Income Tax Act 2007 section 989

The definitions

Section 989 provides a comprehensive glossary of key terms used throughout the Income Tax Acts, arranged alphabetically, to ensure consistent interpretation across income tax legislation.

• The section defines the main income tax rates (basic, higher, additional) and their variants for savings income, dividend income, Scottish taxpayers, Welsh taxpayers, default rates, and trust income
• It establishes the meaning of fundamental business and entity terms such as "company", "close company", "trade", "body of persons", "connected persons", "control", "distribution", and "ordinary share capital"
• It covers key accounting and administrative concepts including "generally accepted accounting practice", "period of account", "tax year", "chargeable period", "net income", "total income", and "capital allowance"
• It addresses residence and territorial concepts such as "UK resident", "non-UK resident", "split year", "the UK part", "the overseas part", and terms relating to Scottish and Welsh taxpayers

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