Income Tax (Trading and Other Income) Act 2005 (c. 5)

[F1 PART 6A U.K. Income charged under this Act: trading and property allowances

Textual Amendments

F1 Pt. 6A inserted (16.11.2017) (with effect in accordance with Sch. 3 para. 13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 3 para. 1

CHAPTER 2 U.K. Property allowance

Exclusions from relief U.K.

783BL Exclusion from relief: tax reduction under section 274A U.K.

No relief under this Chapter is given to an individual for a tax year if, in calculating the individual's liability to income tax for the tax year, a tax reduction under section 274A (property business: relief for non-deductible costs of a dwelling-related loan) is applied at Step 6 of the calculation in section 23 of ITA 2007.

783BM Exclusion from relief: expenses deducted against rent-a-room receipts U.K.

(1) No relief under this Chapter is given to an individual for a tax year if—

(a) the individual qualifies for rent-a-room relief for the tax year,

(b) the individual has rent-a-room receipts for the tax year which would, apart from Chapter 1 of Part 7 (rent-a-room relief), be brought into account in calculating the profits of a property business, and

(c) condition A or B is met.

(2) Condition A is that—

(a) the individual's total rent-a-room amount for the tax year does not exceed the individual's limit for the tax year (see section 783BQ), and

(b) an election by the individual under section 799 has effect to disapply full rent-a-room relief for the tax year.

(3) Condition B is that—

(a) the individual's total rent-a-room amount for the tax year exceeds the individual's limit for the tax year, and

(b) no election by the individual under section 800 has effect to apply the alternative method of calculating profits for the tax year.

783BN Exclusion from relief: payments by employer U.K.

No relief under this Chapter is given to an individual for a tax year if—

(a) the individual has relevant property income for the tax year, and

(b) the income includes a payment made by, or on behalf of, a person at a time when the individual is—

(i) an employee of the person, or

(ii) the spouse or civil partner of an employee of the person.

783BO Exclusion from relief: payments by firm U.K.

No relief under this Chapter is given to an individual for a tax year if—

(a) the individual has relevant property income for the tax year, and

(b) the income includes a payment made by, or on behalf of, a firm at a time when the individual is—

(i) a partner in the firm, or

(ii) connected with a partner in the firm.

783BP Exclusion from relief: payments by close company U.K.

(1) No relief under this Chapter is given to an individual for a tax year if—

(a) the individual has relevant property income for the tax year, and

(b) the income includes a payment made by, or on behalf of, a close company at a time when the individual is—

(i) a participator in the close company, or

(ii) an associate of a participator in the close company.

(2) In this section “associate” and “participator” have the same meanings as in Part 10 of CTA 2010 (see sections 448 and 454).]