Part 13Tax avoidance
Chapter 4Sales of occupation income
Charge on sale of occupation income
777Conditions for sections 778 and 779 to apply
1
Sections 778 and 779 apply only if conditions A to C are met in respect of an individual.
2
Condition A is that the individual carries on an occupation wholly or partly in the United Kingdom.
3
Condition B is that transactions are effected or arrangements made to exploit the individual's earning capacity in the occupation by putting another person (see section 782) in a position to enjoy—
a
all or part of the income or receipts derived from the individual's activities in the occupation, or
b
anything derived directly or indirectly from such income or receipts.
4
The reference in subsection (3) to income or receipts derived from the individual's activities includes a reference to payments for any description of copyright or licence or franchise or other right deriving its value from the individual's activities (including past activities).
5
Condition C is that as part of, or in connection with, or in consequence of, the transactions or arrangements a capital amount is obtained by the individual for the individual or another person.
6
For the purposes of subsection (5), the cases where an individual (“A”) obtains a capital amount for another person (“B”) include cases where A has put B in a position to receive the capital amount by providing B with something of value derived, directly or indirectly, from A's activities in the occupation.
7
In this Chapter “capital amount” means an amount in money or money's worth which does not fall to be included in a calculation of income for F1purposes of the Tax Acts otherwise than as a result of this Chapter.