Tax Law Rewrite

Tax Law Rewrite Project

The aim of the Tax Law Rewrite Project is to rewrite the UK's primary direct tax legislation to make it clearer and easier to use, without changing the law.

The project's work is overseen by two outside Committees - a Consultative Committee and a Steering Committee. More information on the Committees is available in the project's Tax Law Rewrite: Report and Plans, 2008-09 document.

To date the project has delivered the following:

  • The Capital Allowances Act 2001 (effective from April 2001)
  • The Income Tax (Earnings and Pensions) Act 2003 (effective from April 2003)
  • The Income Tax (Pay as You Earn) Regulations 2003 (effective from April 2004)
  • The Income Tax (Trading and Other Income) Act 2005 (effective from April 2005)
  • The Income Tax Act 2007 (effective from April 2007)
  • The Corporation Tax Act 2009

All the project's publications, including the minutes of the Committee meetings, are available on the Tax Law Rewrite pages.

Contents

Bill 7 (International and other provisions)

The Tax Law Rewrite project’s seventh Bill, the Taxation (International and Other Provisions)Bill was introduced into Parliament on 19 November and has been published today. Please use the link below to access a copy of the Bill with origins. A copy of the Bill without origins and explanatory notes is available on the Parliamentary website.

We have published, for public consultation a draft clause under Paper CC/SC (09) 20 for inclusion in Chapter 2 of Part 2 of Bill 7. Comments on the draft clause are invited by 11 December 2009.

We have published a response document (PDF 15K) which contains a summary of the comments received on paper CC/SC(09) 14: Repeal of section 59(3) of ICTA. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 103K) summarising the comments that we received on the Draft Bill and showing how we dealt with them. There is an annex to the Response Document setting out our comments on responses to papers published after the publication of the draft Bill.

We have recently published a revised version of the Taxation (International and Other Provisions) Bill (Bill 7). This takes account of comments received during the consultation period for the draft Bill and of changes necessitated by FA 2009. Work will continue on the Bill and Schedules to prepare for introduction in Parliament in late November.

To assist users to identify changes a 'clean' copy and an annotated version of the Bill have been produced. The annotated version (separate links to the clauses and Schedules) shows where changes or additions have been made.

The annotated version of the Schedules does not include the Repeals and Index Schedules.

We will shortly publish a response document for the Bill.

We have published, for public consultation draft clauses under Paper CC/SC (09) 14 (PDF 21K) on the repeal of section 59(3) ICTA. Comments on the draft clauses are invited 22 September. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (09) 13 (PDF 32K) on leasing arrangements: finance leases and loans. Comments on the draft clauses are invited by the end of July preferably or 27 August at the latest. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (09) 12 (PDF 23K) on alternative finance arrangements. Comments on the draft clauses are invited by 14 August 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

The Tax Law Rewrite project has published a draft of the Taxation (International and other provisions) Bill (Bill 7) for a final round of public consultation. The consultation period ends on 29 May 2009.

We have published a response document (PDF 68K) which contains a summary of the comments received on paper CC/SC(08) 24: Transfer pricing . The document also shows how we have dealt with the comments received.

We have published, for public consultation draft supplementary clauses under Paper CC/SC (08) 43 (PDF 38K) on Sale and lease-back. Comments on the draft clauses are invited by 16 January 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published a response document (PDF 66K) which contains a summary of the comments received on paper CC/SC(08)12: UK representatives of non-UK residents. The document also shows how we have dealt with the comments received.

We have published, for public consultation draft supplementary clauses under Paper CC/SC (08) 42 (PDF 35K) on Factoring of income. Comments on the draft clauses are invited by 2 January 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 24 (PDF 32k) on transfer pricing and advance pricing agreements. Comments on the draft clauses are invited by 19 September 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation a draft clause and schedule under Paper CC/SC (08) 12 (PDF 38K) on UK representatives of non-UK residents. Comments on the draft clause and schedule are invited by 11 July 2008. Please select the relevant link below for the draft clause and schedule, and the explanatory notes.

Bill 6 (Corporation tax)

The Tax Law Rewrite project’s sixth Bill, the second Corporation Tax Bill was introduced into Parliament on 19 November and has been published today. Please use the link below to access a copy of the Bill with origins. A copy of the Bill without origins and explanatory notes is available on the Parliamentary website. The Bill is expected to have effect for corporation tax accounting periods ending after 31 March 2010.

We have published, for public consultation notice of the withdrawal of a change under Paper CC/SC (09) 22 on charitable companies (PDF 22K) . Comments on the withdrawal of the change are invited as soon as possible but by 12 November 2009 at the latest.

We have published, for public consultation a revised clause under Paper CC/SC (09) 21 (PDF 168K) on distributions. Comments on the draft clause are invited as soon as possible but by 12 November 2009 at the latest.

We have published a response document (PDF 135K) which contains a summary of the comments received on paper CC/SC(09) 08:Investment trusts. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 534K) summarising the comments that we received on the Draft Bill and showing how we dealt with them.There is an annex to the Response Document setting out our comments on responses to papers published after the publication of the draft Bill.

We have recently published a revised version of the second Corporation Tax Bill (Bill 6). This takes account of comments received during the consultation period for the draft Bill and of changes necessitated by FA 2009. Work will continue on the Bill and Schedules to prepare for introduction in Parliament in late November.

To assist users to identify changes a 'clean' copy and an annotated version of the Bill have been produced. The annotated version (separate links to the clauses and Schedules) shows where changes or additions have been made.

The annotated version of the Schedules does not include the Repeals and Index Schedules.

We will shortly publish a response document for the Bill.

We have published a response document (PDF 24K) which contains a summary of the comments received on paper CC/SC(09) 09: Industrial and Provident Societies and Co-operatives. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 15K) which contains a summary of the comments received on paper CC/SC(09) 06: Co-operative housing associations and self-build societies. The document also shows how we have dealt with the comments received.

We have published, for public consultation draft clauses under Paper CC/SC (09) 09 (PDF 26K) on industrial and provident societies and co-operatives. Comments on the draft clauses are invited by 7 August 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (09) 08 (PDF 32K) on investment trusts. Comments on the draft clauses are invited by 31 July 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (09) 07 (PDF 37K) on charitable donations relief. Comments on the draft clauses are invited by 24 July 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (09) 06 (PDF 25K) on Co-operative housing associations and self-builds. Comments on the draft clauses are invited by 3 July 2009. Please select the relevant link below for the draft clauses and the explanatory notes

The Tax Law Rewrite project has published a draft of the second Corporation Tax Bill (Bill 6) for a final round of public consultation. The consultation period ends on 29 May 2009.

We have published a response document (PDF 54K) which contains a summary of the comments received on papers CC/SC(08) 41:Leasing plant or machinery:the sales of lessors Chapters, paper CC/SC (08) 46: Leasing plant or machinery:tax avoidance, and paper CC/SC (08) 54: Long funding leases of plant or machinery. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 48K) which contains a summary of the comments received on papers CC/SC(08) 28: Companies in liquidation, and Paper CC/SC (08): Loss relief - supplementary clauses. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 36K) which contains a summary of the comments received on Paper CC/SC(08) 32:Securitisation companies, and Paper CC/SC (08) 34: Trade unions. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 57K) which contains a summary of the comments received on paper CC/SC(08) 35: Oil taxation. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 60K) which contains a summary of the comments received on paper CC/SC(08) 20: Manufactured payments and repos. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 58K) which contains a summary of the comments received on paper CC/SC (08) 22: Changes in company ownership and recovery of corporation tax. This document shows how we have dealt with the comments received.

We have published a response document (PDF 23K) which contains a summary of the comments received on papers CC/SC (08) 11 and 23: Company Distributions. This document shows how we have dealt with the comments received.

We have published a paper CC/SC (09) 01 (PDF 20K), providing further information on the matters covered in Paper CC/SC (08) 48 (PDF 32K): Tax avoidance: Companies in partnership.

We have published a response document (PDF 36K) which contains a summary of the comments received on papers CC/SC (08) 18: Surrender of tax refund within group, and CC/SC (08) 19: Use of different accounting practices within a group of companies. The document also shows how we have dealt with the comments received.'

We have published, for public consultation draft clauses under Paper CC/SC (08) 54 (PDF 36K) on Long funding leases of plant or machinery. Comments on the draft clauses are invited by 30 January 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published a response document which contains a summary of the comments received on paper CC/SC(08) 15: UK REITS (PDF 169K). The document also shows how we have dealt with the comments received.

We have published, for public consultation draft clauses under Paper CC/SC (08) 48 (PDF 32K) on Tax avoidance: companies in partnership. Comments on the draft clauses are invited by 16 January 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 46 (PDF 36K) on Leasing plant or machinery: tax avoidance. Comments on the draft clauses are invited by 16 January 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published a response document (PDF 35K) which contains a summary of the comments received on paper CC/SC(08)14: Charges on income. The document also shows how we have dealt with the comments received.

We have published, for public consultation draft clauses under Paper CC/SC (08) 41 (PDF 37K) on Leasing plant or machinery: the sales of lessors Chapters. Comments on the draft clauses are invited by 9 January 2009. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published a response document (PDF 42K) which contains a summary of the comments received on paper CC/SC(08)10: Permanent establishments and UK representatives. The document also shows how we have dealt with the comments received.

We have published, for public consultation draft supplementary clauses under Paper CC/SC (08) 36 (PDF 27K) on Authorised Investment Funds. Comments on the draft clauses are invited by 5 December 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft supplementary clauses under Paper CC/SC (08) 38 (PDF 36K) on Close companies. Comments on the draft clauses are invited by 12 December 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft supplementary clauses under Paper CC/SC (08) 32 (PDF 26K) on Securitisation companies. Comments on the draft clauses are invited by 5 December 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft supplementary clauses under Paper CC/SC (08) 34 (PDF 32K) on Trade unions. Comments on the draft clauses are invited by 5 December 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation, draft supplementary clauses under Paper CC/SC (08) 33 (PDF 34K) on Loss relief. Comments on the draft clauses are invited by 28 November 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 28 (PDF 25K) on companies in liquidation or administration. Comments on the draft clauses are invited by 14 November 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published a response document (PDF 49K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (08) 06. The document also shows how we have dealt with the comments received.

We have published, for public consultation draft clauses under Paper CC/SC (08) 35 (PDF 21K) on Oil Tax. Comments on the draft clauses are invited by 31 October 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published a response document (PDF 43K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (08) 01. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 59K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (08) 03. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 36K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (08) 02. The document also shows how we have dealt with the comments received.

We have published, for public consultation draft clauses under Paper CC/SC (08) 23 (PDF 37K) on Distributions. Comments on the draft clauses are invited by 19 September 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 22 (PDF 32K) on changes in company ownership and recovery of corporation tax. Comments on the draft clauses are invited by 19 September 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published a response document (PDF 50K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (08) 04. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 110K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (07) 43. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 72K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (07) 38. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 52K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (07) 37. The document also shows how we have dealt with the comments received.

We have published, for public consultation draft clauses under Paper CC/SC (08) 20 (PDF 30K) on manufactured payments and repos. Comments on the draft clauses are invited by 29 August 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 19 (PDF 26K) on the use of different accounting practices within a group of companies. Comments on the draft clauses are invited by 29 August 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 18 (PDF 26K) on Surrender of tax refunds within groups. Comments on the draft clauses are invited by 29 August 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 15 (PDF 35K) on UK REITS. Comments on the draft clauses are invited by 23 July 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 14 (PDF 27K) on Charges on Income. Comments on the draft clauses are invited by 18 July 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published a response document (PDF 42K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (07) 42. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 63K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (07) 40 on company reconstructions. The document also shows how we have dealt with the comments received.

We have published, for public consultation draft clauses under Paper CC/SC (08) 10 (PDF 34K) on Permanent establishments and UK representatives. Comments on the draft clauses are invited by 27 June 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 11 (PDF 33K) on Distributions. Comments on the draft clauses are invited by 27 June 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published a response document (PDF 74K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (07) 27. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 37K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (07) 29. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 33K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (07) 30. The document also shows how we have dealt with the comments received.

We have published a response document (PDF 38K) which contains a summary of the comments received on the draft clauses published with Paper CC/SC (07) 28. The document also shows how we have dealt with the comments received.

We have published, for public consultation draft clauses under Paper CC/SC (08) 06 on Community amateur sports clubs (PDF 28K) . Comments on the draft clauses are invited by 9 May 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 04 on Relief against income for losses on the disposal of shares (PDF 39K) Comments on the draft clauses are invited by 18 April 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 03 on Small Companies' Relief (PDF 40K). Comments on the draft clauses are invited by 18 April 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 02 on Partnership Losses (PDF 26K). Comments on the draft clauses are invited by 28 March 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (08) 01 on Tax Arbitrage (PDF 35K). Comments on the draft clauses are invited by 31 March 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

Change note on change 619 (PDF 22K)
The Tax Law Rewrite project published draft clauses and explanatory notes on charitable companies on 7 November for public consultation (paper SC/CC (07) 43). The change note on change 619 was not available for publication at that time. The draft change note published today covers only the impact of change 619 on the charitable companies legislation. We expect that this change will affect other clauses in the Bill. The change note will therefore be developed further as clauses are released for consultation.

We have published, for public consultation draft clauses under Paper CC/SC (07) 43 (PDF 40K) on charitable companies. Comments on the draft clauses are invited by 8 February 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

One change note (Change 619), relevant to paper SC/CC (07) 43, is still being developed and will be available shortly.

We have published, for public consultation draft clauses under Paper CC/SC (07) 42 (PDF 42K) on community investment tax relief. Comments on the draft clauses are invited by 8 February 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (07) 40 (PDF 29KB) on company reconstructions without change of ownership. Comments on the draft clauses are invited by 8 February 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (07) 38 on Loss relief. Comments on the draft clauses are invited by 8 February 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (07) 37 (PDF ) on Miscellaneous rules. Comments on the draft clauses are invited by 8 February 2008. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (07) 30 (PDF 28K) on Corporate Beneficiaries under Trusts. Comments on the draft clauses are invited by 14 December 2007. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (07) 29 (PDF 38K) on Transactions in Land. Comments on the draft clauses are invited by 14 December 2007. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (07) 28 (PDF 38K) on Transactions in Securities. Comments on the draft clauses are invited by 14 December 2007. Please select the relevant link below for the draft clauses and the explanatory notes.

We have published, for public consultation draft clauses under Paper CC/SC (07) 27 on Group Relief (PDF 32K). Comments on the draft clauses are invited by 14 December 2007. Please select the relevant link for the draft clauses and the explanatory notes.

The Corporation Tax Act 2009

The first Corporation Tax Bill received Royal Assent on 26 March 2009 and takes effect from 1 April 2009.

The Act covers:

  • the basic corporation tax provisions including the charge to tax, accounting periods and provisions relating to company residence
  • provisions relating to trading and property income and income from other sources
  • special provisions for companies affecting the computation of income, such as those for loan relationships, derivative contracts and intangible fixed assets
  • provisions governing particular types of expenditure, for example, expenditure on research and development and on film production

The Act, the Explanatory notes and Tables of Origins and Destinations have been published on the OPSI website. You can also access these by selecting the relevant links in the Rewritten Legislation page.

Correction of missed consequential amendments and errors identified in CTA 2009

A Statutory Instrument has been made under the powers contained in sections 1323 and 1324 of CTA 2009. It makes consequential amendments missed in CTA 2009 and corrects errors in CTA 2009 affecting that and other Acts. With the exception of the amendments to paragraph 71(1)(f) of Schedule 2 to CTA 2009 and the related amendment to Part 2 of Schedule 3 to that Act, all the amendments made by this instrument have effect from 1 April 2009.

Please see:

Income Tax Act 2007 (ITA)

The Income Tax Act 2007, also known as ITA, received Royal Assent on 20 March 2007 and takes effect from 6 April 2007.

ITA covers:

  • basic provisions about the charge to income tax, income tax rates, the calculation of income tax liability, and personal reliefs;
  • various specific reliefs, including relief for losses, the enterprise investment scheme, venture capital trusts, community investment tax relief, interest paid, gift aid and gifts of assets to charities;
  • specific rules about trusts, deduction of tax at source, manufactured payments and repos, the accrued income scheme and tax avoidance; and
  • general income tax definitions.

The Act, the Explanatory notes and the Table of Origins and Destinations have been published on the OPSI website. You can also access these by selecting the relevant links in the Rewritten Legislation page.

Correction of missed consequential amendments and errors identified in ITA 2007

Five Statutory Instruments have been made under the powers contained in sections 1028 and 1029 of ITA 2007. They make consequential amendments missed in ITA 2007 and correct errors in ITA 2007 affecting that and other Acts. All the amendments made by these instruments have effect from 6 April 2007.

Please see:

Recent additions

Some of these links may take you to documents in PDF format. To view a PDF document you must have Adobe Reader installed on your computer.

Rewritten legislation

Rewritten legislation produced by the Project to date are:

Other information

Comments or questions to

Jackie Bartlett