Types of income for income tax purposes


Published by a UUÂãÁÄÖ±²¥ Private Client expert
Practice notes

Types of income for income tax purposes


Published by a UUÂãÁÄÖ±²¥ Private Client expert

Practice notes
imgtext

The main types of income are:

  1. •

    employment income

  2. •

    pension income

  3. •

    social security income

  4. •

    trading income

  5. •

    property income

  6. •

    savings and investment income and

  7. •

    miscellaneous income

Historically, the application of income tax involved the identification of a source of income followed by establishing that the source fell within one of the Schedules laid out in the Income and Corporation Taxes Act 1988 (ICTA 1988). The act originally divided the classes or kinds of income assessable to income tax under six historic Schedules, A, B, C, D, E and F. In 1996 the Tax Law Rewrite Project was established to rewrite primary direct tax legislation. With the completion of the Tax Law Rewrite Project, the Schedules were entirely done away with, for the purposes of both income tax and corporation tax with the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), the Income Tax (Trading and other Income) Act 2005 (ITTOIA 2005) and the Income Tax Act 2007 (ITA 2007) setting out the new heads of charges

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Pension income definition
What does Pension income mean?

The income you get from your pension savings by buying an annuity or unsecured pension. Pension income is taxable.

Read more

Popular documents

What IHT forms must be submitted to HMRC where an individual died domiciled outside the UK with a

What IHT forms must be submitted to HMRC where an individual died domiciled outside the UK with a worldwide estate of less than £150,000 (including UK assets) and with no a grant of probate is required?Where the deceased died domiciled abroad with assets in the UK and the estate qualifies as an

CGT—PPR relief for trusts and estates

CGT—PPR relief for trusts and estatesThis Practice Note outlines the circumstances in which trustees of a settlement or the personal representatives (PRs) of a deceased person may claim principal private residence (PPR) relief from capital gains tax (CGT) in respect of property held in a settlement

Exemptions and reliefs from income tax

Exemptions and reliefs from income taxFor income tax rates and allowances applicable in the current tax year, see Practice Note: Key UK tax rates, thresholds and allowances for Private Client.Personal allowancesThe following income tax allowances are available to individuals:•personal

How long do you have to submit a C4 Corrective Account for inheritance tax?

How long do you have to submit a C4 Corrective Account for inheritance tax?If personal representatives or another person who has delivered an inheritance tax (IHT) account discovers it was defective in any material respect, either because it contained incorrect valuations or information was omitted,