Revenue Note for Guidance

PART 2

The Charge to Tax

Overview

Part 2 provides for the imposition of the basic charge to income tax (Chapter 1), corporation tax (Chapter 2) and capital gains tax (Chapter 3). Chapter 1 sets out the charge to income tax and the extension of that charge to profits derived from activities/employments undertaken on the Continental Shelf. It also sets out the standard and higher rates of income tax and the income bands to which those rates apply. In addition, the various Schedules and Cases which set out the sources of income on which the tax is charged are described. Chapter 2 imposes the charge to corporation tax at both the standard rate and the reduced rate. The charge to corporation tax is also extended to income of companies derived from the Continental Shelf. Chapter 3, in addition to providing for the basic charge to capital gains tax, sets out the persons chargeable and the extent of that charge.

CHAPTER 1

Income tax