Income Tax (Trading and Other Income) Act 2005 section 607

Questions about apportionments affecting two or more persons

Section 607 deals with how disputes about the apportionment of a sale price between intellectual property and other property are to be resolved when the outcome affects the tax position of two or more people.

• Where intellectual property is sold together with other property and there is a dispute about how the total sale price should be split, a formal procedure applies if the outcome affects two or more taxpayers.
• The dispute resolution procedure is that set out in section 563(2) to (6) of the Capital Allowances Act 2001, which governs questions affecting multiple persons.
• A question is treated as materially affecting two or more taxpayers if, at the time it needs to be decided, the outcome appears likely to be relevant to the tax liability of two or more persons for any period.
• This ensures that apportionment decisions are made consistently and fairly where more than one taxpayer's liability depends on the result.