HMRC internal manual

Business Income Manual

BIM100380 - Sale of income by an individual in exchange for capital: submit to Counter-Avoidance first

Although the sale of income legislation is rarely invoked, all cases where it is considered it may apply should be submitted to Counter-Avoidance at an early stage and before an assessment is made and in particular where:

  • an individual (whether or not domiciled, resident or ordinarily resident in the UK), carries on an activity wholly or partly in the UK of any of the kinds referred to in BIM100360,


  • the earning capacity of that individual is enjoyed by some other person,


  • money or money’s worth becomes receivable in the UK or offshore by the individual or some other person (whether before or after the income is earned) which is not taxable in the UK as income; or, if chargeable as a capital gain, produces a disproportionately small tax liability (either because of capital loss relief or otherwise).