Income Tax (Trading and Other Income) Act 2005

from a trade carried on wholly in the United Kingdom, or

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.

on a commercial basis, and

with a view to the realisation of profits.

to farming or market gardening (which is dealt with by section 9),

if the land is being prepared for forestry purposes, or

if the land comprises woodlands (which is dealt with by section 11).

on a commercial basis, and

with a view to the realisation of profits.

mines and quarries (including gravel pits, sand pits and brickfields),

ironworks, gasworks, salt springs or works, alum mines or works, waterworks and streams of water,

canals, inland navigation, docks and drains or levels,

rights of fishing,

rights of markets and fairs, tolls, bridges and ferries,

railways and other kinds of way, and

a concern of the same kind as one specified in paragraph (b), (c), (d) or (e).

is non-UK resident in a tax year, and

performs a relevant activity in the United Kingdom in the tax year.

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

if the relevant activity is performed in the course of an employment or office.

a person other than the performer, and

that person is of a prescribed description,

income tax is chargeable on profits arising from payments or transfers (made to any person), and

the payments or transfers are connected with the relevant activity,

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,

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).

for the apportionment of profits between different trades, professions or vocations of the performer,

for the apportionment between different tax years of the profits arising from relevant activities of the performer,

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,

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.

make provision generally for giving effect to section 13, and

make different provision for different cases or descriptions of cases.

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),

the duties consist wholly or mainly of seabed diving activities, and

any employment income from the employment would otherwise be chargeable to tax under Part 2 of ITEPA 2003.

taking part as a diver in diving operations concerned with the exploration or exploitation of the seabed, its subsoil and their natural resources, and

acting as a diving supervisor in relation to any such diving operations.

oil extraction activities, and

any activities consisting of the acquisition, enjoyment or exploitation of oil rights.

an individual carries on a trade wholly or partly outside the United Kingdom otherwise than in partnership, and

the individual becomes or ceases to be UK resident.

as permanently ceasing to carry on the trade at the time of the change of residence, and

so far as the individual continues to carry on the trade, as starting to carry on a new trade immediately afterwards.

as starting to carry on the trade when it starts to be within the charge, or

as permanently ceasing to carry on the trade when it ceases to be within the charge.

in the course of carrying on a trade a person (“the trader”) supplies, or is concerned in the supply of, goods sold or used on premises occupied by another person,

the trader has an estate or interest in the premises,

the estate or interest is dealt with as property employed for the purposes of the trade, and

receipts and expenses in connection with the premises would otherwise be brought into account in calculating the profits of a property business of the trader.

the receipts or expenses do not relate only to the premises, or

the above conditions are met only in relation to part of the premises,

a person (“the trader”) carries on material activities connected with the operation of a caravan site,

the activities are, or are part of, a trade, and

receipts from, and expenses of, lettings of caravans or pitches for caravans on the site would otherwise be brought into account in calculating the profits of a property business of the trader.

a person (“the trader”) carrying on a trade obtains receipts from a letting of business accommodation that is temporarily surplus to requirements (see subsections (3) and (4)),

the accommodation is not held as trading stock,

the receipts are in respect of part of a building of which another part is used to carry on the trade,

the receipts are relatively small, and

the receipts, and the expenses of the letting, would otherwise be brought into account in calculating the profits of a property business of the trader.

it has been used within the last 3 years to carry on the trade or acquired within the last 3 years,

the trader intends to use it to carry on the trade at a later date, and

the letting is for a term of not more than 3 years.

a person (“the trader”) carries on a trade on some or all of the land to which a wayleave relates,

rent is receivable, or expenses are incurred, by the trader in respect of the wayleave, and

apart from any rent or expenses in respect of a wayleave, no other receipts or expenses in respect of any of the land are brought into account in calculating the profits of any property business of the trader.

the trader would otherwise be liable to tax under Chapter 9 of Part 3 in respect of the rent for the wayleave (rent receivable for UK electric-line wayleaves), or

expenses would otherwise be brought into account in calculating the profits charged under that Chapter,

rent for the wayleave would otherwise be brought into account in calculating the profits of a property business of the trader, or

expenses incurred by the trader in respect of the wayleave would otherwise be so brought into account,

a receipt mentioned in section 266(3), and

any other receipt in the nature of rent.

an electric, telegraph or telephone wire or cable,

a pipe for the conveyance of any thing, or

any apparatus used in connection with such a pipe.

a pole or pylon supporting such a wire or cable, or

apparatus used in connection with such a wire or cable.

expenses not incurred wholly and exclusively for the purposes of the trade, or

losses not connected with or arising out of the trade.

the debt is bad,

the debt is estimated to be bad, or

the debt is released wholly and exclusively for the purposes of the trade as part of a statutory insolvency arrangement.

an amount is charged in the accounts for the period in respect of employees’ remuneration, and

a deduction for the remuneration would otherwise be allowable for the period.

particular employments, or

employments generally.

it must be assumed, in making the calculation, that any remuneration which is unpaid when the calculation is made will not be paid before the end of that period, but

if the remuneration is subsequently paid before the end of that period, nothing in this subsection prevents the calculation being revised and any tax return being amended accordingly.

is treated as received by an employee for the purposes of ITEPA 2003 by section 18, 19, 31 or 32 of that Act (receipt of money and non-money earnings), or

would be so treated if it were not exempt income.

the profits of the trade of the period are required to be calculated for income tax purposes, and

a deduction would otherwise be allowable for the period for any employee benefit contributions made or to be made by the person (“the employer”) (but see subsection (4)).

qualifying benefits are provided, or qualifying expenses are paid, out of the contributions during the period or within 9 months from the end of it, or

if the making of the contributions is itself the provision of qualifying benefits, the contributions are made during the period or within 9 months from the end of it.

qualifying benefits are provided out of the contributions before the end of the subsequent period, or

if the making of the contributions is itself the provision of qualifying benefits, the contributions are made before the end of the subsequent period.

anything given as consideration for goods or services provided in the course of a trade or profession,

contributions under a registered pension scheme or under a superannuation fund to which section 615(3) of ICTA applies,

contributions under a qualifying overseas pension scheme in respect of an individual who is a relevant migrant member of the pension scheme in relation to the contributions, or

contributions under an accident benefit scheme.

the employer pays money or transfers an asset to another person (“the third party”), and

the third party is entitled or required, under the terms of an employee benefit scheme, to hold or use the money or asset for or in connection with the provision of benefits to, or in respect of, present or former employees of the employer.

a payment of money, or

a transfer of assets,

the duties of the employment in respect of which the payment or transfer was made were performed in the United Kingdom, and

the person in respect of whose employment the payment or transfer was made met at all relevant times the conditions as to residence or presence in Great Britain or Northern Ireland prescribed under section 1(6) of the Contributions and Benefits Act.

takes the form of a payment of money, and

is not made under an employer-financed retirement benefits scheme,

the amount (if any) spent on the asset by the third party, and

in a case where the asset was transferred to the third party by the employer, the amount of the deduction that would be allowable as mentioned in subsection (1) of that section in respect of the transfer.

is charged to tax under ITEPA 2003 in respect of the transfer, or

would be so charged if condition B in section 40 were met,

any qualifying benefits provided, or

any qualifying expenses paid,

in paying sums to or on behalf of an employee of the person carrying on the trade (“the trader”), or

in putting sums at the disposal of an employee of the trader,

“employee”, in relation to a company, includes a director of the company and a person engaged in the management of the company,

“entertainment” includes hospitality of any kind, and

the expenses incurred in providing entertainment or a gift include expenses incurred in providing anything incidental to the provision of entertainment or a gift.

the entertainment is of a kind which it is the trader’s trade to provide, and

the entertainment is provided in the ordinary course of the trade either for payment or free of charge in order to advertise to the public generally.

the entertainment is also provided for others, and

the provision of the entertainment for the employees is incidental to its provision for the others.

the gift is of an item which it is the trader’s trade to provide, and

the item is given away in the ordinary course of the trade in order to advertise to the public generally.

the gift is food, drink, tobacco or a token or voucher exchangeable for goods, or

the cost of the gift to the trader, together with any other gifts (except food, drink, tobacco or a token or voucher exchangeable for goods) given to the same person in the same basis period, exceeds £50.

gifts are also provided for others, and

the provision of the gifts for the employees is incidental to the provision of gifts for the others.

a charity,

the Historic Buildings and Monuments Commission for England, or

the Trustees of the National Heritage Memorial Fund.

which is not a qualifying hire car or motor cycle (see section 49(2)), and

the retail price of which when new exceeds £12,000.

there is a rebate (however described) of the hire charges, or

a debt in respect of any of the hire charges is released otherwise than as part of a statutory insolvency arrangement.

is brought into account as a receipt of the trade under section 97 (debts incurred and later released), or

is treated as a post-cessation receipt under section 249 (debts released after cessation),

of a construction primarily suited for the conveyance of goods or burden of any description, or

of a type not commonly used as a private vehicle and unsuitable for such use.

is hired under a hire-purchase agreement (see subsection (3)) under which there is no option to purchase,

is hired under a hire-purchase agreement under which there is an option to purchase exercisable on the payment of a sum equal to not more than 1% of the retail price of the car when new, or

is a qualifying hire car for the purposes of Part 2 of CAA 2001 (under section 82 of CAA 2001).

goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and

the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following events occurs,

the exercise of an option to purchase by that person,

the doing of any other specified act by any party to the agreement, and

the happening of any other specified event.

the purchase price or part of it is payable by instalments, and

the goods are to remain the property of the seller (even though they are to be in the possession of the buyer) until specified conditions as to the payment of instalments or otherwise are met.

a car with low CO2 emissions, or

an electrically-propelled car.

under a contract entered into after 31st March 2008, or

for a period of hire which begins after that date.

for any tax year for the interest paid on a debt or liability in respect of which relief is given under section 353 of ICTA (see subsection (5) below), or

for any relevant tax year for other interest on the same debt or liability.

is capable of being brought into account in calculating the profits of a trade, and

is payable by any person on money advanced to the person on current account,

on one or more accounts, or

by the same or separate banks or other persons.

Part 1 of the Social Security Contributions and Benefits Act 1992 (c. 4), or

Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).

a secondary Class 1 contribution,

a Class 1A contribution, or

a Class 1B contribution,

in making a payment if the making of the payment constitutes a criminal offence, or

in making a payment outside the United Kingdom if the making of a corresponding payment in any part of the United Kingdom would constitute a criminal offence in that part.

the offence of blackmail under section 21 of the Theft Act 1968 (c. 60) (England and Wales),

the offence of extortion (Scotland), or

the offence of blackmail under section 20 of the Theft Act (Northern Ireland) 1969 (c. 16 (N.I.)) (Northern Ireland).

no deduction would otherwise be allowed for the expenses, but

a deduction would be allowed for them if they were incurred on the start date,

a loan, or

the issue of loan stock,

which are incurred on fees, commissions, advertising, printing and other incidental matters, and

which are incurred wholly and exclusively for the purpose of obtaining the finance, providing security for it or repaying it.

obtaining finance, or

providing security for it,

sums paid because of losses resulting from movements in the rate of exchange between different currencies,

sums paid for the purpose of protecting against such losses,

the cost of repaying a loan or loan stock so far as attributable to its being repayable at a premium or having been obtained or issued at a discount, and

stamp duty.

it carries the right of conversion into, or to the acquisition of, shares or other securities, and

the right is exercisable before the end of the period of 3 years from the date when the loan was obtained or the stock issued (“the 3 year period”).

the interest on which is deductible in calculating the profits of the person’s trade, and

which does not carry such a right as is mentioned in subsection (1).

references to a lease being granted out of a taxed lease are to the grant of a sublease of land subject to the taxed lease, and

references to the lease so granted are to be read as references to the sublease.

that falls within the receipt period of the taxed receipt, and

on which the tenant occupies the whole or part of the land subject to the taxed lease for the purposes of carrying on a trade.

does not occupy the land subject to the taxed lease, or a part of it, but

deals with the tenant’s interest in the land, or the part of it, as property employed for the purposes of carrying on a trade.

a lease has been granted out of the taxed lease, and

in calculating the amount of a receipt of a property business under Chapter 4 of Part 3 (profits of property businesses: lease premiums etc.) in respect of the lease, there is a reduction under section 288 (the additional calculation rule) by reference to the taxed receipt.

the conditions in section 64(1)(a) and (b) are met, and

the lease granted out of the taxed lease does not extend to the whole of the premises subject to the taxed lease.

more than one lease that does not extend to the whole of the premises subject to the taxed lease has been granted out of the taxed lease, and

the qualifying day falls within the receipt period of two or more lease premium receipts that relate to different leases,

a lease has been granted out of the taxed lease,

in calculating the amount of a corporation tax receipt in respect of the lease, there is a reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest for the purposes of that section, and

the amount chargeable on the superior interest is the taxed receipt for the purposes of section 61.

the corporation tax receipt is treated as if it were a lease premium receipt for the purposes of sections 64 and 65,

references in those sections to the reduction under section 288 by reference to the taxed receipt are, in relation to the corporation tax receipt, to the reduction under section 37(2) or (3) of ICTA by reference to the amount chargeable on the superior interest, and

there is a receipt of a Schedule A business or an overseas property business (within the meaning of section 70A(4) of ICTA) as a result of section 34 or 35 of ICTA (treatment of premiums etc. as rent and assignments for profit of lease granted at an undervalue) in respect of the lease for an accounting period ending after 5th April 2005, or

there would be such a receipt, but for the operation of section 37(2) or (3) of ICTA (reductions in certain receipts under section 34 or 35 of ICTA).

the amount of the corporation tax receipt before the operation of section 37(2) or (3) of ICTA, and

the amount of the corporation tax receipt after the operation of that subsection,

expenses are incurred on replacing or altering any tool used for the purposes of a trade, and

a deduction for the expenses would not otherwise be allowable in calculating the profits of the trade because (and only because) they are items of a capital nature.

which is treated as earnings of an employee by virtue of section 225 of ITEPA 2003 (payments for restrictive undertakings), and

which is made, or treated as made for the purposes of section 226 of that Act (valuable consideration given for restrictive undertakings), by the person carrying on the trade.

is made, or

is treated as made for the purposes of section 226 of ITEPA 2003.

a charity, or

an educational establishment,

a local education authority,

an educational institution maintained or otherwise supported by a local education authority,

an independent school within the meaning of the Education Act 1996 (c. 56) registered under section 161 of the Education Act 2002 (c. 32), or

an institution within the further education sector, or the higher education sector, within the meaning of the Further and Higher Education Act 1992 (c. 13).

an education authority within the meaning of the Education (Scotland) Act 1980 (c. 44),

an educational establishment within the meaning of the Education (Scotland) Act 1980 managed by an education authority within the meaning of that Act,

a public or grant-aided school within the meaning of the Education (Scotland) Act 1980,

an independent school within the meaning of the Education (Scotland) Act 1980,

a central institution within the meaning of the Education (Scotland) Act 1980,

an institution within the higher education sector within the meaning of section 56(2) of the Further and Higher Education (Scotland) Act 1992 (c. 37), or

a college of further education within the meaning of section 36(1) of the Further and Higher Education (Scotland) Act 1992.

an education or library board within the meaning of the Education and Libraries (Northern Ireland) Order 1986 (S.I. 1986/594 (N.I. 3)),

a college of education or a controlled, maintained, grant-maintained integrated, controlled integrated, voluntary or independent school within the meaning of the Education and Libraries (Northern Ireland) Order 1986, or

an institution of further education within the meaning of the Further Education (Northern Ireland) Order 1997 (S.I. 1997/1772 (N.I. 15)).

a person carrying on a trade (“the employer”) is liable to make payments to an individual,

income tax falls to be deducted from those payments as a result of PAYE regulations, and

the employer withholds sums from those payments in accordance with an approved scheme and pays the sums to an approved agent.

have been incurred, or

are to be incurred,

the person carrying on the trade (“the employer”) incurs the expenses,

the expenses are incurred in relation to a person (“the employee”) who holds or has held an office or employment under the employer for the purposes of the trade, and

the relevant conditions are met.

in the provision of services to the employee in connection with the cessation of the office or employment,

in the payment or reimbursement of fees for such provision, or

in the payment or reimbursement of travelling expenses in connection with such provision.

conditions A to D for the purposes of section 310 of ITEPA 2003 (employment income exemptions: counselling and other outplacement services), and

in the case of travel expenses, condition E for those purposes.

the person carrying on the trade (“the employer”) incurs the expenses,

they are incurred in relation to a person (“the employee”) who holds or has held an office or employment under the employer for the purposes of the trade, and

the relevant conditions are met.

an employer’s liability to tax for a tax year is determined on the assumption that a deduction for expenditure is allowed under section 74, and

the deduction would not otherwise have been allowed.

the condition in section 311(4)(a) of ITEPA 2003 is not met because of the employee’s failure to begin the course within the period of one year after ceasing to be employed, or

the condition in section 311(4)(b) of ITEPA 2003 is not met because of the employee’s continued employment or re-employment,

the employee’s failure to begin the course,

the employee’s continued employment, or

the employee’s re-employment,

the failure to begin the course,

the continued employment, or

the re-employment.

a person (“the employer”) makes a redundancy payment or an approved contractual payment to another person (“the employee”), and

the payment is in respect of the employee’s employment wholly in the employer’s trade or partly in the employer’s trade and partly in one or more other capacities.

Part 11 of the Employment Rights Act 1996 (c. 18), or

Part 12 of the Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)).

the payment is in respect of the employee’s employment wholly in the employer’s trade, and

no deduction would otherwise be allowable for the payment.

partly in the employer’s trade, and

partly in one or more other capacities.

the employment in the trade, and

the employment in the other capacities.

the redundancy payment, or

if an approved contractual payment is made, the amount that would have been due if a redundancy payment had been payable.

no deduction would otherwise be allowable for the additional payment, but

a deduction would be allowable for it if the employer had not permanently ceased to carry on the trade or the part of the trade,

the redundancy payment, or

if an approved contractual payment is made, the amount that would have been due if a redundancy payment had been payable.

the Secretary of State makes a payment under section 167 of the Employment Rights Act 1996 (c. 18), or

the Department for Employment and Learning makes a payment under Article 202 of the Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)).

a redundancy payment, or

an approved contractual payment,

an individual (“the trader”) carries on a trade (alone or in a partnership of individuals),

there is a special threat to the personal physical security of the trader which arises wholly or mainly because of the particular trade,

a service or asset which improves personal security is used by or provided for the trader to meet the threat,

the person incurring expenses in connection with that use or provision does so with the sole object of meeting the threat, and

a deduction for the expenses would not otherwise be allowable in calculating the profits of the trade because (and only because) they were not incurred wholly and exclusively for the purposes of the trade.

in the case of a service, if the benefit resulting to the trader consists wholly or mainly of an improvement of the trader’s personal physical security, and

in the case of an asset, if the person incurring the expenses intends the asset to be used to improve personal physical security (whether solely or partly).

the asset becomes fixed to land, or

the trader is or becomes entitled to the property in the asset or (if the asset is a fixture) to any estate or interest in the land concerned.

to a local enterprise organisation (see section 83), or

to an urban regeneration company (see section 86),

receives a disqualifying benefit of any kind, or

is entitled to receive such a benefit,

from the organisation or company concerned, or

from anyone else.

a deduction has been made under this section, and

the contributor or a connected person receives a disqualifying benefit that is in any way attributable to the contribution.

is brought into account in calculating the profits of the trade, as a receipt arising on the date on which the benefit is received, or

if the contributor has permanently ceased to carry on the trade before that date, is treated as a post-cessation receipt (see Chapter 18).

a local enterprise agency,

a training and enterprise council,

a Scottish local enterprise company, or

a business link organisation.

the Secretary of State (in relation to England or Northern Ireland),

the Scottish Ministers (in relation to Scotland), or

the National Assembly for Wales (in relation to Wales).

Scottish Enterprise, or

Highlands and Islands Enterprise,

whatever its status or structure, and

even if it is not described as a local enterprise agency.

that the body’s sole aim is the promotion or encouragement of local enterprise, or

that one of the body’s main aims is the promotion or encouragement of local enterprise and that it has or is about to have a separate fund for the sole purpose of pursuing that aim.

to any of its members, or

to any person charged with the control and direction of its affairs.

reasonable remuneration for goods, labour or power supplied or for services provided,

reasonable interest on money lent, or

reasonable rent for premises,

accounts,

provision of information, and

other matters,

the approval must specify the fund, and

section 82 applies only to a contribution to the body made wholly to or for the purposes of the fund.

condition A or B in section 84 is no longer met, or

the body is failing to comply with a requirement imposed as a condition of its approval.

its sole or main function is to co-ordinate the regeneration of a specific urban area in the United Kingdom,

it is expected to seek to perform that function by creating a plan for the development of that area and trying to secure that the plan is carried into effect, and

in co-ordinating the regeneration of that area, it is expected to work together with some or all local or other public authorities which exercise functions in relation to the whole or part of that area.

related to the trade, and

directly undertaken by or on behalf of the person,

do not include expenses incurred in the acquisition of rights in, or arising out of, research and development, but

subject to that, include all expenses incurred in carrying out, or providing facilities for carrying out, research and development.

research and development which may lead to or facilitate an extension of the trade, and

research and development of a medical nature which has a special relation to the welfare of workers employed in the trade.

pays any sum to an approved scientific research association which has as its object scientific research related to the class of trade to which the trade belongs, or

pays any sum to be used for such scientific research to an approved university, college research institute or other similar institution,

a scientific research association, or

a university, college research institute or other similar institution,

scientific research which may lead to or facilitate an extension of trades of the class, and

scientific research of a medical nature which has a special relation to the welfare of workers employed in trades of the class.

whether, or

what extent,

in obtaining for the purposes of the trade the grant of a patent or the extension of a patent’s term, or

in connection with a rejected or abandoned application for a patent made for the purposes of the trade.

the registration of a design or trade mark,

the extension of a period for which the right in a registered design subsists, or

the renewal of registration of a trade mark.

an individual (“the trader”) carries on a foreign trade (alone or in partnership),

the trader is absent from the United Kingdom wholly and exclusively for the purpose of carrying on the foreign trade or the foreign trade and one or more other trades (whether or not foreign trades),

qualifying expenses are incurred in connection with the foreign trade, and

a deduction for the expenses would not otherwise be allowable in calculating the profits of the foreign trade because (and only because) they were not incurred wholly and exclusively for the purposes of the foreign trade.

expenses incurred by the trader in travelling between a place in the United Kingdom and a place where the foreign trade is carried on,

expenses incurred by the trader on board and lodging at a place where the foreign trade is carried on,

if the trader’s absence from the United Kingdom is for a continuous period of 60 days or more, family expenses (as defined in section 94), and

if the trader also carries on another trade outside the United Kingdom (whether or not a foreign trade), expenses incurred by the trader in travelling between a place where the foreign trade is carried on and a place outside the United Kingdom where the other trade is carried on.

the expenses are within section 92(3)(a) or (b), and

the trader carries on more than one foreign trade at the place in question outside the United Kingdom,

the expenses are within section 92(3)(c), and

the trader’s absence is for the purpose of carrying on more than one foreign trade,

to the trade carried on at the trader’s place of destination, if that trade is a foreign trade, and

in any other case, to the foreign trade carried on at the trader’s place of departure.

the place of destination (in a case falling within subsection (4)(a)), or

the place of departure (in a case falling within subsection (4)(b)),

is between a place in the United Kingdom and a place outside the United Kingdom where any of the trades is carried on, and

is made in order to accompany the trader at the beginning of the period of absence or to visit the trader during that period or to return after a journey made for either purpose.

in calculating the profits of a trade, a deduction is allowed for the expense giving rise to a debt owed by the person carrying on the trade,

all or part of the debt is released, and

the release is not part of a statutory insolvency arrangement.

is brought into account as a receipt in calculating the profits of the trade, and

is treated as arising on the date of the release.

a person (“the transferor”) permanently ceased to carry on a trade at any time,

at that time the transferor transferred to another person (“the transferee”) the right to receive sums arising from the carrying on of the trade, and

the transferee subsequently carries on the transferor’s trade.

which the transferee receives as a result of the transfer, and

which are not brought into account in calculating the profits of the transferor’s trade for income or corporation tax purposes for any period before the cessation,

if conditions A to C are met, and

it is not excluded by section 100.

the recipient, or

a person connected with the recipient.

the recipient, or

the person connected with the recipient,

the person (“the grantor”) by whom the estate, interest or right is granted or was granted at an earlier time,

a person connected with the grantor, or

a nominee of, or a person acting on the directions of, the grantor or a person connected with the grantor.

the person entering into the transaction is an individual, and

the transaction relates to premises occupied or to be occupied by the individual as the individual’s only or main residence.

two or more of the parties to the property arrangements are connected persons, and

the terms of those arrangements are not such as would reasonably have been expected if those persons had been dealing at arm’s length.

in the market conditions then prevailing, and

between persons dealing with each other at arm’s length in the open market.

which is not then carried on by the recipient, but

which the recipient subsequently starts to carry on,

a deduction has been allowed in calculating the profits of a trade for a payment to a mutual concern for the purposes of its mutual business,

the concern is being or has been wound up or dissolved,

a person (“the recipient”) who is carrying on the trade, or was doing so at the time of the payment, receives money or money’s worth representing the concern’s assets, and

the assets in question represent profits of the mutual business conducted by the concern.

is not carrying on the trade at the time the money or money’s worth is received, but

was doing so at the time of the payment to the mutual concern,

forms part of the assets of the concern,

forms part of the consideration for the transfer of the assets of the concern as part of a scheme of amalgamation or reconstruction which involves its winding up, or

consists of the consideration for a transfer or surrender of a right to receive anything falling within paragraph (a) or (b) and does not give rise to a charge to income tax on the person receiving it otherwise than as a result of this section.

forms part of the assets of a mutual concern, or

forms part of the consideration for the transfer of the assets of a mutual concern,

section 7 or 8 of the Industrial Development Act 1982 (c. 52), or

Article 7, 9 or 30 of the Industrial Development (Northern Ireland) Order 1982 (S.I. 1982/1083 (N.I. 15)).

the grant is designated as made towards the cost of specified capital expenditure,

the grant is designated as compensation for the loss of capital assets, or

the grant is for all or part of a corporation tax liability (including one that has already been met).

a deduction is allowed for a loss or expense in calculating the profits of a trade,

a person carrying on the trade recovers a sum under an insurance policy or a contract of indemnity in respect of the loss or expense, and

the sum is not of a revenue nature.

are not treated as trading stock (see section 30), but

are treated instead in accordance with sections 114 to 123 (“the herd basis rules”).

“animal” means any animal or other living creature,

“herd” includes a flock and any other collection of animals (however named), and

“production herd” means, in relation to a farmer, a herd of animals of the same species (irrespective of breed) kept by the farmer wholly or mainly for the products obtainable from the living animal which the animals produce for the farmer to sell.

the young of the animal, or

any other product obtainable from the animal without slaughtering it.

the nature of the land on which the herd is kept means that animals which die or cease to be part of the herd can be replaced only by animals bred and reared on the land,

the immature animals in question are bred in the herd and are maintained in the herd for the purpose of replacing other animals, and

it is necessary to maintain the immature animals for that purpose.

in relation to animals kept singly as it applies in relation to herds, and

in relation to shares in animals as it applies in relation to animals themselves.

the animals kept in both herds are of the same species (irrespective of breed), and

the products produced for the farmer to sell (for which the herds are wholly or mainly kept) are of the same kinds in both herds.

money received from an insurer because of the animal’s death or destruction,

compensation money received because of the animal’s death or destruction, and

the sale proceeds of the animal’s carcass or any part of its carcass.

in the case of laying birds, when they first lay, and

in any other case, when they produce their first young.

in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity, and

in any other case, the sum of the initial cost of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity.

an animal (“the old animal”) is sold from the herd or otherwise ceases to be part of the herd, and

it is replaced in the herd by another animal (“the new animal”).

section 117 (amount of receipt if old animal slaughtered under disease control order),

section 120 (acquisition of new herd begun within 5 years of sale), and

section 122 (replacement of part sold begun within 5 years of sale).

the old animal was slaughtered under a disease control order, and

the new animal is of worse quality than the old animal,

central government,

a devolved authority,

a local authority, or

another public authority.

in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity, and

in any other case, the sum of the initial cost of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity.

it is replaced in the herd by another animal (see section 116), or

it is sold as part of the sale of the whole or a substantial part of the herd that takes place all at once or over a period not longer than 12 months (see section 119).

in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity,

in the case of an animal acquired by the farmer for valuable consideration, the sum of the initial cost to the farmer of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity, and

in the case of an animal acquired by the farmer but not for valuable consideration, the sum of the market value of the animal when acquired and the cost (if any) incurred by the farmer in rearing the animal to maturity.

section 120 applies (acquisition of new herd begun within 5 years of sale), or

section 122 applies (replacement of part sold begun within 5 years of sale),

either all at once or over a period not longer than 12 months, the herd (“the old herd”) is sold, and

the farmer acquires or starts to acquire another production herd of the same class (“the new herd”) within 5 years of the sale.

the number of animals in the old herd, or

if smaller, the number of animals in the new herd,

sold from the old herd, and

replaced in that herd by another animal (“the new animal”),

the number of animals in the new herd is smaller than the number of animals in the old herd, and

the difference is not substantial,

section 119 (sale of whole or substantial part of herd where replacement not begun within 5 years), or

section 122 (sale of substantial part of herd where replacement begun within 5 years),

if the difference between the number of animals in the new herd and the number of animals in the old herd is equal to 20% or more of the number of animals in the old herd, the difference is substantial, but

a lesser percentage than 20% is capable of being a substantial difference depending on the circumstances of the case concerned.

the farmer was compelled to sell the old herd for reasons wholly outside the farmer’s control, and

an animal (“the new animal”) that is treated as a result of section 120(2) as if it replaced an animal sold (“the old animal”) is of worse quality than the old animal,

in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity, and

in any other case, the sum of the initial cost of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity.

either all at once or over a period not longer than 12 months, a substantial part of the herd is sold, and

the farmer acquires or starts to acquire animals to replace the part sold within 5 years of the sale.

a profit arising from their sale is not brought into account as a receipt, and

no deduction is allowed for a loss arising from their sale.

the farmer was compelled to sell the part of the herd for reasons wholly outside the farmer’s control, and

an animal (“the new animal”) that replaces an animal sold (“the old animal”) is of worse quality than the old animal,

in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity, and

in any other case, the sum of the initial cost of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity.

on or before the first anniversary of the normal self-assessment filing date for the tax year in which the first relevant period of account ends, or

if that is the tax year in which the farmer starts to carry on the trade and the farmer is not a firm, on or before the second anniversary of the normal self-assessment filing date for that tax year.

has ceased to keep before making the election, or

first keeps after making the election.

carries on the trade, and

keeps a production herd of the class to which the election relates.

any herd basis election made by the old firm ceases to have effect, and

in relation to the new firm, “the first relevant period of account” means the first period of account in which the new firm keeps a production herd of the class to which the election relates.

keeps a production herd of a particular class, and

ceases altogether to keep herds of that class for a period of at least 5 years.

the period of account in which the farmer starts to keep the herd is treated as the first period of account in which the farmer keeps a production herd of that class, and

any herd basis election previously made by the farmer in relation to production herds of that class ceases to have effect.

the whole or a substantial part of a production herd kept by a farmer is slaughtered under a disease control order, and

the circumstances of the slaughter are such that compensation is payable in respect of the animals slaughtered.

in which the compensation falls to be brought into account in calculating the profits of the trade, or

in which it would (but for the election) fall to be so brought into account,

carries on the trade, and

keeps a production herd of the class to which the election relates.

central government,

a devolved authority,

a local authority, or

another public authority.

a person carrying on a trade (the “transferor”) transfers the whole or part of a production herd to another person (the “transferee”),

the transfer is not by way of sale or is by way of sale but for a price other than that which the animals sold would have fetched if sold in the open market, and

the control condition or herd basis benefit condition is met.

the transferor is a body of persons over which the transferee has control,

the transferee is a body of persons over which the transferor has control, or

both the transferor and transferee are bodies of persons and another person has control over both of them.

the transferor or transferee (or both) might (but for this section) have been expected to obtain a herd basis benefit as a result of the transfer or the transactions of which the transfer is one, and

the herd basis benefit is the sole or main benefit, or one of the main benefits, that the person in question might have been expected to obtain.

the obtaining of a right to make a herd basis election,

the herd basis rules applying or not applying, or

the herd basis rules having a greater or lesser effect.

the trade carried on by the transferor, and

any trade carried on by the transferee,

the animals kept for the purposes of the trade, and

the products of those animals,

expenditure incurred on the production or acquisition of the original master version of a film or sound recording, and

preliminary expenditure in relation to a film.

interest (as to which, see section 29), or

the incidental costs of obtaining finance (as to which, see sections 58 and 59).

can reasonably be said to have been incurred with a view to enabling a decision to be taken as to whether to make the film,

is payable before the first day of principal photography (if the decision is to make the film), and

is not repayable under a contract or other arrangement if the film is not made.

prohibits a deduction from being made, or

restricts the extent to which it is allowed,

in relation to a film, the original master negative, tape or disc, and

in relation to a sound recording, the original master audio tape or disc.

are treated for income tax purposes as receipts of a revenue nature, and

are brought into account in calculating the profits of the trade of the relevant period in which they are received.

sums received from the disposal of any interest or right in or over the original master version (including an interest or right created by the disposal), and

insurance, compensation or similar money derived from the original master version.

the trade consists of or includes the exploitation of the original master versions of films or sound recordings,

the original master versions do not constitute trading stock of the trade (within the meaning of section 174),

the person carrying on the trade incurs production or acquisition expenditure in, or before, the relevant period, and

no election under section 143 below or section 40D of F(No.2)A 1992 has effect in relation to the expenditure.

the amount of the expenditure which remains unallocated at the beginning of the period,

the amount of the expenditure incurred in the period,

the proportion which the estimated value of the original master version realised in the period (by way of income or otherwise) bears to the sum of the value so realised and the estimated remaining value at the end of the period, and

the need to bring the whole of the expenditure into account over the time during which the value of the original master version is expected to be realised.

under this section to any other relevant period,

under any other provision of this Chapter to the relevant period or any other relevant period,

under section 40B of F(No.2)A 1992 (corporation tax provision corresponding to this section) to any other relevant period, or

under section 41 of that Act (corporation tax provision corresponding to section 137 below) or 42 of that Act (corporation tax provision corresponding to sections 138 to 140 below) to the relevant period or any other relevant period.

under any other provision of this Chapter, or

under section 41 or 42 of F(No.2)A 1992,

the person carrying on the trade has incurred preliminary expenditure in connection with a film in, or before, the relevant period,

the certified master version condition is met (see subsection (2)), and

the film is genuinely intended for theatrical release.

if the film is completed, that the original master version of it is a certified master version, or

if the film is not completed, that it is reasonably likely that, if the film were completed, the original master version of it would be a certified master version.

it is allocated under this section to any other relevant period,

it is allocated under any other provision of this Chapter to the relevant period or any other relevant period,

it is allocated under section 41 of F(No.2)A 1992 to any other relevant period,

it is allocated under section 40B or 42 of that Act to the relevant period or any other relevant period, or

a deduction in respect of it has otherwise been made in calculating the profits of the trade for income or corporation tax purposes.

under section 135 above, or

under section 40B of F(No.2)A 1992,

under this section, or

under section 41 of F(No.2)A 1992,

the person carrying on the trade has incurred production or acquisition expenditure in respect of the original master version of a film in, or before, the relevant period,

the film was completed in, or before, that period,

the original master version is a certified master version, and

the film is genuinely intended for theatrical release.

under section 135 above, or

under section 40B of F(No.2)A 1992,

the person carrying on the trade has incurred production expenditure in respect of the original master version of a film in, or before, the relevant period,

the expenditure was incurred before 2nd July 2005 (see section 142 for timing rule),

the original master version is a certified master version,

the film is genuinely intended for theatrical release, and

the total production expenditure in respect of the original master version is £15 million or less (see section 141).

has not been paid at the time the film is completed, and

is not, at that time, the subject of an unconditional obligation to pay within 4 months after the date of completion,

under this section to any other relevant period,

under any other provision of this Chapter to the relevant period or any other relevant period,

under section 42 of F(No.2)A 1992 as applied by section 48(1) and (2) of F(No.2)A 1997 (corporation tax provision corresponding to this section) to any other relevant period, or

under section 40B or 41 of F(No.2)A 1992, or section 42 of that Act (but not as applied by section 48(1) and (2) of F(No.2)A 1997), to the relevant period or any other relevant period.

under section 135 above, or

under section 40B of F(No.2)A 1992,

the person carrying on the trade has incurred acquisition expenditure in respect of the original master version of a film in, or before, the relevant period,

the acquisition was a relevant acquisition (see subsection (2)),

the expenditure was incurred before 2nd July 2005 (see section 142 for timing rule),

the original master version is a certified master version,

the film is genuinely intended for theatrical release, and

the total production expenditure in respect of the original master version is £15 million or less (see section 141).

the acquisition is by the producer and the producer has not previously acquired the original master version of the film, or

the acquisition is directly from the producer and the original master version of the film has not previously been acquired directly from the producer,

under this section to any other relevant period,

under any other provision of this Chapter to the relevant period or any other relevant period,

under section 42 of F(No.2)A 1992 as applied by section 48(1) to (3) of F(No.2)A 1997 to any other relevant period, or

under section 40B or 41 of F(No.2)A 1992, or section 42 of that Act (but not as applied by section 48(1) to (3) of F(No.2)A 1997), to the relevant period or any other relevant period.

under section 135 above, or

under section 40B of F(No.2)A 1992,

whenever the expenditure is incurred, and

whether or not it is incurred by the person carrying on the trade.

has not been paid at the time the film is completed, and

is not, at that time, the subject of an unconditional obligation to pay within 4 months after the date of completion,

is incurred by a person under or as a result of a transaction entered into directly or indirectly between that person and a connected person, and

might have been expected to have been of a greater amount (“the arm’s length amount”) if the transaction had been between independent persons dealing at arm’s length,

the expenditure is on the provision of an original master version,

an unconditional obligation to pay an amount of the expenditure comes into being as a result of the giving of a certificate or any other event,

the giving of the certificate, or other event, occurs within the period of one month after the end of a relevant period, and

at or before the end of the relevant period, the original master version has become the property of, or is otherwise under the agreement attributed to, the person subject to the unconditional obligation to pay,

there is an unconditional obligation to pay an amount of expenditure on a date earlier than accords with normal commercial usage, and

the sole or main benefit which might (as a result) have been expected to be obtained is that the amount would be treated, under the general rule, as incurred at an earlier time,

the person incurs expenditure on the production or acquisition of an original master version of a film,

the original master version is a certified master version,

its value is expected to be realisable over a period of not less than two years, and

the film is genuinely intended for theatrical release.

incurred, or

to be incurred,

at the time given by section 131(5), or

if the expenditure is acquisition expenditure and the acquisition takes place after that time, at the time of the acquisition.

under any of sections 137 to 140 above, or

under section 41 or 42 of F(No.2)A 1992.

calculated by reference to the fair value of the securities, and

recognised in the person’s statement of recognised gains and losses or statement of changes in equity,

to an amount so far as deriving from or otherwise relating to an amount brought into account under that subsection in an earlier period of account, or

to an amount recognised for accounting purposes by way of correction of a fundamental error.

shares,

rights of unit holders in unit trust schemes to which TCGA 1992 applies as a result of section 99 of TCGA 1992, and

in the case of a company with no share capital, interests in the company possessed by members of the company,

a transaction falling within subsection (2) occurs in relation to securities (“the original holding”), and

a profit on the sale of the securities would be brought into account in calculating the profits of the trade.

it results in a new holding being treated as the same as the original holding as a result of sections 126 to 136 of TCGA 1992 (CGT roll-over relief in cases of conversion etc.), or

it is treated, as a result of section 134 of TCGA 1992 (compensation stock), as an exchange for a new holding which does not involve a disposal of the original holding,

receives consideration in addition to the new holding, or

becomes entitled to receive such consideration,

shares,

loan stocks or similar securities (whether secured or unsecured) of a government, a local or other public authority (in the United Kingdom or elsewhere) or a company,

rights of unit holders in unit trust schemes to which TCGA 1992 applies as a result of section 99 of TCGA 1992,

in the case of a company with no share capital, interests in the company possessed by members of the company,

quoted options to subscribe for shares which are treated as shares as a result of section 147 of TCGA 1992, and

earn-out rights which are assumed to be securities as a result of section 138A(3) of TCGA 1992.

the person carrying it on (“the trader”) exchanges a gilt-edged security for strips of the security, and

a profit on the sale of the security would be brought into account in calculating the profits of the trade.

strips of a gilt-edged security are consolidated into a single security by being exchanged by the person carrying on the trade (“the trader”) for the single security, and

a profit on the sale of any of the strips would be brought into account in calculating the profits of the trade.

is a gilt-edged security for the purposes of TCGA 1992 (see Schedule 9 to that Act), or

will be such a security on the making of an order under paragraph 1 of Schedule 9 to TCGA 1992, if the making of the order is anticipated in the prospectus under which the security is issued.

a payment corresponding to a payment of interest or principal remaining to be made under the gilt-edged security, or

two or more payments each corresponding to a payment to be so made.

represent the right to, or

secure,

represents the right to, or

secures,

make different provision for different cases, and

contain such incidental, supplemental, consequential and transitional provision as the Treasury consider appropriate.

is authorised for the purposes of FISMA 2000 (see section 31(1) of that Act), but

is not an investment company (within the meaning of section 130 of ICTA).

a payment required under rules made under section 136(2) of FISMA 2000,

a levy imposed under the Financial Services Compensation Scheme,

a payment required under rules made under section 234 of FISMA 2000,

a payment required under the rules referred to in paragraph 14(1) of Schedule 17 to FISMA 2000 (“scheme rules”) in accordance with paragraph 15(1) of that Schedule, or

a payment required in accordance with the standard terms fixed under paragraph 18 of that Schedule (other than an award which is not an award of costs under rules made under section 230 of FISMA 2000 or under provision relating to costs contained in those standard terms).

any provision made by virtue of section 136(7) or 214(1)(e) of FISMA 2000, or

any provision made by scheme rules for fees to be refunded in specified circumstances.

the woodlands are subsequently sold in the course of the trade, and

any of the trees or underwood are still growing on the land at the time of the sale,

which the person is entitled to receive under a mineral lease or agreement, and

which are not chargeable to tax under Chapter 8 of Part 3 (rent receivable in connection with a UK section 12(4) concern) because of the priority rule in section 261.

lease premiums within section 277,

sums within section 279 (sums payable instead of rent),

sums within section 280 (sums payable for surrender of a lease),

sums within section 281 (sums payable for variation or waiver of term of lease),

consideration for the assignment of a lease within section 282 (lease granted at an undervalue), and

amounts received on the sale of an estate or interest in land within section 284 (sales with right to re-conveyance) or section 285 (sale and leaseback transactions).

the person carrying on the trade makes a claim under section 301 or 302, and

as a result of the claim a repayment of tax is made to that person,