Income Tax (Trading and Other Income) Act 2005 section 551

Charge to tax on profits from disposal of deposit rights

Section 551 establishes that profits and gains arising from the disposal of deposit rights are subject to an income tax charge.

• Income tax is charged on any profits and gains made from disposing of deposit rights
• Exercising a deposit right counts as a disposal of that right for tax purposes
• This means that even if a deposit right is not sold outright, simply using it triggers a taxable event
• The charge applies to the profits and gains element, not to the full proceeds of disposal