Law

Income Tax Act 2007

United Kingdom · statute

Ask the law about thisMore laws of United KingdomFor machines: Markdown

Open at the publisher →

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

Copy read on 2026-11-08. The page it was read from

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

sha256 d41039ee89d56e2a41b16dabe0aee6ff436159b5fde34d4e35e2f7241db1985c

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

809EZDA Sums arising to connected persons other than companies

(1) This section applies in relation to an individual (“A”) if— (a) a sum arises to a person (“B”) who is connected with A, (b) B is not a company, (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (e) the sum does not arise to A apart from this section. (2) The sum referred to in subsection (1)(a) arises to A for the purposes of this Chapter. (3) Where a sum arises to A by virtue of this section, it arises to A at the time the sum referred to in subsection (1)(a) arises to B. (4) Section 993 (meaning of “connected”) applies for the purposes of this section, but as if— (a) subsection (4) of that section were omitted, and (b) partners in a partnership in which A is also a partner were not “associates” of A for the purposes of sections 450 and 451 of CTA 2010 (“control”).

Propose a change

809EZDB Sums arising to connected company or unconnected person

(1) This section applies in relation to an individual (“A”) if— (a) a sum arises to— (i) a company connected with A, or (ii) a person not connected with A, (b) any of the enjoyment conditions are met, and (c) the sum does not arise to A apart from this section. (2) The enjoyment conditions are— (a) the sum, or part of the sum, is in fact so dealt with by any person as to be calculated at some time to enure for the benefit of A or a person connected with A; (b) the arising of the sum operates to increase the value to A or a person connected with A of any assets which— (i) A or the connected person holds, or (ii) are held for the benefit of A or the connected person; (c) A or a person connected with A receives or is entitled to receive at any time any benefit provided or to be provided out of the sum or part of the sum; (d) A or a person connected with A may become entitled to the beneficial enjoyment of the sum or part of the sum if one or more powers are exercised or successively exercised (and for these purposes it does not matter who may exercise the powers or whether they are exercisable with or without the consent of another person); (e) A or a person connected with A is able in any manner to control directly or indirectly the application of the sum or part of the sum. In this subsection, in a case where the sum referred to in subsection (1)(a) arises to a company connected with A, references to a person connected with A do not include that company. (3) There arises to A for the purposes of this Chapter— (a) the sum referred to in subsection (1)(a), or (b) if the enjoyment condition in subsection (2)(a), (c), (d) or (e) is met in relation to part of the sum, that part of that sum, or (c) if the enjoyment condition in subsection (2)(b) is met, such part of that sum as is equal to the amount by which the value of the assets referred to in that condition is increased. (4) Where a sum (or part of a sum) arises to A by virtue of this section, it arises to A at the time it arises to the person referred to in subsection (1)(a)(i) or (ii) (whether the enjoyment condition was met at that time or at a later date). (5) In determining whether any of the enjoyment conditions are met in relation to a sum or part of a sum— (a) regard must be had to the substantial result and effect of all the relevant circumstances, and (b) all benefits which may at any time accrue to a person as a result of the sum arising as specified in subsection (1)(a) must be taken into account, irrespective of— (i) the nature or form of the benefits, or (ii) whether the person has legal or equitable rights in respect of the benefits. (6) The enjoyment condition in subsection (2)(b), (c) or (d) is to be treated as not met if it would be met only by reason of A or a person connected with A holding shares or an interest in shares in a company. (7) The enjoyment condition in subsection (2)(a) or (e) is to be treated as not met if the sum referred to in subsection (1)(a) arises to a company ... and— (a) the company is liable to pay corporation tax in respect of its profits and the sum is included in the computation of those profits, or (b) paragraph (a) does not apply but— (i) the company is a CFC and the exemption in Chapter 14 of Part 9A of TIOPA 2010 applies for the accounting period in which the sum arises, or (ii) the company is not a CFC but, if it were, that exemption would apply for that period. In this subsection “CFC” has the same meaning as in Part 9A of TIOPA 2010. (8) But subsections (6) and (7) do not apply if the sum referred to in subsection (1)(a) arises to the company referred to in subsection (1)(a)(i) or the person referred to in subsection (1)(a)(ii) as part of arrangements where— (a) it is reasonable to assume that in the absence of the arrangements the sum or part of the sum would have arisen to A or an individual connected with A, and (b) it is reasonable to assume that the arrangements have as their main purpose, or one of their main purposes, the avoidance of a liability to pay income tax, capital gains tax, inheritance tax or corporation tax. (9) The condition in subsection (8)(b) is to be regarded as met in a case where — (a) the sum arose from an investment scheme, (b) the sum is applied directly or indirectly as an investment in an investment scheme, and (c) the persons providing investment management services to the schemes mentioned in paragraphs (a) and (b) are the same or substantially the same. (10) Section 993 (meaning of “connected”) applies for the purposes of this section, but as if— (a) subsection (4) of that section were omitted, and (b) partners in a partnership in which A is also a partner were not “associates” of A for the purposes of sections 450 and 451 of CTA 2010 (“control”).

Propose a change

809EZE Interpretation of Chapter

(1) In this Chapter— “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable); “collective investment scheme” has the meaning given by section 235 of FISMA 2000; “external investor”, in relation to an investment scheme and any arrangements, means a participant in the scheme other than— an individual who at any time performs or is to perform investment management services directly or indirectly in respect of the scheme, or a person through whom sums are to, or may, arise directly or indirectly to such an individual from the scheme under the arrangements; “investment management services”, in relation to an investment scheme, includes— the provision of investment advice, seeking funds for the purposes of the scheme from participants or potential participants, researching potential investments to be made for the purposes of the scheme, acquiring, managing or disposing of property for the purposes of the scheme, ... acting for the purposes of the scheme with a view to assisting a body in which the scheme has made an investment to raise funds , and any activity incidental or ancillary to any activity mentioned in paragraphs (za) to (d); “investment trust” means a company in relation to which conditions A to C in section 1158 of CTA 2010 are met (or treated as met); and for this purpose “company” has the meaning given by section 1121 of CTA 2010; “market value” has the same meaning as in TCGA 1992 (see sections 272 and 273 of that Act); “participant”— in relation to a collective investment scheme, is construed in accordance with section 235 of FISMA 2000; in relation to an investment trust, means a member of the investment trust; “profits”, in relation to an investment made for the purposes of an investment scheme, means profits (including unrealised profits) arising from the acquisition, holding, management or disposal of the investment (taking into account items of a revenue nature and items of a capital nature). (2) In this Chapter a reference to an investment made by a person in an investment scheme is a reference to a contribution by the person (whether by way of capital, loan or otherwise) towards the property subject to the scheme (but does not include a sum committed but not yet invested). (3) For the purposes of subsection (2) a person who holds a direct or indirect interest in an investment scheme and who acquired the interest from a person other than the scheme is to be taken to have made a contribution towards the property subject to the scheme equal to— (a) the consideration given by the person for the acquisition of the interest, or (b) if less, the market value of the interest at the time of the acquisition. (4) In this Chapter, in relation to an investment scheme which is a company limited by shares— (a) references to a repayment of, or a return on, an investment in the scheme include a repayment of, or a return on, an investment represented by a share in the scheme resulting from— (i) the purchase of the share by the scheme, (ii) the redemption of the share by the scheme, (iii) the distribution of assets in respect of the share on the winding up of the scheme, or (iv) any similar process; (b) references to a return on an investment in the scheme include a dividend or similar distribution in respect of a share in the scheme representing the investment.

Propose a change

809EZF Disguised investment management fees: anti-avoidance

In determining whether section 809EZA applies in relation to an individual, no regard is to be had to any arrangements the main purpose, or one of the main purposes, of which is to secure that that section does not apply in relation to— (a) the individual, or (b) the individual and one or more other individuals.

Propose a change

809EZG Disguised investment management fees: avoidance of double taxation

(1) This section applies where— (a) income tax is charged on an individual by virtue of section 809EZA in respect of a disguised fee, and (b) at any time, a tax (whether income tax or another tax) is charged on the individual or another person otherwise than by virtue of section 809EZA in relation to the disguised fee. (2) This section also applies where— (a) income tax is charged on an individual by virtue of section 809EZA in respect of a disguised fee which arises to the individual under the arrangements by way of a loan or advance, (b) at any time, a tax (whether income tax or another tax) is charged on the individual in relation to another sum which arises to the individual under the arrangements, and (c) some or all of the loan or advance has to be repaid as a result of the other sum having arisen to the individual. (3) In order to avoid a double charge to tax, the individual may make a claim for one or more consequential adjustments to be made in respect of the tax charged as mentioned in subsection (1)(b) or (2)(b). (4) On a claim under this section an officer of Revenue and Customs must make such of the consequential adjustments claimed (if any) as are just and reasonable. (5) The value of any consequential adjustments must not exceed the lesser of the income tax charged on the individual as mentioned in subsection (1)(a) or (2)(a) and— (a) where subsection (1) applies, the tax charged as mentioned in subsection (1)(b); (b) where subsection (2) applies, the tax charged as mentioned in subsection (2)(b) in relation to so much of the other sum as does not exceed the amount of the loan or advance that has to be repaid as mentioned in subsection (2)(c). (6) Consequential adjustments may be made— (a) in respect of any period, (b) by way of an assessment, the modification of an assessment, the amendment of a claim, or otherwise, and (c) despite any time limit imposed by or under any enactment.

Propose a change

809EZH Powers to amend Chapter

(1) The Treasury may by regulations amend this Chapter— (a) so as to change the definition of “investment scheme” for the purposes of this Chapter; (b) so as to change the definition of “participant” for those purposes; (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Regulations under this section may— (a) make different provision for different purposes, and (b) contain incidental, supplemental, consequential and transitional provision and savings. (3) A statutory instrument containing regulations under this section to which subsection (4) applies may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons. (4) This subsection applies if the regulations contain any provision which has or may have the effect of increasing any person's liability to tax. (5) Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Propose a change

809ZA Plant and machinery leases: capital receipts to be treated as income

(1) This section applies if— (a) there is an unconditional obligation, under a lease of plant or machinery or a relevant arrangement, to make a relevant capital payment (at any time), or (b) a relevant capital payment is made under such a lease or arrangement otherwise than in pursuance of such an obligation. (2) The lessor is treated for income tax purposes as receiving income attributable to the lease of an amount equal to the amount of the capital payment. (3) If subsection (1)(a) applies, the income is treated as income for the period of account in which there is first an obligation of the kind mentioned there. (4) If subsection (1)(b) applies, the income is treated as income for the period of account in which the capital payment is made. (5) For the meaning of “capital payment” and “relevant capital payment”, see section 809ZE. (6) For the meaning of other expressions used in this section or section 809ZC, 809ZD or 809ZE, see section 809ZF.

Propose a change

809ZB Section 809ZA: interpretation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

809ZC Section 809ZA: lease of plant and machinery and other property

(1) This section applies if section 809ZA applies in relation to a lease of plant or machinery and other property (see section 809ZF(3)). (2) The relevant capital payment is to be apportioned, on a just and reasonable basis, between— (a) the plant and machinery, and (b) the other property. (3) If the income (if any) received by the lessor that is attributable to any of the plant or machinery is chargeable to tax under Part 3 of ITTOIA 2005 (property income), treat that plant or machinery as falling within subsection (2)(b) (and not subsection (2)(a)). (4) Section 809ZA(2) has effect as if the reference to the amount of the capital payment were to such amount as is apportioned under subsection (2) in respect of the plant or machinery within subsection (2)(a).

Propose a change

809ZD Section 809ZA: expectation that relevant capital payment will not be paid

(1) This section applies for income tax purposes if— (a) section 809ZA applies by virtue of subsection (1)(a) of that section, and (b) at any time, the lessor reasonably expects that the relevant capital payment will not be paid (or will not be paid in full). (2) For the purposes of calculating the profits of the lessor, a deduction is allowed for the period of account which includes that time. (3) The amount of the deduction is equal to the amount reasonably expected not to be paid. (4) No other deduction is allowed in respect of the matters mentioned in subsection (1).

Propose a change

809ZE Capital payment”, “relevant capital payment” etc

(1) This section gives the meaning of “capital payment”, “relevant capital payment” and references to payment for the purposes of sections 809ZA to 809ZD and this section. (2) “Capital payment” means any payment except one which, if made to the lessor— (a) would fall to be included in a calculation of the lessor's income for income tax purposes, or (b) would so fall but for section 148A of ITTOIA 2005 (rental earnings under long funding finance lease). (3) A capital payment, in relation to a lease or relevant arrangement, is “relevant” if condition A or B is met (but this is subject to subsections (6) and (7)). (4) Condition A is that the capital payment is payable (or paid), directly or indirectly, by or on behalf of the lessee to the lessor or another person on the lessor's behalf in connection with— (a) the grant, assignment, novation or termination of the lease, or (b) any provision of the lease or relevant arrangement (including the variation or waiver of any such provision). (5) Condition B is that rentals payable under the lease are less than, or payable later than, they might reasonably be expected to be if there were no obligation to make the capital payment and it were not made. (6) A capital payment is not “relevant” so far as it— (a) reduces the amount of expenditure incurred by the lessor for the purposes of CAA 2001 in respect of the plant or machinery in question or would reduce it but for section 536 of that Act (contributions not made by public bodies and not eligible for tax relief), or (b) is compensation for loss resulting from damage to, or damage caused by, the plant or machinery in question. (7) If— (a) a capital payment is an initial payment under a long funding lease for the purposes of Part 2 of CAA 2001 (see section 70YI of that Act), and (b) under section 61 of that Act (disposal events and disposal values) the commencement of the term of the lease (as defined in section 70YI of that Act) is an event that requires the lessor to bring a disposal value into account, the capital payment is only “relevant” so far as it exceeds the amount that is the disposal value for the purposes of Part 2 of that Act. (8) References to payment include the provision of value by any means other than the making of a payment. (9) Accordingly— (a) references to the making of a payment include the passing of value by any other means, and (b) references to the amount of the payment include the value passed.

Propose a change

809ZF Further interpretation of section 809ZA etc

(1) This section applies for the purposes of sections 809ZA to 809ZE and this section. (2) “Lease” includes— (a) a licence, and (b) the letting of a ship or aircraft on charter or the letting of any other asset on hire, and “lessor” and “lessee” must be read accordingly. (3) “Lease of plant or machinery” includes a lease of plant or machinery and other property, but does not include a lease to which subsection (4) or (5) applies. (4) This subsection applies to a lease if any income attributable to it and received by the lessor would be chargeable to tax under Part 3 of ITTOIA 2005 (property income). (5) This subsection applies to a lease of plant or machinery if the lessor has incurred on the plant or machinery what would be qualifying expenditure within the meaning of Part 2 of CAA 2001 but for section 34A of that Act (expenditure on plant or machinery for long funding leasing not qualifying expenditure). (6) “Relevant arrangement” means any agreement or arrangement relating to a lease of plant or machinery, including one made before the lease is entered into or after it has ended. (7) Accordingly, “lessor” and “lessee” include prospective and former lessors and lessees.

Propose a change

809ZFA Consideration for taking over payment obligations as lessee treated as income

(1) This section applies where under any arrangements— (a) a person within the charge to income tax (P) agrees to take over obligations of another person (Q) as lessee under a lease of plant or machinery, (b) as a result of that agreement P, or a person connected with P, becomes entitled to income deductions (whether deductions in calculating income or from total profits), and (c) a payment is payable to P, or a person connected with P, by way of consideration for that agreement. (2) The payment is treated for the purposes of income tax as income received by P in the tax year in which P takes over the obligations mentioned in subsection (1)(a). (3) Subsection (2) does not apply if and to the extent that the consideration is (apart from this section)— (a) charged to tax on P, or a person connected with P, as an amount of income, (b) brought into account in calculating for tax purposes any income of P or a person connected with P, or (c) brought into account for the purposes of any provision of CAA 2001 as a disposal receipt, or proceeds from a balancing event or disposal event, of P or a person connected with P. (4) It does not matter how P takes over the obligations of Q (whether by assignment, novation, variation or replacement of the contract, by operation of law or otherwise). (5) In this section— “arrangements” include any scheme, arrangement, understanding, transaction or series of transactions (whether or not legally enforceable); “lease of plant or machinery” means any kind of agreement or arrangement under which sums are paid for the use of, or otherwise in respect of, plant or machinery; “payment” includes the provision of any benefit, the assumption of any liability or the transfer of money or money's worth (and “payable” is to be construed accordingly),; “payment by way of consideration” includes a payment made, directly or indirectly, in consequence of or otherwise in connection with, the agreement mentioned in subsection (1)(a), where it is reasonable to assume the agreement would not have been made unless the arrangements included provision for the payment. (6) Any priority rule (other than section 212(1) of FA 2013 (general anti-abuse rule to have priority over other rules)) has effect subject to this section, despite the terms of the priority rule. (7) For that purpose “priority rule” is a rule (however expressed) to the effect that particular provisions have effect to the exclusion of, or otherwise in priority to, anything else. (8) An example of a priority rule is section 6(1) of TIOPA 2010 (effect to be given to double taxation arrangements despite anything in any enactment).

Propose a change

809ZG Tax relief schemes and arrangements

(1) Relief is not to be given under any provision of the Income Tax Acts to a person in respect of a payment of interest if a tax relief scheme has been effected, or tax relief arrangements have been made, in relation to the transaction under which the interest is paid. (2) Subsection (1) applies whether the tax relief scheme is effected, or the tax relief arrangements are made, before or after the transaction. (3) A scheme is a tax relief scheme in relation to a transaction for the purposes of subsection (1) if it is such that the sole or main benefit that might be expected to accrue to the person from the transaction is the obtaining of a reduction in tax liability by means of relief under the Income Tax Acts. (4) Arrangements are tax relief arrangements in relation to a transaction for the purposes of subsection (1) if they are such that the sole or main benefit that might be expected to accrue to the person from the transaction is the obtaining of a reduction in tax liability by means of relief under the Income Tax Acts. (5) In this section “relief” means relief by way of— (a) deduction in calculating profits or gains, or (b) deduction or set off against income.

Propose a change

809ZH Overview of Chapter

(1) This Chapter makes provision for removing entitlement to income tax reliefs, and counteracting income tax advantages, where a person makes a relievable charity donation which is a tainted donation. (2) See sections 257A and 257B of TCGA 1992 and Part 21C of CTA 2010 for the removal of entitlement to other reliefs where a person makes a relievable charity donation which is a tainted donation.

Propose a change

809ZI Relievable charity donations

(1) In this Chapter “relievable charity donation” means a gift or other disposal which— (a) is made by a person to a charity, and (b) is eligible for tax relief. (2) A gift or other disposal is eligible for tax relief if one or both of the following apply— (a) (ignoring the tainted donation provisions) tax relief would be available in respect of it under a relevant relieving provision; (b) the charity is entitled to claim a repayment of tax in respect of it. (3) “The tainted donation provisions” are— (a) this Chapter, (b) sections 257A and 257B of TCGA 1992 (tainted charity donations: disapplication of section 257), and (c) Part 21C of CTA 2010 (tainted charity donations: removal of corporation tax reliefs). (4) The following are “relevant relieving provisions”— (a) section 257 of TCGA 1992 (gifts of chargeable assets), (b) section 63(2)(a), (aa) and (ab) of CAA 2001 (gifts of plant and machinery), (c) Part 12 of ITEPA 2003 (payroll giving), (d) section 108 of ITTOIA 2005 (gifts of trading stock), (e) Chapters 2 and 3 of Part 8 of this Act (gift aid and gifts of shares), (f) section 105 of CTA 2009 (gifts of trading stock), and (g) Part 6 of CTA 2010 (charitable donations relief). (5) For the purposes of this Chapter, an amount of income which arises under a UK settlement and to which a charity is entitled under the terms of the settlement is to be regarded as an amount gifted to the charity by the trustees of the settlement. “UK settlement” has the same meaning as in section 628 of ITTOIA 2005.

Propose a change

809ZJ Tainted donations

(1) For the purposes of this Chapter, a relievable charity donation (a) is a tainted donation if (and only if) Conditions A, B and C are met , and (b) becomes a tainted donation at the earliest time when all those conditions are met. (2) Condition A is that— (a) a linked person enters into arrangements (whether before or after the donation is made), and (b) it is reasonable to assume from either or both of— (i) the likely effects of the donation and the arrangements as at the later of the time when the donation is made and the time when the arrangements are entered into, and (ii) the circumstances in which the donation is made and the circumstances in which the arrangements are entered into, that the donation would not have been made and the arrangements would not have been entered into independently of one another. (3) “Linked person” means— (a) the person who made the donation (“the donor”), or (b) a person connected with the donor at a relevant time. (4) In subsection (3) “relevant time” means any time after the earliest of the following times— (a) the time when the arrangements are entered into as mentioned in subsection (2); (b) the time when the relievable charity donation is made; (c) the time when the arrangements are first materially implemented. (5) Condition B is that a linked person who is not a charity receives financial assistance— (a) under or in connection with the arrangements, and (b) directly or indirectly from the charity to which the donation is made or from a connected charity. (6) Condition C is that the donor is not— (a) a qualifying charity-owned company, or (b) a relevant housing provider linked with the charity to which the donation is made. (7) For the purposes of subsection (6)(b) a relevant housing provider is linked with the charity if (and only if)— (a) one is wholly owned, or subject to control, by the other, or (b) both are wholly owned, or subject to control, by the same person. (8) In this section— “financial assistance” includes a loan, a guarantee, an indemnity or any form of investment (in each case, whether or not on arm’s length terms); “qualifying charity-owned company”, in relation to a relievable charity donation, means a company which— is wholly owned by one or more charities, at least one of which is the charity to which the donation is made or a connected charity, and has not previously been under the control of, and does not carry on a trade or business previously carried on by, one or more of the following— a linked person; a person (other than a charity) who, at any time within the period of 4 years ending with the day on which paragraph (a) was first satisfied, was connected with a person who is a linked person; “relevant housing provider” means a body which is— a non-profit registered provider of social housing, or entered on a register maintained under section 1 of the Housing Act 1996, section 20 of the Housing (Scotland) Act 2010 (asp 17) or Article 14 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)). (9) Section 200 of CTA 2010 (company wholly owned by a charity) applies for the purposes of subsection (8), and for those purposes references in that section to “charity” include a registered club within the meaning of section 658(6) of that Act. (10) This section is subject to section 809ZL (certain financial assistance to be ignored).

Propose a change

809ZK Circumstances in which financial advantage deemed to be obtained

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

809ZL Certain financial assistance to be ignored

(1) When determining whether a relievable charity donation is a tainted donation, financial assistance within subsection (2A), (3), (4) or (5) is to be ignored. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2A) Financial assistance is within this subsection if it constitutes a payment made by a charity, on arm’s length terms, in respect of— (a) work carried out by a person for or on behalf of the charity, or (b) expenses incurred by a person in the course of such work. (3) Financial assistance is within this subsection if (ignoring the tainted donation provisions) it is— (a) a benefit associated with a gift which is a qualifying donation for the purposes of Chapter 2 of Part 8 (gift aid), or (b) a benefit associated with a payment which is a qualifying payment for the purposes of Chapter 2 of Part 6 of CTA 2010 (charitable donations relief: payments to charity). (4) Financial assistance is within this subsection if (ignoring the tainted donation provisions)— (a) the relievable charity donation is a disposal in respect of which tax relief would be available under Chapter 3 of Part 8 of this Act (gifts of shares, securities and real property to charities etc) or Chapter 3 of Part 6 of CTA 2010 (charitable donations: certain disposals to charity), and (b) the assistance is a benefit the value of which would be taken into account in determining the relievable amount in respect of the disposal for the purposes of the Chapter in question. (5) Financial assistance is within this subsection if (ignoring the tainted donation provisions)— (a) the relievable charity donation is a gift in respect of which tax relief would be available under section 108 of ITTOIA 2005 or section 105 of CTA 2009 (gifts of trading stock to charities etc), and (b) the assistance is a benefit attributable to the making of the gift in respect of which an amount would be brought into account under section 109 of ITTOIA 2005 or section 108 of CTA 2009 (receipt of benefits by donor or connected person). (6) In this section— “benefit associated with a gift” has the meaning given by section 417; “benefit associated with a payment” has the meaning given by section 196 of CTA 2010; “financial assistance” has the same meaning as in section 809ZJ; “the tainted donation provisions” has the meaning given by section 809ZI(3).

Propose a change

809ZM Removal of income tax relief where donation becomes tainted in same tax year

(1) This section applies where— (a) a person makes a relievable charity donation, and (b) the donation becomes a tainted donation in the same tax year in which it is made. (2) Where (ignoring this Chapter) income tax relief would be available in respect of the tainted donation, that relief is not available. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) In this section— ... “income tax relief” means relief under— section 63(2)(a), (aa) or (ab) of CAA 2001 (gifts of plant and machinery), so far as it applies in relation to income tax, Part 12 of ITEPA 2003 (payroll giving), section 108 of ITTOIA 2005 (gifts of trading stock), Chapter 2 of Part 8 of this Act (gift aid), or Chapter 3 of that Part (gifts of shares etc); ... ... ... (5) Where entitlement to relief is withdrawn under this section in respect of a donation— (a) subsections (6) and (7) apply if the relief is under Chapter 2 of Part 8 (gift aid), and (b) subsection (8) applies if the relief is under Part 12 of ITEPA 2003 (payroll giving). (6) For the purposes of Step 2 in section 58(1), the donation is not a qualifying donation for the purposes of Chapter 2 of Part 8. (7) But— (a) the donation remains a qualifying donation for the purposes of— (i) Part 10 (special rules about charitable trusts etc), (ii) section 899(5) (meaning of “qualifying annual payment”), (iii) Chapter 2 of Part 11 of CTA 2010 (charitable companies: gifts and other payments), (iv) section 664 of that Act (community amateur sports clubs: exemption for interest and gift aid income), and (b) accordingly, section 414(2)(a) (donation treated as made after deduction of basic rate income tax) applies for the purposes of section 520(4) (income tax treated as deducted to be treated as income tax paid by charitable trust). (8) The donation remains a donation for the purposes of Part 12 of ITEPA 2003 for the purposes of— (a) section 521A (gifts under payroll deduction scheme: income tax liability and exemption), and (b) section 472A of CTA 2010 (gifts under payroll reduction scheme: corporation tax liability and exemption).

Propose a change

809ZMA Clawback of income tax relief where donation becomes tainted in later tax year

(1) This section applies where— (a) a person makes a relievable charity donation in a tax year (“the donation year”), (b) the donation becomes a tainted donation in a later tax year (“the tainting year”), and (c) if the donation had become a tainted donation in the donation year, the person’s liability to income tax for the donation year would have been greater than it in fact was for that year. (2) Income tax is charged under this section, for the tainting year, of an amount equal to the difference between— (a) the amount of income tax for which the person who made the donation would have been liable for the donation year had the donation become a tainted donation in that year, and (b) the amount of income tax for which that person was in fact liable for the donation year. (3) The person liable for tax charged under this section is the person who made the donation. (4) Section 101 of FA 2009 (late payment interest) has effect in relation to tax charged under this section as though the tax had become due and payable on 1 February in the tax year following the donation year.

Propose a change

809ZMB Removal or clawback of income tax relief for associated donations

(1) This section applies where— (a) a person makes a relievable charity donation that becomes a tainted donation, and (b) a person makes an associated donation in relation to the tainted donation. (2) If the donation mentioned in subsection (1)(a) becomes a tainted donation before the end of the tax year in which the associated donation is made, any income tax relief that would otherwise be available in respect of the associated donation is not available. (3) Section 809ZM(5) to (8) (treatment of donation where entitlement to relief is withdrawn) applies to the withdrawal of relief under subsection (2) as it applies to the withdrawal of relief under that section. (4) Subsection (5) applies where— (a) the donation mentioned in subsection (1)(a) becomes a tainted donation after the end of the tax year in which the associated donation is made, and (b) if the donation mentioned in subsection (1)(a) had become a tainted donation before the end of that tax year, the liability to income tax for that tax year of the person who made the associated donation would have been greater than it in fact was for that tax year. (5) Income tax is charged under this section, for the tax year in which the donation mentioned in subsection (1)(a) becomes a tainted donation, of an amount equal to the difference between— (a) the amount of income tax for which the person who made the associated donation would have been liable for the tax year in which the associated donation was made had the tainted donation become a tainted donation before the end of that tax year, and (b) the amount of income tax for which that person was in fact liable for the tax year in which the associated donation was made. (6) The person liable for tax charged under subsection (5) is the person who made the associated donation. (7) Subsection (5) does not apply in relation to an associated donation if the person who would be liable for tax charged under that subsection— (a) is already liable for tax charged under that subsection by reference to the tax year in which the associated donation was made, or (b) is liable for tax charged under section 809ZMA(2) by reference to that tax year, and for that purpose the tax year “by reference to which” tax is charged is the earlier tax year for which the person’s liability falls to be considered under (as the case may be) subsection (5)(a) and (b) or section 809ZMA(2)(a) and (b). (8) Section 101 of FA 2009 (late payment interest) has effect in relation to tax charged under subsection (5) as though the tax had become due and payable on 1 February in the tax year following the one in which the associated donation was made. (9) In this section— “associated donation”, in relation to a tainted donation, means a relievable charity donation made— in accordance with the arrangements by reference to which Conditions A and B in section 809ZJ are met, and by a person other than— a qualifying charity-owned company in relation to that relievable charity donation, or a relevant housing provider linked (within the meaning of section 809ZJ(7)) with the charity to which that donation is made; “income tax relief” has the same meaning as in section 809ZM; “qualifying charity-owned company” has the meaning given by section 809ZJ(8) (except that paragraph (b) of that definition does not apply); “relevant housing provider” has the meaning given by section 809ZJ(8).

Propose a change

809ZN Income tax charge where gift aid is withdrawn

(1) Income tax is charged under this section if— (a) a person makes a relievable charity donation in a tax year, (aa) the donation becomes a tainted donation (whether in that tax year or a later tax year), (b) (ignoring this Chapter) relief would have been available under Chapter 2 of Part 8 in respect of the tainted donation or an associated donation (“the gift aid donation”), and (c) the charity to which the gift aid donation is made is entitled to claim a repayment of tax in respect of that donation. (2) The amount of the tax charged under this section is equal to the amount of the repayment of tax which the charity is entitled to claim in respect of the gift aid donation (whether or not such a claim is made). (2A) Tax charged under this section is charged for the tax year in which the donation mentioned in subsection (1)(a) becomes a tainted donation. (3) Each of the persons mentioned in subsection (4) is liable for any tax charged under this section, and the liability of those persons is joint and several. (4) The persons are— (a) the donor in respect of the gift aid donation, (b) if different, the donor in respect of the tainted donation, (c) each linked person (as defined in section 809ZJ(3)) by reference to whom Condition B in section 809ZJ(5) is met in relation to the tainted donation, (d) any charity to which the gift aid donation or (if different) the tainted donation is made, or any connected charity, which falls within subsection (5). (5) A charity falls within this subsection if the charity— (a) is or was party to the arrangements by reference to which Conditions A and B in section 809ZJ are met in relation to the tainted donation, and (b) was aware or ought reasonably to have been aware, at the time it entered into those arrangements, that Condition B in section 809ZJ was or would be met by reference to the arrangements. (6) No liability to income tax arises under this section in respect of a repayment of tax, if (and to the extent that) the repayment is itself repaid to the Commissioners for Her Majesty's Revenue and Customs under any other provision of the Tax Acts. (7) In this section— “associated donation” has the same meaning as in section 809ZMB; “linked person” has the same meaning as in section 809ZJ; ...

Propose a change

809ZO Income tax charge where payment of trust income to charity

(1) Income tax is charged under this section if— (a) a person makes a relievable charity donation in a tax year, (aa) the donation becomes a tainted donation (whether in that tax year or a later tax year), (b) the tainted donation or an associated donation is a payment by the trustees of a settlement of income arising under the settlement (“the trust donation”), and (c) the charity to which the trust donation is made is entitled to claim a repayment of tax in respect of that donation. (2) The amount of the tax charged under this section is equal to the amount of the repayment of tax which the charity is entitled to claim in respect of the trust donation (whether or not such a claim is made). (2A) Tax charged under this section is charged for the tax year in which the donation mentioned in subsection (1)(a) becomes a tainted donation. (3) Each of the persons mentioned in subsection (4) is liable for any tax charged under this section, and the liability of those persons is joint and several. (4) The persons are— (a) the trustees of the settlement who made the trust donation, (b) if different, the donor in respect of the tainted donation, (c) if section 628 or 630 of ITTOIA 2005 (gifts from settlor-interested trusts etc) applies in relation to the income out of which the trust donation is made, the settlor in relation to the settlement, (d) each linked person (as defined in section 809ZJ(3)) by reference to whom Condition B in section 809ZJ(5) is met in relation to the tainted donation, (e) any beneficiary of the settlement who is party to those arrangements, and (f) any charity to which the trust donation or (if different) the tainted donation is made, or any connected charity, which falls within subsection (5). (5) A charity falls within this subsection if— (a) the charity is or was party to the arrangements by reference to which Conditions A and B in section 809ZJ are met in relation to the tainted donation, and (b) the charity was aware or ought reasonably to have been aware, at the time it entered into those arrangements, that Condition B in section 809ZJ was or would be met by reference to the arrangements. (6) No liability to income tax arises under this section in respect of a repayment of tax if that repayment is itself repaid to the Commissioners for Her Majesty's Revenue and Customs under any other provision of the Tax Acts. (7) In this section— “associated donation” has the same meaning as in section 809ZMB; “linked person” has the same meaning as in section 809ZJ; ... “settlement” and “settlor” have the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act).

Propose a change

809ZP Connected charities

For the purposes of this Chapter, a “connected charity” in relation to another charity means a charity which is connected with that other charity in a matter relating to the structure, administration or control of either charity.

Propose a change

809ZQ Connected persons

(1) Section 993 (meaning of “connected” persons) applies for the purposes of this Chapter— (a) subject to section 809ZP, and (b) as if, after subsection (7) there were inserted the provision in subsection (2). (2) That provision is— (8) A person who is a beneficiary of a settlement is connected with— (a) a person in the capacity as trustee of the settlement, and (b) the settlor in relation to the settlement. (9) For the purposes of this section— (a) two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other, and (c) “close company” includes a company that would be a close company if it were resident in the United Kingdom.

Propose a change

809ZR Minor definitions

(1) In this Chapter— “arrangements” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions; “charity” includes a registered club within the meaning of section 658(6) of CTA 2010 (meaning of “community amateur sports club” and “registered club”). (2) In this Chapter, in the case of a charitable trust, references to a charity being entitled to a repayment of, or liable to pay, tax are to be read as references to the trustees of the trust being so entitled or liable.

Propose a change

809A Overview of Chapter

This Chapter provides for an alternative basis of charge in the case of individuals who were not domiciled in the United Kingdom in tax years before tax year 2025-26 ....

Propose a change

809B Claim for remittance basis to apply

(1) This section applies to an individual for a tax year if ...— (za) the tax year is the tax year 2024-25 or an earlier tax year, (a) the individual is UK resident for that year , (b) the individual is not domiciled in the United Kingdom in that year ..., and (c) the individual makes a claim under this section for that year. (1A) Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b). (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Sections 42 and 43 of TMA 1970 (procedure and time limit for making claims), except section 42(1A) of that Act, apply in relation to a claim under this section as they apply in relation to a claim for relief.

Propose a change

809C Claim for remittance basis by long-term UK resident: nomination of foreign income and gains to which section 809H(2) is to apply

(1) This section applies to an individual for a tax year if ...— (za) the tax year is the tax year 2024-25 or an earlier tax year, (a) the individual is aged 18 or over in that year, and (b) the individual meets ... the 12-year residence test or the 7-year residence test for that year. (1ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1A) An individual meets the 12-year residence test for a tax year if the individual— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) has been UK resident in at least 12 of the 14 tax years immediately preceding that year. (1B) An individual meets the 7-year residence test for a tax year if the individual— (a) does not meet ... the 12-year residence test for that year, but (b) has been UK resident in at least 7 of the 9 tax years immediately preceding that year. (2) A claim under section 809B by the individual for that year must contain a nomination of the income or chargeable gains of the individual for that year to which section 809H(2) is to apply. (3) The income or chargeable gains nominated must be part (or all) of the individual's foreign income and gains for that year. (4) The income and chargeable gains nominated must be such that the relevant tax increase does not exceed — (za) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (a) for an individual who meets the 12-year residence test for that year, £60,000; (b) for an individual who meets the 7-year residence test for that year, £30,000. (5) “The relevant tax increase” is— (a) the total amount of income tax and capital gains tax payable by the individual for that year, minus (b) the total amount of income tax and capital gains tax that would be payable by the individual for that year apart from section 809H(2). (5A) The references to income tax in subsection (5) do not include income tax under section 424 (gift aid). (6) See section 809Z7 for the meaning of an individual's foreign income and gains for a tax year.

Propose a change

809D Application of remittance basis without claim where unremitted foreign income and gains under £2,000

(1) This section applies to an individual for a tax year if— (za) the tax year is the tax year 2024-25 or an earlier tax year, (a) the individual is UK resident for that year , (b) the individual is not domiciled in the United Kingdom in that year ..., and (c) the amount of the individual's unremitted foreign income and gains for that year is less than £2,000. unless condition A or condition B is met. (1A) Condition A is that ... conditions A to F in section 828B are met. (1B) Condition B is that the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year. (2) The amount of an individual's “unremitted” foreign income and gains for a tax year is— (a) the total amount of what would (if this section applied) be the individual's foreign income and gains for that year, minus (b) the total amount of those income and gains that are remitted to the United Kingdom in that year.

Propose a change

809E Application of remittance basis without claim: other cases

(1) This section applies to an individual for a tax year if— (za) the tax year is the tax year 2024-25 or an earlier tax year, (a) the individual is UK resident for that year, (b) the individual is not domiciled in the United Kingdom in that year ..., (c) for that year the individual either has no UK income or gains or has no UK income and gains other than taxed investment income not exceeding £100. (d) no relevant income or gains are remitted to the United Kingdom in that year, and (e) either— (i) the individual has been UK resident in not more than 6 of the 9 tax years immediately preceding that year, or (ii) the individual is under 18 throughout that year unless the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year. (1A) Section 835BA (deemed domicile) applies for the purposes of subsection (1)(b). (2) For the purposes of subsection (1)(c) the individual's UK income and gains for the tax year are the individual's income and chargeable gains for that year other than what would (if this section applied) be the individual's foreign income and gains for that year. (2A) For the purposes of subsection (1)(c) “taxed investment income” means UK income or gains consisting of payments within section 946 from which a sum representing income tax has been deducted. (3) For the purposes of subsection (1)(d) relevant income and gains are— (a) what would (if this section applied) be the individual's foreign income and gains for the tax year mentioned in subsection (1), and (b) the individual's foreign income and gains for every other tax year for which section 809B or 809D or this section applies to the individual.

Propose a change

809F Effect on what is chargeable

(1) This section applies if section 809B, 809D or 809E applies to an individual for a tax year. (2) The individual's relevant foreign earnings for that year are charged in accordance with section 22 or 26 of ITEPA 2003. (3) The individual's relevant foreign income for that year is charged in accordance with section 832 of ITTOIA 2005. (4) The individual's foreign chargeable gains for that year are charged in accordance with paragraph 1 of Schedule 1 to TCGA 1992. (5) For the effect on amounts which count as employment income of the individual under certain provisions of Part 7 of ITEPA 2003 (employment-related securities), see Chapter 5A of Part 2 of that Act. (5A) For the effect on amounts which count as employment income under Chapter 2 of Part 7A of ITEPA 2003, see sections 554Z9 to 554Z11 of that Act. (6) Nothing in this section applies in relation to nominated income or chargeable gains (see section 809H).

Propose a change

809G Claim for remittance basis: effect on allowances etc

(1) This section applies if section 809B (claim for remittance basis to apply) applies to an individual for a tax year. (2) For that year, the individual is not entitled to— (a) any allowance under Chapter 2 of Part 3 (personal allowance and blind person's allowance), (b) any tax reduction under Chapter 3 of that Part (tax reductions for married couples and civil partners), ... (ba) any tax reduction under Chapter 3A of that Part (transferable tax allowance for married couples and civil partners), or (c) any relief under section 457 or 458 (payments for life insurance etc). (3) See also section 1K(6) of TCGA 1992 (no annual exempt amount for chargeable gains).

Propose a change

809H Claim for remittance basis by long-term UK resident: charge

(1) This section applies if— (a) section 809B (claim for remittance basis to apply) applies to an individual for a tax year (“the relevant tax year”), (b) the individual is aged 18 or over in the relevant tax year, and (c) the individual meets ... the 12-year residence test or the 7-year residence test for the relevant tax year. (1A) See section 809C..., (1A) and (1B) for when an individual meets ... the 12-year residence test or the 7-year residence test for a tax year. (2) Income tax is charged on nominated income, and capital gains tax is charged on nominated chargeable gains, as if section 809B did not apply to the individual for the relevant tax year (and neither did section 809D). (3) “Nominated” income or chargeable gains means income or chargeable gains nominated under section 809C in the individual's claim under section 809B for the relevant tax year. (3A) If the individual is a Scottish taxpayer for the relevant tax year, the individual is to be treated for the purpose of calculating income tax charged by virtue of subsection (2) as if the individual were not a Scottish taxpayer for that year. (3B) If the individual is a Welsh taxpayer for the relevant tax year, the individual is to be treated for the purpose of calculating income tax charged by virtue of subsection (2) as if the individual were not a Welsh taxpayer for that year. (4) If the relevant tax increase would otherwise be less than the applicable amount, subsection (2) has effect as if— (a) in addition to the income and gains actually nominated under section 809C in the individual's claim under section 809B for the relevant tax year, an amount of income had been nominated so as to make the relevant tax increase equal to the applicable amount, and (b) the individual's income for that year were such that such a nomination could have been made (if that is not the case). (5) “The relevant tax increase” is— (a) the total amount of income tax and capital gains tax payable by the individual for the relevant tax year, minus (b) the total amount of income tax and capital gains tax that would be payable by the individual for the relevant tax year apart from subsection (2). (5A) The references to income tax in subsection (5) do not include income tax under section 424 (gift aid). (5B) The applicable amount” is— (za) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (a) if the individual meets the 12-year residence test for the relevant tax year, £60,000; (b) if the individual meets the 7-year residence test for the relevant tax year, £30,000. (6) Nothing in subsection (4) affects what is regarded, for the purposes of section 809I or 809J, as nominated under section 809C.

Propose a change

809I Remittance basis charge: income and gains treated as remitted

(1) This section applies if— (a) any of an individual's nominated income and gains is remitted to the United Kingdom in a tax year, ... (b) any of the individual's remittance basis income and gains has not been remitted to the United Kingdom in or before that year, and (c) the £10 test is met for that year. (2) Income tax and capital gains tax are charged, for that year and subsequent tax years, as if the income and chargeable gains treated under section 809J as remitted to the United Kingdom by the individual in that tax year had been so remitted (and income and chargeable gains of the individual that were actually remitted in that year had not been). (3) An individual's “nominated income and gains” are the total income and chargeable gains nominated by the individual under section 809C for the tax year mentioned in subsection (1)(a) or any earlier tax year (each such year for which the individual has made a nomination under that section being referred to as a “nomination year”). (4) An individual's “remittance basis income and gains” are the foreign income and gains of the individual for all the tax years (up to and including the tax year mentioned in subsection (1)(a)) for which section 809B, 809D or 809E applies to the individual, apart from the individual's nominated income and gains. (5) The £10 test is met for the tax year mentioned in subsection (1)(a) (“year X”) if, taking each nomination year separately, the cumulative total as respects at least one nomination year exceeds £10. (6) In relation to a nomination year— (a) “the cumulative total” means the sum, for all the tax years in aggregate up to and including year X, of the amounts of relevant income and gains remitted to the United Kingdom in those tax years from that nomination year, and (b) “relevant income and gains” means the income and chargeable gains nominated by the individual under section 809C for that nomination year.

Propose a change

809J Section 809I: order of remittances

(1) If section 809I applies, the following steps are to be taken for the purpose of determining the income or gains treated in a tax year (“the relevant tax year”) as remitted to the United Kingdom by the individual. Step 1 Find the total amount of— (a) the individual's nominated income and gains, and (b) the individual's remittance basis income and gains, that have been remitted to the United Kingdom in the relevant tax year. This amount is “the relevant amount”. Step 2 Find the amount of foreign income and gains of the individual for the relevant tax year (other than income or chargeable gains nominated under section 809C) that is within each of the categories of income and gains in paragraphs (a) to (h) of subsection (2). If none of sections 809B, 809D and 809E apply to the individual for that year, treat those amounts as nil (and accordingly go to step 6). Step 3 Find the earliest paragraph for which the amount determined under step 2 is not nil. If that amount does not exceed the relevant amount, treat the individual as having remitted the income or gains within that paragraph (and for that tax year). Otherwise, treat the individual as having remitted the relevant proportion of each kind of income or gains within that paragraph (and for that tax year). “The relevant proportion” is the relevant amount divided by the amount determined under step 2 for that paragraph. Step 4 Reduce the relevant amount by the amount taken into account under step 3. Step 5 If the relevant amount (as reduced under step 4) is not nil, start again at step 3. In step 3, read the reference to the earliest paragraph of the kind mentioned there as a reference to the earliest such paragraph which has not previously been taken into account under that step. Step 6 If the relevant amount (as reduced) is not nil once steps 3 to 5 have been undertaken in relation to all paragraphs of subsection (2) for which the amount determined under step 2 is not nil, start again at step 2. In step 2, read the reference to the foreign income and gains of the individual for the relevant tax year as a reference to such of the foreign income and gains of the individual for the appropriate tax year as had not been remitted by the beginning of the relevant tax year. “The appropriate tax year” is the latest tax year which is— (a) before the last tax year for which step 2 has been undertaken, and (b) a tax year for which section 809B, 809D or 809E applies to the individual. (2) The kinds of income and gains are— (a) relevant foreign earnings (other than those subject to a foreign tax), (b) foreign specific employment income (other than income subject to a foreign tax), (c) relevant foreign income (other than income subject to a foreign tax), (d) foreign chargeable gains (other than gains subject to a foreign tax), (e) relevant foreign earnings subject to a foreign tax, (f) foreign specific employment income subject to a foreign tax, (g) relevant foreign income subject to a foreign tax, and (h) foreign chargeable gains subject to a foreign tax. (3) In this section the individual's “nominated income and gains” are the total income and chargeable gains nominated by the individual under section 809C for the relevant tax year or any earlier tax year. (4) In step 1 of subsection (1) the individual's “remittance basis income and gains” are the foreign income and gains of the individual for all the tax years (up to and including the relevant tax year) for which section 809B, 809D or 809E applies to the individual, apart from the individual's nominated income and gains. (5) In step 6 of subsection (1) the reference to income or gains being remitted is— (a) as respects any tax year before section 809I applies, to income or gains being remitted to the United Kingdom, and (b) as respects any tax year in relation to which that section applies, to income or gains treated under this section as so remitted. (6) In subsection (2) “foreign tax” means any tax chargeable under the law of a territory outside the United Kingdom.

Propose a change

809K Sections 809L to 809Z6: introduction

(1) Sections 809L to 809Z6 apply for the purposes of— (a) this Chapter, (b) sections 22 and 26 of ITEPA 2003 (relevant foreign earnings charged on remittance basis), (c) Chapter 5B of Part 2 of that Act (taxable specific income from employment-related securities etc: internationally mobile employees), (ca) sections 554Z9 to 554Z11 of that Act (employment income provided through third parties charged on remittance basis), (d) section 832 of ITTOIA 2005 (relevant foreign income charged on remittance basis), and (e) Schedule 1 to TCGA 1992 (UK resident individuals not domiciled in UK). (2) Those sections— (a) explain what is meant by income or chargeable gains being “remitted to the United Kingdom” (sections 809L to 809O), (b) provide for the calculation of the amount remitted (section 809P), (c) contain rules for attributing transfers from mixed funds to particular kinds of income and capital (sections 809Q to 809S), (d) contain supplementary provision for certain cases (sections 809T and 809U), and (e) treat income or chargeable gains as not remitted to the United Kingdom in certain cases (sections 809UA to 809Z6).

Propose a change

809L Meaning of “remitted to the United Kingdom”

(1) An individual's income is, or chargeable gains are, “remitted to the United Kingdom” if— (a) conditions A and B are met, (b) condition C is met, or (c) condition D is met. (2) Condition A is that— (a) money or other property is brought to, or received or used in, the United Kingdom by or for the benefit of a relevant person, ... (b) a service is provided in the United Kingdom to or for the benefit of a relevant person , or (c) money or other property is used outside the United Kingdom (directly or indirectly) for the benefit in the United Kingdom of a relevant person, (3) Condition B is that— (a) the property, service or consideration for the service is (wholly or in part) the income or chargeable gains, (b) the property, service or consideration— (i) derives (wholly or in part, and directly or indirectly) from the income or chargeable gains, and (ii) in the case of property or consideration, is property of or consideration given by a relevant person, (c) the income or chargeable gains are used outside the United Kingdom (directly or indirectly) in respect of a relevant debt, or (d) anything deriving (wholly or in part, and directly or indirectly) from the income or chargeable gains is used as mentioned in paragraph (c). (4) Condition C is that qualifying property of a gift recipient— (a) is brought to, or received or used in, the United Kingdom, and either— (i) the property is enjoyed by a relevant person, or (ii) as a result, a benefit is enjoyed by a relevant person, (b) is consideration for a service that is enjoyed in the United Kingdom by a relevant person, (ba) is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person, or (c) is used outside the United Kingdom (directly or indirectly) in respect of a relevant debt. (5) Condition D is that property of a person other than a relevant person (apart from qualifying property of a gift recipient)— (a) is brought to, or received or used in, the United Kingdom, and either— (i) the property is enjoyed by a relevant person, or (ii) as a result, a benefit is enjoyed by a relevant person, (b) is consideration for a service that is enjoyed in the United Kingdom by a relevant person, (ba) is used outside the United Kingdom (directly or indirectly) and as a result a benefit is enjoyed in the United Kingdom by a relevant person, or (c) is used outside the United Kingdom (directly or indirectly) in respect of a relevant debt, in circumstances where there is a connected operation. (6) In a case where subsection (4)(a) , (b) or (ba) or (5)(a) , (b) or (ba) applies to the importation or use of property, the income or chargeable gains are taken to be remitted at the time the property , benefit or service is first enjoyed by a relevant person by virtue of that importation or use. (7) In this section “relevant debt” means a debt that relates (wholly or in part, and directly or indirectly) to— (a) property falling within subsection (2)(a), (b) a service falling within subsection (2)(b), (c) qualifying property dealt with as mentioned in subsection (4)(a), (d) a service falling within subsection (4)(b), (e) qualifying property dealt with as mentioned in subsection (5)(a), or (f) a service falling within subsection (5)(b). (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) The cases in which property (including income or chargeable gains) is used in respect of a debt include cases where the property is used to pay interest on the debt and cases where the property is used to secure the debt. (9A) For the purposes of this Chapter, any reference to property being brought to the United Kingdom includes— (a) sending, or otherwise effecting a transfer of, the property to the United Kingdom, and (b) in the case of intangible property, taking any steps, or permitting steps to be taken, that would result in property situated outside the United Kingdom becoming situated in the United Kingdom. (9B) Sections 275 to 275C of TCGA 1992 (location of assets) apply for the purposes of subsection (9A)(b) as they apply for the purposes of TCGA 1992. (9C) But subsection (9B) does not apply where the intangible property is a debt other than a judgment debt. (10) This section is subject to sections 809V to 809Z6 (property treated as not remitted to the United Kingdom).

Propose a change

809M Meaning of “relevant person”

(1) This section applies for the purposes of this Chapter. (2) A “relevant person” is— (a) the individual, (b) the individual's husband or wife, (c) the individual's civil partner, (d) a child or grandchild of a person falling within any of paragraphs (a) to (c), if the child or grandchild has not reached the age of 18, (e) a close company in which a person falling within any other paragraph of this subsection is a participator or a company which is a 51% subsidiary of such a close company, (f) a company in which a person falling within any other paragraph of this subsection is a participator, and which would be a close company if it were resident in the United Kingdom, or a company which is a 51% subsidiary of such a company, (g) the trustees of a settlement of which a person falling within any other paragraph of this subsection is a beneficiary, or (h) a body connected with such a settlement. (3) For that purpose— (a) two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other, (c) “close company” is to be read in accordance with Chapter 2 of Part 10 of CTA 2010 (see in particular section 439 of that Act), (ca) “participator”, in relation to a close company, means a person who is a participator in relation to the company for the purposes of section 455 of CTA 2010 (see sections 454 and 455(5) of that Act) and, in relation to a company that would be a close company if it were resident in the United Kingdom, means a person who would be such a participator if it were a close company, (cb) “51% subsidiary” has the same meaning as in the Corporation Tax Acts (see Chapter 3 of Part 24 of CTA 2010), (d) “settlement” and “settlor” have the same meaning as in Chapter 2 of Part 9, (e) “beneficiary”, in relation to a settlement, means any person who receives, or may receive, any benefit under or by virtue of the settlement, (f) “trustee” has the same meaning as in section 993 (see, in particular, section 994(3)), and (g) a body is “connected with” a settlement if the body falls within section 993(3)(c), (d), (e) or (f) as regards the settlement.

Propose a change

← Find another law