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HMRC internal manual

Tax Credits Technical Manual

Payments disregarded in the calculation of investment income


The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 10(2) When calculating investment income, disregard the following in full:

  • any income arising from savings certificates, and interest on tax reserve certificates, exempted from tax by section 692, 693 or 750 of ITTOIA (savings certificates and tax reserve certificates)
  • the first £70 in any tax year of interest on deposits with National Savings and Investments, exempted from income tax by section 691 of ITTOIA ( National Savings Bank ordinary account interest) and
  • any payment to a claimant which does not form part of his income for the purposes of income tax by virtue of section 727 of ITTOIA ( certain annual payments by individuals)

Further details on disregarded income can be found at TCTM04601