Part 14Income tax liability: miscellaneous rules

Chapter 3Jointly held property

836Jointly held property

1

This section applies if income arises from property held in the names of individuals—

a

who are married to, or are civil partners of, each other, and

b

who live together.

2

The individuals are treated for income tax purposes as beneficially entitled to the income in equal shares.

3

But this treatment does not apply in relation to any income within any of the following exceptions.

Exception A

Income to which neither of the individuals is beneficially entitled.

Exception B

Income in relation to which a declaration by the individuals under section 837 has effect (unequal beneficial interests).

Exception C

Income to which Part 9 of ITTOIA 2005 applies (partnerships).

Exception D

Income arising from a UK property business which consists of, or so far as it includes, the commercial letting of furnished holiday accommodation (within the meaning of Chapter 6 of Part 3 of ITTOIA 2005).

Exception E

Income consisting of a distribution arising from property consisting of—

a

shares in or securities of a close company to which one of the individuals is beneficially entitled to the exclusion of the other, or

b

such shares or securities to which the individuals are beneficially entitled in equal or unequal shares.

Shares” and “securities” have the same meaning as in section 254 of ICTA.

Exception F

Income to which one of the individuals is beneficially entitled so far as it is treated as a result of any other provision of the Income Tax Acts as—

a

the income of the other individual, or

b

the income of a third party.