Income Tax (Trading and Other Income) Act 2005 section 783AA

"Relevant trade" of an individual

Section 783AA defines what counts as a "relevant trade" for the purposes of the trading allowance, excluding partnership trades and rent-a-room trades from eligibility.

• A "relevant trade" is one carried on by an individual acting alone (not in partnership) that is not a rent-a-room trade for the tax year in question.
• A "rent-a-room trade" is one where the individual qualifies for rent-a-room relief and has rent-a-room receipts that would otherwise be included in calculating the trade's profits.
• Partnership trades are excluded to avoid adding unnecessary complexity to the trading allowance rules.
• The term "trade" in this chapter includes professions and vocations.