Office of Public Sector Information
SCHEDULE 2 continued PART 10
149 (1) This paragraph applies if—
(a) a disposal event is treated as occurring in relation to an individual under paragraph 17(2) of Schedule 36 to FA 2003 (foster-care relief: capital allowances),
(b) the individual is a relevant individual for the tax year 2004-05,
(c) the individual has a chargeable period which corresponds to the income period for the individual’s foster-care receipts in that tax year (and therefore the chargeable period is a relevant chargeable period), and
(d) the next chargeable period of the individual is not a relevant chargeable period.
(2) Subsection (4) of section 825 applies (despite anything in subsection (1) of that section to the contrary) as if the reference to the first subsequent chargeable period which is not a relevant chargeable period were to the period mentioned in sub-paragraph (1)(d).
150 A claim may be made under section 831 (claim for relevant foreign income to be charged on the remittance basis) for relevant foreign income to be charged in accordance with section 832 for the tax year 2005-06 or any later tax year, despite that income having arisen in a tax year before the tax year 2005-06; and sections 832 to 834 apply accordingly.
151 (1) The fact that income arose in a tax year before 2005-06 does not prevent—
(a) a claim being made in respect of it under section 835(1) (relief for delayed remittances), or
(b) section 835(5) applying as respects the tax year in which the income arose.
(2) But sub-paragraphs (3) to (5) apply if—
(a) such a claim is made in respect of any income (“the delayed income”),
(b) the delayed income arose in the tax year 1996-97 or an earlier tax year,
(c) the basis year for that year is a different year, and
(d) that basis year is not the basis year for two tax years.
(3) Section 835(5) does not apply and the delayed income is to be treated as if it were income received in the United Kingdom in that basis year.
(4) In this paragraph “basis year”, in relation to tax chargeable for any tax year in respect of any income, means the year by reference to which the amount of the income chargeable finally falls to be calculated.
(5) This paragraph does not affect which year is to be taken as the basis year for calculating tax chargeable for any tax year.
152 The fact that the earlier year referred to in subsections (1)(b) and (2) of section 840 (relief for backdated pensions charged on the arising basis) is a tax year before 2005-06 does not prevent—
(a) a claim being made under that section, or
(b) such adjustments (by way of repayment of tax, assessment or otherwise) as are necessary to give effect to that section being made as respects such a tax year.
153 (1) A claim may be made under section 842 (claim for relief on unremittable income) for the tax year 2005-06 or any later tax year, despite the income having arisen in a tax year before 2005-06.
(2) Without prejudice to paragraph 4 of this Schedule, section 843 (withdrawal of relief) applies for the tax year 2005-06 or any later tax year, despite the income having arisen originally in a tax year before the tax year 2005-06 (whether the claim in respect of it was made under section 584 of ICTA (relief for unremittable overseas income) or section 842 of this Act).
(3) Sub-paragraph (4) applies if an appeal against an assessment for the tax year 2005-06 or a later tax year involves a question as to the operation of section 584 of ICTA or Chapter 4 of Part 8 of this Act as respects income that arose in a tax year before 2005-06.
(4) Section 31D of TMA 1970 (appeals: election to bring appeal before Special Commissioners) applies with the omission of—
(a) paragraph (b) of subsection (2),
(b) the word “or” preceding that paragraph, and
(c) subsections (3) to (7) (by virtue of which such an election may be disregarded if the General Commissioners so direct).
154 (1) This paragraph applies for the purposes of section 865.
(2) In relation to a period of account ending before 27th November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount which is held by an intermediary with a view to its becoming employees' remuneration.
(3) In relation to a period of account ending on or after 27th November 2002, an amount charged in the accounts in respect of employees' remuneration includes an amount—
(a) in respect of employee benefit contributions (within the meaning of sections 38 to 44) made before that date, and
(b) which is held by an intermediary,
with a view to its becoming employees' remuneration.
155 Section 866 does not apply to deductions that would otherwise be allowed—
(a) for a period ending before 27th November 2002, or
(b) in respect of employee benefit contributions made before that date.
156 (1) Subject to sub-paragraph (3), section 866 applies before 6th April 2006 with the following amendment.
(2) In subsection (5)—
(a) for paragraphs (b) and (c) and the word “or” at the end of paragraph (c) substitute—
“(b) contributions under a retirement benefits scheme within the meaning of Chapter 1 of Part 14 of ICTA (see section 611 of that Act),
(c) contributions under a personal pension scheme approved under Chapter 4 of that Part (see section 630 of that Act), or”, and
(b) omit “For the purposes of paragraph (c)” to the end.
(3) The power of the Treasury to make an order under section 281 or 283 of FA 2004 has effect as if Schedule 35 to that Act contained an amendment substituting section 866(5) of this Act for that subsection as amended by sub-paragraph (2) above.
157 Section 870(2)(b) does not apply to expenditure which was incurred before 1st April 2002.
158 (1) This paragraph applies if—
(a) a relevant period of account begins before 6th April 2005 and ends on or after that date, and
(b) in order to arrive at the profits or losses of a tax year before the tax year 2005-06 it is necessary to apportion the profits or losses of the relevant period of account to any part of that period falling in a tax year before the tax year 2005-06.
(2) A period of account is a “relevant period of account” if—
(a) section 871 applies to the period of account, and
(b) the profits or losses of the part of the period of account falling in the tax year 2005-06 are calculated in accordance with this Act.
(3) The profits or losses of the relevant period of account—
(a) are calculated in accordance with this Act (and therefore, to that extent, this Act has effect for tax years before the tax year 2005-06), and
(b) may be apportioned in accordance with section 871 to any part of the period of account falling in a tax year before the tax year 2005-06.
159 Neither—
(a) the inclusion of rules in section 582 for calculating income chargeable to tax under section 579, nor
(b) the inclusion of rules in sections 612 and 617(3) to (6) for calculating income chargeable to tax under Chapter 3 or 4 of Part 5,
prevents the continued operation of similar rules of law in relation to the calculation of other income (including profits) chargeable to tax under other provisions of this Act.
160 Section 820 of ICTA (application of Income Tax Acts from year to year) applies to this Act as if this Act were in force on the day before 6th April 2005.
161 The amendments made by paragraphs 644 to 651 and 655 of Schedule 1 come into force at the same time as the enactments which they amend.
Income Tax (Trading and Other Income) Act 2005