Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 327: Deductions from earnings: general
1393.This section sets the scene. It gives information about the contents of this Part, and places this Part within a wider context.
1394.The section is new, although it draws on material contained in section 131(1) of ICTA.
1395.Subsection (1) provides the essential link between this Part of this Act and section 11(1), which is in Part 2. The subsection states that this Part provides for deductions that are allowed from the taxable earnings from an employment in a tax year for the purpose of calculating the “net taxable earnings” from the employment in the tax year for the purposes of Part 2 of this Act.
1396.Subsection (2) sets out how two key expressions are used in this Part. References to the earnings from which deductions are allowed are references to the taxable earnings mentioned in subsection (1), and references to the tax year are references to the tax year mentioned there.
1397.Subsection (3) states that the deductions for which this Part provides are those allowed under Chapters 2 to 6; and the contents of those Chapters are indicated.
1398.Subsection (4) lists other provisions, not in this Part, which make further provision about deductions; and subsection (5) lists other provisions, not in this Part, which make further provision about deductions from income including employment income.