Section 1012 | Relationship between rules on highest part of total income

(1)This section makes provision about the relationship between rules requiring particular income to be treated as the highest part of a person's total income.

(2)It has effect for the purposes of the Income Tax Acts except sections 535 to 537 of ITTOIA 2005 (gains from contracts for life insurance etc: top slicing relief).

(3)If more than one of the provisions listed in subsection (4) applies in relation to a person, a provision mentioned earlier in the list has priority over a provision mentioned later in the list.

(4)The provisions are—^F1

section 465A of ITTOIA 2005 (gains from contracts for life insurance etc to be treated as highest part of total income),

section 685A(5A) of ITTOIA 2005 (payments from trustees of settlor-interested settlements to be treated as highest part of total income),

section 404A of ITEPA 2003 (payments and other benefits on termination of employment to be treated as highest part of total income), and

section 16 (savings and dividend income to be treated as highest part of total income).

(5)The provisions listed in subsection (4) have priority over—

section 619A(2) of ITTOIA 2005 (income treated as highest part of settlor's total income),

section 768(6) and (7) (income treated as arising under Chapter 3 of Part 13 to be treated as highest part of total income),

section 786(6) and (7) (income treated as arising under Chapter 4 of Part 13 to be treated as highest part of total income), and

any other provisions of the Income Tax Acts requiring income of any description to be treated as the highest part of a person's total income.

(6)The effect of one provision having priority over another is that the second provision has effect subject to the first.