{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-23",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-23.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/23",
  "kind": "section",
  "number": "23",
  "heading": "The calculation of income tax liability",
  "text": "To find the liability of a person (“the taxpayer”) to income tax for a tax year, take the following steps. Step 1\nIdentify the amounts of income on which the taxpayer is charged to income tax for the tax year.\nThe sum of those amounts is “total income”.\nEach of those amounts is a “component” of total income.\nStep 2\nDeduct from the components the amount of any relief under a provision listed in relation to the taxpayer in section 24 to which the taxpayer is entitled for the tax year.\nSee sections 24A and 25 for further provision about the deduction of those reliefs.\nSee also section 24B which provides that a taxpayer’s net income is taken to be £0 in certain cases.\nThe sum of the amounts of the components left after this step is “net income”.\nStep 3\nDeduct from the amounts of the components left after Step 2 any allowances to which the taxpayer is entitled for the tax year under Chapter 2 of Part 3 of this Act or ... (individuals: personal allowance and blind person's allowance).\nSee section 25 for further provision about the deduction of those allowances.\nStep 4\nCalculate tax at each applicable rate on the amounts of the components left after Step 3.\nSee Chapter 2 of this Part for the rates at which income tax is charged and the income charged at particular rates.\nIf the taxpayer is a trustee, see also Chapters 3 to 5 and 10 of Part 9 (special rules about settlements and trustees) for further provision about the income charged at particular rates.\nSee also section 863I of ITTOIA 2005 which provides for certain partnership profits to be charged at the additional rate.\nStep 5\nAdd together the amounts of tax calculated at Step 4.\nStep 6\nDeduct from the amount of tax calculated at Step 5 any tax reductions to which the taxpayer is entitled for the tax year under a provision listed in relation to the taxpayer in section 26.\nSee sections 27 to 29 for further provision about the deduction of those tax reductions.\nStep 7\nAdd to the amount of tax left after Step 6 any amounts of tax for which the taxpayer is liable for the tax year under any provision listed in relation to the taxpayer in section 30.\nThe result is the taxpayer's liability to income tax for the tax year.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 23 substituted (with effect in accordance with Sch. 3 para. 3 of the amending Act) by Finance Act 2013 (c. 29), Sch. 3 para. 2(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 23 inserted (6.4.2024 in relation to the tax year 2024-25 and subsequent tax years) by Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 10(2), 14(3)(a)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 23 omitted (with effect in accordance with Sch. 1 para. 7 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 1 para. 6(o)(i)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Word in s. 23 substituted (6.4.2024 in relation to the tax year 2024-25 and subsequent tax years) by Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 13(3)(f), 14(4)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 23 inserted (with effect in accordance with Sch. 17 para. 21 of the amending Act) by Finance Act 2014 (c. 26), Sch. 17 para. 19"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 23 applied (N.I.) (6.4.2009) by The Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2009 (S.R. 2009/128), regs. 1(1), 24(3)"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "S. 23 modified (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 1(5)"
    },
    {
      "type": "C",
      "label": "C3",
      "text": "S. 23 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 1(10)"
    },
    {
      "type": "C",
      "label": "C4",
      "text": "S. 23 applied (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 10(1) (with Sch. 16 para. 10(3))"
    },
    {
      "type": "C",
      "label": "C5",
      "text": "S. 23 applied (10.6.2021) by Finance Act 2021 (c. 26), Sch. 2 para. 2(5) (with Sch. 2 para. 3(2)(3))"
    },
    {
      "type": "C",
      "label": "C6",
      "text": "S. 23 applied (10.6.2021) by Finance Act 2021 (c. 26), Sch. 2 para. 1(5) (with Sch. 2 para. 3(2)(3))"
    },
    {
      "type": "C",
      "label": "C7",
      "text": "S. 23 applied (with application in accordance with Sch. 1 para. 64 of the amending Act) by Finance Act 2022 (c. 3), Sch. 1 para. 75(2)"
    },
    {
      "type": "C",
      "label": "C8",
      "text": "S. 23 applied (with modifications) (20.3.2025) by Finance Act 2025 (c. 8), Sch. 10 para. 9(3)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/23",
    "retrieved_at": "2026-10-29T09:13:03.599581+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}