Income Tax (Trading and Other Income) Act 2005

Chapter 1 U.K. Introduction

574 Overview of Part 5 U.K.

(1) This Part imposes charges to income tax under—

(a) Chapter 2 (receipts from intellectual property),

(b) Chapter 3 (films and sound recordings: non-trade businesses),

(c) Chapter 4 (certain telecommunication rights: non-trading income),

(d) Chapter 5 (settlements: amounts treated as income of settlor),

(e) Chapter 6 (beneficiaries' income from estates in administration),

(f) Chapter 7 (annual payments not otherwise charged), and

(g) Chapter 8 (income not otherwise charged).

(2) Part 6 deals with exemptions from the charges under this Part.

(3) See, in particular, any exemptions mentioned in the Chapters of this Part.

(4) The charges under this Part apply to non-UK residents as well as UK residents but this is subject to section 577(2) (charges on non-UK residents only on UK source income).

(5) This section needs to be read with the relevant priority rules (see sections 2, 575 and 576).

575 Provisions which must be given priority over Part 5 U.K.

(1) Any income, so far as it falls within—

(a) any Chapter of this Part, and

(b) Chapter 2 of Part 2 (receipts of a trade, profession or vocation),

is dealt with under Part 2.

(2) Any income, so far as it falls within—

(a) any Chapter of this Part, and

(b) Chapter 3 of Part 3 so far as the Chapter relates to a UK property business,

is dealt with under Part 3.

(3) Any income, so far as it falls within—

(a) any Chapter of this Part, and

(b) Chapter 2 or 3 of Part 4 (interest and dividends etc. from UK resident companies etc.),

is dealt with under the relevant Chapter of Part 4.

(4) Any income, so far as it falls within—

(a) any Chapter of this Part, and

(b) Part 2, 9 or 10 of ITEPA 2003 (employment income, pension income or social security income),

is dealt with under the relevant Part of ITEPA 2003.

576 Priority between Chapters within Part 5 U.K.

Any income, so far as it falls within Chapter 2 (receipts from intellectual property) and Chapter 3 (films and sound recordings: non-trade businesses), is dealt with under Chapter 3.

577 Territorial scope of Part 5 charges U.K.

(1) Income arising to a UK resident is chargeable to tax under this Part whether or not it is from a source in the United Kingdom.

(2) Income arising to a non-UK resident is chargeable to tax under this Part only if it is from a source in the United Kingdom.

(3) References in this section to income which is from a source in the United Kingdom include, in the case of any income which does not have a source, references to income which has a comparable connection to the United Kingdom.

(4) This section is subject to any express or implied provision to the contrary in this Part (or elsewhere in the Income Tax Acts).