Income Tax (Trading and Other Income) Act 2005 section 271

Person liable

Section 271 identifies who is liable to pay tax on profits charged under the chapter dealing with income from property.

• Tax liability falls on the person who actually receives the profits from the property business.
• Alternatively, liability falls on the person who is entitled to receive those profits, even if they have not yet been received.
• This applies to all tax charged under the property income chapter of the Act.
• There is no distinction between different types of recipient — whether an individual, a trustee, or another person, the same rule applies.