The charge to tax on social security income is a charge to tax on that income excluding any exempt income.

“Exempt income” is social security income on which no liability to income tax arises as a result of any provision of Chapter 4, 5 or 7 of this Part.

This definition applies for the purposes of this Part.

This section defines—

Subsections (2) and (3) are subject to section 660(2).

“Table A” means Table A in section 660.

“Table B” means Table B in section 677.

The amount of social security income which is charged to tax under this Part for a particular tax year is as follows.

In relation to a taxable benefit, the amount charged to tax is the net taxable social security income for the tax year.

The net taxable social security income for a taxable benefit for a tax year is given by the formula—

$\mathrm{TSSI}-\mathrm{PGD}$

where—

TSSI means the amount of taxable social security income for that benefit for that year (see subsections (4) to (7)), and

PGD means the amount of the deduction (if any) allowed from the benefit under Part 12 (payroll giving).

In relation to bereavement allowance, carer’s allowance, F1contributory employment and support allowance, incapacity benefit F2income support, welfare supplementary payments payable pursuant to the loss of contributory employment and support allowance and welfare supplementary payments payable pursuant to the loss of, or a reduction in the amount payable of, income support (which are listed in Table A), the amount of taxable social security income is determined in accordance with section 661.

In relation to any other benefit listed in Table A, the amount of taxable social security income is the amount of the benefit that falls to be charged to tax.

In relation to foreign benefits to which section 678 applies, the amount of taxable social security income is determined in accordance with section 679.

In determining for the purposes of this Act the amount of taxable social security income, any exempt income is to be excluded.