Income Tax (Trading and Other Income) Act 2005 section 428

Income charged

Section 428 establishes how profits from disposals of securities are charged to income tax, including specific rules for securities situated outside the United Kingdom.

• Tax is charged on the full amount of profits arising in the tax year, with profits treated as arising at the time the disposal occurs.
• Where profits arise from a disposal of securities outside the United Kingdom, they are classified as relevant foreign income.
• Profits from foreign securities are subject to the special rules in Part 8 of the Act, which may modify the standard charging rules.
• The timing of when a disposal is treated as occurring must be read alongside section 438, which contains specific rules on the timing of transfers and acquisitions.