The individuals are treated for income tax purposes as beneficially entitled to the income in equal shares.

But this treatment does not apply in relation to any income within any of the following exceptions.

• Exception A

  Income to which neither of the individuals is beneficially entitled.

• Exception B

  Income in relation to which a declaration by the individuals under section 837 has effect (unequal beneficial interests).

• Exception C

  Income to which Part 9 of ITTOIA 2005 applies (partnerships).

• Exception D

  Income arising from a UK property business which consists of, or so far as it includes, the commercial letting of furnished holiday accommodation (within the meaning of Chapter 6 of Part 3 of ITTOIA 2005).

• F2Exception DA

  Income arising from an overseas property business which consists of, or so far as it includes, the commercial letting of furnished holiday accommodation (within the meaning of Chapter 6 of Part 3 of ITTOIA 2005) in one or more EEA states.

• Exception E

  Income consisting of a distribution arising from property consisting of—

  1. a

     shares in or securities of a close company to which one of the individuals is beneficially entitled to the exclusion of the other, or

  2. b

     such shares or securities to which the individuals are beneficially entitled in equal or unequal shares.

  “Shares” and “securities” have the same meaning as in F1section 1117 of CTA 2010.

• Exception F

  Income to which one of the individuals is beneficially entitled so far as it is treated as a result of any other provision of the Income Tax Acts as—

  1. a

     the income of the other individual, or

  2. b

     the income of a third party.