Section 778 — Income Tax Act 2007: Income arising where capital amount other than derivative property or right obtained

Income arising where capital amount other than derivative property or right obtained 778 1 This section applies if the capital amount obtained as mentioned in section 777(5) does not consist of—

a property which derives substantially the whole of its value from the individual's activities, or b a right which does so.

2 The capital amount is treated for income tax purposes as income arising to the individual.

3 The income is treated as arising in the tax year in which the capital amount is receivable.

4 A capital amount is not regarded as having become receivable by a person for the purposes of this section until the person can effectively enjoy or dispose of it.