The procedure for calculating a person’s income-tax liability is prescribed as a series of steps (ITA 2007, s. 23). However, this procedure does not deal with the income-tax liabilities set out at ¶148-550. Where the taxpayer is non-UK-resident, the rules at ¶148-650ff. must be taken into account.
Identify the individual amounts of each type of income on which the taxpayer is charged for the year. These amounts are termed the ‘components’ of ‘total income’.