Income and Corporation Taxes Act 1988 (c. 1)

PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE

CHAPTER VIII MISCELLANEOUS AND SUPPLEMENTAL

127 Enterprise allowance

(1) This section applies to—

(a) payments known as enterprise allowance and made by the Manpower Services Commission in pursuance of arrangements under section 2(2)(d) of the [1973 c. 50.] Employment and Training Act 1973; and

(b) corresponding payments made in Northern Ireland by the Department of Economic Development.

(2) Any such payment which would (apart from this section) be charged to tax under Case I or II of Schedule D shall be charged to tax under Case VI of that Schedule.

(3) Nothing in subsection (2) above shall prevent such a payment—

(a) being treated for the purposes of section 623(2)(c) or 833(4)(c) as immediately derived from the carrying on or exercise of a trade, profession or vocation; or

(b) being treated for the purposes of paragraph 1 of Schedule 19 as trading income.