In the past, an important distinction was made between earned and unearned (or investment) income; unearned being generally the more heavily taxed. Currently, the distinction is of much less significance, being largely of importance only for calculating ‘relevant earnings’ for pension relief purposes.

Earned income currently includes:

employment and pensions income chargeable to tax under the Income Tax (Earnings and Pensions) Act 2003 (see ¶405-000ff.);

property income which is attached to or forms part of the general earnings of an employment (e.g. the glebe rents received by certain Church of England ministers); and

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