Taxes Management Act 1970 section 12ZF

The "amount notionally chargeable"

Section 12ZF defines how to calculate the "amount notionally chargeable" for the purposes of determining whether a taxpayer needs to notify HMRC of their chargeability to tax and file a self-assessment return.

• The "amount notionally chargeable" is a calculated figure used to test whether a person has a liability that triggers reporting obligations to HMRC.
• It represents the amount of income tax or capital gains tax that would be chargeable on a person's income and gains for the year, before taking account of certain reliefs and allowances that reduce the final tax bill.
• This notional figure is relevant in establishing whether thresholds for self-assessment obligations have been met, even where the person's actual liability may ultimately be reduced to nil.
• The provision was amended by the Finance Act 2019, Schedule 2, paragraph 25(3), with transitional provisions in Schedule 2, paragraph 32(2).

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