Income and Corporation Taxes Act 1970

528 "Total income" in Income Tax Acts

(1) In the Income Tax Acts "total income", in relation to any person, means the total income of that person from all sources estimated, as the case may be, either in accordance with the provisions of the Income Tax Acts as they apply to income tax chargeable at the standard rate or in accordance with those provisions as they apply to surtax.

(2) Any person who, on his own behalf or on behalf of another person, delivers a statement of the amount of his or that other person's total income shall observe the rules and directions contained in Schedule 13 to this Act.

(3) In estimating the total income of any person—

(a) any income which is chargeable with income tax by way of deduction at the standard rate in force for any year shall be deemed to be income of that year, and

(b) any deductions which are allowable on account of sums payable under deduction of income tax at the standard rate in force for any year out of the property or profits of that person shall be allowed as deductions in respect of that year,

notwithstanding that the income or sums, as the case may be, accrued or will accrue in whole or in part before or after that year.

(4) Where an assessment has become final and conclusive for the purposes of income tax at the standard rate for any year of assessment, that assessment shall also be final and conclusive in estimating total income, and no allowance or adjustment of liability, on the ground of diminution of income or loss, shall be taken into account in estimating total income unless that allowance or adjustment has previously been made on an application under the special provisions of the Income Tax Acts relating thereto.

(5) The provisions of subsection (4) above shall, for the purpose of estimating total income for the purposes of surtax, apply in relation to—

(a) any relief under any of sections 57 to 60 and 62 of this Act (interest set off against income subject to income tax),

(b) any relief by reason of the operation of an election for the herd basis under Schedule 6 to this Act (farm animals), and

(c) any allowance under Part I of the [1968 c. 3.] Capital Allowances Act 1968 to be given by way of discharge or repayment of tax and to be available or available primarily against a specified class of income (that is to say any capital allowance to which section 71 of the Capital Allowances Act 1968 applies or, as provided by section 387(1), any capital allowance to which section 385(2) of this Act applies),

as they apply in relation to allowances or adjustments on the ground of diminution of income or loss.