Corporation Tax Act 2009 section 288

Priority between Chapters within this Part

Section 288 establishes which set of rules takes priority when a rental receipt could potentially fall under more than one chapter of the legislation dealing with property income.

• When rent from a UK property business also qualifies as rent connected with a UK section 39(4) concern (such as mines, quarries or similar operations), the section 39(4) concern rules (Chapter 7) take priority over the general property business rules (Chapter 3).
• When rent from a UK property business also qualifies as rent for UK electric-line wayleaves, the electric-line wayleave rules (Chapter 8) take priority over the general property business rules (Chapter 3).
• When rent qualifies as both rent connected with a UK section 39(4) concern and rent for UK electric-line wayleaves, the electric-line wayleave rules (Chapter 8) take priority over the section 39(4) concern rules (Chapter 7).
• The overall hierarchy is therefore: electric-line wayleaves (Chapter 8) take top priority, followed by section 39(4) concerns (Chapter 7), with general UK property business rules (Chapter 3) having the lowest priority.