http://www.legislation.gov.uk/ukpga/2007/3/section/24AIncome Tax Act 2007An Act to restate, with minor changes, certain enactments relating to income tax; and for connected purposes.texttext/xmlenStatute Law Database2026-08-13Expert Participation2026-07-15 Income Tax Act 2007s. 788(7)Legal Services Act 2007Sch. 21 para. 161(b)s. 29 192 193s. 211(2)art. 2(h) Part 2Chapter 324A1If the taxpayer is an individual, there is a limit on certain deductions which may be made for the tax year at Step 2.2The limit is determined as follows.3Amount A must not exceed amount B.4Amount A is—athe deductions for the tax year at Step 2 for the reliefs listed in subsection (6) taken together, lessbso much of those deductions as fall within subsection (7).5Amount B is—a£50,000, orbif more, 25% of the taxpayer's adjusted total income for the tax year (see subsection (8)).6The reliefs are—arelief under section 64 (trade loss relief against general income);brelief under section 72 (early trade losses relief);crelief under section 96 (post-cessation trade relief);drelief under section 120 (property loss relief against general income);erelief under section 125 (post-cessation property relief);frelief under section 128 (employment loss relief against general income);grelief under Chapter 6 of Part 4 (share loss relief);hrelief under Chapter 1 of Part 8 (interest payments);irelief under section 555 of ITEPA 2003 (deduction for liabilities relating to former employment);jrelief under section 446 of ITTOIA 2005 (strips of government securities: relief for losses);krelief under section 454(4) of ITTOIA 2005 (listed securities held since 26 March 2003: relief for losses: persons other than trustees).7The deductions falling within this subsection are—adeductions for amounts of relief so far as attributable to allowances under Part 3A of CAA 2001 (business premises renovation allowances);bdeductions for amounts of relief under a provision mentioned in subsection (6)(a) to (e) so far as made from profits of the trade or business to which the relief in question relates;c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ddeductions for amounts of relief under the provision mentioned in subsection (6)(g)—iwhere the shares in question fall within section 131(2)(a) (qualifying shares to which EIS relief is attributable), oriiwhere SEIS relief is attributable to the shares in question as determined in accordance with Part 5A (seed enterprise investment scheme), oriiiwhere SI relief is attributable to the shares in question as determined in accordance with Part 5B (income tax relief for social investments).8The taxpayer's “adjusted total income” for the tax year is calculated as follows. Step 1 Take the amount of the taxpayer's total income for the tax year. Step 2 Add back the amounts of any deductions allowed under Part 12 of ITEPA 2003 (payroll giving) in calculating the taxpayer's income which is charged to tax for the tax year. Step 3 If the taxpayer is given relief in accordance with section 192 of FA 2004 (pension schemes: relief at source) in respect of any contribution paid in the tax year under a pension scheme, deduct the gross amount of the contribution. The “gross” amount of a contribution is the amount of the contribution before deduction of tax under section 192(1) of FA 2004. Step 4 If the taxpayer is entitled to a deduction for relief under section 193(4) or 194(1) of FA 2004 (pension schemes: excess relief under net payment arrangements or relief on making a claim) for the tax year, deduct the amount of the excess or contribution (as the case may be). The result is the taxpayer's adjusted total income for the tax year.S. 24A(7)(d)(iii) and word inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 5S. 24A(7)(c) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 39, 61(1)S. 24A inserted (with effect in accordance with Sch. 3 para. 3 of the amending Act) by Finance Act 2013 (c. 29), Sch. 3 para. 1 (with Sch. 3 paras. 4, 5)