You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
0115 986 2411 info@tcp.uk.com
A capital sum received by an individual in respect of the sale or relinquishment of income - derived from his or her personal activities - can sometimes be treated as earned income and chargeable to Income Tax. If this is the case, the amount charged to Income Tax is not also charged to Capital Gains Tax.
The following conditions must all be present before the sale of income legislation can operate.
The charge to Income Tax will take place in the tax year or years in which the capital amount becomes receivable or the sale or realisation occurs.