taker” 854 Power to prescribe persons as deposit-takers 855 Meaning of “investment” and “deposit” 856 Investments which are relevant investments 857 Investments to be treated as being or as not being relevant investments 858 Declarations of non-UK residence: individuals 859 Declarations of non-UK residence: Scottish partnerships 860 Declarations of non-UK residence: personal representatives 861 Declarations of non-UK residence: settlements 862 Inspection of declarations 863 General client account deposits 864 Qualifying uncertificated eligible debt security units 865 Qualifying certificates of deposit 866 Qualifying time deposits 867 Lloyd's premium trust funds 868 Investments held outside the United Kingdom 869 Sale and repurchase of securities 870 Other investments 871 Power to make regulations to give effect to Chapter 872 Power to make orders amending Chapter 873 Discretionary or accumulation settlements 874 Duty to deduct from certain payments of yearly interest 875 Interest paid by building societies 876 Interest paid by deposit-takers 877 UK public revenue dividends 878 Interest paid by banks 879 Interest paid on advances from banks 880 Interest paid on advances from building societies 881 National Savings Bank interest 882 Quoted Eurobond interest 883 Interest on loan to buy life annuity 884 Relevant foreign income 885 Authorised persons dealing in financial instruments 886 Interest paid by recognised clearing houses etc 887 Payments made by registered societies 888 Statutory interest 888A Qualifying private placements 888B Designated dividends of investment trusts 888C Interest distributions of certain open-ended investment companies 888D Interest distribution of certain authorised unit trusts 888DA Payments of interest by a QAHC 888E Interest on certain peer-to-peer lending 889 Payments in respect of building society securities 890 Overview of Chapter 891 Meaning of “UK public revenue dividend” 892 Duty to deduct from certain UK public revenue dividends 893 Payments of UK public revenue dividends which are payable gross 894 Treasury directions 895 Deduction at source application 896 Withdrawal of application 897 Power to make regulations 898 Overview of Chapter 899 Meaning of “qualifying annual payment” 900 Deduction from commercial payments made by individuals 901 Deduction from annual payments made by other persons 902 Meaning of “applicable rate” in section 901 903 Deduction from patent royalties 904 Annual payments for dividends or non-taxable consideration 905 Interpretation of Chapter 906 Certain royalties etc where usual place of abode of owner is abroad 907 Meaning of “intellectual property” 908 Royalty payments etc made through UK resident agents 909 Royalty payments: further provision 910 Proceeds of a sale of patent rights: payments to non-UK residents 911 Double taxation arrangements: deduction at treaty rate 912 Power to make directions disapplying section 911 913 Interpretation of sections 911 and 912 914 European Union 915 Power to make directions disapplying section 914 916 Duty of payee to notify if payment not exempt 917 Supplementary 917A Tax avoidance arrangements 918 Manufactured dividends on UK shares: Real Estate Investment Trusts 919 Manufactured interest on UK securities: payments by UK residents etc 920 Foreign payers of manufactured interest: the reverse charge 921 Cases where interest on underlying securities paid gross 922 Manufactured overseas dividends: payments by UK residents etc 923 Foreign payers of manufactured overseas dividends: the reverse charge 924 Power to reduce section 923 liability 925 Power to provide set-off entitlement 925A Creditor repos 925B Debtor repos 925C Actual payments ignored if section 925A ... applies 925D Power to modify repo sections 925E Cases where section 925D applies: non-standard repos 925F Interpretation of the repo sections 926 Interpretation of Chapter 927 Regulation-making powers: general 928 Chargeable payments connected with exempt distributions 929 Overview of Chapter 930 Exception from duties to deduct sums representing income tax 931 Power to make directions disapplying section 930 932 Meaning of “qualifying partnership” 933 UK resident companies 934 Non-UK resident companies 935 PEP and ISA managers 936 Recipients who are to be paid gross 937 Partnerships 938 Consequences of reasonable but incorrect belief 939 Duty to retain bonds where issue treated as payment of interest 940 Exception from duty to retain bonds 940A No appropriate bond or combination of bonds 941 Deemed payments to unit holders and deemed deductions of income tax 942 Income tax to be collected from trustees 943 Calculation of trustees' income pool ... Treatment of cases involving double tax relief 943B The “foreign element” of a deemed deduction or deemed income 943C Calculation of trustees' double tax relief pool 943D Annual statements 944 Directions for deduction from payments to non-UK residents 945 Overview of Chapter 946 Payments within this section 947 Return periods 948 Meaning of “accounting period” 949 Payments in an accounting period 950 Payments otherwise than in an accounting period 951 Collection and payment of income tax 952 Conditions for a set-off claim 953 How a set-off claim works 954 Proceedings begun after a set-off claim is made 955 Proceedings begun before a set-off claim is made 956 Assessments where section 946 payment included in return 957 Assessments in other cases 958 Payer's duty to deliver amended return 959 Application of Income Tax Acts provisions about time limits for assessments 960 Further provisions about assessments 961 Relationship between Chapter and Income Tax Acts powers 962 Power to make regulations modifying Chapter 963 Collection of income tax on certain payments by other persons 963A Power to make regulations modifying section 963 964 Collection through self-assessment return 965 Overview of sections 966 to 970 966 Duty to deduct and account for sums representing income tax 967 Calculation of sums representing income tax 968 Treatment of sums representing income tax 969 Regulations 970 Supplementary 971 Income tax due in respect of income of non-resident landlords 972 Regulations under section 971 973 Income tax due in respect of distributions 974 Regulations under section 973 975 Statements about deduction of income tax 975A Statements about certain payments of interest 976 Arrangements for payments of interest less tax or at specified net rate 977 Payments to companies 978 Application to public departments 979 Designated international organisations: exceptions from duties to deduct 979A FSCS payments representing interest 980 Derivative contracts: exception from duties to deduct 981 Foreign currency securities etc: exception from duties to deduct 981A Offshore receipts in respect of intangible property: exception from duties to deduct 982 Income tax is calculated by reference to gross amounts 983 Meaning of “deposit” 984 Meaning of “financial instrument” 985 Meaning of “qualifying certificate of deposit” 986 Meaning of “qualifying uncertificated eligible debt security unit” 987 Meaning of “quoted Eurobond” 988 Overview of Chapter 989 The definitions 990 Meaning of “Act” 991 Meaning of “bank” 992 Meaning of “company” 993 Meaning of “connected” persons 994 Meaning of “connected” persons: supplementary 995 Meaning of “control” 996 Meaning of “farming” and related expressions 997 Meaning of “generally accepted accounting practice” and related expressions 998 Meaning of “grossing up” 998A Meaning of “hire-purchase agreement” 999 Meaning of “local authority” 1000 Meaning of “local authority association” 1001 Meaning of “offshore installation” 1002 Regulations about the meaning of “offshore installation” 1003 Meaning of “oil and gas exploration and appraisal” 1004 Meaning of “property investment LLP” 1005 Meaning of “recognised stock exchange”etc 1006 Meaning of “research and development” 1007 Meaning of “unit trust scheme” 1007A Meaning of “permanent establishment” 1008 Scotland 1009 Sources of income within the charge to income tax or corporation tax 1010 Application of Income Tax Acts to recognised investment exchanges 1011 References to married persons, or civil partners, living together 1012 Relationship between rules on highest part of total income 1013 Territorial sea of the United Kingdom 1014 Orders and regulations 1015 Territorial scope of charges under certain provisions to which section 1016 applies 1016 Table of provisions to which this section applies 1017 Abbreviated references to Acts 1018 “Act” to include Scottish and Northern Ireland legislation in some cases 1019 Meaning of “certificate of deposit” 1020 Claims and elections 1021 Application of definitions of “connected” persons and “control” 1022 Meaning of “debenture” 1023 Meaning of “double taxation arrangements” 1024 Meaning of “gilt-edged securities” 1025 Meaning of “modified net income” 1026 Meaning of “non-qualifying income” for the purposes of section 1025 1027 Minor and consequential amendments 1028 Power to make consequential provision 1029 Power to undo changes 1030 Transitional provisions and savings 1031 Repeals and revocations 1032 Index of defined expressions 1033 Extent 1034 Commencement 1035 Short title SCHEDULE 1 Minor and consequential amendments SCHEDULE 2 Transitionals and savings SCHEDULE 3 Repeals and revocations SCHEDULE 4 Index of defined expressions
What to do with it
As published
86 Trade transferred to a company
(1) This section applies if—
(a) a trade is carried on by an individual otherwise than as a partner in a firm or by individuals in partnership,
(b) the trade is transferred to a company,
(c) the consideration for the transfer is wholly or mainly the allotment of shares to the individual or individuals, and
(d) in the case of any individual to whom, or to whose nominee or nominees, shares are so allotted, the individual's total income for a relevant tax year includes income derived by the individual from the company.
(2) For the purposes of carry-forward trade loss relief, the income so derived is treated as—
(a) profits of the trade of the relevant tax year carried on by the individual, or
(b) if the trade was carried on by the individual in partnership, profits of the individual's notional trade of the relevant tax year.
(3) The tax year in which the transfer is made is a relevant one if—
(a) the individual is the beneficial owner of the shares allotted as mentioned above, and
(b) the company carries on the trade,
throughout the period beginning with the date of the transfer and ending with the next 5 April.
(4) Otherwise a tax year is a relevant one if—
(a) the individual is the beneficial owner of the shares allotted as mentioned above, and
(b) the company carries on the trade,
throughout the tax year.
(5) The income derived from the company may be by way of dividends on the shares or otherwise.
(6) This section applies to businesses which are not trades as it applies to trades.
Your wording
Your change, as a redline
86 Trade transferred to a company
(1) This section applies if—
(a) a trade is carried on by an individual otherwise than as a partner in a firm or by individuals in partnership,
(b) the trade is transferred to a company,
(c) the consideration for the transfer is wholly or mainly the allotment of shares to the individual or individuals, and
(d) in the case of any individual to whom, or to whose nominee or nominees, shares are so allotted, the individual's total income for a relevant tax year includes income derived by the individual from the company.
(2) For the purposes of carry-forward trade loss relief, the income so derived is treated as—
(a) profits of the trade of the relevant tax year carried on by the individual, or
(b) if the trade was carried on by the individual in partnership, profits of the individual's notional trade of the relevant tax year.
(3) The tax year in which the transfer is made is a relevant one if—
(a) the individual is the beneficial owner of the shares allotted as mentioned above, and
(b) the company carries on the trade,
throughout the period beginning with the date of the transfer and ending with the next 5 April.
(4) Otherwise a tax year is a relevant one if—
(a) the individual is the beneficial owner of the shares allotted as mentioned above, and
(b) the company carries on the trade,
throughout the tax year.
(5) The income derived from the company may be by way of dividends on the shares or otherwise.
(6) This section applies to businesses which are not trades as it applies to trades.
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.