Income Tax (Trading and Other Income) Act 2005 section 694

Income from individual investment plans

Section 694 provides the Treasury with broad powers to make regulations exempting individuals' income from certain investment plans from income tax, and sets out the general framework for those regulations.

• The Treasury may make regulations providing that income from investments held under a plan is fully or partially exempt from income tax
• The definition of plan income includes income treated as belonging to an individual under the settlements rules where income is paid to a settlor's relevant children
• The regulations may specify who is eligible to invest, set maximum investment limits, and allow individuals to invest under more than one plan in the same tax year
• The regulations must set out the conditions under which plans are to operate, with further detailed provisions contained elsewhere in the chapter