PSI2.1.4 – Taxation Background: General - Classification of Income

(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)

Part 15 ICTA 88 classifies income into 6 Schedules for income tax purposes according to its type. In brief the Schedules are:

Schedule A -relates to income from the ownership of property or land in the form of rents etc.

Schedule B -imposes a charge to tax on the commercial occupation of woodlands

Schedule C -concerns payments out of public revenue. Interest on most Government securities is taxed under this Schedule.

Schedule D -is dealt with in more detail in the next paragraph.

Schedule E -relates to income from employments (see PSI2.1.8-11).

Schedule F -concerns the tax treatment of distributions paid by companies resident in the United Kingdom.

Of these, only Schedules D and E have any direct relevance to the work of the PSO.