Commentary on Sections Overview Overview Section 1012: Relationship between rules on highest part of total income
3088.This section brings together a number of provisions about the relationship between the rules about which particular income is to be treated as the highest part of a person’s total income. It is based on sections 1A(6) and 833(3) of ICTA.
3089.These rules affect section 16 and a number of provisions inserted by this Act including section 404A of ITEPA and section 465A of ITTOIA.
3090.The section remedies an omission in section 833(3) of ICTA by providing a rule as to which of section 404A of ITEPA and section 465A of ITTOIA takes the very highest slice in a case where both are present. In practice, if both arise it will be to the taxpayer’s advantage if the chargeable event gains are treated as the very top slice. Accordingly, section 404A of ITEPA defers to section 465A of ITTOIA. See Change 153 in Annex 1.
3091.Subsection (5) makes it clear that the rules in this section override any other provision that purports to treat a given type of income as the top slice. The effect is that the income concerned will simply form the top slice of income within its category of savings, dividend or other income.