CAT / FIA FTX Syllabus C. Income Tax Liabilities - Elements of a personal income tax computation - Notes ^{5 / 5}

Earned income

Earned income includes:

• employment income,

• income from trades and professions,

• pension income and

• profits from furnished holiday lettings.

Non-savings income

Non-savings income includes:

• earned income and other property business income

• (ie that arising other than from profits from furnished holiday lettings).

Savings income

Savings income is interest from:

• banks,

• building societies,

• most National Savings & Investments (NS&I) products, and

• company loan stock.

At the exam!

All savings income in FTX is paid without deduction of basic rate tax (paid gross).

Dividend income

Dividend income consists of dividends received as a result of ownership of shares. 

Dividends are paid without deduction of tax (paid gross).

Total income

Total income is all income before deductible payments.

Net income

Net income is total income less eligible interest and trading losses.

Taxable income

Taxable income is net income less the personal allowance.