The charging provisions relating to miscellaneous income are wide, and it is possible for income to fall within both the miscellaneous income provisions, and another charging provision, or exception, of the Taxes Acts.
To address this situation, there are rules to determine which provisions apply in such cases. As a general principle, income is only charged as miscellaneous income where it does not fall within any other charging provision.
Specific rules of priority are as set out below.
Trading income
Trading income is taxed1 under the particular rules for trades (ITTOIA 2005, Pt II2) in priority to the miscellaneous income provisions (ITTOIA 2005, Pt V3).
For a list of the relevant miscellaneous income provisions of Pt V, see E1.501. For the definition of trade, see B1.401.
A practical application of this rule is that, for example, receipts from foster care or income from a B & B run from a private residence do not fall to be taxed as miscellaneous income.
Instead, they are eligible for
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