Taxes Management Act 1970 section 12AE

Choice between different Cases of Schedule D

Section 12AE dealt with situations where a taxpayer's income could potentially fall under more than one Case of Schedule D, and set out rules for how the taxpayer should classify that income in their tax return.

• Where income could be assessed under more than one Case of Schedule D, the taxpayer had to choose which Case to use when completing their return.
• The section applied to the old schedular system of income classification, which categorised different types of income under different Cases within Schedule D.
• This provision was relevant only to income tax self-assessment, as corporation tax was moved to a different legislative framework by the Corporation Tax Act 2009.
• The section was subsequently repealed as part of the rewrite of direct tax legislation, which replaced the schedular system with a simpler income categorisation approach.