1017.This section provides the rules to determine which Part takes priority in the event of any overlap of the charge on the profits of a trade and the charge on the profits of an overseas property business or the charge under Chapter 7 or 8 of this Part. It is based on sections 18 and 70A of ICTA.
1018.The definitions of Schedule D Cases I and VI are in section 18 of ICTA. Those definitions deal with any overlap between a trade and the profits of a UK concern or the profits of a UK electric line wayleave. Case VI charges income that is not charged under any other case. So this section gives trading income (Case I in the source legislation) priority.
1019.The section also gives statutory effect to the Crown Option between an overseas property business and a United Kingdom trade. See Change 55 in Annex 1. The corresponding rules for income tax are in section 261 of ITTOIA.
Commentary on Sections Overview Chapter 10: Supplementary Section 287: Provisions which must be given priority over this Part