PTP TR - What is excluded income
Article ID
kba-03777
Article Name
PTP TR - What is excluded income
Created Date
17th March 2021
Product
Problem
What is excluded income?
Resolution
Excluded income, also known as disregarded income, may appear on the tax calculation summary for a non resident client i.e. with a cross in box 1 on the Residence pages, and relates to ITA07/S811.
For non resident clients two tax calculations are run side by side behind the scenes and the one which results in the best outcome for the client is selected. The first calculation includes all income and also gives the Personal Allowance. The second calculation has no Personal Allowance but certain types of income are excluded e.g dividends, interest, state pension.
Please note: From 2021 onwards the S811 comparison will be shown in the Tax Calculation Summary screen for all non resident clients. This will occur even if there is no income of a type with the potential to be excluded.
More information may be found here https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim1170.
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