http://www.legislation.gov.uk/ukpga/2005/5/section/16CIncome Tax (Trading and Other Income) Act 2005An Act to restate, with minor changes, certain enactments relating to income tax on trading income, property income, savings and investment income and certain other income; and for connected purposes.texttext/xmlenStatute Law Database2026-07-30Expert Participation2026-07-15 Part 2Trading incomeChapter 2Income taxed as trade profits<Emphasis>Trades and trade profits</Emphasis><Addition ChangeId="key-b001bd6f85ba3f1d8981b3123d14696a-1603027135108" CommentaryRef="key-b001bd6f85ba3f1d8981b3123d14696a">Professionals in practice: incidental income from an office or employment</Addition>16C1This section applies where—aa payment is received by an individual who carries on a profession (alone or in partnership),bthe payment is made to the individual in his or her capacity as an employee or office-holder, but is not made in respect of employment as a director of a company,cthe payment would otherwise be employment income of the individual chargeable to tax under Part 2 of ITEPA 2003,dthe conditions in subsection (3) are met, andewhere the individual carries on the profession in partnership, the condition in subsection (4) is also met.2The payment is to be treated for income tax purposes as a receipt of a trade carried on by the individual or, where the individual carries on the profession in partnership, by the firm.3The conditions referred to in subsection (1)(d) are that—athe time spent by the individual in performing the duties of the office or employment is insubstantial compared with the time spent by the individual in carrying on the profession,bthe office or employment is related to the profession carried on by the individual,cthe amount of the payment is insubstantial compared with—ithe total amount brought into account as receipts when calculating the individual’s trade profits; oriiwhere the individual carries on a profession in partnership, so much of the total amount brought into account as receipts when calculating the firm’s profits as is attributable to the individual.4The condition referred to in subsection (1)(e) is that the individual is required by the terms of the partnership agreement to account to the firm for the payment and does so.Ss. 16B, 16C inserted (6.4.2018) by The Enactment of Extra-Statutory Concessions Order 2018 (S.I. 2018/282), arts. 1, 5(2)