Finance Act, 1983

Chargeability of certain profits or gains.

19.—(1) Profits or gains shall be chargeable to tax notwithstanding that at the time an assessment to tax in respect of those profits or gains was made—

(a) the source from which those profits or gains arose was not known to the inspector,

(b) the profits or gains were not known to him to have arisen wholly or partly from a lawful source or activity, or

(c) the profits or gains arose and were known to him to have arisen from an unlawful source or activity,

and any question whether those profits or gains arose wholly or partly from an unknown or unlawful source or activity shall be disregarded in determining the chargeability to tax of the said profits or gains.

(2) Notwithstanding anything in the Tax Acts, any profits or gains which are charged to tax by virtue of subsection (1)

(a) shall be charged under Case IV of Schedule D, and

(b) shall be described in the assessment to tax concerned as “miscellaneous income”,

and the assessment shall not be discharged by the Appeal Commissioners or by a court by reason only of the fact that the income should, apart from this section, have been described in some other manner or by reason only of the fact that the profits or gains arose wholly or partly from an unknown or unlawful source or activity.

(3) In this section “tax” means income tax, corporation tax or corporation profits tax, as appropriate.

(4) This section shall apply and have effect in respect of assessments to tax made on or after the passing of this Act.