Income Tax (Trading and Other Income) Act 2005

776Scholarship incomeU.K.
This section has no associated Explanatory Notes

(1)No liability to income tax arises in respect of income from a scholarship held by an individual in full-time education at a university, college, school or other educational establishment.

(2)This exemption is subject to section 215 of ITEPA 2003 (under which only the scholarship holder is entitled to the exemption if the scholarship is provided by reason of another person's employment).

[F1(2A)No liability to income tax arises in respect of income from a payment made under section 23C(5A) of the Children Act 1989 (duty to make payments to former relevant children who pursue higher education).]

(3)In this section “scholarship” includes a bursary, exhibition or other similar educational endowment.

Textual Amendments

F1S. 776(2A) inserted (E.W.) (18.3.2011 for W., 22.8.2009 for E.) by Children and Young Persons Act 2008 (c. 23), ss. 21(4), 44(4); S.I. 2011/824, art. 2(a); S.I. 2009/2273, art. 2(1)