93.4 Income or capital

| Commentary

The payment has to be made out of the taxpayer’s income and there is no definition of ‘income’ for these purposes1.

Example 15
Mr A has pension and investment income of £30,000 per annum after tax, plus £10,000 per annum withdrawals from a single premium bond (previously purchased for £200,000)2. His total spendable ‘income’ is therefore £40,000 per annum but of that £10,000 is

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