Income and Corporation Taxes Act 1988

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Income and Corporation Taxes Act 1988 (c. 1)

1988 c. 1

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Income and Corporation Taxes Act 1988 (c. 1)

1988 Chapter c. 1

ARRANGEMENT OF PARTS

PART I—
The Charge to Tax.

PART II—
Provisions Relating to the Schedule A Charge and the Associated Schedule D Charges.

PART III—
Provisions Relating to the Schedule C Charge and General Provisions about Government Securities.

PART IV—
Provisions Relating to the Schedule D Charge.
Chapter I—
Supplementary Charging Provisions.

Chapter II—
Income Tax: Basis of Assessment etc.

Chapter III—
Corporation Tax: Basis of Assessment etc.

Chapter IV—
Provisions Supplementary to Chapters II and III.

Chapter V—
Computational Provisions.

Chapter VI—
Discontinuance, and Change of Basis of Computation.

Chapter VII—
Partnerships and Successions.

Chapter VIII—
Miscellaneous and Supplemental.

PART V—
Provisions Relating to the Schedule E Charge.
Chapter I—
Supplementary Charging Provisions of General Application.

Chapter II—
Supplementary Charging Provisions Applicable to Directors and Higher-Paid Employees and Office Holders.

Chapter III—
Profit-Related Pay.

Chapter IV—
Other Exemptions and Reliefs.

Chapter V—
Assessment, Collection, Recovery and Appeals.

PART VI—
Company Distributions, Tax Credits etc.
Chapter I—
Taxation of Company Distributions.

Chapter II—
Matters which are Distributions for the Purposes of the Corporation Tax Acts.

Chapter III—
Matters which are not Distributions for the Purposes of the Corporation Tax Acts.

Chapter IV—
Tax Credits.

Chapter V—
Advance Corporation Tax and Franked Investment Income.

Chapter VI—
Miscellaneous and Supplemental.

PART VII—
General Provisions Relating to Taxation of Income of Individuals.
Chapter I—
Personal Reliefs.

Chapter II—
Taxation of Income of Spouses.

Chapter III—
Relief for Investment in Corporate Trades: The Business Expansion Scheme.

Chapter IV—
Special Provisions.

Chapter V—
Residence of Individuals.

PART VIII—
Taxation of Income and Chargeable Gains of Companies.

PART IX—
Annual Payments and Interest.

PART X—
Loss Relief and Group Relief.
Chapter I—
Loss Relief: Income Tax.

Chapter II—
Loss Relief: Corporation Tax.

Chapter III—
Loss Relief: Miscellaneous Provisions.

Chapter IV—
Group Relief.

PART XI—
Close Companies.
Chapter I—
Interpretative Provisions.

Chapter II—
Charges to Tax in Connection with Loans.

Chapter III—
Apportionment of Undistributed Income etc.

PART XII—
Special Classes of Companies and Businesses.
Chapter I—
Insurance Companies, Underwriters and Capital Redemption Business.

Chapter II—
Friendly Societies, Trade Unions and Employers' Associations.

Chapter III—
Unit Trust Schemes, Dealers in Securities etc.

Chapter IV—
Building Societies, Banks, Savings Banks, Industrial and Provident Societies and Others.

Chapter V—
Petroleum Extraction Activities.

Chapter VI—
Miscellaneous Businesses and Bodies.

PART XIII—
Miscellaneous Special Provisions.
Chapter I—
Intellectual Property.

Chapter II—
Life Policies, Life Annuities and Capital Redemption Policies.

Chapter III—
Entertainers and Sportsmen.

Chapter IV—
Sub-Contractors in the Construction Industry.

Chapter V—
Schemes for Rationalizing Industry.

Chapter VI—
Other Provisions.

PART XIV—
Pension Schemes, Social Security Benefits, Life Annuities etc.
Chapter I—
Retirement Benefit Schemes.

Chapter II—
Other Pension Funds and Social Security Benefits and Contributions.

Chapter III—
Retirement Annuities.

Chapter IV—
Personal Pension Schemes.

Chapter V—
Purchased Life Annuities.

Chapter VI—
Miscellaneous.

PART XV—
Settlements.
Chapter I—
Dispositions for Short Periods.

Chapter II—
Settlements on Children.

Chapter III—
Revocable Settlements etc.

Chapter IV—
Liability to Higher Rate and Additional Rate Tax.

Chapter V—
Maintenance Funds for Historic Buildings.

PART XVI—
Estates of Deceased Persons in Course of Administration.

PART XVII—
Tax Avoidance.
Chapter I—
Cancellation of Tax Advantages From Certain Transactions in Securities.

Chapter II—
Transfers of Securities.

Chapter III—
Transfer of Assets Abroad.

Chapter IV—
Controlled Foreign Companies.

Chapter V—
Offshore Funds.

Chapter VI—
Miscellaneous.

PART XVIII—
Double Taxation Relief.
Chapter I—
The Principal Reliefs.

Chapter II—
Rules Governing Relief by Way of Credit.

Chapter III—
Miscellaneous Provisions.

Part XIX—
Supplemental.


ARRANGEMENT OF SECTIONS

Part I
The Charge to Tax
Income tax
1	The charge to income tax.
2	Fractions of a pound, and yearly assessments.
3	Certain income charged at basic rate.
4	Construction of references in Income Tax Acts to deduction of tax.
5	Date for payment.

Corporation tax
6	The charge to corporation tax and exclusion of income tax and capital gains tax.
7	Treatment of certain payments and repayment of income tax.
8	General scheme of corporation tax.
9	Computation of income: application of income tax principles.
10	Time for payment of tax.
11	Companies not resident in United Kingdom.
12	Basis of, and periods for, assessment.

Small companies' rate
13	Small companies' relief.

Advance corporation tax
14	Advance corporation tax and qualifying distributions.

The six Schedules
15	Schedule A.
16	Schedule B.
17	Schedule C.
18	Schedule D.
19	Schedule E.
20	Schedule F.

Part II
Provisions Relating to the Schedule A Charge and the Associated Schedule D Charges
General
21	Persons chargeable.
22	Assessments.
23	Collection from lessees and agents.
24	Construction of Part II.

Deductions and other allowances
25	Deductions from rent: general rules.
26	Deductions from rent: land managed as one estate.
27	Deductions from rent: maintenance funds for historic buildings.
28	Deductions from receipts other than rent.
29	Sporting rights.
30	Expenditure on making sea walls.
31	Provisions supplementary to sections 25 to 30.
32	Capital allowances for machinery and plant used in estate management.
33	Agricultural land: allowance for excess expenditure on maintenance.

Premiums, leases at undervalue etc
34	Treatment of premiums etc. as rent or Schedule D profits.
35	Schedule D charge on assignment of lease granted at an undervalue.
36	Schedule D charge on sale of land with right to reconveyance.
37	Premiums paid etc: deductions from premiums and rent received.
38	Rules for ascertaining duration of leases.
39	Saving for pre-1963 leases, and special relief for individuals.

Supplemental: Schedules A and D
40	Tax treatment of receipts and outgoings on sale of land.
41	Relief for rent etc. not paid.
42	Appeals against determinations under sections 34 to 36.
43	Non-residents.

Part III
Provisions Relating to the Schedule C Charge and General Provisions about Government Securities
General
44	Income tax: mode of charge.
45	Interpretation of Part III.

Government securities: exemptions from tax
46	Savings certificates and tax reserve certificates.
47	United Kingdom government securities held by non-residents.
48	Securities of foreign states.
49	Stock and dividends in name of Treasury etc.

Government securities: interest payable without deduction of tax
50	United Kingdom securities: Treasury directions for payment without deduction of tax.
51	Treasury directions as respects Northern Ireland securities.
52	Taxation of interest on converted government securities and interest which becomes subject to deduction.

Part IV
Provisions Relating to the Schedule D Charge
Chapter I
Supplementary Charging Provisions
53	Farming and other commercial occupation of land (except woodlands).
54	Woodlands managed on a commercial basis.
55	Mines, quarries and other concerns.
56	Transactions in deposits with and without certificates or in debts.
57	Deep discount securities.
58	Foreign pensions.
59	Persons chargeable.

Chapter II
Income Tax: Basis of Assessment etc.
Cases I and II
60	Assessment on preceding year basis.
61	Special basis at commencement of trade, profession or vocation.
62	Special basis for early years following commencement.
63	Special basis on discontinuance.

Cases III, IV and V
64	Case III assessments: general.
65	Cases IV and V assessments: general.
66	Special rules for fresh income.
67	Special rules where source of income disposed of or yield ceases.
68	Special rules where property etc. situated in Republic of Ireland.

Case VI
69	Assessment on current year basis unless otherwise directed.

Chapter III
Corporation Tax: Basis of Assessment etc.
70	Basis of assessment etc.

Chapter IV
Provisions Supplementary to Chapters II and III
71	Computation of income tax where no profits in year of assessment.
72	Apportionments etc. for purposes of Cases I, II and VI.
73	Single assessments for purposes of Cases III, IV and V.

Chapter V
Computational Provisions
Deductions
74	General rules as to deductions not allowable.
75	Expenses of management: investment companies.
76	Expenses of management: insurance companies.
77	Incidental costs of obtaining loan finance.
78	Discounted bills of exchange.
79	Contributions to local enterprise agencies.
80	Expenses connected with foreign trades etc.
81	Travel between trades etc.
82	Interest paid to non-residents.
83	Patent fees etc. and expenses.
84	Payments for technical education.
85	Payments to trustees of approved profit sharing schemes.
86	Employees seconded to charities and educational establishments.
87	Taxable premiums etc.
88	Payments to Export Credit Guarantee Department.
89	Debts proving irrecoverable after event treated as discontinuance.
90	Additional payments to redundant employees.
91	Cemeteries.

Treatment of regional development and other grants and debts released etc.
92	Regional development grants.
93	Other grants under Industrial Development Act 1982 etc.
94	Debts deducted and subsequently released.
95	Taxation of dealer's receipts on purchase by company of own shares.

Special provisions
96	Farming and market gardening: relief for fluctuating profits.
97	Treatment of farm animals etc.
98	Tied premises.
99	Dealers in land.

Chapter VI
Discontinuance, and Change of Basis of Computation
Valuation of trading stock etc.
100	Valuation of trading stock at discontinuance of trade.
101	Valuation of work in progress at discontinuance of profession or vocation.
102	Provisions supplementary to sections 100 and 101.

Case VI charges on receipts
103	Receipts after discontinuance: earnings basis charge and related charge affecting conventional basis.
104	Conventional basis: general charge on receipts after discontinuance or change of basis.
105	Allowable deductions.
106	Application of charges where rights to payments transferred.

Reliefs
107	Treatment of receipts as earned income.
108	Election for carry-back.
109	Charge under section 104: relief for individuals born before 6th April 1917.

Supplemental
110

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