INCOME TAX
An individual may be subject to income tax and CGT. Income is taxed through income tax, capital
growth is taxed through CGT.
There is no statutory definition of income tax. Instead, income tax is recognised through its
characteristics
NOTE: a transaction that is income in nature to one person may be capital to another. For example,
for most people selling an antique is the sale of a capital asset, but for an antique dealer selling
antiques from their shop it would be income in nature.
The main principles of income tax are contained in the Income Tax Act 2007.
The actual rates for tax for each year are set out in the Budget, and taxes charged on any
income arising in a tax year.
The tax year runs from 6th April - 5th April in the following year.
Calculating Income Tax
An individual may be subject to income tax and CGT. Income is taxed through income tax, capital
growth is taxed through CGT.
There is no statutory definition of income tax. Instead, income tax is recognised through its
characteristics
NOTE: a transaction that is income in nature to one person may be capital to another. For example,
for most people selling an antique is the sale of a capital asset, but for an antique dealer selling
antiques from their shop it would be income in nature.
The main principles of income tax are contained in the Income Tax Act 2007.
The actual rates for tax for each year are set out in the Budget, and taxes charged on any
income arising in a tax year.
The tax year runs from 6th April - 5th April in the following year.
Calculating Income Tax
