(1)Income tax is charged on income derived from a relevant telecommunication right that is not used or held for the purposes of a trade, profession or vocation.
(2)“Relevant telecommunication right” has the same meaning as in Chapter 10 of Part 2 (see section 146).
(1)Tax is charged under this Chapter on the full amount of the income arising in the tax year.
(2)See section 617 for provision about the calculation of the amount of certain income charged under this Chapter.
(3)This section is subject to Part 8 (foreign income: special rules).
The person liable for any tax charged under this Chapter is the person receiving or entitled to the income.
(1)This section applies for calculating the amount of income charged under this Chapter other than annual payments.
(2)The following sections apply as they apply for the purpose of calculating the profits of a trade, profession or vocation—
(a)section 147 (expenditure and receipts in respect of relevant telecommunication rights treated as revenue in nature), and
(b)section 148 (credits or debits arising from revaluation in respect of relevant telecommunication rights).
(3)Expenses wholly and exclusively incurred for the purpose of generating the income are deductible.
(4)If an expense is incurred for more than one purpose, a deduction may be made for any identifiable part or identifiable proportion of the expense which is incurred wholly and exclusively for the purpose of generating the income.
(5)Expenses which would not have been allowable as a deduction in calculating the profits of a trade, if they had been incurred for its purposes, are not deductible under this section.
(6)Expenses for which any kind of relief is given under any other provision of the Income Tax Acts are not deductible under this section.
(7)The frequency with which payments are made is ignored in determining whether they are annual payments for the purposes of this Chapter.
[F1In accordance with section 848 of ITA 2007, a sum representing income tax deducted under Chapter 6 of Part 15 of that Act] from an annual payment within this Chapter is treated as income tax paid by the recipient.
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Words in s. 618 substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 549(2) (with transitional provisions and savings in Sch. 2)
F2Words in s. 618 repealed (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1031, 1034, Sch. 1 para. 549(3) {Sch. 3 Pt. 1} (with transitional provisions and savings in Sch. 2)