Income Tax Act 2007 section 809AZC

Exception: amount otherwise taxed

Section 809AZC provides an exception to the income stream transfer rules where the income in question is already subject to tax through other means.

• Chapter 5A does not apply where the income that would otherwise be caught is already charged to tax as the transferor's income
• The exception also applies where the income is already brought into account in calculating the transferor's profits
• Income already accounted for under the Capital Allowances Act 2001 is similarly excluded
• The exception applies to the extent that the income is otherwise taxed, so partial relief is possible where only part of the income is already within the tax net