F1PART 6AIncome charged under this Act: trading and property allowances

CHAPTER 1Trading allowance

Full relief

783AEFull relief: introduction

(1)

An individual qualifies for full relief for a tax year if—

(a)

the individual has relevant income for the tax year,

(b)

the relevant income does not exceed the individual's trading allowance for the tax year, and

(c)

no election by the individual under section 783AL has effect for the tax year (election for full relief not to be given).

(2)

An individual also qualifies for full relief for a tax year if—

(a)

the individual has relevant income for the tax year which consists of or includes receipts of one or more relevant trades,

(b)

the relevant income exceeds the individual's trading allowance for the tax year,

(c)

the conditions mentioned in subsection (3) are met,

(d)

no election by the individual under section 783AL has effect for the tax year, and

(e)

no election by the individual under section 783AM has effect for the tax year (election for partial relief).

(3)

The conditions are that—

F2(a)

the cash basis applies for the tax year in relation to one or more of the trades mentioned in subsection (2)(a);

(b)

the individual's relevant income would not exceed the individual's trading allowance for the tax year if it were to be assumed that an election by the individual under section F325C(1) had effect for the tax year, F4in relation to one or more of the trades mentioned in paragraph (a)

F5(c)

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F6(d)

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