Income Tax Act 2007 section 809DZB

Relevant amount to be treated as income

Section 809DZB sets out how the relevant amount arising from a disposal of assets through a partnership is taxed as income of the transferor, including timing rules and the interaction with the separate rules on disposals of income streams through partnerships.

• The relevant amount is taxed as income of the transferor in the same way and to the same extent as it would have been taxed had it remained with the transferor or been reflected in their profit calculations.
• The timing of when this income is treated as arising follows the rules in section 809AZB(3) to (6), with references to the transfer of a right read as references to the disposal of the transferred asset.
• Where both Chapter 5D (disposals of assets through partnerships) and Chapter 5AA (disposals of income streams through partnerships) would apply to the same disposal, and Chapter 5AA produces an equal or greater income tax charge, Chapter 5D does not apply.
• This priority rule prevents a double charge by ensuring that only the provision producing the higher or equal charge takes effect.