Income Tax (Trading and Other Income) Act 2005 section 868

Social security contributions: non-trades etc.

Section 868 prevents a deduction for most social security contributions when calculating profits or income that is not from a trade, property business, or employment.

• When calculating miscellaneous income subject to income tax, no deduction is allowed for social security contributions paid by any person.
• This prohibition does not apply to employer contributions — specifically secondary Class 1, Class 1A, and Class 1B contributions.
• The section does not cover trade profits, property business profits, or employment income, as these are dealt with by equivalent rules elsewhere in the legislation.
• Corresponding provisions exist in section 53 (trades), sections 272 and 272ZA (property businesses), and section 360A of ITEPA 2003 (employment income).