Income Tax Act 2007 section 681AC

Relevant income tax relief and relevant deduction from earnings

Section 681AC defines two key terms used throughout this Chapter: "relevant income tax relief" and "relevant deduction from earnings", identifying which types of tax deductions fall within the scope of the anti-avoidance rules.

• Relevant income tax relief covers deductions when calculating profits or losses of a trade, profession, vocation, or UK property business for income tax purposes.
• It also covers deductions in calculating losses from miscellaneous transactions or profits and income chargeable under specified statutory provisions.
• A relevant deduction from earnings includes deductions for employee expenses under section 336 of the Income Tax (Earnings and Pensions) Act 2003.
• It also includes any deduction from earnings used in calculating employment losses for income tax purposes.