The new Income Tax Act 2007 entered into force on 6 April last, the fourth major item of legislation under the tax law rewrite project.

The 17 Parts and 4 schedules do not, it is claimed, change the effect of the law, but they do incorporate what were previously extra statutory concessions and accepted practices into the legislation. The concept of charges on income is abolished – relief for such allowable payments is now given as a deduction from income.

It is stressed that the new legislation has no bearing on Corporation Tax.