Corporation Tax Act 2009 section 287

Provisions which must be given priority over this Part

Section 287 establishes which set of tax rules takes priority when a receipt could potentially fall under both the property income rules and the trading income rules.

• When a receipt or credit item could be taxed both as property income and as trading income, the trading income rules in Part 3 take priority.
• This applies specifically to income from an overseas property business, income from a UK section 39(4) concern, and UK electric-line wayleave receipts.
• The section gives statutory effect to HMRC's option to treat overseas property business income as part of a UK trade where there is an overlap.
• The equivalent income tax rule is found in section 261 of the Income Tax (Trading and Other Income) Act 2005.