Income Tax Act 2007

768 Recovery of tax where consideration receivable by person not assessed

(1) This section applies if a person (“A”) is assessed to tax under this Chapter in respect of consideration receivable by another person (“B”).

(2) Consideration is not regarded as having become receivable by B for this purpose until B can effectively enjoy or dispose of it.

(3) A is entitled to recover from B any part of the tax which A has paid.

(4) If any part of the tax remains unpaid at the end of the period of 6 months beginning with the date when it became due and payable, it is recoverable from B as if B were the person assessed.

(5) Subsection (4) does not affect the right to recover the tax from A.

(6) For the purposes of this section, any income which an individual is treated as having as a result of this Chapter (the “land income”) is treated as the highest part of the individual’s total income.

(7) But if in the tax year—

(a) more than one gain is treated as the individual’s land income, or

(b) the individual is also treated as having income as a result of Chapter 4 (sales of occupation income),

only a just and reasonable proportion of each gain treated as land income is to be treated as the highest part of the individual’s total income.

(8) See section 1012 for the relationship between—

(a) the rules in subsections (6) and (7), and

(b) other rules requiring particular income to be treated as the highest part of a person’s total income.