Income Tax Act 2007 section 3

Overview of charges to income tax

Section 3 provides an overview of the various legislative provisions under which income tax is charged.

• Income tax is charged on seven principal categories of income, including employment, pensions, social security, trading, property, savings and investment, and miscellaneous income.
• The principal charging provisions are found in two key statutes: the Income Tax (Earnings and Pensions) Act 2003 and the Income Tax (Trading and Other Income) Act 2005.
• Additional income tax charges arise under other legislation, covering areas such as registered pension scheme tax charges, social security pension lump sums, charitable trusts, accrued income profits, tax avoidance, and banks in compulsory liquidation.
• The list of additional charges is not exhaustive — other provisions beyond those specifically mentioned may also give rise to an income tax charge.