Income and Corporation Taxes Act 1988

[F1 282A Jointly held property. U.K.

(1) Subject to the following provisions of this section, income arising from property held in the names of a husband and his wife [F2 , or in the names of civil partners of each other,] shall for the purposes of income tax be regarded as income to which they are beneficially entitled to equal shares.

(2) Subsection (1) above shall not apply to income to which neither the husband nor the wife [F3 , or neither of the civil partners,] is beneficially entitled.

(3) Subsection (1) above shall not apply to income—

(a) to which either the husband or the wife [F4 , or one of the civil partners,] is beneficially entitled to the exclusion of the other, or

(b) to which they are beneficially entitled in unequal shares,

if a declaration relating to it has effect under section 282B.

(4) Subsection (1) above shall not apply to—

(a) earned income, or

(b) income which is not earned income but to which [F5 Part 9 of ITTOIA 2005 (partnerships)] applies.

[F6 (4A) Subsection (1) above shall not apply to income consisting of a distribution arising from property consisting of—

(a) close company shares to which either the husband or the wife [F7 , or one of the civil partners,] is beneficially entitled to the exclusion of the other, or

(b) close company shares to which they are beneficially entitled in equal or unequal shares.

In this subsection “close company shares” means shares in or securities of a close company; and for this purpose “shares” and “securities” have the same meaning as in Part 6 (see section 254).]

(5) Subsection (1) above shall not apply to income to which the husband or the wife [F8 , or one of the civil partners,] is beneficially entitled if or to the extent that it is treated by virtue of any other provision of the Income Tax Acts as the income of the other of them or of a third party.

(6) References in this section to a husband and his wife are references to a husband and wife living together [F9 , and references in this section to civil partners of each other are references to civil partners of each other living together].]

Textual Amendments

F1 Ss. 282A, 282B inserted (1990-91 and subsequent years) by Finance Act 1988 (c. 39), s. 34

F2 Words in s. 282A(1) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 63(2)

F3 Words in s. 282A(2) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 63(3)

F4 Words in s. 282A(3)(a) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 63(4)

F5 Words in s. 282A(4)(b) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 125 (with Sch. 2)

F6 S. 282A(4A) inserted (with effect in accordance with s. 91(3) of the amending Act) by Finance Act 2004 (c. 12), s. 91(2)

F7 Words in s. 282A(4A)(a) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 63(5)

F8 Words in s. 282A(5) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 63(6)

F9 Words in s. 282A(6) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 63(7)