Part 5Employment income: deductions allowed from earnings

Chapter 1Deductions allowed from earnings: general rules

Introduction

327Deductions from earnings: general

1

This Part provides for deductions that are allowed from the taxable earnings from an employment in a tax year in calculating the net taxable earnings from the employment in the tax year for the purposes of Part 2 (see section 11(1)).

2

In this Part, unless otherwise indicated by the context—

a

references to the earnings from which deductions are allowed are references to the taxable earnings mentioned in subsection (1), and

b

references to the tax year are references to the tax year mentioned there.

3

The deductions for which this Part provides are those allowed under—

  • Chapter 2 (deductions for employee’s expenses),

  • Chapter 3 (deductions from benefits code earnings),

  • Chapter 4 (fixed allowances for employee’s expenses),

  • Chapter 5 (deductions for earnings representing benefits or reimbursed expenses), and

  • Chapter 6 (deductions from seafarers' earnings).

4

Further provision about deductions from earnings is made in—

  • section 232 (giving effect to mileage allowance relief),

  • section 619 of ICTA (contributions under retirement annuity contracts), and

  • section 262 of CAA 2001 (capital allowances to be given effect by treating them as deductions from earnings).

5

Further provision about deductions from income including earnings is made in—

  • Part 12 (payroll giving),

  • section 592(7) of ICTA (contributions to exempt approved schemes), and

  • section 594(1) of ICTA (contributions to exempt statutory schemes).