Commentary on Sections Overview Chapter 1: Introduction Section 4: Provisions which must be given priority over Part 2
39.This section sets out the priority rules that apply when a receipt or other credit item might otherwise fall within more than one head of charge.
40.Subsection (1) applies where there might otherwise be overlap between the charge on the profits of a trade and the charge on the profits of a UK property business. It is based on section 18 of ICTA.
41.Subsection (2) deals with potential overlap with ITEPA. It is based on section 18 of ICTA. In the source legislation Schedule D is the residual Schedule. So the charge in ITEPA on employment income, and other income formerly within Schedule E, has priority over the charge on profits of a trade (Schedule D in the source legislation). There is no potential overlap between pension and social security income in ITEPA that was formerly within Schedule D and the charge on profits of a trade.