2225.This section defines the person liable, bringing together a number of previously separate provisions. It is based on section 776(3)(b), (3B) and (8) of ICTA.
2226.Subsection (1) states that the person liable for any tax charged under this Chapter on income is the person whose income it is.
2227.Subsection (2) then lays down the general rule: that person is the person who realises the gain.
2228.Subsection (3) states that the general rule is subject to two exceptions, set out in subsections (4) and (6).
2229.Subsection (4) deals with the case where there is a person providing value. If all or any part of the gain accruing to a person (“A”) is derived from value provided directly or indirectly by another person (“B”), the income is B’s.
2230.Subsection (5) makes it clear that it does not matter for the purpose of subsection (4) whether or not the value is put at the disposal of A.
2231.Subsection (6) deals with the case where there is a person providing an opportunity to realise a gain. If all or any part of the gain accruing to a person is derived from an opportunity of realising a gain provided directly or indirectly by another person, the income is the other person’s.
2232.There is no equivalent of subsection (5) to back up subsection (6), because none is needed. This is a change in the law but not in practice. See Change 116 in Annex 1.
2233.Subsection (8) makes a minor change in the law, although not in practice. See the commentary on section 756 and Change 115 in Annex 1.