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HMRC internal manual

Savings and Investment Manual

Accrued Income Scheme: excluded persons: overview

Excluded persons

Certain transfers are disregarded where they are made by an excluded transferor or to an excluded transferee. These are set out in ITA07/S638 to S647.

Where a person is an excluded transferor or transferee, ITA07/S628 is in effect disapplied so that no account is taken of payments to or from the excluded person (ITA07/S638 (2)).

In the case of transfers where the settlement day is outside the interest period (ITA07/S630) ITA07/S638 (3) states that no account is taken of any transfer by an excluded transferor. ITA07/S638 (3) does not therefore automatically exempt both parties.

SAIM4210 explains the exception for small holdings. The small holdings exemption applies to individuals, personal representatives and trustees of a disabled person’s trust. It is likely to be the most commonly applicable exception.

SAIM4220 explains the exclusions for other persons. These are:

  • traders
  • non-residents
  • individuals to whom the remittance basis applies
  • charities
  • pensions scheme trustees
  • makers of ‘manufactured payments’.