Commentary

E1.510 Charge to income tax on annual payments received

Personal and employment tax

E1.510 Charge to income tax on annual payments received

Annual payments received

E1.510 Charge to income tax on annual payments received

The legislation deals with receipts of 'annual payments' and 'other annual payments' in two different places: ITTOIA 2005, ss 683–686 and ITTOIA 2005, ss 727–748. Much of the content is the same and so the detail is discussed in terms of annual payments charged to income tax and annual payments exempt from income tax. The detail on the exemptions can be found E1.551. For details of the tax treatment of annual payments from the payer's perspective see E1.801.

Any annual payments received by individuals and non corporate bodies, which are not charged to income tax under other provisions and which are not specifically exempted from the charge to tax1, are brought into charge as miscellaneous income2. A non corporate body is a person who is 'not an individual'3. This will be mainly trust and partnerships.

The Act does not contain a definition of an annual payment received by an individual and charged to income tax as miscellaneous income. The phrase 'annual payments' derives its meaning from an

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