Office of Public Sector Information
SCHEDULE 1 continued PART 2 continued
627 In section 101(4)(a) of the Courts Act 2003 (bankruptcy of individuals with rights to receive periodical payments) for “section 329AA of the Income and Corporation Taxes Act 1988” substitute “section 731 of the Income Tax (Trading and Other Income) Act 2005”.
628 In section 14(1) of the Child Trust Funds Act 2004 (insurance companies and friendly societies) for “section 333 business” substitute “plan business”.
629 The Finance Act 2004 is amended as follows.
630 In section 71(3)(b) (collection and recovery of sums to be deducted: construction industry scheme) for “any tax purposes” substitute “any corporation tax purpose (but see also sections 54 and 869 of the Income Tax (Trading and Other Income) Act 2005 for corresponding rule for income tax purposes)”.
631 Omit section 97 (exemption from income tax for certain interest and royalty payments: introductory).
632 Omit section 98 (exemption from income tax for certain interest and royalty payments).
633 Omit section 99 (permanent establishments and “25% associates”).
634 Omit section 100 (interest payments: exemption notices).
635 (1) Amend section 101 (payment of royalties without deduction at source) as follows.
(2) In subsection (1) for “section 98” substitute “section 758 (exemption from income tax for certain interest and royalty payments) of the Income Tax (Trading and Other Income) Act 2005”.
(3) In each of subsections (2) and (3) for “section 98” substitute “section 758 of the Income Tax (Trading and Other Income) Act 2005”.
(4) In subsection (5)—
(a) in paragraph (a) for “section 98” substitute “section 758 of the Income Tax (Trading and Other Income) Act 2005”, and
(b) in paragraph (b) for “Conditions 1 to 3 in section 98” substitute “conditions A to C in that section”.
(5) After subsection (7) insert—
“(8) In a case where section 763 of the Income Tax (Trading and Other Income) Act 2005 (special relationships) applies, this section has effect in relation to only so much of the payment as does not exceed the arm’s length amount (within the meaning of that section).
(9) Expressions used in this section and in sections 757 to 767 of the Income Tax (Trading and Other Income) Act 2005 have the same meaning in this section as in those sections.”
636 In section 102 (claim for tax deducted at source from exempt interest or royalty payments) for “section 98” substitute “section 758 of the Income Tax (Trading and Other Income) Act 2005”.
637 Omit section 103 (special relationships).
638 Omit section 104 (anti-avoidance).
639 Omit section 106 (transitional provision).
640 In section 119(4) (individuals benefited by film relief) for “, the individual shall” to the end substitute “—
(a) the individual shall be treated as receiving at the time of that event an amount of income equal to the chargeable amount;
(b) that income (which shall not be treated as profits of the trade) shall be chargeable to income tax for the year of assessment in which the event occurs; and
(c) the individual shall be liable for any tax so chargeable.”
641 In section 123(1) (meaning of “film-related loss”) for “any of the following” to the end substitute “any provision of Chapter 9 of Part 2 of the Income Tax (Trading and Other Income) Act 2005.”
642 In section 127(2) (losses derived from exploiting licence: individuals in partnership (charge to income tax)) for “, so much of” to the end substitute “—
(a) the individual shall be treated as receiving in that year of assessment an amount of income equal to so much of the total consideration as does not exceed the chargeable amount;
(b) that income (which shall not be treated as profits of the trade) shall be chargeable to income tax for that year of assessment; and
(c) the individual shall be liable for any tax so chargeable.”
643 (1) Amend section 130 (“A significant amount of time”) as follows.
(2) In subsection (3) for “sections 60 to 63” to the end substitute “Chapter 15 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 as applied by section 853 of that Act.”
(3) In subsection (4) for “section 61(1)” substitute “section 199(1)”.
644 In section 186(1)(b) (scheme investments: income) for “which would” to the end substitute “which are not relevant foreign income and which would otherwise be chargeable to income tax under Chapter 8 of Part 5 of ITTOIA 2005 (income not otherwise charged).”
645 (1) Amend section 189(2) (meaning of “relevant UK earnings”) as follows.
(2) In paragraph (b) for “Schedule D” substitute “Part 2 of ITTOIA 2005”.
(3) For paragraph (c) substitute—
“(c) income to which section 833(5B) of ICTA (patent income) applies.”
646 In section 196(2) (relief for employers in respect of contributions paid) after “the purposes of” insert “Part 2 of ITTOIA 2005 (trading income) or”.
647 In section 197(10)(a) (spreading relief) after “charged under” insert “Part 2 of ITTOIA 2005 (trading income) or”.
648 In section 199(2)(a) (deemed contributions) at the beginning insert “Part 2 of ITTOIA 2005 (trading income) or”.
649 In section 200(a) (no other relief for employers in connection with contributions) after “the purposes of” insert “Part 2 of ITTOIA 2005 (trading income) or”.
650 (1) Amend section 246 (restriction of deduction for non-contributory provision) as follows.
(2) In subsection (2)(a) after “the purposes of” insert “Part 2 of ITTOIA 2005 (trading income) or”.
(3) In subsection (3)(a) after “charged under” insert “Part 2 of ITTOIA 2005 (trading income) or”.
651 (1) Amend section 249 of FA 2004 (amendments of ITEPA 2003) as follows.
(2) In subsection (3), in subsection (4) of the inserted section 393B—
(a) for paragraph (a) substitute—
“(a) an excepted group life policy as defined in section 480 of ITTOIA 2005,”, and
(b) in paragraph (b) for the words from “condition 1” to the end of the paragraph substitute “—
(i) condition A in section 481 of that Act would be met if paragraph (a) in that condition referred to the death, in any circumstances or except in specified circumstances, of that individual (rather than the death in any circumstances of each of the individuals insured under the policy) and if the condition did not include paragraph (b), and
(ii) conditions C and D in that section and conditions A and C in section 482 of that Act are met, or”.
(3) In subsection (8), in the inserted section 395 of ITEPA 2003, for “Case VI of Schedule D” substitute “subsection (2) of that section”.
652 In section 280(1) (abbreviations and general index for Part 4) omit the “and” before the definition of “ITEPA 2003” and after that definition insert “and
“ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005.”
653 (1) Amend Schedule 15 (charge to income tax on benefit received by former owner of property) as follows.
(2) In paragraph 1 (introductory) insert in the appropriate place—
““ITTOIA 2005” means the Income Tax (Trading and Other Income Act) 2005;”.
(3) In paragraph 8 (intangible property comprised in settlement where settlor retains an interest)—
(a) in sub-paragraph (1)(a)—
(i) for “section 660A of the Taxes Act 1988” substitute “section 624 of ITTOIA 2005”, and
(ii) for “Part 15” substitute “Chapter 5 of Part 5”, and
(b) in sub-paragraph (1)(b) for “subsection (2) of that section” substitute “section 625(1) of ITTOIA 2005 (settlor’s retained interest)”.
(4) In paragraph 9(1) (intangible property comprised in settlement where settlor retains an interest), in the definition of “T”—
(a) in paragraph (a), for “section 547 of the Taxes Act 1988” substitute “section 461 of ITTOIA 2005”,
(b) in paragraph (b) for “section 660A of that Act” substitute “section 624 of that Act”, and
(c) in paragraph (c) for “that Act” substitute “the Taxes Act 1988”.
(5) In paragraph 22(3)(b) (election for application of inheritance tax provisions) for “section 660A of the Taxes Act 1988” substitute “section 624 of ITTOIA 2005”.
654 In paragraph 1(4) and (6) of Schedule 24, for the words from “(and” to “have” substitute “has”.
655 In paragraph 12 of Schedule 35 (pension schemes etc: minor and consequential amendments) for the words from “for” to the end substitute “for the words from the beginning to “, if the claimant” substitute “Subject to subsection (2) below, section 274 of this Act and sections 192 to 194 of the Finance Act 2004, if the claimant”.”
656 (1) Amend Schedule 36 (pension schemes etc: transitional provisions and savings) as follows.
(2) In paragraph 41(a) (employers' contributions relieved before 6th April 2006) after “the purposes of” insert “Part 2 of ITTOIA 2005 (trading income) or”.
(3) In paragraph 53(2)(b) (benefits taxable under Chapter 2 of Part 6 of ITEPA 2003: contributions taxed pre-commencement) for “to tax under Case VI of Schedule D by virtue of” substitute “to income tax under subsection (2) of”.
657 The Pensions Act 2004 is amended as follows.
658 In Schedule 3 (restricted information held by the Regulator: certain permitted disclosures to facilitate exercise of functions), in the second column, in the entry relating to the Commissioners of Inland Revenue or their officers—
(a) omit the “or” before paragraph (e), and
(b) at the end of that paragraph insert “or
(f) the Income Tax (Trading and Other Income) Act 2005 (so far as relating to functions previously exercised under the Income and Corporation Taxes Act 1988).”
659 In Schedule 8 (restricted information held by the Board: certain permitted disclosures to facilitate exercise of functions), in the second column, in the entry relating to the Commissioners of Inland Revenue or their officers—
(a) omit the “or” before paragraph (e), and
(b) at the end of that paragraph insert “or
(f) the Income Tax (Trading and Other Income) Act 2005 (so far as relating to functions previously exercised under the Income and Corporation Taxes Act 1988).”
Income Tax (Trading and Other Income) Act 2005