Commentary on Sections Omitted material
2853.This Chapter derives from section 206A of ICTA. Section 206A was inserted by section 110 of FA 1996, with effect from 29 April 1996.
2854.Section 206A(5) and (7) of ICTA relate to issues likely to arise if regulations within the scope of section 206A of ICTA (“PSA regulations”) had effect for the tax year in which the PSA regulations were made.
2855.Section 206A(5) of ICTA allowed the PSA regulations to cover an agreement even though the agreement had been made before the PSA regulations came into force. So, for the tax year in which the PSA regulations came into force, an agreement could be covered even though the agreement had been made before the PSA regulations were made. But because a fresh agreement is entered into for each tax year, section 206A(5) of ICTA was only needed for the year in which PSA regulations were made. As PSA regulations were made on 14 October 1996 and came into force on 5 November 1996 this transitional provision is spent and omitted from this Act.
2856.Section 206A(7) of ICTA allowed the PSA regulations to cover sums accounted for under an agreement, and the income to which the sums related, even though those sums had been accounted for before PSA regulations came into force. So, for the tax year in which the PSA regulations came into force, those sums and that income could be covered even though those sums and that income may have arisen before the PSA regulations were made. This transitional provision is also spent and omitted from this Act because PSA regulations were made on 14 October 1996 and came into force on 5 November 1996.