Income Tax (Trading and Other Income) Act 2005 section 581

Person liable for tax under section 579

Section 581 identifies who is responsible for paying tax on royalties and other income from intellectual property charged under section 579.

• Tax on intellectual property income is the responsibility of the person who receives or is entitled to that income
• This applies to all income charged under section 579, which covers royalties and other receipts from intellectual property
• Liability falls on the recipient regardless of whether they have actually received the income or simply have an entitlement to it
• The provision ensures there is a clearly identified taxpayer for every charge arising on intellectual property income