Section 26 — Income Tax Act 2007: Tax reductions

Tax reductions 26 1 If the taxpayer is an individual, the provisions referred to at Step 6 of the calculation in section 23 are—

a the following— Chapter 3 of Part 3 of this Act ... (tax reductions for married couples and civil partners), Chapter 3A of Part 3 of this Act (transferable tax allowance for married couples and civil partners), Chapter 1 of Part 5 (EIS relief), Chapter 1 of Part 5A (SEIS relief), Chapter 1 of Part 5B (relief for social investments), Chapter 2 of Part 6 ( VCT relief), Chapter 1 of Part 7 (community investment tax relief), section 399B (relief for non-deductible interest on loan to invest in partnership with residential property business), section 414A(3) (gift aid where devolved basic rate is above basic rate), section 453 (qualifying maintenance payments), . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 461 (spreading of patent royalty receipts), section 353(1A) of ICTA (relief for interest on loan to buy life annuity), section 192A of FA 2004 (relief at source: additional relief), section 274A of ITTOIA 2005 (property business: relief for non-deductible costs of a dwelling-related loan), section 535 of ITTOIA 2005 (top slicing relief), and section 539 of ITTOIA 2005 (relief for deficiencies),

and b the following— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . section 401 of ITTOIA 2005 (relief: distribution repaying shares or security issued in earlier distribution ), ... sections 677 and 678 of ITTOIA 2005 (relief where foreign estates have borne UK income tax). sections 2 and 6 of TIOPA 2010 (double taxation relief: relief by agreement), and section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax where no double taxation arrangements).

2 In any other case, the provisions referred to at Step 6 of the calculation in section 23 are—

a the provisions listed in subsection (1)(b), aa section 274B of ITTOIA 2005 (trusts with accumulated or discretionary income derived from property business: relief for non-deductible costs of dwelling-related loans),

and b section 26 of FA 2005 (trusts with vulnerable beneficiary: income tax relief).