Income and Corporation Taxes Act 1988

833 Interpretation of Income Tax Acts. U.K.

(1) M1 In the Income Tax Acts references to profits or gains shall not include references to chargeable gains.

(2) M2 References in the Income Tax Acts to the retail prices index are references to the general index of retail prices (for all items) published by the [F1 Central Statistical Office of the Chancellor of the Exchequer]; and if that index is not published for a month which is relevant for the purposes of any provision of those Acts that provision shall be construed as referring to any substituted index or index figures published by that Department.

(3) M3 For the purposes of any provision of the Income Tax Acts (other than section 550or Schedule 2 F2 ) requiring income of any description to be treated as the highest part of a person’s income, his income shall be calculated without regard to—

(a) any payment chargeable to tax by virtue of section 148; or

(b) any amount included in his total income by virtue of section 547(1)(a);or

(c) any chargeable sum as defined in paragraph 2of Schedule 2 F2 .

(4) M4 Subject to subsections (5) and (6) below, in the Income Tax Acts “earned income” means, in relation to any individual—

(a) any income arising in respect of —

(i) any remuneration from any office or employment held by the individual, or

(ii) any pension, superannuation or other allowance, deferred pay or compensation for loss of office, given in respect of the past services of the individual or of the [F3 spouse] or parent of the individual in any office or employment, or given to the individual in respect of past services of any deceased person, whether the individual or [F3 spouse] or parent of the individual shall have contributed to such pension, superannuation allowance or deferred pay or not; and

(b) any income from any property which is attached to or forms part of the emoluments of any office or employment held by the individual; and

(c) any income which is charged under ScheduleAF4 ,BF5 or D and is immediately derived by the individual from the carrying on or exercise by him of his trade, profession or vocation, either as an individual or, in the case of a partnership, as a partner personally acting in the partnership.

In cases where the income of a wife is deemed to be income of the husband, any reference in this subsection to the individual includes either the husband or the wife F6 .

(5) M5 Without prejudice to the generality of the provisions of subsection (4) above, in the Income Tax Acts, except so far as is otherwise expressly provided, “earned income” also includes, in relation to any individual—

(a) any income arising in respect of Civil List pensions granted under the M6 Civil List Act 1837 as amended by any subsequent enactment; and

(b) any annuity, pension or annual payment to which section 58(2) or 133 applies; and

(c) any payments chargeable to income tax under Schedule E by virtue of section 150, 151 or 617;

(d) any sum payable by way of annuity to an individual by virtue of a scheme under section 27 of the M7 Agriculture Act 1967 (grants for relinquishing occupation of uncommercial agricultural units), unless the annuity was granted to the individual by reason of his having relinquished occupation before attaining the age of 55; and

(e) income which is earned income by virtue of section 529.

(6) M8 The provisions of this section are without prejudice to any other provision of the Income Tax Acts directing income to be treated as earned income.

Textual Amendments

F1 S.I.1989 No.992 Art.6(4)and Sch.2 para.5(2)(c)on and after 31July 1989 (not reproduced).Previously

“Department of Employment”.

F2 Repealed by 1988(F) s.148and Sch.14 Part IVfor 1988-89and subsequent years.

F3 1988(F) s.35and Sch.3 para.21for 1990-91and subsequent years. Previously

“husband”.

F4 Repealed by 1988(F) s.148and Sch.14 Part IVfor 1988-89and subsequent years.

F5 Repealed by 1988(F) s.148and Sch.14 Part Vfrom 6April 1988.

F6 Repealed by 1988(F) s.148and Sch.14 Part VIIIfor 1990-91and subsequent years.

Modifications etc. (not altering text)

C1 See also—s.107—post cessation receipts.s.127—enterprise allowance.s.138—share incentive schemes.s.491—mutual business.ss.529 to 531—patent rights and know-how.s.628—partnership retirement annuities.s.775—sale of income from personal activities.

C2 See s.619—certain retirement annuities.

Marginal Citations

M1 Source—1979(C) s.155(5).

M2 Source—1980 s.24(8)

M3 Source—1970 s.529

M4 Source—1970 s.530(1)

M5 Source—1970 s.530(2), 383; 1981 s.27(10); 1982 s.31(2); 1987 Sch.3 5

M6 1837 c. 2 (1 & 2 Vict.).

M7 1967 c. 22.

M8 Source—1970 s.530(3).