Section EW 58 — Income Tax Act 2007: Financial arrangements, income, and expenditure relevant to criteria

EW 58 Financial arrangements, income, and expenditure relevant to criteria Inclusions in and exclusions from thresholds (1) The calculations required by section EW 57(1) to (3) are done for every financial arrangement to which the person is a party or, as the relevant subsection requires, to income and expenditure under such an arrangement, whether the financial arrangements rules or the old financial arrangements rules apply to the arrangement. Two qualifications are— (a) the calculations include an arrangement, or income and expenditure, to which subsection (2) or (3) applies only to the extent of the person’s interest in it, as described in each subsection; and (b) the calculations exclude the value of an arrangement, and income and expenditure, in which the person has the interest described in subsection (4) or (5). Natural person who is partner [Repealed] (2) [Repealed] Beneficiary of bare trust (3) This subsection applies when the trustee of a bare trust is a party to a financial arrangement. A person who is a beneficiary of the bare trust— (a) is treated as a party to the arrangement to the extent of the beneficiary’s share of the beneficial interest in the arrangement; and (b) is treated as deriving income or incurring expenditure under the arrangement to the extent of the beneficiary’s share of the beneficial interest in the arrangement. Beneficiary of trust other than bare trust (4) This subsection applies when a person is a beneficiary of a trust, other than a bare trust, whose trustee is a party to a financial arrangement. The following are excluded from the calculations required by section EW 57(1) to (3) : (a) the value of the arrangement, if it produces trustee income or beneficiary income under the trust rules; and (b) income under the arrangement that is trustee income or beneficiary income under the trust rules. Trustee (5) This subsection applies when a person is a party to a financial arrangement as a trustee. The following are excluded from the calculations required by section EW 57(1) to (3) : (a) the value of the arrangement, if it produces trustee income or beneficiary income under the trust rules; and (b) income under the arrangement that is trustee income or beneficiary income under the trust rules; and (c) the value of the arrangement, if expenditure is incurred under it; and (d) expenditure incurred under the arrangement. Defined in this Act: beneficiary income , financial arrangement , financial arrangements rules , income , old financial arrangements rules , return of income , trust rules , trustee , trustee income , Compare: 2004 No 35 s EW 58 Section EW 58(1): amended, on 1 April 2009, by section 12(1) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section EW 58(2) heading: repealed, on 1 April 2008, by section 13(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2). Section EW 58(2): repealed, on 1 April 2008, by section 13(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2). Section EW 58(3) heading: substituted, on 1 April 2009, by section 12(2)(a) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section EW 58(3): amended, on 1 April 2009, by section 12(2)(b) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section EW 58(4) heading: substituted, on 1 April 2009, by section 12(3)(a) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section EW 58(4): amended, on 1 April 2009, by section 12(3)(b) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section EW 58(5) heading: substituted, on 1 April 2009, by section 12(4)(a) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section EW 58(5): amended, on 1 April 2009, by section 12(4)(b) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).