1071.This section imposes the charge to income tax on the person obtaining the capital sum. It is based on section 781(1), (1A), (2) and (6) of ICTA.
1072.Under subsection (1) there is a charge to income tax for the tax year in which the sum is obtained.
1073.Subsection (2) measures the income thus charged.
1074.Subsection (3) introduces four subsections limiting the effect of subsections (1) and (2).
1075.Subsection (4) caps the amount charged.
1076.To prevent double taxation, subsections (5) and (6) ensure that once a payment (or part of a payment) has been taken into account in making a charge under this Chapter it cannot be taken into account in making a further charge in respect of another sum.
1077.Subsection (7) is a timing rule supplementing subsections (5) and (6).