Commentary

A2.111 The component parts of the direct tax code

Administration and compliance

A2.111 The component parts of the direct tax code

A2.111 The component parts of the direct tax code

The Income Tax Acts

The Income Tax Acts are the Income Tax (Earnings and Pensions) Act 2003, the Income Tax (Trading and Other Income) Act 2005 and the Income Tax Act 2007, together with provisions in other enactments, including the Taxation (International and Other Provisions) Act 20101.

The income tax legislation, comprising the Income Tax Act 1842 and amendments and additions up to 1917, was consolidated for the first time in the Income Tax Act 1918. The next consolidation, incorporating the many fiscal changes prompted by involvement in two world wars and declining colonial power, was the Income Tax Act 1952. In 1964 several of the management provisions were split off from the rest of the legislation and brought together in Income Tax Management Act 1964. Corporation tax was introduced in 1965 to replace income tax on the profits of UK-resident companies.

In 1970 most of what remained of Income Tax Act 1952 was consolidated with all the amendments and additions since 1952, including the corporation tax legislation, in TA 1970. At the same time the management provisions of Income Tax Act 1952 and Income Tax Management Act 1964 were consolidated in TMA 1970.

In 1988 the Tax Acts were consolidated in ICTA 1988. This included most of the provisions relating to income tax and corporation tax. It did not cover capital allowances, the taxes management provisions or capital gains tax2.

ICTA 1988 came into force for 1988–89 and

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