Income Tax (Trading and Other Income) Act 2005 section 338

Person liable

Section 338 identifies who is liable to pay tax on rental income charged under the property income rules.

• Tax on property income is the responsibility of the person who receives or is entitled to the rent.
• Liability follows the actual receipt of, or entitlement to, rental payments.
• This applies to all tax charges arising under the property income chapter.
• The rule ensures that the person benefiting from the rental income bears the corresponding tax obligation.