Source: http://www.agreementdesk.co.uk/acts/income-tax-act-2005.php
Timestamp: 2017-09-20 12:47:11
Document Index: 516326221

Matched Legal Cases: ['art 2', 'art 2', 'art 3', 'art 3', 'art 3', 'art 4', 'art 4', 'art 4', 'art 4', 'art 5', 'art 5', 'art 5', 'art 5', 'art 6', 'art 5', 'art 5', 'art 5', 'art 5', 'art 8', 'art 9', 'art 10', 'art 1', 'art 2', 'art 2', 'art 3', 'art 4', 'art 5', 'art 7', 'art 8', 'art 9', 'art 10', 'art 11', 'art 12', 'art 1', 'art 2', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 6', 'art 6', 'art 7', 'art 8', 'art 9', 'art 10', 'art 2', 'art 3', 'art 3', 'art 4', 'art 4', 'art 5', 'art 5', 'art 2', 'art 2', 'art 6', 'art 2', 'art 3', 'art 2', 'art 8', 'art 10', 'art 2']

Income Tax (Trading and Other Income) Act 2005 List of acts
1. Overview of Act
2. Overview of priority rules
3. Overview of Part 2
4. Provisions which must be given priority over Part 2
Income taxed as trade profits
5. Charge to tax on trade profits
6. Territorial scope of charge to tax
7. Income charged
8. Person liable
9. Farming and market gardening
10. Commercial occupation of land other than woodlands
11. Commercial occupation of woodlands
12. Profits of mines, quarries and other concerns
13. Visiting performers
14. Visiting performers: supplementary
15. Divers and diving supervisors
16. Oil extraction and related activities
17. Effect of becoming or ceasing to be a UK resident
18. Effect of company starting or ceasing to be within charge to income tax
19. Tied premises
20. Caravan sites where trade carried on
21. Surplus business accommodation
22. Payments for wayleaves
Rent-a-room and foster-care relief
23. Rent-a-room and foster-care relief
Trade profits: basic rules
24. Professions and vocations
25. Generally accepted accounting practice
26. Losses calculated on same basis as profits
27. Receipts and expenses
28. Items treated under CAA 2001 as receipts and expenses
30. Animals kept for trade purposes
31. Relationship between rules prohibiting and allowing deductions
Trade profits: rules restricting deductions
32. Professions and vocations
33. Capital expenditure
Wholly and exclusively and losses rules
34. Expenses not wholly and exclusively for trade and unconnected losses
35. Bad and doubtful debts
36. Unpaid remuneration
37. Unpaid remuneration: supplementary
38. Restriction of deductions
39. Making of “employee benefit contributions”
40. Provision of qualifying benefits
41. Timing and amount of certain qualifying benefits
42. Provision or payment out of employee benefit contributions
43. Profits calculated before end of 9 month period
44. Interpretation of sections 38 to 44
45. Business entertainment and gifts: general rule
46. Business entertainment: exceptions
47. Business gifts: exceptions
Car or motor cycle hire
48. Car or motor cycle hire
49. Car or motor cycle hire: supplementary
50. Hiring cars (but not motor cycles) with low carbon dioxide emissions
51. Patent royalties
52. Exclusion of double relief for interest
53. Social security contributions
Penalties, interest and VAT surcharges
54. Penalties, interest and VAT surcharges
Crime-related payments
55. Crime-related payments
Trade profits: rules allowing deductions
56. Professions and vocations
57. Pre-trading expenses
Incidental costs of obtaining finance
58. Incidental costs of obtaining finance
59. Convertible loans and loan stock etc.
60. Tenants under taxed leases: introduction
61. Tenants occupying land for purposes of trade treated as incurring expenses
62. Limit on deductions if tenant entitled to mineral extraction allowance
63. Tenants dealing with land as property employed for purposes of trade
64. Restrictions on section 61 expenses: lease premium receipts
65. Restrictions on section 61 expenses: lease of part of premises
66. Corporation tax receipts treated as taxed receipts
67. Restrictions on section 61 expenses: corporation tax receipts
68. Replacement and alteration of trade tools
69. Payments for restrictive undertakings
70. Employees seconded to charities and educational establishments
71. Educational establishments
72. Payroll deduction schemes: contributions to agents' expenses
73. Counselling and other outplacement services
74. Retraining courses
75. Retraining courses: recovery of tax
Redundancy payments etc.
76. Redundancy payments and approved contractual payments
77. Payments in respect of employment wholly in employer’s trade
78. Payments in respect of employment in more than one capacity
79. Additional payments
80. Payments made by the Government
81. Personal security expenses
82. Contributions to local enterprise organisations or urban regeneration companies
83. Meaning of “local enterprise organisation”
84. Approval of local enterprise agencies
85. Supplementary provisions with respect to approvals
86. Meaning of “urban regeneration company”
87. Expenses of research and development
88. Payments to research associations, universities etc.
89. Expenses connected with patents
90. Expenses connected with designs or trade marks
91. Payments to Export Credits Guarantee Department
Expenses connected with foreign trades
92. Expenses connected with foreign trades
93. Allocation of expenses
94. Family expenses
Trade profits: receipts
95. Professions and vocations
96. Capital receipts
97. Debts incurred and later released
98. Acquisition of trade: receipts from transferor’s trade
99. Reverse premiums
100. Excluded cases
101. Tax treatment of reverse premiums
102. Arrangements not at arm’s length
103. Connected persons and property arrangements
Assets of mutual concerns
104. Distribution of assets of mutual concerns
Industrial development grants
105. Industrial development grants
Proceeds of insurance etc.
106. Sums recovered under insurance policies etc.
Trade profits: gifts to charities etc.
107. Professions and vocations
108. Gifts of trading stock to charities etc.
109. Receipt by donor or connected person of benefit attributable to certain gifts
110. Meaning of “designated educational establishment”
Trade profits: herd basis rules
111. Election for application of herd basis rules
112. Meaning of “animal”, “herd”, “production herd” etc.
113. Other interpretative provisions
114. Initial cost of herd and value of herd
115. Addition of animals to herd
116. Replacement of animals in herd
117. Amount of receipt if old animal slaughtered under disease control order
118. Sale of animals from herd
119. Sale of whole or substantial part of herd
120. Acquisition of new herd begun within 5 years of sale
121. Section 120: sale for reasons outside farmer’s control
122. Replacement of part sold begun within 5 years of sale
123. Section 122: sale for reasons outside farmer’s control
124. Herd basis elections
125. Five year gap in which no production herd kept
126. Slaughter under disease control order
127. Preventing abuse of the herd basis rules
128. Information if election made
129. Further assessment etc. if herd basis rules apply
Trade profits: films and sound recordings
130. Expenditure to which this Chapter applies
131. Meaning of “film” and related expressions
132. Meaning of “original master version” and “certified master version”
133. Meaning of “relevant period”
Expenditure treated as revenue in nature
134. Expenditure treated as revenue in nature
Films and sound recordings: normal rules for allocating expenditure
135. Films and sound recordings: production or acquisition expenditure
Certified master versions: special rules for allocating expenditure
136. Application of provisions about certified master versions
137. Certified master versions: preliminary expenditure
138. Certified master versions: production or acquisition expenditure
Certified master versions: limited-budget films
139. Certified master versions: production expenditure on limited-budget films
140. Certified master versions: acquisition expenditure on limited-budget films
141. “Total production expenditure in respect of the original master version”
142. When expenditure is incurred
Election for sections 134 to 140 not to apply
143. Election for sections 134 to 140 not to apply
144. Meaning of “genuinely intended for theatrical release”
Trade profits: certain telecommunication rights
145. Professions and vocations
146. Meaning of “relevant telecommunication right”
147. Expenditure and receipts treated as revenue in nature
148. Credits or debits arising from revaluation
Trade profits: other specific trades
Dealers in securities etc.
149. Taxation of amounts taken to reserves
150. Conversion etc. of securities held as circulating capital
151. Exchanges of gilts for gilt strips
152. Consolidation of gilt strips
153. Meaning of “gilt-edged security” and “strip”
154. Regulations for determining market value of securities or strips
Persons authorised for purposes of FISMA 2000
155. Levies and repayments under FISMA 2000
Dealers in land etc.
156. Purchase or sale of woodlands
157. Relief in respect of mineral royalties
158. Lease premiums etc: reduction of receipts
159. Ministers of religion
160. Alternative basis of calculation in early years of practice
161. Mineral exploration and access
Persons liable to pool betting duty
162. Payments by persons liable to pool betting duty
163. Deduction for deemed employment payment
164. Special rules for partnerships
165. Deduction for site preparation expenditure
166. Allocation of site preparation expenditure
167. Site preparation expenditure: supplementary
168. Site restoration payments
169. Cemeteries and crematoria: introduction
170. Deduction for capital expenditure
171. Allocation of ancillary capital expenditure
172. Exclusion of expenditure met by subsidies
Trade profits: valuation of stock and work in progress
173. Valuation of trading stock on cessation
174. Meaning of “trading stock”
175. Basis of valuation of trading stock
176. Sale basis of valuation: sale to unconnected person
177. Sale basis of valuation: sale to connected person
178. Sale basis of valuation: election by connected persons
179. Connected persons
180. Cost to buyer of stock valued on sale basis of valuation
181. Meaning of “sale” and related expressions
182. Valuation of work in progress on cessation
183. Meaning of “work in progress”
184. Basis of valuation of work in progress
185. Election for valuation at cost
186. Determination of questions by Commissioners
Deductions from profits: unremittable amounts
187. Professions and vocations
188. Application of Chapter
189. Relief for unremittable amounts
190. Restrictions on relief
191. Withdrawal of relief
Disposal and acquisition of know-how
192. Meaning of “know-how” etc.
193. Disposal of know-how if trade continues to be carried on
194. Disposal of know-how as part of disposal of all or part of a trade
195. Seller controlled by buyer etc.
196. Professions and vocations
197. Meaning of “accounting date”
198. General rule
199. First tax year
200. Second tax year
201. Tax year in which there is no accounting date
202. Final tax year
203. Apportionment etc. of profits to basis periods
Overlap profits and losses
204. Meaning of “overlap period” and “overlap profit”
205. Deduction for overlap profit in final tax year
206. Restriction on bringing losses into account twice
207. Treatment of business start-up payments received in an overlap period
Rules where first accounting date shortly before end of tax year
208. When the late accounting date rules apply
209. Rule if there is an accounting date
210. Rules if there is no accounting date
Slight variations in accounting date
211. Treating middle date as accounting date
212. Consequence of treating middle date as accounting date
213. Circumstances in which middle date not treated as accounting date
Special rules if accounting date changes
214. When a change of accounting date occurs
215. Change of accounting date in third tax year
216. Change of accounting date in later tax year
217. Conditions for basis period to end with new accounting date
218. Commercial reasons for change of accounting date
219. The year after an ineffective change of accounting date
220. Deduction for overlap profit on change of accounting date
Averaging profits of farmers and creative artists
221. Claim for averaging of fluctuating profits
222. Circumstances in which claim may be made
223. Adjustment of profits
224. Effect of adjustment
225. Effect of later adjustment of profits
226. Professions and vocations
227. Application of Chapter
228. Adjustment income and adjustment expense
229. Income charged
230. Person liable
231. Calculation of the adjustment
Treatment of adjustment income and adjustment expense
232. Treatment of adjustment income
233. Treatment of adjustment expense
234. No adjustment for certain expenses previously brought into account
235. Cases where adjustment not required until assets realised or written off
236. Change from realisation basis to mark to market
237. Election for spreading if section 236 applies
Spreading of adjustment income: barristers and advocates
238. Spreading on ending of exemption for barristers and advocates
239. Election to accelerate charge under section 238
240. Liability of personal representatives if person liable dies
241. Professions and vocations
242. Charge to tax on post-cessation receipts
243. Extent of charge to tax
244. Income charged
245. Person liable
246. Basic meaning of “post-cessation receipt”
247. Other rules about what counts as post-cessation receipts
248. Debts paid after cessation
249. Debts released after cessation
250. Receipts relating to post-cessation expenditure
251. Transfer of rights if transferee does not carry on trade
252. Transfer of trading stock or work in progress
253. Lump sums paid to personal representatives for copyright etc.
254. Allowable deductions
255. Further rules about allowable deductions
256. Treatment of post-cessation receipts
257. Election to carry back
258. Changes in trustees and personal representatives
259. Meaning of “statutory insolvency arrangement”
260. Overview of Part 3
261. Provisions which must be given priority over Part 3
262. Priority between Chapters within Part 3
263. Introduction
264. UK property business
265. Overseas property business
266. Meaning of “generating income from land”
267. Activities not for generating income from land
Profits of property businesses: basic rules
268. Charge to tax on profits of a property business
269. Territorial scope of charge to tax
270. Income charged
271. Person liable
272. Profits of a property business: application of trading income rules
273. Amounts not brought into account as part of a property business
274. Relationship between rules prohibiting and allowing deductions
275. Apportionment etc. of profits to tax year
Profits of property businesses: lease premiums etc.
276. Introduction
277. Lease premiums
278. Amount treated as lease premium where work required
279. Sums payable instead of rent
280. Sums payable for surrender of lease
281. Sums payable for variation or waiver of term of lease
282. Assignments for profit of lease granted at undervalue
283. Provisions supplementary to section 282
284. Sales with right to reconveyance
285. Sale and leaseback transactions
286. Provisions supplementary to sections 284 and 285
287. Circumstances in which additional calculation rule applies
288. The additional calculation rule
289. The additional calculation rule: special cases
290. Meaning of “unused amount” and “unreduced amount”
291. Deductions for expenses under section 292
292. Tenants under taxed leases treated as incurring expenses
293. Restrictions on section 292 expenses: the additional calculation rule
294. Restrictions on section 292 expenses: lease of part of premises
295. Limit on reductions and deductions
Relationship with ICTA
296. Corporation tax receipts treated as taxed receipts
297. Taking account of reductions in corporation tax receipts
298. Taking account of deductions for rent as a result of section 37(4) or 87(2) of ICTA
299. Payment of tax by instalments
300. Statement of accuracy for purposes of section 282
301. Claim for repayment of tax payable by virtue of section 284
302. Claim for repayment of tax payable by virtue of section 285
303. Rules for determining effective duration of lease
304. Applying the rules in section 303
305. Information about effective duration of lease
306. Provisions about premiums
307. Interpretation
Profits of property businesses: other rules about receipts and deductions
308. Furnished lettings
309. Rent-a-room relief
310. Acquisition of business: receipts from transferor’s UK property business
311. Reverse premiums
312. Deduction for expenditure on energy-saving items
313. Restrictions on relief
314. Regulations
315. Deduction for expenditure on sea walls
316. Transfer of interest in premises
317. Ending of lease of premises
318. Transfer involving company within the charge to corporation tax
319. Relief in respect of mineral royalties
320. Nature of item apportioned on sale of estate or interest in land
321. Mutual business
Commercial letting of furnished holiday accommodation
322. Introduction
323. Meaning of “commercial letting of furnished holiday accommodation”
324. Meaning of “relevant period” in sections 325 and 326
325. Meaning of “qualifying holiday accommodation”
326. Under-used holiday accommodation: averaging elections
327. Capital allowances and loss relief
328. Earned income and relevant UK earnings for pension purposes
329. Application of Chapter
330. Adjustment income and adjustment expense
331. Income charged
332. Person liable
333. Treatment of adjustment income
334. Treatment of adjustment expense
Rent receivable in connection with a UK section 12(4) concern
Charge to tax on rent receivable in connection with a UK section 12(4) concern
335. Charge to tax on rent receivable in connection with a UK section 12(4) concern
336. Meaning of “rent receivable in connection with a UK section 12(4) concern”
337. Income charged
338. Person liable
339. Deduction for management expenses of owner of mineral rights
340. Relief in respect of mineral royalties
341. Meaning of “mineral lease or agreement” and “mineral royalties”
342. Extended meaning of “mineral royalties” etc. in Northern Ireland
343. Power of Board to determine what counts as “mineral royalties”
Rent receivable for UK electric-line wayleaves
344. Charge to tax on rent receivable for a UK electric-line wayleave
345. Meaning of “rent receivable for a UK electric-line wayleave”
346. Extent of charge to tax
347. Income charged
348. Person liable
349. Charge to tax on post-cessation receipts
350. Extent of charge to tax
351. Income charged
352. Person liable
353. Basic meaning of “post-cessation receipt”
354. Other rules about what counts as a “post-cessation receipt”
355. Transfer of rights if transferee does not carry on UK property business
356. Application to Schedule A businesses
Overseas property income
357. Charge to tax on overseas property income
358. Meaning of “overseas property income”
359. Income charged
360. Person liable
361. Changes in trustees and personal representatives
362. Effect of company starting or ceasing to be within charge to income tax
363. Overseas property businesses and overseas land: adaptation of rules
364. Meaning of “lease” and “premises”
365. Overview of Part 4
366. Provisions which must be given priority over Part 4
367. Priority between Chapters within Part 4
368. Territorial scope of Part 4 charges
Charge to tax on interest
369. Charge to tax on interest
370. Income charged
371. Person liable
Other income taxed as interest
372. Building society dividends
373. Open-ended investment company interest distributions
374. Date when interest payments under section 373 made
375. Interpretation of sections 373 and 374
376. Authorised unit trust interest distributions
377. Date when interest payments under section 376 made
378. Interpretation of sections 376 and 377
379. Industrial and provident society payments
380. Funding bonds
381. Discounts
Dividends etc. from UK resident companies etc.
382. Contents of Chapter
Charge to tax on dividends and other distributions
383. Charge to tax on dividends and other distributions
384. Income charged
385. Person liable
386. Open-ended investment company dividend distributions
387. Date when dividends paid under section 386
388. Interpretation of sections 386 and 387
389. Authorised unit trust dividend distributions
390. Date when dividends paid under section 389
391. Interpretation of sections 389 and 390
Shares in approved share incentive plans (“SIPs”)
392. SIP shares: introduction
393. Later charge where cash dividends retained in SIPs are paid over
394. Distribution when dividend shares cease to be subject to SIP
395. Reduction in tax due in cases within section 394
396. Interpretation of sections 392 to 395
Tax credits and payment and deduction of tax
397. Tax credits for qualifying distributions: UK residents and eligible non-UK residents
398. Increase in amount or value of dividends where tax credit available
399. Qualifying distributions received by persons not entitled to tax credits
400. Non-qualifying distributions
401. Relief: qualifying distribution after linked non-qualifying distribution
Dividends from non-UK resident companies
Charge to tax on dividends from non-UK resident companies
402. Charge to tax on dividends from non-UK resident companies
403. Income charged
404. Person liable
405. SIP shares: introduction
406. Later charge where cash dividends retained in SIPs are paid over
407. Dividend payment when dividend shares cease to be subject to SIP
408. Reduction in tax due in cases within section 407
Stock dividends from UK resident companies
409. Charge to tax on stock dividend income
410. When stock dividend income arises
411. Income charged
412. Cash equivalent of share capital
413. Person liable
414. Income tax treated as paid
Release of loan to participator in close company
415. Charge to tax under Chapter 6
416. Income charged
417. Person liable
418. Relief where borrowers liable as settlors
419. Loans and advances to persons who die
420. Loans and advances to trustees of trusts that have ended
421. Income tax treated as paid
422. Charge to tax on purchased life annuity payments
423. Meaning of “purchased life annuity”
424. Income charged
425. Person liable
426. Annuity payments received after deduction of tax
Profits from deeply discounted securities
Charge to tax under Chapter 8
427. Charge to tax on profits from deeply discounted securities
428. Income charged
429. Person liable
430. Meaning of “deeply discounted security”
431. Excluded occasions of redemption
432. Securities which are not deeply discounted securities
433. Meaning of “excluded indexed security”
434. Securities issued in separate tranches: preliminary
435. Securities issued in separate tranches: basic rule
436. Deeply discounted securities issued in separate tranches: nominal value rule
437. Transactions which are disposals
438. Timing of transfers and acquisitions
439. Calculating the profit from disposals
440. Market value disposals
441. Market value acquisitions
442. Securities issued in accordance with qualifying earn-out right
Special rules for strips of government securities
443. Application of this Chapter to strips of government securities
444. Meaning of “strip” in Chapter 8
445. Strips of government securities: acquisitions and disposals
446. Strips of government securities: relief for losses
447. Restriction of profits on strips by reference to original acquisition cost
448. Restriction of losses on strips by reference to original acquisition cost
449. Strips of government securities: manipulation of acquisition, transfer or redemption payments
450. Market value of strips etc.
451. Market value of strips etc. quoted in foreign stock exchange lists
452. Power to modify this Chapter for strips
Special rules for listed securities held since 26th March 2003
453. Application of sections 454 to 456
454. Listed securities held since 26th March 2003: relief for losses
455. Listed securities held since 26th March 2003: calculating the profit or loss on disposals
456. Securities issued to connected persons etc. at excessive price: subsequent transfers to connected persons
457. Trustees
458. Non-UK resident trustees
459. Transfer of assets abroad
460. Minor definitions
Gains from contracts for life insurance etc.
Charge to tax under Chapter 9
461. Charge to tax under Chapter 9
462. When gains arise from policies and contracts
463. Income charged
Person liable etc.
464. Person liable for tax: introduction
465. Person liable: individuals
466. Person liable: personal representatives
467. Person liable: UK resident trustees
468. Non-UK resident trustees and foreign institutions
469. Two or more persons interested in policy or contract
470. Interests in rights under a policy or contract for section 469
471. Determination of shares etc.
472. Trusts created by two or more persons
Policies and contracts to which Chapter 9 applies
473. Policies and contracts to which Chapter 9 applies: general
474. Special rules: qualifying policies
475. Special rules: personal portfolio bonds
476. Special rules: foreign policies
477. Special rules: certain older policies and contracts
478. Exclusion of mortgage repayment policies
479. Exclusion of pension policies
480. Exclusion of excepted group life policies
481. Excepted group life policies: conditions about benefits
482. Excepted group life policies: conditions about persons intended to benefit
483. Exclusion of credit union group life policies
When chargeable events occur: general
484. When chargeable events occur
485. Disregard of certain events in relation to qualifying policies
486. Exclusion of maturity of capital redemption policies in certain circumstances
487. Disregard of certain assignments
488. Disregard of some events after alterations of life insurance policy terms
489. Conditions applicable to alterations of life insurance policy terms
490. Last payment under guaranteed income bonds etc. treated as total surrender
Calculating gains: general
491. Calculating gains: general rules
492. The total benefit value of a policy or contract
493. The value of a policy or contract
494. The total allowable deductions for a policy or contract
495. Disregard of certain amounts in calculating gains under section 491
496. Modification of section 494: qualifying endowment policies held as security for company debts
497. Disregard of trivial inducement benefits
Part surrenders and assignments: periodic calculations and excess events
498. Requirement for periodic calculations in part surrender or assignment cases
499. Meaning of “insurance year” and “final insurance year”
500. Events treated as part surrenders
501. Part surrenders: loans
502. Exception from section 501 for loans to buy life annuities
503. Exception from section 501 for certain loans under qualifying policies
504. Part surrenders: payments under guaranteed income bonds etc.
505. Assignments etc. involving co-ownership
506. Assignments occurring when there is a co-ownership transaction
507. Method for making periodic calculations under section 498
508. The value of rights partially surrendered or assigned
509. Chargeable events in certain cases where periodic calculations show gains
510. Requirement for transaction-related calculations in certain part surrender and assignment cases
511. Method for making transaction-related calculations under section 510
512. Available premium left for relevant transaction
513. Special rules for part surrenders and assignments in final insurance year
514. Chargeable events where transaction-related calculations show gains
515. Requirement for annual calculations in relation to personal portfolio bonds
516. Meaning of “personal portfolio bond”
517. Policies and contracts which are not personal portfolio bonds
518. The index categories
519. The index selection conditions
520. The property categories
521. The property selection conditions
522. Method for making annual calculations under section 515
523. The total amount of personal portfolio bond excesses
524. The total amount of part surrender gains
525. Chargeable events where annual calculations show gains
526. Power to make regulations about personal portfolio bonds
Reductions from gains
527. Reduction for sums taken into account otherwise than under Chapter 9
528. Reduction in amount charged: non-UK resident policy holders
529. Exceptions to section 528
Income tax treated as paid and reliefs
530. Income tax treated as paid etc.
531. Exceptions to section 530
532. Relief for policies and contracts with European Economic Area insurers
533. Meaning of “comparable EEA tax charge”
534. Regulations providing for relief in other cases where foreign tax chargeable
535. Top slicing relief
536. Top slicing relieved liability: one chargeable event
537. Top slicing relieved liability: two or more chargeable events
538. Recovery of tax from trustees
539. Relief for deficiencies
540. When deficiencies arise: events following calculation events
541. Calculation of deficiencies
542. Replacement of qualifying policies
543. Issue time of qualifying policy replacing foreign policy
544. Application of Chapter to policies and contracts in which companies interested
545. Minor definitions
546. Table of provisions subject to special rules for older policies and contracts
Distributions from unauthorised unit trusts
547. Charge to tax under Chapter 10
548. Income charged
549. Person liable
550. Income tax treated as paid
551. Charge to tax on profits from disposal of deposit rights
552. Meaning of “deposit rights”
553. Income charged
554. Person liable
Disposals of futures and options involving guaranteed returns
Charge to tax under Chapter 12
555. Charge to tax under Chapter 12
556. Income charged
557. Person liable
558. Meaning of “future”, “option” etc.
When disposals involve guaranteed returns
559. When disposals involve guaranteed returns
560. Production of guaranteed returns
561. The return from one or more disposals
When disposals of futures and options occur
562. When disposals of futures and options occur: general
563. Timing of certain grants of options where related disposals occur later
564. Deemed disposal where futures run to delivery or options are exercised
565. Interpretation of section 564
566. When transactions are related
567. Losses
568. Special rule for certain income of trustees
569. Anti-avoidance: transfer of assets abroad
Sales of foreign dividend coupons
570. Charge to tax under Chapter 13
571. Meaning of “foreign holdings” etc.
572. Income charged
573. Person liable
574. Overview of Part 5
575. Provisions which must be given priority over Part 5
576. Priority between Chapters within Part 5
577. Territorial scope of Part 5 charges
578. Contents of Chapter
Charge to tax on non-trading income from intellectual property
579. Charge to tax on royalties and other income from intellectual property
580. Income charged under section 579
581. Person liable for tax under section 579
582. Deductions in calculating certain income charged under section 579
583. Charge to tax on income from disposals of know-how
584. Exceptions to charge under section 583
585. Income charged under section 583
586. Person liable for tax under section 583
Sales of patent rights
587. Charge to tax on income from sales of patent rights
588. Income charged under section 587
589. Person liable for tax under section 587
590. UK resident sellers: spreading rules
591. Non-UK resident sellers: election for spreading
592. Further provision about elections for spreading: instalments
593. Death of seller
594. Winding up of a body corporate
595. Deduction of tax from payments to non-UK residents
596. Adjustments where tax has been deducted
597. Licences connected with patents
598. Rights to acquire future patent rights
599. Sums paid for Crown use etc. treated as paid under licence
Relief from income tax on patent income
600. Relief for expenses: patent income
601. How relief is given under section 600
Payments received after deduction of tax
602. Payments received after deduction of tax
603. Contributions to expenditure
604. Contributions not made by public bodies nor eligible for tax relief
605. Exchanges
606. Apportionment where property sold together
607. Questions about apportionments affecting two or more persons
608. Meaning of “capital sums” etc.
Films and sound recordings: non-trade businesses
609. Charge to tax on films and sound recordings businesses
610. Income charged
611. Person liable
612. Calculation of income
613. Application of trading income rules to non-trade businesses
Certain telecommunication rights: non-trading income
614. Charge to tax on certain telecommunication rights of a non-trader
615. Income charged
616. Person liable
617. Deductions in calculating certain income charged
618. Payments received after deduction of tax
Settlements: amounts treated as income of settlor
Charge to tax under Chapter 5
619. Charge to tax under Chapter 5
620. Meaning of “settlement” and “settlor”
Income charged and person liable
621. Income charged
622. Person liable
623. Calculation of income
Income treated as income of settlor: retained interests
624. Income where settlor retains an interest
625. Settlor’s retained interest
626. Exception for outright gifts between spouses
627. Exceptions for certain types of income
628. Exception for gifts to charities
Income treated as income of settlor: unmarried children
629. Income paid to unmarried minor children of settlor
630. Exception for gifts to charities
631. Retained and accumulated income
632. Offshore income gains
Capital sums treated as income of settlor: trustees' payments
633. Capital sums paid to settlor by trustees of settlement
634. Meaning of “capital sum” and “sums paid to settlor”
635. Amount of available income
636. Calculation of undistributed income
637. Qualifications to section 636
Trustees' payments: further provisions
638. Capital sums paid by way of loan or repayment of loan
639. Loans to participators in close companies
640. Grossing-up of deemed income
Capital sums treated as income of settlor: connected bodies
641. Capital sums paid to settlor by body connected with settlement
642. Exception for certain loans or repayments of loans
643. Interpretation of sections 641 and 642
Settlements by two or more settlors
644. Application to settlements by two or more settlors
645. Property or income originating from settlor
646. Adjustments between settlor and trustees etc.
647. Power to obtain information
648. Income arising under a settlement
Beneficiaries' income from estates in administration
Charge to tax on estate income
649. Charge to tax on estate income
650. Absolute, limited and discretionary interests
651. Meaning of “UK estate” and “foreign estate”
652. Estate income: absolute interests in residue
653. Meaning of “the administration period” and “the final tax year”
654. Estate income: limited interests in residue
655. Estate income: discretionary interests in residue
656. Income charged: UK estates
657. Income charged: foreign estates
658. Special rules for foreign income
659. Person liable
Basic amount of estate income: general calculation rules
660. Basic amount of estate income: absolute interests
661. Basic amount of estate income: limited interests
662. Basic amount of estate income: discretionary interests
663. The applicable rate for grossing up basic amounts of estate income
664. The aggregate income of the estate
665. Assumed income entitlement
666. The residuary income of the estate
667. Shares of residuary income of estate
668. Reduction in share of residuary income of estate
669. Reduction in residuary income: inheritance tax on accrued income
670. Applicable rate for determining assumed income entitlement (UK estates)
Special rules for successive interests
671. Successive absolute interests
672. Successive interests: assumed income entitlement of holder of absolute interest following limited interest
673. Successive interests: payments in respect of limited interests followed by absolute interests
674. Successive interests: holders of limited interests
675. Basic amount of estate income: successive limited interests
676. Apportionments
677. Relief where UK income tax borne by foreign estate: absolute interests
678. Relief where UK income tax borne by foreign estate: limited and discretionary interests
679. Income from which basic amounts are treated as paid
680. Income treated as bearing income tax
681. Transfers of assets etc. treated as payments
682. Assessments, adjustments and claims after the administration period
Annual payments not otherwise charged
683. Charge to tax on annual payments not otherwise charged
684. Income charged
685. Person liable
686. Payments received after deduction of tax
Income not otherwise charged
687. Charge to tax on income not otherwise charged
688. Income charged
689. Person liable
690. Overview of Part 6
National savings income
691. National Savings Bank ordinary account interest
692. Income from savings certificates
693. Income from Ulster Savings Certificates
Income from individual investment plans
694. Income from individual investment plans
695. Investment plans
696. Plan managers
697. Special requirements for certain foreign managers
698. Requirements for discharge of foreign institution’s duties
699. Non-entitlement to exemption
700. Information
701. General and supplementary powers
SAYE interest
702. Interest under certified SAYE savings arrangements
703. Meaning of “certified SAYE savings arrangement”
704. Types of arrangements and providers
705. Certification of arrangements
706. Withdrawal and variation of certifications and connected requirements
707. Authorisation of providers
708. Withdrawal and variation of authorisations
Venture capital trust dividends
709. Venture capital trust dividends
710. Treatment of shares where annual acquisition limit exceeded
711. Identification of shares after disposals
712. Identification of shares after reorganisations etc.
Income from FOTRA securities
713. Introduction: securities free of tax to residents abroad (“FOTRA securities”)
714. Exemption of profits from FOTRA securities
715. Interest from FOTRA securities held on trust
716. Restriction on deductions etc. relating to FOTRA securities
Partial exemption for purchased life annuity payments
717. Exemption for part of purchased life annuity payments
718. Excluded annuities
719. Extent of exemption under section 717
720. Exempt proportion: term dependent solely on duration of life
721. Exempt sum: term dependent solely on duration of life
722. Consideration for the grant of annuities
723. Determinations
724. Regulations
725. Annual payments under immediate needs annuities
726. Meaning of “care provider”
Other annual payments
Certain annual payments by individuals
727. Certain annual payments by individuals
728. Commercial payments
729. Payments for non-taxable consideration
730. Foreign maintenance payments
Periodical payments of personal injury damages etc.
731. Periodical payments of personal injury damages
732. Compensation awards
733. Persons entitled to exemptions for personal injury payments etc.
734. Payments from trusts for injured persons
Health and employment insurance payments
735. Health and employment insurance payments
736. Health and employment risks and benefits
737. Period for which payments may be made
738. Risk of significant loss
739. Conditions to be met by policies also providing other benefits
740. Conditions to be met where policies are linked
741. Aggregation of policies where employment ends for health reasons
742. Meaning of “the insured”
743. Policies for the benefit of others who contribute to premiums
Payments to adopters
744. Payments to adopters: England and Wales
745. Payments to adopters: Scotland
746. Payments to adopters: Northern Ireland
747. Power to amend sections 744 to 746
Payments by persons liable to pool betting duty
748. Payments by persons liable to pool betting duty
Interest only income
749. Interest paid under repayment supplements
750. Interest from tax reserve certificates
751. Interest on damages for personal injury
752. Interest under employees' share schemes
753. Interest on repayment of student loan
754. Redemption of funding bonds
755. Interest on foreign currency securities etc. owned by non-UK residents
756. Which securities and loans are foreign currency ones for section 755
757. Interest and royalty payments: introduction
758. Exemption for certain interest and royalty payments
759. The person making the payment
760. The person beneficially entitled to the payment
761. Meaning of “25% associates”
762. Interest payments: exemption notices
763. Special relationships
764. Application of ICTA provisions about special relationships
765. Anti-avoidance
766. Interest and royalty payments: interpretation
767. Power to amend references to the Directive by order
Income from commercial occupation of woodlands
768. Commercial occupation of woodlands
769. Housing grants
Approved share incentive plan distributions
770. Amounts applied by SIP trustees acquiring dividend shares or retained for reinvestment
Foreign income of consular officers and employees
771. Relevant foreign income of consular officers and employees
772. Further provisions about Orders under section 771
Income of non-UK residents from certain securities
773. Income from Inter-American Development Bank securities
774. Income from securities issued by designated international organisations
775. Income towards reducing the national debt
776. Scholarship income
777. VAT repayment supplements
778. Incentives to use electronic communications
779. Gains on commodity and financial futures
780. Disabled person’s vehicle maintenance grant
781. Payments under New Deal 50plus
782. Payments under employment zone programme
783. General disregard of exempt income for income tax purposes
Income charged under this Act: rent-a-room and foster-care relief
784. Overview of Chapter 1
785. Person who qualifies for relief
786. Meaning of “rent-a-room receipts”
787. Meaning of “residence”
788. Meaning of “total rent-a-room amount”
Individual’s limit
789. The individual’s limit
790. Exclusive receipts condition
Relief if amount does not exceed limit
791. Full rent-a-room relief: introduction
792. Full rent-a-room relief: trading income
793. Full rent-a-room relief: property income
794. Full rent-a-room relief: income chargeable under Chapter 8 of Part 5
Alternative calculation of profits if amount exceeds limit
795. Alternative calculation of profits: introduction
796. Alternative calculation of profits: trading income
797. Alternative calculation of profits: property income
798. Alternative calculation of profits: income chargeable under Chapter 8 of Part 5
799. Election not to apply full relief
800. Election for alternative method of calculating profits
801. Time limit on adjustment of assessment
802. Minor definitions
Foster-care relief
803. Overview of Chapter 2
804. Person who qualifies for relief
805. Meaning of “foster-care receipts”
806. Meaning of providing foster care
807. Calculation of “total foster-care receipts”
808. The individual’s limit
809. Share of fixed amount: residence used by more than one foster carer
810. Share of fixed amount: income period not a year
811. The amount per child
812. Full foster-care relief: introduction
813. Full foster-care relief: trading income
814. Full foster-care relief: income chargeable under Chapter 8 of Part 5
815. Alternative calculation of profits: introduction
816. Alternative calculation of profits: trading income
817. Alternative calculation of profits: income chargeable under Chapter 8 of Part 5
818. Election for alternative method of calculating profits
819. Adjustment of assessment
Periods of account not ending on 5th April
820. Periods of account not ending on 5th April
821. Meaning of “relevant limit”
822. Full relief
823. Alternative method of calculating profits
Capital allowances for foster carers carrying on trade
824. Capital allowances: introduction
825. Carried forward unrelieved qualifying expenditure
826. Excluded capital expenditure
827. Excluded capital expenditure: subsequent treatment of asset
Overlap profit
828. Overlap profit
Foreign income: special rules
829. Overview of Part 8
830. Meaning of “relevant foreign income”
Relevant foreign income charged on remittance basis
831. Claims for relevant foreign income to be charged on the remittance basis
832. Relevant foreign income charged on the remittance basis
833. Income treated as remitted: repayment of UK-linked debts
834. Arrangements treated as repayment of UK-linked debts
835. Relief for delayed remittances
836. Relief for delayed remittances: backdated pensions
837. Claims for relief on delayed remittances
Relevant foreign income charged on arising basis: deductions and reliefs
838. Expenses attributable to collection or payment of relevant foreign income
839. Annual payments payable out of relevant foreign income
840. Relief for backdated pensions charged on the arising basis
841. Unremittable income: introduction
842. Claim for relief for unremittable income
843. Withdrawal of relief
844. Income charged on withdrawal of relief after source ceases
845. Valuing unremittable income
846. Overview of Part 9
847. General provisions
848. Assessment of partnerships
849. Calculation of firm’s profits or losses
850. Allocation of firm’s profits or losses between partners
851. Calculations etc. where firm has other income or losses
Firms with trading income
852. Carrying on by partner of notional trade
853. Basis periods for partners' notional trades
Firms with trading and other source income
854. Carrying on by partner of notional business
855. Basis periods for partners' notional businesses
856. Overlap profits from partners' notional businesses
857. Partners to whom the remittance basis may apply
858. Resident partners and double taxation agreements
859. Special provisions about farming and property income
860. Adjustment income
861. Sale of patent rights: effect of partnership changes
862. Sale of patent rights: effect of later cessation of trade
863. Limited liability partnerships
864. Overview of Part 10
General calculation rules etc.
865. Unpaid remuneration: non-trades and non-property businesses
866. Employee benefit contributions: non-trades and non-property businesses
867. Business entertainment and gifts: non-trades and non-property businesses
868. Social security contributions: non-trades etc.
869. Penalties, interest and VAT surcharges: non-trades etc.
870. Crime-related payments: non-trades and non-property businesses
871. Apportionment etc. of miscellaneous profits to tax year
872. Losses calculated on same basis as miscellaneous income
873. Orders and regulations made by Treasury or Board
874. Activities in UK sector of continental shelf
875. Meaning of “caravan”
876. Meaning of “farming” and related expressions
877. Meaning of grossing up
878. Other definitions
879. Interpretation: Scotland
880. Interpretation: Northern Ireland
881. Disapplication of corporation tax: section 9 of ICTA
882. Consequential amendments
883. Commencement and transitional provisions etc.
884. Repeals and revocations
885. Abbreviations and general index in Schedule 4
886. Short title
Part 1: Income and Corporation Taxes Act 1988
Part 2: Other enactments
Part 2: Changes in the law
Part 3: Trading income
Part 4: Property income
Part 5: Savings and investment income: general
Part 7: Savings and investment income: gains from contracts for life insurance etc. (personal portfolio bonds)
Part 8: Miscellaneous income
Part 9: Exempt income
Part 10: Foster-care relief
Part 11: Foreign income: special rules
Part 12: Other provisions
Schedule 3: Repeals and revocations
Schedule 4: Abbreviations and defined expressions
Part 1: Abbreviations of Acts
Part 2: Index of expressions defined in this Act etc.
An Act to restate, with minor changes, certain enactments relating to income tax on trading income, property income, savings and investment income and certain other income; and for connected purposes.
(1) This Act imposes charges to income tax under—
(a) Part 2 (trading income),
(b) Part 3 (property income),
(c) Part 4 (savings and investment income), and
(d) Part 5 (certain miscellaneous income).
(2) Those charges to tax have effect for the purposes of section 1(1) of ICTA (the general charge to income tax).
(3) Exemptions from those charges are dealt with in Part 6 (exempt income) but any Part 6 exemptions which are most obviously relevant to particular types of income are also mentioned in the provisions about those types of income.
(4) What is or is not mentioned in those provisions does not limit the effect of Part 6.
(5) This Act also contains—
(a) provision about rent-a-room relief and foster-care relief (see Part 7),
(b) special rules for foreign income (see Part 8),
(c) special rules for partnerships (see Part 9), and
(d) certain calculation rules and general provisions (see Part 10).
(6) For abbreviations and defined expressions used in this Act, see section 885 and Schedule 4.
2 Overview of priority rules
(1) This Act contains some rules establishing an order of priority in respect of certain amounts which would otherwise—
(a) fall within a charge to income tax under two or more Chapters or Parts of this Act, or
(b) fall within a charge to income tax under a Chapter or Part of this Act and ITEPA 2003.
(2) See, in particular—
section 4 (provisions which must be given priority over Part 2),
section 261 (provisions which must be given priority over Part 3),
section 262 (priority between Chapters within Part 3),
section 366 (provisions which must be given priority over Part 4),
section 367 (priority between Chapters within Part 4),
section 575 (provisions which must be given priority over Part 5), and
section 576 (priority between Chapters within Part 5).
(3) But the rules in those sections need to be read with other rules of law (whether in this Act or otherwise) about the scope of particular provisions or the order of priority to be given to them.
(4) Section 171(2) of FA 1993 (profits of Lloyd’s underwriters charged only under Chapter 2 of Part 2 of this Act) is one example of another rule of law.
3 Overview of Part 2
(1) This Part imposes charges to income tax under—
(a) Chapter 2 (the profits of a trade, profession or vocation which meet the territorial conditions mentioned in section 6),
(b) Chapter 17 (amounts treated as adjustment income under section 228), and
(c) Chapter 18 (post-cessation receipts that are chargeable under this Part).
(2) Part 6 deals with exemptions from the charges under this Part.
(3) See, in particular, the exemptions under sections 777 (VAT repayment supplements) and 778 (incentives to use electronic communications).
(4) The charges under this Part apply to non-UK residents as well as UK residents but this is subject to sections 6(2) and (3) and 243(3) and (4) (charges on non-UK residents only on UK income).
(5) The rest of this Part contains rules relevant to the charges to tax under this Part.
(6) This section needs to be read with the relevant priority rules (see sections 2 and 4).
4 Provisions which must be given priority over Part 2
(1) Any receipt or other credit item, so far as it falls within—
(a) Chapter 2 of this Part (receipts of trade, profession or vocation), and
(b) Chapter 3 of Part 3 so far as it relates to a UK property business,
(2) Any receipt or other credit item, so far as it falls within—
(a) this Part, and
(b) Part 2, 9 or 10 of ITEPA 2003 (employment income, pension income or social security income),
is dealt with under the relevant Part of ITEPA 2003.
5 Charge to tax on trade profits
6 Territorial scope of charge to tax
(1) Profits of a trade arising to a UK resident are chargeable to tax under this Chapter wherever the trade is carried on.
(2) Profits of a trade arising to a non-UK resident are chargeable to tax under this Chapter only if they arise—
(a) from a trade carried on wholly in the United Kingdom, or
(b) in the case of a trade carried on partly in the United Kingdom and partly elsewhere, from the part of the trade carried on in the United Kingdom.
(3) This section applies to professions and vocations as it applies to trades.
7 Income charged
(1) Tax is charged under this Chapter on the full amount of the profits of the tax year.
(2) For this purpose the profits of a tax year are the profits of the basis period for the tax year.
(3) For the rules identifying the basis period for a tax year, see Chapter 15.
(4) This section is subject to Part 8 (foreign income: special rules).
(5) And, for the purposes of section 830 (meaning of “relevant foreign income”), the profits of a trade, profession or vocation arise from a source outside the United Kingdom only if the trade, profession or vocation is carried on wholly outside the United Kingdom.
8 Person liable
The person liable for any tax charged under this Chapter is the person receiving or entitled to the profits.
9 Farming and market gardening
(1) Farming or market gardening in the United Kingdom is treated for income tax purposes as the carrying on of a trade or part of a trade (whether or not the land is managed on a commercial basis and with a view to the realisation of profits).
(2) All farming in the United Kingdom carried on by a person, other than farming carried on as part of another trade, is treated for income tax purposes as one trade.
(3) In the case of farming carried on by a firm, this rule is explained by section 859(1).
10 Commercial occupation of land other than woodlands
(1) The commercial occupation of land in the United Kingdom is treated for income tax purposes as the carrying on of a trade or part of a trade.
(2) For this purpose the occupation of land is commercial if the land is managed—
(b) with a view to the realisation of profits.
(a) to farming or market gardening (which is dealt with by section 9),
(b) if the land is being prepared for forestry purposes, or
(c) if the land comprises woodlands (which is dealt with by section 11)
11 Commercial occupation of woodlands
(1) The commercial occupation of woodlands in the United Kingdom is not a trade or part of a trade for any income tax purpose.
(2) For this purpose the occupation of woodlands is commercial if the woodlands are managed—
(3) See also sections 267 and 768 (which, when read with this section, secure that profits or losses from the commercial occupation of woodlands in the United Kingdom are ignored for income tax purposes).
12 Profits of mines, quarries and other concerns
(1) Profits or losses arising out of land in the case of a concern to which this section applies are calculated as if the concern were a trade.
(2) Any profits arising out of the land are charged to income tax as if the concern were a trade carried on in the United Kingdom.
But this does not impose a charge to tax on a non-UK resident in the case of a concern outside the United Kingdom.
(3) Any losses arising out of the land are treated for the purposes of Chapter 1 of Part 10 of ICTA (loss relief) as losses of a trade carried on in the United Kingdom.
(4) The concerns to which this section applies are—
(a) mines and quarries (including gravel pits, sand pits and brickfields),
(b) ironworks, gasworks, salt springs or works, alum mines or works, waterworks and streams of water,
(c) canals, inland navigation, docks and drains or levels,
(d) rights of fishing,
(e) rights of markets and fairs, tolls, bridges and ferries,
(f) railways and other kinds of way, and
(g) a concern of the same kind as one specified in paragraph (b), (c), (d) or (e).
(5) This section does not apply to a concern if section 10 (commercial occupation of land other than woodlands) applies to the occupation of the land out of which the profits or losses arise.
13 Visiting performers
(1) This section applies if an entertainer, sportsman or sportswoman of a prescribed description (a “performer”)—
(a) is non-UK resident in a tax year, and
(b) performs a relevant activity in the United Kingdom in the tax year.
(2) If a payment or transfer connected with the relevant activity is made, the performer is treated for income tax purposes as performing the relevant activity in the course of a trade, profession or vocation carried on in the United Kingdom.
(3) It does not matter whether the payment or transfer is made to the performer or anyone else.
(4) Subsection (2) does not apply—
(a) so far as the performer would otherwise be performing the relevant activity in the course of a trade, profession or vocation carried on in the United Kingdom, or
(b) if the relevant activity is performed in the course of an employment or office.
(5) If a payment or transfer connected with the relevant activity is made to —
(a) a person other than the performer, and
(b) that person is of a prescribed description,
the payment or transfer is treated for income tax purposes as made instead to the performer in the course of a trade, profession or vocation carried on in the United Kingdom.
(6) Subsection (5) does not apply in such circumstances as may be prescribed.
(a) income tax is chargeable on profits arising from payments or transfers (made to any person), and
(b) the payments or transfers are connected with the relevant activity,
the tax is charged as if the payments or transfers were received in the course of a separate trade, profession or vocation (distinct from any other trade, profession or vocation carried on by the performer).
(8) In this section and section 14—
“payment” means a payment from which income tax is to be deducted under section 555(2) of ICTA,
“regulations” means regulations made by the Treasury,
“relevant activity” means an activity of a prescribed description, and
“transfer” means a transfer in respect of which income tax is to be accounted for under section 555(3) of ICTA,
and a payment or transfer is connected with a relevant activity if it has a connection of the prescribed kind with that activity.
14 Visiting performers: supplementary
(1) Regulations may provide—
(a) for the deduction, in calculating any profits of the performer arising from the payment or transfer, of expenses incurred by other persons in relation to the payment or transfer,
(b) that any liability to income tax (whether of the performer or anyone else) which would, apart from section 13(5), arise in relation to the payment or transfer is not to arise (or is to arise so far as prescribed).
(a) for the apportionment of profits between different trades, professions or vocations of the performer,
(b) for the apportionment between different tax years of the profits arising from relevant activities of the performer,
(c) for losses made in any trade, profession or vocation of the performer to be deducted from or set off against the profits of another trade, profession or vocation of the performer,
(d) that prescribed provisions of the Income Tax Acts about losses, or about expenses, are not to apply (or are to apply with prescribed modifications) in prescribed circumstances relating to the performer.
(3) References in this section to a trade, profession or vocation of the performer include references to the separate one referred to in section 13(7) as well as to any other carried on by the performer.
(a) make provision generally for giving effect to section 13, and
(b) make different provision for different cases or descriptions of cases.
15 Divers and diving supervisors
(a) a person performs the duties of employment as a diver or diving supervisor in the United Kingdom or in any area designated by Order in Council under section 1(7) of the Continental Shelf Act 1964 (c. 29),
(b) the duties consist wholly or mainly of seabed diving activities, and
(c) any employment income from the employment would otherwise be chargeable to tax under Part 2 of ITEPA 2003.
(2) The performance of the duties of employment is instead treated for income tax purposes as the carrying on of a trade in the United Kingdom.
(3) For the purposes of this section the following are seabed diving activities—
(a) taking part as a diver in diving operations concerned with the exploration or exploitation of the seabed, its subsoil and their natural resources, and
(b) acting as a diving supervisor in relation to any such diving operations.
See more for Income Tax (Trading and Other Income) Act 2005