448. Calculation of liability to income tax.

In order to find a person's income tax liability for a tax year1, a seven-step calculation is prescribed2.

At step 1, the amounts of income3 on which the taxpayer4 is charged to income tax for the tax year are identified and added together. The sum of those amounts is 'total income' and each of those amounts is a component of total income5.

At step 2, the amount of any relief to which the taxpayer is entitled for a tax year under a list of specified provisions6 is deducted from those components. The sum of the components left after this step is