ITTOIA definition
Examples of ITTOIA in a sentence
Dividends and other income distributions paid or deemed to be paid to UK resident individual shareholders in respect of Shares in the Fund which are deemed to be ‘bond funds’ may be taxed as ‘interest’ as opposed to ‘dividends’ under Chapter 2 of Part 4 of the Income Tax (Trading and Other Income) ▇▇▇ ▇▇▇▇ (ITTOIA 2005) and the Dividend Allowance would not be relevant .
Dividends and other income distributions paid or deemed to be paid to UK resident individual shareholders in respect of Shares in the Fund which are deemed to be ‘bond funds’ may be taxed as ‘interest’ as opposed to ‘dividends’ under Chapter 2 of Part 4 of the Income Tax (Trading and Other Income) ▇▇▇ ▇▇▇▇ (ITTOIA 2005) and the Dividend Allowance would not be relevant.
Any bonus or interest payable under a savings contract qualifies for exemption for tax purposes in accordance with the terms of section 702 of ITTOIA 2005 and section 271(4) of the Taxation of Chargeable Gains Act 1992.
If sections 502B – G ICTA 1988 or sections 148A – F ITTOIA 2005 are applied where the long funding lease is claimed to be on trading account then please submit the case to CTIAA.
Whilst HMRC does not agree that the type of arrangement referred to in BLM64020 – insert hyperlink had the effect claimed, new legislation at section 60A CTA 2009 and section 55B ITTOIA 2005 was introduced to put the matter beyond doubt.
Wider anti-avoidance legislation (at sections 502GC ICTA 1988 and sections 148FC ITTOIA 2005) was also applicable where the main purpose, or one of the main purposes, of the arrangements of which the long funding lease forms a part, was to create a tax loss where there was no commercial loss.
For expenditure incurred on plant or machinery after 9 October 2007, or where a company claims a deduction for plant or machinery forming part of its trading stock after that date, sections 502GA ICTA 1988 (section 148FA ITTOIA 2005) then applied to prevent sections 502B-G ICTA 1988 (sections 148A–F ITTOIA 2005) from applying.
If sections 502B–G (or ITTOIA equivalent) had already applied, and a deduction on trading account arose subsequently, then any amounts to be taken into account in calculating the profits or losses of the company are subject to such adjustments as are just and reasonable.
HMRC take the view that sections 502B – G ICTA 1988 (and sections 148A – F ITTOIA 2005) only applied where the leased plant or machinery is held on capital account.
The difference between the tax loss and the commercial loss has to be attributable wholly or partly to the application of sections 502B–G ICTA 1988 or sections 148A–F ITTOIA 2005.