Commentary on Sections Overview Overview Section 427: Meaning of “charged amount”
1213.This section provides the basic calculation rules to establish the individual’s charged amount for the purposes of the tests in sections 422 and 426. It is based on section 25(2) of FA 1990 and section 98(3) of FA 2002.
1214.The detailed rules for establishing the individual’s modified net income are contained in section 1025 in Part 17, which defines this term (as used in subsection (2) of this section) for this and certain other purposes. See the commentary on that section.
1215.The basic rule is to add together the “modified net income” established under section 1025 and the amount on which the individual is chargeable to capital gains tax. This amount is then compared with the “overseas gifts total” in section 422(4), or the “increased total of the gifts” in section 426(4), as appropriate.