Types of income for income tax purposes


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Private Client expert
Practice notes

Types of income for income tax purposes


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Private Client expert

Practice notes
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The main types of income are:

  1. •

    employment income

  2. •

    pension income

  3. •

    social security income

  4. •

    trading income

  5. •

    property income

  6. •

    savings and investment income and

  7. •

    miscellaneous income

Historically, the application of income tax involved the identification of a source of income followed by establishing that the source fell within one of the Schedules laid out in the Income and Corporation Taxes Act 1988 (ICTA 1988). The act originally divided the classes or kinds of income assessable to income tax under six historic Schedules, A, B, C, D, E and F. In 1996 the Tax Law Rewrite Project was established to rewrite primary direct tax legislation. With the completion of the Tax Law Rewrite Project, the Schedules were entirely done away with, for the purposes of both income tax and corporation tax with the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), the Income Tax (Trading and other Income) Act 2005 (ITTOIA 2005) and the Income Tax Act 2007 (ITA 2007) setting out the new heads of charges

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Pension income definition
What does Pension income mean?

The income you get from your pension savings by buying an annuity or unsecured pension. Pension income is taxable.

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