Taxation of miscellaneous income - Makesworth Accountants

Taxation of miscellaneous income

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Taxation of miscellaneous income

There are special rules, known as the miscellaneous income sweep-up provisions, that seek to charge tax on certain income. This unusual provision, which is broad in scope, catches certain income that would not otherwise be charged under specific provisions to Income Tax or Corporation Tax.

Amongst the types of income covered are:

  • payment for a service where it was agreed that the service would be provided for reward;
  • income received under an agreement or arrangement and which is not otherwise taxable;
  • payment for the use of money that is not interest or does not fall within the loan relationships legislation.

HMRC is keen to stress that although the provisions are sweep-up provisions, this does not make all miscellaneous income taxable.

Specifically, the provisions do not tax:

    • capital accretions on isolated transactions in assets;
    • voluntary receipts such as gifts and gratuities;
    • gambling winnings from wagers and bets;
    • certain post-cessation receipts.

For more information on Taxation of miscellaneous income, Book a Free Consultation

See also  Dormant bank accounts

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