PSI2.1.3 – Taxation Background: General - Income Tax

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

Income tax is an annual tax charged on the income of a person. There is no statutory definition of income but the nearest approach to one may be that "income consists of the periodical (especially annual) receipts of a person from work, land, investments etc", and "income to be taxable, must fall within the ambit of English tax legislation" (The Marchioness of Ormonde v Brown 17 TC 343-5).