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CH 7: Adjustment for avoidance arrangements
or “Adjusting income for tax avoidance and other specific situations”
You could also call this:

“The law may count extra money as income if you're underpaid for goods or rent”

If someone doesn’t pay you enough for something, the law might say you should have gotten more money. This extra money that you should have received is counted as your income.

There are two special situations where you might be treated as if you got more money than you actually did:

  1. When you sell trading stock (things your business sells) for less than they’re worth, the law might say you should have gotten more money for it. You can learn more about this in section GC 1.

  2. When you rent out a property for less rent than it’s worth, the law might say you should have gotten more rent. You can find out more about this in section GC 5.

In both these cases, even if you didn’t actually get the money, the law might treat you as if you did get it.

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Next up: CH 9: Interest apportionment: excess debt entity

or “Splitting up interest costs when you have a lot of debt”
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Part C Income
Adjustments

CH 8Market value substituted

  1. An amount treated as income of a person under section GC 8 (Insufficient amount receivable by person) is income of the person.

  2. A person may be treated as deriving an amount—

  3. on disposal of trading stock under section GC 1 (Certain disposals of trading stock at below market value):
    1. on the lease of a property under section GC 5 (Leases for inadequate rent).

      Notes
      • Section CH 8(1): amended (with effect on 1 April 2008), on , by section 17(1) (and see section 17(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
      • Section CH 8(2)(a): amended, on , by section 17(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).