Income Tax (Trading and Other Income) Act 2005 section 8

Person liable

Section 8 identifies who is liable for income tax charged on trading profits.

• The person liable for tax on trading profits is the person who receives or is entitled to those profits.
• This single test replaces an older two-part rule that separately identified liable persons for certain specific concerns such as mines and quarries.
• The previous legislation also made agents or officers who managed a concern or received its profits potentially liable, but these individuals would normally already be caught by the "receiving or entitled to" test.
• There is no reason for a wider category of liable persons in respect of specific concerns than applies to trades generally, so the simplified rule applies uniformly.