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Income Tax (Trading and Other Income) Act 2005
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Whole provisions yet to be inserted into this Act (including any effects on those provisions):
- s. 7A-7D inserted by 2022 c. 3 Sch. 1 para. 3
- s. 24A and cross-heading inserted by 2024 c. 3 Sch. 10 para. 2
- s. 25B inserted by 2024 c. 3 Sch. 10 para. 11
- s. 25C inserted by 2024 c. 3 Sch. 10 para. 5
- s. 31E(4) inserted by 2022 c. 3 Sch. 1 para. 7(3)
- s. 649(1A)(1B) inserted by 2023 c. 30 Sch. 2 para. 11(2)
- s. 679(3A) inserted by 2023 c. 30 Sch. 2 para. 11(5)(b)
- s. 679A(3A) inserted by 2023 c. 30 Sch. 2 para. 11(6)(b)
- s. 680(1A) inserted by 2023 c. 30 Sch. 2 para. 11(7)(a)
[F1307FDeemed capital receipts under, or after leaving, cash basisU.K.
This section has no associated Explanatory Notes
(1)This section makes provision supplementary to section 307E.
(2)If—
(a)at any time a person ceases to use an asset or any part of it for the purposes of a property business (other than in the circumstances mentioned in subsection (5)), but
(b)the person does not dispose of the asset (or that part) at that time,
the person is to be regarded for the purposes of section 307E as disposing of the asset (or that part) at that time for an amount equal to the market value amount.
(3)If at any time there is a material increase in the person's non-business use of an asset or any part of it, the person is to be regarded for the purposes of section 307E as disposing of the asset (or that part) at that time for an amount equal to the relevant proportion of the market value amount.
(4)For the purposes of subsection (3)—
(a)there is an increase in a person's non-business use of an asset (or part of an asset) if—
(i)the proportion of the person's use of the asset (or that part) that is for the purposes of the property business decreases, and
(ii)the proportion of the person's use of the asset (or that part) that is for other purposes (the “non-business use”) increases;
(b)“the relevant proportion” is the difference between—
(i)the proportion of the person's use of the asset (or part of the asset) that is non-business use, and
(ii)the proportion of the person's use of the asset (or that part) that was non-business use before the increase mentioned in subsection (3).
(5)If—
(a)the property business in respect of which capital expenditure relating to an asset has been brought into account as mentioned in section 307E is an overseas property business, and
(b)there is a move overseas,
the person is to be regarded for the purposes of section 307E as disposing of the asset at the time of the move overseas for an amount equal to the market value amount.
(6)For the purposes of subsection (5) there is a “move overseas” if—
(a)the person ceases to be UK resident, or
(b)the tax year is, as respects the person, a split year, and the overseas part of the tax year is the later part.
(7)The move overseas occurs—
(a)in a case falling within subsection (6)(a), on the last day of the tax year for which the person is UK resident, or
(b)in a case falling within subsection (6)(b), on the last day of the UK part of the tax year.
(8)In this section—
“capital expenditure” has the same meaning as in section 307E,
“market value amount” means the amount that would be regarded as normal and reasonable—
(a)in the market conditions then prevailing, and
(b)between persons dealing with each other at arm's length in the open market.]
Textual Amendments
F1Ss. 307A-307F and cross-headings inserted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 23
Modifications etc. (not altering text)
C1S. 307F excluded in part (16.11.2017) by 1992 c. 12, s. 37(1A)-(1C) (as inserted (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 44)
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