Taxes Consolidation Act 1997 section 3

Interpretation of Income Tax Acts

Section 3 sets out the definitions of key terms used throughout the Income Tax Acts, including chargeable tax, earned income, total income, and trade.

• Chargeable tax is the income tax calculated on total income before credits are applied; income tax payable is the amount remaining after personal and general tax credits are deducted.
• Earned income covers employment income, pensions, self-employed trade or profession income, and approved retirement annuities; unearned income includes dividends, interest, and rental income.
• Trade is broadly defined to include not only regular businesses but also any adventure or concern in the nature of trade, and profits or gains in the Income Tax Acts do not include chargeable gains under the Capital Gains Tax Acts.
• An incapacitated person means a minor or a person who lacks capacity within the meaning of the Assisted Decision-Making (Capacity) Act 2015.