Statute Law Repeals - Law Commission - Ministry of Justice

10.26 Schedule 30 to ICTA 1988 (with section 844) set out transitional provisions and
savings. Schedule 30 paragraph 9 dealt with social security benefits, including
arrangements relating to taxation of supplementary allowance before the coming
into force of social security legislation in 1986 creating income-related benefits
schemes. Paragraph 9 deactivated certain provisions relating to the taxation of
income support 13 and activated substitutions within ICTA 1988 before the coming
into force of the 1987 Income Support and the Family Credit Regulations 14 in
April 1988. Once in force Schedule 30 paragraph 9 then became spent, and it
can now be repealed.
10.27 Section 16 of the Finance (No. 2) Act 1979 (c.47) (“F(No.2)A 1979”) made
provision for implementation of the United States Double Taxation Convention
1975 (see above) via an Order in Council under ICTA 1970, s 497 (later ICTA
1988, s 788). 15 Section 16 was repealed by ICTA 1988, s 844 and Sch 31, but
Schedule 30 paragraph 14 provided that the repeal was not to prejudice any
Order which gave effect to the 1975 Convention.
10.28 The 1975 Convention and the 1980 implementing Order were superseded by the
2001 Convention 16 and its related 2002 Order. 17 Because section 16 related only
to the 1980 Order (implementing the 1975 Convention) need for the saving
provision in ICTA 1988, Sch 30 para 14 ceased. The provision can now be
repealed as spent. 18
10.29 Schedule 30 paragraph 15 provided a saving when Schedule 31 to ICTA 1988
repealed FA 1985, s 76 and Sch 22. The FA 1985 provisions dealt with interest
on certain chargeable securities held between 28 February 1985 to 27 February
1986. Interest was deemed to have been received on such securities even if it
had not been received as such, and the taxpayer could be obliged under
Schedule 22 paragraph 6 (by notice served by an inspector) to provide particulars
of the securities held in the specified period.
13 ICTA 1988, ss 151, 152.
14 Income Support (General) Regulations 1987 (SI 1987 No 1967) and Family Credit
(General) Regulations 1987 (SI 1987 No 1973).
15 The 1975 Convention was implemented by the Double Taxation Relief (Taxes on Income)
(The United States of America) Order 1980 (SI 1980 No 568).
16 The 2001 Convention was amended by a 2002 Protocol. That protocol made adjustments
to the arrangements for teachers, students and trainees entitled to certain 1975
Convention benefits.
17
The Double Taxation Relief (Taxes on Income) (The United States of America) Order 2002
(SI 2002 No 2848).
18 Repeal of Schedule 30 paragraph 14 will not adversely affect the protected benefits for
students and trainees. This is discussed in more detail in our Consultation Paper at
paragraphs 78 and 79.
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