Income Tax (Trading and Other Income) Act 2005 section 608J

Exemption where limited UK sales

Section 608J provides a de minimis exemption from the intangible property income rules in Chapter 2A where a person's total UK sales for a tax year do not exceed £10 million.

• If a person's total UK sales in a tax year are £10 million or less, the Chapter 2A charge on intangible property income does not apply to them.
• UK sales include amounts received in connection with the provision of services, goods or other property.
• Sales made by persons connected with the individual must also be taken into account when testing against the £10 million threshold.
• This exemption is designed to exclude smaller-scale operators from the intangible property income rules, focusing the charge on those with more significant UK commercial activity.