Law

Income Tax Act 2007

United Kingdom · statute

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In force since 2026-09-16, as the publisher states.

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Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 1,664 provisions
  1. Title and introductory text
  2. 1 Overview of Income Tax Acts
  3. 2 Overview of Act
  4. 3 Overview of charges to income tax
  5. 4 Income tax an annual tax
  6. 5 Income tax and companies
  7. 6 The ... basic rate , higher rate and additional rate
  8. 6A The Scottish basic, higher and additional rates
  9. 6B The Welsh rates
  10. 6C The default basic, higher and additional rates
  11. 6D The property basic, higher and additional rates
  12. 7 The starting rate for savings and savings nil rate
  13. 7A The savings basic, higher and additional rates
  14. 8 The dividend nil rate, dividend ordinary rate, dividend upper rate and dividend additional rate
  15. 9 The trust rate , property trust rate, savings trust rate and dividend trust rate
  16. 9A Overview of sections 10 to 15
  17. 10 Income charged at the ... basic , higher and additional rates: individuals
  18. 11 Income charged at the default basic rate: non-individuals
  19. 11A Income charged at Scottish rates
  20. 11B Income charged at the Welsh basic, higher and additional rates
  21. 11C Income charged at the default basic, higher and additional rates: non-UK resident individuals
  22. 11CA Income charged at the property basic, higher and additional rates: individuals
  23. 11CB Income charged at the Welsh property basic, higher and additional rates: individuals
  24. 11CC Income charged at the property basic rate: non-individuals
  25. 11D Income charged at the savings basic, higher and additional rates : individuals
  26. 11DA Income charged at the savings basic rate: non-individuals
  27. 12 Income charged at the starting rate for savings
  28. 12A Savings income charged at the savings nil rate
  29. 12B Individual's entitlement to a savings allowance
  30. 13 Income charged at the dividend ordinary , dividend upper and dividend additional rates: individuals
  31. 13A Income charged at the dividend nil rate
  32. 14 Income charged at the dividend ordinary rate: non-individuals
  33. 15 Income charged at the trust rate , the property trust rate, the savings trust rate and the dividend trust rate
  34. 16 Savings and dividend income to be treated as highest part of total income
  35. 16A Treatment of property income in hierarchy of total income
  36. 17 Repayment: tax paid at greater rate instead of starting rate for savings or savings nil rate
  37. 17A Meaning of “property income”
  38. 18 Meaning of “savings income”
  39. 19 Meaning of “dividend income”
  40. 20 The starting rate limit and the basic rate limit
  41. 21 Indexation of the basic rate limit and starting rate limit for savings
  42. 22 Overview of Chapter
  43. 23 The calculation of income tax liability
  44. 24 Reliefs deductible at Step 2
  45. 24A Limit on Step 2 deductions
  46. 24B Calculation of net income at Step 2 for low income estates and trusts
  47. 25 Reliefs and allowances deductible at Steps 2 and 3: supplementary
  48. 26 Tax reductions
  49. 27 Order of deducting tax reductions: individuals
  50. 28 Order of deducting tax reductions: other persons
  51. 29 Tax reductions: supplementary
  52. 30 Additional tax
  53. 31 Total income: supplementary
  54. 32 Liability not dealt with in the calculation
  55. 33 Overview of Part
  56. 34 Allowances under Chapter
  57. 35 Personal allowance
  58. 36 Personal allowance for those born after 5 April 1938 but before 6 April 1948
  59. 37 Personal allowance for those born before 6 April 1938
  60. 38 Blind person's allowance
  61. 39 Transfer of part of blind person's allowance to a spouse or civil partner
  62. 40 Election for transfer of allowance under section 39
  63. 41 Allowances in year of death
  64. 42 Tax reductions under Chapter
  65. 43 Meaning of “the minimum amount”
  66. 43A Meaning of “relevant conversion”
  67. 44 Election for new rules to apply
  68. 45 Marriages before 5 December 2005
  69. 46 Marriages and civil partnerships on or after 5 December 2005
  70. 47 Election by individual to transfer relief under section 45 or 46
  71. 48 Joint election to transfer relief under section 45 or 46
  72. 49 Election for partial transfer back of relief
  73. 50 Procedure for making and withdrawing elections under sections 47 to 49
  74. 51 Transfer of unused relief
  75. 52 Transfer back of unused relief
  76. 53 Transfer of unused relief: general
  77. 54 Tax reductions in the year of marriage or entry into civil partnership
  78. 55 Sections 45 to 53: supplementary
  79. 55A Tax reduction under Chapter
  80. 55B Tax reduction: entitlement
  81. 55C Election to reduce personal allowance
  82. 55D Procedure for elections under section 55C
  83. 55E Limitation on number of tax reductions and elections
  84. 56 Residence etc of claimants
  85. 57 Indexation of allowances
  86. 57A Personal allowance linked to national minimum wage
  87. 58 Meaning of “adjusted net income”
  88. 59 Overview of Part
  89. 60 Overview of Chapter
  90. 61 Non-partners: losses of a tax year
  91. 62 Partners: losses of a tax year etc
  92. 63 Prohibition against double counting
  93. 64 Deduction of losses from general income
  94. 65 How relief works
  95. 66 Restriction on relief unless trade is commercial
  96. 67 Restriction on relief in case of farming or market gardening
  97. 68 Reasonable expectation of profit
  98. 69 Whether trade is the same trade
  99. 70 Determining losses in previous tax years
  100. 71 Treating trade losses as CGT losses
  101. 72 Relief for individuals for losses in first 4 years of trade
  102. 73 How relief works
  103. 74 Restrictions on relief unless trade is commercial etc
  104. 74ZA No relief for tax-generated losses
  105. 74A Reliefs in any tax year not to exceed cap for tax year
  106. 74B No relief for tax-generated losses
  107. 74C Meaning of “non-active capacity” for purposes of section 74A etc
  108. 74D Meaning of “qualifying film expenditure” for purposes of sections 74ZA and 74A
  109. 74E No relief where cash basis used to calculate losses
  110. 75 Trade leasing allowances given to individuals
  111. 76 First-year allowances and annual investment allowances: introduction
  112. 77 First-year allowances: partnerships with companies
  113. 78 First-year allowances and annual investment allowances: arrangements to reduce tax liabilities
  114. 79 Capital allowances restrictions: supplementary
  115. 80 Ring fence income
  116. 81 Dealings in commodity futures
  117. 82 Exploitation of films
  118. 83 Carry forward against subsequent trade profits
  119. 84 How relief works
  120. 85 Use of trade-related interest and dividends if trade profits insufficient
  121. 86 Trade transferred to a company
  122. 87 Ring fence trades
  123. 88 Carry forward of certain interest as loss
  124. 89 Carry back of losses on a permanent cessation of a trade
  125. 90 Losses that are “terminal losses”
  126. 91 How relief works
  127. 92 Use of trade-related interest and dividends if trade profits insufficient
  128. 93 Mineral extraction trade and carry back of balancing allowances
  129. 94 Carry back of certain interest as loss
  130. 95 Foreign trades etc: reliefs only against foreign income
  131. 96 Post-cessation trade relief
  132. 97 Meaning of “qualifying payment”
  133. 98 Meaning of “qualifying event” etc
  134. 98A Denial of relief for tax-generated payments or events
  135. 99 Reduction of relief for unpaid trade expenses
  136. 100 Prohibition against double counting
  137. 101 Treating excess post-cessation trade relief as CGT loss
  138. 102 Overview of Chapter
  139. 103 Meaning of “sideways relief”, “capital gains relief” and “firm”
  140. 103A Meaning of “limited partner”
  141. 103B Meaning of “non-active partner” etc
  142. 103C Limit on reliefs in any tax year not to exceed cap for tax year
  143. 103D Meaning of “qualifying film expenditure”
  144. 104 Restriction on reliefs for limited partners
  145. 105 Meaning of “contribution to the firm”
  146. 106 Meaning of “limited partner”
  147. 107 Restriction on reliefs for members of LLPs
  148. 108 Meaning of “contribution to the LLP”
  149. 109 Unrelieved losses brought forward
  150. 110 Restriction on reliefs for non-active partners in early tax years
  151. 111 Meaning of “contribution to the firm”
  152. 112 Meaning of “early tax year”
  153. 113 Unrelieved losses brought forward
  154. 113A Exclusion of amounts contributed to access relief
  155. 114 Power to exclude other amounts
  156. 115 Restrictions on reliefs for firms exploiting films
  157. 116 Exclusion from restrictions under section 115: certain film expenditure
  158. 116A Excess loss allocation to partners who are individuals
  159. 117 Overview of Chapter
  160. 118 Carry forward against subsequent property business profits
  161. 119 How relief works
  162. 120 Deduction of property losses from general income
  163. 121 How relief works
  164. 122 Meaning of “the applicable amount of the loss”
  165. 123 Meaning of “the loss has a capital allowances connection” and “the business has a relevant agricultural connection”
  166. 124 Supplementary
  167. 125 Post-cessation property relief
  168. 126 Treating excess post-cessation property relief as CGT loss
  169. 127 UK furnished holiday lettings business treated as trade
  170. 127ZA EEA furnished holiday lettings business treated as trade
  171. 127A No relief for tax-generated losses attributable to annual investment allowance
  172. 127B No relief for tax-generated agricultural expenses
  173. 127BA Restriction of relief: cash basis
  174. 127C Excess loss allocation to partners who are individuals
  175. 128 Employment loss relief against general income
  176. 129 How relief works
  177. 130 Treating loss in employment or office as CGT loss
  178. 131 Share loss relief
  179. 132 Entitlement to claim
  180. 133 How relief works
  181. 134 Qualifying trading companies
  182. 135 Subscriptions for shares
  183. 136 Disposals of new shares
  184. 137 The trading requirement
  185. 138 Ceasing to meet trading requirement because of administration or receivership
  186. 139 The control and independence requirement
  187. 140 The qualifying subsidiaries requirement
  188. 141 The property managing subsidiaries requirement
  189. 142 The gross assets requirement
  190. 143 The unquoted status requirement
  191. 144 Power to amend requirements by Treasury order
  192. 145 Relief after an exchange of shares for shares in another company
  193. 146 Substitution of new shares for old shares
  194. 147 Limits on share loss relief
  195. 148 Disposal of shares forming part of mixed holding
  196. 149 Section 148: supplementary
  197. 150 Deemed time of issue for certain shares
  198. 151 Interpretation of Chapter
  199. 152 Losses from miscellaneous transactions
  200. 153 How relief works
  201. 154 Transactions in deposit rights
  202. 154A Anti-avoidance
  203. 155 Time limit for claiming relief
  204. 156 Meaning of “EIS relief” and commencement
  205. 157 Eligibility for EIS relief
  206. 157A Risk-to-capital condition
  207. 158 Form and amount of EIS relief
  208. 159 Periods A, B and C
  209. 160 Overview of other Chapters of Part
  210. 161 Other tax reliefs relating to EIS
  211. 162 Overview of Chapter
  212. 163 The no connection with the issuing company requirement
  213. 164 The no linked loans requirement
  214. 164A The existing shareholdings requirement
  215. 165 The no tax avoidance requirement
  216. 166 Connection with issuing company
  217. 167 Employees, directors and partners
  218. 168 Directors excluded from connection
  219. 169 Directors qualifying for relief despite connection
  220. 170 Persons interested in capital etc of company
  221. 171 Persons subscribing for shares under certain arrangements
  222. 172 Overview of Chapter
  223. 173 The shares requirement
  224. 173A The maximum amount raised annually through risk finance investments requirement
  225. 173AA Maximum risk finance investments at the issue date requirement
  226. 173AB Maximum risk finance investments during period B requirement
  227. 173B The spending of money raised by SEIS investment requirement
  228. 174 The purpose of the issue requirement
  229. 175 The use of the money raised requirement
  230. 175A The permitted maximum age requirement
  231. 176 The minimum period requirement
  232. 177 The no pre-arranged exits requirement
  233. 178 The no tax avoidance requirement
  234. 178A The no disqualifying arrangements requirement
  235. 179 Meaning of “qualifying business activity”
  236. 180 Overview of Chapter
  237. 180A The UK permanent establishment requirement
  238. 180B The financial health requirement
  239. 181 The trading requirement
  240. 182 Ceasing to meet trading requirement because of administration or receivership
  241. 183 The issuing company to carry on the qualifying business activity requirement
  242. 184 The unquoted status requirement
  243. 185 The control and independence requirement
  244. 186 The gross assets requirement
  245. 186A The number of employees requirement
  246. 187 The qualifying subsidiaries requirement
  247. 188 The property managing subsidiaries requirement
  248. 189 Meaning of “qualifying trade”
  249. 190 Meaning of “qualifying 90% subsidiary”
  250. 191 Meaning of “qualifying subsidiary”
  251. 191A Meaning of “permanent establishment”
  252. 192 Meaning of “excluded activities”
  253. 193 Excluded activities: wholesale and retail distribution
  254. 194 Excluded activities: leasing of ships
  255. 195 Excluded activities: receipt of royalties and licence fees
  256. 196 Excluded activities: property development
  257. 196A Excluded activities: shipbuilding
  258. 196B Excluded activities: producing coal
  259. 196C Excluded activities: producing steel
  260. 197 Excluded activities: hotels and comparable establishments
  261. 198 Excluded activities: nursing homes and residential care homes
  262. 198A Excluded activities: ... export of electricity
  263. 198B Excluded activities: subsidised generation of heat and subsidised production of gas or fuel
  264. 199 Excluded activities: provision of services or facilities for another business
  265. 200 Power to amend by Treasury order
  266. 201 Attribution of EIS relief to shares
  267. 202 Time for making claims for EIS relief
  268. 203 Entitlement to claim
  269. 204 Compliance certificates
  270. 205 Compliance statements
  271. 206 Appeal against refusal to authorise compliance certificate
  272. 207 Penalties for fraudulent certificate or statement etc
  273. 208 Overview of Chapter
  274. 209 Disposal of shares
  275. 210 Cases where maximum EIS relief not obtained
  276. 211 Call options
  277. 212 Put options
  278. 213 Value received by the investor
  279. 214 Value received: receipts of insignificant value
  280. 215 Meaning of “receipts of insignificant value”
  281. 216 When value is received
  282. 217 The amount of value received
  283. 218 Value received where there is more than one issue of shares
  284. 219 Value received where part of share issue treated as made in previous tax year
  285. 220 Cases where maximum EIS relief not obtained
  286. 221 Receipts of value by and from connected persons etc
  287. 222 Receipt of replacement value
  288. 223 Section 222: supplementary
  289. 224 Repayments etc of share capital to other persons
  290. 225 Insignificant repayments ignored for purposes of section 224
  291. 226 Amount of repayments etc where there is more than one issue of shares
  292. 227 Single issue affecting more than one individual
  293. 228 Single issue treated as made partly in previous tax year
  294. 229 Maximum relief not obtained for share issue
  295. 230 Repayment of authorised minimum within 12 months
  296. 231 Restriction on withdrawal of relief under section 224
  297. 232 Acquisition of a trade or trading assets
  298. 233 Acquisition of share capital
  299. 234 Relief subsequently found not to have been due
  300. 235 Assessments for the withdrawal or reduction of EIS relief
  301. 236 Appeals against section 234(3)(b) notices
  302. 237 Time limits for assessments
  303. 238 Cases where assessment not to be made
  304. 239 Date from which interest is chargeable
  305. 240 Information to be provided by the investor
  306. 241 Information to be provided by the issuing company etc
  307. 242 Power to require information where section 240 or 241 applies or could have applied
  308. 243 Power to require information in other cases
  309. 244 Obligations of secrecy
  310. 245 Transfers between spouses or civil partners
  311. 246 Identification of shares on a disposal
  312. 247 Continuity of EIS relief where issuing company is acquired by new company
  313. 248 Carry over of obligations etc where EIS relief attributed to new shares
  314. 249 Substitution of new shares for old shares
  315. 250 Nominees and bare trustees
  316. 251 Approved knowledge-intensive fund as nominee
  317. 251A Powers to amend Chapters 2 to 4 by Treasury regulations
  318. 252 Meaning of a company being “in administration” or “in receivership”
  319. 252A Meaning of “knowledge-intensive company”
  320. 252B Knowledge-intensive company reaching turnover of £200,000
  321. 253 Meaning of “associate”
  322. 254 Meaning of “disposal of shares”
  323. 255 Meaning of “issue of shares”
  324. 256 Meaning of “the termination date”
  325. 256A Meaning of “the EIS original rate”
  326. 256B Meaning of “specified Northern Ireland company”
  327. 257 Minor definitions etc
  328. 257A Meaning of “SEIS relief” and commencement
  329. 257AA Eligibility for SEIS relief
  330. 257AAA Risk-to-capital condition
  331. 257AB Form and amount of SEIS relief
  332. 257AC Meaning of “period A” and “period B”
  333. 257AD Overview of other Chapters of Part
  334. 257AE CGT reliefs relating to SEIS
  335. 257B Overview of Chapter
  336. 257BA The no employee investors requirement
  337. 257BB The no substantial interest in the issuing company requirement
  338. 257BC The no related investment arrangements requirement
  339. 257BD The no linked loan requirement
  340. 257BE The no tax avoidance requirement
  341. 257BF Persons with a substantial interest in a company
  342. 257C Overview of Chapter
  343. 257CA The shares requirement
  344. 257CB The purpose of the issue requirement
  345. 257CC The spending of the money raised requirement
  346. 257CD The no pre-arranged exits requirement
  347. 257CE The no tax avoidance requirement
  348. 257CF The no disqualifying arrangements requirement
  349. 257D Overview of Chapter
  350. 257DA The trading requirement
  351. 257DB Ceasing to meet trading requirement: administration etc
  352. 257DC The issuing company to carry on the qualifying business activity
  353. 257DD The UK permanent establishment requirement
  354. 257DE The financial health requirement
  355. 257DF The unquoted status requirement
  356. 257DG The control and independence requirement
  357. 257DH The no partnerships requirement
  358. 257DI The gross assets requirement
  359. 257DJ The number of employees requirement
  360. 257DK No previous other risk capital scheme investments
  361. 257DL The amount raised through the SEIS
  362. 257DM The qualifying subsidiaries requirement
  363. 257DN The property managing subsidiaries requirement
  364. 257E Attribution of SEIS relief to shares
  365. 257EA Time for making claims for SEIS relief
  366. 257EB Entitlement to claim
  367. 257EC Compliance certificates
  368. 257ED Compliance statements
  369. 257EE Appeal against refusal to authorise compliance certificate
  370. 257EF Penalties for fraudulent certificate or statement etc
  371. 257EG Power to amend sections 257EC and 257ED
  372. 257F Overview of Chapter
  373. 257FA Disposal of shares
  374. 257FB Cases where maximum SEIS relief not obtained
  375. 257FC Call options
  376. 257FD Put options
  377. 257FE Value received by the investor
  378. 257FF Value received: receipts of insignificant value
  379. 257FG Meaning of “a receipt of insignificant value”
  380. 257FH When value is received
  381. 257FI The amount of value received
  382. 257FJ Value received where there is more than one issue
  383. 257FK Value received where part of issue treated as made in previous tax year
  384. 257FL Cases where maximum SEIS relief not obtained
  385. 257FM Receipts of value by and from connected persons etc
  386. 257FN Receipt of replacement value
  387. 257FO Section 257FN: supplementary
  388. 257FP Acquisition of trade or trading assets
  389. 257FQ Acquisition of share capital
  390. 257FR Relief subsequently found not to have been due
  391. 257G Assessments for the withdrawal or reduction of SEIS relief
  392. 257GA Appeals against section 257FR(3)(b) notices
  393. 257GB Time limits for assessments
  394. 257GC Cases where assessments not to be made
  395. 257GD Date from which interest is chargeable
  396. 257GE Information to be provided by the investor
  397. 257GF Information to be provided by the issuing company etc
  398. 257GG Power to require information where section 257GE or 257GF applies or could have applied
  399. 257GH Power to require information in other cases
  400. 257GI Obligations of secrecy
  401. 257H Transfers between spouses or civil partners
  402. 257HA Identification of shares on a disposal
  403. 257HB Continuity of SEIS relief where issuing company is acquired by new company
  404. 257HC Carry over of obligations etc where SEIS relief attributed to new shares
  405. 257HD Substitution of new shares for old shares
  406. 257HE Nominees and bare trustees
  407. 257HF Meaning of “new qualifying trade”
  408. 257HG Meaning of “qualifying business activity”
  409. 257HH Meaning of “disposal of shares”
  410. 257HI Meaning of “issue of shares”
  411. 257HJ Minor definitions
  412. 257J Meaning of “SI relief” and “social enterprise”
  413. 257JA Form and amount of relief
  414. 257JB Meaning of “community benefit society”
  415. 257JC Charities that are trusts
  416. 257JD Accreditation as a social impact contractor
  417. 257JE Meaning of “social impact contract”
  418. 257JF Accreditations: supplementary provisions
  419. 257JG Period of accreditation as a social impact contractor
  420. 257JH Functions of Ministers of the Crown under sections 257JD to 257JG
  421. 257K Eligibility for SI relief
  422. 257KA Key to reading the rest of the Part
  423. 257KB When investment is made, and “investment date”
  424. 257KC “Shorter applicable period” and “longer applicable period”
  425. 257L Investment to be in new shares or new qualifying debt investments
  426. 257LA Condition that the amount invested must have been paid over
  427. 257LB The no pre-arranged exits requirements
  428. 257LC The no risk avoidance requirement
  429. 257LD The no linked loans requirement
  430. 257LDA The existing investments requirement
  431. 257LE The no tax avoidance requirement
  432. 257LEA The no disqualifying arrangements requirement
  433. 257LF Restrictions on being an employee, partner or paid director
  434. 257LG The requirement not to be interested in capital etc of social enterprise
  435. 257LH Requirement for no collusion with a non-qualifying investor
  436. 257M The continuing to be a social enterprise requirement
  437. 257MA The amount raised from investments potentially eligible for relief
  438. 257MB Power to amend limits on amounts raised
  439. 257MC The gross assets requirement
  440. 257MD The unquoted status requirement
  441. 257ME The control and independence requirements
  442. 257MF The qualifying subsidiaries requirement
  443. 257MG The property-managing subsidiaries requirement
  444. 257MH The number of employees requirement
  445. 257MI The no partnership requirement
  446. 257MIA The financial health requirement
  447. 257MJ The trading requirement
  448. 257MK Ceasing to meet trading requirement: administration or receivership
  449. 257ML The issue must be to raise money for chosen trade or preparing for it
  450. 257MM Requirement to use money raised and to trade for minimum period
  451. 257MN The social enterprise must carry on the chosen trade
  452. 257MNA Maximum amount where investment made in first 7 years
  453. 257MNB Section 257MNA: supplementary
  454. 257MNC Maximum amount for cases outside section 257MNA
  455. 257MND Limit on investment in shorter applicable period
  456. 257MNE Power to amend limits on amounts that may be invested
  457. 257MP Meaning of “qualifying trade”
  458. 257MQ Meaning of “excluded activity”
  459. 257MQA Excluded activities: nursing homes and residential care homes
  460. 257MR Excluded activities: property development
  461. 257MS Excluded activity: subsidised generation or export of electricity
  462. 257MT Excluded activity: providing services or facilities for another business
  463. 257MU Meaning of “qualifying subsidiary”
  464. 257MV Meaning of “90% social subsidiary” of a social enterprise
  465. 257MW Excluded activities: power to amend
  466. 257N Attribution of SI relief to investments
  467. 257P Time for making claims for SI relief
  468. 257PA Entitlement to claim
  469. 257PB Compliance statements
  470. 257PC Compliance certificates
  471. 257PD Penalties for fraudulent certificate or statement etc
  472. 257PE Power to amend Chapter
  473. 257Q Effect of the investor receiving value from the social enterprise
  474. 257QA Value received: insignificant receipts
  475. 257QB Value received where there is more than one issue of investments
  476. 257QC Value received where part of investment treated as made in previous tax year
  477. 257QD Cases where maximum SI relief not obtained
  478. 257QE When value is received
  479. 257QF The amount of value received
  480. 257QG Receipts of value by and from connected persons etc
  481. 257QH Receipt of replacement value
  482. 257QI Section 257QH: supplementary
  483. 257QJ Repayments etc of share capital to other persons
  484. 257QK Insignificant payments ignored for the purposes of section 257QJ
  485. 257QL Amount of repayments etc if there is more than one issue of shares
  486. 257QM Single issue affecting more than one individual
  487. 257QN Single issue treated as made partly in previous tax year
  488. 257QO Maximum relief not obtained for share issue
  489. 257QP Repayment of authorised minimum within 12 months
  490. 257QQ Acquisition of a trade or trading assets
  491. 257QR Acquisition of share capital
  492. 257QS Relief subsequently found not to have been due
  493. 257R Disposal of whole or part of the investment
  494. 257RA Cases where maximum relief not obtained
  495. 257RB Call options
  496. 257RC Put options
  497. 257S Assessments for the withdrawal or reduction of SI relief
  498. 257SA Appeals against section 257QS(3)(b) notices
  499. 257SB Time limits for assessments
  500. 257SC Cases where assessment not to be made
  501. 257SD Date from which interest is chargeable
  502. 257SE Information to be provided by the investor
  503. 257SF Information to be provided by the social enterprise etc
  504. 257SG Power to require information in section 257SE or 257SF cases
  505. 257SH Power to require information in other cases
  506. 257SI Confidentiality
  507. 257T Transfers between spouses or civil partners
  508. 257TA Identification of investments on a disposal
  509. 257TB Meaning of a company being “in administration” or “in receivership”
  510. 257TC Meaning of “associate”
  511. 257TD Meaning of “control”
  512. 257TE Minor definitions etc
  513. 258 Overview of Part
  514. 259 Venture capital trusts and VCT approvals
  515. 260 Other tax reliefs relating to VCTs
  516. 261 Eligibility for relief
  517. 262 Entitlement to claim relief
  518. 263 Form and amount of relief
  519. 264 No entitlement to relief if there is a linked loan
  520. 264A Restricting relief where there is a linked sale
  521. 265 No entitlement to relief which would have been lost if it had already been obtained
  522. 266 Loss of relief if shares disposed of within 5 years
  523. 267 Transfers of shares between spouses or civil partners
  524. 268 Loss of relief if VCT approval withdrawn
  525. 269 Loss of relief which is subsequently found not to have been due
  526. 270 Assessment on withdrawal or reduction of relief
  527. 271 Provision of information
  528. 272 Regulations as to procedure etc
  529. 273 Interpretation of Chapter
  530. 274 Requirements for the giving of approval
  531. 275 Alternative requirements for the giving of approval
  532. 276 Conditions relating to income
  533. 277 The 15% holding limit condition
  534. 278 Conditions relating to value of investments: general
  535. 279 Conditions relating to value of investments: qualifying holdings
  536. 280 Conditions relating to qualifying holdings and eligible shares
  537. 280A The 80% qualifying holdings condition: disposal of holding
  538. 280B The investment limits condition
  539. 280BA The minimum investment on further issue condition
  540. 280C The permitted maximum age condition
  541. 280D The no business acquisition condition
  542. 281 Withdrawal of VCT approval of a company
  543. 282 Withdrawal of VCT approval in cases for which provision made under section 280(3)
  544. 283 Time as from which VCT approval has effect
  545. 284 Power to make regulations as to procedure
  546. 285 Interpretation of Chapter
  547. 286 Qualifying holdings: introduction
  548. 286ZA The risk-to-capital requirement
  549. 286A The UK permanent establishment requirement
  550. 286B The financial health requirement
  551. 287 The maximum qualifying investment requirement
  552. 288 The no guaranteed loan requirement
  553. 289 The proportion of eligible shares requirement
  554. 290 The trading requirement
  555. 291 The carrying on of a qualifying activity requirement
  556. 292 Ceasing to meet requirements because of administration or receivership
  557. 292A The maximum amount raised annually through risk finance investments requirement
  558. 292AA Maximum risk finance investments when relevant holding is issued requirement
  559. 292AB Maximum risk finance investments during the 5-year post-investment period requirement
  560. 292B The spending of money raised by SEIS investment requirement
  561. 293 The use of the money raised requirement
  562. 294 The relevant company to carry on the relevant qualifying activity requirement
  563. 294A The permitted company age requirement
  564. 295 The unquoted status requirement
  565. 296 The control and independence requirement
  566. 297 The gross assets requirement
  567. 297A The number of employees requirement
  568. 297B The proportion of skilled employees requirement
  569. 298 The qualifying subsidiaries requirement
  570. 299 The property managing subsidiaries requirement
  571. 299A The no disqualifying arrangements requirement
  572. 300 Meaning of “qualifying trade”
  573. 301 Meaning of “qualifying 90% subsidiary”
  574. 302 Meaning of “qualifying subsidiary”
  575. 302A Meaning of “permanent establishment”
  576. 303 Meaning of “excluded activities”
  577. 304 Excluded activities: wholesale and retail distribution
  578. 305 Excluded activities: leasing of ships
  579. 306 Excluded activities: receipt of royalties and licence fees
  580. 307 Excluded activities: property development
  581. 307A Excluded activities: shipbuilding
  582. 307B Excluded activities: producing coal
  583. 307C Excluded activities: producing steel
  584. 308 Excluded activities: hotels and comparable establishments
  585. 309 Excluded activities: nursing homes and residential care homes
  586. 309A Excluded activities: ... export of electricity
  587. 309B Excluded activities: subsidised generation of heat and subsidised production of gas or fuel
  588. 310 Excluded activities: provision of services or facilities for another business
  589. 311 Power to amend Chapter
  590. 312 Winding up of the relevant company
  591. 312A Power to require information relating to disqualifying arrangements
  592. 313 Interpretation of Chapter
  593. 314 Power to treat VCT-in-liquidation as VCT
  594. 315 Power to treat conditions for VCT approval as met with respect to VCT-in-liquidation
  595. 316 Power to make provision about distributions by VCT-in-liquidation
  596. 317 Power to facilitate disposal to VCT by VCT-in-liquidation
  597. 318 Power in respect of periods before and after winding up
  598. 319 Sections 314 to 318: supplementary
  599. 320 Meaning of “VCT-in-liquidation”
  600. 321 Power to facilitate mergers of VCTs
  601. 322 Provision that may be made by regulations under section 321
  602. 323 Meaning of “merger” and “successor company”
  603. 324 Regulations under Chapter
  604. 325 Interpretation of Chapter
  605. 326 Restructuring to which sections 326A, 327 and 327A apply
  606. 326A Certain requirements of Chapter 3 to be treated as met
  607. 327 Certain requirements of Chapter 4 to be treated as met
  608. 327A Follow-on funding
  609. 328 Supplementary
  610. 329 Conversion of convertible shares and securities
  611. 330 Power to facilitate company reorganisations etc involving exchange of shares
  612. 330A Nominees
  613. 330B Powers to amend Chapters 3 and 4 by Treasury regulations
  614. 331 Meaning of a company being “in administration” or “in receivership”
  615. 331A Meaning of “knowledge-intensive company”
  616. 331B Knowledge-intensive company reaching turnover of £200,000
  617. 331C Meaning of “specified Northern Ireland company”
  618. 332 Minor definitions etc
  619. 333 Meaning of “CITR”
  620. 334 Eligibility for CITR
  621. 335 Form and amount of CITR
  622. 335A Carry forward of CITR
  623. 336 Meaning of “making an investment”
  624. 337 Determination of “the invested amount”
  625. 338 Meaning of “the 5 year period” and “the investment date”
  626. 339 Overview of other Chapters of Part
  627. 340 Application and criteria for accreditation
  628. 341 Terms and conditions of accreditation
  629. 342 Period of accreditation
  630. 343 Delegation of Secretary of State's functions
  631. 344 Qualifying investments: introduction
  632. 345 Conditions to be met in relation to loans
  633. 346 Conditions to be met in relation to securities
  634. 347 Conditions to be met in relation to shares
  635. 348 Tax relief certificates
  636. 349 No pre-arranged protection against risks
  637. 350 No control of CDFI by investor
  638. 351 Investor must have beneficial ownership
  639. 352 No acquisition of share in partnership
  640. 353 No tax avoidance purpose
  641. 354 Loans: no claim after disposal or excessive repayments or receipts of value
  642. 355 Securities or shares: no claim after disposal or excessive receipts of value
  643. 356 No claim after loss of accreditation by the CDFI
  644. 357 Attribution: general
  645. 358 Attribution: bonus shares
  646. 359 Overview of Chapter
  647. 360 Disposal of loan during 5 year period
  648. 361 Disposal of securities or shares during 5 year period
  649. 362 Repayment of loan capital during 5 year period
  650. 363 Value received by investor during 6 year period: loans
  651. 364 Value received by investor during 6 year period: securities or shares
  652. 365 Receipts of insignificant value to be added together
  653. 366 When value is received
  654. 367 The amount of value received
  655. 368 Value received if there is more than one investment
  656. 369 Effect of receipt of value on future claims for CITR
  657. 370 Receipts of value by or from connected persons
  658. 371 CITR subsequently found not to have been due
  659. 372 Manner of withdrawal or reduction of CITR
  660. 372A Meaning of “loan” and “interest”
  661. 372B Purchase and resale arrangements
  662. 372C Deposit arrangements
  663. 372D Profit share agency arrangements
  664. 373 Information to be provided by the investor
  665. 374 Disclosure
  666. 375 Nominees
  667. 376 Application for postponement of tax pending appeal
  668. 377 Identification of securities or shares on a disposal
  669. 378 Meaning of “issue of securities or shares”
  670. 379 Meaning of “disposal”
  671. 380 Construction of references to being “held continuously”
  672. 381 Meaning of “associate”
  673. 382 Minor definitions etc
  674. 383 Relief for interest payments
  675. 384 General restrictions on relief under Chapter
  676. 384A Restriction on relief where arrangements minimise risk to borrower
  677. 384B Restriction on relief where cash basis applies
  678. 385 General provisions about loans
  679. 386 Loans partly meeting requirements
  680. 387 Exclusion of double relief etc
  681. 388 Loan to buy plant or machinery for partnership use
  682. 389 Eligibility requirements for interest on loans within section 388
  683. 390 Loan to buy plant or machinery for employment use
  684. 391 Eligibility requirements for interest on loans within section 390
  685. 392 Loan to buy interest in close company etc
  686. 393 Eligibility requirements for interest on loans within section 392
  687. 393A Close investment-holding companies
  688. 394 Meaning of “material interest” in section 393
  689. 395 Meaning of “associate” in section 394
  690. 396 Loan to buy interest in employee-controlled company
  691. 397 Eligibility requirements for interest on loans within section 396
  692. 398 Loan to invest in partnership
  693. 399 Eligibility requirements for interest on loans within section 398
  694. 399A Property partnerships: restriction of relief for investment loan interest
  695. 399B Property partnerships: tax reduction for non-deductible loan interest
  696. 400 Film partnerships
  697. 401 Loan to invest in co-operative
  698. 402 Eligibility requirements for interest on loans within section 401
  699. 403 Loan to pay inheritance tax
  700. 404 Eligibility requirements for interest on loans within section 403
  701. 405 Carry back and forward of relief for interest on loans within section 403
  702. 406 Effect of recovery of capital in the case of some loans
  703. 407 Events counting as recovery of capital for section 406
  704. 408 Replacement loans
  705. 409 Business successions between partnerships
  706. 410 Other business successions and reorganisations
  707. 411 Ineligibility of interest where business is occupation of commercial woodlands
  708. 412 Information
  709. 412A Relief for irrecoverable peer-to-peer loans
  710. 412B Claims for additional relief: sideways relief
  711. 412C Claims for additional relief: carry-forward relief
  712. 412D How carry-forward relief works
  713. 412E Subsequent recovery of peer-to-peer loans
  714. 412F Assigned loans treated as made by the assignee etc
  715. 412G Nominees etc
  716. 412H Interaction with other reliefs
  717. 412I Meaning of “loan”, “peer-to-peer loan” and related terms
  718. 412J Meaning of “operator” and related terms
  719. 413 Overview of Chapter
  720. 414 Relief for gifts to charity
  721. 414A Tax reduction or charge if basic rate, and devolved basic rate, differ
  722. 415 Meaning of “grossed up amount”
  723. 416 Meaning of “qualifying donation”
  724. 417 Meaning of “benefits associated with a gift”
  725. 418 Restrictions on associated benefits
  726. 419 Gifts and benefits linked to periods of less than 12 months
  727. 420 Disregard of certain admission rights
  728. 421 Admission rights: supplementary
  729. 422 Disqualified overseas gifts
  730. 423 Restriction of certain reliefs
  731. 424 Charge to tax
  732. 425 Total amount of income tax to which individual charged for a tax year
  733. 426 Election by donor: gift treated as made in previous tax year
  734. 427 Meaning of “charged amount”
  735. 428 Meaning of “gift aid declaration”
  736. 429 Giving through self-assessment return
  737. 430 “Charity” to include exempt bodies
  738. 431 Relief for gifts of shares, securities and real property to charities etc
  739. 432 Meaning of “qualifying investment”
  740. 433 Meaning of “qualifying interest in land”
  741. 434 The relievable amount
  742. 435 Incidental costs of making disposal
  743. 436 Consideration
  744. 437 Value of net benefit to charity
  745. 438 Market value of qualifying investments
  746. 438A Acquisition value of qualifying investments
  747. 439 Meaning of “disposal-related obligation”
  748. 440 Meaning and amount of “disposal-related liability”
  749. 441 Certificate required from charity
  750. 442 Qualifying interests in land held jointly
  751. 443 Calculation of relievable amount where joint disposal of interest in land
  752. 444 Disqualifying events
  753. 445 Prohibition against double relief
  754. 446 “Charity” to include exempt bodies
  755. 447 Overview of Chapter
  756. 448 Relief for individuals
  757. 449 Relief for other persons
  758. 450 Other persons: payments ineligible for relief
  759. 451 Special rule for persons affected by section 733 of ICTA
  760. 452 The gross amount of a payment
  761. 453 Tax reduction for qualifying maintenance payments
  762. 454 Meaning of “qualifying maintenance payment”
  763. 455 Child support maintenance payments
  764. 456 Payments under orders for recovery of benefit etc
  765. 457 Payments to trade unions
  766. 458 Payments to police organisations
  767. 459 Payments for benefit of family members
  768. 460 Residence etc of claimants
  769. 461 Spreading of patent royalty receipts
  770. 462 Overview of Part
  771. 463 Interpretation of Part
  772. 464 Scottish trusts
  773. 465 Overview of Chapter and interpretation
  774. 466 Meaning of “settled property” etc
  775. 467 Meaning of “settlor” etc
  776. 468 Meaning of “disposable property”
  777. 469 Person ceasing to be a settlor
  778. 470 Transfers between settlements
  779. 471 Identification of settlor following transfer covered by section 470
  780. 472 Settlor where property becomes settled because of variation of will etc
  781. 473 Deceased person as settlor where variation of will etc
  782. 474 Trustees of settlement to be treated as a single and distinct person
  783. 475 Residence of trustees
  784. 476 How to work out whether settlor meets condition C
  785. 477 Sub-fund elections under Schedule 4ZA to TCGA 1992
  786. 478 References to settled property etc in regulations
  787. 479 Trustees' accumulated or discretionary income to be charged at special rates
  788. 480 Meaning of “accumulated or discretionary income”
  789. 481 Other amounts to be charged at special rates for trustees
  790. 482 Types of amount to be charged at special rates for trustees
  791. 483 Sums paid by personal representatives to trustees
  792. 484 Trustees' expenses to be set against trustees' trust rate income
  793. 485 Carry forward of unused expenses
  794. 486 How allowable expenses are to be set against trust rate income
  795. 487 Non-UK resident trustees
  796. 488 Application of section 479 to trustees of Schedule 2 share incentive plans
  797. 489 “The applicable period” in relation to shares
  798. 490 Interpretation of Chapter
  799. 493 Discretionary payments by trustees
  800. 494 Grossing up of discretionary payment and payment of income tax
  801. 495 Statement about deduction of income tax
  802. 496 Income tax charged on trustees
  803. 496A Discretionary payments by trustees: employment income
  804. 496B Relief for trustees
  805. 497 Calculation of trustees' tax pool
  806. 498 Types of income tax for the purposes of section 497
  807. 499 Application of Chapter
  808. 500 Restrictions on use of trustees' expenses to reduce the beneficiary's income
  809. 501 Non-UK resident beneficiaries
  810. 502 Meaning of “untaxed income” in section 501
  811. 503 How beneficiary's income is reduced
  812. 504 Treatment of income of unauthorised unit trust
  813. 504A Treatment of capital expenditure of unauthorised unit trust
  814. 505 Relief for trustees of unauthorised unit trust
  815. 506 Special rules for trustees affected by section 733 of ICTA
  816. 507 Overview of Chapter
  817. 508 Election by trustees
  818. 509 Change of circumstances during a tax year
  819. 510 Sums applied for property maintenance purposes
  820. 511 Prevention of double taxation: reimbursement of settlor
  821. 512 Charge to tax on some settlements
  822. 513 Income charged
  823. 514 Persons liable
  824. 515 Rate of tax
  825. 516 Transfer of property between settlements
  826. 517 Exemption for income treated as income of settlor
  827. 517A Overview of Part
  828. 517B Disposals of land in the United Kingdom
  829. 517C Disposals of land: profits treated as trading profits
  830. 517D Disposals of property deriving its value from land in the United Kingdom
  831. 517E Disposals within section 517D: profits treated as trading profits
  832. 517F Profits and losses
  833. 517G The chargeable person
  834. 517H Fragmented activities
  835. 517I Calculation of surplus on a disposal of land
  836. 517J Apportionments
  837. 517K Arrangements for avoiding tax
  838. 517L Gain attributable to period before intention to develop formed
  839. 517M Private residences
  840. 517N Tracing value
  841. 517O Relevance of transactions, arrangements, etc
  842. 517P “Another person”
  843. 517Q “Arrangement”
  844. 517R “Disposal”
  845. 517S “Land” and related expressions
  846. 517T References to realising a gain
  847. 517U Related parties
  848. 518 Overview of Part
  849. 519 Meaning of “charitable trust”
  850. 520 Gifts entitling donor to gift aid relief: income tax treated as paid
  851. 521 Gifts entitling donor to gift aid relief: income tax liability and exemption
  852. 521A Gifts under payroll deduction schemes: income tax liability and exemption
  853. 522 Gifts of money from companies: income tax liability and exemption
  854. 523 Payments from other charities: income tax liability and exemption
  855. 523A Legacies: income tax liability and exemption
  856. 524 Exemption for profits etc of charitable trades
  857. 525 Meaning of “charitable trade”
  858. 526 Exemption for profits etc of small-scale trades
  859. 527 Exemption from charges under provisions to which section 1016 applies
  860. 528 Condition as to trading and miscellaneous incoming resources
  861. 529 Exemption for profits from fund-raising events
  862. 530 Exemption for profits from lotteries
  863. 531 Exemption for property income etc
  864. 532 Exemption for savings and investment income
  865. 533 Exemption for public revenue dividends
  866. 534 Exemption for transactions in deposits
  867. 535 Exemption for offshore income gains
  868. 536 Exemption for certain miscellaneous income
  869. 537 Exemption for income from estates in administration
  870. 538 Requirement to make claim
  871. 538A Claims in relation to gift aid relief etc
  872. 539 Restrictions on exemptions
  873. 540 The non-exempt amount
  874. 541 Attributing income to the non-exempt amount
  875. 542 How income is attributed to the non-exempt amount
  876. 543 Meaning of “non-charitable expenditure”
  877. 544 Section 543: supplementary
  878. 545 Section 543(1)(f): meaning of expenditure
  879. 546 Section 543(1)(f): tax year in which certain expenditure treated as incurred
  880. 547 Section 543(1)(f): payment to body outside the UK
  881. 548 Section 543(1)(i) and (j): investments and loans
  882. 549 Transactions with substantial donors
  883. 550 Meaning of “relievable gift”
  884. 551 Non-charitable expenditure in substantial donor transactions
  885. 552 Adjustment if section 551(1) and (2) applied to single transaction
  886. 553 Section 551: certain payments and benefits to be ignored
  887. 554 Transactions: exceptions
  888. 555 Donors: exceptions
  889. 556 Connected charities
  890. 557 Substantial donor transactions: supplementary
  891. 558 Approved charitable investments
  892. 559 Securities which are approved charitable investments
  893. 560 Conditions to be met for some securities
  894. 561 Approved charitable loans
  895. 562 Excess expenditure treated as non-charitable expenditure of earlier years
  896. 563 Rules for attributing excess expenditure to earlier years
  897. 564 Adjustments in consequence of section 562
  898. 564A Introduction
  899. 564B Meaning of “financial institution”
  900. 564C Purchase and resale arrangements
  901. 564D Diminishing shared ownership arrangements : initial acquisition
  902. 564DA Diminishing shared ownership arrangements: refinancing
  903. 564E Deposit arrangements
  904. 564F Profit share agency arrangements
  905. 564G Investment bond arrangements
  906. 564H Provision not at arm's length: exclusion of arrangements from sections 564C to 564G
  907. 564I Purchase and resale arrangements
  908. 564J Purchase and resale arrangements where return in foreign currency
  909. 564K Diminishing shared ownership arrangements
  910. 564L Other arrangements
  911. 564M Treatment of alternative finance return as interest for ITTOIA 2005
  912. 564N Alternative finance return under arrangements for trade or property business purposes
  913. 564O Relief for some alternative finance return under Chapter 1 of Part 8 etc
  914. 564P Tax relief schemes and arrangements
  915. 564Q Deduction of income tax at source under Part 15
  916. 564R Treatment of discount
  917. 564S Treatment of bond-holder and bond-issuer
  918. 564T Treatment as securities
  919. 564U Arrangements not unit trust scheme or offshore fund
  920. 564V Exclusion of alternative finance return from consideration for sale of assets
  921. 564W Diminishing shared ownership arrangements not partnerships
  922. 564WA Diminishing shared ownership arrangements: further provision in respect of refinancing
  923. 564X Treatment of principal under profit share agency arrangements
  924. 564Y Provision not at arm's length: relevant return
  925. 596 Deemed manufactured payments: stock lending arrangements
  926. 597 Deemed interest: cash collateral under stock lending arrangements
  927. 598 Cash collateral under stock lending arrangements: supplementary
  928. 599 Sections 597 and 598: quasi-stock lending arrangements and quasi-cash collateral
  929. 600 Meaning of “quasi-stock lending arrangements” and “quasi-cash collateral”
  930. 601 Repo cases in which deeming rules apply
  931. 602 Deemed manufactured payments: repos
  932. 603 Deemed deductions of tax
  933. 604 Deemed increase in repurchase price: price differences under repos
  934. 605 Deemed increase in repurchase price: other income tax purposes
  935. 606 Interpretation of Chapter
  936. 607 Treatment of price differences under repos
  937. 608 Exceptions to section 607
  938. 609 Additional income tax consequences of price differences
  939. 610 Repurchase price in deemed manufactured payment case
  940. 611 Power to modify Chapter in non-arm's length case
  941. 612 Non-standard repo cases
  942. 613 Redemption arrangements
  943. 614 Sections 612 and 613: supplementary
  944. 614ZA Overview of Part
  945. 614ZB Key definitions
  946. 614ZC Treatment of payer of manufactured payment
  947. 614ZD Treatment of recipient of manufactured payment
  948. 614A Overview of Part
  949. 614AA Normal rent
  950. 614AB Accountancy rental earnings
  951. 614AC Rental earnings
  952. 614B Arrangements to which this Chapter applies
  953. 614BA Purposes of this Chapter
  954. 614BB Application of this Chapter
  955. 614BC The conditions referred to in section 614BB(1)
  956. 614BD Provisions supplementing section 614BC
  957. 614BE The arrangements and circumstances referred to in section 614BC(8)
  958. 614BF Current lessor taxed by reference to accountancy rental earnings
  959. 614BG Reduction of taxable rent by cumulative rental excesses: introduction
  960. 614BH Meaning of “accountancy rental excess” and “cumulative accountancy rental excess”
  961. 614BI Reduction of taxable rent by the cumulative accountancy rental excess
  962. 614BJ Meaning of “normal rental excess” and “cumulative normal rental excess”
  963. 614BK Reduction of taxable rent by the cumulative normal rental excess
  964. 614BL Relief for bad debts: reduction of cumulative accountancy rental excess
  965. 614BM Recovery of bad debts following reduction under section 614BL
  966. 614BN Relief for bad debts: reduction of cumulative normal rental excess
  967. 614BO Recovery of bad debts following reduction under section 614BN
  968. 614BP Effect of disposals of leases: general
  969. 614BQ Assignments on which neither a gain nor a loss accrues
  970. 614BR Effect of capital allowances: introduction
  971. 614BS Cases where expenditure taken into account under Part 2, 5 or 8 of CAA 2001
  972. 614BT Cases where expenditure taken into account under other provisions of CAA 2001
  973. 614BU Capital allowances deductions: waste disposal and cemeteries
  974. 614BV Capital allowances deductions: films and sound recordings
  975. 614BW Contributors to capital expenditure
  976. 614BX Pre-26 November 1996 schemes where this Chapter does not at first apply
  977. 614BY Post-25 November 1996 schemes to which Chapter 3 applied first
  978. 614C Introduction to Chapter
  979. 614CA Purpose of this Chapter
  980. 614CB Leases to which this Chapter applies
  981. 614CC Current lessor taxed by reference to accountancy rental earnings
  982. 614CD Application of provisions of Chapter 2 for purposes of this Chapter
  983. 614D Pre-26 November 1996 schemes and post-25 November 1996 schemes
  984. 614DA Time apportionment where periods of account do not coincide
  985. 614DB Periods of account and related periods of account and tax years
  986. 614DC Connected persons
  987. 614DD Assets which represent the leased asset
  988. 614DE Parent undertakings and consolidated group accounts
  989. 614DF Assessments and adjustments
  990. 614DG Interpretation
  991. 615 Overview of Part
  992. 616 Charge to tax on accrued income profits
  993. 617 Income charged
  994. 618 Person liable
  995. 619 Meaning of “securities” and when securities are of the same kind
  996. 620 Transactions which are transfers: general
  997. 621 Transferors and transferees
  998. 622 Application of Chapter to different kinds of transfer
  999. 623 Transfers with accrued interest
  1000. 624 Transfers without accrued interest
  1001. 625 Transfers with unrealised interest
  1002. 626 Transfers of variable rate securities
  1003. 627 Meaning of “variable rate securities”
  1004. 628 Making accrued income profits and losses: general rule
  1005. 629 Calculating accrued income profits and losses where section 628 applies
  1006. 630 Making accrued income profits: settlement day outside interest period
  1007. 631 Amount of accrued income profits where section 630 applies
  1008. 632 Payment on transfer with accrued interest
  1009. 633 Payment on transfer without accrued interest
  1010. 634 Payment on transfer with unrealised interest
  1011. 635 Payment on transfer of variable rate securities
  1012. 636 Exception where there is a transfer to a legatee
  1013. 637 Accrued income losses treated as payments in next interest period
  1014. 638 Excluded persons: disregard of certain payments and transfers
  1015. 639 Small holdings: individuals
  1016. 640 Small holdings: personal representatives
  1017. 641 Small holdings: trustees of a disabled person's trusts
  1018. 642 Traders
  1019. 643 Non-residents
  1020. 644 Individuals to whom the remittance basis applies
  1021. 645 Charitable trusts etc
  1022. 646 Pension scheme trustees
  1023. 647 Makers of manufactured payments
  1024. 648 Strips of gilt-edged securities
  1025. 649 New securities issued with extra return
  1026. 650 Trading stock appropriations etc
  1027. 651 Owner becoming entitled to securities as trustee
  1028. 652 Securities ceasing to be held on charitable trusts
  1029. 653 Stock lending
  1030. 654 Sale and repurchase arrangements
  1031. 655 Transfers under sale and repurchase arrangements
  1032. 656 Power to modify: non-standard sale and repurchase arrangements
  1033. 657 Power to modify: redemption arrangements
  1034. 658 Powers to modify: supplementary
  1035. 659 Transfers with or without accrued interest: interest in default
  1036. 660 Transfers with unrealised interest: interest in default
  1037. 661 Successive transfers with unrealised interest in default
  1038. 662 New securities issued with extra return: special rules about payments
  1039. 663 Transfers without accrued interest to makers of manufactured payments
  1040. 664 Foreign currency securities: sterling equivalent of payments on transfers
  1041. 665 Foreign currency securities: unrealised interest payable in foreign currency
  1042. 666 Certain transfers by or to nominees or trustees treated as made by or to others
  1043. 667 Trustees' accrued income profits treated as settlement income
  1044. 668 Relief for unremittable transfer proceeds: general
  1045. 669 Relief for unremittable transfer proceeds: section 630 profits
  1046. 670 Withdrawal of relief
  1047. 670A Individuals to whom remittance basis applies
  1048. 671 Meaning of “interest”
  1049. 672 Meaning of “interest payment day”
  1050. 673 Meaning of “interest period”
  1051. 674 Meaning of “the settlement day”
  1052. 675 The holding of securities
  1053. 676 Nominal value of securities: general
  1054. 677 Nominal value: foreign currency securities
  1055. 678 Exemptions relating to interest on securities: preliminary
  1056. 679 Interest on securities involving accrued income losses: general
  1057. 680 Interest on securities involving accrued income losses: foreign trustees
  1058. 681 Unrealised interest received by transferee after transfer
  1059. 681A Overview
  1060. 681AA Transferor or associate becomes liable for payment of rent
  1061. 681AB Transferor or associate becomes liable for payment other than rent
  1062. 681AC Relevant income tax relief and relevant deduction from earnings
  1063. 681AD Relevant income tax relief: deduction not to exceed commercial rent
  1064. 681AE Deduction from earnings not to exceed commercial rent
  1065. 681AF Carrying forward parts of payments
  1066. 681AG Aggregation and apportionment of payments
  1067. 681AH Payments made for later periods
  1068. 681AI Exclusion of service charges etc
  1069. 681AJ Commercial rent: comparison with rent under a lease
  1070. 681AK Commercial rent: comparison with payments other than rent
  1071. 681AL Lease and rent
  1072. 681AM Associated persons
  1073. 681AN Land outside the UK
  1074. 681B Overview
  1075. 681BA New lease after assignment or surrender
  1076. 681BB Taxation of consideration
  1077. 681BC Position where new lease does not include all original property
  1078. 681BD Relief for rent under new lease
  1079. 681BE New lease treated as ending
  1080. 681BF Position where rent reduces
  1081. 681BG Position where lease may be ended
  1082. 681BH Position where lease may be varied
  1083. 681BI Lease treated as ending: rentcharge
  1084. 681BJ Lease varied to provide for increased rent
  1085. 681BK Relevant income tax relief
  1086. 681BL Linked persons
  1087. 681BM Lease, lessee, lessor and rent
  1088. 681C Overview
  1089. 681CA Professions and vocations
  1090. 681CB Leased trading assets
  1091. 681CC Tax deduction not to exceed commercial rent
  1092. 681CD Long funding finance leases
  1093. 681CE Commercial rent
  1094. 681CF Lease
  1095. 681CG Relevant asset
  1096. 681D Overview
  1097. 681DA Application of the Chapter
  1098. 681DB Payment under lease
  1099. 681DC Sum obtained
  1100. 681DD Charge to income tax
  1101. 681DE Hire-purchase agreements
  1102. 681DF Adjustments where sum obtained before payment made
  1103. 681DG Sum obtained in respect of interest
  1104. 681DH Sum obtained in respect of lessee's interest
  1105. 681DI Disposal of interest to associate
  1106. 681DJ Apportionment of payments made and of sums obtained
  1107. 681DK Manner of apportionment
  1108. 681DL Associates
  1109. 681DM Capital sum
  1110. 681DN Lease
  1111. 681DO Relevant asset
  1112. 681DP Relevant tax relief
  1113. 682 Overview of Chapter
  1114. 683 Provisions of Chapter
  1115. 684 Person liable to counteraction of income tax advantage
  1116. 685 Receipt of consideration in connection with distribution by or assets of close company
  1117. 686 Excluded circumstances: fundamental change of ownership
  1118. 687 Income tax advantage
  1119. 688 Receipt of consideration representing company's assets, future receipts or trading stock (circumstance C)
  1120. 689 Receipt of consideration in connection with relevant company distribution (circumstance D)
  1121. 690 Receipt of assets of relevant company (circumstance E)
  1122. 691 Meaning of “relevant company” in sections 689 and 690
  1123. 692 Abnormal dividends: general
  1124. 693 Abnormal dividends: the excessive return condition
  1125. 694 Abnormal dividends: the excessive accrual condition
  1126. 695 Notice of enquiry
  1127. 696 Opposed notifications: statutory declarations
  1128. 697 Opposed notifications: determinations by tribunal
  1129. 698 Counteraction notices
  1130. 698A No-counteraction notices
  1131. 699 Limit on amount assessed in section 689 and 690 cases
  1132. 700 Timing of assessments ...
  1133. 701 Application for clearance of transactions
  1134. 702 Effect of clearance notification under section 701
  1135. 703 Power to obtain information
  1136. 704 The tribunal
  1137. 705 Appeals against counteraction notices
  1138. 712 Application of Chapter where individual within section 684 dies
  1139. 713 Interpretation of Chapter
  1140. 714 Overview of Chapter
  1141. 715 Meaning of “relevant transaction”
  1142. 716 Meaning of “relevant transfer” and “transfer”
  1143. 717 Meaning of “assets” etc
  1144. 718 Meaning of “person abroad” etc
  1145. 719 Meaning of “associated operation”
  1146. 719A Other definitions
  1147. 720 Charge to tax on income treated as arising under section 721
  1148. 720A Transfers by closely-held companies
  1149. 721 Individuals with power to enjoy income as a result of relevant transactions
  1150. 721A Meaning of “protected foreign-source income” in section 721
  1151. 721B Section 721A: tainting
  1152. 722 When an individual has power to enjoy income of person abroad
  1153. 723 The enjoyment conditions
  1154. 724 Special rules where benefit provided out of income of person abroad
  1155. 725 Reduction in amount charged where controlled foreign company involved
  1156. 725A Recovery of tax paid as a result of section 721
  1157. 726 Qualifying new residents and remittance-basis users: “foreign” deemed income
  1158. 727 Charge to tax on income treated as arising under section 728
  1159. 727A Transfers by closely-held companies
  1160. 728 Individuals receiving capital sums as a result of relevant transactions
  1161. 729 The capital receipt conditions
  1162. 729A Meaning of “protected foreign-source income” in section 728
  1163. 729B Recovery of tax paid as a result of section 728
  1164. 730 Qualifying new residents and remittance-basis users: “foreign” deemed income
  1165. 731 Charge to tax on income treated as arising under section 732
  1166. 732 Non-transferors receiving a benefit as a result of relevant transactions
  1167. 733 Income charged under section 731
  1168. 733A Settlor liable for section 731 charge on closely-related beneficiary
  1169. 733B Recipients of onward gifts
  1170. 733C Cases where income treated as arising to recipient of onward gift
  1171. 733D Cases where deemed income attributed to recipient of onward gift
  1172. 733E Cases where settlor liable following onward gift
  1173. 734 Reduction in amount charged: previous capital gains tax charge
  1174. 734A Reduction in amount charged: previous settlements charge
  1175. 735 Qualifying new residents and remittance-basis users: “foreign” deemed income
  1176. 735A Section 735: relevant income and benefits relating to foreign deemed income
  1177. 735AA Settlements to which following sections apply
  1178. 735AB “Protected foreign-source income” and “transitionally protected income”
  1179. 735AC Transitionally protected income not to be taxed on remittance
  1180. 735AD Settlor liable for benefits charge despite being transferor
  1181. 735AE Settlor liable in place of close family member
  1182. 735AF Onward gifts from non-residents or qualifying new residents
  1183. 735AG Deduction allowed for previous settlements charge
  1184. 735B Historical liability under section 733A where remittance basis applied
  1185. 735C Historical operation of section 733C or 733E where remittance basis applied
  1186. 736 Exemptions: introduction
  1187. 737 Exemption: all relevant transactions post-4 December 2005 transactions
  1188. 738 Meaning of “commercial transaction”
  1189. 739 Exemption: all relevant transactions pre-5 December 2005 transactions
  1190. 740 Exemption: relevant transactions include both pre-5 December 2005 and post-4 December 2005 transactions
  1191. 741 Application of section 742 (partial exemption)
  1192. 742 Partial exemption where later associated operations fail conditions
  1193. 742A Post-5 April 2012 transactions: exemption for genuine transactions
  1194. 742B Value of certain benefits
  1195. 742C Value of benefit provided by a payment by way of loan
  1196. 742D Value of benefit provided by making movable property available
  1197. 742E Value of benefit provided by making land available
  1198. 743 No duplication of charges
  1199. 744 Meaning of taking income into account in charging income tax for section 743
  1200. 745 Rates of tax applicable to income charged under sections 720 and 727 etc
  1201. 746 Deductions and reliefs where individual charged under section 720 or 727
  1202. 747 Amounts corresponding to accrued income profits and related interest
  1203. 748 Power to obtain information
  1204. 749 Restrictions on particulars to be provided by relevant lawyers
  1205. 750 Restrictions on particulars to be provided by banks
  1206. 751 The tribunal’s jurisdiction on appeals
  1207. 773 Overview of Chapter
  1208. 774 Meaning of “occupation”
  1209. 775 Priority of other tax provisions
  1210. 776 Charge to tax on sale of occupation income
  1211. 777 Conditions for sections 778 and 779 to apply
  1212. 778 Income arising where capital amount other than derivative property or right obtained
  1213. 779 Income arising where derivative property or right obtained
  1214. 780 Transactions, arrangements, sales and realisations relevant for Chapter
  1215. 781 Tracing value
  1216. 782 Meaning of “other person”
  1217. 783 Valuations and apportionments
  1218. 784 Exemption for sales of going concerns
  1219. 785 Restriction on exemption: sales of future earnings
  1220. 786 Recovery of tax where consideration receivable by person not assessed
  1221. 787 Recovery of tax: certificates of tax paid etc
  1222. 788 Power to obtain information
  1223. 789 Minor definitions
  1224. 790 Overview of Chapter
  1225. 791 Charge to tax on income treated as received under section 792
  1226. 792 Partners claiming excess sideways or capital gains relief
  1227. 793 Calculating the amount of income treated as received
  1228. 794 Meaning of “the total amount of trade losses claimed” etc
  1229. 795 Meaning of “post-1 December 2004 loss”
  1230. 796 Charge to tax on income treated as received under section 797
  1231. 797 Individuals claiming sideways or capital gains relief for film-related losses
  1232. 798 Meaning of “non-taxable consideration” etc
  1233. 799 Meaning of “disposal of a right of the individual to profits” etc
  1234. 800 Meaning of “film-related losses” etc
  1235. 801 Meaning of “capital contribution”
  1236. 802 Exclusion of amounts in calculating capital contribution by a partner
  1237. 803 Prohibition against double counting
  1238. 804 Charge to tax on income treated as received under section 805
  1239. 805 Partners claiming relief for licence-related trading losses
  1240. 806 Calculation of amount of income treated as received by the individual
  1241. 807 Supplementary provision relating to calculation in section 806
  1242. 808 Meaning of “disposal of the licence” etc
  1243. 809 Other definitions
  1244. 809AZA Application of Chapter
  1245. 809AZB Value of transferred income stream treated as income
  1246. 809AZC Exception: amount otherwise taxed
  1247. 809AZD Exception: certain annuities
  1248. 809AZE Exception: transfer by way of security
  1249. 809AZF Partnership shares
  1250. 809AZG Interpretation
  1251. 809AAZA Application of Chapter
  1252. 809AAZB Relevant amount to be treated as income
  1253. 809BZA Type 1 finance arrangement defined
  1254. 809BZB Certain tax consequences not to have effect
  1255. 809BZC Payments treated as borrower's income
  1256. 809BZD Deemed interest if borrower is not a partnership
  1257. 809BZE Deemed interest if borrower is a partnership
  1258. 809BZF Type 2 finance arrangement defined
  1259. 809BZG Relevant change in relation to partnership
  1260. 809BZH Certain tax consequences not to have effect
  1261. 809BZI Deemed interest
  1262. 809BZJ Type 3 finance arrangement defined
  1263. 809BZK Certain tax consequences not to have effect
  1264. 809BZL Deemed interest
  1265. 809BZM Exceptions: preliminary
  1266. 809BZN Exceptions
  1267. 809BZO Exceptions: relevant person
  1268. 809BZP Power to make further exceptions
  1269. 809BZQ Accounts
  1270. 809BZR Arrangements
  1271. 809BZS Assets
  1272. 809CZA Loan or credit transaction defined
  1273. 809CZB Certain payments treated as yearly interest
  1274. 809CZC Tax charged on income transferred
  1275. 809DZA Application of Chapter
  1276. 809DZB Relevant amount to be treated as income
  1277. 809EZA Disguised investment management fees: charge to income tax
  1278. 809EZB Meaning of “management fee” in section 809EZA
  1279. 809EZC Meaning of “carried interest” in section 809EZB
  1280. 809EZD Sums treated as “carried interest” for purposes of section 809EZB
  1281. 809EZDA Sums arising to connected persons other than companies
  1282. 809EZDB Sums arising to connected company or unconnected person
  1283. 809EZE Interpretation of Chapter
  1284. 809EZF Disguised investment management fees: anti-avoidance
  1285. 809EZG Disguised investment management fees: avoidance of double taxation
  1286. 809EZH Powers to amend Chapter
  1287. 809ZA Plant and machinery leases: capital receipts to be treated as income
  1288. 809ZB Section 809ZA: interpretation
  1289. 809ZC Section 809ZA: lease of plant and machinery and other property
  1290. 809ZD Section 809ZA: expectation that relevant capital payment will not be paid
  1291. 809ZE Capital payment”, “relevant capital payment” etc
  1292. 809ZF Further interpretation of section 809ZA etc
  1293. 809ZFA Consideration for taking over payment obligations as lessee treated as income
  1294. 809ZG Tax relief schemes and arrangements
  1295. 809ZH Overview of Chapter
  1296. 809ZI Relievable charity donations
  1297. 809ZJ Tainted donations
  1298. 809ZK Circumstances in which financial advantage deemed to be obtained
  1299. 809ZL Certain financial assistance to be ignored
  1300. 809ZM Removal of income tax relief where donation becomes tainted in same tax year
  1301. 809ZMA Clawback of income tax relief where donation becomes tainted in later tax year
  1302. 809ZMB Removal or clawback of income tax relief for associated donations
  1303. 809ZN Income tax charge where gift aid is withdrawn
  1304. 809ZO Income tax charge where payment of trust income to charity
  1305. 809ZP Connected charities
  1306. 809ZQ Connected persons
  1307. 809ZR Minor definitions
  1308. 809A Overview of Chapter
  1309. 809B Claim for remittance basis to apply
  1310. 809C Claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply
  1311. 809D Application of remittance basis without claim where unremitted foreign income and gains under £2,000
  1312. 809E Application of remittance basis without claim: other cases
  1313. 809F Effect on what is chargeable
  1314. 809G Claim for remittance basis: effect on allowances etc
  1315. 809H Claim for remittance basis by long-term UK resident: charge
  1316. 809I Remittance basis charge: income and gains treated as remitted
  1317. 809J Section 809I: order of remittances
  1318. 809K Sections 809L to 809Z6: introduction
  1319. 809L Meaning of “remitted to the United Kingdom”
  1320. 809M Meaning of “relevant person”
  1321. 809N Section 809L: gift recipients, qualifying property and enjoyment
  1322. 809O Section 809L: dealings where there is a connected operation
  1323. 809P Section 809L: amount remitted
  1324. 809Q Sections 809L and 809P: transfers from mixed funds
  1325. 809R Section 809Q: composition of mixed fund
  1326. 809RZA Transfers into TRF capital account
  1327. 809RZB TRF capital account
  1328. 809RZC Breaches of the TRF deposit rule
  1329. 809RZD Effect where 30-day deadline is met
  1330. 809RA Special mixed fund rules for certain employment cases
  1331. 809RB Qualifying accounts
  1332. 809RC Breaches of the deposit rule
  1333. 809RD Effect where 30-day deadline is met
  1334. 809S Section 809Q: anti-avoidance
  1335. 809T Foreign chargeable gains accruing on disposal made otherwise than for full consideration
  1336. 809U Deemed income or gains not to be regarded as remitted before time when they are treated as arising or accruing
  1337. 809UA Money used for payments on account
  1338. 809V Money paid to the Commissioners
  1339. 809VA Money or other property used to make investments
  1340. 809VB Failure to invest within 45 days
  1341. 809VC Qualifying investments
  1342. 809VD Condition A
  1343. 809VE Commercial trades
  1344. 809VF Condition B
  1345. 809VG Income or gains treated as remitted following certain events
  1346. 809VH Meaning of “potentially chargeable event”
  1347. 809VI The appropriate mitigation steps
  1348. 809VIA Application of appropriate mitigation steps where TRF capital involved
  1349. 809VJ The grace period allowed for the appropriate mitigation steps
  1350. 809VK Retention of funds to meet CGT liabilities
  1351. 809VL Effect of taking appropriate mitigation steps within grace period
  1352. 809VM Cases involving tax deposits
  1353. 809VN Order of disposals etc
  1354. 809VO Investments made from mixed funds
  1355. 809W Consideration for certain services
  1356. 809X Exempt property
  1357. 809Y Property that ceases to be exempt property treated as remitted
  1358. 809YA Exception to section 809Y: proceeds taken offshore or invested
  1359. 809YB Condition E: supplementary
  1360. 809YC Effect of disapplying section 809Y
  1361. 809YD Chargeable gains accruing on sales of exempt property
  1362. 809YE Exception to section 809Y: gifts to the nation
  1363. 809YF Exception to section 809Y: compensation taken offshore or invested
  1364. 809Z Public access rule: general
  1365. 809Z1 Public access rule: relevant VAT relief
  1366. 809Z2 Personal use rule
  1367. 809Z3 Repair rule
  1368. 809Z4 Temporary importation rule
  1369. 809Z5 Notional remitted amount
  1370. 809Z6 Exempt property: other interpretation
  1371. 809Z7 Meaning of “foreign income and gains” etc
  1372. 809Z8 Meaning of “the disposal proceeds”
  1373. 809Z9 Taking proceeds etc offshore or investing them
  1374. 809Z10 General interpretation
  1375. 810 Overview of Chapter
  1376. 811 Limit on liability to income tax of non-UK residents
  1377. 812 Case where limit not to apply
  1378. 812A Temporary non-residents
  1379. 813 Meaning of “disregarded income”
  1380. 814 Meaning of “disregarded transaction income”
  1381. 815 Limit on liability to income tax of non-UK resident companies
  1382. 816 Meaning of “disregarded company income”
  1383. 817 The independent broker conditions
  1384. 818 The independent investment manager conditions
  1385. 819 Investment managers: the 20% rule
  1386. 820 Meaning of “qualifying period”
  1387. 821 Meaning of “relevant disregarded income”
  1388. 822 Meaning of “beneficial entitlement”
  1389. 823 Treatment of transactions where requirements of 20% rule not met
  1390. 824 Application of 20% rule to collective investment schemes
  1391. 825 Meaning of “disregarded savings and investment income”
  1392. 826 Meaning of “disregarded annual payments”
  1393. 827 Meaning of “investment manager” and “investment transaction”
  1394. 828 Transactions through brokers and investment managers
  1395. 829 Residence of individuals temporarily abroad
  1396. 830 Residence of individuals working abroad
  1397. 831 Foreign income of individuals in the United Kingdom for temporary purpose
  1398. 832 Employment income of individuals in the United Kingdom for temporary purpose
  1399. 833 Visiting forces etc
  1400. 834 Residence of personal representatives
  1401. 835 Residence rules for trustees ...
  1402. 835A Residence of companies
  1403. 835B Domicile for income tax purposes of overseas electors
  1404. 835BA Deemed domicile
  1405. 835C Overview of Chapter
  1406. 835D Income tax chargeable on company's income: application
  1407. 835E Branch or agency treated as UK representative
  1408. 835F Trade or profession carried on in partnership
  1409. 835G Agents
  1410. 835H Brokers
  1411. 835I Investment managers
  1412. 835J Persons acting under alternative finance arrangements
  1413. 835K Lloyd's agents
  1414. 835L The independent broker conditions
  1415. 835M The independent investment manager conditions
  1416. 835N Investment managers: the 20% rule
  1417. 835O Meaning of “qualifying period”, “relevant disregarded income” and “beneficial entitlement”
  1418. 835P Treatment of transactions where 20% rule not met
  1419. 835Q Application of 20% rule to collective investment schemes
  1420. 835R Supplementary provision
  1421. 835S Interpretation of Chapter
  1422. 835T Introduction to Chapter
  1423. 835U Obligations and liabilities of UK representative
  1424. 835V Exceptions: notices and information
  1425. 835W Exceptions: criminal offences and penalties etc
  1426. 835X Indemnities
  1427. 835Y Meaning of “independent agent”
  1428. 836 Jointly held property
  1429. 837 Jointly held property: declarations of unequal beneficial interests
  1430. 837A Overview of Chapter
  1431. 837B Application of Chapter
  1432. 837C Charge to income tax on winding up receipts
  1433. 837D Transfer of rights to payment
  1434. 837E Allowable deductions
  1435. 837F Election to carry back
  1436. 837G Relationship of Chapter with other income tax provisions
  1437. 837H Interpretation of Chapter
  1438. 838 Local authorities and local authority associations
  1439. 838A Asbestos compensation settlements
  1440. 839 Issue departments of the Reserve Bank of India and the State Bank of Pakistan
  1441. 840 Government securities held by non-UK resident central banks
  1442. 841 Official agents of Commonwealth countries etc
  1443. 842 UK Economic Interest Groupings and European Economic Interest Groupings
  1444. 843 Restriction of deductions for annual payments
  1445. 844 Letters patent etc: exempting provisions
  1446. 845 Extra return to be treated as interest etc
  1447. 846 Interpretation of section 845
  1448. 847 Overview of Part
  1449. 848 Income tax deducted at source treated as income tax paid by recipient
  1450. 849 Interaction with other Income Tax Acts provisions
  1451. 850 Overview of Chapter
  1452. 851 Duty to deduct sums representing income tax
  1453. 852 Power to make regulations disapplying section 851
  1454. 853 Meaning of “deposit-taker”
  1455. 854 Power to prescribe persons as deposit-takers
  1456. 855 Meaning of “investment” and “deposit”
  1457. 856 Investments which are relevant investments
  1458. 857 Investments to be treated as being or as not being relevant investments
  1459. 858 Declarations of non-UK residence: individuals
  1460. 859 Declarations of non-UK residence: Scottish partnerships
  1461. 860 Declarations of non-UK residence: personal representatives
  1462. 861 Declarations of non-UK residence: settlements
  1463. 862 Inspection of declarations
  1464. 863 General client account deposits
  1465. 864 Qualifying uncertificated eligible debt security units
  1466. 865 Qualifying certificates of deposit
  1467. 866 Qualifying time deposits
  1468. 867 Lloyd's premium trust funds
  1469. 868 Investments held outside the United Kingdom
  1470. 869 Sale and repurchase of securities
  1471. 870 Other investments
  1472. 871 Power to make regulations to give effect to Chapter
  1473. 872 Power to make orders amending Chapter
  1474. 873 Discretionary or accumulation settlements
  1475. 874 Duty to deduct from certain payments of yearly interest
  1476. 875 Interest paid by building societies
  1477. 876 Interest paid by deposit-takers
  1478. 877 UK public revenue dividends
  1479. 878 Interest paid by banks
  1480. 879 Interest paid on advances from banks
  1481. 880 Interest paid on advances from building societies
  1482. 881 National Savings Bank interest
  1483. 882 Quoted Eurobond interest
  1484. 883 Interest on loan to buy life annuity
  1485. 884 Relevant foreign income
  1486. 885 Authorised persons dealing in financial instruments
  1487. 886 Interest paid by recognised clearing houses etc
  1488. 887 Payments made by registered societies
  1489. 888 Statutory interest
  1490. 888A Qualifying private placements
  1491. 888B Designated dividends of investment trusts
  1492. 888C Interest distributions of certain open-ended investment companies
  1493. 888D Interest distribution of certain authorised unit trusts
  1494. 888DA Payments of interest by a QAHC
  1495. 888E Interest on certain peer-to-peer lending
  1496. 889 Payments in respect of building society securities
  1497. 890 Overview of Chapter
  1498. 891 Meaning of “UK public revenue dividend”
  1499. 892 Duty to deduct from certain UK public revenue dividends
  1500. 893 Payments of UK public revenue dividends which are payable gross
  1501. 894 Treasury directions
  1502. 895 Deduction at source application
  1503. 896 Withdrawal of application
  1504. 897 Power to make regulations
  1505. 898 Overview of Chapter
  1506. 899 Meaning of “qualifying annual payment”
  1507. 900 Deduction from commercial payments made by individuals
  1508. 901 Deduction from annual payments made by other persons
  1509. 902 Meaning of “applicable rate” in section 901
  1510. 903 Deduction from patent royalties
  1511. 904 Annual payments for dividends or non-taxable consideration
  1512. 905 Interpretation of Chapter
  1513. 906 Certain royalties etc where usual place of abode of owner is abroad
  1514. 907 Meaning of “intellectual property”
  1515. 908 Royalty payments etc made through UK resident agents
  1516. 909 Royalty payments: further provision
  1517. 910 Proceeds of a sale of patent rights: payments to non-UK residents
  1518. 911 Double taxation arrangements: deduction at treaty rate
  1519. 912 Power to make directions disapplying section 911
  1520. 913 Interpretation of sections 911 and 912
  1521. 914 European Union
  1522. 915 Power to make directions disapplying section 914
  1523. 916 Duty of payee to notify if payment not exempt
  1524. 917 Supplementary
  1525. 917A Tax avoidance arrangements
  1526. 918 Manufactured dividends on UK shares: Real Estate Investment Trusts
  1527. 919 Manufactured interest on UK securities: payments by UK residents etc
  1528. 920 Foreign payers of manufactured interest: the reverse charge
  1529. 921 Cases where interest on underlying securities paid gross
  1530. 922 Manufactured overseas dividends: payments by UK residents etc
  1531. 923 Foreign payers of manufactured overseas dividends: the reverse charge
  1532. 924 Power to reduce section 923 liability
  1533. 925 Power to provide set-off entitlement
  1534. 925A Creditor repos
  1535. 925B Debtor repos
  1536. 925C Actual payments ignored if section 925A ... applies
  1537. 925D Power to modify repo sections
  1538. 925E Cases where section 925D applies: non-standard repos
  1539. 925F Interpretation of the repo sections
  1540. 926 Interpretation of Chapter
  1541. 927 Regulation-making powers: general
  1542. 928 Chargeable payments connected with exempt distributions
  1543. 929 Overview of Chapter
  1544. 930 Exception from duties to deduct sums representing income tax
  1545. 931 Power to make directions disapplying section 930
  1546. 932 Meaning of “qualifying partnership”
  1547. 933 UK resident companies
  1548. 934 Non-UK resident companies
  1549. 935 PEP and ISA managers
  1550. 936 Recipients who are to be paid gross
  1551. 937 Partnerships
  1552. 938 Consequences of reasonable but incorrect belief
  1553. 939 Duty to retain bonds where issue treated as payment of interest
  1554. 940 Exception from duty to retain bonds
  1555. 940A No appropriate bond or combination of bonds
  1556. 941 Deemed payments to unit holders and deemed deductions of income tax
  1557. 942 Income tax to be collected from trustees
  1558. 943 Calculation of trustees' income pool
  1559. ... Treatment of cases involving double tax relief
  1560. 943B The “foreign element” of a deemed deduction or deemed income
  1561. 943C Calculation of trustees' double tax relief pool
  1562. 943D Annual statements
  1563. 944 Directions for deduction from payments to non-UK residents
  1564. 945 Overview of Chapter
  1565. 946 Payments within this section
  1566. 947 Return periods
  1567. 948 Meaning of “accounting period”
  1568. 949 Payments in an accounting period
  1569. 950 Payments otherwise than in an accounting period
  1570. 951 Collection and payment of income tax
  1571. 952 Conditions for a set-off claim
  1572. 953 How a set-off claim works
  1573. 954 Proceedings begun after a set-off claim is made
  1574. 955 Proceedings begun before a set-off claim is made
  1575. 956 Assessments where section 946 payment included in return
  1576. 957 Assessments in other cases
  1577. 958 Payer's duty to deliver amended return
  1578. 959 Application of Income Tax Acts provisions about time limits for assessments
  1579. 960 Further provisions about assessments
  1580. 961 Relationship between Chapter and Income Tax Acts powers
  1581. 962 Power to make regulations modifying Chapter
  1582. 963 Collection of income tax on certain payments by other persons
  1583. 963A Power to make regulations modifying section 963
  1584. 964 Collection through self-assessment return
  1585. 965 Overview of sections 966 to 970
  1586. 966 Duty to deduct and account for sums representing income tax
  1587. 967 Calculation of sums representing income tax
  1588. 968 Treatment of sums representing income tax
  1589. 969 Regulations
  1590. 970 Supplementary
  1591. 971 Income tax due in respect of income of non-resident landlords
  1592. 972 Regulations under section 971
  1593. 973 Income tax due in respect of distributions
  1594. 974 Regulations under section 973
  1595. 975 Statements about deduction of income tax
  1596. 975A Statements about certain payments of interest
  1597. 976 Arrangements for payments of interest less tax or at specified net rate
  1598. 977 Payments to companies
  1599. 978 Application to public departments
  1600. 979 Designated international organisations: exceptions from duties to deduct
  1601. 979A FSCS payments representing interest
  1602. 980 Derivative contracts: exception from duties to deduct
  1603. 981 Foreign currency securities etc: exception from duties to deduct
  1604. 981A Offshore receipts in respect of intangible property: exception from duties to deduct
  1605. 982 Income tax is calculated by reference to gross amounts
  1606. 983 Meaning of “deposit”
  1607. 984 Meaning of “financial instrument”
  1608. 985 Meaning of “qualifying certificate of deposit”
  1609. 986 Meaning of “qualifying uncertificated eligible debt security unit”
  1610. 987 Meaning of “quoted Eurobond”
  1611. 988 Overview of Chapter
  1612. 989 The definitions
  1613. 990 Meaning of “Act”
  1614. 991 Meaning of “bank”
  1615. 992 Meaning of “company”
  1616. 993 Meaning of “connected” persons
  1617. 994 Meaning of “connected” persons: supplementary
  1618. 995 Meaning of “control”
  1619. 996 Meaning of “farming” and related expressions
  1620. 997 Meaning of “generally accepted accounting practice” and related expressions
  1621. 998 Meaning of “grossing up”
  1622. 998A Meaning of “hire-purchase agreement”
  1623. 999 Meaning of “local authority”
  1624. 1000 Meaning of “local authority association”
  1625. 1001 Meaning of “offshore installation”
  1626. 1002 Regulations about the meaning of “offshore installation”
  1627. 1003 Meaning of “oil and gas exploration and appraisal”
  1628. 1004 Meaning of “property investment LLP”
  1629. 1005 Meaning of “recognised stock exchange”etc
  1630. 1006 Meaning of “research and development”
  1631. 1007 Meaning of “unit trust scheme”
  1632. 1007A Meaning of “permanent establishment”
  1633. 1008 Scotland
  1634. 1009 Sources of income within the charge to income tax or corporation tax
  1635. 1010 Application of Income Tax Acts to recognised investment exchanges
  1636. 1011 References to married persons, or civil partners, living together
  1637. 1012 Relationship between rules on highest part of total income
  1638. 1013 Territorial sea of the United Kingdom
  1639. 1014 Orders and regulations
  1640. 1015 Territorial scope of charges under certain provisions to which section 1016 applies
  1641. 1016 Table of provisions to which this section applies
  1642. 1017 Abbreviated references to Acts
  1643. 1018 “Act” to include Scottish and Northern Ireland legislation in some cases
  1644. 1019 Meaning of “certificate of deposit”
  1645. 1020 Claims and elections
  1646. 1021 Application of definitions of “connected” persons and “control”
  1647. 1022 Meaning of “debenture”
  1648. 1023 Meaning of “double taxation arrangements”
  1649. 1024 Meaning of “gilt-edged securities”
  1650. 1025 Meaning of “modified net income”
  1651. 1026 Meaning of “non-qualifying income” for the purposes of section 1025
  1652. 1027 Minor and consequential amendments
  1653. 1028 Power to make consequential provision
  1654. 1029 Power to undo changes
  1655. 1030 Transitional provisions and savings
  1656. 1031 Repeals and revocations
  1657. 1032 Index of defined expressions
  1658. 1033 Extent
  1659. 1034 Commencement
  1660. 1035 Short title
  1661. SCHEDULE 1 Minor and consequential amendments
  1662. SCHEDULE 2 Transitionals and savings
  1663. SCHEDULE 3 Repeals and revocations
  1664. SCHEDULE 4 Index of defined expressions

Proposed changes to this act

No one has proposed a change to this act yet.

1,664 provisions

21 Indexation of the basic rate limit and starting rate limit for savings

(1) This section applies if the consumer prices index for the September before the start of a tax year is higher than it was for the previous September. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) The basic rate limit for the tax year is the amount found as follows. Step 1 Increase the basic rate limit for the previous tax year by the same percentage as the percentage increase in the consumer prices index. Step 2 If the result of Step 1 is a multiple of £100, it is the basic rate limit for the tax year. If the result of Step 1 is not a multiple of £100, round it up to the nearest amount which is a multiple of £100. That amount is the basic rate limit for the tax year. (3A) The starting rate limit for savings for the tax year is the amount found as follows. Step 1 Increase the starting rate limit for savings for the previous tax year by the same percentage as the percentage increase in the consumer prices index. Step 2 If the result of Step 1 is a multiple of £10, it is the starting rate limit for savings for the tax year. If the result of Step 1 is not a multiple of £10, round it up to the nearest amount which is a multiple of £10. That amount is the starting rate limit for savings for the tax year. (4) Subsections (3) and (3A) do not require a change to be made in the amounts deductible or repayable under PAYE regulations during the period beginning on 6 April and ending on 17 May in the tax year. (5) Before the start of the tax year the Treasury must make an order replacing the amounts specified in sections 10 and 12 with the amounts which, as a result of subsections (3) and (3A), are the basic rate limit and starting rate limit for savings for the tax year. (6) In this section “consumer prices index” means the all items consumer prices index published by the Statistics Board.

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22 Overview of Chapter

(1) This Chapter deals with the calculation of a person's income tax liability for a tax year. (2) But it does not deal with any income tax liability mentioned in section 32. (3) This Chapter needs to be read with Chapter 1 of Part 14 (limits on liability to income tax of non-UK residents).

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23 The calculation of income tax liability

To find the liability of a person (“the taxpayer”) to income tax for a tax year, take the following steps. Step 1 Identify the amounts of income on which the taxpayer is charged to income tax for the tax year. The sum of those amounts is “total income”. Each of those amounts is a “component” of total income. Step 2 Deduct from the components the amount of any relief under a provision listed in relation to the taxpayer in section 24 to which the taxpayer is entitled for the tax year. See sections 24A and 25 for further provision about the deduction of those reliefs. See also section 24B which provides that a taxpayer’s net income is taken to be £0 in certain cases. The sum of the amounts of the components left after this step is “net income”. Step 3 Deduct from the amounts of the components left after Step 2 any allowances to which the taxpayer is entitled for the tax year under Chapter 2 of Part 3 of this Act or ... (individuals: personal allowance and blind person's allowance). See section 25 for further provision about the deduction of those allowances. Step 4 Calculate tax at each applicable rate on the amounts of the components left after Step 3. See Chapter 2 of this Part for the rates at which income tax is charged and the income charged at particular rates. If the taxpayer is a trustee, see also Chapters 3 to 5 and 10 of Part 9 (special rules about settlements and trustees) for further provision about the income charged at particular rates. See also section 863I of ITTOIA 2005 which provides for certain partnership profits to be charged at the additional rate. Step 5 Add together the amounts of tax calculated at Step 4. Step 6 Deduct from the amount of tax calculated at Step 5 any tax reductions to which the taxpayer is entitled for the tax year under a provision listed in relation to the taxpayer in section 26. See sections 27 to 29 for further provision about the deduction of those tax reductions. Step 7 Add to the amount of tax left after Step 6 any amounts of tax for which the taxpayer is liable for the tax year under any provision listed in relation to the taxpayer in section 30. The result is the taxpayer's liability to income tax for the tax year.

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24 Reliefs deductible at Step 2

(1) If the taxpayer is an individual, the provisions referred to at Step 2 of the calculation in section 23 are— (a) the following— section 72 (early trade losses relief), Chapter 6 of Part 4 (share loss relief), Chapter 3 of Part 8 (gifts of shares, securities and real property to charities etc), sections 457 and 458 of this Act or section 266(7) of ICTA (payments to trade unions or police organisations), section 41P of ITEPA 2003 (deduction for amount that reflects qualifying foreign employment income), section 193(4) of FA 2004 (pension schemes: relief under net pay arrangement: excess relief), ... section 194(1) of FA 2004 (pension schemes: relief on making of claim), and section 845A of ITTOIA 2005 (claim for relief for qualifying new residents), and (b) the following— section 64 (trade loss relief against general income), section 83 (carry-forward trade loss relief), section 89 (terminal trade loss relief), section 96 (post-cessation trade relief), section 118 (carry-forward property loss relief), section 120 (property loss relief against general income), section 125 (post-cessation property relief), section 128 (employment loss relief against general income), section 152 (loss relief against miscellaneous income), Chapter 1 of Part 8 (interest payments), Chapter 1A of Part 8 (irrecoverable peer-to-peer loans), Chapter 4 of Part 8 (annual payments ...), section 574 (manufactured dividends on UK shares: payments by non-companies), section 579 (manufactured interest on UK securities: payments not otherwise deductible), Part 2 of CAA 2001 (plant and machinery allowances), in a case where the allowance is to be given effect under section 258 of that Act (special leasing of plant and machinery), ... Part 8 of CAA 2001 (patent allowances), in a case where the allowance is to be given effect under section 479 of that Act (persons having qualifying non-trade expenditure), section 555 of ITEPA 2003 (deduction for liabilities related to former employment), section 446 of ITTOIA 2005 (strips of government securities: relief for losses), section 454(4) of ITTOIA 2005 (listed securities held since 26 March 2003: relief for losses: persons other than trustees), and section 600 of ITTOIA 2005 (relief for patent expenses). (2) In any other case, the provisions referred to at Step 2 of the calculation in section 23 are— (a) the provisions listed in subsection (1)(b), and (b) regulation 18 of the Unauthorised Unit Trusts (Tax) Regulations 2013.

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24A Limit on Step 2 deductions

(1) If the taxpayer is an individual, there is a limit on certain deductions which may be made for the tax year at Step 2. (2) The limit is determined as follows. (3) Amount A must not exceed amount B. (4) Amount A is— (a) the deductions for the tax year at Step 2 for the reliefs listed in subsection (6) taken together, less (b) so much of those deductions as fall within subsection (7). (5) Amount B is— (a) £50,000, or (b) if more, 25% of the taxpayer's adjusted total income for the tax year (see subsection (8)). (6) The reliefs are— (a) relief under section 64 (trade loss relief against general income); (b) relief under section 72 (early trade losses relief); (c) relief under section 96 (post-cessation trade relief); (d) relief under section 120 (property loss relief against general income); (e) relief under section 125 (post-cessation property relief); (f) relief under section 128 (employment loss relief against general income); (g) relief under Chapter 6 of Part 4 (share loss relief); (h) relief under Chapter 1 of Part 8 (interest payments); (i) relief under section 555 of ITEPA 2003 (deduction for liabilities relating to former employment); (j) relief under section 446 of ITTOIA 2005 (strips of government securities: relief for losses); (k) relief under section 454(4) of ITTOIA 2005 (listed securities held since 26 March 2003: relief for losses: persons other than trustees). (7) The deductions falling within this subsection are— (a) deductions for amounts of relief so far as attributable to allowances under Part 3A of CAA 2001 (business premises renovation allowances); (b) deductions for amounts of relief under a provision mentioned in subsection (6)(a) to (e) so far as made from profits of the trade or business to which the relief in question relates; (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) deductions for amounts of relief under the provision mentioned in subsection (6)(g)— (i) where the shares in question fall within section 131(2)(a) (qualifying shares to which EIS relief is attributable), or (ii) where SEIS relief is attributable to the shares in question as determined in accordance with Part 5A (seed enterprise investment scheme), or (iii) where SI relief is attributable to the shares in question as determined in accordance with Part 5B (income tax relief for social investments). (8) The taxpayer's “adjusted total income” for the tax year is calculated as follows. Step 1 Take the amount of the taxpayer's total income for the tax year. Step 2 Add back the amounts of any deductions allowed under Part 12 of ITEPA 2003 (payroll giving) in calculating the taxpayer's income which is charged to tax for the tax year. Step 3 If the taxpayer is given relief in accordance with section 192 of FA 2004 (pension schemes: relief at source) in respect of any contribution paid in the tax year under a pension scheme, deduct the gross amount of the contribution. The “gross” amount of a contribution is the amount of the contribution before deduction of tax under section 192(1) of FA 2004. Step 4 If the taxpayer is entitled to a deduction for relief under section 193(4) or 194(1) of FA 2004 (pension schemes: excess relief under net payment arrangements or relief on making a claim) for the tax year, deduct the amount of the excess or contribution (as the case may be). The result is the taxpayer's adjusted total income for the tax year.

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24B Calculation of net income at Step 2 for low income estates and trusts

(1) Subsection (2) applies in relation to a taxpayer if—1 (a) they are the personal representative of a deceased person and, ignoring this section, their net income in that capacity at the end of Step 2 of the calculation in section 23 would be equal to or less than the de minimis estates amount, or (b) they are the trustee of a settlement (“the relevant settlement”) and, ignoring this section, their net income in that capacity at the end of that Step would be equal to or less than the de minimis trusts amount. (2) The taxpayer’s net income in their capacity as a personal representative of a deceased person or trustee of a settlement (as the case may be) at the end of Step 2 of the calculation in section 23 is taken to be £0. (3) The de minimis estates amount is £500. (4) The de minimis trusts amount is— (a) £500, or (b) in a case where subsection (5) applies, the higher of— (i) £100, and (ii) the settlor’s threshold amount. (5) This subsection applies where— (a) the settlor in relation to the relevant settlement is also the settlor in relation to one or more qualifying settlements, (b) ignoring this section, the trust rate income (within the meaning of Part 9) for the tax year of the trustees of the relevant settlement would be greater than £0, and (c) the relevant settlement is a settlement in respect of which each of the conditions mentioned in subsection (9) is met throughout the tax year. (6) The settlor’s threshold amount is the amount given by— £500QS+1 where QS is the total number of qualifying settlements. (7) If there is more than one settlor in relation to the relevant settlement— (a) calculate the threshold amount of each of them, and (b) use the lowest of those threshold amounts for the purposes of subsection (4)(b)(ii). (8) A settlement is a “qualifying settlement” if— (a) it is not the relevant settlement, (b) it is in existence at a time during the tax year, (c) ignoring this section, the trust rate income (within the meaning of Part 9) for the tax year of the trustees of the settlement would be greater than £0, and (d) it is a settlement in respect of which each of the conditions mentioned in subsection (9) is met throughout the tax year. (9) The conditions are— (a) the property comprised in the settlement is not held for a pensions purpose within the meaning of paragraph 7(3) of Schedule 1C to TCGA 1992 (property comprised in settlements held for a pensions purpose); (b) no income arising under the settlement is treated as the income of the settlor as a result of section 624 of ITTOIA 2005 (income where settlor retains an interest); (c) the settlement is not a qualifying trust within the meaning of section 34 or 35 of FA 2005 (trusts for the benefit of disabled persons or relevant minors); (d) the settlement is not a heritage maintenance settlement within the meaning of Chapter 10 of Part 9 (heritage maintenance settlements) (see section 507(2) and (3)).

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25 Reliefs and allowances deductible at Steps 2 and 3: supplementary

(1) This section supplements the provisions about reliefs and allowances in Steps 2 and 3 of the calculation in section 23. (2) At Steps 2 and 3, deduct the reliefs and allowances in the way which will result in the greatest reduction in the taxpayer's liability to income tax. (3) Subsection (2) is subject to— section 65(2) to (4) (priority rule in relation to trade loss relief against general income), section 80(2) (ring fence income), section 83(3) and (4) (carry-forward trade loss relief against trade profits), section 89(3) (terminal trade loss relief against trade profits), section 93(2) (terminal trade loss relief and mineral extraction trade), section 95(2) (foreign trades etc reliefs only against qualifying foreign income), section 115(2) (restrictions on reliefs for firms exploiting films), section 118(3) and (4) (carry-forward property loss relief against property business profits), section 121(2) and (3) (priority rule in relation to property loss relief against general income), section 129(2) to (4) (priority rule in relation to employment loss relief against general income), section 133(4) (share loss relief against general income), section 152(4) and (7) (loss relief against miscellaneous income), sections 412A(4), 412B(3) and 412C(3) (relief for irrecoverable peer-to-peer loans only against interest on certain loans), sections 574(3) to (8) and 575 (manufactured dividends on UK shares: restrictions on deductions), section 579(2) to (5) and 580 (manufactured interest on UK securities: restrictions on deductions), section 258 of CAA 2001 (special leasing of plant or machinery), ... section 479 of that Act (persons having qualifying non-trade expenditure), section 41P of ITEPA 2003 (qualifying foreign employment income), section 601 of ITTOIA 2005 (how relief for patent expenses is given), section 845A of ITTOIA 2005 (qualifying foreign income), and any other provision of the Income Tax Acts under which reliefs or allowances deductible at Step 2 or 3 are not permitted to be deducted from particular components of income or are required to be deducted from particular components of income or in a different order. (3A) Subsection (2) is also subject to a requirement that the reliefs and allowances in Steps 2 and 3 must be deducted from components of income other than property income, savings income or dividend income (so far as it would otherwise be possible to do so) before they are deducted from property income, savings income or dividend income. (4) A relief or allowance may be deducted at Step 2 or 3 only so far as there is sufficient income from which to deduct it. (5) In deciding whether there is sufficient income from which to deduct a relief or allowance, reliefs and allowances already deducted at Step 2 or 3 must be taken into account. (6) Nothing in Step 2 or 3 is to be read as permitting a relief or allowance to be deducted more than once.

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26 Tax reductions

(1) If the taxpayer is an individual, the provisions referred to at Step 6 of the calculation in section 23 are— (a) the following— Chapter 3 of Part 3 of this Act ... (tax reductions for married couples and civil partners), Chapter 3A of Part 3 of this Act (transferable tax allowance for married couples and civil partners), Chapter 1 of Part 5 (EIS relief), Chapter 1 of Part 5A (SEIS relief), Chapter 1 of Part 5B (relief for social investments), Chapter 2 of Part 6 (VCT relief), Chapter 1 of Part 7 (community investment tax relief), section 399B (relief for non-deductible interest on loan to invest in partnership with residential property business), section 414A(3) (gift aid where devolved basic rate is above basic rate), section 453 (qualifying maintenance payments), . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 461 (spreading of patent royalty receipts), section 353(1A) of ICTA (relief for interest on loan to buy life annuity), section 192A of FA 2004 (relief at source: additional relief), section 274A of ITTOIA 2005 (property business: relief for non-deductible costs of a dwelling-related loan), section 535 of ITTOIA 2005 (top slicing relief), and section 539 of ITTOIA 2005 (relief for deficiencies), and (b) the following— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 401 of ITTOIA 2005 (relief: distribution repaying shares or security issued in earlier distribution), ... sections 677 and 678 of ITTOIA 2005 (relief where foreign estates have borne UK income tax). sections 2 and 6 of TIOPA 2010 (double taxation relief: relief by agreement), and section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax where no double taxation arrangements). (2) In any other case, the provisions referred to at Step 6 of the calculation in section 23 are— (a) the provisions listed in subsection (1)(b), (aa) section 274B of ITTOIA 2005 (trusts with accumulated or discretionary income derived from property business: relief for non-deductible costs of dwelling-related loans), and (b) section 26 of FA 2005 (trusts with vulnerable beneficiary: income tax relief).

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27 Order of deducting tax reductions: individuals

(1) This section makes provision about the order in which tax reductions are to be deducted at Step 6 of the calculation in section 23, if the taxpayer is an individual. (2) Deduct the tax reductions in the order which will result in the greatest reduction in the taxpayer's liability to income tax for the tax year. (3) Subsection (2) is subject to subsections (4) to (6). (4) If the taxpayer is entitled to tax reductions for the tax year under more than one of the provisions listed in subsection (5), a tax reduction under a provision mentioned earlier in the list must be deducted before a tax reduction under a provision mentioned later in the list. (5) The provisions are— Chapter 2 of Part 6 (VCT relief), Chapter 1 of Part 5 (EIS relief), Chapter 1 of Part 5A (SEIS relief), Chapter 1 of Part 5B (relief for social investments), Chapter 1 of Part 7 (community investment tax relief), section 353(1A) of ICTA (relief for interest on loan to buy life annuity), section 453 (qualifying maintenance payments), . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chapter 3 of Part 3 of this Act ... (tax reductions for married couples and civil partners). (6) If the taxpayer is entitled to a tax reduction under— (a) sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or (b) section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax where no double taxation arrangements), that tax reduction must be deducted after any other tax reduction to which the taxpayer is entitled for the tax year.

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28 Order of deducting tax reductions: other persons

(1) This section makes provision about the order in which tax reductions are to be deducted at Step 6 of the calculation in section 23, if the taxpayer is a person other than an individual. (2) Deduct the tax reductions in the order which will result in the greatest reduction in the taxpayer's liability to income tax for the tax year. (3) Subsection (2) is subject to subsections (4) and (5). (4) If the taxpayer is entitled to a tax reduction under— (a) sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or (b) section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax where no double taxation arrangements), that tax reduction must be deducted after any other tax reduction to which the taxpayer is entitled for the tax year, subject to subsection (5). (5) If the taxpayer is a trustee and is entitled to a tax reduction under section 26 of FA 2005 (trusts with vulnerable beneficiary: income tax relief) that tax reduction must be deducted after any other tax reduction to which the taxpayer is entitled for the tax year.

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29 Tax reductions: supplementary

(1) This section supplements the provisions about tax reductions in Step 6 of the calculation in section 23. (2) A tax reduction may be deducted at Step 6 only so far as there is sufficient tax calculated at Step 5 of the calculation from which to deduct it. (3) In deciding whether there is sufficient tax calculated at Step 5 from which to deduct a tax reduction, tax reductions already deducted at Step 6 must be taken into account. (4) Subsections (2) and (3) apply in addition to— (a) sections 36(1) to (5) and (7) and 41 of TIOPA 2010 (limits on credit for foreign tax), and (b) any other provision of the Income Tax Acts that limits the amount of a tax reduction. (4A) If the taxpayer is an individual, the total of the tax reductions within subsection (4B) that are deducted at Step 6 must not be greater than— A − B where— A is the amount of tax calculated at Step 5, and B is the total amount of the tax treated under section 414 (gift aid) as deducted from gifts made by the taxpayer in the tax year. (4B) A tax reduction is within this subsection if it is under— Chapter 1 of Part 5 (EIS relief), Chapter 1 of Part 5A (SEIS relief), Chapter 1 of Part 5B (relief for social investments), Chapter 2 of Part 6 (VCT relief), or Chapter 1 of Part 7 (community investment tax relief). (4C) Subsection (4A) applies in addition to subsections (2) and (3). (5) For the purposes of this Chapter, a person is treated as being entitled to a tax reduction under sections 2 and 6 of TIOPA 2010 if the person is entitled to credit against income tax under double taxation arrangements.

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30 Additional tax

(1) If the taxpayer is an individual, the provisions referred to at Step 7 of the calculation in section 23 are— section 414A(4) read with section 414A(5) (gift aid where devolved basic rate is below basic rate), section 424 (gift aid: charge to tax), section 809ZMA (tainted donations: clawback where tainting occurs in later year), section 809ZMB (tainted donations: associated donations) section 809ZN (tainted gift aid donations: charge to tax), section 809ZO (tainted charity donations by trustees: charge to tax), Chapter 8 of Part 10 of ITEPA 2003 (high income child benefit charge), Chapter 9 of Part 10 of ITEPA 2003 (winter fuel payment charge), section 192B of FA 2004 (relief at source: excessive relief given), section 205 of FA 2004 (pension schemes: the short service refund lump sum charge), ... section 206 of FA 2004 (pension schemes: the special lump sum death benefits charge), section 208 of FA 2004 (pension schemes: the unauthorised payments charge), section 209 of FA 2004 (pension schemes: the unauthorised payments surcharge), ... section 227 of FA 2004 (pension schemes: the annual allowance charge), and section 244A of FA 2004 (pension schemes: the overseas transfer charge), section 7 of F(No.2)A 2005 (social security pension lump sum). (2) If the taxpayer is a trustee, the provisions referred to at Step 7 of the calculation in section 23 are— section 496 (discretionary payments by trustees: tax pool adjustment), section 809ZMA (tainted donations: clawback where tainting occurs in later year), section 809ZMB (tainted donations: associated donations) section 809ZN (tainted gift aid donations: charge to tax), and section 809ZO (tainted charity donations by trustees: charge to tax).

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31 Total income: supplementary

(1) This section applies for the purposes of calculating total income. (2) Income from which a deduction in respect of income tax is to be made (or treated as made) at the basic rate , the property basic rate, the savings basic rate, the Welsh basic rate or the Scottish basic rate ... in force for a tax year is treated as income of that tax year. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Subsection (2) applies even if all or part of the income, or the dividend or other distribution, accrued or will accrue in a different tax year. (5) An assessment that has become final and conclusive for income tax purposes for a tax year is also final and conclusive for the purposes of calculating total income.

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32 Liability not dealt with in the calculation

The liabilities referred to in section 22(2) are income tax liability— under section 74C(5) (non-active traders: withdrawal of relief), under section 79(1) (capital allowances restrictions: withdrawal of relief), under section 81(6) (dealings in commodity futures: withdrawal of relief), under section 103B(5) (non-active partners: withdrawal of relief), under section 235 (withdrawal or reduction of EIS relief), under section 257G (withdrawal or reduction of SEIS relief), under section 257S (withdrawal or reduction of relief for social investments), under sections 266 to 270 (withdrawal or reduction of VCT relief), under section 372 (withdrawal or reduction of CITR), under section 512 (heritage maintenance settlements: application of property for non-heritage purposes), under Chapter 1 of Part 13 (transactions in securities), under regulations made under section 918(4) (foreign payers of manufactured dividends: Real Estate Investment Trusts: the reverse charge), under section 920 or 923 (foreign payers of manufactured interest or manufactured overseas dividends: the reverse charge), under Chapter 15, 16 or 17 of Part 15 (deduction of tax at source: collection mechanisms), . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . under paragraph 11(3) of Schedule 20 to FA 1994 (recovery of excess credit for overseas tax: changes for facilitating self-assessment), of the person who is (or persons who are) the responsible person in relation to an employer-financed retirement benefits scheme under section 394(2) of ITEPA 2003, under Chapter 5 of Part 4 of FA 2004 (registered pension schemes: tax charges), except any liability under a provision mentioned in section 30(1), ... under section 682(4) of ITTOIA 2005 (assessments, adjustments and claims after the administration period), so far as the liability represents a tax reduction given effect at Step 6 of the calculation in section 23, and under section 24(4) of TIOPA 2010 (recovery of excess credit for overseas tax).

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33 Overview of Part

(1) This Part provides for personal reliefs. (2) Chapter 2 provides for entitlement to a personal allowance and a blind person's allowance. (3) Chapter 3 provides for tax reductions for married couples and civil partners where a party to the marriage or civil partnership is born before 6 April 1935. (3A) Chapter 3A provides for a transferable tax allowance for married couples and civil partners. (4) Chapter 4 contains provision applicable for the purposes of Chapters 2 , 3 and 3A, in particular— (a) requirements about residence etc of claimants to allowances under Chapter 2 or tax reductions under Chapter 3 or 3A, and (b) indexation of the amounts of the allowances under Chapter 2 and tax reductions under Chapter 3.

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34 Allowances under Chapter

(1) In this Chapter— (a) section 35 deals with entitlement to a personal allowance, (b) section 38 deals with entitlement to a blind person's allowance, and (c) section 39 deals with the transfer of part of a blind person's allowance to a spouse or civil partner. (2) An allowance under this Chapter is given effect at Step 3 of the calculation in section 23. (3) See also— (a) section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and (b) section 845E of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made. Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any allowance under this Chapter for that tax year.

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35 Personal allowance

(1) An individual who makes a claim is entitled to a personal allowance of £12,570 for a tax year if the individual meets the requirements of section 56 (residence etc). (2) For an individual whose adjusted net income exceeds £100,000, the allowance under subsection (1) is reduced by one-half of the excess. (3) If the amount of any allowance that remains after the operation of subsection (2) would otherwise not be a multiple of £1, it is to be rounded up to the nearest amount which is a multiple of £1. (4) For the meaning of “adjusted net income” see section 58.

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36 Personal allowance for those born after 5 April 1938 but before 6 April 1948

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37 Personal allowance for those born before 6 April 1938

(1) An individual who makes a claim is entitled to a personal allowance of £10,660, or (if greater) the section 35 amount, for a tax year if the individual— (a) was born before 6 April 1938, and (b) meets the requirements of section 56 (residence etc). (2) If the allowance under subsection (1) is greater than the section 35 amount, for an individual whose adjusted net income for the tax year exceeds £27,700, the allowance under subsection (1)— (a) is reduced by an amount equal to half of that excess income, but (b) is not reduced below the section 35 amount. (2A) In this section “the section 35 amount” means the amount of any allowance to which the individual would be entitled under section 35 for the tax year if the individual had been born after 5 April 1948. (3) For the meaning of “adjusted net income” see section 58.

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38 Blind person's allowance

(1) An individual who makes a claim is entitled to a blind person's allowance of £3,250 for a tax year if the individual— (a) meets the first or second condition for the whole or part of the tax year, and (b) meets the requirements of section 56 (residence etc). (2) The first condition is that the individual is— (a) registered as a severely sight-impaired adult in a register kept under section 77(1) of the Care Act 2014 (registers kept by local authorities in England), or (b) registered as a severely sight-impaired adult in a register kept under section 18(1) of the Social Services and Well-being (Wales) Act 2014 (registers kept by local authorities in Wales). (3) The second condition is that— (a) the individual is ordinarily resident in Scotland or Northern Ireland, and (b) because of the individual's blindness, the individual is unable to do any work for which eyesight is essential. (4) If an individual who is entitled to a blind person's allowance for a particular tax year— (a) became registered as a blind person in a register kept under section 29 of the National Assistance Act 1948 or as a severely sight-impaired person in a register kept under section 77(1) of the Care Act 2014 or section 18(1) of the Social Services and Well-being (Wales) Act 2014 in the tax year, but (b) obtained the evidence of blindness or of severe sight-impairment on the basis of which the registration was made in the preceding tax year, the individual is treated as having met the first condition for the whole of the preceding tax year.

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39 Transfer of part of blind person's allowance to a spouse or civil partner

(1) This section applies to an individual who is entitled to a blind person's allowance under section 38 for a tax year if— (a) the individual is a person whose spouse or civil partner is living with the individual for the whole or any part of the tax year, and (b) the spouse or civil partner meets the requirements of section 56 (residence etc). (2) If— (a) the allowance exceeds the individual's remaining relievable income, (b) the individual makes an election, and (c) the individual's spouse or civil partner makes a claim, the individual's spouse or civil partner is entitled to an allowance for the tax year equal to the amount of the excess. (3) The individual's remaining relievable income is the amount found by— (a) taking the amount of the individual's net income, and (b) subtracting any personal allowance to which the individual is entitled for the tax year.

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40 Election for transfer of allowance under section 39

(1) An election under section 39— (a) must be made not more than 4 years after the end of the tax year to which it relates, and (b) cannot be withdrawn. (2) If an individual makes an election for a tax year under section 39 the individual is treated as also giving notice under section 51(4) that section 51(1) (tax reductions for married couples and civil partners: transfer of unused relief) is to apply for the tax year.

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41 Allowances in year of death

(1) Any allowance to which an individual is entitled under this Chapter for any tax year, including the tax year in which the individual dies, is given in full. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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42 Tax reductions under Chapter

(1) This Chapter contains provisions about entitlement to tax reductions in a case where a party to a marriage or civil partnership was born before 6 April 1935. (2) Individuals are entitled to tax reductions under the following provisions of this Chapter— (a) section 45 (marriages before 5 December 2005), (b) section 46 (marriages and civil partnerships on or after 5 December 2005), (c) section 47 (election by individual to transfer relief under section 45 or 46), (d) section 48 (joint election to transfer relief under section 45 or 46), (e) section 49 (election for partial transfer back of relief), (f) section 51 (transfer of unused relief), and (g) section 52 (transfer back of unused relief). (3) The tax reductions under sections 45 to 49 are subject to section 54 (tax reductions in the year of marriage or entry into civil partnership). (4) A tax reduction under this Chapter is given effect at Step 6 of the calculation in section 23.

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43 Meaning of “the minimum amount”

In this Chapter “the minimum amount” means £4,530.

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43A Meaning of “relevant conversion”

For the purposes of this Chapter, a civil partnership between two people results from a relevant conversion if— (a) the civil partnership results from— (i) the conversion of their marriage into a civil partnership under Part 3 of the Marriage and Civil Partnership (Northern Ireland) (No. 2) Regulations 2020, or (ii) the conversion of their marriage into a civil partnership under Part 4 or 5 of those Regulations, and (b) the marriage took place before 5 December 2005.

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44 Election for new rules to apply

(1) In this Chapter “an election for the new rules to apply” means an election made by a husband and wife who got married before 5 December 2005 , or by the civil partners in a civil partnership which results from a relevant conversion, for the new rules to apply to them instead of the old rules. (2) In subsection (1)— “the new rules” means the rules for relief under section 46 (marriages and civil partnerships on or after 5 December 2005), and “the old rules” means the rules for relief under section 45 (marriages before 5 December 2005). (3) An election for the new rules to apply— (a) must be made jointly by the parties to the marriage or civil partnership, (b) must be made before the first tax year for which it is to be in force, (c) continues in force in each subsequent tax year, and (d) cannot be withdrawn.

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45 Marriages before 5 December 2005

(1) If a man— (a) makes a claim for a tax year, and (b) meets the conditions set out in subsection (2) or the conditions set out in subsection (2A), he is entitled to a tax reduction for the tax year of 10% of the amount specified in subsection (3)(a) ... . (2) The conditions are that— (a) for the whole or part of the tax year he is married and his wife is living with him, (b) the marriage took place before 5 December 2005 and no election for the new rules to apply is in force for the tax year, (c) he or his wife was born before 6 April 1935, and (d) he meets the requirements of section 56 (residence etc). (2A) The conditions are that— (a) for the whole or part of the tax year he is in a civil partnership and his female civil partner is living with him, (b) the civil partnership results from a relevant conversion and no election for the new rules to apply is in force for the tax year, (c) he or his civil partner was born before 6 April 1935, and (d) he meets the requirements of section 56 (residence etc). (3) The amount is— (a) £11,700 if either the man or his wife or civil partner is aged 75 or over at some time in the tax year ... (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) For a man whose adjusted net income for the tax year exceeds £39,200, the amounts specified in subsection (3) are reduced by half the excess. (5) But subsection (4) does not reduce the amounts specified in subsection (3) below the minimum amount. (6) For the meaning of “adjusted net income” see section 58.

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46 Marriages and civil partnerships on or after 5 December 2005

(1) If an individual— (a) makes a claim for a tax year, and (b) meets the conditions set out in subsection (2), the individual is entitled to a tax reduction for the tax year of 10% of the amount specified in subsection (3)(a) .... (2) The conditions are that— (a) for the whole or part of the tax year the individual is married or in a civil partnership and is living with the spouse or civil partner, (b) the marriage took place, or the civil partnership was formed, on or after 5 December 2005 or, if the marriage took place before that date or if the civil partnership results from a relevant conversion, an election for the new rules to apply is in force for the tax year, (c) the individual, or the spouse or civil partner, was born before 6 April 1935, (d) the individual meets the requirements of section 56 (residence etc), and (e) the individual's net income for the tax year exceeds that of the spouse or civil partner or, if they have the same amount of net income for the tax year, the individual is specified in an election as the person to be entitled to relief under this section for the year. (3) The amount is— (a) £11,700, if either the individual, or the spouse or civil partner, is aged 75 or over at some time in the tax year ... (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) For an individual whose adjusted net income for the tax year exceeds £39,200, the amounts specified in subsection (3) are reduced by half the excess. (5) But subsection (4) does not reduce the amounts specified in subsection (3) below the minimum amount. (6) An election under subsection (2)(e)— (a) is to be made jointly by the parties to the marriage or civil partnership, and (b) is to be made not more than 4 years after the end of the tax year to which the election relates. (7) For the meaning of “adjusted net income” see section 58.

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47 Election by individual to transfer relief under section 45 or 46

(1) If— (a) an individual's spouse or civil partner is entitled to a tax reduction under section 45 or 46 for a tax year, and (b) the individual meets the conditions set out in subsection (2), the individual is entitled to a tax reduction for that tax year of 10% of half the minimum amount. (2) The conditions are that the individual— (a) has made an election which is in force for the tax year, (b) makes a claim, and (c) meets the requirements of section 56 (residence etc). (3) If an individual is entitled to a tax reduction under subsection (1), the tax reduction to which the individual's spouse or civil partner is entitled under section 45 or 46 is calculated for the tax year as if the appropriate amount were reduced by half the minimum amount. (4) In subsection (3) “the appropriate amount” means— (a) if the individual's spouse or civil partner is entitled to a tax reduction under section 45, the amount specified in section 45(3)(a) ... , after any reductions under section 45(4) and 54(2), or (b) if the individual's spouse or civil partner is entitled to a tax reduction under section 46, the amount specified in section 46(3)(a) ... , after any reductions under sections 46(4) and 54(2).

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48 Joint election to transfer relief under section 45 or 46

(1) If— (a) an individual's spouse or civil partner is entitled to a tax reduction under section 45 or 46 for a tax year, and (b) the conditions set out in subsection (2) are met, the individual is entitled to a tax reduction for that tax year of 10% of the minimum amount. (2) The conditions are that— (a) the individual and the individual's spouse or civil partner have made a joint election which is in force for the tax year, (b) the individual makes a claim, and (c) the individual meets the requirements of section 56 (residence etc). (3) If an individual is entitled to a tax reduction under subsection (1), the tax reduction to which the individual's spouse or civil partner is entitled under section 45 or 46 is calculated for the tax year as if the appropriate amount were reduced by the minimum amount. (4) In subsection (3) “the appropriate amount” means— (a) if the individual's spouse or civil partner is entitled to a tax reduction under section 45, the amount specified in section 45(3)(a) ... , after any reductions under section 45(4) and 54(2), or (b) if the individual's spouse or civil partner is entitled to a tax reduction under section 46, the amount specified in section 46(3)(a) ... , after any reductions under sections 46(4) and 54(2).

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49 Election for partial transfer back of relief

(1) If an individual whose spouse or civil partner is entitled under section 48(1) to a tax reduction for a tax year— (a) has made an election which is in force for the tax year, and (b) makes a claim, the individual is entitled to a tax reduction for that tax year of 10% of half the minimum amount (in addition to any tax reduction to which the individual is entitled under section 45 or 46). (2) The amount of the tax reduction to which the individual's spouse or civil partner is entitled under section 48(1) for that tax year is 10% of half the minimum amount (instead of 10% of the minimum amount).

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50 Procedure for making and withdrawing elections under sections 47 to 49

(1) This section applies to elections under sections 47 to 49. (2) An election— (a) must, except in the cases dealt with by subsection (3), be made before the first tax year in which it is to be in force, and (b) continues in force in each subsequent tax year until it is withdrawn. (3) An election— (a) may be made in the first tax year in which it is to be in force if that is the tax year in which the marriage takes place or the civil partnership is formed, and (b) may be made in the first 30 days of the first tax year in which it is to be in force if appropriate notice is given before the tax year. (4) In subsection (3), “appropriate notice” means notice given to an officer of Revenue and Customs by the individual or (in the case of a joint election) individuals concerned that it is intended to make the election. (5) An election may be withdrawn only by— (a) a notice given by the individual or individuals by whom the election was made, or (b) a subsequent election under section 47, 48 or 49. (6) If an election is withdrawn under subsection (5)(a), the withdrawal does not have effect until the tax year after the one in which the notice is given. (7) A notice under subsection (5)(a)— (a) must be given to an officer of Revenue and Customs, and (b) must be in the form specified by the Commissioners for Her Majesty's Revenue and Customs.

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51 Transfer of unused relief

(1) If— (a) an individual's spouse or civil partner is entitled to a tax reduction under section 45 or 46 for a tax year, (b) the spouse or civil partner's MCA tax reductions are greater than the spouse or civil partner's comparable tax liability, and (c) the conditions set out in subsection (4) are met, the individual is entitled to a tax reduction for that tax year equal to the unused part of the spouse or civil partner's MCA tax reductions. (2) The spouse or civil partner's MCA tax reductions are the sum of— (a) the tax reduction to which the spouse or civil partner is entitled under section 45 or 46, and (b) any tax reduction under section 49 to which the spouse or civil partner is entitled for the tax year. (3) The unused part of the spouse or civil partner's MCA tax reductions is equal to— (a) the spouse or civil partner's MCA tax reductions, less (b) the spouse or civil partner's comparable tax liability. (4) The conditions are that— (a) the spouse or civil partner gives notice to an officer of Revenue and Customs that subsection (1) is to apply for the tax year, (b) the individual makes a claim, and (c) the individual meets the requirements of section 56 (residence etc). (5) The tax reduction to which the individual is entitled under subsection (1) is in addition to any tax reduction to which the individual is entitled under section 47 or 48. (6) The meaning of “comparable tax liability” is given in section 53.

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52 Transfer back of unused relief

(1) If— (a) an individual's spouse or civil partner is entitled to a tax reduction under section 47 or 48 for a tax year, (b) the tax reduction is greater than the spouse or civil partner's comparable tax liability, and (c) the conditions set out in subsection (3) are met, the individual is entitled to a tax reduction for that tax year equal to the unused part of the spouse or civil partner's tax reduction. (2) The unused part of the spouse or civil partner's tax reduction is equal to— (a) the tax reduction to which the spouse or civil partner is entitled, less (b) the spouse or civil partner's comparable tax liability. (3) The conditions are that— (a) the spouse or civil partner gives notice to an officer of Revenue and Customs that subsection (1) is to apply for the tax year, and (b) the individual makes a claim. (4) The tax reduction to which the individual is entitled under subsection (1) is in addition to any tax reduction to which the individual is entitled under section 45, 46 or 49. (5) The meaning of “comparable tax liability” is given in section 53.

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53 Transfer of unused relief: general

(1) For the purposes of sections 51 and 52, the comparable tax liability of an individual is the amount of the individual's tax left after Step 6 of the calculation in section 23 for the tax year, making that calculation with the modifications set out in subsections (2) and (3). (2) In making that calculation, do not deduct any tax reduction under— (a) sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or (b) section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax where there are no double taxation arrangements). (3) If the individual's entitlement to a tax reduction under this Chapter is extinguished under section 423(4) (gift aid: restriction of reliefs) to any extent, deduct from the amount calculated in accordance with subsections (1) and (2) the amount by which the tax reduction is reduced. (4) A notice under section 51 or 52— (a) must be given not more than 4 years after the end of the tax year to which it relates, (b) must be in the form specified by the Commissioners for Her Majesty's Revenue and Customs, and (c) cannot be withdrawn. (5) For the purposes of this section a person is treated as being entitled to a tax reduction under sections 2 and 6 of TIOPA 2010 if the person is entitled to credit against income tax under double taxation arrangements.

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54 Tax reductions in the year of marriage or entry into civil partnership

(1) Subsection (2) applies if an individual— (a) gets married or enters into a civil partnership in a tax year, and (b) claims a tax reduction under section 45 or 46 for that tax year. (2) In calculating the amount of the tax reduction (if any) to which the individual is entitled under that section, the amounts specified in section 45(3) or 46(3) (as applicable) are reduced by one twelfth for each month of the tax year which is a month ending before the date on which— (a) the marriage took place, or (b) the civil partnership was formed. (3) The reference in subsection (2) to the amounts specified in section 45(3) or 46(3) is to those amounts after any reduction under section 45(4) or 46(4). (4) But if— (a) the individual has previously been married or in a civil partnership in the same tax year, and (b) the conditions in section 45(2) or (2A) or 46(2) are met in relation to the earlier marriage or civil partnership, subsection (2) applies only if the claim is in respect of the later marriage or civil partnership. (5) If a claim under section 47, 48 or 49 is for the tax year in which the marriage takes place, or the civil partnership is formed, the references in those sections to the minimum amount are to be read as references to the minimum amount reduced by one twelfth for each month of the tax year which is a month ending before the date on which— (a) the marriage took place, or (b) the civil partnership was formed. (6) In this section, “month” means a period beginning with the sixth day of a calendar month and ending with the fifth day of the next calendar month.

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55 Sections 45 to 53: supplementary

(1) An individual is not entitled to more than one tax reduction under sections 45 to 48 for a tax year (regardless of whether the individual is a party to more than one marriage or civil partnership in the tax year). (2) For the purposes of sections 45 and 46 an individual is treated as having reached the age of 75 in a tax year if the individual was due to reach the age of 75 in the tax year, but dies in the tax year before reaching that age. (3) Unless this Chapter provides otherwise, a tax reduction to which an individual is entitled under this Chapter for a tax year, including the tax year in which the individual dies, is given in full.

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55A Tax reduction under Chapter

(1) This Chapter contains provisions about the entitlement of a spouse or civil partner to a tax reduction in a case where the other party to the marriage or civil partnership has elected for a reduced personal allowance. (2) A tax reduction under this Chapter is given effect at Step 6 of the calculation in section 23. (3) See also— (a) section 809G, in relation to tax years before 2025-26 where a claim for the remittance basis to apply is made, and (b) section 845E of ITTIOA 2005, in relation to tax years from 2025-26 where a foreign income claim, a foreign employment election or a foreign gain claim is made. Those sections provide that where an individual makes such a claim or election for a tax year, the individual is not entitled to any tax reduction under this Chapter for that tax year.

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55B Tax reduction: entitlement

(1) An individual is entitled to a tax reduction for a tax year of the appropriate percentage of the transferable amount if the conditions in subsection (2) are met. (2) The conditions are that— (a) the individual is the gaining party (see section 55C(1)(a)) in the case of an election under section 55C which is in force for the tax year, (b) the individual is not, for the tax year, liable to tax at a rate other than the basic rate, the property basic rate, the default basic rate, the savings basic rate, the dividend nil rate, the Scottish basic rate, a Scottish rate below the Scottish basic rate, the Scottish intermediate rate, the Welsh basic rate, the Welsh property basic rate, the dividend ordinary rate , the savings nil rate or the starting rate for savings, (ba) if for the tax year the individual is liable to tax at the dividend nil rate, the individual would for that year neither be liable to tax at the dividend upper rate, nor be liable to tax at the dividend additional rate, if section 13A (dividend nil rate) were omitted, (c) the individual meets the requirements of section 56 (residence) for the tax year, and (d) neither the individual nor the relinquishing spouse or civil partner makes a claim for the tax year under section 45 (married couple's allowance: marriages before 5 December 2005) or section 46 (married couple's allowance: marriages and civil partnerships on or after 5 December 2005). (3) “The appropriate percentage” is the basic rate or default basic rate or, in the case of a Scottish taxpayer or Welsh taxpayer, the Scottish basic rate or Welsh basic rate at which the individual would be charged to income tax for the tax year to which the reduction relates. (4) “The transferable amount”— (a) for the tax year 2015-16, is £1,060, and (b) for the tax year 2016-17 and subsequent tax years, is 10% of the amount of personal allowance specified in section 35(1) for the tax year to which the reduction relates. (5) If the transferable amount calculated in accordance with subsection (4)(b) would otherwise not be a multiple of £10, it is to be rounded up to the nearest amount which is a multiple of £10. (5A) In this section “the relinquishing spouse or civil partner”, in relation to an election under section 55C, means the individual mentioned in section 55C(1)(a) by whom, or by whose personal representatives, the election is made. (6) If an individual is entitled to a tax reduction under subsection (1) by reference to an election under section 55C, the personal allowance to which the relinquishing spouse or civil partner is entitled under section 35 ... is reduced for the tax year by the transferable amount. (7) If an individual who is entitled to a tax reduction for a tax year under subsection (1) dies during that tax year, subsection (6) is to be ignored (but this does not affect the individual's entitlement to the tax reduction).

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