TCTM04510 - Payments disregarded in the calculation of investment income

Disregards

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 10(2)

When calculating investment income, disregard the following in full:

• any income arising from savings certificates, and interest on tax reserve certificates, exempted from tax by section 692, 693 or 750 of ITTOIA (savings certificates and tax reserve certificates)
• the first £70 in any tax year of interest on deposits with National Savings and Investments, exempted from income tax by section 691 of ITTOIA ( National Savings Bank ordinary account interest) and
• any payment to a claimant which does not form part of his income for the purposes of income tax by virtue of section 727 of ITTOIA ( certain annual payments by individuals)
• any interest on a payment made under, or in connection with, the Windrush Compensation Scheme administered by the Home Office, for the period beginning on the date on which the payment is made and ending 52 weeks after that date. See also TCTM04918.

Further details on disregarded investment income can be found at TCTM04601