Income Tax Act 2007 section 58

Meaning of "adjusted net income"

Section 58 defines how to calculate an individual's adjusted net income for a tax year, which is used to determine entitlement to certain personal allowances.

• Start with the individual's net income, then deduct the grossed-up amount of any qualifying Gift Aid donations made in the tax year
• Deduct the gross amount (before tax relief at source) of any pension contributions paid under a registered pension scheme in the tax year
• Add back any relief already deducted for payments to trade unions or police organisations
• Certain tainted charity donations are excluded from the Gift Aid deduction under anti-avoidance rules