{
  "url": "https://openlegislation.uk/finance-act-2006/schedule-26/part-3",
  "json_url": "https://openlegislation.uk/finance-act-2006/schedule-26/part-3.json",
  "legislation": "ukpga/2006/25",
  "legislation_title": "Finance Act 2006",
  "legislation_url": "https://openlegislation.uk/finance-act-2006",
  "path": "schedule/26/part/3",
  "kind": "part",
  "number": "3",
  "heading": "Income tax, corporation tax and capital gains tax",
  "text": "(1) Abolition of corporation tax starting rate and non-corporate distribution rate\nThese repeals have effect in accordance with section 26 of this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nSections 13AA and 13AB.\nIn section 13A(1), the words “or 13AA(8)”.\nSchedule A2.\nFinance Act 1998 (c. 36)\nIn Schedule 18, in paragraph 8(1), in the second step, the words “or 13AA(2)”.\nFinance Act 1999 (c. 16)\nSection 28.\nFinance Act 2004 (c. 36)\nSection 28.\nSchedule 3.\n(2) Group relief where surrendering company not resident in UK\nThis repeal has effect in accordance with Schedule 1 to this Act.\nShort title and chapter\nExtent of repeal\nFinance Act 2000 (c. 17)\nIn Schedule 27, paragraph 3(a).\n(3) Relief for research and development: subjects of clinical trials\nThese repeals have effect in accordance with section 28 of this Act.\nShort title and chapter\nExtent of repeal\nFinance Act 2002 (c. 23)\nIn Schedule 12—\n(a)in paragraph 4(3), the word “or” at the end of paragraph (b);\n(b)in paragraph 9(2), the word “or” at the end of paragraph (b);\n(c)in paragraph 17, the word “and” at the end of paragraph (c).\nIn Schedule 13—\n(a)in paragraph 3(5), the word “or” at the end of paragraph (b);\n(b)in paragraph 9(3), the word “or” at the end of paragraph (b).\n(4) Films\n1 These repeals come into force in accordance with the provisions of sections 46 and 47 of this Act.\n2 In consequence of the repeals in ITTOIA 2005—\n(a) the heading before section 135 of that Act becomes “Rules for allocating expenditure”; and\n(b) the heading to that section becomes “Allocation of production or acquisition expenditure to relevant periods”.\nShort title and chapter\nExtent of repeal\nFinance (No.2) Act 1992 (c. 48)\nSections 40A to 43.\nFinance (No.2) Act 1997 (c. 58)\nSection 48.\nFinance Act 2002 (c. 23)\nSections 99 to 101.\nIncome Tax (Trading and Other Income) Act 2005 (c. 5)\nIn the heading to Chapter 9 of Part 2, the words “FILMS AND”.\nIn section 130—\n(a)in subsections (1)(a), (2), (3) and (4), the words “film or” wherever occurring;\n(b)in subsection (1), paragraph (b) and the word “and” preceding it;\n(c)subsection (6).\nSection 131.\nIn section 132—\n(a)in subsection (1), paragraph (a) and the word “and” following it;\n(b)subsections (2) and (3).\nSection 134(4).\nIn section 135—\n(a)in subsection (1)(a), the words “films or”;\n(b)subsection (1)(d);\n(c)subsection (6)(b) to (d);\n(d)subsection (7).\nSections 136 to 144.\nFinance Act 2005 (c. 7)\nSections 58 to 71.\nSchedule 3.\n(5) non-charitable expenditure\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nIn section 506(2), the words “and subsection (1) above”.\nSection 506(6).\nPart III of Schedule 20.\n(6) Mobile telephones\nThese repeals have effect in accordance with section 60(4) and (5) of this Act.\nShort title and chapter\nExtent of repeal\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nIn section 266(2)(b), the word “or”.\nIn section 267(2)(e), the word “and” at the end.\nCommunications Act 2003 (c. 21)\nIn Schedule 17, paragraph 175(2).\n(7) Computer equipment\nThese repeals have effect in accordance with section 61(2) and (3) of this Act.\nShort title and chapter\nExtent of repeal\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nSection 320.\nCommunications Act 2003 (c. 21)\nIn Schedule 17, paragraph 175(3).\nFinance Act 2004 (c. 12)\nSection 79.\n(8) Exemption for employees' eye tests and special glasses\nThis repeal has effect for the year 2006-07 and subsequent years of assessment.\nShort title and chapter\nExtent of repeal\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nIn section 266(3), the word “or” at the end of paragraph (d).\n(9) Capital losses\n1 The repeals of—\n(a) section 177B of, and Schedule 7AA to, TCGA 1992,\n(b) section 137(1), (2) and (5) of, and Schedule 24, to FA 1998, and\n(c) paragraph 8 of Schedule 29 to FA 2000,\nhave effect in accordance with section 70(6) to (11) of this Act.\n2 The other repeals have effect in accordance with section 72 of this Act.\nShort title and chapter\nExtent of repeal\nTaxation of Chargeable Gains Act 1992 (c. 12)\nIn section 104(2)(b), the word “, 106”.\nIn section 105(2)(c), the word “106,”.\nSection 106.\nIn section 108(8), the words “shall have effect subject to section 106 but”.\nSection 177B and the italic cross-heading before it.\nSchedule 7AA.\nFinance Act 1998 (c. 36)\nSection 137(1), (2) and (5).\nSchedule 24.\nFinance Act 2000 (c. 17)\nIn Schedule 29, paragraphs 8 and 18.\nFinance Act 2003 (c. 14)\nIn Schedule 27, in paragraph 2(3), the words “106(10),”.\n(10) policies of insurance and non-deferred annuities\nThis repeal has effect in accordance with section 73 of this Act.\nShort title and chapter\nExtent of repeal\nTaxation of Chargeable Gains Act 1992 (c. 12)\nSection 237(b).\n(11) exception to “bed and breakfasting” rules etc\nThese repeals have effect in accordance with section 74(6) of this Act.\nShort title and chapter\nExtent of repeal\nTaxation of Chargeable Gains Act 1992 (c. 12)\nSection 10A(9A).\nSection 83A(5).\n(12) Avoidance involving financial arrangements\nThese repeals have effect in accordance with Schedule 6 to this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nSections 43A to 43G.\nSection 730(3).\nFinance Act 1996 (c. 8)\nIn section 81(2), the word “or” immediately before paragraph (b).\nIn section 103(1), in the definition of “fair value”, in paragraphs (a) and (b), the words “in respect of amounts which at that time are not yet due and payable”.\nFinance Act 2000 (c. 17)\nSection 110.\nCapital Allowances Act 2001 (c. 2)\nIn Schedule 2, paragraphs 11 and 12.\nFinance Act 2002 (c. 23)\nIn section 103(4)(a), the words “43A(1),”.\nIn Schedule 26, in paragraph 54(1), in the definition of “fair value”, in paragraphs (a) and (b), the words “in respect of amounts which at that time are not yet due and payable”.\nIncome Tax (Trading and Other Income) Act 2005 (c. 5)\nIn Schedule 1, paragraphs 26 to 30.\nFinance (No.2) Act 2005 (c. 22)\nIn Schedule 7, paragraphs 1, 2(6), 17(3) and 23(2).\n(13) Leasing of plant or machinery\nThese repeals have effect in relation to expenditure incurred on or after 1st April 2006.\nShort title and chapter\nExtent of repeal\nFinance Act 2002 (c. 23)\nSection 62.\nFinance Act 2003 (c. 14)\nIn Schedule 30, paragraph 4(2).\n(14) insurance companies\nThe repeals in section 83ZA of FA 1989 have effect in accordance with Schedule 11 to this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nSection 431A(5).\nIn section 432B(4)(b), the words “and ending before 1st October 2006”.\nFinance Act 1989 (c. 26)\nIn section 83ZA—\n(a)in subsection (7), the words “the aggregate of”, paragraph (b) and the word “and” before that paragraph,\n(b)subsections (10) and (12), and\n(c)in subsection (15), the word “, (12)”.\n(15) Settlements\nThese repeals shall come into force in accordance with the provisions of Schedules 12 and 13 to this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nSection 220(2).\nIn section 360A(2)(b)—\n(a)the words “trustee or”, and\n(b)the words from “(“settlement”” to the end.\nIn section 360A(2)(c), the words “trustee or”.\nIn section 360A(8), the words “trustee or”.\nIn section 417(3)(b)—\n(a)the words “trustee or”, and\n(b)the words from “(“settlement”” to the end.\nIn section 417(3)(c)(i), the words “trustee or”.\nIn section 686(2)(b), the word “either”.\nSection 720(8)(a).\nSection 764.\nAt the end of section 839(3)(b), the word “and”.\nFinance Act 1989 (c. 26)\nAt the end of section 68(2)(bb), the word “and”.\nSection 68(2)(c).\nAt the end of section 71(4)(bb), the word “and”.\nSection 71(4)(c).\nSection 110.\nFinance Act 1990 (c. 29)\nAt the end of section 25(9)(b)(iii), the word “or”.\nTaxation of Chargeable Gains Act 1992 (c. 12)\nIn section 63(1), the words “an heir of entail in possession of any property in Scotland subject to an entail, whether sui juris or not, or of”.\nIn section 63(2)—\n(a)the words “For the purposes of this Act,”\n(b)the words “heir or” before “liferenter”, and\n(c)the words “the heir of entail next entitled to the entailed property under the entail or, as the case may be,”.\nIn section 77(6), the word “or” at the end of paragraph (a).\nIn section 83A(3), the word “or” at the end of paragraph (a).\nSection 83A(3)(b).\nIn section 97(7), the words “the preceding provisions of”.\nIn section 98(2), the word “and” at the end of paragraph (a).\nSection 98(2)(b).\nIn section 169(3)(a), the words from “, although” to the end of the paragraph.\nIn section 217(3), the word “and” at the end of paragraph (a).\nSection 217(3)(b).\nIn section 283(4), the words “as such (within the meaning of section 701(4) of that Act)”.\nIn section 286(3), the word “and” at the end of paragraph (b).\nIn section 286(3), the words following paragraph (c).\nParagraph 17(6) of Schedule A1.\nIn paragraph 2(7) of Schedule 1, the words from “settlor” to “intestate and”.\nIn paragraph 2(7)(a) of Schedule 1, the words “treated under section 69(1) as”.\nIn paragraph 7(5) of Schedule 4A, the word “or” at the end of paragraph (a).\nIncome Tax (Trading and Other Income) Act 2005 (c. 5)\nSection 457(4).\nSection 568(5).\nFinance Act 2005 (c. 7)\nSection 42(5)(b).\n(16) venture capital schemes\n1 The repeals in section 73 of FA 1998 have effect in accordance with paragraph 2(2) to (4) of Schedule 14 to this Act.\n2 The repeal of paragraph 2 of Schedule 13 to FA 1998 has effect in accordance with paragraph 5(2) of Schedule 14 to this Act.\n3 The repeal of paragraph 1(4) of Schedule 18 to FA 2000 has effect in accordance with paragraph 7(5) of Schedule 14 to this Act.\n4 The repeal of paragraph 4 of Schedule 18 to FA 2004 has effect in accordance with paragraph 6(2) of Schedule 14 to this Act.\nShort title and chapter\nExtent of repeal\nFinance Act 1998 (c. 36)\nSection 73(5).\nIn section 73(6), the words from “; and subsection (5)” to the end.\nIn Schedule 13, paragraph 2.\nFinance Act 2000 (c. 17)\nIn Schedule 18, paragraph 1(4).\nFinance Act 2004 (c. 12)\nIn Schedule 18, paragraph 4.\n(17) Alternative finance arrangements\nShort title and chapter\nExtent of repeal\nFinance Act 2005 (c. 7)\nSection 47(5).\n(18) Nuclear decommissioning\nThis repeal has effect in relation to accounting periods of the Nuclear Decommissioning Authority ending on or after 22nd March 2006.\nShort title and chapter\nExtent of repeal\nEnergy Act 2004 (c. 20)\nIn section 30(1)(c), the words “on the coming into force of the direction mentioned in paragraph (a),”.\n(19) Securitisation companies\nThese repeals have effect in accordance with section 101(6) and (7) of this Act.\nShort title and chapter\nExtent of repeal\nFinance Act 2005 (c. 7)\nIn section 83(3), the word “and” at the end of paragraph (c).\nIn section 84—\n(a)subsection (3)(d)(ii) and the word “and” following it;\n(b)subsection (5)(a).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2006/25/schedule/26/part/3",
    "retrieved_at": "2026-10-29T09:14:22.939634+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}