Part 2Basic provisions

Chapter 2Rates at which income tax is charged

Income charged at particular rates

12Income charged at the savings rate

1

Income tax is charged at the savings rate on a person’s income which—

a

is savings income, and

b

would otherwise be charged at the basic rate.

2

This is subject to—

  • Chapters 3 to 6 of Part 9 (which provide for some income of trustees to be charged at the dividend trust rate or at the trust rate),

  • section 504(3) (treatment of income of unauthorised unit trust), and

  • any other provisions of the Income Tax Acts (apart from sections 10 and 11) which provide for income to be charged at different rates of income tax in some circumstances.

3

Section 16 has effect for determining the extent to which a person’s savings income would otherwise be charged at the basic rate.