PART XIX SUPPLEMENTAL

Interpretation

833 Interpretation of Income Tax Acts.

1

M1In the Income Tax Acts references to profits or gains shall not include references to chargeable gains.

2

M2References 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 F5Office for National Statistics; 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 F6that Office.

3

M3For the purposes of any provision of the Income Tax Acts (other than section 550or Schedule 2 F1) 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—

F7a

any payment or other benefit charged to tax under Chapter 3 of Part 6 of ITEPA 2003 (payments and other benefits on termination of employment); 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 F1.

4

M4Subject to subsections (5) and (6) below, in the Income Tax Acts “earned income” means, in relation to any individual—

F8a

any income charged to tax under ITEPA 2003 except—

i

payments that meet the conditions in section 623 of that Act (return of surplus employee additional voluntary contributions); and

ii

jobseeker’s allowance (to which Chapter 3 of Part 10 of that Act applies);

b

any income from any property which is attached to or forms part of the general earnings from any employment; and

c

any income which is charged under ScheduleAF2,BF3 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 wifeF4.

5

M5Without 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 F9income which is earned income by virtue of section 529.

6

M6The provisions of this section are without prejudice to any other provision of the Income Tax Acts directing income to be treated as earned income.