Income Tax Act 2007 section 18

Meaning of "savings income"

Section 18 defines what counts as "savings income" for income tax purposes, covering specific categories of investment-related income.

• Savings income includes interest, purchased life annuity payments (with certain exclusions), profits from deeply discounted securities, accrued income profits, and certain life insurance gains where the taxpayer is an individual or personal representatives.
• Income charged on the remittance basis as relevant foreign income is excluded from the definition of savings income, even if it would otherwise fall within one of the qualifying categories.
• Life insurance gains only count as savings income where the person liable for income tax on them is an individual or personal representatives — not, for example, trustees or companies.
• Purchased life annuity payments are included, but annuities purchased from certain life assurance premium payments or arising under wills or similar arrangements are specifically excluded.