Income Tax Act 2007 section 804

Charge to tax on income treated as received under section 805

Section 804 establishes the income tax charge that applies when an individual is treated as having received income under the anti-avoidance rules in section 805, which deal with partners claiming relief for licence-related trading losses.

• Income tax is charged on income that an individual is treated as receiving under the section 805 anti-avoidance provisions relating to licence-related trading losses
• The amount subject to tax is the income treated as received during the relevant tax year
• The individual who is treated as receiving the income is personally liable for the tax charged
• This charge ensures that where section 805 deems income to have been received, it is brought within the income tax framework in the normal way