Part 13

Tax avoidance
Chapter 4

Sales of occupation income

Recovery of tax

Recovery of tax where consideration receivable by person not assessed
786
1
This section applies if a person (“A”) is assessed to tax under this Chapter in respect of consideration receivable by another person (“B”).
2
Consideration is not regarded as having become receivable by B for this purpose until B can effectively enjoy or dispose of it.
3
A is entitled to recover from B any part of the tax which A has paid.
4
If any part of the tax remains unpaid at the end of the period of 6 months beginning with the date when it became due and payable, it is recoverable from B as if B were the person assessed.
5
Subsection (4) does not affect the right to recover the tax from A.
6
For the purposes of this section, any income which an individual is treated as having as a result of this Chapter (the “occupation income”) is treated as the highest part of the individual’s total income.
7
But if in the tax year—
a
more than one capital amount is treated as the individual’s occupation income, or
b
the individual is also treated as having income as a result of Chapter 3 (transactions in land),
only a just and reasonable proportion of each capital amount treated as occupation income is to be treated as the highest part of the individual’s total income.
8
See section 1012 for the relationship between—
a
the rules in subsections (6) and (7), and
b
other rules requiring particular income to be treated as the highest part of a person’s total income.