Income and Corporation Taxes Act 1970

Section 537.

SCHEDULE 15Consequential Amendments

Betterment levy

1In section 51 of the [1967 c. 1.] Land Commission Act 1967 (interest on betterment levy), after subsection (2) insert—

“(2A)Interest payable to the Commission by virtue of this section at the rate determined by the [S.I. 1969/536.] Betterment Levy (Rate of Interest) (No. 2) Order 1969, or by any subsequent order under subsection (2) above, shall be paid without deduction of income tax.”.

Reserved taxes for purposes of Government of Ireland Act 1920

2In the [1920 c. 67.] Government of Ireland Act 1920, after section 22(1) insert—

“(1A)This Act shall have effect as if the capital gains tax and corporation tax were included among the taxes mentioned in subsection (1) above.”

Friendly societies and trade unions

3(1)In section 26(2) of the [1956 c. 54.] Finance Act 1956, for the words from the beginning to " ceases to be paid " substitute—

“(2)If, in the event of a dissolution of any registered friendly society or registered trade union, any approved annuity as defined in section 226(13) of the Income and Corporation Taxes Act 1970 ceases to be paid,”.

(2)For section 29(9) of the [1966 c. 18.] Finance Act 1966 substitute—

“(9)Part II of Schedule 8 to this Act shall be construed in accordance with subsections (2) and (3) of section 337 of the Income and Corporation Taxes Act 1970.”.

(3)For paragraph 5(4)(b) of Schedule 8 to the Finance Act 1966 substitute—

“(b)any approved annuities as defined in section 226(13) of the Income and Corporation Taxes Act 1970.”.

Post-war credits

4In the [1959 c. 28.] Income Tax (Repayment of Post-War Credits) Act 1959, after section 1(6) insert—

“(6A)Notwithstanding any other enactment relating to summary jurisdiction, proceedings for an offence under subsection (6) above may be commenced at any time within three years from the time when the offence was committed.”

Capital allowances

5(1)The [1968 c. 3.] Capital Allowances Act 1968 shall be amended as follows.

(2)In section 6(5)(a), for " Case VIII of Schedule D " substitute " Schedule A ".

(3)For section 12(3) substitute—

“(3)The reference in this section to the permanent discontinuance of a trade does not include a reference to the happening of any event which, by virtue of section 154 or 251(1) of the principal Act (changes in persons carrying on a trade, and special rules for corporation tax), is to be treated as equivalent to the discontinuance of the trade.”

(4)At the end of section 15 add—

“(4)Section 42 of the [1970 c. 9.] Taxes Management Act 1970 shall apply to any claim under this section for relief from corporation tax, but, without prejudice to section 71(3) of this Act, not to any other claim under this section.”

(5)In section 48(1), for paragraphs (a) and (b) substitute " of section 154 or 251(1) of the principal Act (changes in persons carrying on a trade, and special rules for corporation tax) ".

(6)In section 67(3), for the words from the beginning to " permanently discontinued " substitute—

“(3)For the purposes of this section, a trade shall not be treated by virtue of section 154 or 251(1) of the principal Act (changes in persons carrying on a trade, and special rules for corporation tax) as permanently discontinued”.

(7)In section 69, in the definitions of " agricultural income " and " forestry income", for " Case VIII of Schedule D" substitute " Schedule A ".

(8)At the end of section 70(3) add—

“Section 42 of the Taxes Management Act 1970 shall not apply to any such claim.”.

(9)In section 71(3), for the words from "made to the inspector" to the end of the proviso substitute " (that is to say, a claim to which section 42 of the [1970 c. 9.] Taxes Management Act 1970 applies) ".

(10)In section 74(3), for " may claim" substitute " may, on making a claim (to which section 42 of the Taxes Management Act 1970 applies), require ".

(11)In section 74(4), for "Part IV of the Finance Act 1965 " substitute " the Corporation Tax Acts ".

(12)In section 79(1), for paragraphs (a) and (b) substitute " of section 154 or 251(1) of the principal Act (changes in persons carrying on a trade, and special rules for corporation tax) ".

(13)At the end of section 100 add—

“(5)In this Act " the principal Act" means the Income and Corporation Taxes Act 1970.”.

(14)In paragraph 8(1)(a) of Schedule 2, before " Schedule D" insert " Schedule A or ".

Chargeable gain

6(1)In section 39 of the [1965 c. 25.] Finance Act 1965—

(a)in subsection (1), for " sections 347 and 348 of the Income Tax Act 1952 (double taxation relief and unilateral relief), with Schedules 16 and 17 to that Act" substitute " Chapters I and II of Part XVIII of the Income and Corporation Taxes Act 1970 as they apply for the purposes of income tax ",

(b)in subsection (2), for " the said section 347" substitute " section 347 of the Income Tax Act 1952 ",

(c)in subsection (3), for " the said provisions of the Income Tax Act 1952" substitute " the said Chapters I and II ", and for " those provisions of the Income Tax Act 1952 " substitute " those Chapters, " and

(d)in subsection (4), for "Section 353 of the Income Tax Act 1952" substitute " Section 518 of the Income and Corporation Taxes Act 1970 ".

(2)In section 45(1) of the Finance Act 1965, insert the following definitions (after those of " company " and " control " respectively)—

• “' close company ' has the meaning given by sections 282 and 283 of the Income and Corporation Taxes Art 1970 ;”

• “' inspector ' means any inspector of taxes ;”.

(3)At the end of paragraph 4 of Schedule 6 to the Finance Act 1965 add—

“(3)Except as provided by section 269 of the Income and Corporation Taxes Act 1970 (companies: interest charged to capital), no payment of interest shall be allowable under this paragraph,”.

(4)In paragraph 6(b) of Schedule 13 to the [1967 c. 54.] Finance Act 1967, for " paragraph 2(1) of Schedule 13 to that Act" substitute " section 273(1) of the Income and Corporation Taxes Act 1970 " ; and (in consequence), in paragraph 6(c) of that Schedule, for " that Act" substitute " the [1965 c. 25.] Finance Act 1965 ".

(5)In paragraph 23(1) of Schedule 12 to the [1968 c. 44.] Finance Act 1968, for paragraph (b) substitute the following—

“(b)' group ' shall be construed in accordance with subsections (1) (without paragraph (a)), (3) and (4) of section 272 of the Income and Corporation Taxes Act 1970.”

(6)In paragraph 22(3) of Schedule 19 to the [1969 c. 32.] Finance Act 1969, for " the said paragraph 7(2) of Schedule 7 " substitute " paragraph 7(2) of Schedule 7 to the Finance Act 1965 or section 267 of the Income and Corporation Taxes Act 1970 ".

7Section 207 of this Act (residence) shall apply in relation to capital gains tax as it applies for the purposes mentioned in that section.

Estate Duty

8In section 37(3) of the [1958 c. 56.] Finance Act 1958, for the reference to subsection (1) of that section substitute a reference to section 215(1) of this Act.

9(1)In section 88(2) of the Finance Act 1965 (consequential amendments for estate duty), for the reference to Part IV of the Finance Act 1965 substitute a reference to the Corporation Tax Acts.

(2)Nothing in this Act shall affect the operation of section 58(1) of the [1940 c. 29.] Finance Act 1940.

General powers of amendment in Acts relating to overseas countries

10Where under any Act passed before this Act and relating to a country or territory outside the United Kingdom there is a power to affect Acts passed or in force before a particular time, or instruments made or having effect under such Acts, and the power would, but for the passing of this Act or the [1970 c. 9.] Taxes Management Act 1970, have included power to change the law which is reproduced in, or is made or has effect under, this Act or the said Taxes Management Act, then that power shall include power to make such provision as will secure the like change in the law reproduced in, or made or having effect under, this Act or the said Taxes Management Act, notwithstanding that neither Act is an Act passed or in force before that time.

Translation of references to enactments repealed and re-enacted

11In the enactments specified in column 1 of the following Table, for the words in column 2 substitute the words in column 3, adding, except as otherwise indicated—

(a)for those in Part I of the Table, " of the Taxes Management Act 1970 ", and

(b)for those in Part II, " of the Income and Corporation Taxes Act 1970 ", or, in the case of enactments contained in the [1968 c. 3.] Capital Allowances Act 1968, " of the principal Act ",

(but in all cases saying " to ", instead of " of", if the substituted words refer to a Schedule rather than a section).

Amendments converting references about capital allowances to references to the [1968 c. 3.] Capital Allowances Act 1968

12(1)In Schedule 6 to the [1965 c. 25.] Finance Act 1965—

(a)in paragraph 2(2), for " Part X or Part XI of the Income Tax Act 1952 (capital allowances)" substitute " the Capital Allowances Act 1968 (including the provisions of the Income and Corporation Taxes Act 1970 which under that Act are to be treated as contained in the said Act of 1968) ",

(b)in paragraph 6(3), for " Schedule 14 to the Income Tax Act 1952" substitute " Schedule 7 to the Capital Allowances Act 1968 ", and for " paragraph 6 or paragraph 7 of Schedule 6 to the Finance Act 1952 " substitute " section 35(2) to (4) or section 48(2) of that Act ",

(c)in paragraph 6(4)(a), for "Part X or Part XI of the Income Tax Act 1952" substitute " the Capital Allowances Act 1968 (including the provisions of the Income and Corporation Taxes Act 1970 which under that Act are to be treated as contained in the said Act of 1968) " , and

(d)in paragraph 6(6), for " section 296 of the Income Tax Act 1952 " substitute " section 40 of the Capital Allowances Act 1968 ".

(2)In section 99(1) of the [1968 c. 3.] Capital Allowances Act 1968 (construction of future enactments) after " past or future " insert " (including any amendment made by any such provision in any enactment or instrument passed or made before the passing of this Act) ".

Regulations about double taxation relief

13In Regulation 6 of the [S.I. 1966/312.] Double Taxation Relief (Taxes on Income) (General) Regulations 1966, the references to section 170 of the [1952 c. 10.] Income Tax Act 1952 shall include a reference to section 54 of this Act.