Income Tax (Trading and Other Income) Act 2005 section 245

Person liable

Section 245 identifies who is liable to pay tax on receipts charged under this chapter.

• Tax liability falls on the person who actually receives the relevant receipts
• Tax liability equally falls on any person who is entitled to receive those receipts, even if not yet received
• There is no distinction between receiving and being entitled to receive — either is sufficient to create a tax liability
• This rule applies to all charges arising under this chapter of the Act