Home » Eng Finance » T » Taxation schedules (UK)

Taxation schedules (UK)

Headings used to facilitate the administration of the tax system and the proper collection of taxes. The schedules are:

This was, prior to the Finance Act 1963, a straight property tax levied on persons owning land and buildings thereon and was based on what was known as the annual value of the property. The 1963 abolished schedule (A) but it was reintroduced by the Income and Corporation Act 1970 in a different form. It now applies to income earned solely through ownership of land, e.g. rents, rent charges, etc., and premiums on leases. This is linked to schedule (A); it does not apply to property generally but to woodlands managed commercially where the income is not assessed under any other schedule. This covers interest and dividends paid by the government and public authorities, usually taxed at source. This contains six parts known as cases which are concerned with income from (1) trades and businesses; (2) professions and Vocations; (3) interest on securities where tax is not deducted at source, annuities, etc.; (4) income from securities – not shares held overseas; (5) other income, including dividends on shares, from overseas; (6) profits or income not captured by any other case or schedule. Effectively, income received in the form of wages and salaries arising out of a contract of employment. This tax is usually collected through P.A.Y.E. Dividends and other payments made by companies by way of distribution of profits amongst members. Reference: The Penguin Business Dictionary, 3rd edt.