Income Tax (Trading and Other Income) Act 2005 section 262

Priority between Chapters within Part 3

Section 262 establishes which chapter takes precedence when a property income receipt could fall under more than one chapter within Part 3 of the Act.

  • Where rental income qualifies as both UK property business income (Chapter 3) and rent from a UK section 12(4) concern (Chapter 8), it is taxed under Chapter 8.
  • Where rental income qualifies as both UK property business income (Chapter 3) and rent for UK electric-line wayleaves (Chapter 9), it is taxed under Chapter 9.
  • Where rental income qualifies under both Chapter 8 (UK section 12(4) concern) and Chapter 9 (UK electric-line wayleaves), Chapter 9 takes priority.
  • The overall hierarchy is: Chapter 9 takes priority over Chapter 8, and both Chapters 8 and 9 take priority over Chapter 3.

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