What is the purpose of section 22 of the Income Tax Act 2007?

Section 22 provides an overview of the chapter that sets out the framework for calculating a person's income tax liability for a tax year. It acts as a roadmap guiding taxpayers through the various steps involved in arriving at the final income tax figure under United Kingdom law.

Which income tax liabilities are excluded from the calculation framework under section 22?

Certain income tax liabilities specified in section 32 of the Income Tax Act 2007 are excluded from this calculation framework. These liabilities fall outside the scope of the chapter and are dealt with under different rules, meaning they do not form part of the standard income tax calculation process.

How does section 22 apply to non-UK residents?

Section 22 must be read alongside Chapter 1 of Part 14, which limits the income tax liability of non-UK residents. For example, a non-UK resident receiving United Kingdom rental income would follow this chapter's calculation steps but must also consider those restrictions, which may reduce the amount of income tax payable.

Who is liable to income tax under the Income Tax Act 2007?

Persons liable to income tax include individuals, trustees, personal representatives, non-UK resident companies, and companies acting in a fiduciary or representative capacity. However, a non-UK resident company trading through a permanent establishment in the United Kingdom is liable to corporation tax rather than income tax on its chargeable profits.

Income Tax Act 2007 section 22

Overview of Chapter

Section 22 provides an overview of the chapter dealing with the calculation of a person's income tax liability for a tax year.

The chapter sets out how a person's income tax liability for a tax year is calculated
Certain income tax liabilities listed in section 32 are excluded from this calculation framework
The chapter must be read alongside the rules in Chapter 1 of Part 14 that limit the income tax liability of non-UK residents
Persons liable to income tax include individuals, trustees, personal representatives, non-UK resident companies, and companies acting in a fiduciary or representative capacity

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