This section makes provision about the relationship between rules requiring particular income to be treated as the highest part of a person's total income.

It has effect for the purposes of the Income Tax Acts except sections 535 to 537 of ITTOIA 2005 (gains from contracts for life insurance etc: top slicing relief).

If more than one of the provisions listed in subsection (4) applies in relation to a person, a provision mentioned earlier in the list has priority over a provision mentioned later in the list.

The provisions are—

• section 465A of ITTOIA 2005 (gains from contracts for life insurance etc to be treated as highest part of total income),

• F1section 685A(5A) of ITTOIA 2005 (payments from trustees of settlor-interested settlements to be treated as highest part of total income),

• section 404A of ITEPA 2003 (payments and other benefits on termination of employment to be treated as highest part of total income), and

• section 16 (savings and dividend income to be treated as highest part of total income).

The provisions listed in subsection (4) have priority over—

• section 619A(2) of ITTOIA 2005 (income treated as highest part of settlor's total income),

• section 768(6) and (7) (income treated as arising under Chapter 3 of Part 13 to be treated as highest part of total income),

• section 786(6) and (7) (income treated as arising under Chapter 4 of Part 13 to be treated as highest part of total income), and

• any other provisions of the Income Tax Acts requiring income of any description to be treated as the highest part of a person's total income.

The effect of one provision having priority over another is that the second provision has effect subject to the first.