Income Tax Act 2007 section 796

Charge to tax on income treated as received under section 797

Section 796 establishes the income tax charge that applies when an individual is treated as having received income under the anti-avoidance rules in section 797, which deal with sideways or capital gains relief claimed for film-related trading losses.

• Income tax is charged on any income that an individual is treated as receiving under section 797
• The amount charged to tax is the income treated as received in the relevant tax year
• The individual who is treated as receiving the income is the person liable to pay the tax
• This charge forms part of the anti-avoidance provisions targeting the misuse of film-related trading losses