Income Tax (Trading and Other Income) Act 2005 section 783

General disregard of exempt income for income tax purposes

Section 783 establishes the general rule that income which is exempt from income tax under Part 6 of the Act should be completely disregarded for all other income tax purposes, while setting out specific exceptions to that rule.

• Income exempt under Part 6 is ignored for all other income tax purposes, whether exempt from every charge or only from every charge relevant to those particular amounts
• Interest on ordinary accounts with the National Savings Bank, although exempt, must still be included in information returns
• Interest paid to or in respect of victims of National-Socialist persecution, although exempt, must still be reported under the information provisions of sections 17 and 18 of the Taxes Management Act 1970
• These stated exceptions do not limit any other implied or express exceptions that may exist elsewhere in the tax legislation