Overview
26.This Chapter sets out the provisions of the Income Tax Acts where the main charges to income tax are to be found and contains basic rules about the annual nature of income tax.
Section 3: Overview of charges to income tax
27.This section is based on section 1(1) of ICTA.
28.Subsection (1) lists the principal provisions that contain charges to income tax, which are all in ITEPA and ITTOIA.
29.Subsection (2) makes it clear that there are also charges to income tax in other legislation. The main ones are shown, but the list is not exhaustive.
Section 4: Income tax an annual tax
30.This section is based on sections 1(2), 2(2) and 832(1) of ICTA.
31.Section 2(1) of ICTA, which provides for the due proportion of income tax to be charged for every fractional part of one pound, has not been rewritten as it is otiose.
Section 5: Income tax and companies
32.This section provides that income of companies that is liable to corporation tax is not charged to income tax. It is based on sections 6(2) and 11(1) of ICTA.
33.In brief, a company’s income (other than income arising to it in a fiduciary or representative capacity) is within the charge to corporation tax if:
the company is UK resident; or
the company is non‑UK resident and:
(a)the income is trading income arising through or from a permanent establishment in the United Kingdom of the company; or
(b)the income arises from property or rights used by, or held by or for, the permanent establishment.
See the commentary on section 835 in relation to the residence of companies.
