Income Tax Act 2007

Charge to tax

616 Charge to tax on accrued income profits

Income tax is charged on accrued income profits.

617 Income charged

(1) Tax is charged under this Chapter on the full amount of the accrued income profits treated as made in the tax year.

(2) Accrued income profits within section 628(5) (profits treated as made where the settlement day falls within an interest period) are treated as made in the tax year in which the last day of the interest period in which the profits are treated as made falls.

(3) Accrued income profits within section 630(2) (profits treated as made where the settlement day falls after the end of the securities' last interest period) are treated as made in the tax year in which the settlement day for the transfer falls.

(4) Accrued income profits within section 670(2) or (3) (withdrawal of relief for unremittable transfer proceeds) are treated as made in the tax year in which the proceeds cease to be unremittable.

(5) Section 668(5) (when proceeds are unremittable) applies for the purposes of subsection (4) as it applies for the purposes mentioned in section 668(5).

(6) For the meaning of “interest period” and “the settlement day”, see sections 673 and 674 respectively.

618 Person liable

(1) The person liable for any tax charged under this Chapter is the person treated as making the accrued income profits.

(2) But see section 666 (under which nominees and trustees may be disregarded).