Commentary on Sections Part 10: Miscellaneous income Overview Section 979: Charge to tax on income not otherwise charged
2498.This section applies the charge to corporation tax on income to income not so charged elsewhere. It is based on sections 9(1), (2), (2B), (2C), (3) and (4) and 18(1) and (3) of ICTA. The corresponding rule for income tax is in section 687 of ITTOIA.
2499.Schedule D Case V charges tax in respect of income from possessions out of the United Kingdom. Schedule D Case VI charges tax in respect of annual profits or gains. The scope of both Cases is derived from section 18(1) of ICTA, which refers to “annual profits or gains”. Case law does not indicate a difference, in the context of section 18 of ICTA, in the meaning of “annual profits or gains” and “income”. The choice of term appears to be dictated (although not consistently) by the degree to which a calculation of profit or loss is relevant to the calculation of the income charged. The section uses income rather than (annual) profits or gains.
2500.Subsection (2) protects the effect of any exemption, whether provided by this Chapter or by Part 19 (general exemptions) of this Act or by other legislation.
2501.That subsection disapplies the charge to “deemed income”. This term refers to amounts that are treated as income by a provision of the Corporation Tax Acts, so that the charge to corporation tax on income applies to that amount. The disapplication applies in the event that such deemed income would not fall within any other application of the charge to corporation tax on income.