Income Tax Act 2007 section 825

Meaning of "disregarded savings and investment income"

Section 825 defines which types of savings and investment income are treated as "disregarded" for the purposes of this Chapter, meaning they are excluded from certain tax calculations.

• Dividends and stock dividends from UK resident companies are automatically classified as disregarded savings and investment income.
• Certain other savings income — including interest, purchased life annuity payments, profits from deeply discounted securities, and transactions in deposits — also qualifies, provided it is not relevant foreign income.
• Income taxable under regulation 15 of the Unauthorised Unit Trusts (Tax) Regulations 2013 is also included, again provided it is not relevant foreign income.
• The foreign income exclusion means that if any of the savings-type income listed above has a foreign source, it does not count as disregarded savings and investment income under this definition.