Commentary

E1.101 Income tax—basis of charge

Personal and employment tax

E1.101 Income tax—basis of charge

Part E1     Income tax

E1.1     Income tax calculation

E1.2     Self assessment

E1.4     Savings and investment income

E1.5     Miscellaneous income

E1.6     Foreign income—special rules

E1.7     Foster-care, qualifying care and tax-free childcare relief

E1.8     Annual payments by non corporate bodies, donations to charity, qualifying loan interest

E1.9     Personal reliefs

[E1.10]     [Rewritten—Loss relief]

E1.11     Transfer of assets abroad

E1.12     Sale of income from personal occupation

E1.13     Life assurance premium relief

Division E1.1     Income tax calculation

For updates affecting this Division please see Part E0 Updates

Calculation of income tax liability

E1.101 Income tax—basis of charge

Income tax is an annual tax on income that is levied a tax year basis. The tax year begins on 6 April and ends on the following 5 April1.

Income tax charges receipts of a revenue nature from a taxable source. These amounts can be monetary receipts or amounts received in kind (eg non-cash employment benefits). Unless specified otherwise in the legislation, receipts of capital are not within the scope of income tax and so the distinction between income and capital is important, as covered in detail in Division A1.2. A taxable source is one that is subject to income tax under the Taxes Acts. For a list of main taxable sources, see ITA 2007, s 3. These sources can also be thought of as types of component income for the purposes of the income tax calculation, see 'Income tax calculation' below.

For more detail on the nature of income and the different taxable sources, see A1.121–A1.141.

Persons liable to income

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