Annex 1: Minor Changes in the Law Change 3: Trading income: profits of mines, quarries and other concerns: section 39
This change identifies two consequences of the approach taken to the rewrite of section 55 of ICTA.
It brings the income tax and corporation tax codes back into line.
Section 55 of ICTA provides that profits arising out of land in the case of certain listed concerns shall be charged to tax under Schedule D Case I (Schedule D Case 1 rules are rewritten largely in Part 3 of this Act). The concerns listed include mines, quarries, railways and canals.
Section 55 of ICTA is rewritten as section 39. It treats the profits and losses of the concern as if they were the profits or losses of a trade. This has two consequences.
This change is in principle adverse to some taxpayers and favourable to others. But it is expected to have no practical effect as it is in line with generally accepted practice.