Income Tax Act 2007 section 31

Total income: supplementary

Section 31 provides supplementary rules for calculating total income, dealing with the tax year in which income received under deduction of tax is allocated, and the finality of assessments.

• Income from which basic rate, Welsh basic rate or Scottish basic rate tax is deducted (or treated as deducted) is treated as income of the tax year in which the deduction applies
• This allocation to a particular tax year applies even if the income, dividend or other distribution actually accrued, or will accrue, in a different tax year
• The timing rule ensures that income is matched to the correct tax year for total income purposes, regardless of when it economically arises
• Once an income tax assessment has become final and conclusive for a tax year, it is equally final and conclusive for the purposes of calculating total income