Part 8Other reliefs
Chapter 2Gift aid
Measures to ensure donor's liability not less than tax treated as deducted
425Total amount of income tax to which individual charged for a tax year
1
For the purposes of sections 423 and 424, the total amount of income tax to which an individual is charged for a tax year is the amount calculated as follows.
2
Calculate the individual's liability to income tax for the tax year in accordance with section 23, as modified by subsection (3).
3
In applying section 23—
a
at Step 6, ignore any tax reductions to which the individual is entitled for the tax year under a provision listed in subsection (4), and
b
ignore Step 7.
4
The tax reductions to be ignored are tax reductions under—
a
section 453 (qualifying maintenance payments),
b
F6sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or
c
F8section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax where no double taxation arrangements).
5
From the amount calculated in accordance with subsections (2) to (4) deduct—
a
any tax treated as having been paid under—
i
section 399(2) F3... of ITTOIA 2005 (distributions from UK resident companies etc on which there is no tax credit),
F1ii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1iii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iv
section 530(1) of that Act (gains from contracts for life insurance), or
b
F5c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
For the purposes of this section a person is treated as being entitled to a tax reduction under F4sections 2 and 6 of TIOPA 2010 if the person is entitled to credit against income tax under double taxation arrangements.