Income Tax (Trading and Other Income) Act 2005 section 576

Priority between Chapters within Part 5

Section 576 establishes which set of rules takes priority when income could potentially be taxed under more than one Chapter within Part 5 of the Act.

• Where income falls within both Chapter 2 (intellectual property receipts) and Chapter 2A (offshore receipts for intangible property), Chapter 2 takes priority
• Where income falls within both Chapter 2 (intellectual property receipts) and Chapter 3 (films and sound recordings: non-trade businesses), Chapter 3 takes priority
• These priority rules prevent the same income from being taxed twice under different charging provisions
• The rules apply only to overlaps between Chapters within Part 5 of the Income Tax (Trading and Other Income) Act 2005